International Marketing Campaigns & Online Marketing

International Marketing Campaigns & Online Marketing Opportunities Marketing in English Ing. Lukas Gottwald [email protected]

Overview What is a „marketing campaign“? Designing a marketing campaign Marketing strategy vs. marketing campaign Components of a marketing campaign Internationalizing a marketing campaign: Total Gym Main considerations In-class task Overview of Online Promotional Tools Opportunities internet brings to global campaign management and design Audience Research Campaign Design Campaign Execution 2

What is a „marketing campaign“ Action plan of coordinated marketing activities Typically [Price, Place, Product, Promotion], Typically „promotional“ (4Ps) „communication“ (4Cs) [Cost, Convenience, Customer Value, Communication] In this lecture for clarity & simplicity: Marketing campaign Marketing communication campaign Even though campaign may possibly include pricing & distribution elements i.e. iPhone 3

What is a marketing campaign 3 levels: Strategic, Operational, Tactical Marketing Strategy The main concept within all marketing functions Marketing Communication Strategy The main idea driving communication with customers & shaping the brand image, derived from the marketing strategy Simply said: How do you want your brand to be perceived by your customers Example: „McD is a fun place to eat, all the kids have to know it Marketing Campaign Plan of concerete „conversations“ within specified time-frame for a specified audience in a specified media Putting communication strategy into life! From „This is what we want to do“ to „This is how we want to do it“ 4

What is a marketing campaign Defined plan of targeted promotional activities Clear Message (Message!) Set of planned activities (Promotional Tools) Within specified time-frame (Timing) For a precisely selected audience (Audience) And in specified communication channels (Media) Note: connection Audience and Region Note: connection audience-media Including goals & campaign metrics (Goals & Results) For a defined amount of money (Budget) Millitary analogy War – Front – Battle Strategic – Operational - Tactical 5

What is a marketing campaign A Basic Example: Total Gym Message: Total gym does work Call to action Tools: Teleshopping style ads on TV Timing: during Walker Texas Rangers series, 3x week January 2010 till April 2010, 4 months Audience: Chuck Norris fans in North America Media: FOX, CBS, NBC Goals and Results: 600 000 leads & 400 000 units sold in given period Budget: 10 mil. USD, 25 USD per predicted unit sold live: http://www.youtube.com/watch?v fzE0FOPiaDU 6

What is a marketing campaign A Basic Internationalization Example: Selling Total Gym in Italy Message: Total gym works for all atheletes Tools: Teleshopping style ads on TV Timing: during Teleshopping session in the afternoon January 2010 till April 2010, 4 months Audience: Coach potatoes feeling guilty watching TV in the afternoon Media: Rai Uno Goals and Results: 60 000 units sold in given period Budget: 1 mil. EUR, 16,7 EUR per predicted unit sold live: http://www.youtube.com/watch?v AppSsTpfFR4 7

Sidenote Internationalization Issues & Considerations Culture Political and legal factors Traget country's level of economic development Mode of involvement in foreign markets 8

E-commerce Defintion „Refers to commercial transactions occurring over open networks, such as the Internet. Both business-to-business and business-to-consumer transactions are included.“worldbank.org Definition 2.: „Electronic Commerce, commonly known as (electronic marketing) e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.“ wikipedia.org 9

E-commerce Characteristics Custumer has to own a „gadget“ connected to a network in order to participate in e-commerce (i.e. PC) Merchant has to have a space within the network (i.e. domain name and website) Customer obtains information about the product electronically Customer confirms his decision to purchase the product electronically (i.e. filling in a form on a website) Payment can be made online Credit Cards, Paypal, PaySec(Czech), SMS payments Distibution Electronic - Online ( i.e. songs, books, software, services) Physical - Offline ( necessary for physical goods) 10

E-commerce Benefits Lower transaction cost Merchant side Customer side Time needed to get info and compare prices, communication Global market Store, inventory, staff, communication Outsource services globaly Take advatage of price diffreneces, exchange rates etc Marketing Whole AIDA payment distribution in one moment Both B2B and B2C in one channel example: www.hp.com 11

E-commerce Riscs & Drawbacks Security Issues Virtual relationship No face-to-face interaction – may contribute to the trust problem Technology & Equipment Fraud, both on Merchant and Customer sides Direct proportion between Internet expansion and E-commerce growth Consumer behaviour more „item specific“ According to Stuchlik, Dvoracek (2002) customers engage mostly in „targeted shopping“ not in „leisure shopping“ in the online environment 12

Designing a marketing campaign Synchronizing Marketing communication strategy with desired goals and available resources Strategic & Creative & Practical Optimizing the afformentioned interdependent elements: Message Note: connection Message & Media Promotional Tools Timing Audience Media Note: connection Audience & Media Goals & Results Note: connection Audience & Region Note: Metrics have to be defined! Budget Note: Budget limits Promotional tools available 13

Designing a marketing campaign Individual in-class task Design a Total Gym campaign for your country Brief Outline is sufficient Be ready to present and reveal your strategy choices (why) not only campaign variables (how) 14

Designing a marketing campaign Discussion: Promoting Total Gym Online 15

Designing a marketing campaign Promoting Total Gym Online Options Direct Mail Website Search engines Ads Forums / Groups Magazines Videos See „How to use Total Gym“ on You Tube: http://www.youtube.com/watch?v ah gS-v1jzg Viral Campaigns Internet Radio, Internet TV 16

Opportunities internet brings to international marketing campaign design & management Advantages: Architecture! Global network with national sub-networks, i.e. domains Country targeting is easy! Technology Language recognition, location recognition Real-time adjustments Script recognizes your location and will generate relevant promotional coupon usuable at a store in your town localization of services: Google Global audience in a single medium Market Research Testers „playground“ Global campaign management on one platform i.e. Google AdWords 17

Opportunities internet brings to international marketing campaign design & management Advantages: SME Friendly Physical distance less critical The size of the company is not discriminating Even SMEs can market goods globally online Generally cheaper to run an international campaign online than offline Means opportunities especially for services companies Online campaigns are measurable and comparable Offline campaigns as well, but in online environment it is cheaper to get the data: Benchmarking and Assessing Markets Real-time campaign data – Monitoring Quality feedback allows prompt action in case something goes wrong 18

Opportunities internet brings to international marketing campaign design & management Disadvantages Lower Credibility internet environment perceived more risky Global, but in some countries only marginal part of population actually has internet Tendency to cut paste Just because USA and UK share the language doesnt mean the same campaign will work 19

Opportunities internet brings to international marketing campaign design & management Summary Convenience: Design and manage a global (but possibly localy adjusted) campaign on one platform and get realtime feedback Testing opportunities: before an expensive product launch on a foreign market, test drive the product in that particular country online Low-cost: No need to higher a media planning agency in every country Userbase: World-wide still growing 20

Thank you! Questions? Ask now! Or later [email protected] 21

References 4 Cs concept http://www.sales-and-marketing-for-you.com/define -marketing-mix.html Strategic, Operational, Tactical Management http://www.adb.org/Documents/Events/2004/Risk-Management/Strategic-Op erational-Tactical-Approach.pdf 5 steps to successful marketing Campaigns, Boston Business Journal, 2003 http://boston.bizjournals.com/boston/stories/2003/09/01/smallb2.html Current Issues in International Marketing http://www.pwsbijo.pl/files/Pliki/Konferencja/Current%20Issues%20in %20International%20Marketing%20Management.pdf Wikipedia http://en.wikipedia.org/wiki/Marketing#International marketing The internet and international marketing: Is there a fit? http://www3.interscience.wiley.com/journal/40006687/abstract? CRETRY 1&SRETRY 0 The Internet and International Marketing http://sloanreview.mit.edu/themagazine/articles/1996/spring/3735/the-internet-and-international-marketing/ 22