International Promotion

Two essential ingredients of promotion:

• Know your customer– Know who you are talking to

• Know your product– Know what you are talking about

Product features product benefits

Promotional Mix – more than advertising alone• Sales Promotion – trade shows, sponsorships,

merchandising• Personal Selling• Advertising• Publicity & Events

How to get started…

• Directories

• Internet

• Trade shows & missions

Directories• U.S. Government publications

Sample page: Commercial News USA

Internet• Commercial internet directories

Internet

Direct

Marketing

Internet

Exporting

Trade Shows & Expositions• A common meeting ground for buyers and sellers of products specific to a particular industry.

Can range from very local (Portland Boat Show) to national (National Marine Manufacturer’s Association) to international (Sydney International Boat Show).

What is a trade show?• Trade exhibition or fair• Product info & display

booths• 1,000 exhibitors avg.• Participants: vendors,

buyers, promoters• Usually restricted to

legitimate buyers, sellers & press

To participate (costs):

• space rental

• booth/display

• travel & accommodation

• pamphlets & giveaways

Trade Shows & Expositions

A sample of international shows

IMM – International Furniture Fair

Cologne, Germany 125,000 attendees

Tokyo Game Show Tokyo, Japan 160,000 attendees

CES, Consumer Electronics Show

Las Vegas, USA 120,000 attendees

Why trade shows?

• Collect information: market & competition• Contact government officials• Find an intermediary• Cultivate contacts

• Product demonstrations • Reach lots of prospects in a short time

frame

How to get started…• Set goals• Make a list of shows• Screen for the best shows• Exhibiting

– Booth– Exhibitor paperwork– Booth staffing & training– Lead tracking– Follow-up

Some on-line trade show directories

• http://tsnn.com

• Tscentral.com

• ExpoCentral.com

• FITA.org tsnn.com

Identifies trade shows by category, country, region.

Provides access to virtual trade shows.

Virtual trade shows

Advertising

• Message-related (e.g., creative) issues

• Media-related issues

Advertising: Creative Issues

• Legal issues - e.g., Malaysian prohibitions on alcohol & tobacco promotions

• Language issues - translations, multiple languages; e.g., Malaysia Bahasa Malaysia, English, Mandarin, Tamil

• Cultural issues - products not always used in the same way; cake in Japan/U.K., laundry soap in Mexico. Different approaches to advertising creativity (“mood” vs. “benefits)

http://www.agencyfaqs.com/advertising/storyboard/Idea/1954.html

Cultural Differences between U.S. & Japanese Advertising

Japanese Advertising• Unspoken agreement• Interested in who is

speaking• Product stays behind

the scene • Suggestion & verbal

subtlety

US Advertising• Get facts straight• Interested in what is

spoken• Product is “star”

• Clear expression

Advertising: Media Issues

• Availability & restrictions

• Cost

• Coverage & media use differences

• Market Data

Traditional Media Alternatives

Newspapers*

Magazines*

Radio & Television

Satellite and Cable Television*

Direct Mail

* Including Foreign editions of U.S. Publications & broadcasts:

CNN Japan

BW Poland Vogue Russia

Cost & coverage comparisons

Business Week:

North America• Circulation = 987,369• 1 p 4C = $103,320• CPM = $104.64

Business Week

Indonesia• Circ = 25,000 (est)• 1 p 4C = $3,630• CPM = $145.20

Mass media is not available in other countries like it is in the U.S.

Print media in global markets (2000)

Top news-paper Circ.

Rate:1 p b/w

Topmagazine Circ.

Rate:1 pcolor

USA Wall StreetJournal

1.9mil

$154,814$81 cpm

ModernMaturity

20.6mil

$266,490$13 cpm

Germany Bild 4.23mil

$227,592$53 cpm

TV Movie 2.59mil

$43,909$17 cpm

Brazil Folha de SioPaulo

0.6mil

$117,812$196 cpm

Veja 1.12mil

$43,282$39 cpm

Rates are in U.S. DollarsSource: Ad Age Dataplace

www.adage.com

Media: Limited market data

Coverage issues in IndiaWSJ partners with the Times of India• Pro: hi tech readers eager to read how its is

done in the U.S• Con: most IT professionals work for foreign

(not Indian) companies

Other:• 40% of India’s GDP is agricultural; these

people don’t speak English• Regional ag publications provide better

coverage than national.

Source: Media companies push into Asia. BtoB, Feb. 9, 2004.

Media restrictions in CanadaCanadian Radio-Television & Telecommunications

Commission (CRTC)

Rules on programming content:

Radio: 30% of all music per week = Canadian

TV: 60% Canadian over year

50% Canadian evening (6 pm - midnight)

Problem:

Canadian content TV brings in fewer viewers

(less advertising revenue)

Global Advertising Markets by Percentage Spending in Advertising Media (est. 2000)

United States

Germany

Brazil

Source: Ad Age Dataplace

www.adage.com

Media habits differ by country…

Tech Penetration (2000)

Internet PC Mobile phones

U.S.A. 37% 52% 33%

Germany 25.2 23.6 15.3

Brazil 3.2 6.5 n/a

Source: Ad Age Dataplace

www.adage.com

Advertising Agencies• Completely local• Company-owned (“do-it-yourself”)• Multinational (1999):

– Dentsu Inc. (Japan) - Canon (24), Nestle (7), Sony (8)

– McCann-Erickson (U.S.) - Black & Decker (26), Del Monte (5), Gillette (48), Coca-Cola (49)

– Publicis/Saatchi & Saatchi (Paris/U.K.) - VISA (29), Sony (24), P&G (46), Hewlett-Packard (37)

(# of countries) Source: adageglobal.com

Summary• For exports, Personal selling & trade

shows usually more important than advertising

• A large number of government & private sources exist to help exporters get going

• Advertising presents country-to-country challenges in terms of creative (i.e., message) and media issues