advertising (global ad & promotion effort)

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  • 7/28/2019 Advertising (Global Ad & Promotion Effort)

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    The Global Advertising

    and

    Promotion Effort

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1515

    The Top 5 Global Ad AgenciesThe Top 5 Global Ad Agencies

    Ad OrganizationAd Organization

    HeadquartersHeadquarters

    WPP GroupWPP Group LondonLondon

    OmnicomOmnicom GroupGroup New YorkNew York

    InterpublicInterpublic Group ofGroup ofCosCos.. New YorkNew York

    DentsuDentsu JapanJapan

    Young &Young & RubicamRubicam New YorkNew York

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    The Global Advertising & Promotion

    I. Planning Promotional Expenditures

    1) Determine the target audience

    2) Develop specific campaign objectives

    3) Setting the budget4) Choosing media strategy

    a) Media availability

    b) Product restrictions5) Determine the message

    6) Determine campaign strategy

    7) Measure advertising effectiveness

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--44

    Planning Promotional CampaignsPlanning Promotional Campaigns

    Target AudienceTarget Audience

    Promotional campaigns affect more thanPromotional campaigns affect more than

    consumers who purchase the product or service.consumers who purchase the product or service.

    Suppliers, intermediaries, government, local community,Suppliers, intermediaries, government, local community,

    bankers and creditors, media organizations,bankers and creditors, media organizations,

    shareholders, and employees.shareholders, and employees.

    Research to determineResearch to determine multimarketmultimarkettargettarget

    audiences is required asaudiences is required as

    firms become morefirms become more

    internationally involved.internationally involved. Corporate image advertisingCorporate image advertising

    Umbrella campaignsUmbrella campaigns

    Global image campaignsGlobal image campaigns

    Who are ourWho are our

    customers?customers?

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1111

    Audience CharacteristicsAudience Characteristics

    Strategy is to reach the intended targetStrategy is to reach the intended target

    audience with the minimum of waste.audience with the minimum of waste.

    Marketing strategist needs to knowMarketing strategist needs to know

    Media distribution (number of copies)Media distribution (number of copies)

    Media audienceMedia audience compostioncompostion Advertising exposureAdvertising exposure

    Advertising perceptionAdvertising perception

    Consumer responseConsumer response

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--55

    Campaign ObjectivesCampaign Objectives

    Global objectivesGlobal objectives

    General guidelines and control for broadGeneral guidelines and control for broad--basedbased

    campaigns (consistency of message)campaigns (consistency of message)

    Regional objectivesRegional objectives

    Local objectivesLocal objectives Specific and measurable targetsSpecific and measurable targets

    (awareness, image, market(awareness, image, market

    share) for individual markets.share) for individual markets.

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    Setting the Advertising Budget

    Major Methods:

    1) All You Can Afford Technique2) Percentage of Sales

    3) Matching Competitors

    4) Objective and Task

  • 7/28/2019 Advertising (Global Ad & Promotion Effort)

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    Worldwide Media StrategyWorldwide Media Strategy

    Challenges of country and regionalChallenges of country and regional

    differencesdifferences

    Cultural, ethnic, regulatory, demographicCultural, ethnic, regulatory, demographic

    Responses to challengesResponses to challenges

    Social responsibilitySocial responsibility(Cause(Cause--related marketing)related marketing)

    Sound management systemsSound management systems

    excellent communicationsexcellent communications

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    Media Selection

    Newspapers

    Magazines

    Radio & Television

    Satellite and Cable Television

    Direct Mail

    Other Media

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1212

    Global MediaGlobal Media

    Print publications providing global coveragePrint publications providing global coverage

    with regional language and content editions.with regional language and content editions.

    PanPan--regional radio and television, the Internetregional radio and television, the Internet

    Important global media characteristicsImportant global media characteristics

    TargetabilityTargetability

    ClientClient--compatible editorialcompatible editorial

    Editorial qualityEditorial quality

    Who advertises in global media?Who advertises in global media?

    Airline, financial services,Airline, financial services,

    telecommunication, automobile,and tobaccotelecommunication, automobile,and tobacco

    companiescompanies

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1313

    The Promotional MessageThe Promotional Message

    Know customer habits and motivations: WhatKnow customer habits and motivations: What

    are consumers really buying and why?are consumers really buying and why?

    Factors in developing the message:Factors in developing the message:

    Diffusion of the product or service into the market.Diffusion of the product or service into the market.

    Criteria on which customers evaluate the product.Criteria on which customers evaluate the product. The products positioning.The products positioning.

    The ideal is to have a world brand.The ideal is to have a world brand.

    a product that is manufactured, packaged, anda product that is manufactured, packaged, and

    positioned the same around the world.positioned the same around the world.

    Localize international symbols with regional orLocalize international symbols with regional or

    country area themes and personalities.country area themes and personalities.

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1414

    The Media Campaign ApproachThe Media Campaign Approach

    What type of outside services to use?What type of outside services to use?

    How to establish decisionHow to establish decision--making authority?making authority?

    Outside services are chosen by their qualityOutside services are chosen by their quality

    of coverage.of coverage.

    The value of outside expertiseThe value of outside expertise Creative development skillsCreative development skills

    Media buying savvyMedia buying savvy

    Specialty marketing knowledgeSpecialty marketing knowledge

    Conflict in the use ofConflict in the use ofmegamega--agenciesagencies

    Conflicts of interest when two competitors areConflicts of interest when two competitors are

    represented by the same agencyrepresented by the same agency

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1818

    Measuring of Advertising EffectivenessMeasuring of Advertising Effectiveness

    Typical effectivenessTypical effectiveness--testing techniquestesting techniques

    PrePre--testing of copy appeal and brand recognitiontesting of copy appeal and brand recognition

    PostPost--testing of product or brand recognitiontesting of product or brand recognition

    Measuring campaigns impact on salesMeasuring campaigns impact on sales

    MeasuresMeasures Sales increases and sales pattern changesSales increases and sales pattern changes

    Increases in consumer awareness and recallIncreases in consumer awareness and recall

    Intention to buy, coupon returnIntention to buy, coupon return

    There are no universally acceptedThere are no universally accepted

    parameters of measurement and analysis toparameters of measurement and analysis to

    compare one country audience to another.compare one country audience to another.

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    Misfires in Advertising Phonetic Problems with Brand Names

    - Bardok (Sounds like Brothel in Russian)- Coca Cola (Sounds like bite the Wax Tadpole)- Misair (Sounds like Misery in French)

    Translations

    Intent Translation- Stepping Stone - Stumbling Block

    - Car Wash - Car Enema

    - Highly Rated - Over Rated

    Symbols- Owl - Bad Luck in India

    Other Countries make mistakes too

    - Zit (Chocolate from Germany)- Koff (Beer)

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1919

    50% off50% offwithwith

    CouponCoupon

    Other Promotional ElementsOther Promotional Elements

    Personal SellingPersonal Selling

    Typically associated bigTypically associated big--ticket (highticket (high--priced) itemspriced) items

    such as industrial goods.such as industrial goods.

    Proper training is crucial to successProper training is crucial to success

    Sales PromotionsSales Promotions CouponingCouponing, sampling premiums, education and, sampling premiums, education and

    demonstration, pointdemonstration, point--ofof--purchase, direct mailpurchase, direct mail

    The impact of promotions on intermediariesThe impact of promotions on intermediaries

    must be carefully considered.must be carefully considered. Varying local regulations mayVarying local regulations may

    prevent or limit the types andprevent or limit the types and

    use of sales promotions.use of sales promotions.

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--2020

    Public RelationsPublic Relations

    Public Relations (PR) builds imagesPublic Relations (PR) builds images

    PRs goal is understanding and acceptance.PRs goal is understanding and acceptance.

    PR provides internal and external acceptancePR provides internal and external acceptance

    for the organization.for the organization.

    Internally, PR functions toInternally, PR functions to Provide Information through internalProvide Information through internal

    publications (e.g.,newsletterspublications (e.g.,newsletters

    and intranets)and intranets)

    Help create the appropriateHelp create the appropriatecorporate culturecorporate culture

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    Copyright 2001 by Harcourt, Inc. All r ights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--2121

    Public Relations continuedPublic Relations continued

    Externally, PR in multinational corporations isExternally, PR in multinational corporations is

    concerned withconcerned with

    Building a global identity to build sales,productBuilding a global identity to build sales,product

    and service differentiationand service differentiation

    Providing information furtheringProviding information furthering

    marketing objectivesmarketing objectives

    Anticipating and countingAnticipating and counting

    criticism of the organizationcriticism of the organization

    Taking a lead role in crisisTaking a lead role in crisis

    managementmanagement