1. No category

The International Promotional
Mix and Advertising Strategies
Dana-Nicoleta Lascu
Chapter 13
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
International Promotional Mix
• Advertising
• Salesforce Management
• Sales Promotion
• Public Relations
• Publicity
Copyright Atomic Dog Publishing, 2002
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.
Copyright Atomic Dog Publishing, 2002
International Communication Process
SENDER
MEDIUM
RECEIVER
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.
Copyright Atomic Dog Publishing, 2002
Non-Personal Communication Media
• Print media
• Broadcast media
• Interactive media

Not widely available in developing
countries
Copyright Atomic Dog Publishing, 2002
Personal Media
• Salespeople
• Telemarketers
• Trade show and exhibits

Individuals can interact with knowledgeable company
representatives
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
Advertising
A nonpersonal communication by an identified sponsor
across international borders, using broadcast, print,
and/or interactive media.
Copyright Atomic Dog Publishing, 2002
Media Infrastructure
• Availability
• Reliability
• Restrictions
• Costs
Copyright Atomic Dog Publishing, 2002
Media Reliability
• Extent to which the existing media reliably reach the
target consumer



Print lag times
Poor quality
Off-air Television
Copyright Atomic Dog Publishing, 2002
Media Restrictions
• Limitations imposed by existing media




Limiting the number and types of advertisements
Cultural differences
Clustered ads
Media scheduling
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
Global Media
• Television



Copyright Atomic Dog Publishing, 2002
CNN, Bloomberg, MTV
Tonight Show, Disney
Fox Broadcasting, 20th Century
Fox, 20th Century Television
Infomercials & TV Shopping
• Shopping


Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
Product Placement
Placing brands in movies and television
programming with the purpose of promoting the
products to viewers
• U.S. movies’ box-office receipts are steadily
increasing
• U.S. films are very successful abroad
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
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)
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002
Budgeting Decisions, continued
•
Historical Method

•
Competitive Parity

•
Use international competitors’ budgets as benchmark
Executive-judgment method

•
Base budget on past expenditures giving more weight to
recent expenditures
Use collective executive opinion
All-you-can-afford

Best suits small and medium firms
Copyright Atomic Dog Publishing, 2002
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
Copyright Atomic Dog Publishing, 2002