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Promotion

Presented By:

Abbas Ali

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Promotion

The process of stimulating demand for acompanys goods and services

MNEs promote their goods and servicesthrough advertising and personal selling.

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Nature of the product

Areas OfConsideration:

Message ( Same OrAdapted)

Product ( Same OrModified)

Four variations 1.Identical product

and identicalmessage

E.g. A.T. CROSS

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Four Variations

2. Identical productbut differentmessage

E.g. Cars

3. Modified productbut same messageE.g. Washingmachines

4. Modified product

and modifiedmessageE.g. Kelloggs

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Advertising

Advertising is Paid, NonpersonalCommunication From An Identified Sponsor

Using Mass Media to Persuade or Influencean Audience, Or, Paid, Nonpersonal form bywhich a firm attempts to persuade

consumers of a particular point of view.

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Provide Product&

BrandInformation

Provide Product&

BrandInformation

ProvideIncentives

To Take Action

ProvideIncentives

To Take Action

ProvideReminders andReinforcement

ProvideReminders andReinforcement

AdvertisingPerforms 3 Basic

Functions

AdvertisingPerforms 3 Basic

Functions

Functions ofAdvertising

Source: Wells, Burnett and Moriarty Sandra. Advertising Principles AndPractice". 5th Edition.

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1. The way in which the product is used isdifferent from that in the home country.

2. The advertising message does not makesense if translated directly.

e.g NIKE JUST DO IT

Reasons Why AdvertisingMust Be Adapted To The

Local Market

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Universal appeal ofBrands

Marlboros Cowboy Image Fido Dido 7Up (Pepsi Co.)

http://en.wikipedia.org/wiki/Fido_Dido

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Possible AdvertisingObjectives

Informative Advertising. DVD players, Image quality & Convenience

benefits.

Yogurt, Nutritional benefits.

Reminder Advertising.

Coca Cola, Pepsi.

Persuasive Advertising. Sony- Best Brand

Chivas Regal- Best Scotch Whiskey

Comparative Advertising. McDonald's & Burger King

Avis & Hertz

Source: Philip Kotler. Marketing Management. Millennium Edition.

Source: Philip Kotler, Gary Armstrong. Principles Of Marketing. Eleventh Edition.

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Media Used By MNEs

Television

Radio

Newspaper

Also Billboards, Point-of-Purchase displays,transit advertising,brouchers, flooradvertising, tradeshows etc.

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Restrictions:

What cant be presented. Comparative

advertising.

Certain productsnot to beadvertised todiscourage usage.

Islamic Countries-Erotic messages.

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PERSONAL SELLING

A direct form of promotionused to persuade customers

to a particular point of view.

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PERSONAL SELLING

Commonly used in:

Industrial products.

Personal care

Products-Avon. Pharmaceuticals-

Upjohn.

Electronic equipment-General Electric,

Westinghouse.

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Telemarketing

Telemarketing in US.

IBM, Ford Motor, DigitalEquipment etc

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International Advertising

International advertising entails dissemination ofa commercial message to target audiences in

more than one country.

International Advertising as a Business PracticeInternational advertising can be viewed as abusiness activity through which a firm attemptsto inform target audiences in multiple countriesabout itself and its product or service offerings.

http://pages.stern.nyu.edu/~sdouglas/rpubs/intad.html

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