Slide 1Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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INTEGRATED MARKETING COMMUNICATIONS AND INTERNATIONAL ADVERTISING
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Local market characteristics that affect the advertising and promotion of products
The impact of emerging global segments on communications decisions
The strengths and weaknesses of sales promotion and public relations in global marketing
When global advertising is most effective; when modified advertising is necessary
The effect of limited media, excessive media, paper and equipment shortages, and government regulations on advertising and promotion budgets
How the communication process and advertising can misfire
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Global Perspective: Battle for Market Supremacy—Coke versus Pepsi in India
Integrated marketing communications (IMC)
Sales promotions
Trade shows
Personal selling
Direct selling
Public relations
IMC example: Coca-Cola’s promotional campaign to gain market supremacy in the Indian soft drink market-Valentine’s Day Campaign
Objective: to combine the disciplines to provide clarity, consistency and maximum impact through a seamless integration of discrete messages.
Problem: the availability of appropriate communication channels to customers can hinder the implementation of an IMC.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Sales promotions
Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation.
Short-term efforts directed to the consumer or retailer to achieve specific objectives:
Consumer-product trial or purchase
Obtain retail point-of-purchase displays
Support and augment advertising and personal selling
For example, Disneyland in Hong Kong runs promotions throughout the year. One key promotion they have been running is ‘Stay and Play for Two Days’.
Product sampling effective with new products or those with small market share.
‘Bottom of the pyramid’ provides a viable market but may require non-conventional market approaches such as sales promotions.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Toyota’s mechanical defect PR crisis
Domino’s Pizza (You Tube)-the power of new media in PR
Areas of focus:
Global workplace standards
Corporate sponsorships
The role of public relations (PR) is creating good relationships with the popular press and other media to help companies communicate messages to their customers, the general public, and governmental regulators.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Here are a few takeaways from the Toyota crisis:
Accept that it can happen to you. If companies such as Toyota and Johnson & Johnson can get hit with major crises, so can your organisation. Have a crisis plan
Plan ahead. When a crisis hits, executives no longer have the luxury of deliberating and responding with a news release for tomorrow’s newspaper. In today’s social media, 24/7 TV news and websites, response times are measured in minutes.
Know where to find the experts. If a major crisis hits, you’ll need help. Take time now to identify the most experienced crisis management consultants in your industry and know how to reach them at a moment’s notice.
Get active on social media now. Twitter, Facebook, YouTube and blogs are indispensable channels for communication during a crisis. Domino’s learned the hard way. It had no presence on social media until the crisis hit.
If a crisis hits, assume responsibility and act. Taking responsibility isn’t the same as accepting blame. Customers want to see that you understand the gravity of the situation and will go out of your way to satisfy their needs.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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International Advertising
Growth in global advertising expenditures has slowed along with the economy.
Decisions involving advertising are those most often affected by cultural differences among country markets.
Basic framework of international advertising:
Global ad expenditure to reach the 2008 peak in 2011 and exceed it in 2013.
Developing markets will continue to grow much faster than developed markets: developing markets will account for 35.9 per cent of ad expenditure in 2013, up from 31.5 per cent in 2010.
Ad expenditure in newspapers and magazines to fall by 2 per cent between 2010 and 2013. Technology to help television, cinema and outdoor grow ahead of the market, while internet advertising grows three times faster than the market as a whole.
Display advertising now the fastest-growing internet category, driven by online video and social media.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Develop the most effective message(s) for the market segments selected.
Select effective media.
Execute the campaign.
Evaluate the campaign relative to the goals specified.
Of all the elements of the marketing mix, decisions involving advertising are those most often affected by cultural differences among country markets. Consumers respond in terms of their culture, its style, feelings, value systems, attitudes, beliefs and perceptions.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Increased need for more sophisticated advertising strategies.
For example Gillette with more than 800 products in 200 countries.
Balance between standardisation of advertising themes and customisation.
‘Gillette, the best a man can get’, common global image
Consumer cultures
Focus on newer global market segments defined by ‘consumer cultures’ related to shared sets of consumption-related symbols:
Convenience
Youth
Internationalism
Humanitarianism.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Most well-established global companies use standardised marketing campaigns with some local adaptation.
Regional segmentation is based on the similarities in customer needs and preferences that exist at the regional level rather than the global level.
BEM’s
Country of origin effects impact strategy.
For example Coca-Cola developed a regional brand of juice called Qoo (pronounced ‘coo’) that capitalises on the attraction for Japanese pop culture in many parts of Asia (such as Singapore). The brand hinges on an animated character named Qoo.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Product Attributes and Benefit Segmentation
Different cultures usually agree on the benefit of the primary function of a product.
Other features and psychological attributes of the item can have significant differences
Cameras
Almonds.
Blue Diamond – assumes that no two markets will react the same, that each has its own set of differences, and that each will require a different marketing approach and strategy.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Global Advertising and the Communications Process
If not properly considered, the different cultural contexts can increase the probability of misunderstandings.
Effective communication demands the existence of a ‘psychological overlap’ between the sender and the receiver.
Most promotional mistakes are attributable to one of key areas of communication process not properly reflecting cultural influences or to a general lack of knowledge about the target market.
It can never be assumed that ‘if it sells well in one country, it will sell in another’.
Nestlé Confectionary’s Kit Kat brand became a ‘lucky charm’ for Japanese students sitting university entrance exams. Kit Kat is pronounced ‘Kitto Katsu’ in Japanese, which translates as ‘surely succeed’. …sparking the rumour that Kit Kat was a charm for success.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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The International Communications Process
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Legal Constraints
Laws that control comparative advertising vary from country to country in Europe
Comparative advertising
Accessibility to broadcast media
Internet services
Special taxes that apply to advertising.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Linguistic Limitations
Language is one of the major barriers to effective communication through advertising.
Translation challenges
Low literacy in many countries
Tourism Australia’s ad with the slogan ‘So where the bloody hell are you?’
Multiple languages within a country
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Knowledge of cultural diversity must encompass the total advertising project.
Existing perceptions based on tradition and heritages are often hard to overcome.
Subcultures
Changing traditions
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Media Limitations and Production and Cost Limitations
Media limitations may diminish the role of advertising in the promotional program and put focus on other elements of promotional mix.
Examples of production limitations:
Lack of high-grade paper.
Low-cost reproduction in small markets poses a problem in many countries.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Newspapers
Magazines.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Direct mail
The internet
Other media.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Media Penetration in Selected Countries (per 1000 persons)
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Mobile marketing
Targeted and personal
Social media
Other media.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Consumer criticism
Deceptive advertising
Self-regulation
Government regulations.
Copyright 2012 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing 2e by Cateora
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Summary
The major problem facing international advertisers is designing the best messages for each market served.
The availability and quality of advertising media vary substantially around the world.