Advertising

Module 2
Syllabus
Advertising objectives and budgeting (numerical on budgeting),
DAGMAR approach, various budgeting methods used, Support media in
advertising. Measurement in advertising. Co-operative advertising, Role
of advertising agency in advertisement planning, Advertisement
planning: An international perspective
Advertising Planning
• The essence of planning is thus to find out what the feasible
alternatives are and reduce them to a set on which decisions can be
made. Decision making involves choosing from among the
alternatives
• Advertising planning stands on three legs:
• Objective setting and target market identification
• Message strategy & tactics
• Media strategy & tactics
Setting Objectives
Objectives serve several functions in modern management.

• One function is to operate as communication and coordination devices. They

provide a vehicle by which the client, the agency account executive, and the
creative team communicate.

• A second function of objectives is to provide a criterion for decision making.

If two alternative campaigns are generated, one must be selected.

• A related function of an objective is to evaluate results. This function implies

that there needs to be a measure such as market share or brand awareness
associated with the objective.
Objectives of Advertising
1. Sales as an objective: A convenient and enticing advertising objective involves a construct like immediate
sales or market share.
2. New customers from other categories: Attract people from other segment, those not now using the
product class.
Example: Pepsi might conclude that it is easier to get young coffee drinkers to switch from coffee to Pepsi for their morning
drink, than it is to get Coke drinkers to switch to Pepsi.
3. Increasing share of requirements (SOR): In many product categories, customers have more than one
preferred brand, and they allocate their total category requirements over these few brands based, in part,
on temporary price discounts, habits, and so on.
4. Increasing brand loyalty, reducing attrition and price elasticity.
5. Increasing usage.
6. Behavioral or action objectives: If the advertising’s target is new customers, the goal may be to get new
customers to try a brand for the first time.
7. Brand Building
8. Increasing Sales
9. Creating Demand
10. Engagement
11. Expanding Customer Base
12. Changing Customers’ attitudes, etc.
Advertising Budget
The affordable method—as the title says, this is to budget what you can afford. The method is inferior because it
doesn’t take into account what the marketer is trying to accomplish with the money allocated. In lean times, owners
of small businesses might be tempted to say to themselves, “I can’t afford to do ANY advertising this year” that may
contribute to business failure.

The percentage of sales method—the marketer chooses a number, say, 5 percent of sales (expected or past-period)
and decides that is going to be how much money should be spent. A criticism of the method is that in tough sales
years, money for advertising and other promotions falls, when they should probably be raised. The logic of this
choice is that it is easy to understand and easy to implement.

The competitive parity method—the marketer tries to emulate, on a proportional scale, the promotional spending of
the competition. The main logic associated with this choice is that it somehow may reflect a collective wisdom in the
industry. The negative on this method is that no two companies have the exact same resources, opportunities,
resources, or objectives, so spending proportional amounts of money on promotional efforts make little sense.

The objective and task method—the marketers decides what she or he wants to accomplish and then works the
budget out based on what it will cost to create and implement the communications needed to make that happen.
The logic is obvious, and this is the best way of going about setting a promotional budget.
DAGMAR Approach
• DAGMAR is an advertising model proposed
by Russell Colley in 1961. Russell Colley
advocated that effective advertising seeks
to communicate rather than to sell.
• DAGMAR is a marketing expression that
stands for “Defining Advertising Goals for
Measured Advertising Results”. It is a
marketing tool to compute the results of
an advertising campaign.
• According to this approach, every purchase
encounters four steps; Awareness,
Comprehension, Conviction, and Action.
DAGMAR method is an established
technique of creating effective advertising
The DAGMAR Model /
communication process

• From unawareness to awareness -

consumer must be aware of
product or company,
• Comprehension - what the product
is and its benefits,
• Conviction - mental conviction to
buy the product, and
• Action - finally buy the product.
• Awareness: Before the purchase behaviour is expected from target audience it is
necessary to make the audience aware with the product or company.
• Comprehension: This step involves the target audience to learn something
about product, organisation, or offer. Here communication task of advertising
activity is to make consumer learn about product - product characteristics,
benefits, or uses.
• Attitude or Conviction: At this step communication task of advertising activity is
to mould the audience’s beliefs about the product and this is often done
through messages that demonstrate the product’s superiority over a rival or by
talking about the rewards as a result of using the product.
• Action: Finally, communication must encourage buyer to engage in purchase
activity.
Advantages of DAGMAR Approach
OBJECTIVES OF DAGMAR
APPROACH
• Persuade a prospect to visit the showroom.
• Growth in market share.
• Improve sales turnover.
• Perform complete selling function.
• Advertise a special reason to buy.
• Stimulate impulse sales.
• Remind people to buy.
• Create awareness about the product and brand existence.
• Create favourable emotional disposition towards the product.
• Impart information regarding benefits and distinctive features of the product.
• Combat and offset competitive claims.
• Correct false impressions, wrong information and other hindrances to sales.
• Aid sales force with sales promotion and selling activities and boost their morale.
• Establish brand recognition and acceptance.
The Role of Support Media

To
To reach
reach those
those people
people in
in the
the target
target
audience
audience that
that primary
primary media
media (TV,(TV,
print,
print, etc.)
etc.) may
may not
not have
have effectively
effectively
reached
reached and
and to
to reinforce,
reinforce, oror support,
support,
their
their messages.
messages.
Support Media

Support
Supportmedia
mediaare
arealso
alsoreferred
referredto
to
as:
as:

Alternative
AlternativeMedia
Media Nonmeasured
NonmeasuredMedia
Media Nontraditional
NontraditionalMedia
Media
Examples of Traditional Support Media

Billboards
Billboards Promotional
PromotionalProducts
Products

Kiosks
Kiosks Yellow
YellowPages
Pages

Posters
Posters Wall
WallMurals
Murals
Out-of-Home Advertising Media
Outdoor Advertising Goes 3-D
Characteristics of Outdoor Advertising

Can
Can reach
reach aa variety
variety of
of audiences
audiences
Reach
Reach very
very quickly
quickly

Potential
Potential for
for high
high frequency
frequency of
of
Frequency
Frequency impressions
impressions

Many
Many options
options available
available to
to reach
reach specific
specific
Flexibility
Flexibility groups
groups

Low
Low cost
cost per
per exposure,
exposure, depending
depending on
on
Cost
Cost medium
medium used
used

Size,
Size, shape,
shape, lighting,
lighting, and
and motion
motion can
can lead
lead
Impact
Impact to
to impact
impact
Alternative Out-of-Home Media

Aerial
AerialAdvertising
Advertising

Sky
SkyBanner
Banner Blimp
Blimp Sky
SkyWriting
Writing

Mobile
MobileBillboards
Billboards

Trucks
Trucks Vans
Vans Trailers
Trailers

In-Store
In-StoreMedia
Media

Signs
Signs Video
Video Kiosks
Kiosks
Blimps Carry Messages High and Wide
Mobile Billboards
Trucks Become Billboards on Wheels
In-Store Media
The FBI Uses Outdoor to Recruit
Miscellaneous Outdoor Media Include Car Tops
Posters Gain Attention in Terminals
Pros of Outdoor Advertising

Wide
Wide local
local coverage
coverage Creation
Creation of
of awareness
awareness

High
High frequency
frequency Efficiency
Efficiency

Geographic
Geographic flexibility
flexibility Sales
Sales effectiveness
effectiveness

Creativity
Creativity Production
Production capability
capability

Timeliness
Timeliness
Cons of Outdoor Advertising

Waste
Wastecoverage
coverage High
Highcost
cost
Limited
Limitedmessage
messagecapability
capability Measurement
Measurementproblems
problems
Wearout
Wearout Image
Imageproblems
problems
Promotional Products Marketing

The
The advertising
advertising or
or promotional
promotional medium
medium
or
or method
method that
that uses
uses promotional
promotional
products,
products, such
such asas ad
ad specialties,
specialties,
premiums,
premiums, business
business gifts,
gifts, awards,
awards, prizes,
prizes,
or
or commemoratives.
commemoratives.
Promotional Products Marketing

1. Wearable items 2. Writing instruments

3. Calendars 4. Desk accessories
5. Bags 6. Drinkware
Pros and Cons of Promotional Products

Advantages Disadvantages
Selectivity
Selectivity Poor
Poor image
image

Flexibility
Flexibility Saturation
Saturation

Frequency
Frequency Lead
Lead Time
Time
Economy
Economy

Goodwill
Goodwill

High
High recall
recall

Augmentation
Augmentation
Advertising in Movie Theaters

Advantages Disadvantages

High
HighExposure
Exposure Irritation
Irritation

Audience
AudienceMood
Mood Cost
Cost(Maybe)
(Maybe)

Cost
Cost(Maybe)
(Maybe)

Good
GoodRecall
Recall

Lack
Lackof
ofClutter
Clutter

Proximity
Proximity

Segmentation
Segmentation
In-Flight Advertising

Magazines
Magazines Catalogs
Catalogs

Radio
Radio Videos
Videos
In-Flight Advertising

Advantages Disadvantages

AADesirable
DesirableAudience
Audience High
HighPotential
Potentialfor
forIrritation
Irritation

AACaptured
CapturedAudience
Audience Limited
LimitedAvailability
Availabilityof
ofMedium
Medium

Low
LowRelative
RelativeCost
Cost Lack
Lackof
ofAudience
AudienceAttention
Attention

Segmentation
SegmentationPossibilities
Possibilities Potential
Potentialfor
forRapid
RapidWearout
Wearout
Miscellaneous Other Media

Parking
Parkinglot
lotads
ads

Videogame
Videogameads
ads Bathroom
Bathroomads
ads

Others
Others Place-based
Place-basedmedia
media
Measuring the Advertisement
• Advertising effectiveness pertains to how well a company's
advertising accomplishes the intended.
• Advertisement directly affects the sales volume and hence they
evaluate the effectiveness of the advertising campaign by the increase
in the sales volume.
• These measurements can be used for all types of advertising,
including television, radio, direct mail, Internet and even billboard
advertising.
 Pros and Cons of Measuring Effectiveness

Advantages Disadvantages
Avoid
Avoidcostly
costly mistakes
mistakes Cost
Costof
ofmeasurement
measurement
Example:
Example:IsIs ititworth
worth it?
it? Example:
Example:What
Whatififititwill
willfail
failto
tomeasure
measure

Evaluate
Evaluatealternative
alternativestrategies
strategies Disagreement
Disagreementon on what
whattototest
test
Example:
Example:Advertising
Advertisingor
orsponsorship?
sponsorship? Example:
Example: may
may differ
differbybyindustry,
industry,byby stage
stageof
ofthe
theproduct
product
life
lifecycle,
cycle,or
oreven
evenforfordifferent
differentpeople
people
Increase
Increaseefficiency
efficiency in
in general
general
Example:
Example:Get
Getaabigger
biggerPicture
Picture Objections
Objectionsof
ofcreatives
creatives
Example:
Example:Ad
Adcreators
creatorsdon’t
don’twant
wantititto
tobe
betested
tested(ego)
(ego)
Determine
Determineififobjectives
objectivesare
areachieved
achieved
Time
Time
Example:
Example:Lack
Lackof
oftime
time
 Measuring Advertising Effectiveness

What
What to
to test
test Where
Where to
to test
test
•• Source •• Laboratory
Laboratory tests
tests
Source factors
factors
•• Message •• Field
Field tests
tests
Message variables
variables
•• Media
Media strategies
strategies
•• Budget
Budget decisions
decisions

How
How to
to test
test When
When to
to test
test
•• Testing
Testing guidelines
guidelines •• Pretesting
Pretesting
•• Appropriate
Appropriate tests
tests •• Posttesting
Posttesting
 What To Test- Source Factors
1. Source Factors An important
question is whether the
spokesperson being used is effective
and how the target market will
respond to him or her
• Example: Tiger Woods in Nike is a
successful source
• Example: For example, Britney
Spears had been an effective
spokesperson for Pepsi, particularly
with the teen market. The question
was, Will she be able to retain this
relationship as she gets older?
What To Test- Message Variables
• Is the Message strong enough??
• Sometimes the message is
memorable but doesn’t achieve
the other goals set by
management
• A number of factors regarding the
message and its delivery may have
an impact on its effectiveness,
including the headline,
illustrations, text, and layout.
• Example: a wrong message by
dettol
What To Test- Media Strategies
• Media decisions need to be
evaluated. Research may be
designed to determine which
media class, subclass, or specific
vehicles generate the most
effective results
• for example, broadcast versus
print; newspaper versus
magazines; which newspapers or
magazines
What To Test- Budgeting Decisions
• Budgeting Decisions A number of studies have examined the
effects of budget size on advertising effectiveness and the effects
of various ad expenditures on sales
When to Test
• Virtually all test measures can be classified according to when they
are conducted.
• Pretests are measures taken before the campaign is implemented

• Posttests occur after the ad or commercial has been in the field

When to Test- Pretest
• Pretesting Pretests may occur at a number of points, from as early on
as idea generation to rough execution to testing the final version
before implementing it.
• More than one type of pretest may be used
 Pretesting Methods

Laboratory Field
Consumer Juries Dummy Ad Vehicles

Portfolio Tests (Multiple ad portfolios) On-air Tests

Physiological Measures : Pupil dilation
etc
Theater Tests : for TV commercial

Rough Tests: For the unfinished ad

Concept Tests

Readability Tests: communication efficiency

Comprehension and Reaction
Tests
When to Test- Posttest
• Posttesting is also common among both advertisers and ad agencies
• Posttesting is designed to

• (1) determine if the campaign is accomplishing the objectives sought and

• (2) serve as input into the next period’s situation analysis

Posttesting Methods

Recall
Recall Tests
Tests

Association
Association
Tracking
Tracking Studies
Studies Measures
Measures

Methods
Methods

Recognition
Recognition
Tests Single-Source
Single-Source Systems
Systems ::
Tests
tracking
tracking consumer
consumer from
from
tv
tv set
set to
to supermarket
supermarket
Inquiry
Inquiry Tests
Tests checkout
checkout counter
counter
Where to Test
• In addition to when to test, decisions must be made as to where.
These tests may take place in either laboratory or field settings.
1. Laboratory Tests In laboratory tests, people are brought to a
particular location where they are shown ads and/or commercials
• For example, pupil dilation, eye tracking, or galvanic skin response.
Where to test
2. Field Tests Field tests are tests of the ad or commercial under natural
viewing situations, complete with the realism of noise, distractions, and
the comforts of home.
• Field tests take into account the effects of repetition, program
content, and even the presence of competitive messages
How to Test- The testing process
• Testing may occur at various points throughout the development of
an ad or a campaign:
• (1) concept generation research
• (2) rough, prefinished art, copy, and/or commercial testing
• (3) finished art or commercial pretesting
• (4) market testing of ads or commercials (posttesting).
 Test Points

1.Concept
1.Concept Testing
Testing

2.Rough
2.Rough Testing
Testing
Occurs
Occurs at
at Various
Various
Stages
Stages 3.Finished
3.Finished art
art or
or
commercial
commercial pretesting
pretesting

4.Market
4.Market testing
testing
(posttesting)
(posttesting)
1. Concept testing
• Concept testing, which is • Positioning statements, copy,
conducted very early in the headlines, and/or illustrations
campaign development process may all be under scrutiny.
in order to explore the targeted
consumer’s response to a
potential ad or campaign or have
the consumer evaluate
advertising alternatives.
Concept Testing

Objective Explores consumers’ responses to ad concepts expressed

Objective in words, pictures, or symbols

Alternatives are exposed to consumers who match the

target audience

Method
Method Reactions & evaluations sought through focus groups,
direct questioning, surveys, etc.

Sample sizes depend on the number of concepts and the

consensus of responses

Output Qualitative and/or quantitative data evaluating and

Output comparing alternative concepts
 2. Rough Art, Copy, and Commercial Testing

Comprehension and Reaction Tests

Consumer Juries

Advantages Disadvantages
Consumer may become a self-
Control
appointed expert
Number of ads that can be
Cost effectiveness evaluated is limited
Endorsements by independent A halo effect is possible
third parties
Preference for ad types
Achievement of credibility may overshadow objectivity
Example of the questions askes to
consumer juries
• 1. Which of these ads would you most likely read if you saw it in a
magazine?
• 2. Which of these headlines would interest you the most in reading
the ad further?
• 3. Which ad convinces you most of the quality or superiority of the
product?
• 4. Which layout do you think would be most effective in causing you
to buy?
• 5. Which ad did you like best?
• 6. Which ad did you find most interesting?
3. Pretesting of Finished Ads
• Pretesting finished ads is one of the more commonly employed
studies among marketing researchers and their agencies.
• At this stage, a finished advertisement or commercial is used; since it
has not been presented to the market, changes can still be made.
4. Market Testing of Ads
• The fact that the ad and/or campaign has been implemented does
not mean there is no longer a need for testing.
• The pretests were conducted on smaller samples and may in some
instances have questionable merit, so the marketer must find out how
the ad is doing in the field
• Posttest are done for Market testing
Physiological Measures

Galvanic
Galvanic skin
skin
Pupil
Pupil dilation
dilation response
response

Testing
Testing

Brain
Brain waves
waves Eye
Eye tracking
tracking
Market Testing Print Ads

Inquiry
Inquiry Tests
Tests Recognition
Recognition Tests
Tests

Testing
Testing

Tracking
Tracking Studies
Studies Recall
Recall Tests
Tests
Posttests of Broadcast Commercials
Persuasive measures:
has the advertisement
Day after recall generated the need?
tests

Diagnostics: how
Tracking studies clearly they have
Testing understood

Single-source Comprehensive
tracking measures: weather
the main msg is
Test marketing understood
Measuring Effectiveness of Other Programs

Sales
Sales
promotions
promotions
Shopping
Shopping cart
cart signage
signage

Ski
Ski resort-based
resort-based media
media
Non-traditional
Non-traditional
media
media In-store
In-store radio
radio and
and television
television

Other
Other media
media

Exposure
Exposure methods
methods
Sponsor-ships
Sponsor-ships
Tracking
Tracking measures
measures
Cooperative
advertising
Module 2
• Cooperative advertising is advertising where a retailer or a
wholesaler share the costs of an advertising campaign with the
manufacturer of the product being advertised. Manufacturers often
will set up an annual fund to use for cooperative advertising when the
opportunity arises.
• Cooperative advertising can involve a broad range of advertising.
Some examples include television and radio ads, flyers, catalogs, trade
magazine ads, direct mail campaigns, CD-ROMs, trade show booth
materials, and promotional gifts.
Types of cooperative advertising
• 1. Horizontal cooperative advertising is advertising sponsored in common by a group
of retailers or other organizations providing products or services to the market.
• For example, automobile dealers who are located near one another in an auto park or along
the same street often allocate some of their ad budgets to a cooperative advertising fund.
• 2. Ingredient-sponsored cooperative advertising is supported by raw materials
manufacturers; its objective is to help establish end products that include the
company’s materials and/or ingredients
• example of this type of cooperative advertising is the “Intel Inside” program, sponsored by Intel
Corporation
• 3. Vertical cooperative advertising, in which a manufacturer pays for a portion of the
advertising a retailer runs to promote the manufacturer’s product and its availability
in the retailer’s place of business. Manufacturers generally share the cost of
advertising run by the retailer on a percentage basis (usually 50/50) up to a certain
limit
• Example: The light boards and fridges sent by coca cola to local retailers
BENEFITS OF COOPERATIVE
ADVERTISING
• The biggest benefit of cooperative advertising for small business owners, of course, is that
such arrangements can dramatically cut advertising costs.
• Another benefit that sometimes results from such agreements is valuable creative and media-
buying guidance.
• cooperative advertising can lend an air of legitimacy to small business enterprises. Small
companies that are able to link their name with that of a nationally recognized product or
service should work hard to maintain such ties, particularly if the product or service in
question already has strong user loyalty.
• Cooperative advertising also benefits manufacturers and service providers. Enlisting small
business allies diminishes the cost of advertising for these larger companies, especially if they
encourage cooperative advertising arrangements in several communities.

For example, a designer brand of clothing may benefit from cooperative advertising with an exclusive
neighborhood boutique: the personality of the shop itself will reflect positively on the product.
DRAWBACKS TO COOPERATIVE
ADVERTISING
• The small business owner must be careful that he or she completely
understands the commitment involved when seeking a cooperative
advertising agreement.
• Many manufacturers demand a certain style of advertising, or a high level
of quality that may be difficult for a struggling business to achieve.
• There may be hidden requirements which must be met, or limits on the
kind of advertising which can be funded by manufacturers' dollars.
• The specific demands involved in an advertising cooperation will vary
widely between manufacturers; business consultants recommend that
small business owners consult an attorney before signing any such
agreements.
Role of advertising
agency in
advertisement
planning
Role of Advertising Agencies
• Creating an advertise on the basis of information gathered about
product
• Doing research on the company and the product and reactions of the
customers.
• Planning for type of media to be used, when and where to be used,
and for how much time to be used.
• Taking the feedbacks from the clients as well as the customers and
then deciding the further line of action
Major Functions of Advertising
Agency
1- Attracting client: Advertising agency needs clients (advertisers). Without them, it
cannot survive.
2- Account Management: Within an advertising agency the account manager or account
executive is tasked with handling all major decisions related to a specific client. The
account manager works closely with the client to develop an advertising strategy.
3- Creative Team
The principle role of account managers is to manage the overall advertising
campaign for a client, which often includes delegating selective tasks to specialists.
• Advertising agency put the advertising-plan into action under its creative function. Creation of
ads is the most important function of an ad agency. Generally, it involves activities like:
• Copy writing, Drawing photographs, Making illustrations, layouts, an effective ad message, etc.
• These jobs are done by experts like copy writers, artists, designers, etc. These people are highly
skilled and creative. They make an advertisement more appealing. Attractive ads help to
increase the sales of the product.
4- Researchers
Full-service advertising agencies employ market researchers who
assess a client’s market situation, including understanding customers
and competitors, and also are used to test creative ideas.
• Advertising agency gathers information related to the client's product. It
collects following information about a product under its research function:
• Features, quality, advantages and limitations of a product, Present and future
market possibilities, Competition in the market, Situation in the market,
Distribution methods, Buyers' preferences, so on
• Ad agency analyses (studies) all this collected information properly and draws
conclusions for its research. It helps in planning an advertising campaign,
selecting proper media and creation function.
5- Media Planners
Advertising agency helps an advertiser to select a proper media (ad platform) to
promote his advertisement effectively.
• Media selection is a highly specialized function of an ad agency. It must select the most
suitable media for its client's ad.
• Advertising agency plans the entire ad campaign of its client. Advertising planning is a
primary function of an ad agency. It is done when its research function is completed. That
is, after analyzing the client's product, its competitors, market conditions, etc. It is done
by experts who use their professional experience to make a result-oriented advertising-
plan.
• Once an advertisement is created, it must be placed through an appropriate advertising
media.
• Each advertising media, of which there are thousands, has its own unique methods for
accepting advertisements, such as different advertising cost structures (i.e., what it costs
marketers to place an ad), different requirements for accepting ad designs (e.g., size of
ad), different ways placements can be purchased (e.g., direct contact with media or
through third-party seller), and different time schedules (i.e., when ad will be run).
Understanding the nuances of different media is the role of a media planner, who looks
for the best media match for a client and also negotiates the best deals.
• 6- Advertising budget: Advertising agency helps an advertiser to prepare his ad
budget. It helps him to use his budget economically and make the best use of it.
Without a proper advertising budget, there is a risk of client's funds getting wasted
or lost.
• 7- Coordination: Advertising agency brings a good coordination between the
advertiser, itself, media and distributors.
• 8- Sales promotion: Advertising agency performs sales promotion. It helps an
advertiser to introduce sales promotion measures for the dealers and consumers.
This helps to increase the sales of the product.
• 9- Public relations: Advertising agency does the public relations (PR) work for its
clients. It increases the goodwill between its clients and other parties like
consumers, employees, middlemen, shareholders, etc. It also maintains good
relations between the client and media owner.
• 10- Non-advertising functions: Advertising agency also performs many non-
advertising functions: It fixes the prices of the product, It determines the discounts,
It designs the product, It also designs its package, trademarks, labels, etc.
Advertisement planning: An
international perspective.
Reasons for International Importance

Stagnation
Stagnationof
ofdomestic
domestic markets
markets

Company
Company survival,
survival,particularly
particularlythose
thosewith
withsmall
smalldomestic
domestic markets
markets

Growth
Growthand
andprofit
profitopportunities
opportunities

Economic
Economic necessity
necessity
Example:Tourism Australia Uses Global Campaign
The International Environment

Economic
Economic Cultural
Cultural
Environment
Environment Environment
Environment

International
International
Marketing
Marketing
&&
Promotional
Promotional
Decisions
Decisions

Demographic
Demographic Political/Legal
Political/Legal
Environment
Environment Environment
Environment
International Environment
International Economic Environment

Economic
Economic environment
environment
•• Stage
Stage of
of economic
economic development
development
•• Economic
Economic infrastructure
infrastructure
•• Standard
Standard ofof living
living
•• Per
Per capita
capita income
income
•• Distribution
Distribution ofof wealth
wealth
•• Currency
Currency stability
stability
•• Exchange
Exchange rates
rates

International
International Marketing
Marketing
And
And Promotional
Promotional Decisions
Decisions
International Demographic Environment

International
International Marketing
Marketing
And
And Promotional
Promotional Decisions
Decisions

Demographic
Demographic environment
environment
•• Size
Size of
of population
population
•• Number
Number of of households
households
•• Household
Household size
size
•• Age
Age distribution
distribution
•• Occupation
Occupation distribution
distribution
•• Education
Education levels
levels
•• Employment
Employment rate rate
•• Income
Income levels
levels
International Cultural Environment

Cultural
Cultural environment
environment
•• Language
Language
•• Lifestyles
Lifestyles
•• Values
Values
•• Norms
Norms and
and customs
customs
•• Ethics
Ethics and
and moral
moral standards
standards
•• Taboos
Taboos

International
International Marketing
Marketing
And
And Promotional
Promotional Decisions
Decisions
International Political/Legal Environment

International
International Marketing
Marketing
And
And Promotional
Promotional Decisions
Decisions

Political/legal
Political/legal environment
environment
•• Government
Government policies
policies
•• Laws
Laws and
and regulations
regulations
•• Political
Political stability
stability
•• Nationalism
Nationalism
•• Attitudes
Attitudes toward
toward multinational
multinational
companies
companies
Global Marketer’s Dilemma

Offer the Adapt the

same product,
product, marketing,
marketing, and
and advertising
advertising to each
everywhere society?
?
Decision Areas in International Advertising

Organization
OrganizationStyle
Style

Coordination
Coordinationof
ofOther
Other Agency
AgencySelection
Selection
IMC
IMCTools
Tools

Decision
Decision Areas
Areas

Media
MediaStrategy
Strategyand
and Advertising
AdvertisingResearch
Research
Selection
Selection

Creative
CreativeStrategy
Strategy&&
Execution
Execution