Chapter 16 - Integrated marketing communications and international advertising. After studying this chapter you will be able to understand: Local market characteristics that affect the advertising and promotion of products, the strengths and weaknesses of sales promotions and public relations in global marketing, when global advertising is most effective; when modified advertising is necessary,...
International Marketi ng 14th Edition P h i l i p R C a t e o r a M a r y C G i l l y John L Graham Integrated Marketing Communications and International Advertising Chapter 16 McGrawưHill/Irwin InternationalMarketing14/e Copyrightâ2009byTheMcGrawưHillCompanies,Inc.Allrightsreserved Discussions List and explain all factors affect the choice of IMC tools (advertising, sales promotion, PR, events, personal selling…) • List and explain the criteria to evaluate the IMC program 16-2 Factors influencing choice of IMC • Product Life Cycle • Brand Life Cycle • Diffusion of Innovation • Customer knowledge and perception • Type of Customers (B2B vs B2C; demographic) • Type of Products (high involvement vs low involvement, shopping, necessity…) • The availability of tools 16-3 What Should You Learn? • 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 16-4 What Should You Learn? • The effects of a single European market on advertising • 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 16-5 Global Perspective Barbie 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 16-6 IMC STRATEGY REQUIREMENTS DETERMINE HOW WE WILL COMMUNICATE WITH OUR CUSTOMER DETERMINE HOW OUR CUSTOMER WANTS TO COMMUNICATE WITH US MEASURE COMMUNICATION AND FEEDBACK AND MAKE CHANGES WHERE NECESSARY 10-7 WHAT IS IMC? IT PROVIDES TWOWAY DIALOGUE BETWEEN SUPPLIERCUSTOMER IT PROVIDES FOR A UNIFORM MESSAGE DELIVERED THROUGH ALL COMPANY MEDIA (ADVERTISING, SELLING EFFORT, DIRECT MAIL, TRADE SHOWS) IT FOCUSES ON MEETING THE INFORMATION NEEDS OF THE BUYER THE CONTINUOUS IMC PLANNING PROCESS Set Goals Make Adjustments Determine Communication Elements Measure Results Create Message Place Messages in Media THE HIERARCHY OF EFFECTS MODEL Action Desire Interest Awareness 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 – Cameras – Yogurt – Almonds • 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 16-38 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 16-39 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 • It can never be assumed that “if it sells well in one country, it will sell in another” 16-40 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 • Low-cost reproduction in small markets poses a problem in many countries 16-41 Media Planning and Analysis – Tactical Considerations • Availability • Cost • Coverage • Lack of market data 16-42 Media Planning and Analysis – Tactical Considerations • Newspapers • Magazines • Radio and television • Satellite and cable TV 16-43 Media Planning and Analysis – Tactical Considerations • Direct mail • The Internet • The New Social Media • Other media 16-44 Media Penetration in Selected Countries (per 1,000 persons) Exhibit 16.5 16-45 Top Ten Websites in Three Countries (visitors per month) Exhibit 16.6 16-46 Social Networking Goes Mobile (Percent of Respondents) Exhibit 16.7 16-47 Campaign Execution and Advertising Agencies • Managed by advertising agencies – Local domestic agency – Company-owned agency – Multinational agency with local branches • Compensation – Commonly 15 percent throughout the world – Some companies moving to reward-by-results 16-48 World’s Top Ten Advertising Agency Organizations Exhibit 16.8 16-49 International Control of Advertising – Broader Issues • Consumer criticism • Deceptive advertising • Decency and blatant use of sex • Self-regulation • Government regulations 16-50 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 16-51 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 16-52 ... entertainment such as online mini-films 1 8- 241 8- 24 Point-of-Purchase • There are many ways to communicate with consumers at the point-ofpurchase (POP) – – – – – – – In-store advertising includes... carts Cart straps Aisles and shelves In-store demonstrations Live sampling Instant coupon machines 1 8- 251 8- 25 Point-of-Purchase • The appeal of point-of-purchasing advertising lies in the fact... are made in the store • In-store advertising is designed to increase the number of spontaneous buying decisions 1 8- 261 8- 26 The International Communications Process 1 6-2 7 Legal Constraints • Comparative