Chapter 13: Advertising, Promotion, and Sales Flashcards
1
Q
Marketing communications process
A
Slide 2
2
Q
Planning promotional campaigns consist of seven stages:
A
- Determine the target audience
- Determine specific campaign objectives
- Determine the budget
- Determine media strategy
- Determine the message
- Determine the campaign approach
- Determine campaign effectiveness
3
Q
The target audience
A
- Global marketers face multiple audiences beyond customers
- E.g., suppliers, intermediaries, government, the local community, banks, shareholders, and employees
- Expectations have to be researched to ensure the appropriateness of campaign decision making
- Need to determine multimarket target audience similarities
If such exists, pan-regional or global campaigns can be attempted
4
Q
How might the standardization of the product and its positioning change in some cases?
A
In some cases, the product may be standard across markets but the positioning may be different
Subsequently marketing communications have to change
5
Q
Campaign objectives
A
- Essential to have well-established, clearly defined, measurable objectives
- Can be divided into overall global and regional objectives as well as local objectives
- Local objectives are subject to headquarters approval, mainly to ensure consistency
6
Q
Typical objectives
A
- To increase awareness
- To enhance image
- To improve market share
7
Q
The budget
A
- The promotional budget links established objectives with media, message, and control decisions
- Ideally, budget would be set as a response to the objectives to be met
But resource constraints often preclude this approach - Budgets can be used as a control mechanism if headquarters retain final budget approval
8
Q
Common budgeting methods:
A
- Objective and task
- Percentage of sales
- Executive judgment
- All-you-can-afford
- Matched competitors
9
Q
The major factors determining the choice of the media vehicles to be used:
A
- Availability of media in a given market
- Product or service influences
- Media habits of the intended audience
10
Q
Availability of media:
A
- Media type: newspapers, magazines, television, radio, cinema, outdoor, and Internet
- Conflicting national media regulations (e.g., comparative claims and using superlatives such as “best” not allowed in Germany and other countries)
- Need to make sure that advertising works not only within markets but across countries as well due to consumers’ access to broadcasting through cable or satellite
11
Q
Product influences
A
- Marketers are frustrated by differing restrictions on how products can be advertised
- E.g., some countries have banned tobacco advertising altogether (e.g., France)
- Alternative solutions: corporate image advertising, or advertising of corporate’s other businesses
12
Q
Audience characteristics
A
- A major objective of media strategy is to reach intended target audience with a minimum of waste
- E.g., BP’s corporate image campaign in China: target audience all read trade publications Petroleum Production and Offshore Petroleum
13
Q
Developing the promotional message is referred to as…
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Creative strategy
14
Q
What must the marketer determine from consumers for the promotional message?
A
Marketers must determine what the consumer is buying – consumer motivations
15
Q
Consumer’s motivations vary depending on:
A
- The diffusion of the product, service, or concept into the market
- The criteria on which the consumer will evaluate the product
- The product’s positioning
16
Q
The campaign approach: Two decisions to be made
A
- What type of outside serves to use
- How to establish decision-making authority for promotional efforts
17
Q
What type of outside services to use?
A
- Choice of agency depends on the quality of coverage the agency gives the multinational company
- The main concern arising from the use of mega-agencies is conflict (i.e., with only a few giant agencies to choose from, the global marketer may end up with the same agency as its main competitor)
18
Q
How to establish decision-making authority for promotional efforts
A
Range from complete centralization to decentralization
19
Q
Measurement of advertising effectiveness
A
Should range from pretesting of copy appeal to post-testing of recognition
20
Q
The measures most used to measure advertising effectiveness are:
A
- Awareness
- Recall
- Executive judgment
- Intention to buy
- Sales
- Profitability
- Coupon return
21
Q
Personal selling
A
Defined as a two-way flow of communication between a potential buyer and a salesperson.
Involve direct relations between the seller and the prospective buyer or customer.
22
Q
Personal selling is designed to accomplish three tasks:
A
- Identify the buyer’s needs
- Match these needs to one or more of the firm’s products
- Based on this match, convince the buyer to purchase the product
23
Q
Sales promotion
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Used for promotion that does not fall under advertising, personal selling, or publicity
24
Q
Consumer promotions
A
couponing, sampling, premiums, consumer education and demonstration activities, cents-off packs, point-of-purchase materials
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Sales promotions directed at intermediaries include certain activities.
Intermediary promotions:
trade shows, trade discounts, and cooperative advertising
26
What must a campaign gain in order to be effective?
To be effective, the campaign must gain support of local retailer population
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Sales promotion tools fall under varying regulations:
- E.g., every promotion has to be approved by a government body in Northern European countries
- E.g., in France, a gift cannot be worth more than 4% of the retail value of the product being promoted
- Regulations such as these make truly global sales promotions rare and difficult
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Trade shows
An event where manufacturers, distributors, and other vendors
- Display their products
- Describe their services to current and prospective customers, suppliers, other business associates, and the press
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Marketing communications
Marketing communications function charged with executing programs to earn public understanding and acceptance
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Internal public relations
Internal communication is important to create an appropriate corporate culture
- E.g., the Japanese firms promote a wa (“we”) spirit
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External public relations
Focused on the interaction with customers.
- Publicity is the securing of editorial space (as opposed to paid advertising) to further marketing objectives
- Sponsorship involves the marketer’s investment in events and causes
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Effective communication requires three elements:
- The sender
- The message
- The receiver
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Encoding the message
Means converting it into a symbolic form that is properly understood by the receiver
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The message channel
The path through which the message moves from sender (source) to receiver.
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Face-to-face contact is still necessary for two basic reasons:
- The need for detailed discussion and explanation
- The need to establish the rapport that forms the basis of lasting business relationships.
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Decoding
Transforming the message symbols back into thought.
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The communication process has worked when...
If there is an adequate amount of overlap between sender characteristics and needs reflected in the encoded message and receiver characteristics and needs reflected in the decoded message
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Noise
Influence of extraneous and distracting stimuli, which interfere with the intended accurate reception of the message.
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What are examples of noise in the international marketing context?
failure to express a quotation in the inquirer’s system of currency and measurement, or lack of understanding of the recipient’s environment—for example, having only an English-language website.
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What might cultural noise look like?
The lack of language skills may hinder successful negotiations, whereas translation errors may render a promotional campaign or brochure useless. Similarly, nonverbal language and its improper interpretation may cause problems.
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How is the success of the outcome determined?
By how well objectives have been met in generating more awareness, a more positive attitude, or increased purchases
42
Why is the collection and observation of feedback necessary?
To analyze the success of the communications effort.
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What are examples of concrete ways in which feedback can be collected?
Are inquiry cards and toll-free numbers distributed at trade shows to gather additional information. Similarly, the Internet allows marketers to track traffic flows and to install registration procedures that identify individuals and track their purchases over time
44
Who are the publics with whom communication is necessary?
- Suppliers
- Intermediaries
- Governments
- The local community
- Bankers and creditors
- Media organizations
- Shareholders
- Employees
45
Cause-related marketing
A combination of public relations, sales promotion, and corporate philanthropy.
- The company, or one of its brands, is linked with a cause such as environmental protection or children's health.
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Grey advertising
Checks for commonalities in variables such as economic expectations, demographics, income, and education. Consumer needs and wants are assessed for common features.
47
Corporate image advertising
Especially for multidivisional companies, an umbrella campaign may help either to boost the image of lesser-known product lines or make the company itself be understood correctly or perceived more positively. Companies may announce repositioning strategies through image campaigns to both external and internal constituents.
48
What do objectives set at the local level look like?
Are more specific and set measurable targets for individual markets. These objectives may be product- or service-related or related to the entity itself. Typical goals are to increase awareness, enhance image, and improve market share in a particular market. Whatever the objective, it has to be measurable for control purposes.
49
How are local objectives typically developed?
As a combination of headquarters (global or regional) and country organization involvement. Basic guidelines are initiated by headquarters, whereas local organizations set the actual country specific goals. These goals are subject to headquarters approval, mainly to ensure consistency. Although some campaigns, especially global ones, may have more headquarters involvement than usual, local input is still quite important, especially to ensure appropriate implementation of the subsequent programs at the local level.
50
The promotional budget links established objectives with...
- Media
- Messages
- Control decisions.
51
What may available funds dictate?
The basis from which the objective-and-task method can start.
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What should advertising budgets be set on?
A market-by-market basis because of competitive differences across markets.
53
What must headquarters decision makers clearly understand to be able to make rational decisions on budget?
They must have a clear understanding of cost and market differences
54
What forms the basis for the choice between media vehicles and the development of a media schedule?
- Target audience characteristics
- Campaign objectives
- The budget
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What are the major problems affecting global promotional efforts?
Conflicting national regulations
56
What are some regulations that affect global promotional efforts?
- Limits on the amount of time available for advertisements
- Restrictions on items such as comparative claims and gender stereotypes (e.g. Germany prohibits the use of superlatives such as "best")
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What do agencies have to often do to comply with various national regulations?
Produce several separate versions of advertising
58
What are the most heavily regulated products in terms of promotion?
- Tabacco products
- Alcoholic beverages
- Pharmaceuticals
59
Product placement
Placement of products in movies, TV shows, videogames, or Internet sites
60
How does product placement help both parties (brand and film)?
- To create a brand definition for the product
- A dimension of reality for the film
61
If conditions are ideal, and they seldom are in international markets, the media strategist would need data on:
1) media distribution, that is, the number of copies of the print medium or the number of sets for broadcast
2) media audiences
3) advertising exposure.
62
Global media vehicles
Have target audiences on at least three continents and for which the media buying takes place through a centralized office. These media have traditionally been publications that, in addition to the worldwide edition, have provided advertisers the option of using regional editions.
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Why does the Internet provide the international marketer with an extremely versatile global medium?
Online editions of publications, as well as mobile editions and podcasts, can be used in tandem with print publications and broadcast media or can stand separately.
64
When can word-of-mouth and grassroots brand advocacy can have a powerful effect?
Particularly for the launch of new products and services or a new marketing push.
65
World brand
A product that is manufactured, packaged, and positioned the same around the world.
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How does a world brand actually succeed?
The idea may be global, but overseas subsidiaries then tailor the message to suit local market conditions and regulations. Executing an advertising campaign in multiple markets requires a balance between conveying the message and allowing for local nuances.
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The localization of global ideas can be achieved by various tactics such as:
- Adopting a modular approach
- Localizing international symbols
- Using international advertising agencies
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How may marketers localize their international symbols?
- Some of the most effective global advertising campaigns have capitalized on the popularity of pop music worldwide and used well-known artists in the commercials, such as Lady Gaga, Beyoncé, and Shakira. In some versions, local stars have been included with the international stars to localize the campaign.
- Aesthetics plays a role in localizing campaigns.
69
Why is it good to use only one agency or only a few agencies?
- It ensures consistency
- Allows for coordination, especially when the global marketer's operations are decentralized
- Makes the exchange of ideas easier
70
What are environmental influences that call for modifications, or in some cases totally unique approaches?
- Culture
- Econimic development
- Lifestyles
- Language (of the cultural variables)
71
What is evident about customers' preferences for advertising?
Customers prefer localized to foreign-sourced advertising
72
In the organization of promotional efforts, a company has two basic decisions to make:
1) what type of outside services to use
2) how to establish decision-making authority for promotional efforts
73
What does the choice of agency will largely depend on?
The quality of coverage the agency will be able to give the multinational company
74
How do some people believe local, midsized agencies can compete in the face of globalization?
By developing local solutions or joining international networks.
75
What is the main concern arising from the use of mega-agencies?
Conflict.
- With only a few giant agencies to choose from, the global marketer may end up with
the same agency as its main competitor.
76
Despite the globalization trend, local agencies will survive as a result of...
Governmental regulations
77
How does decision-making authority work with complete centralization?
The headquarters level is perceived to have all the right answers and has adequate power to impose its suggestions on all of its operating units.
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How does decision-making authority work with decentralization?
Involves relaxing most of the controls over foreign affiliates and allowing them to pursue their own promotional approaches.
79
If who should make the decision is not the important question then what is?
How advertising quality can be improved at the local level
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Coordinated approach to panregional campaign development (9 steps)
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What does the coordinated approach to panregional campaign development strive for?
Development of a common strategy but flexible execution.
82
What does the coordinated approach to panregional campaign development maintain?
Maintains strong central control but at the same time capitalizes on the greatest asset of the individual markets: market knowledge.
83
Measure of advertising effectiveness should range from...
Pretesting of copy appeal and recognition, to post-testing of recognition, all the way to measuring sales effects.
84
The biggest challenge to advertising research will come from...
Increase of global and regional campaigns.
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Levels of involvement in global sales chart
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Indirect exports
When the exporter uses indirect exports to reach international markets, the export process is externalized; in other words, the intermediary will take care of the international sales effort.
- There is no investment in international sales
- There is no, or little learning about sales in the markets that buy the product
- Any learning that takes place is indirect
87
Direct exports
At some stage, the exporter may find it necessary to establish direct contact with the target market(s), although the ultimate customer contact is still handled by locally based intermediaries, such as agents or distributors.
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For the marketer–intermediary interaction to work in direct exports, four general guidelines have to be satisfied:
1. Know the sales scene (often what works in the exporter's home market will not work somewhere else.
2. Research the customer
3. Work with the culture (realistic objectives have to be set for the salespeople based on their cultural expectations)
4. Learn from your local representative (If the sales force perceives a lack of
fit between the marketer’s product and the market, as well as an inability to
do anything about it, the result will be suboptimal)
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Integrated solutions
The final stage of globalization involves either a sales office in the target market or a direct contact with the buyer from home base. This is part of the exporter’s perceived need for increased customer relationship management, where the sales effort is linked to call-center technologies, customer-service departments, and the company’s website.
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When is the role of personal selling the greatest?
When the marketer sells directly to the end-user or to governmental agencies, such as foreign trade organizations.
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What is one of the keys to personal selling?
The salesperson's ability to adapt to the customer and the selling situation. This aspect of selling requires cultural knowledge and empathy.
- A salesperson, regardless of the market, must have a thorough knowledge of the product or service.
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What is the purpose of direct marketing?
To establish a relationship with a customer in order to initiate immediate and measurable responses.
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How is direct marketing done?
In the past, this was accomplished through direct mail, catalogs, and telemarketing. Today, spurred by mobile and Internet technologies, direct marketing can be found on places like Facebook, Google, Twitter, TripAdvisor, and Yelp.
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What is the dominant direct-response medium in direct marketing?
Direct mail is by far the dominant direct-response medium and includes letters, catalogs, ads, brochures, samples, and DVDs
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The Internet offers five main advantages:
1. Allows the company to increase its presence in the marketplace and to communicate its overall mission and information about its marketing mix.
2. Allows 24-hour access to customers and prospects.
3. Can improve customer service by allowing customers to serve themselves when and where they choose.
4. Ability of the marketers to gather information, which has its uses not only in research but also in database development for subsequent marketing efforts.
5. The opportunity to actually close sales.
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Database marketing
allows the creation of an individual relationship with each customer or prospect
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Two main types of marketing databases:
- Consumer databases
- Business databases
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Social networking service
An online service, platform, or site that focuses on building and reflecting social networks that share interests or activities.
- Facebook, Googleþ, Twitter, and YouTube
99
Sales promotion directed at consumers involves such activities as:
- Couponing
- Sampling
- Premiums
- Consumer education and demonstration activities, cents-off packs
- Point-of-purchase materials
- Direct mail
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What is another name for sales promotion directed at intermediaries?
Trade promotion
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Sales promotion tools fall under varying regulations
A particular level of incentive may be permissible in one market but illegal in another.
102
Such multicountry promotions such as those in sales promotion may be suitable for products such as:
- Soft drinks
- Liquor
- Airlines
- Credit cards
- Jeans
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Trade shows
Typically, a trade show is an event at which manufacturers, distributors, and other vendors display their products or describe their services to current and prospective customers, suppliers, other business associates, and the press.
- One of the most significant cost items in marketing budgets.
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Arguments in favor of participation in trade shows include:
- Some products, by their very nature, are difficult to market without providing the potential customer a chance to examine them or see them in action.
- An appearance at a show produces goodwill and allows for periodic cultivation of contacts.
- The opportunity to find an intermediary may be one of the best reasons.
- Attendance is one of the best ways to contact government officials and decision-makers, especially in China.
- Trade fairs provide an excellent chance for market research and collecting competitive intelligence.
- Exporters are able to reach a sizable number of sales prospects in a brief time period at a reasonable cost per contact.
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Reasons for nonparticipation in trade shows:
- High costs
- Difficulty in choosing the appropriate trade fairs for participation.
- For larger exporters with multiple divisions, the problem of coordination.
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Image
The way a multinational corporation relates to and is perceived by its key constituents
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Public relations
The marketing communications function charged with executing programs to earn public understanding and acceptance, which means both internal and external communication.
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Public relations can be divided into:
- Proactive forms
- Reactive forms
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What is a "wa" spirit in Japan?
Means "we" spirit
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In the proactive context of external public relations, what are marketers concerned about?
- establishing global identities to increase sales
- differentiate products and services
- attract employees
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Why is publicity, in particular, of interest to the multinational corporation?
Publicity is the securing of editorial space (as opposed to paid advertising) to further marketing objectives. Because it is editorial in content, the consuming public perceives it as more trustworthy than advertising.
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Reactive public relations
Anticipating and countering criticism
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Crisis management
specially assigned task forces ready to step in if problems arise.
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Crisis management policies should have the following traits:
1) openness about corporate activities, with a focus on how these activities enhance social and economic performance
2) preparedness to utilize the tremendous power of the multinational corporation in a responsible manner and, in the case of pressure, to counter criticisms swiftly
3) integrity, which often means that the marketer must avoid not only actual wrongdoing but also the mere appearance of it
4) clarity, which will help ameliorate hostility if a common language is used with those pressuring the corporation.
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Consumer-generated media
With growing and evolving interactive technology, consumers can find or initiate topics of interest on the web and engage in online discussions that strongly affect their and others’ views.
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What is CGM?
Consumer-generated media
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What are the most prominent forms of consumer-generated media?
- online bulletin boards
- blogs
- podcasts
- websites
These are for consumers to post complaints and compliments.
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What are two ways the public relations functions can be handled?
Inhouse or with the assistance of an agency
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Sponsorship marketing
Involves the marketer's investment in events or causes.
- Sponsorship funds worldwide are directed for the most part at sports events (both individual and team sports) and cultural events (both in the popular and high-culture categories).
120
Ambush marketing
the use of an event without the permission of the event owner
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How should cause-related marketing be developed, and how should it not be?
This activity should not be developed merely as a response to a crisis, nor should it be a fuzzy, piecemeal effort to generate publicity; instead, marketers should have a social vision and a planned long-term social policy.
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First-party certification
the most common variety, whereby a single firm develops its own rules and reports on compliance.
- This certification includes prohibitions on child labor and forced labor and guarantees of nondiscrimination in the workplace.
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Second-party certification
Involves an industry or trade association fashioning a code of conduct and implementing reporting mechanisms.
124
Third-party certification
Involves an external group, often an NGO, imposing its rules and compliance methods onto a particular firm or industry.
125
Fourth-party certification
Involves government or multilateral agencies.
