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Promotion Decisions
Introduction
• The primary purpose of marketing
  communications is to tell customers abut
  the benefits and values that a company,
  product, or service offers
• Integrated marketing communications
  (IMC) is becoming more popular because
  of the challenges of communicating across
  national borders
Global Advertising
• Advertising is any sponsored, paid message that
  is communicated in a nonpersonal way
  – Single country
  – Regional
  – Global
• Global advertising is the use of the same
  advertising appeals, messages, art, copy,
  photographs, stories, and video segments in
  multiple country markets
Standardization versus Adaptation

• Primary question
  – Must the specific advertising message
    and media strategy be changed from
    region to region or country to country?
Standardization versus
         Adaptation
• Four difficulties that compromise an
  organization’s communication efforts
  – The message may not get through to the intended
    recipient.
  – The message may reach the target audience
    but may not be understood or may even be
    misunderstood.
  – The message may reach the target audience and
    may be understood but still may not induce the
    recipient to take the action desired by the sender.
  – The effectiveness of the message can be impaired
    by noise.
Pattern Advertising
• A middle ground between 100%
  standardization and 100% adaptation
• A basic pan-regional or global
  communication concept for which copy,
  artwork, or other elements can be adapted
  as required for individual countries
Pattern Advertising
Similar
•Include layout
•Dominant visuals on left
•Brand signature and slogan




                              Contrasting
                              •Photos
                              •Body copy is localized, not
                              simply translated
Standardization versus Adaptation
Eighteen-year olds in Paris have more in
common with 18-year-olds in New York than
with their own parents. They buy the same
products, go to the same movies, listen to the
same music, sip the same colas. Global
advertising merely works on that premise.
     —William Roedy, Director, MTV Europe
Advertising Agencies:
      Organizations and Brands
• Understanding the term organization is key
  – Umbrella corporations/holding companies have one
    or more core advertising agencies
  – Each organization has units specializing in direct
    marketing, marketing services, public relations, or
    research
• Individual agencies are considered brands
  – Full-service brands create advertising and provide
    services such as market research, media buying, and
    direct marketing
Selecting an Advertising Agency
• Company organization
  – Companies that are decentralized may want to leave
    the choice to the local subsidiary
• National responsiveness
  – Is the global agency familiar with local culture and
    buying habits of a particular country?
• Area coverage
  – Does the agency cover all relevant markets?
• Buyer perception
  – What kind of brand awareness does the company
    want to project?
Creating Global Advertising
•   Creative strategy—a statement or concept
    of what a particular message or campaign
    will say
•   Big idea—“The flash of insight that synthesizes
    the purpose of the strategy, joins the product
    benefit with consumer desire in a fresh,
    involving way, brings the subject to life, and
    makes the reader or audience stop, look, and
    listen.”
                  —John O’Toole, legendary ad man
Advertising Appeal
• Rational approach
  – Depend on logic and speak to the consumer’s
    intellect; based on the consumer’s need for
    information
• Emotional approach
  – Tugs at the heartstrings or uses humor
Advertising Appeal
• Selling proposition
  – The promise or claim that captures the reason
    for buying the product or the benefit that
    ownership confers
• Creative execution
  – The way an appeal or proposition is
    presented—straight sell, scientific evidence,
    demonstration, comparison, slice of life,
    animation, fantasy, dramatization
Art Directors and Art Direction
• Art directors
   – Advertising professional who has the general
     responsibility for the overall look of an ad
   – Will choose graphics, pictures, type styles, and other
     visual elements that appear in an ad
• Art direction
   – The visional presentation of an advertisement
Copy and Copywriters
• Copy is written or spoken communication
  elements
• Copywriters are language specialists who
  develop headlines, subheads, and body
  copy
Advertising Copy Mistakes
• In Asia, Pepsi’s ―Come Alive‖ was interpreted
  as asking to bring ancestors back from the
  dead.
• In China, Citicorp’s ―Citi Never Sleeps‖ was
  taken to mean that Citi had a sleeping
  disorder, like insomnia.
• McDonald’s does not use multiple 4’s in
  advertising prices in China; four sounds like
  the word death.
Cultural Considerations
• Images of male/female intimacy are in bad taste
  in Japan; illegal in Saudi Arabia
• Wedding rings are worn on the right hand in
  Spain, Denmark, Holland, Germany
• European men kiss the hands of married women
  only, not single women
• In Germany, France, and Japan, a man enters a
  door before a woman; no ladies first!
Cultural Considerations—
      Japanese and American
•
                  Differences of expression are
    Indirect rather than direct forms
    preferred in the messages
•   There is often little relationship between ad content
    and the advertised product
•   Only brief dialogue or narration is used in television
    commercials, with minimal explanatory content
•   Humor is used to create a bond of mutual feelings
•   Famous celebrities appear as close acquaintances or
    everyday people
•   Priority is placed on company trust rather than
    product quality
•   The product name is impressed on the viewer with
    short, 15-second commercials
Cultural Considerations
Global Media Decisions
• Prepare new copy for foreign markets in
  host country’s language
• Translate the original copy into target
  language
• Leave some or all copy elements in home-
  country language
Global Advertising Expenditures
     and Media Vehicles
• More money spent in United States than
  anywhere else in the world; $143 billion in 2005
• Japan is number two at $50 billion
• Worldwide, TV is the number-one medium with
  estimated spending of $176 billion in 2008; TV
  spending increased 78% between 1990 and
  2000 in the European Union
Media Decisions—Saudi Arabia
• Use of comparative advertising claims is
  prohibited
• Non-censored films cannot be advertised
• Women may appear only in those commercials
  that relate to family affairs, and their appearance
  must be in a decent manner that ensures
  feminine dignity
• Women must wear a long suitable dress that
  fully covers her body except face and palms
Public Relations and Publicity
• Fosters goodwill and understanding
• Generates favorable publicity
• Tools
   –   News releases
   –   Media kits
   –   Press conferences
   –   Tours
   –   Articles in trade and professional journals
   –   TV and radio talk show appearances
   –   Special events
Advertising as a PR Function
• Corporate advertising
  – Compensates for lack of control over publicity
  – Calls attention to the company’s other communication
    efforts
• Image advertising
  – Enhances the public’s perception, creates goodwill
• Advocacy advertising
  – Presents the company’s point of view on a particular
    issue
The Growing Role of Public
    Relations in Global Marketing
• Public Relations expenditures are growing at an
  average of 20% per year
• In India, they are reported to be growing by
  200% annually
• Reasons for the growth
  – Increased governmental relations between countries
  – Technology
  – Societal issues like the environment
Public Relations Practices Around
             the World
• Public relations practices can be affected
  by
  – Cultural traditions
  – Social and political contexts
  – Economic environments
• Public relations professionals must
  understand these differences and tailor the
  message appropriately
Looking Ahead to Chapter 14
• Global marketing decisions: sales promotion,
  personal selling, special forms of marketing
  communication
Case study

   UCB
UNITED COLORS
        OF BENETTON
―If everyone likes a campaign, no one
will talk about it.‖
                    Luciano Benetton
ADVERTISING:
                        The cons point of view
• Exploitation of negative social issues to
  increase the company’s notoriety &
  profit

• Religious feelings infringement & racism
  promotion

• No consideration of cultural sensibilities
  nor historical context of targeted
  countries

• Need for competitors to imitate the style
  of the campaign
ADVERTISING:
                   The cons point of view
• Negative impact on consumer’s decision buying
  process

• Aversion to advertising from the audience

• Legal actions

• Benetton as a martyr to censorship
ADVERTISING:
                       The pros point of view
• Memorability / Brand recognition

• Innovation in communication

• Production of images of global concern for global customers

• Socially responsible business

• No provocation but awareness
ADVERTISING:
                      The pros point of view
• Differentiation from misleading campaign

• Challenge stereotypes

• Cost effectiveness

• Awards winning and exposure in galleries around the world

• Exploitation of clothing to raise social issues
UNITED COLORS OF BENETTON
         FRANCHISING
• ―Benetton has often been quoted as an example
  of a company which has been able to grow
  extensively and rapidly with minimal financial
  commitment in retail outlets because the
  individual franchisees have been responsible for
  their own financing‖
                  (Bruce, 1987; Dunkin, 1988; Dapiran,1992)
UNETHICAL POINTS

• Exclusive distribution
• Demand of a certain threshold of sales volume
• Pre-labellisation of products
• No take back of unsold / defective items
• Minimum amount of orders
• Heavy control (layout, music, light…)
• Negative impact of the campaigns
ADVANTAGES FOR THE FRANCHISEE

• Ease of brand identification
• Neither fee nor royalty paid
• A four-year payout
• Selection of desired clothes
IMPLICATIONS FOR THE INTERNATIONAL
            MARKETING MANAGER
IMPACT ON THE MARKETING MIX

  PRODUCT
• Advertising known more than the product
• Need strong quality to fight negative impact

   PRICE
• Imposed prices
• Curb in prices

  PEOPLE
• Boycott / complaints
IMPLICATIONS FOR THE
INTERNATIONAL MARKETING MANAGER

      PROMOTION
• Controversial advertising campaigns

• Refusal of printing Benetton’s ads

• Banishment of the ads in several countries

• Absence of the product

     PACKAGING
• Benetton bags printed only with faces
IMPLICATIONS FOR THE INTERNATIONAL
            MARKETING MANAGER

   PARTNERS
• Loss of sales for franchisees

• Legal action


    PLACE
• Less availability of products due to the closing of shops/franchises

• No shocking images in the stores
IMPACT OF THE KEY STAKEHOLDERS



• Customers : Boycott

• Suppliers: resentment to offensive ads

• Shareholders: End of collaboration Toscani-Benetton

• Retailers: Legal actions
USE AND ROLE OF INTERMEDIARIES


• Manipulation of the franchising law

• Rapid market development at relatively low price

• Cannabilization

• Exclusive distribution
A conceptual framework: The
         Questions asked
• What drives the market for responsible corporate
  behaviour
• What creates public demand for greater
  corporate responsibility
• Why does globalization heighten anxiety about
  corporate responsibility
• What are the barriers to increasing responsible
  corporate behaviour
• What forces can add to the supply of corporate
  responsibility
Corporate Responsibility
• Instrumental: explicitly serve the purpose
  of enhancing shareholder value
• Intrinsic: a course of action is undertaken
  simply because ―it’s the right thing to do‖,
  whether or not it serves shareholder
  interests
The Virtue Matrix
               Frontier: Intrinsic




 Strategic                           Structural
May become                   Clearly contrary to
instrumental                shareholder interests



 Choice                              Compliance


   Norms, customs, laws, regulations

   Civil Foundation: Instrumental

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Promotion decisions session 12

  • 2. Introduction • The primary purpose of marketing communications is to tell customers abut the benefits and values that a company, product, or service offers • Integrated marketing communications (IMC) is becoming more popular because of the challenges of communicating across national borders
  • 3. Global Advertising • Advertising is any sponsored, paid message that is communicated in a nonpersonal way – Single country – Regional – Global • Global advertising is the use of the same advertising appeals, messages, art, copy, photographs, stories, and video segments in multiple country markets
  • 4. Standardization versus Adaptation • Primary question – Must the specific advertising message and media strategy be changed from region to region or country to country?
  • 5. Standardization versus Adaptation • Four difficulties that compromise an organization’s communication efforts – The message may not get through to the intended recipient. – The message may reach the target audience but may not be understood or may even be misunderstood. – The message may reach the target audience and may be understood but still may not induce the recipient to take the action desired by the sender. – The effectiveness of the message can be impaired by noise.
  • 6. Pattern Advertising • A middle ground between 100% standardization and 100% adaptation • A basic pan-regional or global communication concept for which copy, artwork, or other elements can be adapted as required for individual countries
  • 7. Pattern Advertising Similar •Include layout •Dominant visuals on left •Brand signature and slogan Contrasting •Photos •Body copy is localized, not simply translated
  • 8. Standardization versus Adaptation Eighteen-year olds in Paris have more in common with 18-year-olds in New York than with their own parents. They buy the same products, go to the same movies, listen to the same music, sip the same colas. Global advertising merely works on that premise. —William Roedy, Director, MTV Europe
  • 9. Advertising Agencies: Organizations and Brands • Understanding the term organization is key – Umbrella corporations/holding companies have one or more core advertising agencies – Each organization has units specializing in direct marketing, marketing services, public relations, or research • Individual agencies are considered brands – Full-service brands create advertising and provide services such as market research, media buying, and direct marketing
  • 10. Selecting an Advertising Agency • Company organization – Companies that are decentralized may want to leave the choice to the local subsidiary • National responsiveness – Is the global agency familiar with local culture and buying habits of a particular country? • Area coverage – Does the agency cover all relevant markets? • Buyer perception – What kind of brand awareness does the company want to project?
  • 11. Creating Global Advertising • Creative strategy—a statement or concept of what a particular message or campaign will say • Big idea—“The flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen.” —John O’Toole, legendary ad man
  • 12. Advertising Appeal • Rational approach – Depend on logic and speak to the consumer’s intellect; based on the consumer’s need for information • Emotional approach – Tugs at the heartstrings or uses humor
  • 13. Advertising Appeal • Selling proposition – The promise or claim that captures the reason for buying the product or the benefit that ownership confers • Creative execution – The way an appeal or proposition is presented—straight sell, scientific evidence, demonstration, comparison, slice of life, animation, fantasy, dramatization
  • 14. Art Directors and Art Direction • Art directors – Advertising professional who has the general responsibility for the overall look of an ad – Will choose graphics, pictures, type styles, and other visual elements that appear in an ad • Art direction – The visional presentation of an advertisement
  • 15. Copy and Copywriters • Copy is written or spoken communication elements • Copywriters are language specialists who develop headlines, subheads, and body copy
  • 16. Advertising Copy Mistakes • In Asia, Pepsi’s ―Come Alive‖ was interpreted as asking to bring ancestors back from the dead. • In China, Citicorp’s ―Citi Never Sleeps‖ was taken to mean that Citi had a sleeping disorder, like insomnia. • McDonald’s does not use multiple 4’s in advertising prices in China; four sounds like the word death.
  • 17. Cultural Considerations • Images of male/female intimacy are in bad taste in Japan; illegal in Saudi Arabia • Wedding rings are worn on the right hand in Spain, Denmark, Holland, Germany • European men kiss the hands of married women only, not single women • In Germany, France, and Japan, a man enters a door before a woman; no ladies first!
  • 18. Cultural Considerations— Japanese and American • Differences of expression are Indirect rather than direct forms preferred in the messages • There is often little relationship between ad content and the advertised product • Only brief dialogue or narration is used in television commercials, with minimal explanatory content • Humor is used to create a bond of mutual feelings • Famous celebrities appear as close acquaintances or everyday people • Priority is placed on company trust rather than product quality • The product name is impressed on the viewer with short, 15-second commercials
  • 20. Global Media Decisions • Prepare new copy for foreign markets in host country’s language • Translate the original copy into target language • Leave some or all copy elements in home- country language
  • 21. Global Advertising Expenditures and Media Vehicles • More money spent in United States than anywhere else in the world; $143 billion in 2005 • Japan is number two at $50 billion • Worldwide, TV is the number-one medium with estimated spending of $176 billion in 2008; TV spending increased 78% between 1990 and 2000 in the European Union
  • 22. Media Decisions—Saudi Arabia • Use of comparative advertising claims is prohibited • Non-censored films cannot be advertised • Women may appear only in those commercials that relate to family affairs, and their appearance must be in a decent manner that ensures feminine dignity • Women must wear a long suitable dress that fully covers her body except face and palms
  • 23. Public Relations and Publicity • Fosters goodwill and understanding • Generates favorable publicity • Tools – News releases – Media kits – Press conferences – Tours – Articles in trade and professional journals – TV and radio talk show appearances – Special events
  • 24. Advertising as a PR Function • Corporate advertising – Compensates for lack of control over publicity – Calls attention to the company’s other communication efforts • Image advertising – Enhances the public’s perception, creates goodwill • Advocacy advertising – Presents the company’s point of view on a particular issue
  • 25. The Growing Role of Public Relations in Global Marketing • Public Relations expenditures are growing at an average of 20% per year • In India, they are reported to be growing by 200% annually • Reasons for the growth – Increased governmental relations between countries – Technology – Societal issues like the environment
  • 26. Public Relations Practices Around the World • Public relations practices can be affected by – Cultural traditions – Social and political contexts – Economic environments • Public relations professionals must understand these differences and tailor the message appropriately
  • 27. Looking Ahead to Chapter 14 • Global marketing decisions: sales promotion, personal selling, special forms of marketing communication
  • 28. Case study UCB
  • 29. UNITED COLORS OF BENETTON ―If everyone likes a campaign, no one will talk about it.‖ Luciano Benetton
  • 30. ADVERTISING: The cons point of view • Exploitation of negative social issues to increase the company’s notoriety & profit • Religious feelings infringement & racism promotion • No consideration of cultural sensibilities nor historical context of targeted countries • Need for competitors to imitate the style of the campaign
  • 31. ADVERTISING: The cons point of view • Negative impact on consumer’s decision buying process • Aversion to advertising from the audience • Legal actions • Benetton as a martyr to censorship
  • 32. ADVERTISING: The pros point of view • Memorability / Brand recognition • Innovation in communication • Production of images of global concern for global customers • Socially responsible business • No provocation but awareness
  • 33. ADVERTISING: The pros point of view • Differentiation from misleading campaign • Challenge stereotypes • Cost effectiveness • Awards winning and exposure in galleries around the world • Exploitation of clothing to raise social issues
  • 34. UNITED COLORS OF BENETTON FRANCHISING • ―Benetton has often been quoted as an example of a company which has been able to grow extensively and rapidly with minimal financial commitment in retail outlets because the individual franchisees have been responsible for their own financing‖ (Bruce, 1987; Dunkin, 1988; Dapiran,1992)
  • 35. UNETHICAL POINTS • Exclusive distribution • Demand of a certain threshold of sales volume • Pre-labellisation of products • No take back of unsold / defective items • Minimum amount of orders • Heavy control (layout, music, light…) • Negative impact of the campaigns
  • 36. ADVANTAGES FOR THE FRANCHISEE • Ease of brand identification • Neither fee nor royalty paid • A four-year payout • Selection of desired clothes
  • 37. IMPLICATIONS FOR THE INTERNATIONAL MARKETING MANAGER IMPACT ON THE MARKETING MIX PRODUCT • Advertising known more than the product • Need strong quality to fight negative impact PRICE • Imposed prices • Curb in prices PEOPLE • Boycott / complaints
  • 38. IMPLICATIONS FOR THE INTERNATIONAL MARKETING MANAGER PROMOTION • Controversial advertising campaigns • Refusal of printing Benetton’s ads • Banishment of the ads in several countries • Absence of the product PACKAGING • Benetton bags printed only with faces
  • 39. IMPLICATIONS FOR THE INTERNATIONAL MARKETING MANAGER PARTNERS • Loss of sales for franchisees • Legal action PLACE • Less availability of products due to the closing of shops/franchises • No shocking images in the stores
  • 40. IMPACT OF THE KEY STAKEHOLDERS • Customers : Boycott • Suppliers: resentment to offensive ads • Shareholders: End of collaboration Toscani-Benetton • Retailers: Legal actions
  • 41. USE AND ROLE OF INTERMEDIARIES • Manipulation of the franchising law • Rapid market development at relatively low price • Cannabilization • Exclusive distribution
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  • 50. A conceptual framework: The Questions asked • What drives the market for responsible corporate behaviour • What creates public demand for greater corporate responsibility • Why does globalization heighten anxiety about corporate responsibility • What are the barriers to increasing responsible corporate behaviour • What forces can add to the supply of corporate responsibility
  • 51. Corporate Responsibility • Instrumental: explicitly serve the purpose of enhancing shareholder value • Intrinsic: a course of action is undertaken simply because ―it’s the right thing to do‖, whether or not it serves shareholder interests
  • 52. The Virtue Matrix Frontier: Intrinsic Strategic Structural May become Clearly contrary to instrumental shareholder interests Choice Compliance Norms, customs, laws, regulations Civil Foundation: Instrumental