The International Promotional Mix and Advertising Strategies

Chapter 11
THE INTERNATIONAL
PROMOTIONAL MIX AND
ADVERTISING STRATEGIES
ADVERTISING
Advertising
: Presentation and promotion of ideas, goods, or
services by an identified sponsor.
Other than business firms, museums, charitable
organizations, government agencies.
An effective way to disseminate messages.
FIVE MAJOR DECISIONS IN
ADVERTISING
 Advertising objectives: What are the advertising
objectives?
 Advertising budget: How much can be spent?
 Advertising message: What message should be sent?
 Media: What media should be used?
 Effectiveness: How should the results be evaluated?

ADVERTISING OBJECTIVES
ADVERTISING OBJECTIVES
 Informative advertising: Pioneering stage, to build
primary demand, yogurt: informing consumers of
yogurt’s nutritional benefits
 Persuasive advertising: competitive stage, to build
demand, Chivas Regal deliver more taste than other
brands of Scotch whiskey.
 Comparative advertising: explicit comparison among
brands. Burger king vs McDonald’s
 Reminder advertising: mature products, to remind people
to purchase
 Reinforcement advertising: to assure current purchasers
that they have made the right choice.
QUESTIONS
 Suppose the product class is mature, the company is the
market leader, brand usage is low.
 What should be the proper objective?
 Suppose the product class is new, the company is not
market leader, but the brand is superior to the leader.
 What should be the proper objective?
ADVERTISING BUDGET
FACTORS FOR ADVERTISING BUDGET
 Stage in the product life cycle:
 New products
 Established brands
 Market Share and Consumer base:

 High-market-sharebrands
 Low-market-share brands
 Competition and clutter:

 largenumber of competitors
 small number of competitors
 Advertising frequency:
 The number of repetitions
 Product substitutability:
 Brands in commodity class (cigarettes, beer, soft drinks)
ADVERTISING MESSAGE
ADVERTISING MESSAGE
 Four steps to develop a creative strategy
 Message generation
 Message evaluation and selection
 Message execution
 Social responsibility
Message generation
 Inductive approach:
 understanding consumers first
 Deductive approach:
a generalized perception about consumer categories and
expectation.
 Rational, sensory, social, ego satisfaction.
MESSAGE EVALUATION AND
SELECTION
 Evaluation of message based on
 Desirability
 Exclusiveness
 believability
MESSAGE EVALUATION AND
SELECTION
A fund raiser was searching for an advertising theme to
fight against birth defects.
 Theme one: “Seven hundred children are born each day
with a birth defect”.
 Score: Interst-70; distinctiveness-62; believability-80
 Theme two: “Your next baby could be born with a birth
defect”
 Score: Interest-58; distinctiveness-51; believability-70
MESSAGE EXECUTION
 Rational positioning (direct)
 Emotional positioning (indirect)
MESSAGE EXECUTION
 Style
 Tone
 Words
 Format
STYLE
 Slice of life
 Lifestyle
 Fantasy
 Mood or image
 Musical
 Personality symbol
 Technical expertise
 Scientific evidence
 testimonial
TONE
 Humorous
 Superlatively positive
WORDS
Theme Creative copy
Let us drive you in our bus Take the bus, and leave the
instead of driving your car driving to us
Shop by choosing the Let your fingers do the

product from internet walking
Red Roof Inns offer Sleep Cheap at Red Roof
inexpensive lodging Inns
Six basic types of headlines
 News
 (New Boom and More Inflation Ahead)
 Question
 (Have You Had It Lately?)
 Narrative
 (They Laughed When I Sat Down at the Piano, but Then I Started to
Play!)
 Command
 (Don’t Buy Until You Try All Three)
 1-2-3 ways
 (12 Ways to Save on Your Income Tax)
 How-What-Why
 (Why They Can’t Stop Buying)
FORMAT
 Size
 Color
 Illustration
FORMAT
Ad Characteristics for better recall and

recognition
 Innovation (new product or new uses)
 Story appeal ( as an attention-getting device)
 Before-and-after illustration
 Demonstrations
 Problem solution
 Inclusion of relevant characters

SOCIAL RESPONSIBILITY REVIEW
 Conforming with laws and regulations
 Avoid false or deceptive advertising
 Avoid false demonstration
 Avoid bait-and-switch advertising
 Not to offend ethnic groups, racial minorities, or special-

interest groups
MEDIA
STEPS IN CHOOSING MEDIA
 Deciding on desired reach, frequency, and impact
 Choosing among major media types
 Deciding on media timing

REACH, FREQUENCY, AND IMPACT
 Media selection involves finding the most cost-effective
media to deliver the desired number of exposures to the
target audience.
 E.g. : Ad Objective: a certain level of product trial
 Depends on: level of audience brand awareness
 Q: How many exposures are required to produce the desired
level of brand awareness?
REACH, FREQUENCY, AND IMPACT
 Reach: The number of different persons or households
exposed to a particular media schedule at least once
during a specified time period
 Frequency: The number of times within the specified
time period that an average person or household is
exposed to the message.
 Impact: the qualitative value of an exposure through a
given medium (thus a food ad in Good Housekeeping
would have a higher impact than in the Police Gazette)
QUESTIONS!!
 Which is more important in the following situations?
 launching new products
 strong competitors
 infrequently purchased new brands
 a complex story to tell
REACH AND FREQUENCY
 Reach: reach is more important when launching new
products, flanker brands, extensions of well-known
brands, or infrequently purchased new brands, or going
after an undefined target market.
 Frequency: frequency is most important where there are
strong competitors, a complex story to tell, high
consumer resistance, or a frequent-purchase cycle.
CHOOSING AMONG MAJOR
MEDIA TYPES
PROFILES OF MAJOR MEDIA TYPES
Medium Advantages Limitations
timeliness; good local market coverage;

Newspapers poor reproduction quality
broad acceptability;
Good mass market coverage; combines High absolute costs; high clutter;
Television sight, sound, and motion; appealing to the fleeting exposure; less audience
senses selectivity
High audience selectivity; no ad
Relatively high cost per exposure;
Direct mail competition within the same medium;
“junk mail” image
allows personalization
Good local acceptance; high geographic Audio only, fleeting exposure; low
Radio
and demographic selectivity; low cost attention
High and demographic selectivity;

Long ad purchase lead time; high
Magazines credibility and prestige; high-quality
cost
reproduction
high repeat exposure; low cost; low Little audience selectivity, creative
Outdoor
message competition limitations
Online low cost relatively low impact

DECIDING ON MEDIA TIMING
 Macro scheduling problem: the macro scheduling
problem involves scheduling the advertising in relation
to seasons and the business cycle.
 Seasonal ad vs. constant ad
 Micro scheduling problem: calls for allocating
advertising expenditures within a short period to obtain
maximum impact.
 Concentrated
 Continuous
 Intermittent
EFFECTIVENESS
WAYS TO MEASURE EFFECTIVENESS
Direct rating method
 Attention: How well does the ad catch the reader’s
attention?
 Read-through: How well does the ad lead the leader to
read further?
 Cognitive: how clear is the central message of benefit?
 Affective: How effective is the particular appeal?
 Behavior: how well does the ad suggest follow-through

action?
Portfolio tests
 Ask consumers to view or listen to a portfolio of ads,
taking as much time as they need.
 Consumers are then asked to recall all the ads and their
content, aided or unaided by the interviewer.
 Recall level indicates an ad’s ability to stand out and to
have its message understood and remembered.
Laboratory tests
 Laboratory tests use equipment to measure physiological
reactions – heartbeat, blood pressure, pupil dilation,
perspiration – to an ad
 These tests measure attention-getting power but reveal
nothing about impact on beliefs, attitudes, or intentions.
A SUMMARY OF CURRENT RESEARCH
 Advertising is unlikely to create brand loyalty. Product
features, displays, and price may have greater impact on
creating brand loyalty.
 People are more likely to believe a TV or radio ad and to
become more positively disposed toward the brand when
the ad is placed within a program they like.
 Consumers may sometimes respond more to negative
messages than to positive messages.
 Benefits of using credit card vs. disadvantages of not using
credit card.
ADVERTISING FOR
INTERNATIONAL MARKETS
FACTORS TO BE CONSIDERED
 There are no local television stations in sub-Saharan
Africa.
 Many sub-Saharan African countries have very few TV
stations which are government-owned that have heavy
restrictions on Ads.
 Many Asians and Latin Americans cannot afford satellite
dishes.
 Ads in many Islamic countries do not permit portrayal of
women.
 In India, the same Ad should be translated into many
local languages.
 Product placement (placing brands in movies) was
illegal in many EU countries
 In EU, the Ads that persuade children to buy products are
not permitted
 In EU, the Ads that shows minors in dangerous situations
are not permitted
 In France, the Ads that use children as endorsers are not
permitted
 In EU, Ads of tobacco products and prescription drugs
are prohibited
 In France, Ads cannot use English terms
 Information should be visual and demonstration based
rather than written where audience literacy rate is low
 Comparative advertising is not permitted in many
countries
 Ads of a luxurious lifestyle may have negative
impressions in poor economic nations
 Audience may have a hostile attitude towards the
countries of Ads

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Chapter 11

 Advertising message: What message should be sent?

 Media: What media should be used?

 Effectiveness: How should the results be evaluated?

 Market Share and Consumer base:

 Competition and clutter:

Shop by choosing the Let your fingers do the

Ad Characteristics for better recall and

 Inclusion of relevant characters

 Avoid false demonstration

 Avoid bait-and-switch advertising

 Not to offend ethnic groups, racial minorities, or special-

 Deciding on media timing

timeliness; good local market coverage;

High and demographic selectivity;

Online low cost relatively low impact

 Affective: How effective is the particular appeal?

 Behavior: how well does the ad suggest follow-through

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