The Global Advertising and Promotion Effort

The Top 5 Global Ad Agencies

Ad Organization
WPP Group Omnicom Group Interpublic Group of Cos. Dentsu Young & Rubicam

Headquarters
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 60 80 100 120

U.S Japan U.K . G erm any France B r a z il Au s tr a lia Canada S o u th K o r e a Ne th e r la n d s 9 .7 8 .8 5 .5 5 .4 5 .3 3 .7 2 0 .8 2 0 .3 3 5 .7

117

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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 50 100 150 200 250 300 350 400 450

U.S Japan U.K . G erm any France B r a z il Au s tr a lia Canada S o u th K o r e a Ne th e r la n d s 157 140 240 54 263 158 230 297 323

400

Copyright 2001 by Harcourt, Inc. All rights reserved.

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

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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

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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 urope

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
2020-9

Source: Adapted from http://www.forrester .com http://www.forrester.com

Household Penetration of Cable, Satellite, and Internet Top 10 Media Markets 1997
Country United States Japan Germany UK France Brazil So. Korea China Italy Mexico Cable Satellite Internet 66.9 22.9 59.9 7.0 7.0 4.3 14.0 25.8 N/A 7.5 4.1 22.9 20.7 15.0 8.0 5.2 N/A 25.8 3.4 1.5 21.3 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 products 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.
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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
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Measuring of Advertising Effectiveness

Typical

effectiveness-testing techniques

Pre-testing of copy appeal and brand recognition Post-testing of product or brand recognition Measuring campaigns impact on sales Sales increases and sales pattern changes Increases in consumer awareness and recall Intention to buy, coupon return

Measures

There

are no universally accepted parameters of measurement and analysis to compare one country audience to another.
2020-18

Copyright 2001 by Harcourt, Inc. All rights reserved.

 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) Intent
- Stepping Stone - Car Wash - Highly Rated

Misfires in Advertising

Translations

Translation
- 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

PRs 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

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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

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2020-21