Module 4 Lecture Inter

7/21/2019 Module 4 Lecture Inter

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Integrated Marketing Communications (IMC)

GLOBAL PROMOTION STRATEGIES

Internationa Ad!ertising

Go"a Ad!ertising and t#e Communications Process

internationa ad!ertising incude t#e $oo%ing SE&EN

STEPS'

Go"a Saes Promotions

Go"a Persona Seing

Go"a Pu"ic Reations

Go"a Integrated Marketing Communications (GIMC)



Introduction

• Once a market offering is developed to meet targetmarket needs, intended customers must be informed ofthe offering.

• Once a market offering is developed to meet targetmarket needs, intended customers must be informed ofthe offering.

Integrated Marketing Communications (IMC) comprises:• dvertising• !ales promotions• "ersonal selling• #irect selling, and• "ublic relations

Integrated Marketing Communications (IMC) comprises:• dvertising

• !ales promotions• "ersonal selling• #irect selling, and• "ublic relations

• ll these mutuall$ reinforcing elements of the promotional(marketing communications) mi% have as their commonob&ective the successful sale of a product or service.

• ll these mutuall$ reinforcing elements of the promotional(marketing communications) mi% have as their commonob&ective the successful sale of a product or service.



Marketing communications includeAdvertising, Sales Promotion,Personal Selling, Direct Selling and

Public Relations.When communicating with publics inmore than one country, rms must

work within the limitations o! eachmarket to ma"imi#e their promotionalob$ectives.



International Advertising

#ecisions involving advertising are those most oftenaffected b$ cultural differences among countr$ markets. Consumers respond in terms of their culture, its st$le,

feelings, value s$stems, attitudes, beliefs, and perceptions. dvertising's function is to interpret the ualities of products

in terms of consumer needs, ants, desires, andaspirations, the emotional appeals, s$mbols, andpersuasive approaches.

*econciling an international advertising campaign ith thecultural uniueness of markets is the challenge confronting

the international or global marketer.



Global Advertising and the Communications Process

1. An information source An internationa marketing e*ecuti!e%it# a +roduct message to communicate

2. Encoding T#e message $rom t#e source con!erted intoe$$ecti!e sm"oism $or transmission to a recei!er

3. A message channel T#e saes $orce and,or ad!ertising media

t#at con!e t#e encoded message to t#e intended recei!er 4. Decoding T#e inter+retation " t#e recei!er o$ t#e sm"oism

transmitted $rom t#e in$ormation source5. eceiver Consumer action " t#ose %#o recei!e t#e message

and are t#e target $or t#e t#oug#t transmitted

!. "eedbac# In$ormation a"out t#e e$$ecti!eness o$ t#e messaget#at $o%s $rom t#e recei!er (t#e intended target) "ack to t#ein$ormation source $or e!auation o$ t#e e$$ecti!eness o$ t#e +rocess

$. %oise -ncontroa"e and un+redicta"e in$uences suc# as

com+etiti!e acti!ities and con$usion t#at detract $rom t#e +rocess and a$$ect an or a o$ t#e ot#er si* ste+s

T#e internationa communications +rocess consists o$ t#e $oo%ing se!en ste+s'

T#e internationa communications +rocess consists o$ t#e $oo%ing se!en ste+s'





%!ten &ontroversial'enets Derived !rom Advertising

1. Economica. Sales increase

b. Production increases

c. Per(unit cost o! product goesdown ( economies o! scale





here are many cultural challenges thatadvertisers !ace in global marketing.

-lobal advertising encompasses areas

such as advertising planning, budgeting,resource allocation issues, messagestrategy, and media decisions.

%ther areas include local regulations,

advertising agency selection, coordinationo! multi(country communication e/ortsand regional and global campaigns.



International Advertising

. Per$orm marketing researc#/ S+eci$ t#e goas o$ t#e communication0

1e!eo+ t#e most e$$ecti!e message(s) $or t#emarket segments seected2 Seect e$$ecti!e media3 Com+ose and secure a "udget

4 E*ecute t#e cam+aign5 and6 E!auate t#e cam+aign reati!e to t#e goas

s+eci$ied

+he basic frameork and concepts of internationaladvertising include the folloing SEVEN STEPS:

+he basic frameork and concepts of internationaladvertising include the folloing SEVEN STEPS:



Language Barriers◦ 0anguage is one o! the most !ormidable

barriers in global marketing.

◦ ranslation errors can occur in

international marketing Simple carelessness Multiple(word meaning

%ther &ultural 'arriers

◦ Religion◦ &ultural traps1cultural dimensions





Media 2n!rastructure◦ Media in!rastructure di/ers !rom country to

country

Media 0imitations◦ he ma$or limitation in many markets is media

availability.

Recent Developments in the -lobalMedia 0andscape

◦ -rowing commerciali#ation and deregulation o!mass media







he ma$or types o! advertising regulationsinclude◦ Advertising o! Pharmaceuticals

◦ &omparative Advertising

◦ &ontent o! Advertising Messages

◦ Advertising argeting &hildren

◦ %ther Advertising Regulations 2ssues o! locallanguages, ta" issues, and advertising rates.



Strategies to deal with advertisingregulations

◦ 4eep track o! regulations and pendinglegislation

◦ Screen the campaign early on

◦ &hallenge regulations in court

◦ Adapt marketing mi" strategy



2n selecting an ad agency, theinternational marketer has severaloptions5. Work with the agency that handles the

advertising in the rm6s home market.7. Pick a purely local agency in the !oreign

market.8. &hoose the local o9ce o! a large international

agency.

:. Select an international network o! ad agenciesthat spans the globe.



When screening ad agencies, the !ollowing set o!criteria can be used

◦ Market coverage

◦ ;uality o! coverage

◦ *"pertise with developing a central international

campaign

◦ &reative reputation

◦ Scope and )uality o! support services

◦ Desirable image <=global> versus =local>?

◦ Si#e o! the agency



-lobal or pan(regional advertisingapproaches re)uire a great deal o!coordination. he !ollowing mechanismscan help

◦ Monetary 2ncentives <cooperative advertising?◦ Advertising Manuals <brand book?

◦ 0ead(&ountry &oncept

◦ -lobal or Pan(Regional Meetings Si" guidelines to

implement a global or pan(regional advertisingapproach include



<5?. op management must be dedicatedto going global.

<7?. @se a third party <e.g., the ad

agency? to help sell key managers thebenets o! a global advertisingapproach.

<8?. A global brie! based on cross(border

consumer research can help persuademanagers to think in terms o! globalconsumers.



<:?. ind product champions and givethem a charter !or the success o! theglobal marketing program.

<B?. &onvince local sta/ that they havean opportunity in developing a globalcampaign.

<C?. -et local managers on the global

marketing team (( have them do the $obthemselves.



&egal Constraints

. Ad!ertising cam+aigns must

com+ %it# ega reguationsaround t#e %ord

/ Com+arati!e ad!ertising is #ea!ireguated in ot#er +arts o$ t#e%ord

0 A !ariet o$ restrictions onad!ertising o$ +#armaceuticas isrestricted in man countries

2 Ad!ertising on tee!ision is strictcontroed in man countries5 eg5

in German5 $or e*am+e5commercias must "e s+aced ateast /7 minutes a+art and tota adtime ma not e*ceed ./ minutes

+er #our Commercia stations int#e -nited 8ingdom are imited to6 minutes +er #our



&inguistic &imitations

Ad!ertising $rom cuture does not o$ten transate %e inanot#er cuture due to di$$erences in anguages and diaects

9or e*am+e5 C#rser Cor+oration transated its -S t#emet#at ad!ertised 'Dart (s Po)er.* To t#e S+anis#5 t#e +#raseim+ied t#at "uers soug#t "ut acked se*ua !igor

T#e Bacardi %anted to se t#e drink in German caedPavane5 "ut it is +erious cose to +a!ian5 %#ic# means: "a"oon;

A com+an marketing tomato +aste in t#e Midde East $oundt#at in Ara"ic t#e +#rase :tomato +aste; transates as :tomatogue;

In S+anis#<s+eaking countries %ords #a!e di$$erent meaningsT#e %ord "a transates in S+anis# as "oa5 %#ic# means "a

in one countr5 re!oution in anot#er5 a ie or $a"rication inanot#er5 and is an o"scenit in et anot#er E!en +ronunciation causes +ro"ems' =rige #ad trou"e

seing its +,earmint gum in German unti it c#anged t#es+eing to +,eermint



Constraints to Advertising Cam,aigns

> T#ere are man +ro"ems in communicating a $irm?s +roduct o$$erings to its

!arious target markets around t#e %ord Some o$ t#ese incude'

> T#ere are man +ro"ems in communicating a $irm?s +roduct o$$erings to its!arious target markets around t#e %ord Some o$ t#ese incude'

1. Cultural Diversit-' Ad cam+aigns and +roduct "rand names "eing communicated ma meandi$$erent t#ings to di$$erent cutures

2. edia &imitations' in some underde!eo+edcountries5 t#ere is a s#ortage o$ ad!ertising mediasuc# as radio stations5 +rint media (ne%s+a+ers5maga@ines)5 and tee!ision stations5 ca"e T&5 andsateite T&

3. Production and Cost &imitations' In somemarkets costs are +ro#i"iti!e to ad!ertise oncon!entiona ad!ertising media ot#er countries ma#a!e o% uait +a+er to +rint ad!ertising



Constraints to Advertising Cam,aigns

4. Coverage' In arge5 ess de!eo+ed countries

ad!ertising media suc# as tee!ision ma not "egeogra+#ica dis+ersed

5. &ac# of ar#et Data' T#is makes it di$$icutto reac# s+eci$ic target markets

!. Direct ail' E!en i$ direct mai is a!aia"e5 itma not %ork due to #ig# iiterac rates insome countries

$. /he (nternet' T#oug# ad!ertising !ia t#einternet is $ast increasing5 t#e === is not%ide a!aia"e in man countries %#erecom+uters are considered e*+ensi!e



+ales Promotions in (nternational ar#ets

. Cents<o$$

/ In<Store 1emonstrations

0 Sam+es2 Cou+ons

3 Gi$ts

> Saes +romotions are marketing acti!ities t#at stimuateconsumer +urc#ases and im+ro!e retaier or middemene$$ecti!eness and coo+eration

> Saes +romotions are marketing acti!ities t#at stimuateconsumer +urc#ases and im+ro!e retaier or middemen

e$$ecti!eness and coo+eration

E*am+es o$ saes +romotion incude'E*am+es o$ saes +romotion incude'

> Saes +romotions are s#ort<term e$$orts directed to t#e consumeror retaier to ac#ie!e suc# s+eci$ic o"ecti!es as consumer<

+roduct tria or immediate +urc#ase

> Saes +romotions are s#ort<term e$$orts directed to t#e consumeror retaier to ac#ie!e suc# s+eci$ic o"ecti!es as consumer<

+roduct tria or immediate +urc#ase

4 Product Tie<Ins

6 Contests

D S%ee+stakes

S+onsors#i+ o$ S+ecia E!ents5

.7 Point<O$<Purc#ase 1is+as



&onsumer Sales Promotion echni)ues ( &an

oster 0ong( erm %b$ectives

5. Coupons ( maintain currentcustomers, attract new ones

7. Reates ( maintain currentcustomers, attract new ones

8. !ree samples ( encourage new usersby eliminating cost

:. "ail#in premiums



B. $n#pac% premiums ( promotionalbenet packaged with the product

C. Bonus pac%s ( more product !or thesame price

. &rading stamps ( increase storepatronage

E. Contests and sweepsta%es (enhance name recognition and stimulatesales



rade Sales Promotion echni)ues (Persuade &hannel Members to &arry

Products or to 2ncrease Sales 5. Sales contests ( increase sales

7. 'rice#o( o(ers ( push new products ormove large )uantities

8. )d*ertising allowances



:. Display allowances

B. ree goods

C. Push money ( money to carry and topush products



Person(to(person communication betweena company representative and potentialbuyers

ocus is to in!orm and persuade prospect Short#term goal+ make a sale Long#term goal+ build relationship



'olitical Ris%s F unstable or corruptgovernments change the rules !or thesales team

Regulator, -urdles F -overnments canset up )uotas or tari/s that a/ect the

sales !orce Currenc, !luctuations F increase and

decrease in local currencies can makecertain products una/ordable

"ar%et n%nowns F lack o! knowledge o!market conditions, the accepted way o!doing business, or positioning o! theproduct may derail the sales team6s e/orts



-/ "rentice 0all123

4/

'ersonal Selling 'hilosoph, F commitmentto the marketing concept and a willingness toadopt the role o! problem solver1partner

Relationship Strateg, F game plan !or

establishing and maintaining high()ualityrelationships with prospects1customers

'roduct Strateg, F plan that can assist thesales representative in selecting and

positioning products to satis!y customer needs



-/ "rentice 0all123

45

Customer Strateg, F plan that ensuresthat the sales pro!essional will be ma"imallyresponsive to customer needs

'resentation Strateg, F consists o!

setting ob$ectives !or each sales call andestablishing a presentation plan to meetthose ob$ectives



he Personal Selling Process

5. 'anning+ what, how, when

7. 'rospecting+ who 8. 'reparing+ what buyers need,competitors o/er



:. Selling

a. Approaching customer

b. Making presentation

c. Answering )uestions

d. &losing sale

B. !ollowing up ( establishing solid link



(nternational Public elations

> T#e o" consists o$ not on encouragingt#e +ress to co!er +ositi!e stories a"outcom+anies5 "ut aso o$ managing

un$a!ora"e rumors5 stories5 and e!ents

> T#e o" consists o$ not on encouragingt#e +ress to co!er +ositi!e stories a"outcom+anies5 "ut aso o$ managing

un$a!ora"e rumors5 stories5 and e!ents

> Creating good reations#i+s %it# t#e +o+uar +ress and ot#er media to #e+com+anies communicate messages tot#eir +u"icsFcustomers5 t#e genera

+u"ic5 and go!ernmenta reguatorsFist#e roe o$ +u"ic reations (PR)

> Creating good reations#i+s %it# t#e +o+uar +ress and ot#er media to #e+com+anies communicate messages tot#eir +u"icsFcustomers5 t#e genera

+u"ic5 and go!ernmenta reguatorsFist#e roe o$ +u"ic reations (PR)



*mployee Relations ( &reate avorableAmbassadors to the &ommunity

&ustomer Relations ( Show irm &ares About

&ustomers Press Relations ( 4eep Shapers o! Public%pinion on irm6s Side

-overnment Relations ( 'e a -ood &iti#en



-lobally 2ntegrated Marketing&ommunications <-2M&?

◦ -2M& is a system o! active promotional

management that strategicallycoordinates global communications in allo! its component parts.

◦ 'oth hori#ontally <country(level? andvertically <promotion tools? are used in-2M&.



2ntegrated Marketing &ommunications<2M&?

◦ 2M& coordinates di/erent communication

vehicles F mass advertising, sponsorships,sales promotion, packaging, point(o!(purchase displays, so !orth.



hank Gou

Module 4 Lecture Inter

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