Promotion decisions in international markets © 2018 Taylor & Francis

The sender’s frame of reference The receiver’s frame of reference Message Channel Receiver Communication model © 2018 Taylor & Francis

Unaware- ness Awareness Compre- hension Conviction Action © 2018 Taylor & Francis

Think/learn Feel/like Rational/economic Psychologic High involvement Learn Like Buy Feel/like Psychologic Low Like Learn Buy Buy Like Learn Like Buy Learn © 2018 Taylor & Francis

Where does the advertising expenditure end up (%, 2015)? Country TV News- papers Maga- zines Radio Cinema Outdoor Digital Denmark 21.4 25.7 7.7 1.9 1.3 5.3 36.8 Sweden 25.8 24.3 6.6 2.6 0.7 4.9 35.1 Finland 23.2 38.3 8.9 4.4 0.3 3.6 21.3 Norway 23.8 27.4 5.7 3.7 0.9 3.4 32.2 Netherlands 22.5 19.7 10.0 6.2 0.2 3.9 37.5 Belgium 40.7 22.6 7.0 13.7 1.1 8.8 6.1 Germany 39.6 20.4 16.8 6.8 0.6 4.5 11.3 Great Britain 28.8 17.7 6.7 2.7 France 33.7 11.6 13.1 7.9 1.0 11.4 Poland 55.5 8.6 2.3 17.9 Italy 53.2 6.4 5.5 4.6 21.1 USA 39.1 13.3 9.4 22.4 China 57.2 9.0 na 12.9 16.9 Japan 31.9 10.2 4.1 2.0 8.5 Thailand 53.6 18.7 5.0 5.8 9.3 Brazil 72.5 9.8 3.5 Where does the advertising expenditure end up (%, 2015)? Source: Dentsu Aegis Network: Global Advertising Expenditure Report, May 2015/Carat Norge. © 2018 Taylor & Francis

Communication channels in international markets Case: Exports of electronic equipment to radio stations (figures in Euros)   France Germany Netherlands Great Britain Market share 2% 5% 15% 30% Sales 95 000 0.8 million 0.6 million 4.5 million Sales goal next year 160 000 1.4 million 1.2 million 5 million Competitive position Competitors don’t see you Competitors have spotted you You are getting quite annoying You are market leader Operation mode Direct to customers Distributor Agent Sales subsidiary Communication objectives Awareness by new customer in the private sector. New orders from established customers New orders from established customers Establish new customer relations Motivate the agent Maintain customer loyalty (and market share) © 2018 Taylor & Francis

Communication channels in international markets (cont.)   France Germany Netherlands Great Britain   National communication channels Personal visits to existing customers. Seek new customers assisted by export promo agency (seminar reception) Distributor participates at a local trade fair/ conference; places adverts in local business periodicals (supported by exporter) Advertise in local business periodicals; visit established and new customers with agent Frequent adverts in business/technical periodicals. Sales office follow-up, personal sales, participate at local trade fair International communication channels Invite selected existing and potential customers to CEBIT Participation at CEBIT in cooperation with German distributor. Other European partners are invited. Adverts in international periodical (related to CEBIT). Invite selected customers to CEBIT Social media Develop a French-language version of the home page Develop a German-language version of the home page. News releases in German Chat service Develop a chat service in English. News releases online © 2018 Taylor & Francis

Micro-segmentation A3 B3 A1 B1 B4 C2 A2 B2 C1 Potential users Active users of our products Users of competitors’ products Potential users Users of competitors’ products unaware of our existence Primary segment Secondary segment Peripheral segment Micro-segmentation © 2018 Taylor & Francis

Communication levels and strategies Local brander Multi-local brander Export brander Global brander Vision Standard Adapted/ customised Customised Adapted Customised Standard Standard Adapted Advertising role Advertising idea Execution Based on van Raiij 1997 © 2018 Taylor & Francis

International branding in different strategic positions Multi-local brander Firm has in-depth market insight and a good resource base. Still they should carry out local advertising, warranted by the diversity of market situations Global brander Firm has a strong position in global markets and a relatively good resource base. Should involve local managers/ distributors in the development of ad strategies. “Glocal” advertising High Ability to carry out international marketing communication Local brander Firm has limited leverage (resources and market knowledge) relative to their local representatives and ad agency. Customised ads in every market Export brander Firm has limited leverage (resources and market knowledge) relative to their representatives and ad agency. Standard ads in global markets? Low Multilocal Global Industry globality © 2018 Taylor & Francis International branding in different strategic positions

Five steps to a global communication strategy 1. Information exchange In order to establish a common knowledge platform and understanding of the challenges 2. Persuasion In order to help subsidiary managers realise the advantages of a more standardised approach 3. Coordination Use of one global advertising agency to carry out the communication (not friction-free since local ad agency affiliates muster the same resistance as local subsidiaries) 4. Local acceptance What parts should be globalised/what parts should be localised? 5. Supervision Both carrots and sticks, developing a clan culture Based on Quelch and Hoff 1986 © 2018 Taylor & Francis