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Belch: Advertising and
Promotion, Sixth Edition
VII. Special Topics and
Perspectives
20. International
Advertising and Promotion
more than 3 billion viewers in over 200 countries. Visa used the sponsorship to deliver
benefits to member banks, merchants, and cardholders. As part of its sponsorship, Visa
provided 10,000 tickets worldwide for cardholders to win when Visa cards were used
as part of merchant and company promotions.
Sponsorship of concert tours by popular performers has also become an important
part of many companies’ global marketing programs. For example, AOL sponsored
Madonna’s Drowned World Tour and used its sponsorship to run promotions in tour
cities to get consumers to sign up for its service. E Trade Financial sponsored the
North American leg of the Rolling Stones world tour in 2002–2003, which took the
legendary rock group to China and India for the first time.
Unlike advertising, which can be done on a global basis, sales promotions must be
adapted to local markets. Kamran Kashani and John Quelch noted several important
differences among countries that marketers must consider in developing a sales promotion
program. 98 They include the stage of economic development, market maturity,
consumer perceptions of promotional tools, trade structure, and legal restrictions and
regulations:
• Economic development. In highly developed countries such as the United States,
Canada, Japan, and Western European nations, marketers can choose from a wide
range of promotional tools. But in developing countries they must be careful not to
use promotional tools such as in- or on-package premiums that would increase the
price of the product beyond the reach of most consumers. Free samples and
demonstrations are widely used, effective promotional tools in developing countries.
But coupons, which are so popular with consumers in the United States, are rarely
used because of problems with distribution and resistance from retailers. In the United
States and Britain, most coupons are distributed through newspapers (including FSIs)
or magazines. Low literacy rates in some countries make print media an ineffective
coupon distribution method, so coupons are delivered door to door, handed out in
stores, or placed in or on packages. Figure 20-4 shows the total number of coupons
distributed and redeemed in various countries in 2001.
• Market maturity. Marketers must also consider the stage of market development for
their product or service in various countries when they design sales promotions. To
introduce a product to a country, consumer-oriented promotional tools such as
sampling, high-value coupons, and cross-promotions with established products and
brands are often effective. The competitive dynamics of a foreign market are also
239
billion
Number of Coupons Distributed and Redeemed in Various Countries (2001)
4
billion
6.1
billion
.57
billion
U.S. U.K. Canada Italy Spain
Source: NCH Marketing Services 2002 Trend Report.
2.7
billion
.12
billion
.490
billion
Coupons distributed
Coupons redeemed
.11
billion
.154
billion
.026
billion
© The McGraw−Hill
Companies, 2003
Figure 20-4 Number of
coupons distributed and
redeemed in various
countries, 2001
691
Chapter Twenty International Advertising and Promotion