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Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002

The International Promotional Mix and Advertising Strategies

Dana-Nicoleta Lascu

Chapter 13


Chapter Objectives

• Describe the international promotional mix and the international communication process

• Explore the international advertising formats and practices around the world

• Describe the international advertising and media infrastructure and infrastructure-related challenges in different markets

• Describe advertising strategies and budgeting decisions and offer examples of international applications


International Promotional Mix

• Advertising

• Salesforce Management

• Sales Promotion

• Public Relations

• Publicity


International Promotional Mix, continued

Understanding the norms, motivations, attitudes, interests, and opinions of the target market is crucial to company success in marketing to and communicating with different cultures around the globe.


International Communication Process

SENDER RECEIVERMEDIUM

Sponsor (sender) encodes message and sends it through the channel (medium) to the international consumer (receiver); the international consumer receives the message and decodes it into meaningful information.


Non-Personal Communication Media

• Print media

• Broadcast media

• Interactive media Not widely available in developing

countries


Personal Media

• Salespeople

• Telemarketers

• Trade show and exhibits Individuals can interact with knowledgeable company

representatives


International Communication Challenges

• Media infrastructure

• Unreliable mail

• Limited broadcast media

• Media is not use for advertising• Translation deficiencies—meanings intended may not

be the meanings conveyed


Lessen Communication Challenges

1) Hire research firms to evaluate message in multiple international environments

2) Evaluate effectiveness communication in attracting target market attention

3) Evaluate effectiveness communication in getting consumers to purchase the product


Advertising

A nonpersonal communication by an identified sponsor across international borders, using broadcast, print, and/or interactive media.


Media Infrastructure

• Availability

• Reliability

• Restrictions

• Costs


Media Reliability

• Extent to which the existing media reliably reach the target consumer Print lag times Poor quality Off-air Television


Media Restrictions

• Limitations imposed by existing media Limiting the number and types of advertisements Cultural differences Clustered ads Media scheduling


Media Costs

• Differ greatly between countries, and even within a particular country Income per capita of target market Competition for media Firm status Translation costs


Various International Formats, Features, and Trends

• Posters on Kiosks and Fences

• Advertising on the Sides of Private Homes

• Advertising on Plastic Shopping Bags

• Advertising on Outdoor Umbrellas

• Billboards


Global Media

• Television CNN, Bloomberg, MTV Tonight Show, Disney Fox Broadcasting, 20th Century

Fox, 20th Century Television


Infomercials & TV Shopping

• Shopping QVC, Home Shopping Network Home Order Television


Using English In Local Advertisements

• English: Requires less space in print and broadcasting time Conveys a cosmopolitan attitude Endows a product or service with status


Product Placement

• U.S. movies’ box-office receipts are steadily increasing

• U.S. films are very successful abroad

Placing brands in movies and television programming with the purpose of promoting the products to viewers


Advertising Regulations

• Comparative Advertising

• Advertising to Children

• Advertising Vice Products

• Other Regulations: Vary by country; examples:

- France: Requirement to keep the French language pure- Islamic countries: Ban the use of sex in advertising


International Advertising Infrastructure

• Develop ads in-house

• Local advertising agencies

• Home-country agencies

• International agencies Top agencies are:

- Omnicom Group- Interpublic Group- Young & Rubicam (U.S.) - WPP Group (U.K.)- Dentsu, Inc. (Japan)


International Advertising Strategy

• Standardization vs. Adaptation Standardization reduces costs: No duplication of effort for

each market

Individual campaigns delay product launches

Consumers increasingly share similar frames of references with regard to products and consumption


Barriers to Standardization

• Communication infrastructure

• Agencies might not serve a particular market

• Consumer literacy

• Legal restrictions and self-regulation

• Differing values and purchase motivations

• Attitudes toward product country of origin

• Promotional mix elements


Budgeting Decisions

• Objective-and-Task Method

1. Identify advertising goals

2. Conduct research

3. Determine cost of achieving goals

4. Allocate the necessary sum

• Percent-of-Sales Method Base budget on past or projected sales


Budgeting Decisions, continued

• Historical Method Base budget on past expenditures giving more weight to

recent expenditures

• Competitive Parity Use international competitors’ budgets as benchmark

• Executive-judgment method Use collective executive opinion

• All-you-can-afford

Best suits small and medium firms


Chapter Summary

• Addressed the international promotional mix and the international communication process

• Explored international advertising formats and practices around the world

• Described international advertising and media infrastructure, and infrastructure-related challenges in different markets

• Addressed advertising strategies and budgeting decisions

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