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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 Marketing 15th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham Introduction • Integrated marketing communications (IMC) are composed of advertising, sales promotions, trade shows, personal selling, direct selling, and public relations • All these mutually reinforcing elements of the marketing mix have as their common objective the successful sale of a product or service • For most companies, advertising and personal selling are the major components in the marketing communications mix • The goal of most companies, large and small, is to achieve the synergies possible when sales promotions, public relations efforts, and advertising are used in concert Roy Philip Sales Promotions in International Markets • Sales promotions – Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation – Shortterm efforts directed to the consumer or retailer to achieve specific objectives • In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increased • Product sampling Roy Philip International Public Relations • Public relations (PR) is creating good relationships with the popular press and other media – To help companies communicate messages to customers, the general public, and governmental regulators • • • • Bridgestone/Firestone Tires safety recall Global workplace standards Building an international profile Corporate sponsorships Roy Philip International Advertising Perform marketing research Specify the goals of the communication Develop the most effective message(s) for the market segments selected Select effective media Compose and secure a budget Execute the campaign Evaluate the campaign relative to the goals specified Roy Philip Advertising Strategy and Goals • Marketing problems – Require careful marketing research – Thoughtful and creative advertising campaigns • In country, regional, and global markets • Increased need for more sophisticated advertising strategies • Balance between standardization of advertising themes and customization • Consumer cultures Roy Philip 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 Roy Philip Regional Segmentation • PanEuropean 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 Roy Philip Legal Constraints Comparative advertising Advertising of specific products Control of advertising on television Accessibility to broadcast media Limitations on length and number of commercials • Internet services • Special taxes that apply to advertising • • • • • Roy Philip Linguistic Limitations • Language is one of the major barriers to effective communication through advertising • Translation challenges • Low literacy in many countries • Multiple languages within a country • Incountry testing with the target consumer group avoids problems caused by linguistic differences Roy Philip 10 Media Limitations and Production and Cost Limitations • Media limitations may diminish the role of advertising in the promotional program • Examples of production limitations: – Poorquality printing – Lack of highgrade paper • Lowcost reproduction in small markets poses a problem in many countries Roy Philip 11 Campaign Execution and Advertising Agencies • Managed by advertising agencies – Local domestic agency – Companyowned agency – Multinational agency with local branches • Compensation – Commonly 15 percent throughout the world – Some companies moving to rewardbyresults Roy Philip 12 International Control of Advertising – Broader Issues • • • • • Consumer criticism Deceptive advertising Decency and blatant use of sex Selfregulation Government regulations Roy Philip 13 Summary (1 of 2) • 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 Roy Philip 14 Summary (2 of 2) • 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 Roy Philip 15 ... Bridgestone/Firestone Tires safety recall Global workplace standards Building an? ?international? ?profile Corporate sponsorships Roy Philip International? ?Advertising Perform? ?marketing? ?research Specify the goals of the communication... public relations efforts, and advertising are used in concert Roy Philip Sales Promotions in? ?International? ?Markets • Sales promotions – Marketing? ?activities that stimulate consumer purchases and improve retailer or middlemen ... Evaluate the campaign relative to the goals specified Roy Philip Advertising Strategy and Goals • Marketing? ?problems – Require careful? ?marketing? ?research – Thoughtful and creative advertising campaigns