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International Marketing
15th edition
Philip R. Cateora, Mary C. Gilly, and John L. Graham
Introduction
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• Integrated marketing communications (IMC) are
composed of advertising, sales promotions, trade shows,
personal selling, direct selling, and public relations
• All these mutually reinforcing elements of the marketing
mix have as their common objective the successful sale of
a product or service
• For most companies, advertising and personal selling are
the major components in the marketing communications
mix
• The goal of most companies, large and small, is to
achieve the synergies possible when sales promotions,
public relations efforts, and advertising are used in
concert
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Sales Promotions
in International Markets
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• 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
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International
Public Relations
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• 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
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Bridgestone/Firestone Tires safety recall
Global workplace standards
Building an international profile
Corporate sponsorships
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International Advertising
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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
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Advertising Strategy and Goals
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• Marketing problems
– Require careful marketing research
– Thoughtful and creative advertising campaigns
• In country, regional, and global markets
• Increased need for more sophisticated
advertising strategies
• Balance between standardization of advertising
themes and customization
• Consumer cultures
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Product Attributes
and Benefit Segmentation
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• Different cultures usually agree on the benefit of the
primary function of a product or service
• 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
• Each has its own set of differences
• Each will require a different marketing approach
and strategy
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Regional Segmentation
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• Pan-European communications media highlights
need for more standardized promotional efforts
• Costs savings with a common theme in uniform
promotional packaging and design
• Legal restrictions slowly being eliminated
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Legal Constraints
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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
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Linguistic Limitations
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• Language is one of the major barriers to effective
communication through advertising
• Translation challenges
• Low literacy in many countries
• Multiple languages within a country
• In-country testing with the target consumer
group avoids problems caused by linguistic
differences
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Media Limitations
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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
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Campaign Execution
and Advertising Agencies
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• 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
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International Control
of Advertising – Broader Issues
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Consumer criticism
Deceptive advertising
Decency and blatant use of sex
Self-regulation
Government regulations
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Summary (1 of 2)
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• An integrated marketing communications (IMC)
program includes coordination among
advertising, sales management, public relations,
sales promotions, and direct marketing
• Currently companies are basing their advertising
strategies on national, subcultural, demographic,
or other market segments
• The major problem facing international
advertisers is designing the best messages for
each market served
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Summary (2 of 2)
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• The availability and quality of advertising media
vary substantially around the world
• Advances in communication technologies are
causing dramatic changes in the structure of the
international advertising and communications
industries
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