© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 12 Marketing Communication

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit The Marketing Communication Process Sender (Encodes Message) Message Feedback Message Channel Receiver (Decodes Message ) Noise Communication Outcome

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Communications Process Encoding - Message channel - Decoding –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Communications Process Noise - Outcome - Feedback -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations The two biggest dangers faced in international negotiations: –Parochialism - –Stereotyping -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations The use of Internet in international negotiations allows the exporter to – –Minimize social barriers. – –Negotiate from a home base. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations The process of international business negotiations can be divided into five stages: –Offer The initiation of the process and its progress are determined by background factors of the parties and the overall atmosphere. –Informal meetings It may be necessary to utilize facilitators (such as consultants or agents) to establish the contact.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations –Strategy formulation Review and assess factors to be negotiated. –Negotiations Depend on the cultural background and business traditions prevailing in different countries. –Implementation

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations A combination of attitudes, expectations, and habitual behavior influences negotiation style. Approaches used for adjusting to the style of the host-country negotiators: – – – – –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations Approaches used for adjusting to the style of the host-country negotiators: – – – – –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.2 – Steps in Formulating Marketing Communications Strategy

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Communications Strategy Promotional mix - The promotional mix consists of advertising, personal selling, publicity, sales promotion, and sponsorship.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Promotional Mix Push strategies - Pull strategies - Integrated marketing communications -

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools Business and trade journals and directories – –In deciding which publications to use, the exporter must apply the general principles of marketing communications strategy.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools Direct marketing – –Accomplished through direct-response advertising, telemarketing, and direct selling. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools Direct marketing –Telemarketing (including sales, customer service, and help-desk-related support) is flourishing due to telecommunication systems and deregulation in the industry. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools The Internet - Supports the exporter’s marketing communications in the following ways: –Allow the company to increase its presence in the marketplace. – –Allow 24-hour access to customers and prospects. – –Allow the exporter to gather information for subsequent marketing efforts. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools The Internet –The challenges in Internet-based communications are related to the newness of the medium and the degree to which adjustments need to be made for each market served. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools Trade shows and missions –Trade show is an event where manufacturers, distributors, and other vendors display their products or describe their services to current and prospective customers, suppliers, other business associates, and the press. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools Reasons for participation in trade fairs –Opportunity to introduce, promote, and demonstrate new products. – –Locate a trade intermediary. – –Opportunity for market research and collecting competitive intelligence. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools Reasons for non participation in trade fairs – – – Other promotional events that the exporter can use are trade missions, seminar missions, solo exhibitions, video/catalog exhibitions, and virtual trade shows.

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools Personal selling –Involves high costs per contact. –

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit Levels of Exporter Involvement in International Sales SOURCE: Framework adapted from Reijo Luostarinen and Lawrence Welch, International Operations of the Firm (Helsinki, Finland: Helsinki School of Economics, 1990), chapter 1

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools Four general guidelines to be satisfied for the marketer-intermediary interaction to work: – – – –