Transcript Ch-12
Chapter 12 Marketing Communications Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Marketing Communication Process Sender (Encodes Message) Message Channel Message Receiver (Decodes Message) Noise Feedback Developed by Cool Pictures & MultiMedia Presentations Communication Outcome Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Stages of the Negotiation Process • The offer – assess each parties’ needs and commitment • Informal meetings – trust-building among deal makers • Strategy formulation – review and assess factors to be negotiated • Negotiations – form, informal, short or long • Implementation Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. International Negotiations • How to negotiate in other countries – Team assistance – Traditions and customs – Language capability – Determination of authority limits – Patience – Negotiation ethics – Silence – Persistence – Holistic view – The meaning of agreements Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Communications Strategy Steps in Formulating Marketing Communications Strategy Step 1 Assess Marketing Communications Opportunities Step 2 Analyze Marketing Communications Resources Step 3 Set Marketing Communications Objectives Step 4 Develop and Evaluate Alternative Strategies Step 5 Assign Specific Marketing Communications Tasks Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Promotional Mix • Advertising – any form of non-personal communication • Personal Selling – the use of person-to-person communication • Publicity – non-paid, commercially significant news • Sales Promotion – Direct inducements of extra value or incentives • Sponsorship – Promoting interests of company by association Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Promotional Mix • Push strategies – focus on personal selling, considered essential in international marketing of industrial goods. • Pull strategies – depend on mass communications (advertising of consumer-oriented goods) to reach target audiences over long distribution channels. • Integrated marketing communications – coordinated use of a broad range of promotional tools to reach a target market. Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Communications Tools • The choice of media is governed by the appropriateness media’s target audience and its efficiency in reaching that audience. • Business and trade journals – Broad-based media • Business Week, The Wall Street Journal – Horizontal media • focus on a particular marketing task (Purchasing World) – Vertical media • focus on a particular market or industry (Trucker World) – Directories and data services Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Communications Tools • Direct marketing – Is intended to elicit immediate and measurable responses to direct-response advertising, telemarketing, and direct selling. – Direct mail depends on acquiring mailing lists that target the intended audience. – Effective direct mailing require extensive planning of materials, format, and mode of mailing. • The Internet – A presence on the Internet is a necessity that can expand marketing communications world-wide with low costs. Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Trade Shows and Missions • Types of international trade events – Trade missions – Seminar missions – Solo exhibitions – Video / catalog exhibitions • Magnitude: Over 16,0000 trade shows generate $50 billion in business annually. Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Trade Show Participation • Reasons for participation – Customer can examine the product. – Goodwill and contact cultivation. – Locating a trade intermediary. – Opportunity to meet government officials and decision makers. – Opportunity for market research and collecting competitive intelligence. – Exporters able to reach sales prospects in brief time period at reasonable cost per contact. • Reasons for not participating – High cost. – Identifying the “right” trade shows to participate in. – Coordination. Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Personal Selling • The most effective promotional tool. • Costs per contact are high. • Yields immediate customer feedback and sales results. • Keys to personal selling – Salesperson’ has the ability to adapt to the customer and the selling situation. – Salesperson must have a thorough knowledge of the product or service. Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Levels of Exporter Involvement in International Sales Type of involvement Target of Sales Effort Level of Advantage/Disadvantage Exporter Involvement Indirect exports Home-countrybased intermediary Low + No major investment in international sales - Minor learning from/control of effort Direct exports Locally based intermediary Medium + Direct contact with local market - Possible gatekeeping by intermediary Integrated exports Customer High + Generation of marketspecific assets - Cost/risk SOURCE: Framework adapted from Reijo Luostarinen and Lawrence Welch, International Operations of the Firm (Helsinki, Finland: Helsinki School of Economics, 1990), chapter 1 Developed by Cool Pictures & MultiMedia Presentations Copyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved.