1. © 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. Promotion in International Business

2. © 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  1. Target audience (market)  2. Campaign objectives  3. Budget  4. Media  5. Message  6. Campaign approach  7. Campaign effectiveness

3. © 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  1. The target audience : Global marketers face multiple audiences beyond customers  Expectations have to be researched to ensure the appropriateness of campaign decision making—ie., cultural, legal, media availability  Cause-related marketing : One of the approaches in which the company, or one of its brands, is linked with a cause (such as environmental protection or children’s health)

4. © 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 campaigns may help multidivisional companies to:  Boost the image of lesser-known product lines  Make the company itself be understood correctly or perceived more positively

5. © 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  2. Campaign objectives  Essential to have well-established, clearly defined, measurable objectives  Awareness, image, market share  Can be divided into overall global and regional objectives as well as local objectives  Objectives at the local level are more specific and set measurable targets for individual markets  Have to be measurable for control purposes

6. © 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  3. Budget  Links established objectives with media, message, and control decisions.  Resource constraints always an issue.

7. © 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  4. Media strategy : The major factors determining the choice of the media vehicles to be used are  GOVERNMENT REGULATIONS!  Availability of media in a given market  Product or service itself  Media habits of the intended audience - Media strategist needs data on:  Media distribution, Media audiences, Advertising exposure

8. © 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

9. © 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. EXAMPLE: Restrictions on Advertisements for Specific Products

10. © 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  5. Message: Developing the promotional message is referred to as creative strategy  Convey the message but allow for local nuances  Customers prefer local advertising  Consumer’s motivations vary depending on:  The diffusion of the product, service, or concept into the market  The criteria on which the consumer will evaluate the product  The product’s positioning

11. © 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  7. Campaign effectiveness  Should range from pretesting of copy appeal and recognition, to post-testing of recognition, all the way to measuring sales effects  Common measures: sales, awareness, recall, intention to buy, profitability

12. © 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  Defined as a two-way flow of communication between a potential buyer and a salesperson  High level of effectiveness, high level of cost  Designed to accomplish three tasks:  Identify the buyer’s needs  Match these needs to one or more of the firm’s products  Based on this match, convince the buyer to purchase the product  What type of products would typically use personal selling?

13. © 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  The export process is externalized  The intermediary will take care of the international sales effort  Direct exports Guidelines for the marketer-intermediary interaction:  Know the sales scene  Research the customer  Work with the culture  Learn from local representatives

14. © 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  Direct marketing  Establishes relationship with a customer in order to initiate immediate and measurable responses  Dominant direct-response medium  Includes letters, catalogs, ads, brochures, samples, and DVDs

15. © 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  Internet : Connects users of all types  Offers five main advantages:  Allows the company to increase its presence in the marketplace  Allows 24-hour access to customers and prospects  Improves customer service  Ability of the marketers to gather information  Provides an opportunity to close sales

16. © 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 : Allows the creation of an individual relationship with each customer or prospect  Two types of databases - Consumer databases and business databases  Social networking service : An online service, platform, or site that focuses on building and reflecting social networks that share interests or activities

17. © 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:  Cost and clutter of media advertising  Simpler targeting of customers compared with advertising  Easier tracking of promotional effectiveness Regulations make global sales promotions rare and difficult to launch

18. © 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  Trade shows and missions: An event where manufacturers, distributors, and other vendors  Display their products  Describe their services to current and prospective customers, suppliers, other business associates, and the press

19. © 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  Opportunity to introduce, promote, and demonstrate new products  Goodwill and contact cultivation  Opportunity to find an intermediary  Meet government officials and decision makers  Opportunity for market research and collecting competitive intelligence  Reach sizable sales prospects in a brief time period at a reasonable cost per contact

20. © 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  High cost  Difficulty in choosing the appropriate trade fairs for participation  Coordination

21. © 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: The way a multinational corporation relates to and is perceived by its key constituents  Communication can be both internal (within the company) and external (focuses on customer interactions)

22. © 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:  Reactive public relations, anticipating and countering criticism  Crisis management : Specially assigned task forces ready to step in if problems arise  Should have traits like:  Openness, Preparedness, Integrity, Clarity

23. © 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 and initiate topics of interest on the Web  Engage in online discussions that strongly affect their and others’ views  Online bulletin boards, blogs, podcasts, websites for consumers to post complaints and compliments

24. © 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  Involves the marketer’s investment in events or causes  Sponsorship of events is driven by the desire to be associated with a worldwide event that has:  A positive image, Global reach, A proven strategic positioning of excellence  Ambush marketing : Use of an event without the permission of the event owner (Ex: Olympics)