Chapter 16 1. Local market characteristics that affect the advertising and promotion of products 2. The strengths and weaknesses of sales promotion and public relations in global marketing 3. When global advertising is most effective; when modified advertising is necessary

Chapter Learning Objectives 4. The effects of a single European market on advertising 5. The communication process and advertising misfires 6. The effect of limited media, excessive media, paper and equipment shortages, and government regulations on advertising and promotion budgets

Introduction Integrated marketing communications (IMC) comprises: advertising sales promotions personal selling direct selling, and public relations

Sales Promotions in International Markets Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase Examples : Coupons Gifts Sponsorship of Special Events

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

International Advertising Decisions involving advertising are those most often affected by cultural differences among country markets Consumers respond in terms of their culture, its style, feelings, value systems, attitudes, beliefs, and perceptions

Legal Constraints Comparative advertising is heavily regulated in other parts of the world Advertising on television is strictly controlled in many countries, e.g., in Germany, for example, commercials must be spaced at least 20 minutes apart and total ad time may not exceed 12 minutes per hour. Commercial stations in the United Kingdom are limited to 7 minutes per hour

Linguistic Limitations For example, Chrysler Corporation translated its U.S. theme that advertised “Dart Is Power.” To the Spanish, the phrase implied that buyers sought but lacked sexual vigor The Bacardi wanted to sell the drink in Germany called Pavane, but it is perilously close to pavian, which means “baboon” A company marketing tomato paste in the Middle East found that in Arabic the phrase “tomato paste” translates as “tomato glue”

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: Cultural Diversity: Ad campaigns and product brand names being communicated may mean different things to different cultures 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