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International Marketing Communication For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter Outline How is international marketing different from global marketing? How does culture affect marketing communication strategies? How are international markets segmented and targeted? How do marketers plan international message and media strategies? For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Chapter Perspective International marketing requires a delicate balance: Adapting brand messages to local cultures… …while maintaining strategic brand consistency For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Opening Case: Whiskas For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Opening Case: Whiskas Challenge: Restore declining market share An IMC program featuring: Answer: Results: The “Tiny tiger” campaign theme, delivered via: • TV, radio, print, outdoor advertising • In-store promotions and POP activities • Direct marketing • Sales force training programs • Market share began to grow again • Won an Advertising and Marketing Effectiveness award For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin How Is International Marketing Different From Global Marketing? Domestic (or National) Marketers International Marketers Global Marketers For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Key Challenge For International Marketing How does culture influence customer behavior in response to brand messages? Cultural differences are less for products that are: • New and complex, including many industrial products Cultural differences are greater for products that are: • Established, simple, and tied to the local culture For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Figure 21-1 For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Culture Context The nonverbal elements surrounding a message carries meaning and is a significant part of the message Low-context countries: more emphasis is placed on words, directness, and time (deadlines and schedules) High-context countries: meaning is determined by nonverbal cues, social relationships, and indirect communication such as metaphors and aphorisms For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Cultural Dimensions Power Distance Uncertainty Avoidance Cultural Dimensions Feminine Vs. Masculine Collectivism Vs. Individualism For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Figure 21-2: Cultural Profiling + For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Cultural Sensitivity Cultural Imperialism Media Cultural Sensitivity Cultural Mistakes Exploitation For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Think About It • Try for a moment to think like a person from another nation. • From that mindset, how would you view McDonalds and WalMart in relation to local restaurants and stores in your country? For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin How Are International Markets Segmented And Targeted? By Geography Three Methods By Level of Development By Cultural Cohort Group For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin International Messages And Media Strategies Messages Standardization (global) strategy • Using the same basic basic brand message in all countries Localization (multinational ) strategy • Customizes brand messages to make compatible with each country’s culture and local needs and wants For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Insight: International MC Organization IBM is a large marketer with operations around the world. Although it has a director of marketing in most major countries, the advertising and promotions used by these directors are tightly controlled by IBM’s international headquarters in New York. Local managers can often control the scheduling of their MC programs, however, the look and sound of the messages may not differ much from country to country in order to reinforce brand message consistency—and because computers are not a highly culturally sensitive type of product. For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Figure 21-4 For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin International Messages And Media Strategies Use UseLocalized Localize Media MediaAvailable Availablein in Each Country Strategies Use International Publications and Satellite TV, Whose Footprints Cover Regions of the World Participate in Programs With Global Audiences For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Media Issues Media Convergence Media Regulation For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Figure 21-5: The Standardization Model + For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin IMC In Action: South Africa For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin IMC In Action: South Africa Challenge: Answer: Results: How to promote brands in a developing nation Employ non-conventional media techniques: • Introduce branded products at local events • Focus on entertainment, celebrations, and cultural events • Events get brand contributions at no cost • Brands introduced to customers who do not have access to traditional media For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Tales From the Real World One of the advantages of the large global MC agency networks is the standardized way some approach client problems from country to county. The J. Walter Thompson agency, for example, has adopted a worldwide strategic approach called “Thompson Total Branding.” Specifically, JWT personnel in Chicago can e-mail a message strategy brief for a client there to the Kuala Lumpur office, and JWT personnel there will know immediately how to develop local creative uniquely suited to the Malaysian audience—but employing the same basic strategy the client uses in America. For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin The Global IMC Concept Coordination Horizontal coordination (across countries) Vs. Vertical coordination (across MC functions; ads, PR, etc) Appropriate Strategies to Pursue Standardized (global) Vs. Adapted (multi-national) For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Final Note: Think Global Act Local For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin