Integrated Marketing Communications

1
Integrated Marketing Communications
and International Advertising
2
Global Perspective

• Integrated marketing communications (IMC)
• Advertising
• Sales promotions
• Trade shows
• Personal selling
• Direct selling
• Public relations
• Objective the successful sale of a product or
  service

3
Sales Promotions in International Markets

• Sales promotions
• 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 percentage
  of the promotional budget allocated to sales
  promotions may have to be increased
• Product sampling

4
International Public Relations

• Bridgestone/Firestone Tires safety recall
• Global workplace standards
• Building an international profile
• Corporate sponsorships

The role of public relations (PR) is creating
good relationships with the popular press and
other media to help companies communicate
messages to customers, the general public, and
governmental regulators.
5
Steps in the International Advertising Process

• Perform marketing research.
• Specify the goals of the communication.
• Develop the most effective message(s) for the
  market segments selected.
• Select effective media.
• Compose and secure a budget.
• Execute the campaign.
• Evaluate the campaign relative to the goals
  specified.

6
Top 20 Global Advertisers ( millions)

• Insert Exhibit 16.1

7
Advertising Strategy and Goals

• Marketing problems require careful marketing
  research and thoughtful and creative advertising
  campaigns in country, regional, and global
  markets, respectively.
• Increased need for more sophisticated advertising
  strategies.
• Balance between standardization of advertising
  themes and customization.
• Consumer cultures

8
Product Attributes and Benefit Segmentation

• Different cultures usually agree on the benefit
  of the primary function of a product
• Other features and psychological attributes of
  the item can have significant differences

9
Global Advertising and the Communications Process

• If not properly considered, the different
  cultural contexts can increase the probability 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

10
Global Advertising and Promotion Effort.

• Global or standardized advertising strategy.
• Pattern Advertising (similar basic message with
  some local variation)
• Customized.
• Marketing strategy Cultural differences
  Behavior in terms of the product Media
  availability.

11
Global advertising strategy.

• Developed on a global basis not exported.
• Most large firms do not use, only 8 of U.S.
  multi-national firms.

12
Pattern advertising.

• Plan globally act locally.
• Broad outlines or basic positioning given but
  details can be adapted.
• Assuming that there are some differences in
  culture and consumer behavior even if primary
  function is the same.

3
13
Legal Constraints

• Laws that control comparative advertising vary
  from country to country in Europe.
• Comparative advertising - e.g., Germany prohibits
• 
  use of superlatives
• 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 - e.g.,
  Japan.

14
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

15
Cultural Diversity

• Knowledge of cultural diversity must encompass
  the total advertising project - Symbols, colors,
  tastes, values and
• beliefs.
• Existing perceptions based on tradition and
  heritages are often hard to overcome
• Subcultures
• Changing traditions

16
Media Limitations and Production and Cost
Limitations

• Media limitations may diminish the role of
  advertising in the promotional program
• Examples of production limitations
• Poor-quality printing
• Lack of high-grade paper
• Low-cost reproduction in small markets poses a
  problem in many countries

17
Media Planning and Analysis Tactical
Considerations

• Availability
• Cost
• Coverage
• Lack of market data
• Newspapers
• Magazines

18
Media Planning and Analysis Tactical
Considerations (continued)

• Radio and television
• Satellite and cable TV
• Direct mail
• The Internet
• Other media

19
Campaign Execution and Advertising Agencies

• Managed by advertising agencies
• Local domestic agency
• Company-owned agency
• Multinational agency with local branches
• Compensation
• Commonly 15 percent throughout the world
• Some companies moving to reward-by-results

20
Summary

• An integrated marketing communications (IMC)
  program includes coordination among advertising,
  sales management, public relations, sales
  promotions, and direct marketing.
• Currently companies are basing their advertising
  strategies on national, subcultural, demographic,
  or other market segments.
• The major problem facing international
  advertisers is designing the best messages for
  each market served.
• The availability and quality of advertising media
  vary substantially around the world.
• Advances in communication technologies are
  causing dramatic changes in the structure of the
  international advertising and communications
  industries.