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CHAPTER 10: INTEGRATED MARKETING COMMUNICATIONS AND INTERNATIONAL…
CHAPTER 10: INTEGRATED MARKETING COMMUNICATIONS AND INTERNATIONAL ADVERTISING
Integrated Marketing Communications (IMC)
Key Considerations
Advertising, sales promotions, trade shows, personal selling, direct selling, public relations
Availability of channels varies in different markets
Goal is to achieve synergies
Sales Promotions in International Markets
Directed toward consumer or retailer
Local adaptation crucial
Media limitations in some countries
Major constraints can be imposed by local laws
specific objectives
Consumer product trial or immediate purchase
Consumer introduction to the store or brand
Gaining retail point-of-purchase displays
Encouraging stores to stock product
Supporting and augmenting advertising and personal sales
International Public Relations
The Role of Public Relations (PR)
Create good relationships with press and media
Encourage press to cover positive stories about company
Manage unfavorable rumors, stories, and events
Obtain corporate sponsorships
Effective PR benefits communication with public
Customers, the general public, and government regulators
International Advertising
Global mass media advertising
Growth especially in use of digital media
A tool for social change
Influences consumers’ decision-making about finances
Advertising expenditures generally cyclical
Culture and Advertising
Purpose of an ad
Interpret or translate qualities of products and services in terms of consumers needs, wants, desires, and aspirations
Consumer response to ads impacted by:
Culture, style, feelings, value systems, attitudes, beliefs, perceptions
International ad must coincide with cultural norms
Emotional appeals, symbols, persuasive approaches
Steps for International Advertising
Perform marketing research
Specify the goals of communication
Develop the most effective message(s) for the market segments selected
Select effective media
Compose and secure budget based on what is required to meet goals
Execute the campaign
Evaluate the campaign relative to the goals specified
Advertising Strategy and Goals
Strategies for Advertising
Increasing need for more sophisticated strategies
Intense competition for world markets and sophistication of foreign consumers
Standardization versus customization
Standardized products can often be marketed globally, but require a different advertising appeal in different markets
Market segmentation strategies
Many ignore national boundaries
Some propose creating segments defined by “consumer cultures”
Product Attribute and Benefit Segmentation
Market offering a bundle of satisfactions buyer receives
Primary function of product or service
Other benefits imputed by values and customs of culture
Cultures may seek same primary function
Cultures often perceive other features differently
Psychological attributes, satisfactions
Regional Segmentation
Standardization becoming more possible in Europe
Emergence of pan-European communications media
Legal restrictions slowly being eliminated
Companies with pan-European promotions strive for harmony in brand names and advertising
Avoids confusion
The Message: Creative Challenges
Global Advertising and the Communications Process
Message may fail for variety of reasons
Does not get through due to media inadequacy
Misunderstood by audience because of different cultural interpretations
Understood, but ineffective because marketer did not correctly access needs, wants, or thinking process of target market
Components of Communication Process
An information source
An international marketing executive with a product message to communicate
Encoding
The message from the source converted into effective symbolism for transmission to a receiver
A message channel
The sales force and/or advertising media that convey the encoded message to the intended receiver
Decoding
The interpretation by the receiver of the symbolism transmitted from the information source
Receiver
Consumer action by those who receive the message and are the target for the thought transmitted
Feedback
Information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process
Noise
Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process and affect any or all of the other six steps
Promotional Misfires
Cultural context impacts understanding of message
Without careful consideration, misunderstanding probable
May be a lack of knowledge about the target market
“Psychological overlap” between sender and receiver
Important for effective communication
Encoding errors
Symbols used may send unintended message
Media channel used can cause issues
Decoding errors
Generally caused by a poorly encoded message
Feedback
Proper feedback system (ad testing) allows company to correct errors before substantial damage occurs
Noise
Compromises all external influences: competitive advertising, sales personnel, confusion on receiving end
Legal Constraints
Comparative advertising
Advertisement of specific products
Television advertisements
Special advertising taxes
Linguistic Limitations
Different languages of different countries
Different languages or dialects within same country
Translation efforts often insufficient
Literacy levels vary by country
Cultural Diversity
Language and culture interrelated
Perception based on tradition and heritage
Subcultures within countries also require attention
Media Limitations
Challenges marketer’s creativity
Production and Cost Limitations
Budget and access to materials impact choice of media
Media Planning and Analysis
The Communications Revolution
Influence of electronic communication media
Tactical Considerations
Availability
Access to certain types of media vary by country; some banned
Cost
Prices of media susceptible to negotiation in most countries
Coverage
Some sectors of population difficult to reach; information about coverage sometimes not available
Lack of market data
Seems to characterize most international markets
Newspapers
Competition: lacking in some countries, too much in others
Magazines
Use of foreign national consumer magazines by international advertisers notably low
Radio and television
Major communications media in almost all nations
Satellite TV
Expansion of coverage emphasizes global standardized messages
Direct mail
Viable medium in increasing number of countries
The Internet
Global growth in company spending on online advertising
Social media
Increases speed of word-of-mouth advertising
Mobile phone applications
Increasing number of apps available to consumers
Campaign Execution and Advertising Agencies
Advertising Agencies
Manage development and execution of ad campaigns
Local domestic agencies
Expanding with demand from MNCs
May provide best cultural interpretation and best feel for market
Multinational agency with local branches
Sophistication of a major agency with local representation
Better able to provide a coordinated worldwide ad campaign
International Control of Advertising: Broader Issues
Consumer Criticisms
Europeans skeptic of advertising; view it as nonreliable
Non-European countries view ads as entertaining and good sources of information
Regulation
Self-regulation versus government regulation