© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Advertising, Promotion, and Sales

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Communications Process Encoding: Message channel –

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Communications Process Face to-face contact is still necessary for the need Decoding:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Communications Process Noise: Outcome: Feedback:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns Determine the target audience Determine the budget Determine the message Determine campaign effectiveness

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns The target audience: Expectations have to be researched to ensure the appropriateness of campaign decision making Cause-related marketing: Corporate image advertising:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns Umbrella campaign helps multidivisional companies to: Companies announce repositioning strategies through image campaigns to:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns Campaign objectives Can be divided into overall global and regional objectives as well as local objectives Have to be measurable for control purposes

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns The budget Ideally, budget would be set as a response to the objectives to be met Budgets can be used as a control mechanism if headquarters retain final budget approval

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns Media strategy: The major factors determining the choice of the media vehicles to be used are Media habits of the intended audience - Media strategist needs data on:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns Global media vehicles have target audiences on at least three continents and the media buying takes place through a centralized office

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns The promotional message: Developing the promotional message is referred to as creative strategy Consumer’s motivations vary depending on:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns The localization of global ideas is achieved by various tactics:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns The campaign approach What type of outside services to use How to establish decision-making authority for promotional efforts

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns Measurement of advertising effectiveness

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns The measures most used are

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning Promotional Campaigns Personal selling Designed to accomplish three tasks:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Indirect exports Direct exports: Guidelines for the marketer- intermediary interaction:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Integrated solutions: Final stage of globalization Direct marketing Dominant direct-response medium

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements The Internet: Connects users of all types Offers five main advantages:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Database marketing: Two types of databases – Social networking service:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Sales promotion Used for promotion that does not fall under advertising, personal selling, or publicity The appeal is related to several factors: To be effective, the campaign must gain support of local retailer population

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Regulations make global sales promotions rare and difficult to launch Trade shows and missions: An event where manufacturers, distributors, and other vendors

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Reasons for participation in trade fairs

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Reasons for non participation in trade fairs

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Public relations Image: Internal public relations

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Some of the material used internally External public relations: External campaigns can be achieved through:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Unanticipated developments places the company in a position that requires: Crisis management: Should have traits like:

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Consumer-generated media (CGM): Consumers find initiate topics of interest on the Web Public relations function can be handled in- house or with the assistance of an agency Use and extent of public relations activity vary by company and type of activity needed

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Other Promotional Elements Sponsorship marketing Sponsorship of events is driven by the desire to be associated with a worldwide event that has: Ambush marketing: