Transcript 16 - McGraw Hill Higher Education

Chapter 16
Integrated
Marketing
Communications
and International
Advertising
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-1
Chapter Learning Objectives
• 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 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 can misfire
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-2
Global Perspective
Battle for Market Supremacy: Coke versus
Pepsi in India
• Integrated marketing communications (IMC)
– Advertising
– Sales promotions
– Trade shows
– Personal selling
– Direct selling
– Public relations
• 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  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-3
Sales Promotions in International
Markets
•
•
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
 Consumer introduction to the store
 Obtain retail point-of-purchase displays
 Encourage stores to stock the product
 Support and augment advertising and personal selling
• Product sampling effective with new products or those with small
market share.
‘Bottom of the pyramid’ provides a viable market but may require nonconventional market approaches such as sales promotions.
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-4
International Public Relations
• Arnott’s Biscuits product recall
• Bridgestone/Firestone Tires safety recall
• Areas of focus:
– Global workplace standards
– Building an international profile
– 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  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-5
International Advertising
•
•
•
1.
2.
3.
4.
5.
6.
7.
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:
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.
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-6
Top 20 Global Advertisers (ranked by
total worldwide measured ad spending)
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-7
Top 100 Advertisers’ Global
Spending by Category
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-8
Top 10 Advertisers by Country:
Asia – Pacific Region
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-9
Advertising Strategy and Goals
•
•
•
•
•
Marketing problems require careful marketing research and
thoughtful and creative advertising campaigns in country,
regional, and global markets, respectively.
Increased need for more sophisticated advertising strategies.
Balance between standardisation of advertising themes and
customisation.
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  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-10
Universal versus Regional
Segmentation
• 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.
• Country of origin effects impact strategy.
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-11
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  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-12
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”.
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-13
The International Communications
Process
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-14
Legal Constraints
• Laws that control comparative advertising vary
from country to country in Europe.
• 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
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-15
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
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-16
Cultural Diversity
• 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  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-17
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:
– Poor-quality printing
– Lack of high-grade paper
• Low-cost reproduction in small markets poses a
problem in many countries.
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-18
Media Planning and Analysis –
Tactical Considerations
•
•
•
•
•
•
Availability
Cost
Coverage
Lack of market data
Newspapers
Magazines
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-19
Media Planning and Analysis –
Tactical Considerations (cont.)
•
•
•
•
•
Radio and television
Satellite and cable TV
Direct mail
The Internet
Other media
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-20
Media Penetration in Selected
Countries (per 1000 persons)
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-21
International Control of Advertising:
Broader Issues
•
•
•
•
•
Consumer criticism
Deceptive advertising
Decency and blatant use of sex
Self-regulation
Government regulations
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-22
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.
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.
Copyright  2009 McGraw-Hill Australia Pty Ltd
PPTs t/a International Marketing by Cateora
Slides prepared by Kate Mizerski, Edith Cowan University
16-23