International Imc

2.1

THE INTERNATIONALTHE INTERNATIONALENVIRONMENT FORENVIRONMENT FOR

PROMOTIONPROMOTIONandand

IMCIMC

7.1

Cultural CommunicationsCultural Communications

Culture - Total Way of a People, the Social Legacy the Culture - Total Way of a People, the Social Legacy the Individual Acquires from His or Her GroupIndividual Acquires from His or Her Group

Culture is Typically Invisible to Those Who are Immersed In It, Culture is Typically Invisible to Those Who are Immersed In It, Making Communication Across Cultures DifficultMaking Communication Across Cultures Difficult

7.27.2

Importance of International CommunicationImportance of International Communication

Complex Social, Political & Economic Changes Complex Social, Political & Economic Changes Affect International Communications Environment. Affect International Communications Environment.

International Developments Relevant to the Rise in International Developments Relevant to the Rise in International Commercial Communications:International Commercial Communications:

Development of Trading Blocs - May be Prelude to Development of Trading Blocs - May be Prelude to a Rise in Nationalisma Rise in Nationalism

Loosening of Political and Economic ConstraintsLoosening of Political and Economic Constraints

7.37.3

Importance and Rise of International Importance and Rise of International CommunicationCommunication (con’t) (con’t)

Liberalization of the Flow of Labor and Increase in Liberalization of the Flow of Labor and Increase in movements of Peoples Across Bordersmovements of Peoples Across Borders

Growing Size of Ethnic Groups From Elevated Birth Growing Size of Ethnic Groups From Elevated Birth

RatesRates

Rise of Cultural Borders and Barriers even as Economic Rise of Cultural Borders and Barriers even as Economic

Barriers Begin to FallBarriers Begin to Fall

7.47.4

Overcoming Cultural Barriers in Overcoming Cultural Barriers in International PromotionInternational Promotion

Barriers to Creating Successful International PromotionsBarriers to Creating Successful International Promotions

EthnocentrismEthnocentrism Self-Reference CriterionSelf-Reference Criterion

7.57.5

How Might This How Might This American Ad Be Viewed American Ad Be Viewed as Ethnocentricas Ethnocentric

7.6

Overcoming Cultural Barriers in Overcoming Cultural Barriers in International Promotion International Promotion (con’t)(con’t)

Cross-Cultural Research Helps Overcome BarriersCross-Cultural Research Helps Overcome Barriers Secondary Data - Data Gathered by Someone Else Secondary Data - Data Gathered by Someone Else

for Some Other Purposefor Some Other Purpose Primary Data - Specific Data Collection Unique to a Promotional Primary Data - Specific Data Collection Unique to a Promotional

SituationSituation Economic ConditionsEconomic Conditions Demographics CharacteristicsDemographics Characteristics Values Values Custom & RitualCustom & Ritual Product Use & PreferenceProduct Use & Preference

7.77.7

Challenges in International AdvertisingChallenges in International Advertising

Creative ChallengeCreative Challenge

Media ChallengeMedia Challenge

Media Availability & CoverageMedia Availability & Coverage

Media Costs & PricingMedia Costs & Pricing

Regulatory ChallengeRegulatory Challenge

7.87.8

International MarketsInternational MarketsPrefer Different CreativePrefer Different CreativeExecutionsExecutions

7.9

Challenges in International Sales Promotion, Challenges in International Sales Promotion, Direct Marketing and e-CommerceDirect Marketing and e-Commerce

CHARACTERISTICES OF THE PRODUCTCHARACTERISTICES OF THE PRODUCT Product Prevalence & UseProduct Prevalence & Use As Competitive Environment Becomes More As Competitive Environment Becomes More Complex, Complex, Advertising Designed to Differentiate Advertising Designed to Differentiate Brands will Become Brands will Become More PredominantMore Predominant Products Moving into Growth Stage will Need to be Products Moving into Growth Stage will Need to be DifferentiatedDifferentiated

7.107.10

Challenges in International Sales Promotion, Challenges in International Sales Promotion, Direct Marketing and e-Commerce Direct Marketing and e-Commerce (con’t)(con’t)

LEVEL OF ECONOMIC DEVELOPMENTLEVEL OF ECONOMIC DEVELOPMENT All Forms of Production & Direct Marketing are Applicable in All Forms of Production & Direct Marketing are Applicable in Highly Highly Industrialized MarketsIndustrialized Markets In Less Developed Countries - Lack of Wide Range of In Less Developed Countries - Lack of Wide Range of Consumer Consumer Goods & Low Income Make Promotion a Non IssueGoods & Low Income Make Promotion a Non Issue

Few Competitors Serve these MarketsFew Competitors Serve these Markets Low Literacy Make Communication Difficult w/Print MediaLow Literacy Make Communication Difficult w/Print Media Without TV, Radio & Newspaper, Direct marketing is UnderminedWithout TV, Radio & Newspaper, Direct marketing is Undermined Unsophisticated Mail SystemsUnsophisticated Mail Systems

7.117.11


LEVEL OF ECONOMIC DEVELOPMENT (con’t)LEVEL OF ECONOMIC DEVELOPMENT (con’t) Newly Industrialized Markets – Better Environment for Newly Industrialized Markets – Better Environment for

Promotional Tools – Must be Managed CarefullyPromotional Tools – Must be Managed Carefully Consumer Income Rises – More Consumer Goods are Consumer Income Rises – More Consumer Goods are

Introduced and SucceedIntroduced and Succeed As Media Proliferate, Sales Promotions and Direct As Media Proliferate, Sales Promotions and Direct

Marketing can be Introduced Based on Market-by-Market Marketing can be Introduced Based on Market-by-Market AssessmentAssessment

7.127.12


STRUCTURE OF TRADE CHANNELSSTRUCTURE OF TRADE CHANNELS Highly Developed Distribution & Retailing Systems – Trade Channel Members Demand Highly Developed Distribution & Retailing Systems – Trade Channel Members Demand

Support or Carry Marketers BrandSupport or Carry Marketers Brand Trade Allowances, Incentives, Point-of-Purchase Displays & SamplingTrade Allowances, Incentives, Point-of-Purchase Displays & Sampling Must Have the Means to Handle Coupon Redemption or Premium DistributionsMust Have the Means to Handle Coupon Redemption or Premium Distributions

Less Developed Trade Channels – May Not be Able to Use Traditional Promotional Less Developed Trade Channels – May Not be Able to Use Traditional Promotional TechniquesTechniques Fragmentation of Trade ChannelsFragmentation of Trade Channels

Retailers - No Way of Handling CouponsRetailers - No Way of Handling Coupons Some Countries So Small May Not be able to Handle Point-of-Purchase Some Countries So Small May Not be able to Handle Point-of-Purchase

Trade ShowTrade Show

7.137.13


REGULATIONSREGULATIONS

Regulation of Promotion, Direct Marketing, andRegulation of Promotion, Direct Marketing, ande-Commerce Varies Widely Market-to-Markete-Commerce Varies Widely Market-to-Market Most Sales Promotion Tools are Legal Across EuropeMost Sales Promotion Tools are Legal Across Europe Sweepstakes are Either Heavily Banned or Regulated in Sweepstakes are Either Heavily Banned or Regulated in

All European MarketsAll European Markets In Japan – Value of Premium Offered with a Product is In Japan – Value of Premium Offered with a Product is

Limited to 10% of the Value of the Original PriceLimited to 10% of the Value of the Original Price

7.147.14

Promotions in Promotions in International MarketsInternational MarketsMust be Researched forMust be Researched forRegulation and LegalityRegulation and Legality

7.15

Challenges in International Public RelationsChallenges in International Public Relations

COMPANIES HAVE LESS CONTROL OVER GLOBAL COMPANIES HAVE LESS CONTROL OVER GLOBAL

PUBLICITY RELATIVE TO DOMESTIC SITUATIONS, PUBLICITY RELATIVE TO DOMESTIC SITUATIONS,

AND NO CORPORATIONS ARE POWERFUL ENOUGH AND NO CORPORATIONS ARE POWERFUL ENOUGH

TO CONTROL A HOST COUNTRY’S MEDIATO CONTROL A HOST COUNTRY’S MEDIA

7.16

Promotion Agencies Around the WorldPromotion Agencies Around the WorldGLOBAL AGENCYGLOBAL AGENCY Will Know Marketer’s Products & Current Promotion ProgramWill Know Marketer’s Products & Current Promotion Program Agency may then Either Adapt Domestic Campaigns or Launch New OnesAgency may then Either Adapt Domestic Campaigns or Launch New Ones Disadvantage is their Distance from Local Culture. Exporting Meaning is Disadvantage is their Distance from Local Culture. Exporting Meaning is

Never EasyNever EasyINTERNATIONAL AFFILIATEINTERNATIONAL AFFILIATE Set Up as a joint Venture w/Local AgenciesSet Up as a joint Venture w/Local Agencies Join Networks or Take Minority OwnershipJoin Networks or Take Minority Ownership Benefits in this ArrangementBenefits in this ArrangementLOCAL AGENCYLOCAL AGENCY Knowledgeable about Culture/Local MarketKnowledgeable about Culture/Local Market Have Well-Established ContactsHave Well-Established Contacts One Problem-Less Standardization of Creative EffortOne Problem-Less Standardization of Creative Effort

7.177.17

Standardized vs. Promotional Customized CampaignsStandardized vs. Promotional Customized Campaigns

STANDARDIZED CAMPAIGNS USE SAME APPEAL & CREATIVE STANDARDIZED CAMPAIGNS USE SAME APPEAL & CREATIVE EXECUTION ACROSS ALLINTERNATIONAL MARKETSEXECUTION ACROSS ALLINTERNATIONAL MARKETS

CUSTOMIZED CAMPAIGNS INVOLVE PREPARING CREATIVE CUSTOMIZED CAMPAIGNS INVOLVE PREPARING CREATIVE EXECUTIONS FOR EACH MARKET A FIRM HAS CREATEDEXECUTIONS FOR EACH MARKET A FIRM HAS CREATED

A BRAND IS WELL SUITED FOR A STANDARDIZED CAMPAIGN WHEN:A BRAND IS WELL SUITED FOR A STANDARDIZED CAMPAIGN WHEN: Communication Primarily Uses Visual Appeal Communication Primarily Uses Visual Appeal Communication is “Culture-less”Communication is “Culture-less” Brands that are StandardizedBrands that are Standardized Products have Global ReputationProducts have Global Reputation

7.187.18

Certain Product LendCertain Product LendThemselves to Themselves to Standardized CampaignsStandardized Campaigns

7.19

Standardized vs. Promotional Customized Campaigns Standardized vs. Promotional Customized Campaigns (con’t)(con’t)

ENVIRONMENT FOR STANDARDIZED PROMOTION IS ENVIRONMENT FOR STANDARDIZED PROMOTION IS MORE FAVORABLE DUE TO:MORE FAVORABLE DUE TO:

Expansion of Global Communications MediaExpansion of Global Communications Media

Emergence of Global TeenagerEmergence of Global Teenager Trend Towards Universal Demographic & Lifestyle Trend Towards Universal Demographic & Lifestyle TrendsTrends

Americanization of Consumption ValuesAmericanization of Consumption Values

7.207.20

Challenges in Developing & Managing Challenges in Developing & Managing A Global Sales ForceA Global Sales Force

DEVELOPING A GLOBAL SALES FORCE CAN BE DEVELOPING A GLOBAL SALES FORCE CAN BE ACHIEVED WITH:ACHIEVED WITH:

Expatriate PersonnelExpatriate Personnel

Local NationalsLocal Nationals

Third Country NationalsThird Country Nationals

7.227.22

Challenges in Developing & Managing Challenges in Developing & Managing A Global Sales ForceA Global Sales Force

MANAGING THE GLOBAL SALES FORCEMANAGING THE GLOBAL SALES FORCE TrainingTraining

ExpatriateExpatriate Foreign National PersonnelForeign National Personnel Training for Foreign PersonnelTraining for Foreign Personnel

Motivation & CompensationMotivation & Compensation Companies Must Consider CultureCompanies Must Consider Culture Guidelines Include Examining the Way Firms are Compensating PeopleGuidelines Include Examining the Way Firms are Compensating People

High Tax-Rate Countries – Sales Personnel Push for Packages instead of High Tax-Rate Countries – Sales Personnel Push for Packages instead of Direct Taxable IncomeDirect Taxable Income

E.g., Cost of Living Allowances, Private School Tuition, etc.E.g., Cost of Living Allowances, Private School Tuition, etc.

7.237.23

Business

International Imc