Electronic Commerce /e-Business in Japan
Product Pricing in Japan's marketplace
2008/01/15 17:56 | by 
Trade Promotion and Advertising in Japan
Because many U.S. products fit a cultural or industrial environment that may not exist in Japan, educating the Japanese consumer about a product's purpose, use, features, and quality might be necessary. However, not all companies can afford to place advertisements in Japan's major national daily newspapers or commercials on Japanese television. Regional and local newspapers and television stations and daily sports newspapers are less expensive and might make sense for a product with strong potential in a specific region. A more affordable option for small- to medium-size or new-to-market U.S. companies might be advertising in some of Japan's 2,250 weekly or monthly magazines.
These publications often represent a cost-effective means to reach a specific target consumer — whether gourmet or gardener, cyclist or camper. For industrial and commercial products, Japan's many industrial daily, weekly or monthly newspapers and trade journals might offer the best advertising option. Japan has relatively few radio stations (Tokyo has just four AM and six FM stations), but radio advertising is worth investigating.
Most of Japan's broadcast and print media do not deal directly with advertisers but go through Japan's top five advertising agencies: Dentsu, Hakuhodo, Asatsu, Tokyu Agency International, and NTT Advertising. Generally, mood or image advertising achieves the best results. Hard sell, comparative, or combative advertising used to be considered bad taste and counterproductive, but comparative advertising is becoming more mainstream in an increasingly competitive and tight economy.
Japan’s railways, as the primary transportation option for commuters in major cities, carry more than 21 billion passengers every year. So, transit advertising should not be overlooked. Transit advertisements can be found inside commuter rail cars, buses, and in stations. Advertisements inside trains and buses include hanging flyers, framed posters, stickers, and flat-panel video. As with other media and outlets, the major advertising agencies control space. Another common means of introducing, promoting, and selling consumer goods is to participate in large events such as regional import bazaars or U.S. product festivals at shopping centers. Such public events can be a cost-effective means to deliver a product message to a large audience and allow new-to-product consumers to sample and purchase. Industry specific trade shows might include some exhibition days that are open to the public, thus providing another means of reaching a large consumer audience.
Advertising and promotions should be part of a coordinated strategy, usually in cooperation with an advertising agency and/or a PR firm. A slick advertising campaign in the hottest magazine can go bust if it’s not coordinated with a distribution program that makes the product available to consumers.
Advertising agencies and PR firms can also assist U.S. firms with free or low cost publicity.
It is key for any U.S. exporter to get plugged into Japan’s trade event circuit: not only in Tokyo and Osaka, but also in the huge regional economies and industrial centers where 65 percent of more than 1,000 international conferences, seminars, and trade shows take place. Regulatory officials and decision-makers throughout Asia are showing up at these events in increasing numbers, so a U.S. firm’s message has the potential to stretch into other Asian countries.
U.S. firms should also consider U.S. Department of Commerce-sponsored trade shows and trade missions, as well as events that U.S. states and industrial organizations sponsor. In some cases, U.S. government facilities such as rooms at the U.S. Consulates in Osaka, Nagoya, Fukuoka, and Sapporo can be used for trade promotions, seminars, meetings, and receptions. Interested companies should inquire directly with the consulates regarding the prospects and costs for a single company promotion.
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