Chapter 13

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Chapter 13 14 Global MarketingCommunications
Decisions
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Global Marketing Communications

• The primary purpose of marketing communications
  is to tell customers abut the benefits and values
  that a company, product, or service offers
• Integrated Marketing Communications (IMC) is
  becoming more popular because of the challenges
  of communicating across national borders

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Global Advertising

• Advertising is any sponsored, paid message that
  is communicated in a non-personal way
• Single country
• Regional
• Global
• Global advertising is the use of the same
  advertising appeals, messages, art, copy,
  photographs, stories, and video segments in
  multiple country markets

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Standardization vs. Adaptation

• Primary Question
• Must the specific advertising message and media
  strategy be changed from region to region or
  country to country?

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Standardization vs. Adaptation

• Four difficulties that compromise an
  organizations communication efforts
• The message may not get through to the intended
  recipient.
• The message may reach the target audience but may
  not be understood or may even be misunderstood.
• The message may reach the target audience and may
  be understood but still may not induce the
  recipient to take the action desired by the
  sender.
• The effectiveness of the message can be impaired
  by noise.

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Advertising Agencies Organizations and Brands

• Understanding the term organization is key
• Umbrella corporations/holding companies have one
  or more core advertising agencies
• Each organization has unites specializing in
  direct marketing, marketing services, public
  relations, or research
• Individual agencies are considered brands
• Full service brands create advertising, and
  provide services such as market research, media
  buying, and direct marketing

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Selecting an Advertising Agency

• Company organization
• Companies that are decentralized ma want to leave
  the choice to the local subsidiary
• National responsiveness
• Is the global agency familiar with local culture
  and buying habits of a particular country?
• Area coverage
• Does the agency cover all relevant markets
• Buyer perception
• What kind of brand awareness does the company
  want to project?

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Creating Global Advertising

• Creative strategy
• Big idea
• Advertising appeal
• Rational approach
• Emotional approach
• Selling proposition
• Creative execution
• Art Copy

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Cultural Considerations
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Cultural Considerations Japanese American
Differences

• Indirect (vs. direct forms) expression is
  preferred
• There is often little relationship between ad
  content and the advertised product
• Only brief dialogue or narration is used in
  television commercials, with minimal explanatory
  content
• Humor is used to create a bond of mutual feelings
• Famous celebrities appear as close acquaintances
  or everyday people
• Priority is placed on company trust rather than
  product quality
• The product name is impressed on the viewer with
  short, 15-second commercials

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Global Media Decisions

• Prepare new copy for foreign markets in host
  countrys language
• Translate the original copy into target language
• Leave some or all copy elements in home country
  language

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Public Relations and Publicity

• Fosters goodwill and understanding
• Generates favorable publicity
• Tools
• News releases
• Media kits
• Press conferences
• Tours
• Articles in trade and professional journals
• TV and radio talk show appearances
• Special events

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The Growing Role of Public Relations in Global
Marketing

• Public Relations expenditures are growing at an
  average of 20 per year
• In India they are reported to be growing by 200
  annually
• Reasons for the growth
• Increased governmental relations between
  countries
• Technology
• Societal issues like the environment

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Public Relations Practices around the World

• Public relations practices can be affected by
• Cultural traditions
• Social and political contexts
• Economic environments
• Public relations professionals must understand
  these differences and tailor the message
  appropriately

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Chapter 14 Sales Promotions

• Sales promotion refers to any paid consumer or
  trade communication program of limited duration
  that adds tangible value to a product or brand
• Price vs. non-price promotions
• Consumer vs. trade promotions

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Sales Promotion

• Provide a tangible incentive to buyers
• Reduce the perceived risk associated with
  purchasing a product
• Provide accountability for communications
  activity
• Provide method of collecting additional data for
  database

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Sales Promotion Global or Local

• In countries with low levels of economic
  development, low incomes limit the range of
  promotional tools available
• Market maturity can also be different from
  country to country
• Local perceptions of a particular promotional
  tool or program can vary
• Local regulations may rule out use of a
  particular promotion in certain countries
• Trade structure in the retailing industry can
  affect the use of sales promotions.

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Sampling

• Sampling
• Provides consumer with opportunity to try product
  at no cost
• May be distributed in stores, in the mail,
  through print media, at events, or door-to-door

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Couponing

• Couponing
• Printed certificates entitle the bearer to a
  price reduction or some other special
  consideration for purchasing a particular product
• Couponing accounts for 70 of consumer promotion
  spending in the US

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Couponing
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Promotions Issues and Problems

• Fraud
• Pepsi promotion with Apple
• Regulations vary by country
• Cultural dispositions to coupons and other sales
  promotions
• Malaysians see coupon usage as embarrassing
• Islam frowns on gambling so sweepstakes may not
  work

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Personal Selling

• Person-to-person communication between a company
  representative and potential buyers
• Focus is to inform and persuade prospect
• Short-term goal make a sale
• Long-term goal build relationship

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The Strategic/Consultative Selling Model
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Strategic/Consultative Selling Model

• Personal Selling Philosophy commitment to the
  marketing concept and a willingness to adopt the
  role of problem solver/partner
• Relationship Strategy game plan for
  establishing and maintaining high-quality
  relationships with prospects/customers
• Product Strategy plan that assists sales
  representative in selecting positioning
  products to satisfy customer needs

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Strategic/Consultative Selling Model

• Customer Strategy plan that ensures that the
  sales professional will be maximally responsive
  to customer needs
• Presentation Strategy consists of setting
  objectives for each sales call and establishing a
  presentation plan to meet those objectives

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Sales Force Nationality

• Expatriates
• Host-country nationals
• Third-country nationals
• Other options

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Expatriates

• Advantages
• Superior product knowledge
• Demonstrated commitment to service standards
• Train for promotion
• Greater HQ control

• Disadvantages
• Higher cost
• Higher turnover
• Cost for language and cross-cultural training

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Host Country Nationals

• Advantages
• Economical
• Superior market knowledge
• Language skills
• Superior cultural knowledge
• Fast implementation

• Disadvantages
• Needs product training
• May be held in low esteem
• Language skills may not be important
• Difficult to ensure loyalty

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Third Country Nationals

• Advantages
• Cultural sensitivity
• Language skills
• Economical
• Allows regional sales coverage

• Disadvantages
• May face identification problems
• May be blocked for promotions
• Income gaps
• Needs product and/or company training
• Loyalty not assured

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Other Options

• Sales agents
• Exclusive license arrangements
• Contract manufacturing or production
• Management-only agreements
• Joint ventures

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Mass Marketing

• Communication that is typically aimed at broad
  segments of consumers with certain demographic,
  psychographic, or behavioral characteristics

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Direct Marketing

• Any communication with a consumer or business
  recipient that is designed to generate a response
  in the form of
• An order
• Request for further information
• A visit to a store or other place of business

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Direct Marketing vs. Mass Marketing
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Special Forms of Marketing

• Direct Marketing
• Direct mail
• Catalogs
• Infomercials, Teleshopping
• Event Sponsorship
• Concerts, sporting events
• Product placement in movies
• Internet Communications
• Google targets buyer by his input

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One-to-One Marketing

• Building from Customer Relationship Management
• Identify customers and accumulate detailed
  information about them
• Differentiate customers and rank them in terms of
  their value to the company
• Interact with customers and develop more cost
  efficient and effective forms of interaction
• Customize the product/service offered to the
  customer

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Catalogs

• A magazine style publication that features
  photographs and extensive information about a
  companys products
• Product Placement

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Infomercials and Teleshopping

• An infomercial is a form of paid TV in which
  a particular product is demonstrated, explained,
  and offered for sale to viewers who call a
  toll-free number on the screen
• Teleshopping on channels like HSN and QVC is
  exclusively devoted to demonstration and selling

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Interactive Television

• ITV allows viewers to interact with the
  programming content they are viewing
• In the United Kingdom, more than half of pay-TV
  subscribers use ITV
• Remote controls have buttons to push to order
  products shown on screen

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Expenditures for Outdoor Advertising as a
Percenatage of Total Ad Spending
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Sponsorships

• A company pays a fee to be associated with an
  event, team, athletic association, or sports
  facility
• Combines elements of PR and sales promotion
• Draws media attention

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Product Placement

• Arranging to have the companys products and
  brand names appear in TV shows, movies, and
  other types of entertainment
• Marketers also lend or donate products to
  celebrities and other public figures