Developing effective ad campaigns

Question 1

What are the steps to developing effective ad campaigns?

Answer 1

1_Mission
2_Budget
3_Message and Media
4_Measurement

Question 2

Mission

Answer 2

There are three marketing Strategies:
_Informative marketing: Introducing your product to your customers(Introduction stage)
_Persuasive marketing: Convincing customers to try your product (Growth/Maturity stage)
_Reminding Marketing: Reminding your customers about the existence of your product, where they can find it and about any promotions on the product (Declining Stage)

Question 3

Money(Budget )

Answer 3

Four budget methods
 _Affordable method:
Dependent on the availability of funds. It is simple to use however it does not consider market information and it can lead to under or overspending.

 _Percentage of sales method:
Dependant on the sales performance of the last year. It is also simple to use and it considers the causal relationship between sales and promotions however long-range planning is difficult.

 _Competitive-Parity method:
Each company is different and hence has different promotional needs.

 _Objective-Task method:
A company must determine the promotional objectives and in turn, determine the tasks needed to achieve these objectives. They will then determine the costs needed to achieve these tasks.

Question 4

Push or Pull strategy?

Answer 4

 _Pull: We direct our communication to the consumers who will influence the retailers and wholesalers.

_Push: We direct out communication to the retailers and wholesalers who will influence the consumers.

Question 5

Message and Media:

Answer 5

*Message: We have to focus on capturing AIDA (Attention, Interest, Desire, Action) from customers. We have to determine the benefits of using our product. Our message has to be Believable, Meaningful, and Distinctive. We have to decide on the message format, tone, and the words that will stand out in the message.
*Media: We have to choose the appropriate media tool for our message. There is a lot of Clutter therefore we must make sure that our message comes across the way that we intend. We have to choose the media Frequency, Impact, Timing, Type, and Vehicle.

Each Media Type has its advantages and disadvantages:
 Television: (+) It has a high reach (-) It is costly
 Radio: (+) It has a good local acceptance (-) The message can be half-heard
 Magazine: (+) Long-lived message (-) It is costly
 Outdoors: (+) High repeated exposure (-) Little audience selectivity
 Direct Mail: (+) High audience selectivity (-) Message can be seen as Junk Mail
 Internet: (+) Message is immediate (-) Audience can limit exposure
 Newspaper: (+) Message is believable (-) Short lived

Question 6

Measurement:

Answer 6

Ad effectiveness = (Market Share ÷ Share of Voice)
Less than 100 Overspending or Underspending
Equal to 100  Efficient
Greater than 100  Very Efficient

Question 7

International environment:

Answer 7

Before deciding whether to operate internationally, a company must understand the international marketing environment. This includes understanding the international trade system, the economic environment, the political-legal environment, and the cultural environment.

Question 8

International trade systems:

Answer 8

Trade barriers
Tariffs or duties
Quotas and exchange controls
Nontariff trade barriers
Biases against the bids
Restrictive product standards
Excessive host-country regulations or enforcement

Question 9

Economic Environment

Answer 9

Factors reflecting a country’s market attractiveness:
Industrial structure
Subsistence economies
Raw material exporting economies
Emerging economies
Industrial economies
Income distribution
Low-, medium-, and high-income households depending on the industrial structure of the nation

Question 10

Political-Legal Environment

Answer 10

Considerations for a company to do business in a country:
Country’s attitude toward international buying
Government bureaucracy
Political stability
Monetary regulations
International trade involves
Cash transactions
Bartering

Question 11

Importance of Culture on the marketing strategy:d

Answer 11

Companies that understand cultural nuances can
Avoid expensive and embarrassing mistakes
Take advantage of cross-cultural opportunities

Question 12

Deciding Whether to Go Global

Answer 12

Factors influencing the decision:
Attacks on a company’s home market by global competitors
Expanding customer base in international markets
Better opportunities for growth

___Deciding with market to enter:
A company should
Define its international marketing objectives and policies
Decide what volume of foreign sales it wants
Choose in how many countries it wants to market
Determine the types of countries to enter
Evaluate each market

____
Once a company has decided to sell in a foreign country, it must determine the best mode of entry. Its choices are exporting, joint venturing, and direct investment. Figure 15.2 shows the three market entry strategies along with the options each one offers. As the figure shows, each succeeding strategy involves more commitment and risk but also more control and potential profits.

Question 13

Exporting, Direct Investment, or Joint venturing:

Answer 13

The simplest way to enter a foreign market is through exporting. Indirect exporting involves less investment because the firm does not require an overseas marketing organization or network. Sellers may eventually move into direct exporting, whereby they handle their own exports. Investment and risk are greater in this strategy, but so is the potential return.
Joint venturing involves entering foreign markets by joining with foreign companies to produce or market a product or service. There are four types of joint ventures. Licensing involves entering foreign markets by developing an agreement with a licensee in the foreign market. Contract manufacturing occurs when a company contracts with manufacturers in a foreign market to produce its product or provide its service. With management contracting, a domestic firm supplies know-how to a foreign company that supplies the capital. The final type of joint venture is known as joint ownership. This refers to a cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control.
Direct investment refers to entering a foreign market by developing foreign-based assembly or manufacturing facilities. If a company has gained experience in exporting and if the foreign market is large enough, foreign production facilities offer many advantages. However, the firm faces many risks, such as restricted or devalued currencies, falling markets, or government changes.

Question 14

Export –> Joint Venture —> Direct Investment

Answer 14

The company must decide how to enter each chosen market—whether through exporting, joint venturing, or direct investment. Many companies start as exporters, move to joint ventures, and finally make a direct investment in foreign markets. In exporting, the company enters a foreign market by sending and selling products through international marketing intermediaries (indirect exporting) or the company’s own department, branch, or sales representatives or agents (direct exporting). When establishing a joint venture, a company enters foreign markets by joining with foreign companies to produce or market a product or service. In licensing, the company enters a foreign market by contracting with a licensee in the foreign market and offering the right to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty.

Question 15

Deciding on the global marketing program

Answer 15

_Standardized global marketing
Using the same marketing strategy and mix in all of the company’s international markets

_Adapted global marketing
Adjusting the marketing strategy and mix elements to each international target market
-Creates more costs
-Produces a larger market share and return

Question 16

Promotion/Price

Answer 16

Promotion:
Global companies often have difficulty crossing the language barrier.
Communication adaptation
A global communication strategy of fully adapting advertising messages to local markets.

Price:
Set a uniform price globally
Set according to the customers
Use a standard markup of the company’s costs everywhere

Question 17

How much adaptation for foreign markets ?

Answer 17

Companies must also decide how much their marketing strategies and their products, promotion, price, and channels should be adapted for each foreign market. At one extreme, global companies use standardized global marketing worldwide. Others use adapted global marketing, in which they adjust the marketing strategy and mix to each target market, bearing more costs but hoping for a larger market share and return. However, global standardization is not an all-or-nothing proposition. It’s a matter of degree. Most international marketers suggest that companies should “think globally but act locally”—that they should seek a balance between globally standardized strategies and locally adapted marketing mix tactics.

Question 18

Export department
International division
Global organizations

Answer 18

The company must develop an effective organization for international marketing. Most firms start with an export department and graduate to an international division. Large companies eventually become global organizations, with worldwide marketing planned and managed by the top officers of the company. Global organizations view the entire world as a single, borderless market.