Ch 12 18 Promotion Decisons

8/13/2019 Ch 12 18 Promotion Decisons

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Chapter 12- MarketingCommunication


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Product

Price

Promotion

Place


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Marketing CommunicationProcess

Effective communication requires 3 elements connectedby a message channel:

The senderThe messageThe receiver

Encoding- converting message into symbolic formproperly understood by the receiverDecoding- dependent on receivers ability to transformmessage symbols back into thoughtNoise- Extraneous stimuli that interfere with transfer ofmessage through message channel


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Marketing CommunicationProcess

Noise

Sender Message MessageChannel Receiver

CommunicationOutcomeFeedback


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Five Stages in InternationalNegotiation Process

Offer- assess each others needs and degree ofcommitment

Informal Meetings- discuss the terms and getacquainted, establish trust, build relationshipStrategy formulation- identify factors affecting the deal,preparation for give-and-take, attend to cultural values

Negotiations- depends on business traditions/culture,competitive vs. collaborative approachImplementation- ensure a win-win for both parties,think long term


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How to Negotiate in OtherCountries-10 points (p. 389)

Team AssistanceTraditions and Customs

Language CapabilityDetermination of authority limitsPatienceNegotiation ethicsSilencePersistenceHolistic viewThe Meaning of Agreements


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Marketing CommunicationStrategy

Step One

Step Two

Step Three

Step Four

Step Five

Assess Marketing CommunicationOpportunities

Analyze Marketing Communications

Resources

Set Marketing Communications Objectives

Develop/Evaluate Alternative Strategies

Assign Specific Marketing CommunicationsTasks


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Promotional Mix

Advertising- Any form of non personal presentation of ideas, goods,or services by an identified sponsor, with predominant use made ofmass communication.

Personal Selling- The process of assisting and persuading aprospect to buy a good or service or to act on an idea through useof person-to-person communication with intermediariesPublicity- Any form of nonpaid, commercially significant news oreditorial comment about ideas, products, or institutions

Sales Promotions- Direct inducements that provide extra productvalue or incentive to the sales force, intermediaries or ultimateconsumersSponsorship- the practice of promoting the interests of thecompany by associating it with a specific event or cause.


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Push or Pull?

The choice of tools leads to either a Pushor Pull strategyPush- focus on the use of personal selling.Pull- depends on mass communicationstools, mainly advertising.Integrated marketing communications(IMC)


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Communication Tools

In addition to what we have discussed..... thecommunication tools used by exporters to communicate

with the foreign markets are as follows:Business and trade journalsDirectoriesDirect advertisingThe internetTrade fairs and missionsPersonal selling


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Chapter 18-GlobalPromotional Strategies


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Planning PromotionalCampaigns-Steps Involved

Determine the target audience

Determine specific campaign objectivesDetermine the budgetDetermine media strategy

Determine the messageDetermine the campaign approachDetermine campaign effectiveness


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Target Audience

Global marketers face multiple audiencesbeyond customersCause-related marketing: the company or oneof its brands is linked with a cause such asenvironmental protection.

Corporate image advertising- an umbrellacampaign may help either boost the image of alesser-known product line or make the companybe perceived more positively.


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Campaign Objectives

Essential to the planning of an internationalpromotional campaign is the establishment ofclearly defined, measurable objectivesTypical goals:

Increase awareness

Enhance imageImprove market share


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The Budget

The promotional budget links establishedobjectives with media, messages, and control

decisions Available funds may dictate the basis fromwhich the objective-task method can startTake a market-by-market approachIt establishes a control mechanism


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Media Strategy

The major factors determining choice of media vehicles:Media availability- government restrictions are there

for mediaProduct influences- different restrictions for differentkinds of products, e.g., tobacco, alcohol,pharmaceutical products

Audience characteristics- demographics, mediahabits, advertising exposureGlobal media- Time, Economist, MTV, InternetPromotional message- targeted message, S-A issues


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Promotional Message

Determine the customers motivations depending on thefollowing:

Level of diffusion of productWhat customers look for in a productProducts positioning

Be flexible in marketing globally, may consider a globalbrandUse of an advertising agencyStandardization vs. adaptation in message- Parker pen


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The Campaign Approach

What type of outside services to use? Advertising agencies, local vs. global , e.g., McCann-Erickson-130 countries

Agency-Client relationshipUsing local agencies

How to establish decision-making authority for promotional efforts?Centralization vs. decentralization

Reasons for Centralization- economies of scale, synergy,consistencyReasons for Decentralization- proximity to market, flexibility,faster response time, cultural sensitivity


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Measurement of AdvertisingEffectiveness

Commonly used measurements regardless ofmedium used:

Sales AwarenessRecall

Intention to buyProfitabilityCoupon return

Ch 12 18 Promotion Decisons

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