Download Sixteen

Integrated Marketing Communications
and
International Advertising
Modular:
Afjal Hossain
Assistant Professor, Department of Marketing
PSTU
McGraw-Hill/Irwin International Marketing, 13/e
Global Perspective
Barbie Versus Mulan
• Integrated marketing communications
(IMC)
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Advertising
Sales promotions
Trade shows
Personal selling
Direct selling
Public relations
• Objective: the successful sale of a
product or service
Sales Promotions in International
Markets
• Sales promotions
– Marketing activities that stimulate consumer
purchases and improve retailer or middlemen
effectiveness and cooperation
– Short-term efforts directed to the consumer or
retailer to achieve specific objectives
• In markets with media limitations the percentage
of the promotional budget allocated to sales
promotions may have to be increased
• Product sampling
International Public Relations
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Bridgestone/Firestone Tires safety recall
Global workplace standards
Building an international profile
Corporate sponsorships
The role of public relations (PR) is creating good
relationships with the popular press and other
media to help companies communicate messages
to customers, the general public, and
governmental regulators.
International Advertising
1. Perform marketing research.
2. Specify the goals of the communication.
3. Develop the most effective message(s)
for the market segments selected.
4. Select effective media.
5. Compose and secure a budget.
6. Execute the campaign.
7. Evaluate the campaign relative to the
goals specified.
Top 20 Global Advertisers ($ millions)
• Insert Exhibit 16.1
Advertising Strategy and Goals
• Marketing problems require careful marketing
research and thoughtful and creative
advertising campaigns in country, regional,
and global markets, respectively.
• Increased need for more sophisticated
advertising strategies.
• Balance between standardization of
advertising themes and customization.
• Consumer cultures
Product Attributes and Benefit Segmentation
• Different cultures usually agree on the
benefit of the primary function of a product
• Other features and psychological attributes
of the item can have significant differences
– Cameras
– Yogurt
– Almonds
• Blue Diamond – assumes that no two
markets will react the same, that each has its
own set of differences, and that each will
require a different marketing approach and
strategy
Regional Segmentation
• Pan-European communications media
highlighting need for more standardized
promotional efforts
• Costs savings with a common theme in
uniform promotional packaging and design
• Legal restrictions slowly being eliminated
Global Advertising and the Communications
Process
• If not properly considered, the different
cultural contexts can increase the
probability of misunderstandings
• Effective communication demands the
existence of a “psychological overlap”
between the sender and the receiver
• It can never be assumed that “if it sells
well in one country, it will sell in
another”
The International Communications Process
• Insert Exhibit 16.4
Legal Constraints
• Laws that control comparative advertising vary
from country to country in Europe.
• Comparative advertising
• Advertising of specific products
• Control of advertising on television
• Accessibility to broadcast media
• Limitations on length and number of commercials
• Internet services
• Special taxes that apply to advertising
Linguistic Limitations
• Language is one of the major barriers to
effective communication through advertising
• Translation challenges
• Low literacy in many countries
• Multiple languages within a country
Cultural Diversity
• Knowledge of cultural diversity must
encompass the total advertising project
• Existing perceptions based on tradition and
heritages are often hard to overcome
• Subcultures
• Changing traditions
Media Limitations and Production and Cost
Limitations
• Media limitations may diminish the role of
advertising in the promotional program
• Examples of production limitations:
– Poor-quality printing
– Lack of high-grade paper
• Low-cost reproduction in small markets poses
a problem in many countries
Media Planning and Analysis –
Tactical Considerations
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Availability
Cost
Coverage
Lack of market data
Newspapers
Magazines
Media Planning and Analysis –
Tactical Considerations (continued)
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Radio and television
Satellite and cable TV
Direct mail
The Internet
Other media
Campaign Execution and Advertising Agencies
• Managed by advertising agencies
– Local domestic agency
– Company-owned agency
– Multinational agency with local branches
• Compensation
– Commonly 15 percent throughout the world
– Some companies moving to reward-by-results
International Control of Advertising: Broader
Issues
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Consumer criticism
Deceptive advertising
Decency and blatant use of sex
Self-regulation
Government regulations