International Marketing Communication and its process..promotional tools

INTERNATIONAL MARKETING

COMMUNICATION

By: Radhika Arora

International Marketing Communications (IMC): is the coordination and integration of all marketing communications tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumer and other end users at a minimal cost.”

Clow and Baack, 2004,

Communication is a major part of export marketing activities. It is not enough to produce goods and

make available a product or service; it is also necessary to provide information that buyers need to

make purchasing decisions.

As Senders As Receivers

Develop messages

Adapt messages

Spot new communication opportunities

Inform

Persuade

Remind

International Marketing Communication

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

The Communication Process

Communication with foreign buyers: Planning and

Preparing for Promotional Campaign

Planning Promotional Campaigns-Steps Involved

• Determine the target audience• Determine specific campaign objectives• Determine the budget• Determine media strategy• Determine the message• Determine the campaign approach• Determine campaign effectiveness

Target Audience

• Global marketers face multiple audiences beyond customers.

• Cause-related marketing: the company or one of its brands is linked with a cause such as environmental protection.

• Corporate image advertising- an umbrella campaign may help either boost the image of a lesser-known product line or make the company be perceived more positively.

Campaign Objectives

• Essential to the planning of an international promotional campaign is the establishment of clearly defined, measurable objectives

• Typical goals:– Increase awareness– Enhance image– Improve market share

The Budget

• The promotional budget links established objectives with media, messages, and control decisions.

• Available funds may dictate the basis from which the objective-task method can start.

• Take a market-by-market approach• It establishes a control mechanism

Media Strategy

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

media– Product influences- different restrictions for different

kinds of products, e.g., tobacco, alcohol, pharmaceutical products

– Audience characteristics- demographics, media habits, advertising exposure

– Global media- Time, Economist, MTV, Internet– Promotional message- targeted message, S-A issues

The Campaign Approach

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

countries – Agency-Client relationship– Using local agencies

• How to establish decision-making authority for promotional efforts?– Centralization vs. decentralization– Reasons for Centralization- economies of scale, synergy, consistency– Reasons for Decentralization- proximity to market, flexibility, faster

response time, cultural sensitivity

Measurement of Advertising Effectiveness

• Commonly used measurements regardless of medium used:– Sales– Awareness– Recall– Intention to buy– Profitability– Coupon return

The Role of Promotion

Communication by

marketers that informs,

persuades, and reminds

potential buyers of a

product in order to

influence an opinion or

elicit a response.

PromotionPromotion

Promotion Strategy

A plan for the optimal

use of the elements of

promotion: Advertising Public Relations Sales Promotion Personal Selling

PromotionalStrategy

PromotionalStrategy

CompetitiveAdvantage

Competitive Advantage

Unique featuresUnique features

Excellent serviceExcellent service

Low pricesLow prices

Rapid deliveryRapid delivery

High product qualityHigh product quality

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience


InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity


Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

Reminder Promotion

The AIDA Concept

Model that outlines the process

for achieving promotional goals

in terms of stages of consumer

involvement with the message.

Attention

Interest

Desire

Action

Attention

Interest

Desire

Action

AIDA ConceptAIDA

Concept

The AIDA Concept

International Promotion Strategies: Push and Pull Strategies

Manufacturerpromotes to wholesaler

Manufacturerpromotes to wholesaler

Wholesaler promotes to

retailer

Wholesaler promotes to

retailer

Retailer promotes toconsumer

Retailer promotes toconsumer

Consumerbuys from

retailer

Consumerbuys from

retailer

PUSH STRATEGY

Orders to manufacturer

Manufacturerpromotes to

consumer

Manufacturerpromotes to

consumer

Consumer demands product

from retailer

Consumer demands product

from retailer

Retailer demands product

from wholesaler

Retailer demands product

from wholesaler

Wholesaler demands

product frommanufacturer

Wholesaler demands

product frommanufacturer

Orders to manufacturer

PULL STRATEGY

• Standard Promotion Strategy• Differential Promotion Strategy

Factors Affecting Promotional Mix

The Promotional Mix

Combination of promotiontools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Sales Promotion Personal Selling

PromotionalMix

PromotionalMix

The Promotional Mix

Impersonal, one-way Impersonal, one-way mass communication about mass communication about a product or organization a product or organization that is paid for by a that is paid for by a marketer.marketer.

AdvertisingAdvertising

Integrated Marketing Communications

IntegratedMarketing

Communications

IntegratedMarketing

Communications

The careful coordination of all

promotional messages to assure

the consistency of messages at

every contact point where a

company meets the consumer.

Media Structure: Types of advertis ing Media

Advertising MediaTraditional Advertising Media

NewAdvertising

Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Banner ads Viral marketing E- mail Interactive video

AdvertisingAdvantages Disadvantages

Reach large number of people

Low cost per contact

Can be micro-targeted

Total cost is high

National reach is expensive for small companies

Public Relations

The marketing function thatevaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

Public

RelationsPublic

Relations

The Function of Public Relations

Maintain a positive image Educate the public about the

company’s objectives Introduce new products Support the sales effort Generate favorable publicity

Sales Promotion

Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness.

Sales

PromotionSales

Promotion

Sales PromotionEnd

ConsumersEnd

Consumers

Trade Customers

Trade Customers

CompanyEmployees Company

Employees

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

Personal Selling

Planned presentation to one or more prospective buyers for the purpose of making a sale.

Personal

SellingPersonal

Selling

Personal Selling

Traditional Selling

Traditional Selling

Relationship Selling

Relationship Selling

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message Content Control

Sponsor Identification

Reaching Large Audience

Message Flexibility

AdvertisingIndirect and impersonal

Low

Little

Delayed

One-way

Yes

Yes

Fast

Same message to all audiences

Characteristics of the Elementsin the Promotional Mix

Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Public RelationsUsually indirect, impersonal

Moderate to low

Little

Delayed

One-way

No

No

Usually fast

Usually no direct control


Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Sales PromotionUsually indirect and impersonal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Yes

Fast

Same message to varied target


Communication Mode


Feedback Amount

Feedback Speed





Message Flexibility

Personal SellingDirect and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect


Factors Affecting the Choice of Promotional Mix

Nature of the productNature of the product

Stage in PLCStage in PLC

Target market factorsTarget market factors

Type of buying decisionType of buying decision

Promotion fundsPromotion funds

Push or pull strategyPush or pull strategy

Planning Media Strategy

International Media habitsInternational Media habitsMedia AvailabilityMedia AvailabilityMedia ReliabilityMedia ReliabilityMedia RestrictionsMedia RestrictionsMedia CostsMedia Costs

Corporate Advertising

• Advertising that is more public relations than sales promotion.

• Its objective is to build a firm’s corporate image, reputation, and name-awareness among the general public or within an industry.

Types of Corporate Advertising

Role of Corporate Advertising in International Marketing

• Balanced Communication Process• Increases Customer Relationship across

Nations• Maximizes Sales and Profits• Multitasking

International Marketing Communication and its process..promotional tools

Business

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