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Chapter 16. 16-2 Local market characteristics that affect the advertising and promotion of products...
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Transcript of Chapter 16. 16-2 Local market characteristics that affect the advertising and promotion of products...
![Page 1: Chapter 16. 16-2 Local market characteristics that affect the advertising and promotion of products The strengths and weaknesses of sales promotion.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649da95503460f94a962e4/html5/thumbnails/1.jpg)
Integrated Marketing Communications and International Advertising
Chapter 16
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16-2
Learning Objectives
Local market characteristics that affect the advertising and promotion of products
The strengths and weaknesses of sales promotion and public relations in global marketing
When global advertising is most effective; when modified advertising is necessary
The effect of limited media, excessive media, paper and equipment shortages, and government regulations on advertising and promotion budgets
The communication process and advertising misfires
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Global PerspectiveBarbie Versus Mulan Integrated marketing communications (IMC)
Advertising Sales promotions Trade shows Personal selling Direct selling Public relations
Objective: successful sale of a product or service
Availability of appropriate communication channels can determine entry decisions
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16-4
Sales Promotions in International Markets
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, cent-offs, in-store demonstrations, coupons, gifts, product tie-ins, contests, sponsorship of special events. Designed to supplement advertising and personal selling in the promotional mix.
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16-5
International Public Relations 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 Bridgestone/Firestone Tires (death of over 100 people) Honda safety recall (Honda Accord)– (1.5 million in the
US and 760,000 in China) – transmission shaft - may be broken during certain driving styles – causing engine problem.
Global workplace standards and product safety recall Building an international profile – companies need PR
consultation to build an international profile Corporate sponsorships –as an aspect of PR, sports
events and charity events (Pizza Hut and KFC)
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16-6
Top 20 Global Advertisers ($ millions)
Exhibit 16.1
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16-7
Top 100 Advertisers’ Global Spending ($ millions)
Exhibit 16.2
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16-8
Top Ten Advertisers (Russia and China – $ millions)
Exhibit 16.3(A) Russia (B) China
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16-9
International Advertising1. Perform marketing research2. Specify the goals of the
communication3. Develop the most effective
message(s) for the market segments selected
4. Select effective media5. Compose and secure a budget6. Execute the campaign (executional
styles)7. Evaluate the campaign relative to
the goals specified
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16-10
Advertising Strategy and Goals
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 (global youth)
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16-11
Product Attributes and Benefit Segmentation
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 Cars Breakfast cereal
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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16-12
Regional Segmentation
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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16-13
Global Advertising and the Communications Process
If not properly considered, different cultural contexts can increase the probability of misunderstandings
Effective communication Demands the existence of a “psychological
overlap” between the sender and the receiver to avoid transmission of message that results in unattended meaning.
It can never be assumed that “if it sells well in one country, it will sell in another” (Disney)
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16-14
The International Communications Process
Exhibit 16.4
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16-15
Legal Constraints
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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16-16
Linguistic Limitations
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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16-17
Cultural Diversity
Knowledge of cultural diversity must encompass the total advertising project
Existing perceptions based on tradition and heritages are often hard to overcome
Subcultures (different patterns of breakfast eating)
Changing traditions
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16-18
Media Limitations 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 In Egypt, static-filled television and poor-quality
billboards have led companies such as Coca-Cola and Nestlé to place their advertisements on the sails of boats that sail along the Nile.
Low-cost reproduction in small markets poses a problem in many countries .
For example, hand-painted billboards must be used instead of printed sheets because the limited number of billboards does not warrant the production of printed sheets
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16-19
Media Planning and Analysis – Tactical Considerations
Availability (too few vs. too many) Cost (cost per contact varies widely) Coverage (difficulty of reaching
certain sector) Lack of market data
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16-20
Media Planning and Analysis – Tactical Considerations
Newspapers Magazines Radio and television Satellite and cable TV
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16-21
Media Planning and Analysis – Tactical Considerations
Direct mail The Internet The New Social Media (WOM, Blogs,
Video sharing) Other media
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16-22
Media Penetration in Selected Countries (per 1,000 persons)
Exhibit 16.5
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16-23
Top Ten Websites in Three Countries (visitors per month)
Exhibit 16.6
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16-24
Social Networking Goes Mobile(Percent of Respondents)
Exhibit 16.7
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16-25
Campaign Execution and Advertising Agencies
Managed by advertising agencies Local domestic agency Company-owned agency Multinational agency with local branches
Compensation for advertising agencies: Commonly 15 percent throughout the
world Some companies moving to reward-by-
results (sales rise, the agency will be rewarded accordingly)
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16-26
World’s Top Ten Advertising Agency Organizations
Exhibit 16.8
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16-27
International Control of Advertising – Broader Issues
Consumer criticism (skepticism) Deceptive advertising Decency and blatant use of sex Self-regulation and restrictive laws Government regulations
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16-28
Summary
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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16-29
Summary
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