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Principles of
International
Marketing
Chapter 12
Marketing
Communication
9th Edition
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.1 - The Marketing Communication
Process
Sender
(Encodes
Message)
Message
Channel
Message
Receiver
(Decodes
Message)
Noise
Feedback
Communication
Outcome
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Marketing Communications Process
• Encoding - Converting the message into symbolic
form that is properly understood by the receiver.
• Message channel - The path through which the
message moves from the sender to the receiver.
• Decoding – Process of transforming message
symbols back into thought.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Marketing Communications Process
• Noise - Extraneous and distracting stimuli that
interfere with the intended accurate reception of a
message.
• Outcome - Determined by how well objectives have
been met in generating more awareness, a more
positive attitude, or increased purchases.
• Feedback - Necessary to analyze the success of the
communications effort.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Negotiations
• The two biggest dangers faced in international
negotiations:
– Parochialism - The misleading perception that the
world of business is becoming ever more American
and that everyone will behave accordingly.
– Stereotyping - Generalizations about any given group,
both positive and negative.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Negotiations
• The use of Internet in international negotiations allows the
exporter to
–
–
–
–
–
Overcome distances.
Minimize social barriers.
Obtain instant feedback.
Negotiate from a home base.
Negotiate with a number of customers simultaneously.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Negotiations
• The process of international business negotiations
can be divided into five stages:
– Offer
• Allows the parties to assess each others needs and
commitment.
• The initiation of the process and its progress are
determined by background factors of the parties and the
overall atmosphere.
– Informal meetings
• To discuss the terms and get acquainted.
• It may be necessary to utilize facilitators (such as
consultants or agents) to establish the contact.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Negotiations
– Strategy formulation
• Review and assess factors to be negotiated.
• Prepare actual give and take of the negotiation.
– Negotiations
• Depend on the cultural background and business
traditions prevailing in different countries.
• Two approaches are used for negotiations: competitive
and collaborative.
– Implementation
• The choice of location for the negotiations and the
negotiator characteristics play a role in the outcome.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Negotiations
• A combination of attitudes, expectations, and
habitual behavior influences negotiation style.
• Approaches used for adjusting to the style of the
host-country negotiators:
– Team assistance use Expert ,trained members
– Traditions and customs carefully noticed with help of
consultant or local
– Language capability
– Determination of authority limits
– Patience needs more time
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Negotiations
• Approaches used for adjusting to the style of the
host-country negotiators:
–
–
–
–
–
Negotiation ethics vary from culture to culture
Silence a technique used to decrease price Japanese
Persistence be patient to get a deal
Holistic view concessions come later
The meaning of agreements
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.2 – Steps in Formulating
Marketing Communications Strategy
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
• 1. assessing what companies or product
characteristics and benefits should be communicated
e.g. Volvo used safety and quality as a them in
promotional campaign
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Marketing Communications Strategy
• Promotional mix - Tools available to the
international marketer for creating a total
communications program for use in the targeted
markets.
• The promotional mix consists of advertising, personal
selling, publicity, sales promotion, and sponsorship.
• The choice of tools leads to either a push or a pull
emphasis in marketing communications.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Promotional Mix
• Push strategies - Focuses on personal selling;
considered useful for marketing industrial goods
which have shorter channels of distribution.
• Pull strategies - Depend on mass communications
to reach target audiences over long distribution
channels.
• Integrated marketing communications Coordinated use of a broad range of promotional
tools to reach a target market.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Communications Tools
• Business and trade journals and directories
– The two main concerns when selecting media are
effectiveness in reaching the target audience and
efficiency in cost minimization.
– In deciding which publications to use, the exporter
must apply the general principles of marketing
communications strategy.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Communications Tools
• Direct marketing
– Establishes relationship with a customer in order to
initiate immediate and measurable responses.
– Accomplished through direct-response advertising,
telemarketing, and direct selling.
– Direct mail can be a highly personalized tool of
communication if the target audience can be identified
and defined narrowly.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Communications Tools
• Direct marketing
– Telemarketing (including sales, customer service, and
help-desk-related support) is flourishing due to
telecommunication systems and deregulation in the
industry.
– Database marketing allows the creation of an
individual relationship with each customer or prospect.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Communications Tools
• The Internet - Supports the exporter’s marketing
communications in the following ways:
– Allow the company to increase its presence in the
marketplace.
– Communicate information about its marketing mix.
– Allow 24-hour access to customers and prospects.
– Improve customer service.
– Allow the exporter to gather information for subsequent
marketing efforts.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Communications Tools
• Trade shows and missions
– Trade show is an event where manufacturers,
distributors, and other vendors display their products or
describe their services to current and prospective
customers, suppliers, other business associates, and
the press.
– Exporters may participate in general or specialized
trade shows.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Communications Tools
• Personal selling
– Involves high costs per contact.
– Provides immediate feedback on customer reaction as
well as information on markets.
© 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.