MKTG 401: Chap 16: Integrated Marketing Communications and International Advertising

Elements of Integrated Marketing Communications (IMC)
-Advertising
-Sales Promotion
-Trade Shows
-Personal Selling
-Direct Selling
-Public Relations
IMC Objective
All of elements of IMC collectively hold the same objective: the successful sale of a product or service
Communication part
The availability of appropriate communication channels can determine entry decisions. The integrated portion is the sending of a consistent message to the customer. Consistent image is important and we hope the consistent message being sent is a good image.
Sales Promotion
-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
-In markets with media limitations the % of the promotional budget allocated to sales promotions may have to be increased.
Sampling
-effective promotional tool when the product concept is new and has a very small market share
-is probably the most frequent way of self promotion but it is also the most expensive.
Public Relations (PR)
-creating good relationships with popular press and other media
-helps companies communicate messages to customers, the general public and governmental regulators
-Building an international Profile
-Global workplace standards
-Corporate sponsorships
Bridgestone/Firestone Tries Safety Recall
demonstrates the importance of public relations in international marketing
7 steps involved in International Advertising
1) Perform marketing research
2) Specify he goals of the communication
3) Develop the most effective message(s) for the market segment selected
4) Select effective data
5) Compose and secure a budget
6) Execute the campaign
7) Evaluate the campaign relative to the goals specified
Advertising Strategy and Goals
-Marketing problems require careful marketing research and thoughtful and creative advertising campaigns in country, regional and global markets
-There is an increased need for more sophisticated advertising strategies
-MNC’s are balancing between standardization of advertising themes and customizations with companies leaning towards the latter
Consumer Cultures
-Standardized products may be marketed globally; however the differences in cultures require a different advertising appeal in different markets
-proposal that newer global markets segments be defined as Consumers cultures related to shared sets of consumption related symbols. (Instead of marketing to segments by national borders, markets to segments based on business buyers or high income, etc)
Product Attributes and Benefit Segmentation
-Differing cultures usually agree on the benefit of the PRIMARY function of a product or service (the core component of the product)
-Other features and psychological attributes of the item can have significant differences
-With differing cultures, the advertising will be selling the same product but communicating it differently to each culture
-Example: Blue Diamond Almonds
Regional Segmentation
-Pan-European 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
The Message: Creative Challenges Outline
-Global advertising and the communications process
-Legal Constraints
-Linguistic Limitations
-Cultural Diversity
-Media Limitations
-Production and Cost limitations
Global Advertising and the Communications Process
-If not properly considered, different cultural contexts can increase the profitability of misunderstandings
-Effective communication: demands the existence of a “psychological overlap” between the sender and the receiver
-It can never be assumed that “if it sells well in one country, it will sell in another”
International Communication Process
1) information source
2) encoding
3) a message channel
4) decoding
5) receiver
6) feedback
7) noise
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
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
-In-country testing with the target consumer group avoids problems caused by linguistic differences
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
Media Limitations
-Media limitations may diminish the role of advertising in the promotional program
Production and Cost Limitations
-Examples of production limitations are poor-quality printing and lack of high-grade paper
-Low-cost reproduction in small markets poses a problem in many countries
Media Planning and Analysis- Tactical Considerations
-Availability
-Cost
-Coverage
-Lack of market data
-Newspapers
-Magazines
-Radio and TV
-Satellite and cable TV
-Direct mail
-The internet
-The new social media
-Other media
Campaign Execution and Advertising Agencies
-Managed by advertising agencies: Local domestic agency, Company-owned agency, Multinational agency with local branches
-Compensation is commonly 15% throughout the world. Some companies are moving to a reward-by-results system
International Control of Advertising-Broader Issues
-Consumer criticism
-Deceptive Advertising
-Dependency and blatant use of Sex
-Self-regulation
-Government regulations