International Marketing Strategy

Lecture 5

Promotional Strategies 1Public Relations

Lecture OutlineCurrent issuesPlanning Promotional CampaignsWhat does public relations involve?PublicsInternal and external public relationsPublic relations objectivesCredibility and visibility – PR activities

What happened?

BBC iPlayer - Panorama: Tabloid Hacks Exposed

What happened?

Top Stories in 2011-12The Royal WeddingThe Eurozone CrisisPhone hacking and closure of the News of the WorldThe Japanese TsunamiThe New Zealand EarthquakeUprisings across the Arab WorldThe death of Amy Winehouse and Steve JobsThe death of Osama Bin Laden and Colonel GadaffiSummer riots in the UK

Top Stories in 2011-12Capitalism protests outside St Paul’s CathedralCoca Cola celebrates 125 years of being “The

Real Thing”John Lewis reports biggest weekly sales figure

on recordPast Times, La Senza and Pumpkin Patch go

into administrationTwitter sees record activity during 2012

superbowlGlencore and Xstrata announce $90 billion

merger Facebook’s IPO

Planning Promotional CampaignsDetermine the target audienceDetermine specific campaign objectivesDetermine the budget Determine the messageDetermine media strategyDetermine the campaign approachDetermine campaign effectiveness(Czinkota, Ronkainen & Zvobgo, 2011, 528)

Planning Promotional CampaignsThe target audience

Expectations have to be researched to ensure the appropriateness of campaign decision making

Some campaigns may be targeted at multiple audiences (publics)

An important aspect of research is to determine multimarket target audience similarities.

Companies are engaging in corporate image advertising in support of their more traditional tactical product-specific and local advertising efforts

(Czinkota et al., 2011, 528-530)

Planning Promotional CampaignsThe target audience

An umbrella campaign may help multidivisional companies to either boost the image of lesser-known product lines or make the company itself be understood correctly or perceived more positively

Companies may announce repositioning strategies through image campaigns to both external and internal constituents

Planning Promotional CampaignsThe target audience

Costs may also be saved in engaging in global image campaigning, especially if the same campaign or core concepts can be used across borders

In some cases the product may be standard but the product’s positioning and subsequently marketing communications has to change

(Czinkota et al., 2011, 529-530)

Campaign ObjectivesObjectives should be clearly defined and

measurable (SMART)Set global, regional and local objectivesObjectives may be product or service related

or related to the entity itselfTypical objectives aim to increase awareness,

enhance image and improve market shareLocal objectives are typically developed as a

combination of global and regional, and country organisation involvement

(Czinkota et al., 2011, 530)

The Promotional MessageThe marketer must determine customer’s

motivationsThe idea may be global, but overseas

subsidiaries tailor the message to suit local market conditions and regulations

Marketers often want to localise international symbols e.g. celebrities

Aesthetics plays a role in localised campaignsEnvironmental conditions call for

modifications – culture, economic development, lifestyle

(Czinkota et al., 2011, 537-539)

Media StrategyConsider media availability, product or service

characteristics, media habitsMajor problems can arise due to conflicting

national regulationsViewers choice has been expanded across

borders, leading to competition among government-run channels, state channels from neighbouring countries, private channels, and global channels

Marketing communication needs to work within markets and across countries

(Czinkota et al., 2011, 530-533)

What is Public Relations?PR is a global occupationPR is a product of economic and political

circumstancesPR is used in a wide range of industriesPR is about imageAll organisations need PRPR is about managing communicationPR is about building relationships

Definitions of Public Relations“The art and social science of analysing

trends, predicting their consequences, counselling organisational leaders, and implementing planned programs of action which will serve both the organisation and public interest”. (Newsom et al., 2000, 2)

“Public relations is about reputation – the result of what you do, what you say and what others say about you”. (CIPR, 2009)

(Tench & Yeomans, 2009, 6-7)

Public RelationsImage – the way a multinational

corporation relates to and is perceived by its key constituents

Public relations is the marketing communications function charged with executing programmes to earn public understanding and acceptance

Richard Edelman on the 2012 Trust Barometer Findings - YouTube

(Czinkota & Ronkainen, 2007, 599)

Starbucks – Reputation Survey44% say Starbucks serves the best tasting

coffee33% say McDonald’s serves the most

reasonably priced coffee46% say Starbucks acts in the most socially

responsible way66% want the chunky white mugs to stay47% believe high street chains threaten

independent coffee shops46% say the logo redesign is a waste of moneySource: OnePoll.com (2011) Starbucks stays on top, PR Week, 21

January, pp24-25

The Importance of the External and Internal Context

If PR is about establishing and maintaining goodwill and maintaining mutual understanding, an examination of the external and internal environment is essential

The environment contains issues over which an organisation may or may not have control

These issues may have an impact on existing relationships or may lead an organisation to develop new relationships

An examination of key issues will enable an organisation to identify information which needs to be communicated to different publics

Internal Public RelationsInternal communication is important to

create an appropriate corporate cultureA basic part of most internal

programmes is the employee publicationOther media include e-mails, films,

videotapes, slides, video conferencing, booklets, manuals and handbooks

(Czinkota et al., 2011, 548)

External Public RelationsExternal public relations (marketing public

relations) is focused on the interactions with customers

Marketers are concerned about establishing global identities to increase sales, differentiate products and services, and attract employees

External campaigns can be achieved through the use of corporate symbols, corporate advertising, customer relations programmes, and publicity

(Czinkota et al., 2011, 548)

PR ObjectivesTo promote an awareness of the existence

of an organisation, its products and services

To anticipate and counter criticism of a company and to minimise damage to the corporate imageThese can be based on:Product issuesCorporate conductBusiness arrangements

PR ObjectivesTo overcome prejudice against the use of

the company’s productTo promote and establish a brand image in

a foreign marketTo increase a company’s sphere of

influence and achieve a high profile

Identifying PublicsResearch for the proposed programme will

have identified key publicsGroups are often not homogenous and have

different interests and concernsThe type of campaign will determine

segmentation criteriaStakeholders can be categorised depending

on the amount of power to influence others and the level of interest they have in an issue

Categorisation helps identify blockers and facilitators

Ways to Segment PublicsBy geographics – where they live, workBy demographics – age, gender, incomeBy psychographics – attitudes, interests, opinionsBy group membership – e.g. clubs, societies,

parentsBy overt and covert power – e.g. religious leader,

information gatekeeperBy role in decision process, e.g. financial

manager, CEO(Tench & Yeomans, 2009, 185)

Publics/StakeholdersCustomersSuppliersDistributorsGovernmentRegulatorsPressure groups

Publics/StakeholdersEmployeesThe financial communityMediaLocal communityGeneral public

PublicityPublicity is the non personal stimulation of

demand that is not paid for by a sponsor which has released news to the media

A company has less control over how the message will be used by the media

Methods include contribution of prizes, sponsorship of activities, release of news about the company’s product, plant, and personnel, and announcements about the promotional campaign

(Onkvisit & Shaw, 2009, 520)

PublicityPublicity is the securing of editorial space to

further marketing objectivesThe public perceives it as more trustworthy

than advertisingWith growing and evolving technology,

consumers can find or initiate topics of interest and engage in online discussions that strongly affect their and others’ views

The public relations function can be handled in-house or with the assistance of an agency

(Czinkota et al., 2011, 549)

The direction that the organisation chooses to follow in order to fullfil its mission (Bennett, 1996)

A plan as a consciously intended course of actionA ploy as a specific manoeuvre intended to outwit

an opponent or competitorsA pattern representing a stream of actionsA position as a means of locating an organisation

in an environmentA perspective as an integrated way of perceiving

the world (Mintzberg et al, 1998)(Oliver, 2007, 2)

What is Strategy?

StrategyA communications strategy is the grand plan, the

who, why, what, where, when and how to achieve the stated objectives

Change is constant and the strategy will need to be flexible enough to evolve as different situations arise

Prioritise audiences and agree the desired response

PR objectives are nearly always achieved by influencing someone either to take action or not to take action

Raising VisibilityPublic Relations Activities

PublicityMedia relationsPublic speakingEventsSponsorshipExhibitions and conferencesCorporate communicationsAdvertising, sales promotion, direct mail

Raising VisibilityPublic Relations Activities

Lobbying ResearchCrisis managementFinancial relationsCommunity relationsSpecial eventsCustomer relationsInternal CommunicationCorporate identity(Tench & Yeomans, 2009, 189)

Table 2.1 Example of how public relations activity may be structured at various stages of the organisational lifecycle

Source: Tench & Yeomans, 2009, 25

What do PR People do?Corporate PRMedia RelationsInternal communicationsBusiness-to-BusinessPublic affairsCommunity relationsInvestor relationsStrategic Communication

Figure 9.5 Framework for multi-project public relations plans

Source: Adapted from Gregory, 2000, 46 in Tench & Yeomans, 2009, 179

Operating around the Globe

The actions of individuals and organisations in one part of the world may be felt instantly and irrevocably by people around the globe

Companies can become the most prominent standard bearers of their countries

All foreign companies operating internationally must constantly reinforce a notion of responsibility and concern

Why has Public Relations become a Global Phenomenon?

Shifts towards democracyDevelopments in worldwide

communicationsFormation of trading alliancesFormation of public relations associations

e.g. Global Alliance for Public Relations and Communications Management, CIPR

Finally …Organisations desperately need

professional communicators to navigate through the new world of instantaneous communication

As global competition intensifies, so will global communications

Case Study: Narnia series sails back into popularity

ObjectivesTo raise awareness of the launch of The Voyage of the

Dawn Treader

To restore the magic of Narnia for the third film

To create excitement and anticipation

(Murphy, 2011, 4-5)

Case Study: Narnia series sails back into popularity

Strategy and PlanCreate a seaworthy replica of the Dawn TreaderGet an amateur crew and their parents to sail it in the Atlantic

OceanSet up partnerships with broadcasters in major marketsMake fly-on-the-wall documentary for peak-time broadcastUpload daily footage to Narniafans.comArrange trip up the River Thames for the international press callNarnia Fans - Voyage of the Dawn Treader Narnia Movie News

Case Study: Narnia series sails back into popularity

Measurement and EvaluationAwareness among non-core Narnia fans rose by

42 per centThe film made £2.5m in box office sales in the

UK on its opening weekend and $24m in the USTwelve international markets were involved in

theatrical activity(Murphy, 2011, 4-5)

The Chronicles of Narnia: The Voyage of the Dawn Treader Trailer2 - YouTube

References Baines, P., Egan, J. & Jefkins, F., (2004) Public Relations, Contemporary

Issues and Techniques, 2e. Oxford: Elsevier Butterworth-Heinemann Czinkota, M.R., & Ronkainen, I.A., (2010) Global Promotional Strategies.

Retrieved from February 25, 2010 from http://www.pearsoned.co.uk Czinkota , M.R., Ronkainen, I.A., Zvobgo, G., (2011) International

Marketing, Andover: Cengage Fill, C., (2009) Marketing Communications, Interactivity, Communities

and Content, 5e. Harlow: Financial Times, Prentice Hall Gregory.A, (2000) Planning and Managing Public Relations Campaigns. Hollensen, S., (2007) Global Marketing, 4e. Harlow: Pearson Education Murphy, C., (2011) PR Week Campaigns Showcase, PR Week, December Oliver, S., (2007) Public Relations Strategy, 2e. London: Kogan Page Smith, R.D. (2009) Strategic Planning for Public Relations, 3e. Abingdon:

Routledge Tench, R. & Yeomans L., (2009) Exploring Public Relations, 2e. Harlow:

Financial Times, Prentice Hall