INTERNATIONAL PROMOTION POLICY

Factors influencing communication at international level

Language differences Cultural differences Social differences Economic differences Legal differences Competitive differences Noise differences

INTERNATIONAL PROMOTIONAL PLAN

1. Select target audience and positioning theme 2. Set campaign objectives + degree of worldwide
standardization

3. Determine the promotional mix 4. Determine promotional budget 5. Develop message strategy 6. Decide on media strategy 7. Assess effectiveness

1. SELECT TARGET AUDIENCE AND POSITIONING THEME

Who are the consumers to whom the company will address the products?

Target audience = market segment local vs. global segment ?

Shall it choose the audience according to the similarities and commonalities between consumers from different countries?

Positioning = image for each country global positioning?

Global positioning = transmit the same image all over the world Usually, global positioning comes with global market segments

2. SET CAMPAIGN OBJECTIVES AND DEGREE OF STANDARDIZATION Promotional objectives: brand awareness, improve perception, promote new service Degree of standardization :
Is the company going to have a standard promotional campaign in all countries? Is it going to adapt to local conditions? To what degree shall the company standardize? To what degree shall the company adapt?

Degree of standardization
Segment Positioning Promotional objectives Promotional mix Message strategy Media strategy

3. INTERNATIONAL PROMOTIONAL MIX

The promotional tools to be used in order to reach the promotional objectives are set.

advertising personal selling sales promotions public relations

Advertising

WHAT IS GLOBAL ADVERTISING ?

Global Market Segmentation World Brands Pan-European Advertising Pattern Advertising

Advertising

PATTERN ADVERTISING

PLAN GLOBALLY, ACT LOCALLY! global advertising strategy (such as a standardized basic message) some degree of modification (different media ) to meet local needs Ex: Levi (the quality of the product and the American
origin)

Advertising

WHAT IS GLOBAL ADVERTISING ?

Global Advertising offers the Advantages of creating a global image for the product and of obtaining cost savings

Advertising

CHALLENGES TO GLOBAL ADVERTISING

Legal Considerations Language Limitations Cultural Diversity Media Limitations

Advertising

Legal considerations in advertising

comparative advertising content of advertising message advertising of vicious products advertising towards children advertising taxation

Advertising

Legal considerations in advertising

Comparative advertising
refers to comparisons made between products in ads Can be explicit or implicit In USA direct comparative advertising is commonplace, while in other countries comparative advertising is more or less restricted. In EU, implicit comparisons are allowed but explicit comparisons are banned. Other examples: India Pepsodent (Unilever)

Advertising

Legal considerations in advertising

Content of advertising message
regulated in some industries in different countries. Pharmaceuticals: in Austria advertising for drugs is forbidden by law, in Denmark is forbidden advertising for non-prescription drugs and in France prior approval of a government authority is needed to advertise drugs. In Australia, there is an Advertising Standard Council In Vietnam the Ministry of Trade, the Ministry of Culture, the Customs department, any TV station or newspaper can censor an ad.

Advertising

Legal considerations in advertising

Content of advertising message
slimming products in Finland ; pregnancy tests and contraceptives (forbidden in Ireland), sweets (ads for sweets have to display a toothbrush symbol in Netherlands), cars (ads for cars have to contain costs of taxes and insurance and figures of net fuel consumption in Portugal), pornographic ads or any ads offensive to the public taste are forbidden in UK.

Advertising

Legal considerations in advertising

Advertising of vicious products
TV advertising of the so called vicious products such as alcohol, tobacco is also regulated in many countries.

Advertising

Legal considerations in advertising

Advertising towards children
In Quebec, Canada TV stations are not allowed to air towards children and the same in Sweden. In Finland children cannot speak or sing the name of a product in a commercial. In Italy commercials in cartoon programs are banned. Advertising for war toys and games of chance are forbidden in Germany.

Advertising

Legal considerations in advertising

Advertising taxation
In some countries special taxes apply to advertising. Ex: Austria, Romania France also intends to introduce such taxes on TV and radio advertising. Such taxes increase the cost of promotion and the per capita cost of advertising.

Advertising

Language Limitations
Errors of translations:
Simple carelessness: Avoid embarrassment, use Parker Pens Multiple meaning words (where more dialects are spoken in one country or where one language is spoken in more countries and the same word has different meanings). Idioms or local slogan can determine blunders in international marketing. You cannot use a more fine napkin at your dinner table

Advertising

Language Limitations
Solutions:
to involve a local advertising agency, for English speaking audiences, use the English slogan world wide.
Examples are United Colours of Benetton; Coke is it or Always Coca-Cola; Pepsi the choice of a New Generation; Philips makes things better etc. ,

to use of voice-overs that say an adapted local slogan.

Advertising

Cultural Diversity
Different perceptions due to cultural factors
P&G Pampers in Japan Religion
P&G shampoo ad in Saudi Arabia

Attitudes toward advertising affect the effectiveness of the ad

CEE people attitudes at the beginning of 1990s In Egypt people have negative attitudes towards advertising In China, consumers declared that advertising is the prime factor that consumer use when choosing a brand

Advertising

Media Limitations
Development or underdevelopment of media infrastructure
In emerging and LDC:
few TV stations and radio stations poor quality of print media such as magazines, newspapers advertising cannot be properly planned as there are no reliable statistics available about media readership (there are no surveys on who reads what and where).

3. INTERNATIONAL PROMOTIONAL MIX

Advertising Personal selling Sales promotions Public relations

Personal selling Little true international selling, because salespeople carry out most of their sales within one country. In international selling the salesperson has to know the local customs and to be able to form relationships with the customers. Personal selling is influenced by the company culture and by the country culture.

Personal selling A customer or a prospective purchaser is met in person by a representative of the firm for the purpose of making a sale.
a distribution tool a promotional tool a market research tool

As a promotional tool personal selling is the most expensive but it is also very effective and flexible in the sense that instant feedback can be given. Personal selling is recommended when the market is concentrated and when the products are expensive (high unit value) or not frequently purchased.

Sales promotions A collection of short term incentive tools directed to consumers and/or retailers that have the objectives to increase sales quickly.

Sales promotions

Sales promotions For most international companies sales promotions have a local character due to:
different stages of the market maturity: in early stages of PLC, samples and coupons to induce the trial of the product are appropriate, while in more established markets (the maturity stage of the PLC) bonuses, in-pack coupons, price reductions in order to encourage repeat purchase are recommended, different cultural perceptions about different forms of sales promotions. For instance, European consumers use far fewer coupons than the American consumers differences in local trade structure and the balance of power between manufacturers and distributors. Ex. P&G in Germany government regulations for premiums, price reductions (sales), contests/lotteries

Public relations Public Relations (PR) is the actions of a corporation, store, government, individual, etc., in promoting goodwill between itself and the public, the community, employees, customers, etc.

Public relations

P.R. Objectives
promote awareness of the existence of the company, anticipate and counter criticism of the company and to minimise damage to the company image, in relationship with product issues and corporate conduct, to overcome prejudice against the use of the companys product, to promote and establish a brand image in a foreign market, to increase a companys sphere of influence and achieve a high profile.

Public relations

P.R. Tools

Public relations

Crisis Management
Danone: o criza simpla, consecin e complicate Ieri s-a incheiat o saptamana de panica, in care recipientul de 125 de grame de iaurt Danone a devenit vedeta in presa romaneasca. Dioxina, scandal, analize si guar, otrava indiana infiltrata in produsele unui gigant european, care se ascunde in tacere. Oficialii Danone au venit insa cu o explicatie simpla: nu au dat alerta mai devreme deoarece aveau dinainte rezultatele linistitoare oferite de laboratorul din Budapesta.

3. INTERNATIONAL PROMOTIONAL MIX

The promotional tools to be used in order to reach the promotional objectives are set.

INTEGRATED MARKETING COMMUNICATION

convey one and the same idea with a UNIFIED VOICE all promotional mix elements to center around a SINGLE KEY IDEA

4. SETTING THE GLOBAL PROMOTIONALBUDGET

SET THE BUDGET
1. Percentage of sale

ALLOCATE ACROSS COUNTRIES

1. Bottom-up

2. Competitive parity

2. Top-down

3. Objective-and-task

3. Region angle

5. MESSAGE STRATEGY:
STANDARDIZATION VS. ADAPTATION
MERITS OF STANDARDIZATION scale economies (ex: Levi) consistent image (ex: EU,
ww travellers)

global consumer markets cross fertilization

http://www.youtube.com/watch?v=gm_RQFikDyM http://www.youtube.com/watch?v=3xW6LK-a0vI http://www.youtube.com/watch?v=GblPkOAgnt0&feature=related

5. MESSAGE STRATEGY:
STANDARDIZATION VS. ADAPTATION
BARRIERS TO STANDARDIZATION cultural differences advertising regulations market maturity non-invented-here syndrom (NIH)

5. MESSAGE STRATEGY:
STANDARDIZATION VS. ADAPTATION

6. MEDIA STRATEGY
Choosing the right media: Reach. Refers to the number of individuals or households reached. Frequency. Refers to the number of times a message is delivered to target audiences. Continuity. Refers to the pattern of message delivery. Size. Refers to the space or time unit employed.

6. MEDIA STRATEGY
TACTICAL CONSIDERATIONS availability cost coverage lack of market data
SPECIFIC MEDIA newspapers magazines radio and television satellite and cable TV direct mail internet

7. ASSESS EFFECTIVENESS

controlling and monitoring reach promotional and marketing objectives corrections

COORDINATING INTERNATIONAL ADVERTISING

cooperative advertising (monetary incentives) advertising manuals lead-country concept global or pan-regional meetings

CHOOSING AN ADVERTISING AGENCY

Local vs. Multinational agency (ex: Jaguar)?
market coverage quality coverage expertise in central international campaigns quality of support services the image the company wants to projects (local vs. global) size conflicting accounts

CHOOSING AN ADVERTISING AGENCY

Top 10 Global Advertising Agencies
1. Dentsu (Omnicom) 2. BBDO Worldwide (Omnicom) 3. McCann-Erickson Worldwide (Interpublic) 4. DDB (Omnicom) 5. TBWA (Omnicom) 6. JWT (WPP) 7. Publicis (Publicis) 8. Leo Burnett (Publicis) 9. Saatchi & Saatchi (Publicis) 10.Ogilvy & Mather (WPP)