Global Advertising Effectiveness

7/29/2019 Global Advertising Effectiveness

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The Global Advertising

and

Promotion Effort


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Copyright 2001 by Harcourt, Inc. All rights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1515

The Top 5 Global Ad AgenciesThe Top 5 Global Ad Agencies

Ad OrganizationAd Organization

HeadquartersHeadquarters

WPP GroupWPP Group LondonLondon

OmnicomOmnicom GroupGroup New YorkNew York

InterpublicInterpublic Group ofGroup ofCosCos.. New YorkNew York

DentsuDentsu JapanJapan

Young &Young & RubicamRubicam New YorkNew York


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Media AvailabilityMedia Availability

$300 billion spent on worldwide media in 1999!$300 billion spent on worldwide media in 1999!

1 17

35.7

20.8

20.3

9 .7

8 .8

5 .5

5 .4

5 .3

3 .7

0 20 4 0 6 0 80 10 0 12 0

U.S

Japan

U.K.

G e r m a ny

France

Braz i l

Australia

C a na da

South Korea

Netherlands

To tal Sp ending (bi llons), 1999

Source: Adapted from Top Global Ad Markets,Source: Adapted from Top Global Ad Markets,

Advertising Age InternationalAdvertising Age International, May, 1999, 35, May, 1999, 35--38.38.


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Media AvailabilityMedia Availability

400

297

323

230

158

54

263

157

140

240

0 50 100 15 0 2 00 25 0 30 0 35 0 40 0 45 0

U.S

Japan

U.K.

G e r m a n y

France

Brazi l

Australia

C anada

South Korea

Netherlands

Per Capita Spen ding ($), 1999

Source: Adapted from Top Global Ad Markets,Source: Adapted from Top Global Ad Markets,

Advertising Age InternationalAdvertising Age International, May, 1999, 35, May, 1999, 35--38.38.


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The Global Advertising & Promotion

I. Planning Promotional Expenditures

1) Determine the target audience

2) Develop specific campaign objectives

3) Setting the budget4) Choosing media strategy

a) Media availability

b) Product restrictions5) Determine the message

6) Determine campaign strategy

7) Measure advertising effectiveness


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Planning Promotional CampaignsPlanning Promotional Campaigns

Target AudienceTarget Audience

Promotional campaigns affect more thanPromotional campaigns affect more than

consumers who purchase the product or service.consumers who purchase the product or service.

Suppliers, intermediaries, government, local community,Suppliers, intermediaries, government, local community,

bankers and creditors, media organizations,bankers and creditors, media organizations,

shareholders, and employees.shareholders, and employees. Research to determineResearch to determine multimarketmultimarkettargettarget

audiences is required asaudiences is required as

firms become morefirms become more

internationally involved.internationally involved. Corporate image advertisingCorporate image advertising

Umbrella campaignsUmbrella campaigns

Global image campaignsGlobal image campaigns

Who are ourWho are our

customers?customers?


7/21Copyright 2001 by Harcourt, Inc. All rights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--1111

Audience CharacteristicsAudience Characteristics

Strategy is to reach the intended targetStrategy is to reach the intended targetaudience with the minimum of waste.audience with the minimum of waste.

Marketing strategist needs to knowMarketing strategist needs to know

Media distribution (number of copies)Media distribution (number of copies)

Media audienceMedia audience compostioncompostion Advertising exposureAdvertising exposure

Advertising perceptionAdvertising perception

Consumer responseConsumer response


8/21Copyright 2001 by Harcourt, Inc. All rights reserved.Copyright 2001 by Harcourt, Inc. All rights reserved. 2020--55

Campaign ObjectivesCampaign Objectives

Global objectivesGlobal objectives

General guidelines and control for broadGeneral guidelines and control for broad--basedbased

campaigns (consistency of message)campaigns (consistency of message)

Regional objectivesRegional objectives

Local objectivesLocal objectives Specific and measurable targetsSpecific and measurable targets

(awareness, image, market(awareness, image, market

share) for individual markets.share) for individual markets.


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Setting the Advertising Budget

Major Methods:

1) All You Can Afford Technique2) Percentage of Sales

3) Matching Competitors

4) Objective and Task


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Worldwide Media StrategyWorldwide Media Strategy

Challenges of country and regionalChallenges of country and regionaldifferencesdifferences

Cultural, ethnic, regulatory, demographicCultural, ethnic, regulatory, demographic

Responses to challengesResponses to challenges

Social responsibilitySocial responsibility(Cause(Cause--related marketing)related marketing)

Sound management systemsSound management systems

excellent communicationsexcellent communications


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Media Selection

Newspapers

Magazines

Radio & Television

Satellite and Cable Television

Direct Mail

Other Media


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Global MediaGlobal Media

Print publications providing global coveragePrint publications providing global coverage

with regional language and content editions.with regional language and content editions.

PanPan--regional radio and television, the Internetregional radio and television, the Internet

Important global media characteristicsImportant global media characteristics

TargetabilityTargetability

ClientClient--compatible editorialcompatible editorial

Editorial qualityEditorial quality

Who advertises in global media?Who advertises in global media?

Airline, financial services,Airline, financial services,

telecommunication, automobile,and tobaccotelecommunication, automobile,and tobacco

companiescompanies


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Internet Advertising Spending By RegionInternet Advertising Spending By Region

1 6 , 6 7 5

0 2 ,0 0 0 4 ,0 0 0 6 ,0 0 0 8 ,0 0 0 1 0 ,0 0 0 1 2 ,0 0 0 1 4 ,0 0 0 1 6 ,0 0 0 1 8 ,0 0 0

Nor th Ame r ica

E u r o p e

Asia-Pacif ic

Lat in Am er ica

T o tal

1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2

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


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Household Penetration of Cable, Satellite, and

Internet Top 10 Media Markets 1997

Co u n tr y Cab le Sat el l i t e In ter n et

UnitedStates

66.9 4.1 21.3

Japan 22.9 22.9 9.9

Germany 59.9 20.7 11.6UK 7.0 15.0 5.0France 7.0 8.0 1.7Brazil 4.3 5.2 0.003So. Korea 14.0 N/A 1.8China 25.8 25.8 N/AItaly N/A 3.4 1.9Mexico 7.5 1.5 0.06

SOURCE: Abstracted from: Top Global Advertising MarketAd AgeInternational, May 1997. p. 17.


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The Promotional MessageThe Promotional Message

Know customer habits and motivations: WhatKnow customer habits and motivations: What

are consumers really buying and why?are consumers really buying and why?

Factors in developing the message:Factors in developing the message:

Diffusion of the product or service into the market.Diffusion of the product or service into the market.

Criteria on which customers evaluate the product.Criteria on which customers evaluate the product. The products positioning.The products positioning.

The ideal is to have a world brand.The ideal is to have a world brand.

a product that is manufactured, packaged, anda product that is manufactured, packaged, and

positioned the same around the world.positioned the same around the world.

Localize international symbols with regional orLocalize international symbols with regional or

country area themes and personalities.country area themes and personalities.


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The Media Campaign ApproachThe Media Campaign Approach

What type of outside services to use?What type of outside services to use?

How to establish decisionHow to establish decision--making authority?making authority?

Outside services are chosen by their qualityOutside services are chosen by their qualityof coverage.of coverage.

The value of outside expertiseThe value of outside expertise Creative development skillsCreative development skills

Media buying savvyMedia buying savvy

Specialty marketing knowledgeSpecialty marketing knowledge

Conflict in the use ofConflict in the use ofmegamega--agenciesagencies

Conflicts of interest when two competitors areConflicts of interest when two competitors are

represented by the same agencyrepresented by the same agency


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Measuring of Advertising EffectivenessMeasuring of Advertising Effectiveness

Typical effectivenessTypical effectiveness--testing techniquestesting techniques

PrePre--testing of copy appeal and brand recognitiontesting of copy appeal and brand recognition

PostPost--testing of product or brand recognitiontesting of product or brand recognition

Measuring campaigns impact on salesMeasuring campaigns impact on sales

MeasuresMeasures Sales increases and sales pattern changesSales increases and sales pattern changes

Increases in consumer awareness and recallIncreases in consumer awareness and recall

Intention to buy, coupon returnIntention to buy, coupon return

There are no universally acceptedThere are no universally acceptedparameters of measurement and analysis toparameters of measurement and analysis tocompare one country audience to another.compare one country audience to another.


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Misfires in Advertising 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)

Translations

Intent Translation- Stepping Stone - Stumbling Block

- Car Wash - Car Enema

- Highly Rated - Over Rated

Symbols- Owl - Bad Luck in India

Other Countries make mistakes too

- Zit (Chocolate from Germany)- Koff (Beer)


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50% off50% offwithwith

CouponCoupon

Other Promotional ElementsOther Promotional Elements

Personal SellingPersonal Selling

Typically associated bigTypically associated big--ticket (highticket (high--priced) itemspriced) items

such as industrial goods.such as industrial goods.

Proper training is crucial to successProper training is crucial to success

Sales PromotionsSales Promotions CouponingCouponing, sampling premiums, education and, sampling premiums, education and

demonstration, pointdemonstration, point--ofof--purchase, direct mailpurchase, direct mail

The impact of promotions on intermediariesThe impact of promotions on intermediaries

must be carefully considered.must be carefully considered. Varying local regulations mayVarying local regulations may

prevent or limit the types andprevent or limit the types and

use of sales promotions.use of sales promotions.


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Public RelationsPublic Relations

Public Relations (PR) builds imagesPublic Relations (PR) builds images

PRs goal is understanding and acceptance.PRs goal is understanding and acceptance.

PR provides internal and external acceptancePR provides internal and external acceptancefor the organization.for the organization.

Internally, PR functions toInternally, PR functions to Provide Information through internalProvide Information through internal

publications (e.g.,newsletterspublications (e.g.,newsletters

and intranets)and intranets)

Help create the appropriateHelp create the appropriatecorporate culturecorporate culture


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Public Relations continuedPublic Relations continued

Externally, PR in multinational corporations isExternally, PR in multinational corporations is

concerned withconcerned with Building a global identity to build sales,productBuilding a global identity to build sales,product

and service differentiationand service differentiation

Providing information furtheringProviding information furthering

marketing objectivesmarketing objectives

Anticipating and countingAnticipating and counting

criticism of the organizationcriticism of the organization

Taking a lead role in crisisTaking a lead role in crisis

managementmanagement

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Global Advertising Effectiveness