Copyright Atomic Dog Publishing, 2002 The International Marketing Communications

Copyright Atomic Dog Publishing, 2002 Chapter Objectives Describe the international promotional mix and the international communication process Explore the international advertising formats and practices around the world Describe the international advertising and media infrastructure and infrastructure-related challenges in different markets Describe advertising strategies and budgeting decisions and offer examples of international applications

Copyright Atomic Dog Publishing, 2002 International Promotional Mix Advertising Salesforce Management Sales Promotion Public Relations Publicity

Copyright Atomic Dog Publishing, 2002 International Promotional Mix, continued Understanding the norms, motivations, attitudes, interests, and opinions of the target market is crucial to company success in marketing to and communicating with different cultures around the globe.

Copyright Atomic Dog Publishing, 2002 Product Price Promotion Place What does this picture depict?

Copyright Atomic Dog Publishing, 2002 Marketing Communication Process  Effective communication requires 3 elements connected by a message channel:  The sender  The message  The receiver  Encoding- converting message into symbolic form properly understood by the receiver  Decoding- dependent on receiver’s ability to transform message symbols back into thought  Noise- Extraneous stimuli that interfere with transfer of message through message channel

Copyright Atomic Dog Publishing, 2002 International Communication Process SENDERRECEIVER MEDIUM Sponsor (sender) encodes message and sends it through the channel (medium) to the international consumer (receiver); the international consumer receives the message and decodes it into meaningful information.

Copyright Atomic Dog Publishing, 2002 Marketing Communication Process Noise SenderMessage Channel Receiver Communication Outcome Feedback

Copyright Atomic Dog Publishing, 2002 Non-Personal Communication Media Print media Broadcast media Interactive media  Not widely available in developing countries

Copyright Atomic Dog Publishing, 2002 Personal Media Salespeople Telemarketers Trade show and exhibits  Individuals can interact with knowledgeable company representatives

Copyright Atomic Dog Publishing, 2002 International Communication Challenges Media infrastructure Unreliable mail Limited broadcast media Media is not use for advertising Translation deficiencies—meanings intended may not be the meanings conveyed

Copyright Atomic Dog Publishing, 2002 Lessen Communication Challenges 1)Hire research firms to evaluate message in multiple international environments 2)Evaluate effectiveness communication in attracting target market attention 3)Evaluate effectiveness communication in getting consumers to purchase the product

Copyright Atomic Dog Publishing, 2002 Advertising A nonpersonal communication by an identified sponsor across international borders, using broadcast, print, and/or interactive media.

Copyright Atomic Dog Publishing, 2002 Media Infrastructure Availability Reliability Restrictions Costs

Copyright Atomic Dog Publishing, 2002 Media Reliability Extent to which the existing media reliably reach the target consumer  Print lag times  Poor quality  Off-air Television

Copyright Atomic Dog Publishing, 2002 Media Restrictions Limitations imposed by existing media  Limiting the number and types of advertisements  Cultural differences  Clustered ads  Media scheduling

Copyright Atomic Dog Publishing, 2002 Media Costs Differ greatly between countries, and even within a particular country  Income per capita of target market  Competition for media  Firm status  Translation costs

Copyright Atomic Dog Publishing, 2002 Various International Formats, Features, and Trends Posters on Kiosks and Fences Advertising on the Sides of Private Homes Advertising on Plastic Shopping Bags Advertising on Outdoor Umbrellas Billboards

Copyright Atomic Dog Publishing, 2002 Global Media Television  CNN, Bloomberg, MTV  Tonight Show, Disney  Fox Broadcasting, 20th Century Fox, 20th Century Television

Copyright Atomic Dog Publishing, 2002 Infomercials & TV Shopping Shopping  QVC, Home Shopping Network  Home Order Television

Copyright Atomic Dog Publishing, 2002 Using English In Local Advertisements English:  Requires less space in print and broadcasting time  Conveys a cosmopolitan attitude  Endows a product or service with status

Copyright Atomic Dog Publishing, 2002 Product Placement U.S. movies’ box-office receipts are steadily increasing U.S. films are very successful abroad Placing brands in movies and television programming with the purpose of promoting the products to viewers

Copyright Atomic Dog Publishing, 2002 Advertising Regulations Comparative Advertising Advertising to Children Advertising Vice Products Other Regulations:  Vary by country; examples: - France: Requirement to keep the French language pure - Islamic countries: Ban the use of sex in advertising

Copyright Atomic Dog Publishing, 2002 International Advertising Infrastructure Develop ads in-house Local advertising agencies Home-country agencies International agencies  Top agencies are: - Omnicom Group - Interpublic Group - Young & Rubicam (U.S.) - WPP Group (U.K.) - Dentsu, Inc. (Japan)

Copyright Atomic Dog Publishing, 2002 International Advertising Strategy Standardization vs. Adaptation  Standardization reduces costs: No duplication of effort for each market  Individual campaigns delay product launches  Consumers increasingly share similar frames of references with regard to products and consumption

Copyright Atomic Dog Publishing, 2002 In Italy, where James Bond is considered too uptight, ads ignored star and featured a convict with the line: “You better have a good reason to miss the next James Bond film.” Is this example of Standardized or Adapted Advertising?

Copyright Atomic Dog Publishing, 2002 Bruce Almighty in Malaysia Motorists pass a billboard advertising a billboard Jim Carrey’s latest movie “Bruce Almighty: along a highway in Kuala Lumpur, Malaysia. Government censors have postponed the Malaysian release of the movie pending a decision on whether to ban it for trivializing the subject of God.” AP Aug. 10, 2003

Copyright Atomic Dog Publishing, 2002 Message Standardize or Adapt? “Cavity reducing fluoride toothpaste sells well in the U.S. where healthy teeth care perceived as important, but has limited appeal in markets such as Great Britain and France where the reason for buying toothpaste is breath control.”

Copyright Atomic Dog Publishing, 2002 Message / Positioning: Standardize or Adapt? Differing culture, values and purchase motivations affects advertising message E.g. In Germany, bicycle is primary source of transportation; promote it as reliable, optimal performance regardless of weather In U.S., primarily used for recreation, focus on weekend fun.

Copyright Atomic Dog Publishing, 2002 Standardize or adapt advertising? Standardize? Reduce costs Accelerates product launches Consumers preferences and product references may becoming more similar Increases control, especially where local resources are questionable

Copyright Atomic Dog Publishing, 2002 Barriers to Standardization Communication infrastructure Agencies might not serve a particular market Consumer literacy Legal restrictions and self-regulation Differing values and purchase motivations Attitudes toward product country of origin Promotional mix elements

Copyright Atomic Dog Publishing, 2002 Budgeting Decisions Objective-and-Task Method 1.Identify advertising goals 2.Conduct research 3.Determine cost of achieving goals 4.Allocate the necessary sum Percent-of-Sales Method  Base budget on past or projected sales

Copyright Atomic Dog Publishing, 2002 Budgeting Decisions, continued Historical Method  Base budget on past expenditures giving more weight to recent expenditures Competitive Parity  Use international competitors’ budgets as benchmark Executive-judgment method  Use collective executive opinion All-you-can-afford  Best suits small and medium firms

Copyright Atomic Dog Publishing, 2002 Chapter Summary Addressed the international promotional mix and the international communication process Explored international advertising formats and practices around the world Described international advertising and media infrastructure, and infrastructure-related challenges in different markets Addressed advertising strategies and budgeting decisions