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CHAPTER PROMOTION & MARKETING COMMUNICATION VU THN ngocvth@uel.edu.vn Table of Contents 01 02 03 04 Export marketing promotion and communication decisions Alternative techniques of promotion Standardization or adaptation? Ethics INTRODUCTION • • • • • • • • Communication greatly affected by culture so international promotion more complex Social, political and economic contexts influence promotional activities Same promotional mix elements used, but may have different importance in different countries Sophisticated communication tools might not be appropriate in some markets Brands as story tellers (brand narrative) Growing importance of digital and social media across markets Rise of Brand Journalism Storytelling EXPORT MARKETING PROMOTION & COMMUNICATION DECISIONS The promotion decisions ● What messages? ● What communications media? ● How much effort or money to spend? Personal selling to communicate primarily face-to-face with prospective customers Advertising a nonpersonal presentation of sales messages through various ‘mass’ media, paid for by the advertiser Sales promotion sales activities, which supplement & strengthen personal selling & advertising Publicity news about a company or its products that is reported by some media, and is not paid for by the company 1.1 A CONCLUDING COMMENT One world, one voice? Requirements for effective comms are fixed and don’t vary from country to country Does the use of digital media make standardization easier Communication process the same BUT - Message may not get through - May reach target, but not understood - May not compel target to take action - Effectiveness impaired by noise (Keegan & Green, 2013) 2.1 PERSONAL SELLING The actual selling activity Customer relations The communication of product information to The salesperson must at all times be concerned customers, and obtaining orders with maintaining & improving company’s position with customers and the general public Information gathering and communicating The salesperson is often able to provide information that might be useful in planning advertising and trade promotion programs 2.2 SALES PROMOTION • • • Can global brands run standardised campaigns? Tends to be used locally [tactically] by companies in order to achieve short term objectives May also be used to support advertising campaigns (which may have longer-term objectives) 2.2 SALES PROMOTION Nonprice promotion Free samples Buy get Premiums Contests Sweepstakes Price promotion Price reduction Coupon Mail-in refund 2.2 SALES PROMOTION Consumer sales promotions are designed to make consumers aware of a new product, to stimulate nonusers to sample an existing product, or to increase overall consumer demand Trade sales promotions are designed to increase product availability in distribution channels “Being an Olympic sponsor is a disadvantage” (former Coca-Cola UK marketing boss) “the original sponsorship model “no longer functions” Football Sponsorship ASPECTS • Arts, Sport, Entertainment, TV • Active engagement on the part of sponsors/partners – not just funding • Trend towards increased brand engagement against the background of digital revolution • Celebrity endorsement • Relevance of sponsorship property to customers STANDARDIZATION VS ADAPTION • International market convergence leading to homgenisation? • Or more diverse and complex cultural mixing? • High cost of localised advertising • Intercultural communication – ability to communicate a meaningful message to heterogeneous local markets representing various cultural settings Should we use a specific advertising message and media strategy from region to region or country to country because of environmental requirements ? STANDARDIZATION VS ADAPTION • Standardized print campaigns: industrial / high-tech consumer products (Apple’s iPhone and iPad) • Standardized print campaigns with a strong visual appeal often travel well E.g Chivas Regal (“This is the Chivas Life”) Picture-based instructions can be used throughout the world without translation • TV commercials that use voice-overs instead of actors or celebrity endorsers speaking dialogue can use standardized visuals with translated copy for the voice-over Examples: Gillette (“The best a man can get”); GE (“Imagination at work”); UPS (“We Logistics”) 4.1 ETHICS AND INTERNATIONAL MARKETING • Green marketing: green movement, eco-labelling UK plastic carrier bag sales fall by more than 95 per cent following introduction of 5p charge 4.1 ETHICS AND INTERNATIONAL MARKETING ● Green movement: political/consumer movement favoring environmentally friendly approaches ● Eco-labelling: a label or logo to show that a company is socially responsible 4.1 ETHICS AND INTERNATIONAL MARKETING compact fluorescent light (CFL) bulb: $15 incandescent bulb $0.75 The product had difficulty climbing out of its deep green niche They relaunched the product as ‘Marathon’, underscoring its new ‘super long life’ positioning and promise of saving $26 in energy costs over its five-year lifetime -> sales climbed 12% in an otherwise flat market 4.1 ETHICS AND INTERNATIONAL MARKETING The point of return: recycling options offered by some major companies Company Shipping/recycling fees In-store drop-off Apple Free with shipping form Batteries and iPods accepted at Apple stores HP Free shipping via FedEx for HP and Compaq Stationery stores accept many HP and non-HP consumer products, except TVs products with pre-printed voucher Dell Free shipping or pick-up of Dell products, and free pick-up of non-Dell items with purchase of a Dell product The Dell Reconnect partnership with Goodwill accepts any brand of electronics except mobile phones Amazon Free shipping for Kindles via UPS with preprinted voucher Not available 4.2 Ethical issues in international marketing activities Marketing activity Positioning (Un)Ethical issues Positioning a low-quality product as a high-quality product Product positioned to perform a function that it cannot actually do, e.g cholesterolreducing food, anti-ageing cosmetics Blackmailing customers that if they not use the product they will be harmed/ disadvantaged in some way Product Product that can cause harm to customers/users, e.g children’s toys Products that pose a safety risk for users, e.g electric goods, automobiles Products that can cause health problems, e.g side-effects of medicines When customers are not fully informed about product content, e.g in food items containing nuts, GM ingredients or high sugar/salt levels Use of environmentally unfriendly packaging 4.2 Ethical issues in international marketing activities Price Price cartels, where two or more competitors fix a price that is higher than competitive pricing Charging discriminatory prices without any extra value provided Transfer pricing; over- or under-pricing internal invoices for taxation purposes Charging high monopolistic prices, e.g medicines for epidemic diseases, such as AIDS in Africa Paying bribery/illegal payments or giving gifts to acquire sales Promotion Claiming inaccurate product benefits through advertising Not informing the customer fully through different means of communication Using inappropriate language in advertising Using discriminatory or degrading slogans Advertising directed towards younger children Paying illegal kickbacks to promote a product 4.2 Ethical issues in international marketing activities Place Discriminatory distribution, e.g forcing wholesalers and retailers to discriminate among customers (to whom the product can be sold) Demanding unfair benefits, kickbacks and/or advances from retailers or suppliers Not taking responsibility for after-sales service, e.g in electronic goods SUMMARY • Growing globalisation of advertising, but still need for adaptation in many cases • Growing importance of global PR in line with spread of global brands • Increasing amount of promotional spend on sponsorship, particularly for global consumer brands • Sales promotion remains very locally oriented • Personal selling still important in a B2B context ? Explain how culture can influence the effectiveness of comparative advertising Is there a stronger influence on ‘attack ads’? Discuss Choose a country representing a western culture and one representing an eastern culture Would the same type of comparative advertising work in each? Why or why not? ● Why would a consumer buy a product where they did not know whether they liked the flavor? ● Why would the brand associate with the letters WTF, given this can also have a negative connotation? ● Why would the brand run this sales promotion, rather than just introducing the new flavor straight to the marketplace?