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mk364 - international advertising
INTERNATIONAL ADVERTISING
THEME 5 - INTERNATIONAL ADVERTISING MANAGEMENT
Introduction
This theme includes consideration of (international) marketing research generally, the
communication process and patterns around the world and inevitably adaptation/standardisation,
as with brands and branding. The management of international campaigns must also include
some reference to (international) advertising agencies and marketing communications research
specifically. The key word here is integration. That is to say, the notion that one can study
advertising (whether international or not) in isolation from other elements of the communications
mix, while not impossible, is improbable or undesirable.
Marketing communications
MARKETING, EXCHANGE AND CHANGE
Basic marketing theory is assumed. Marketing is said by many to be in a state of transition. Some
might say marketing is no longer strategy but a requirement, a necessity. In particular the
"information explosion" is upon us. The world wide dominance of the USA is waning somewhat
and we have moved chronologically from American manufacturing and distribution dominance of
the 1950s and 1960s through to cost-cutting and re-engineering in the 1990s.
1950s/60s - saw America's manufacturing base largely undisturbed with distribution systems
developed to get produce out into the market place. Communications played a very minor role.
1970s - Japanese introduce quality as a basis for competition.
1980s - saw increased competition based around price in order to clear the market place.
1990s - has seen so far cost-cutting and re-engineering.
2000+ - will see the dominance of technology and communications.
Right now we see technological influence in terms of, for example, digital technology. For example
Eastman/Kodak have digital photography. If this is introduced too fast then this would kill off the
paper and chemicals business. If too slow then they miss out to the competition. Ultimately the
consumer will control this not corporations. Levi and many others are on the internet. The
consumer who has the technology can order direct. United Airlines offer tickets, hotel
reservations, car hire - all on PC software. This is not good news for travel agents. As Don Schultz
(1996) put it the key to this transition the transfer of information technology first into channels then
into the consumer. Visually this looks something like:
HISTORICAL
CURRENT
MARKETER
MARKETER
MARKETER
CHANNEL
CHANNEL
CHANNEL
MEDIA
CONSUMER
MEDIA
CONSUMER
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21st CENTURY
MEDIA
CONSUMER
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So in the past manufacturers have hooked into channels. For Schultz this is a big mistake. In the
USA P&G have become captives of Wal Mart. Their failure in Brazil is linked to Wal Mart's failure
there. The future appears to be in the realms of interactivity. Fragmentation has begun and the
myth of company/corporate image is dissolving before us. Coca Cola has a thousand - maybe a
billion - images world wide. The consumer is still small but is growing fast in terms of control.
THE COMMUNICATION PROCESS AND THE MARKETING/BUSINESS ENVIRONMENT
The process is a pre-requisite to the study of international advertising and marketing. Most writers
agree that the sender uses socio-cultural cues and symbols familiar to the receiver and selects
media that are socio-culturally and legally apt. Factors affecting communication on this scale are:
language - e.g. brand names; socio-cultural - e.g. colour, e.g. beliefs; economic - e.g. literacy, e.g.
media; legal - e.g. local advertising regulations.
Marketing Communications and Communicators
The main concern is for the fundamental use of the very basic model of the (marketing)
communication process used by many text book writers to suggest the availability of, at the very
least, a framework for marketers to help manage their various forms of communication - whether
mediated or interpersonal. Buttle (1995) provides a useful history/ancestry of communication (and
marketing communication) theory and points to the lack of explicitness regarding theory. To quote
Buttle: "Theory without practice may be barren and vacuous, but practice without theory risks
being gratuitous and promiscuous " (p298).
This is central here since we are concerned with practitioners and what they can gain from the
theoretical stances taken by writers - whether practitioners themselves or academicians - in order
to provide a framework or even simply a basis from which to build the desired model.
Communications models
The commonest form by far and away in the text books, this deals with the problems of one way
mass communication. To do this accurately is very difficult to achieve. This looks simple but in
practice is far from simplicity. The basic model is shown below:
_noise________________________________noise_________________
Source
(Communicator)
Encodes
(Message)
Signal
Decodes
(Receiver)
Destination
FEEDBACK
_____________________________________noise_____________
Numerous models have been developed in this area which help further develop this general
framework for understanding. Some are described below.
1. Step Flow or Personal Influence Models
These are very simplistic and usually involve one, two or multi step flows, opinion
leaders/formers/followers and necessarily innovator theory and the strength of word-of-mouth.
Numerous models have been developed in this area which are said to provide general
frameworks for understanding. Step Flow or Personal Influence "models" were established by the
1960s. Here the message is encoded, transmitted and decoded by the receiver but this then
includes the role of the opinion leader and word of mouth with others to move from one to two to
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multi step flows of the message which necessarily mutates and where the meaning intended by
the sender can be either enriched or changed in some other way. This can be illustrated in the
following way:
Target 1
Mass Media
/ Target 2
Target 4 (Opinion
Leader)
Target 3
.
Target 1
Mass Media
/ Target 2
Target 4 (Opinion
Leader)
Target 3
.
2 . Innovation Theory
The innovation curve (Rogers, as early as 1962) is well covered in basic marketing theory and
texts and should be known to the reader already. This is shown below:
Innovators
Early
Adopters
Early
Majority
Late
Majority
Laggards
-----------------------------------------------------------------------------------------------------------2.5%
13.5%
34%
34%
16%
The process of adoption and diffusion of innovations is theoretical and the curve need not be
normal as depicted, but can be skewed depending upon the makeup of the population or sample.
The importance of innovators and early adopters in terms of word of mouth communications
should not be underestimated.
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As with all stage models each stage is sequential, hierarchical and in this sense is open to the
usual criticism of stages being left out, or out of sequence etc. This model is, however, useful
from the marketing communications perspective with regard to objectives and strategy (for
example providing persuasive information through a particular media vehicle). Rogers five stages
are:
i. Knowledge - the DMU becomes aware of the innovation but has nothing to go on. The
opportunity is there to provide (persuasive) information through channels such as the media.
ii. Persuasion - the perceived characteristics of the innovation become important as do the
messages from the media, opinion leaders etc.
iii. Decision - attitudes are formed and a decision to adopt or reject the innovation made.
Communication is clearly important in this.
iv. Implementation - the DMU needs to know how to access the innovation for trial if not rejected
and communication has its role to play in this.
v. Confirmation - post-trial the innovation will either continue or be delayed or be rejected. it may
well be re-adopted or rejected continuously. The DMU can be assisted in this process by
persuasive communication, helping dispel worries or negativity and reaffirmation of the original
decision with post-behavioural consolidation.
3. Hierarchy of Effects
When a message is sent to an audience it is assumed that the audience responds in some way.
There are many possible responses which can be grouped into three distinct categories:Awareness; Attitude; Behaviour. All messages attempt to influence at least one of these
responses. Hierarchy of Effects therefore states that a consumer must pass through a series of
stages from unawareness to purchase and brand loyalty. A number of "models" have been
developed. Copley (2004) provides a useful précis shown below:
Model
Cognitive
Affective
Conative
_____________________________________________________________________________________
AIDA
Attention
Interest, Desire
Action
(St. Elmo Lewis, 1900)
AIDAS
Attention
Interest, Desire
Action, Satisfa ction
(Sheldon, 1911)
AIDCA
Attention
Interest, Desire,
Action
(Kitson, 1921)
Conviction
AIDA
Attention
Interest, Desire
Action
(Strong, 1925)
DAGMAR
Awareness,
Conviction
Action
(Colley, 1961)
Comprehension
Lavidge and Steiner
Awareness, Knowledge
Liking, Preference,
Purchase
(1961)
Conviction
Adoption
Awareness
Interest, Evaluation
Trial, Adoption
(Rogers, 1962)
HOWARD AND
Attention, Comprehension Attitude, Intention
Purchase
SHETH, 1969)
On line info
Exposure, Attention
Yielding, Acceptance
Retention
(Hofacker, 2000)
Coprehension, Perception
These deal then with the think-feel-do sequence of events regarding the cognitive (awareness,
knowledge), the affective (interest/liking, desire/preference/conviction) and the behavioural
(action/purchase). They are subjected to the usual criticism that is applied to stage models but
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also that knowing the level of communication input in order to facilitate change is difficult to
measure. Until this is known an optimal communications mix cannot be devised and implemented.
4. Kellman's Source Characteristics Model
Fill (1995) includes this model which of course tries to break down the ways in which sources
obtain and retain their characteristics which can be used in message strategy. Kellman's Source
Characteristics Model again dates back some time (to the 1960s) and deals with credibility,
attractiveness and power. This clearly isolates:
- credibility (for objectivity , relevancy, expertise, trustworthiness etc.)
- attractiveness (through identification with the source)
- power (when the source can reward and punish and therefore involves compliance)
High credibility is not necessarily the most effective in certain situations as might be expected.
The use of a high credibility source is of less importance when receivers have a neutral position.
This is clearly plausible with regard to low and high involvement and where risk is involved.
Everyday products like insurance can be promoted in this way.
Empathy or correlation between source and recipient means that the receiver will find the source
attractive and a relationship can then develop where the latter sees him/herself in the situation
depicted (say) through slice of life advertising i.e. relates to it, identifies with it. and the problems it
solves. Many examples exist. In the UK the Oxo Family would be typical.
Power is more easily seen in personal communications situation where both the stick and carrot
are in evidence - expense accounts, type of car allowance, bonus rewards and penalties etc.
5. Model of (Mass) Communication.
For this to be of any practical use in the real world of course it has to aid the marketer in terms of
effective and efficient communications. Fundamentally, the idea is for the communicator to be in a
position to understand the (target) recipient well enough to be able to encode desired messages
with a high degree of certainty that there will be no "noise" in the system, the task being to
understand how decoding will occur, the transfer of pure, unadulterated meaning. It is of course
recognised that the marketer is not the only player in this game. The target is another player but
other influences are part of the process - the bullet theory (Schramm) or hypodermic effect
(Klapper) having been rejected for some time with an emerging preference for interactive and
integrative rather than linear thought. Buttle (1995) provides a clear analysis of commonalties
within the various representations of the communication process, identifying four such
commonalties and concluding that marketing communications theory fails to draw on the very
disciplines it should. Looking at the family/household, institutional and cultural levels (and not just
the individual level). Buttle concludes that much is missing from the process. Similarly the
tendency to focus on individual messages is clearly misleading to say the least. Cumulative
impact, shared meaning, derived symbolic meaning and not least meaning derived from nonpromotional marketing and other variables that are bound to have some sort of effect. Belief in the
notion of the passive audience is long gone and the exposure - audience uses/gratification debate
(or content does something to people as opposed to people doing something to the content)
seems to have been won by those who favour the interactive approach. The notion of source
intent is clearly not without problems. Linked to this is co-orientation. To avoid problems with
fidelity the communicator can opt for a closed text to avoid misreading, misunderstanding and so
on which of course ignores the social and other contexts people necessarily operate in.
Buttle therefore condemns the usual marketing communications theory as ill informed and
narrowly focused. The danger in educational/learning terms is that lecturers think that this is what
students need to be practitioners, to understand and bring about the usual
cognitive/affective/behavioural sequence in the short term - yet all of this is steeped in 1940s and
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50s thought with many important parameters unaccounted for and ignored. In a sense one can
argue that such parameters are accounted for within the notion of 'realm of understanding/field of
experience', one cannot escape the feeling of opportunities being lost through not pursuing
greater understanding of such effects.
The marketing communicator, it could be argued, has a lot to be gained from ‘the participation of
sociologists, anthropologists, semioticians, cognitive scientists, even psychoanalysts. This
qualitative shift in the recruitment of consultants and experts undoubtedly suggests a new phase
in the attempts to penetrate the secrets of the black box’, Mattelart and Chanan pp170-1. (1991).
For example, the intimate relationship between the two processes of buyer behaviour and
marketing communications is well recognised in the traditional marketing literature. For the most
part these follow the rational/cognitive/systematic/reasoned consumer processing model, although
to be fair to Shimp (1997) this text does at least try to introduce the fun/fantasies/feelings of the
hedonic, experiential model after Hirschman and Holbrook (1982) who were some of the first to
challenge the traditional view of consumption, particularly from the (marketing) research
methodological standpoint.
Similarly, language is used as a model for all forms of cultural discourse and therefore
semiologists borrow from the structural linguists (principally de Saussure) of the first half of this
century whereby language is seen as a whole system of rules governing the selection and
combination of different signs out of which meaning is produced. Since the transfer of meaning is
fundamental to marketing communications, there is much to be gained for the marketing
communicator from its study and use.
The most frequently adopted model of the communications process in marketing terms is that of
Schramm (1971), revised from Schramm's 1954 model and in itself derived from Lasswell's
(1948) semantic description and Shannon and Weaver's (1948) "model" of the communication
process. For example Fill (1995), Belch and Belch (1995) to name but two of many, use this as a
fundamental building block of entire texts. The marketing communications process for many is
therefore acceptable when represented thus:
SENDER/SOURCE
ENCODES
REALM OF UNDERSTANDING/FIELD OF EXPERIENCE
MESSAGE/SIGNAL
NOISE
NOISE
REALM OF UNDERSTANDING/ FIELD OF EXPERIENCE
DECODES
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RECEIVER/RECIPIENT
FEEDBACK
NOISE
Elements of the Marketing Communications Process
The elements of the process for our purposes here need to be explained and broken down into
their own constituents in order that a model can be rebuilt. Taking these in turn:
Sender/Source
A person, group of people, company or some other organisation may wish to transmit/relay an
idea, set of ideas, a proposition in order to share something with another party. This out of
necessity includes the encoding of a message in some shape or form with the intention of
achieving one or more of the aforementioned communications objectives, and necessarily
involves the sender/source itself as part of that message. The source characteristics outlined in
the Kellman model above apply here so that sales people, advertising etc. should have elements
of trust, likeability, attractiveness, power and so on in order to influence and persuade. A trend
(from America) in recent years in advertising has been to use CEOs like Bernard Mathews (UK Bernard Mathews - especially turkey produce) or Victor Kyam (USA/International - Remmington)
to get across enthusiasm, likeability and so on. Similarly, endorsers such as Sir Robert Mark (UK),
ex top police chief, are thought to be very credible with road safety and hence are good, credible,
endorsers of (say) car tyres.
Encoding
If the problem is perceived incorrectly by the source then the wrong concept might be developed
and encoded making the communication faulty. Some form of situation analysis is useful here.
We are concerned about actuality and perception, where any mismatch is the perception itself in
the mind of the transmitter. This makes a lot of sense in the real world of everyday experience
where thought/ideas have been translated into symbolic form. The problem lies in the task of
getting the right sentences, words, symbols - from a vast array of verbal and non-verbal elements
which will communicate effectively.
The message
This then is the symbolic representation of the sender/source's thoughts/ideas. If the source does
not say what he means, even if the problem is understood, then the message strategy will be
faulty. Objectives should be met by using the best combination of marketing communications tools
- advertising, packaging and so on - with the right kind of message at the right time. The message
itself has no meaning. Meanings are part of the message user i.e. sender/source or
recipient/receiver. Many options are available to the communicator including one or two sided
arguments, open/closed conclusions, rational/emotional appeals. All this adds up to creative
strategy. (Refer back to theme three).
The medium
As the conduit/channel for the message, the medium (or particular vehicle) and its nature and
characteristics are of crucial importance to marketing communicators whether this be a
newspaper, a trade show or a sales person (messages are often viewed as mediated or
unmediated if a sales person or advertisement is used respectively. The medium or media vehicle
might be, for example, an upmarket, glossy magazine. The advertisement might well use
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references to (say) the works of Cezanne to sell crystal glass products. This would require a
certain knowledge of painting etc. (even if only gained through simplistic magazine articles!) on
the part of the reader in order for the advertisement to work on that reader. In other words, as
McCluhan said a long time ago, ‘the medium is the message’ - or at least part of it. The medium
element of the marketing communications process can in turn be broken down into constituent
parts. (Refer back to theme 4).
Decoding
This involves the deriving of meaning from the received message that is a composite of the actual
message sent and any influences the medium may have had upon it. If the receiver does not
understand the message or does not interpret it in the way it was meant then communication will
be faulty. Many feel that in marketing communications terms there is a need for clarity and
simplicity where, for example, key selling points are understood.
Recipient/Receiver
The receiver is normally the person or people, organisation (hence the reason why some authors
use the catchall DMU, decision making unit) that the sender wishes to share thoughts, ideas etc.,
with. This, of course, will not always be the case since clearly others will receive the message that
is not intended for them. The receiver might understand the message but might ignore or forget it.
In marketing communications circumstances some believe that repetition can ‘educate’ the
customer/consumer over a period of time.
Feedback
This loop of the process provides the sender/source with a channel of evaluation of the message
encoded and sent first in terms of how accurately the message has hit the target and second in
terms of the degree of correctness of interpretation on the part of the recipient/receiver from that
which was intended. This then allows the sender/source to correct any ineffectual or misdirected
messages. Typically viewed in marketing terms as a marketing research opportunity, this involves
straight forward activities like coupon redemption in sales promotions but also things such as
awareness scores, image studies, tracking studies and so on some of which may be continuous
rather than ad hoc.
Noise
Noise, interference or impedance are terms often used interchangeably to describe the blocking
or distortion of the message at any stage in the marketing communications process. This can take
many forms from the poor signal on radio or television resulting in poor sound and/or vision to the
lack of knowledge which causes a consumer to be unable to fully understand. This can therefore
be physical or cognitive and can be anything from interruption by a secretary to the shear amount
of clutter in a newspaper or magazine.
Realm of understanding/Field of experience
This is often included in representations of the marketing communications process to indicate the
possibilities of overlap between sender and receiver so that 100% commonness of field of
experience (what Shimp 1997 calls 'perceptual field') is a possibility.
NOTE: It is in the areas of noise and realm of understanding/field of experience that one could
add to the above diagram an international perspective that describes the complexity of
international advertising/marketing. Clearly the propensity for mistakes is higher when dealing with
unfamiliar environments etc. The Toyne and Walters (1993) conceptualisation of the sender-
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receiver model adds language, culture, social, economic, legal/regulatory, competitive and noise
differences
Managing international communications
A managerial approach to selecting the routes and methods of communication necessarily
means one has to:
- Understand how an organisation communicates with its markets
- Identify any mismatch between the organisation and customers
- Brief internal and external agencies
- Identify and exploit buyer motivations in a given market
- Determine the optimum communications mix for a given company/product/market situation
- Plan the company response to consumer feedback
Only by analysis of the problems raised in the marketing communications process can an
organisation begin to communicate effectively with its market(s). At the same time
communication, like so many things, has to be managed. Below is a tried and tested model
that enables just this.
DECISION SEQUENCE MODEL
Copley (2004), Fill (1995, 1997, 2002) and many other texts illustrate and use the decision
sequence model. This is the epitome of APIC (Analysis, Planning, Implementation and Control).
The approach involves is a commonly used ‘model that deals with both the 'art' and 'science'
aspects of communication. The decision sequence imposes a managerial framework on a
process that is often otherwise conducted by `the seat of the pants'. Here a vertical representation
is used (which is the commonest form) but be prepared to consider Shimp’s (1997) offering which
is horizontal, but means essentially the same thing.
i. Situation Analysis (You will have noticed that Fill calls this ‘Key Factor’ Analysis) is necessary to
guide the assessment of the problem, the "current state of the world", the "where are we now"
review. This requires:
An assessment of the Consumer



Descriptors - Segmentation, the target market
Perceptions - Product, Competition
Processes - Decisions, where, how, in store? at home?
An assessment of the Product Class




Consumer perceptions
Attributes and benefits of the product
How well brands perform
Uniqueness offered
An assessment of the Company/Organisation (Strengths, Weaknesses)



Corporate goals and philosophy
Financial and production capabilities
Marketing support - distribution, sales etc.
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An assessment of the environment (Opportunities, Threats) - usually found in PEST/STEP form.
Patterns around the world
Most authors deal with this to some degree, usually in the area of advertising statistics. The
inference is that there is a positive correlation between advertising expenditure and stage of
economic development. Types of media availability vary enormously around the globe and that is
not just a function of economic status. There is however a good correlation between economic
status and the number of television sets per capita (De Mooij 1994).
Ethical and regulatory questions have to be addressed (see theme 6). The social benefits of
advertising - or the reverse - are particularly sharpened in the international context. the issues
include: economic value; competitive practices; consumer protection. (see especially Toyne and
Walters, 1993, for a useful synopsis of this).
Uniformity or not?
The organisation may or may not have to adapt or customise or modify creative/message strategy
(see theme 5) because of local differences socio-culturally, economically, legally etc.. - and the
availability - or not - of particular media and media vehicles (theme 4). The central debate remains
that of degree of uniformity. The pros and cons are obvious: economies of scale, consistent
message across markets, centralised control; different market characteristics, media availability
and costs and government regulations. The argument appears not capable of being settled since
different strategy appears to work in different situations. Once these geographical issues are
decided upon then the scope of the campaign, objectives and elements of strategy can be worked
on.
International marketing research
While the basic techniques remain the same internationally as they are domestically, a number of
issues arise on the international scene. Its perhaps useful to think here in terms of:

Secondary research - where statistics do not match across borders problems arise. Examples are
wealth, household size, size of the family, age, and discretionary income/purchasing power. The
notion of ‘equivalence’ is a useful one,here (see Toyne and Walters chapter 11). Omnibus surveys
as conduct by for example Newsweek or research agencies have become me an important part of
the scene.

Primary research - research that is commonplace in Europe is problematic elsewhere in the world
either because the products are sensitive or it involves the role status of women or literacy to name
but a few examples. The problems are mostly cultural but can also involve the media infrastructure
and other issues such as the mail service that can hamper the way research is conducted. Lifestyle
studies as offered by agencies such as Neilsen and Young and Rubicam (theme 3) have a particular
significance for the development of advertising messages and symbols.
(See Mueller chapter 8 or de Mooij chapter 10. The Toyne and Walters text, chapter 11, is
particularly useful).
ii. Objectives and Positioning. - the next step in the DSM looks at objectives which are involved
with direction, "where do we want to go". There is a need for a clear statement of the 3 Ts i.e.
Target market, Time deadline, Task of message. Positioning describes how the target should
perceive the product relative to the competition. Smith (1997) uses SMART - specific,
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measurable, achievable, relevant, timed. Most if not all writers would agree with this and the fact
that the role of objective setting is to constrain strategy and help eliminate the large number of
strategy options. MBO -management by objectives - is as old as time but the 1950s is as good as
any an era to mention in the same sentence as people like Peter Drucker.
Objectives give direction, are a means to performance measurement and are consistent with time
management. In marketing communications terms, the DAGMAR model is perhaps the best
known of the hierarchy of effects. This stands for designing advertising goals for measured
advertising results. This looks to measure the result of a specific communication task in terms of
the think-feel-do/cognitive-affective-behavioural hierarchy of effects on a defined audience with
attempts to measure the degree of change in a given time period as one moves through the
hierarchy. An example might be to make 70% of the target audience aware of the new product
and to achieve a 50% understanding of the proposition with 40% convinced but the expectation
that when it comes to it 20% will purchase in the first period.
Marketing and marketing communications objectives
The distinction between the two should be clear. In the above simple example the marketing
objective is to achieve 20% market share in the first trading period (say) year. The marketing
communications objectives to help achieve this could be many and varied with the first being
creation of 70 % awareness through (say) advertising but for conviction a combination of
advertising and public relations may be used. As we move towards purchase sales promotion
could very well have a role and so on.
NB. Shimp in chapter seven provides an excellent link between targets and objectives and
the adoption and diffusion of innovations (after Rogers).
Positioning
This means seeing things from the customer’s perspective (and sometimes vis-à-vis the
competition). It consists of all action taken to make sure that the marketplace’s perception is
managed. Strategic positioning is a result of communicated perceptions about a product or brand
(image is a more global impression). Position involves product attributes/features with related
perceived or otherwise benefits which can be seen in the statements made about the
product/brand in marketing communications whether this be verbal or non-verbal (or both). BMW
thus becomes ‘the ultimate driving machine’, Volvo is first of all safe, then has longevity and now
is well designed. There are many ways to achieve positioning: through actual attributes; through
benefits/solutions to problems; through price/quality; and so on.
In terms of developing a positioning strategy, Hiam and Schewe (1992) offer a seven point
system:
1. Determine relevant product/market - or more than one if applicable
2. Identify the competition - whether primary (Perrier versus other bottled water) or secondary
(Perrier versus other soft drinks)
3. Determine how consumers evaluate options - marketers must understand the standards by
which consumers evaluate and reach decisions
4. Learn how competitors are perceived - based on the same kinds of parameters.
5. Identify gaps in positions held - this helps pinpoint gaps that are attractive and that are not!
6. Plan and carry out the position strategy - design a programme
7. Monitor the position - seek to check for adjustments
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Upmarket, Classy
x
x
Porsche
Mercedes
x
BMW
x
Volvo
x Honda
Conservative
Sporty
x
Ford
x Toyota
x
x Nissan
Hyundai
Practical, Affordable
A typical perceptual map of the UK car market.
Rothschild (1987) proposes several strategic issues for positioning/repositioning that emerge:
1. Consider relevant targets - it is better to dominate a segment than to try to be all things to all
people.
2. Consider the entire product line - position products/brands so that the portfolio is optimised
3. Consider alternative bases - as earlier.
Positioning is achieved in a variety of ways. Features and benefits can be used, need or usage
occasions, against another brand or product class and so on. This is qualified by whether the
brand is leader or follower (never attack the leader straight away), the current positioning of
competition, resources available.
iii. Strategies: This is the "how do we get there?" question. These have to be created and coordinated even when developed independently. The basic marketing concept and mix and their
meaning to the organisation was dealt with in effect in themes 3 and 4. Marketing communications
can be defined as "every form of communication relevant to marketing" and "invites marketing
management to question the efficiency of every item of communication as it relates to and affects
the whole strategy".
Tactics
This consists of the basic communications mix and their derivatives as the requirements for
effective communications and customer understanding. This requires an explanation of the
product/service/organisation in order that comprehension is achieved. Marketing Communications
therefore involves many things e.g. legible 'phone numbers on letterheads, brand name for display
on packs etc., product/brand image via price/imputed quality, shape/design of container for
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recognition on television, shelves etc., colour of product/pack, easy-to-follow instructions which
leads to customer understanding and better positioning of the company/brand. The basic
marketing mix usually includes promotion as a fundamental element but this in itself is a mix of
elements. The basic communications mix consists of
MEDIA ADVERTISING
SALES PROMOTION
PUBLIC RELATIONS
PERSONAL SELLING
CORPORATE PR (as opposed to marketing PR)
DIRECT RESPONSE MEDIA (direct marketing)
Source: Fill (1995).
This is forever developing and mutating. Corporate PR is probably at this point in time seen as
being of greater import than product/marketing PR. The optimal mix is determined by factors such
as degree of control, cost, credibility, size and geographic spread of target audiences. Less
mainstream ideas, for example language and meaning (including the usefulness of semiology/
semiotics), might well be considered by the not-so-faint-hearted manager. De Mooij (1994) refers
to ‘one tone of voice’ that reflects the notion of' ‘Gestalt’ or ‘the whole is more than the sum of the
parts’ in terms of what integration means i.e. consistency in brand development for brand loyalty;
synergy of effort or spend; closer client/agency relationship. This will take teamwork rather than
empire building and a means of effective measurement (see IMC later).
De Mooij views international advertising as being much less culture bound than the rest of the
communications mix. (With business to business marketing this is not so. Direct marketing has
been used for some time internationally, as have trade fairs. Sponsorship, especially of
international and global sporting events like the Olympic Games and (soccer) World Cup, has
long provided a means to strengthening brand awareness and image and providing "single tone of
voice" world-wide. It has become clear that in the last 20 years media advertising has seen less
spend in favour of (especially) sales promotion. In 1976 the media/non-media spend ratio was
60/40. Now this is more like 30/70 (see Mueller, De Mooij, Kotler, Fill and many other sources).
There is also a trend toward using a wider range of methods both nationally and internationally.
Sales promotion (Including international trade fairs, exhibitions, congresses) is about added
value. Devices like coupons or competitions should add to a brand above and beyond its normal
value. In consumer terms there are both tactical, short-term promotions and longer term, strategic
promotions. De Mooij calls the former “classical” and the latter “value”. Classical promotions are
the short-term type that we are all very used to. They are usually applied in a very localised
fashion often varying within a particular country or region. Exceptions to this rule are things like
samples in magazines e.g. of perfume in a sachet, which can be used in the international media.
Value promotions are more to do with image. They are thematic, integrated with media ads/direct
marketing/PR/sponsorship. The changing relationship between manufacturer and retailer is
important here. The trend appears to be toward the more strategic use of SPs, integrating with
thematic ad campaigns, sponsorship etc. whilst at the same time short term tactical SPs are being
used locally. For De Mooij the challenge for integrated marketing communications is to link these
two - the global, strategic approach with the local tactical approach in order to maximise
communication effects.
Vignette - Natrel-Plus (Gillette)
The thematic approach embodied the " round-the-clock protection" idea for this deodorant and used a pan-European TV
campaign. Strict product positioning was maintained and while promotional material was developed on a local level, the
artwork etc. was controlled centrally. Watches and clocks were controlled centrally and used as free gifts to tie in with the
theme. POS material was adapted for local conditions. The object was two-fold i.e. to achieve trial and to strengthen
brand image. The three major elements were a special trial could offer, a special smell test and the chance to win a
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holiday at Club Med's Club Natrel in Turkey. The latter was in keeping with the healthy image of the brand. Overall the
campaigns main strength was its creative consistency. Internationally SPs are prone to problems. Price promotions are
not acceptable in some countries. Links with gambling and lotteries are problematic. Links with good causes are
generally prone to success.
Source: de Mooij.
Trade fairs can be either the broad, general, annual event like the Hannover Fairs or rather more
specialised events like the International Materials Handling Exhibition. Such events can be very
important international media vehicles if the company is at the export stage where market
possibilities can be explored before committing, products can be seen, tried, tested,
demonstrated. The trade element is obvious as is the integrated nature of communications
around such events. Measurement of effectiveness remains a challenge.
Public relations (PR) can be viewed as corporate or product/market. Basically the former deals
with corporate image and has become more and more important internationally as borders blur.
PR is particularly important to organisations like Exxon, Shell etc. in relation to the environment.
PR is becoming more similar throughout the world. The media (including the internet and
especially news groups/bulletin boards) may play a crucial role. At the product/market level PR
was originally supposed to be different from other communication. Theoretically its aim is to
create goodwill, understanding - a favourable marketing environment in which the rest of the mix
can operate more effectively. Good PR can therefore save the organisation money, easily pay for
itself. There are many potential publics both internal and external to the organisation but in
particular the media are important in terms of presentation. Credibility is often much higher with a
PR message rather than advertising which is partisan in nature. News, whether real or made up,
is crucial to PR. Publicity is never free (just like the lunch) but some see it as a cheap, quick way
of getting known and even selling directly. But just as with politicians, spin doctoring alone is not
enough. You really do in the end need good policies/products. De Mooij (1994) uses Bodyshop
International as an example of PR as a key tool in global communications whereby community
links based on compANY FOUNDER Anita Roddick’s beliefs.
Sponsorship includes relationships with events or clubs, persons or institutions etc. These are
not new. Mostly, sponsorship is to do with enhancing corporate image. Sometimes it is to do with
circumventing advertising regulations (especially alcohol and tobacco). There are many
advantages to the use of sponsorship which advertising cannot offer. It is much more personal.
Corporate hospitality can enhance reputations and images of companies, brands and individuals.
De Mooij (1994) gives useful, brief examples from the arts, sport, causes and education. In
particular there is a vignette of the Olympic Games generally and the Seoul Olympics in particular.
De Mooij also covers the difficulties of measuring the effects of sponsorship, not least because it
seems that if a brand is well known then the affect appears to be less than it would be for a less
well-known brand. There is also the relationship with advertising to consider.
Direct Marketing is an area that is, of course, on the up. Database Marketing is often substituted
for this term but DM is more than this. It includes TV, print/off-the-page, radio, mail, tele(phone),
internet. Internationally the drawbacks are things like underdeveloped
infrastructure/communications/media - e.g. poor mail service - but also levels of literacy and other
such environmental considerations. Of course business-to-business marketing utilises DM a lot
for the obvious target groups that have been relatively easy to access for years, particularly with
the sales effort. Direct mail has been well used over the years to aid personal communication that
is made a lot easier if the ground has been prepared. This is particularly the case with export
selling. De Mooij gives a number of cases where DM has been used as an integral part of an
integrated communications campaign. The obvious links between trade fairs, DM and personal
selling at the international level are made on p.365 of de Mooij.
There are problems however. Direct marketing and in particular direct mail can only be used in a
standardised way if, for example, decision making units in each country market are similar,
attitudes toward what is often seen as an intrusion differ and so on. The English language, seen
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once more as the international language, can only be used in certain situations. Poor standards
that have led to junk mail, junk 'phone calls and perhaps junk netiquette threaten the positive
aspects of DM.
Personal Communication (Including Selling and Representation) - some of the above points are
relevant here. Clearly at the international level trade fairs, direct mail and certain kinds of
international advertising and publicity are particularly important. At the motivational level,
incentives, often grouped with sales promotion, are critical as are sales conferences that exist to
aid the sharp end. Sales people need encouragement but also information - on how the rest of the
mix is working, on data bases, on new promotional material and how to use it, on product
knowledge and back-up.
iv. Budget needs to be realistic, within resources. As strategies are developed, budget constraints
need to be considered. There may be a need to change objectives/strategies.
v. Implementation needs to be considered in a test market fashion before full-scale
commercialisation.
vi. Evaluation is necessary in order to find out if objectives are being achieved. This then merges
with a new situation analysis.
The future of agencies and integrated marketing communications
A simplistic view of how IMC works is to concentrate solely on communications elements working
together with a “unified message”, where below the line supports above activity and vice versa.
This is the drive toward cost-effectiveness and “careful planning creates marketing
communications synergy which reinforces a consistent message or image in a cost effective
manner” (Smith 1993). But what is IMC really? As Massey (1994) suggests, the future of
marketing communications seems to be integration just as it was synergy in the 1970s and pan
Europeanism in the 1980s. This is perhaps so. But many would see integration as synergy, and
the possibility of pan European advertising being allowed by a synergistic or integrative approach.
Brown (1996) lists eight possible themes to explore the question “what is IMC?”:
1. Attitude of mind. IMC is an attitude, not a science. Brown says this is of no help.
2. One spirit. The single theme to support the brand, the intellectual message. Brown says this is
overly-simplistic, where ‘one voice, one look’ doesn’t account for complexity.
3. One strategy. Of the marketing and then promo mix - a single communications strategy which
embraces what it needs to achieve objectives.
4. Synergy. A unified message where each part reinforces the others, each drawing from each
other.
5. Equal status. The ‘line’ has gone and the mix is dictated by the brief, not the agency.
Advertising’s dominance is being challenged.
6. Merging disciplines. Or blurred edges since a lot of say advertising contains PR or SPs, despite
some hostility between marketing and PR in the past. (see also Kitchen 1993).
7. Stakeholder emphasis. But IMC is not a panacea.
8. Marketing orientation. Understanding clients needs and how to satisfy them via IMC. (see also
Schultz 1993).
The above is, in itself, rather unhelpful. However the notion that a drive toward IMC and branding
without consideration of the customer is short sighted is, at the end of the day, a reiteration of
1950s and 1960s Levitt-style marketing myopia. The future lies not with outdated constructs that
related to mass communication but with dealing with the increasing fragmentation of the mass into
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one-to-one situations - or something near this. The client-agency difficulties are potentially the
biggest area of concern. Until agencies understand and serve clients needs better in this
fragmented rather than mass world then this will not be resolved. There are a number of
questions one can ask in this area. The answers to these are attempted, but some questions
remain unresolved here, which are outlined below.
WHAT DRIVES IMC?
1. Financial factors. Schultz (1994) suggests:
- the recession
- the trend toward pay by results
- restructuring of how agencies are paid re billing/income/profit
- pressure to reduce media billing
- media fragmentation
all have contributed toward consideration of IMC.
2. The sophisticated client. Most commentators would agree that clients are a lot more
sophisticated and knowledgeable than in the past. The mystique of advertising is diminished and
a power shift occurred.
3. Disillusionment with the brand, advertising and agencies. In a similar vein to the above, own
labels are stronger, advertising less revered and other elements of communications deemed
important. Agencies have had to change, but should see this as a set of opportunities not threats.
4. Power shift to retailers generally and what they need/expect has meant more spend on below
the line.
5. Environmental factors such as the new media, attitudes toward modernist marketing etc. have
changed the way in which communication is viewed.
THE BENEFITS OF IMC
Linton and Morley (1995) provide a clear list of benefits of IMC to organisations (at the same time
they admit that IMC may not be for all organisations). These are:
1. Creative integrity - theme and style consistent throughout, therefore impact not confusion. Can
aid campaign build-up and provide materials for other uses.
2. Consistency of messages - following on from 1. above, straplines and other parts of the
message can provide the basis for reinforcement, reminder leading to the development of the key
message, visual standards, use of company colours consistently etc.
3. Unbiased recommendations - usually through one agency, “through the line” with no worries
about earning commission from advertising billing only. Seek objectivity from start.
4. Better use of all media - allow each to work with each other to get the best out of all of it.
5. Greater marketing precision - via data bases and information processing generally. Allows the
use of different elements to achieve different objectives.
6. Operational efficiency - Takes fewer people , can be a single interface and so less conflict.
Simple compared to the potentially messy multi-agency situation.
7. Cost savings - re. admin., rationalisation of materials, artwork etc.
8. High calibre service - to all areas. IMC means professionalism for below-the-line as well as
above. Overall service improved “through the line”.
9. Easier working relationships - One agency means no new learning curves because of
knowledge of the client’s business, simplified admin., no re-learning but ongoing, consistent.
10. Agency accountability - This has to be true if only one agency is used. Value for money should
result.
WHO BENEFITS FROM IMC?
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- Agencies. If they change to meet needs of clients i.e. if they apply good marketing practice to
themselves. There are lots of opportunities - multimedia etc.
- Clients. The principal argument here is that it was high time anyway that clients made their
budgets work harder for them.
- Consumers. If consumers don’t benefit then the full benefit of IMC has not been passed on.
There is not real evidence as yet as to whether the consumer is benefiting.
WHAT INHIBITS IMC?
- Lack of a clear definition. There is some debate as to just what IMC really is. Practical
difficulties, for example the complexity of different objectives being achieved by different strategy
and tactics, don’t help. Implementation can be very difficult to achieve.
- Cultural factors. The main factor is change, or resistance to it. The culture of the organisation for
example may be hung up on flashy ads on television. Or it may be that sales promotions have
been the norm, linked to bonuses. Any change would be accompanied by conflict.
WHERE IS IMC GOING?
- Agencies. Agencies are going to have to add value beyond media buying and creativity. New
structures are emerging. Agencies must seize this as an opportunity.
- Clients. The importance of continuity and depth of relationship will remain or get even stronger
resulting in a situation akin to relationship marketing which has implications for the role of senior
management.
AGENCY SELECTION
The selection of an agency to deal with marketing communications - particularly advertising - will
depend upon the type of company i.e. its level of international involvement and it organisation.
Where standardisation is prevalent the company will increasingly choose an international agency
rather than use a domestic one or local one. There are many reasons for this e.g. economic i.e.
where agencies don't exist in say 3rd world countries. On the other hand where experience of
culture etc. is necessary local agencies may be a better choice. The usual criteria operate market coverage, quality of coverage and supporting activities (full service?). Most texts provide
lists of the typical multinational agencies and there activities. Such organisations provide
centrality, have experience of the culture etc. (or can buy in the services of a local agency) and
usually have research experience in many locations.
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