Transcript No Slide Title

Chapter 16
The Global Advertising
and
Promotion Effort
The Top 5 Global Ad Agencies
Ad Organization
Headquarters
WPP Group
Omnicom Group
Interpublic Group of Cos.
Dentsu
Young & Rubicam
London
New York
New York
Japan
New York
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-15
Media Availability
$300 billion spent on worldwide media in 1999!
T o tal S p en d in g (b illo n s), 1999
0
20
40
80
100
120
117
U.S
Japan
3 5 .7
U.K .
2 0 .8
G erm any
2 0 .3
France
9 .7
B r a z il
8 .8
Au s tr a lia
5 .5
Canada
5 .4
S o u th K o r e a
5 .3
Ne th e r la n d s
60
3 .7
Copyright © 2001 by Harcourt, Inc. All rights reserved.
Source: Adapted from “Top Global Ad Markets,”
Advertising Age International,
International, May, 1999, 3535-38.
2020-7
Media Availability
P er C ap ita S p en d in g ($), 1999
0
50
100
150
200
250
300
350
450
400
U.S
297
Japan
323
U.K .
230
G erm any
158
France
B r a z il
400
54
263
Au s tr a lia
Canada
S o u th K o r e a
Ne th e r la n d s
Copyright © 2001 by Harcourt, Inc. All rights reserved.
157
140
240
Source: Adapted from “Top Global Ad Markets,”
Advertising Age International,
International, May, 1999, 3535-38.
2020-8
The Global Advertising & Promotion
I. Planning Promotional Expenditures
1)
2)
3)
4)
Determine the target audience
Develop specific campaign objectives
Setting the budget
Choosing media strategy
a) Media availability
b) Product restrictions
5) Determine the message
6) Determine campaign strategy
7) Measure advertising effectiveness
Planning Promotional Campaigns
 Target
Audience
• Promotional campaigns affect more than
consumers who purchase the product or service.
– Suppliers, intermediaries, government, local community,
bankers and creditors, media organizations,
shareholders, and employees.
• Research to determine multimarket target
audiences is required as
Who are our
firms become more
customers?
internationally involved.
• Corporate image advertising
• Umbrella campaigns
• Global image campaigns
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-4
Audience Characteristics
 Strategy
is to reach the intended target
audience with the minimum of waste.
 Marketing strategist needs to know
• Media distribution (number of copies)
• Media audience compostion
• Advertising exposure
• Advertising perception
• Consumer response
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-11
Campaign Objectives
 Global
objectives
• General guidelines and control for broad-based
campaigns (consistency of message)
 Regional
objectives
 Local objectives
• Specific and measurable targets
(awareness, image, market
share) for individual markets.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-5
Setting the Advertising Budget
Major Methods:
1) “All You Can Afford” Technique
2) Percentage of Sales
3) Matching Competitors
4) Objective and Task
Worldwide Media Strategy
 Challenges
of country and regional
differences
• Cultural, ethnic, regulatory, demographic
 Responses
to challenges
• Social responsibility
(Cause-related marketing)
• Sound management systems
• excellent communications
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-2
Media Selection
• Newspapers
• Magazines
• Radio & Television
• Satellite and Cable Television
• Direct Mail
• Other Media
Global Media
 Print
publications providing global coverage
with regional language and content editions.
 Pan-regional radio and television, the Internet
 Important global media characteristics
• Targetability
• Client-compatible editorial
• Editorial quality
 Who
advertises in global media?
• Airline, financial services,
telecommunication, automobile,and tobacco
companies
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-12
Internet Advertising Spending By Region
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
N o r th A m e r ic a
E u ro p e
A s ia -P a c ific
L a tin A m e r ic a
T o ta l
1 6 ,6 7 5
1998
Copyright © 2001 by Harcourt, Inc. All rights reserved.
1999
2000
2001
2002
Source: Adapted from http://www.forrester
.com
http://www.forrester.com
2020-9
Household Penetration of Cable, Satellite, and
Internet Top 10 Media Markets 1997
Country
Cable Satellite Internet
United
States
Japan
Germany
UK
France
Brazil
So. Korea
China
Italy
Mexico
66.9
4.1
21.3
22.9
59.9
7.0
7.0
4.3
14.0
25.8
N/A
7.5
22.9
20.7
15.0
8.0
5.2
N/A
25.8
3.4
1.5
9.9
11.6
5.0
1.7
0.003
1.8
N/A
1.9
0.06
SOURCE: Abstracted from: “Top Global Advertising Market” Ad Age
International, May 1997. p. 17.
The Promotional Message
 Know
customer habits and motivations: What
are consumers really buying and why?
 Factors in developing the message:
•
•
•
Diffusion of the product or service into the market.
Criteria on which customers evaluate the product.
The product’s positioning.
 The
ideal is to have a world brand.
• “…a product that is manufactured, packaged, and
positioned the same around the world.”
• Localize international symbols with regional or
country area themes and personalities.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-13
The Media Campaign Approach
 What
type of outside services to use?
 How to establish decision-making authority?
 Outside services are chosen by their quality
of coverage.
 The value of outside expertise
•
•
•
Creative development skills
Media buying savvy
Specialty marketing knowledge
 Conflict
in the use of mega-agencies
• Conflicts of interest when two competitors are
represented by the same agency
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-14
Measuring of Advertising Effectiveness
 Typical
effectiveness-testing techniques
• Pre-testing of copy appeal and brand recognition
• Post-testing of product or brand recognition
• Measuring campaign’s impact on sales
 Measures
• Sales increases and sales pattern changes
• Increases in consumer awareness and recall
• Intention to buy, coupon return
 There
are no universally accepted
parameters of measurement and analysis to
compare one country audience to another.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-18
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
- Car Wash
- Highly Rated
- Stumbling Block
- Car Enema
- Over Rated
Symbols
- Owl
- Bad Luck in India
• Other Countries make mistakes too
- Zit
- Koff
(Chocolate from Germany)
(Beer)
Other Promotional Elements
 Personal
Selling
• Typically associated big-ticket (high-priced) items
such as industrial goods.
• Proper training is crucial to success
 Sales
Promotions
• Couponing, sampling premiums, education and
demonstration, point-of-purchase, direct mail
• The impact of promotions on intermediaries
must be carefully considered.
50% off
with
Coupon
• Varying local regulations may
prevent or limit the types and
use of sales promotions.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-19
Public Relations
 Public
Relations (PR) builds images
• PR’s goal is understanding and acceptance.
 PR
provides internal and external acceptance
for the organization.
 Internally, PR functions to
• Provide Information through internal
publications (e.g.,newsletters
and intranets)
• Help create the appropriate
corporate culture
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-20
Public Relations… continued
 Externally,
PR in multinational corporations is
concerned with
• Building a global identity to build sales,product
and service differentiation
• Providing information furthering
marketing objectives
• Anticipating and counting
criticism of the organization
• Taking a lead role in crisis
management
Copyright © 2001 by Harcourt, Inc. All rights reserved.
2020-21