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International Marketing lecture
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7/21/2019 Module 4 Lecture Inter
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Integrated Marketing Communications (IMC)
GLOBAL PROMOTION STRATEGIES
Internationa Ad!ertising
Go"a Ad!ertising and t#e Communications Process
internationa ad!ertising incude t#e $oo%ing SE&EN
STEPS'
Go"a Saes Promotions
Go"a Persona Seing
Go"a Pu"ic Reations
Go"a Integrated Marketing Communications (GIMC)
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Introduction
• Once a market offering is developed to meet targetmarket needs, intended customers must be informed ofthe offering.
• Once a market offering is developed to meet targetmarket needs, intended customers must be informed ofthe offering.
Integrated Marketing Communications (IMC) comprises:• dvertising• !ales promotions• "ersonal selling• #irect selling, and• "ublic relations
Integrated Marketing Communications (IMC) comprises:• dvertising
• !ales promotions• "ersonal selling• #irect selling, and• "ublic relations
• ll these mutuall$ reinforcing elements of the promotional(marketing communications) mi% have as their commonob&ective the successful sale of a product or service.
• ll these mutuall$ reinforcing elements of the promotional(marketing communications) mi% have as their commonob&ective the successful sale of a product or service.
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Marketing communications includeAdvertising, Sales Promotion,Personal Selling, Direct Selling and
Public Relations.When communicating with publics inmore than one country, rms must
work within the limitations o! eachmarket to ma"imi#e their promotionalob$ectives.
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International Advertising
#ecisions involving advertising are those most oftenaffected b$ cultural differences among countr$ markets. Consumers respond in terms of their culture, its st$le,
feelings, value s$stems, attitudes, beliefs, and perceptions. dvertising's function is to interpret the ualities of products
in terms of consumer needs, ants, desires, andaspirations, the emotional appeals, s$mbols, andpersuasive approaches.
*econciling an international advertising campaign ith thecultural uniueness of markets is the challenge confronting
the international or global marketer.
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Global Advertising and the Communications Process
1. An information source An internationa marketing e*ecuti!e%it# a +roduct message to communicate
2. Encoding T#e message $rom t#e source con!erted intoe$$ecti!e sm"oism $or transmission to a recei!er
3. A message channel T#e saes $orce and,or ad!ertising media
t#at con!e t#e encoded message to t#e intended recei!er 4. Decoding T#e inter+retation " t#e recei!er o$ t#e sm"oism
transmitted $rom t#e in$ormation source5. eceiver Consumer action " t#ose %#o recei!e t#e message
and are t#e target $or t#e t#oug#t transmitted
!. "eedbac# In$ormation a"out t#e e$$ecti!eness o$ t#e messaget#at $o%s $rom t#e recei!er (t#e intended target) "ack to t#ein$ormation source $or e!auation o$ t#e e$$ecti!eness o$ t#e +rocess
$. %oise -ncontroa"e and un+redicta"e in$uences suc# as
com+etiti!e acti!ities and con$usion t#at detract $rom t#e +rocess and a$$ect an or a o$ t#e ot#er si* ste+s
T#e internationa communications +rocess consists o$ t#e $oo%ing se!en ste+s'
T#e internationa communications +rocess consists o$ t#e $oo%ing se!en ste+s'
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%!ten &ontroversial'enets Derived !rom Advertising
1. Economica. Sales increase
b. Production increases
c. Per(unit cost o! product goesdown ( economies o! scale
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here are many cultural challenges thatadvertisers !ace in global marketing.
-lobal advertising encompasses areas
such as advertising planning, budgeting,resource allocation issues, messagestrategy, and media decisions.
%ther areas include local regulations,
advertising agency selection, coordinationo! multi(country communication e/ortsand regional and global campaigns.
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International Advertising
. Per$orm marketing researc#/ S+eci$ t#e goas o$ t#e communication0
1e!eo+ t#e most e$$ecti!e message(s) $or t#emarket segments seected2 Seect e$$ecti!e media3 Com+ose and secure a "udget
4 E*ecute t#e cam+aign5 and6 E!auate t#e cam+aign reati!e to t#e goas
s+eci$ied
+he basic frameork and concepts of internationaladvertising include the folloing SEVEN STEPS:
+he basic frameork and concepts of internationaladvertising include the folloing SEVEN STEPS:
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Language Barriers◦ 0anguage is one o! the most !ormidable
barriers in global marketing.
◦ ranslation errors can occur in
international marketing Simple carelessness Multiple(word meaning
%ther &ultural 'arriers
◦ Religion◦ &ultural traps1cultural dimensions
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Media 2n!rastructure◦ Media in!rastructure di/ers !rom country to
country
Media 0imitations◦ he ma$or limitation in many markets is media
availability.
Recent Developments in the -lobalMedia 0andscape
◦ -rowing commerciali#ation and deregulation o!mass media
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he ma$or types o! advertising regulationsinclude◦ Advertising o! Pharmaceuticals
◦ &omparative Advertising
◦ &ontent o! Advertising Messages
◦ Advertising argeting &hildren
◦ %ther Advertising Regulations 2ssues o! locallanguages, ta" issues, and advertising rates.
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Strategies to deal with advertisingregulations
◦ 4eep track o! regulations and pendinglegislation
◦ Screen the campaign early on
◦ &hallenge regulations in court
◦ Adapt marketing mi" strategy
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2n selecting an ad agency, theinternational marketer has severaloptions5. Work with the agency that handles the
advertising in the rm6s home market.7. Pick a purely local agency in the !oreign
market.8. &hoose the local o9ce o! a large international
agency.
:. Select an international network o! ad agenciesthat spans the globe.
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When screening ad agencies, the !ollowing set o!criteria can be used
◦ Market coverage
◦ ;uality o! coverage
◦ *"pertise with developing a central international
campaign
◦ &reative reputation
◦ Scope and )uality o! support services
◦ Desirable image <=global> versus =local>?
◦ Si#e o! the agency
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-lobal or pan(regional advertisingapproaches re)uire a great deal o!coordination. he !ollowing mechanismscan help
◦ Monetary 2ncentives <cooperative advertising?◦ Advertising Manuals <brand book?
◦ 0ead(&ountry &oncept
◦ -lobal or Pan(Regional Meetings Si" guidelines to
implement a global or pan(regional advertisingapproach include
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<5?. op management must be dedicatedto going global.
<7?. @se a third party <e.g., the ad
agency? to help sell key managers thebenets o! a global advertisingapproach.
<8?. A global brie! based on cross(border
consumer research can help persuademanagers to think in terms o! globalconsumers.
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<:?. ind product champions and givethem a charter !or the success o! theglobal marketing program.
<B?. &onvince local sta/ that they havean opportunity in developing a globalcampaign.
<C?. -et local managers on the global
marketing team (( have them do the $obthemselves.
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&egal Constraints
. Ad!ertising cam+aigns must
com+ %it# ega reguationsaround t#e %ord
/ Com+arati!e ad!ertising is #ea!ireguated in ot#er +arts o$ t#e%ord
0 A !ariet o$ restrictions onad!ertising o$ +#armaceuticas isrestricted in man countries
2 Ad!ertising on tee!ision is strictcontroed in man countries5 eg5
in German5 $or e*am+e5commercias must "e s+aced ateast /7 minutes a+art and tota adtime ma not e*ceed ./ minutes
+er #our Commercia stations int#e -nited 8ingdom are imited to6 minutes +er #our
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&inguistic &imitations
Ad!ertising $rom cuture does not o$ten transate %e inanot#er cuture due to di$$erences in anguages and diaects
9or e*am+e5 C#rser Cor+oration transated its -S t#emet#at ad!ertised 'Dart (s Po)er.* To t#e S+anis#5 t#e +#raseim+ied t#at "uers soug#t "ut acked se*ua !igor
T#e Bacardi %anted to se t#e drink in German caedPavane5 "ut it is +erious cose to +a!ian5 %#ic# means: "a"oon;
A com+an marketing tomato +aste in t#e Midde East $oundt#at in Ara"ic t#e +#rase :tomato +aste; transates as :tomatogue;
In S+anis#<s+eaking countries %ords #a!e di$$erent meaningsT#e %ord "a transates in S+anis# as "oa5 %#ic# means "a
in one countr5 re!oution in anot#er5 a ie or $a"rication inanot#er5 and is an o"scenit in et anot#er E!en +ronunciation causes +ro"ems' =rige #ad trou"e
seing its +,earmint gum in German unti it c#anged t#es+eing to +,eermint
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Constraints to Advertising Cam,aigns
> T#ere are man +ro"ems in communicating a $irm?s +roduct o$$erings to its
!arious target markets around t#e %ord Some o$ t#ese incude'
> T#ere are man +ro"ems in communicating a $irm?s +roduct o$$erings to its!arious target markets around t#e %ord Some o$ t#ese incude'
1. Cultural Diversit-' Ad cam+aigns and +roduct "rand names "eing communicated ma meandi$$erent t#ings to di$$erent cutures
2. edia &imitations' in some underde!eo+edcountries5 t#ere is a s#ortage o$ ad!ertising mediasuc# as radio stations5 +rint media (ne%s+a+ers5maga@ines)5 and tee!ision stations5 ca"e T&5 andsateite T&
3. Production and Cost &imitations' In somemarkets costs are +ro#i"iti!e to ad!ertise oncon!entiona ad!ertising media ot#er countries ma#a!e o% uait +a+er to +rint ad!ertising
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Constraints to Advertising Cam,aigns
4. Coverage' In arge5 ess de!eo+ed countries
ad!ertising media suc# as tee!ision ma not "egeogra+#ica dis+ersed
5. &ac# of ar#et Data' T#is makes it di$$icutto reac# s+eci$ic target markets
!. Direct ail' E!en i$ direct mai is a!aia"e5 itma not %ork due to #ig# iiterac rates insome countries
$. /he (nternet' T#oug# ad!ertising !ia t#einternet is $ast increasing5 t#e === is not%ide a!aia"e in man countries %#erecom+uters are considered e*+ensi!e
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+ales Promotions in (nternational ar#ets
. Cents<o$$
/ In<Store 1emonstrations
0 Sam+es2 Cou+ons
3 Gi$ts
> Saes +romotions are marketing acti!ities t#at stimuateconsumer +urc#ases and im+ro!e retaier or middemene$$ecti!eness and coo+eration
> Saes +romotions are marketing acti!ities t#at stimuateconsumer +urc#ases and im+ro!e retaier or middemen
e$$ecti!eness and coo+eration
E*am+es o$ saes +romotion incude'E*am+es o$ saes +romotion incude'
> Saes +romotions are s#ort<term e$$orts directed to t#e consumeror retaier to ac#ie!e suc# s+eci$ic o"ecti!es as consumer<
+roduct tria or immediate +urc#ase
> Saes +romotions are s#ort<term e$$orts directed to t#e consumeror retaier to ac#ie!e suc# s+eci$ic o"ecti!es as consumer<
+roduct tria or immediate +urc#ase
4 Product Tie<Ins
6 Contests
D S%ee+stakes
S+onsors#i+ o$ S+ecia E!ents5
.7 Point<O$<Purc#ase 1is+as
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&onsumer Sales Promotion echni)ues ( &an
oster 0ong( erm %b$ectives
5. Coupons ( maintain currentcustomers, attract new ones
7. Reates ( maintain currentcustomers, attract new ones
8. !ree samples ( encourage new usersby eliminating cost
:. "ail#in premiums
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B. $n#pac% premiums ( promotionalbenet packaged with the product
C. Bonus pac%s ( more product !or thesame price
. &rading stamps ( increase storepatronage
E. Contests and sweepsta%es (enhance name recognition and stimulatesales
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rade Sales Promotion echni)ues (Persuade &hannel Members to &arry
Products or to 2ncrease Sales 5. Sales contests ( increase sales
7. 'rice#o( o(ers ( push new products ormove large )uantities
8. )d*ertising allowances
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:. Display allowances
B. ree goods
C. Push money ( money to carry and topush products
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Person(to(person communication betweena company representative and potentialbuyers
ocus is to in!orm and persuade prospect Short#term goal+ make a sale Long#term goal+ build relationship
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'olitical Ris%s F unstable or corruptgovernments change the rules !or thesales team
Regulator, -urdles F -overnments canset up )uotas or tari/s that a/ect the
sales !orce Currenc, !luctuations F increase and
decrease in local currencies can makecertain products una/ordable
"ar%et n%nowns F lack o! knowledge o!market conditions, the accepted way o!doing business, or positioning o! theproduct may derail the sales team6s e/orts
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-/ "rentice 0all123
4/
'ersonal Selling 'hilosoph, F commitmentto the marketing concept and a willingness toadopt the role o! problem solver1partner
Relationship Strateg, F game plan !or
establishing and maintaining high()ualityrelationships with prospects1customers
'roduct Strateg, F plan that can assist thesales representative in selecting and
positioning products to satis!y customer needs
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-/ "rentice 0all123
45
Customer Strateg, F plan that ensuresthat the sales pro!essional will be ma"imallyresponsive to customer needs
'resentation Strateg, F consists o!
setting ob$ectives !or each sales call andestablishing a presentation plan to meetthose ob$ectives
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he Personal Selling Process
5. 'anning+ what, how, when
7. 'rospecting+ who 8. 'reparing+ what buyers need,competitors o/er
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:. Selling
a. Approaching customer
b. Making presentation
c. Answering )uestions
d. &losing sale
B. !ollowing up ( establishing solid link
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(nternational Public elations
> T#e o" consists o$ not on encouragingt#e +ress to co!er +ositi!e stories a"outcom+anies5 "ut aso o$ managing
un$a!ora"e rumors5 stories5 and e!ents
> T#e o" consists o$ not on encouragingt#e +ress to co!er +ositi!e stories a"outcom+anies5 "ut aso o$ managing
un$a!ora"e rumors5 stories5 and e!ents
> Creating good reations#i+s %it# t#e +o+uar +ress and ot#er media to #e+com+anies communicate messages tot#eir +u"icsFcustomers5 t#e genera
+u"ic5 and go!ernmenta reguatorsFist#e roe o$ +u"ic reations (PR)
> Creating good reations#i+s %it# t#e +o+uar +ress and ot#er media to #e+com+anies communicate messages tot#eir +u"icsFcustomers5 t#e genera
+u"ic5 and go!ernmenta reguatorsFist#e roe o$ +u"ic reations (PR)
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*mployee Relations ( &reate avorableAmbassadors to the &ommunity
&ustomer Relations ( Show irm &ares About
&ustomers Press Relations ( 4eep Shapers o! Public%pinion on irm6s Side
-overnment Relations ( 'e a -ood &iti#en
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-lobally 2ntegrated Marketing&ommunications <-2M&?
◦ -2M& is a system o! active promotional
management that strategicallycoordinates global communications in allo! its component parts.
◦ 'oth hori#ontally <country(level? andvertically <promotion tools? are used in-2M&.
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2ntegrated Marketing &ommunications<2M&?
◦ 2M& coordinates di/erent communication
vehicles F mass advertising, sponsorships,sales promotion, packaging, point(o!(purchase displays, so !orth.
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hank Gou