Integrated Marketing Communications and International Advertising Chapter 16 McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Integrated marketing communications …the whole is greater than the sum of the parts

Integrated Marketing Communications (IMC) IMC consists of: Advertising Sales Promotions Trade Shows Personal Selling Usually short term efforts that are meant to stimulate immediate purchases Direct Selling Public Relations Can be good or bad press –Bridgestone/Firestone Tires

Some communication tools Advertisin g Sales promotion Direct marketing Publicity and PR Sponsorship Personal selling Different tools serve different purposes... …but boundaries blurred

Communication tools: the promotional mix Advertisin g Sales promotion Direct marketin g Publicit y and PR Sponsorship Personal selling short-term incentives to encourage sales non-personal communication by an identified sponsor, transmitted to target audience via (mass) media creating, developing direct relationships with individual customers Making“news”; building goodwill, understanding between organisations & publics Informing, persuading potential customers through personal communication supporting event, person, etc, to enhance sponsor’s awareness, image, etc. etc..

Sales Promotions in International Markets 1.Cents-off 2.In-Store Demonstrations 3.Samples 4.Coupons 5.Gifts Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation Examples of sales promotion include: Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer- product trial or immediate purchase 6.Product Tie-Ins 7.Contests 8.Sweepstakes 9.Sponsorship of Special Events, 10.Point-Of-Purchase Displays

International Public Relations The job consists of not only encouraging the press to cover positive stories about companies, but also of managing unfavorable rumors, stories, and events Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of public relations (PR)

Advertising Advertising has been used for centuries. U.S. advertisers spend more than $237 billion each year; worldwide spending approaches $470 billion. Advertising is used by: Business firms Nonprofit organizations Professionals Social agencies Government

Advertising Advertising plays a pivotal role in world commerce and in the way we experience and live our lives. It is part of our language and our culture…It is both a complex communication process and a dynamic business process. O’Guinn et al (2003) Advertising and Integrated Brand Promotion, Ohio: South- Western, p8

Advertising Global Advertising 7 Steps in International Advertising 1. Perform marketing research 2. Specify the goals of the communication 3. Develop the most effective message 4. Select effective media 5. Compose and secure a budget 6. Execute the campaign 7. Evaluate the campaign relative to the goals specified

Advertising Advertising Strategies and Goals Standardization with local customization Where standardization can occur, companies gain in economies of scale, but must alter the advertising appeal to each unique culture Product Attribute and Benefit Segmentation Different cultures may seek the same benefit from the primary function of the product (a car’s primary function is to drive from one point to another); but differences occur when some features are valued over others across cultures (types of car stereos, safety equipment, after sale services, etc). Regional Segmentation Where it is possible, advertising will continue to be segmented and standardized by region (European countries, or Latin American countries).

Selecting Advertising Media Reach Percentage of people exposed to ad Frequency Number of times a person is exposed to ad Media Impact The qualitative value of a message exposure through a given medium

Advertising The International Communication Process (7 steps): 1. An information source 2. Encoding The message from the source converted into effective symbolism for transmission to a receiver. 3. A message channel The sales force and/or advertising media 4. Decoding The interpretation by the receiver of the symbolism transmitted from the information source.

Advertising The 7 Steps in Creating Message (the international communication process) 5. Receiver Consumer action taken by receivers 6. Feedback Effectiveness of message 7. Noise Uncontrollable and unpredictable influences

A model of communication Sourceencodes decodes Receiver Message field of experience field of experience feedback noise Source: adapted from W. Schramm (1971) “How communication works”, in Schramm & Roberts (eds), The process and elements of mass communication

Constraints on Advertising 1. Legal Constraints Varies from one country to another where limits can be on: –Types of products/services that can or can not be advertised (cigarettes, alcohol..) –Amount of time given to advertise products/services on TV, radio etc. –Who the advertising can be targeted to (children, etc)

Constraints on Advertising 2. Linguistic Limitations 3. Cultural Diversity 4. Media Limitations 5. Production and Cost Limitations Examples –Crossing Borders 16.3 pg. 489; 16.4 pg 491

Constraints to Advertising Campaigns There are many problems in communicating a firm’s product offerings to its various target markets around the world. Some of these include: 1.Cultural Diversity: Ad campaigns and product brand names being communicated may mean different things to different cultures 2.Media Limitations: in some underdeveloped countries, there is a shortage of advertising media such as radio stations, print media (newspapers, magazines), and television stations, cable TV, and satellite TV 3.Production and Cost Limitations: In some markets costs are prohibitive to advertise on conventional advertising media; other countries may have low quality paper to print advertising

Constraints to Advertising Campaigns 4.Coverage: In large, less developed countries advertising media such as television may not be geographically dispersed 5.Lack of Market Data: This makes it difficult to reach specific target markets 6.Direct Mail: Even if direct mail is available, it may not work due to high illiteracy rates in some countries 7.The Internet: Though advertising via the internet is fast increasing, the WWW is not widely available in many countries where computers are considered expensive

Media Planning and Analysis When advertising internationally, the company must consider the following: 1. Availability What media is available 2. Cost 3. Coverage 4. Lack of market data Reliable statistical information or research on target audiences…

Media Planning and Analysis Different types of medias used: Newspapers Magazines Radio and television Satellite and cable Direct Mail The internet Other (billboards, cinemas, trucks, ships, etc)

Advertising Agencies Important questions Should global, local or combination of both types of advertising agencies be used? Exhibit 16.5 pg. 507 “World’s Top Advertising Agency Organizations” How much (legal) control should be placed on advertisers?