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Role of international promotion

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Role of international promotion

  1. 1. R. Srinivasan 1 Role of International promotion: • Estimated world wide ad expenditures: $ 450 billion- 50 % in US, increased ad. Spend in China, India, Brazil etc. • Why effective promotional programs ? • Most visible of the marketing function- • Other functions – Passive quieter way. Analysing the International Marketing Environment • Economic • Demographic • Cultural • Political/ Legal Cultural Environment • Language • Taste / traditions- cosmetics in France • Values • Religion Other factors The Media Infrastructure 2. Advertising Regulations 3. Standardization vs Adaptation 1. The Media Infrastructure • Media Availability – Media infrastructure differs from country to country • Media Reliability • Media Restrictions • Media Costs • Media Formats – Advertising Posters on Kiosks and Fences – Sides of Private Homes – Plastic Shopping Bags – Outdoor Umbrellas – Billboards – Shift from radio and print to TV advertising – Rise of global and regional media – Growing spread of interactive marketing – Growing popularity of text messaging – Improved monitoring – Improved TV-viewership measurement 2. Advertising Regulations • The major types of advertising regulations include: – Comparative Advertising – The major types of advertising regulations include: – Advertising Targeting Children – Advertising of “Vice Products” and Pharmaceuticals
  2. 2. R. Srinivasan 2 – Content of Advertising Messages – Other Advertising Regulations: Issues of local languages, tax issues, and advertising rates. – Standardization vs Adaptation • The “Standardization” versus “Adaptation Debate” • Merits of Standardization: – Scale Economies – Consistent Image – Global Consumer Segments – Creative Talent – Cross-Fertilization • Assumption: Consumers everywhere share the same wants and needs – Maintaining consistent image – Reducing confusion among world travelers – Implementing single-coordinated campaign across countries – Reducing development, media, and other costs Adapted Advertising • Assumption: Insurmountable cultural, economic, infrastructural, and political differences across countries – Increasing effectiveness by tailoring ads to local conditions – Giving more freedom to subsidiaries • Barriers to Standardization: – Cultural Differences • Language is one of the most formidable barriers in global marketing. – Religion – Communication Infrastructure – International Agencies may not serve a market – Consumer Literacy Levels – Advertising Regulations – Market Maturity – Values and Purchase Motivations – “Not-Invented-Here” (NIH) Syndrome Creative challenges. Media Regulations – comparative advertising – e.g., Germany prohibits use of superlatives. time allocations – e.g., In Italy 12% ads per hour., special taxes – e.g., Japan, type of product, type of copy and illustration, etc. • Countries view the value of advertising in different ways – U.S. = eager to criticize advertising (especially that aimed at children) – Asia = advertisements provide good product information, respects consumers’ intelligence – Former Soviet Union = most skeptical Products Suitable for Standardized Advertising • Luxury products
  3. 3. R. Srinivasan 3 • High-tech products • Experiential products • Favorable country image Five Global Product and Promotion Strategies Pattern advertising • Plan globally act locally. • Broad outlines or basic positioning given but details can be adapted. • Assuming that there are some differences in culture and consumer behavior even if primary function is the same. Global Advertising – 7 Steps in International Advertising • 1. Perform marketing research • 2. Specify the goals of the communication • 3. Develop the most effective message • 4. Select effective media • 5. Compose and secure a budget • 6. Execute the campaign • 7. Evaluate the campaign relative to the goals specified