Download DIRECT MARKETING and e

Chapter 7:
THE INTERNATIONAL
ENVIRONMENT FOR
PROMOTION
and
IMC
7.1
Cultural Communications

Culture - Total Way of a People, the Social Legacy the
Individual Acquires from His or Her Group

Culture is Typically Invisible to Those Who are Immersed In It,
Making Communication Across Cultures Difficult
7.2
Importance of International Communication

Complex Social, Political & Economic Changes
Affect International Communications Environment.
 International Developments Relevant to the Rise in
International Commercial Communications:

Development of Trading Blocs - May be Prelude to
a Rise in Nationalism

Loosening of Political and Economic Constraints
7.3
Importance and Rise of International
Communication (con’t)

Liberalization of the Flow of Labor and Increase in
movements of Peoples Across Borders

Growing Size of Ethnic Groups From Elevated Birth
Rates

Rise of Cultural Borders and Barriers even as
Economic Barriers Begin to Fall
7.4
Overcoming Cultural Barriers in
International Promotion

Barriers to Creating Successful International Promotions

Ethnocentrism

Self-Reference Criterion
7.5
How Might This
American Ad Be Viewed
as Ethnocentric
7.6
Overcoming Cultural Barriers in
International Promotion (con’t)

Cross-Cultural Research Helps Overcome Barriers
 Secondary Data - Data Gathered by Someone Else
for Some Other Purpose
 Primary Data - Specific Data Collection Unique to a
Promotional Situation
 Economic Conditions
 Demographics Characteristics
 Values
 Custom & Ritual
 Product Use & Preference
7.7
Challenges in International Advertising

Creative Challenge

Media Challenge
 Media Availability
 Media

& Coverage
Costs & Pricing
Regulatory Challenge
7.8
International Markets
Prefer Different Creative
Executions
7.9
Challenges in International Sales Promotion,
Direct Marketing and e-Commerce
CHARACTERISTICES OF THE PRODUCT
 Product Prevalence & Use
 As Competitive Environment Becomes More
Complex, Advertising Designed to Differentiate
Brands will Become More Predominant
 Products Moving into Growth Stage will Need to be
Differentiated
7.10
Challenges in International Sales Promotion,
Direct Marketing and e-Commerce (con’t)
LEVEL OF ECONOMIC DEVELOPMENT


All Forms of Production & Direct Marketing are Applicable in
Highly Industrialized Markets
In Less Developed Countries - Lack of Wide Range of
Consumer Goods & Low Income Make Promotion a Non Issue
 Few Competitors Serve these Markets
 Low Literacy Make Communication Difficult w/Print Media
 Without TV, Radio & Newspaper, Direct marketing is
Undermined
 Unsophisticated Mail Systems
7.11
Challenges in International Sales Promotion,
Direct Marketing and e-Commerce (con’t)
LEVEL OF ECONOMIC DEVELOPMENT (con’t)
 Newly Industrialized Markets – Better Environment for
Promotional Tools – Must be Managed Carefully
 Consumer Income Rises – More Consumer Goods are
Introduced and Succeed
 As Media Proliferate, Sales Promotions and Direct
Marketing can be Introduced Based on Market-byMarket Assessment
7.12
Challenges in International Sales Promotion,
Direct Marketing and e-Commerce (con’t)
STRUCTURE OF TRADE CHANNELS

Highly Developed Distribution & Retailing Systems – Trade Channel Members
Demand Support or Carry Marketers Brand

Trade Allowances, Incentives, Point-of-Purchase Displays & Sampling
Must Have the Means to Handle Coupon Redemption or Premium Distributions
Less Developed Trade Channels – May Not be Able to Use Traditional Promotional
Techniques
 Fragmentation of Trade Channels
 Retailers - No Way of Handling Coupons
 Some Countries So Small May Not be able to Handle Point-of-Purchase
 Trade Show


7.13
Challenges in International Sales Promotion,
Direct Marketing and e-Commerce (con’t)
REGULATIONS

Regulation of Promotion, Direct Marketing, and
e-Commerce Varies Widely Market-to-Market
 Most Sales Promotion Tools are Legal Across Europe
 Sweepstakes are Either Heavily Banned or Regulated
in All European Markets
 In Japan – Value of Premium Offered with a Product
is Limited to 10% of the Value of the Original Price
7.14
Promotions in
International Markets
Must be Researched for
Regulation and Legality
7.15
Challenges in International Public Relations
COMPANIES HAVE LESS CONTROL OVER GLOBAL
PUBLICITY RELATIVE TO DOMESTIC SITUATIONS,
AND NO CORPORATIONS ARE POWERFUL ENOUGH
TO CONTROL A HOST COUNTRY’S MEDIA
7.16
Promotion Agencies Around the World
GLOBAL AGENCY
Will Know Marketer’s Products & Current Promotion Program
Agency may then Either Adapt Domestic Campaigns or Launch New
Ones
 Disadvantage is their Distance from Local Culture. Exporting
Meaning is Never Easy


INTERNATIONAL AFFILIATE



Set Up as a joint Venture w/Local Agencies
Join Networks or Take Minority Ownership
Benefits in this Arrangement
LOCAL AGENCY



Knowledgeable about Culture/Local Market
Have Well-Established Contacts
One Problem-Less Standardization of Creative Effort
7.17
Standardized vs. Promotional Customized Campaigns
STANDARDIZED CAMPAIGNS USE SAME APPEAL & CREATIVE
EXECUTION ACROSS ALLINTERNATIONAL MARKETS
CUSTOMIZED CAMPAIGNS INVOLVE PREPARING CREATIVE
EXECUTIONS FOR EACH MARKET A FIRM HAS CREATED
A BRAND IS WELL SUITED FOR A STANDARDIZED CAMPAIGN
WHEN:
 Communication Primarily Uses Visual Appeal
 Communication is “Culture-less”
 Brands that are Standardized
 Products have Global Reputation
7.18
Certain Product Lend
Themselves to
Standardized Campaigns
7.19
Standardized vs. Promotional Customized Campaigns
(con’t)
ENVIRONMENT FOR STANDARDIZED PROMOTION
IS MORE FAVORABLE DUE TO:

Expansion of Global Communications Media

Emergence of Global Teenager

Trend Towards Universal Demographic & Lifestyle
Trends

Americanization of Consumption Values
7.20
Challenges in Developing & Managing
A Global Sales Force
DEVELOPING A GLOBAL SALES FORCE CAN BE
ACHIEVED WITH:

Expatriate Personnel

Local Nationals

Third Country Nationals
7.22
Challenges in Developing & Managing
A Global Sales Force
MANAGING THE GLOBAL SALES FORCE

Training
 Expatriate
 Foreign National Personnel
 Training for Foreign Personnel
 Motivation & Compensation
 Companies Must Consider Culture
 Guidelines Include Examining the Way Firms are Compensating
People
 High Tax-Rate Countries – Sales Personnel Push for Packages
instead of Direct Taxable Income
 E.g., Cost of Living Allowances, Private School Tuition, etc.
7.23