Copyright © 2001 by Harcourt, Inc.. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc., 6277 Sea Harbor Drive, Orlando, Florida INTERNATIONAL MARKETING 6e International Communications Chapter 12

Copyright © 2001 by Harcourt, Inc. All rights reserved Sender (Encodes Message) Message Feedback MessageChannelReceiver (Decodes Message ) Noise The Marketing Communication Process Source: Terence A. Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications (Ft. Worth, TX: The Dryden Press, 2000), 118.

Copyright © 2001 by Harcourt, Inc. All rights reserved Stages of the Negotiation Process: u The offer assess each parties’ needs and commitmentassess each parties’ needs and commitment u Informal meetings trust-building among deal makerstrust-building among deal makers u Strategy formulation review and assess factors to be negotiatedreview and assess factors to be negotiated u Negotiations form, informal, short or longform, informal, short or long u Implementation

Copyright © 2001 by Harcourt, Inc. All rights reserved International Negotiations u How to negotiate in other countries Team assistanceTeam assistance Traditions and customsTraditions and customs Language capabilityLanguage capability Determination of authority limitsDetermination of authority limits PatiencePatience Negotiation ethicsNegotiation ethics SilenceSilence PersistencePersistence Holistic viewHolistic view The meaning of agreementsThe meaning of agreements

Copyright © 2001 by Harcourt, Inc. All rights reserved Marketing Communications Strategy Steps in Formulating Marketing Communications Strategy Source: Framework adapted from Wayne DeLozier, The Marketing Communication Process (New York: McGraw-Hill, 1976), 272.

Copyright © 2001 by Harcourt, Inc. All rights reserved The Promotional Mix u Advertising any form of nonpersonal communicationany form of nonpersonal communication u Personal Selling the use of person-to-person communicationthe use of person-to-person communication u Publicity nonpaid, commercially significant newsnonpaid, commercially significant news u Sales Promotion Direct inducements of extra value or incentivesDirect inducements of extra value or incentives

Copyright © 2001 by Harcourt, Inc. All rights reserved The Promotional Mix u Push strategies focus on personal selling, considered essential in international marketing of industrial goods.focus on personal selling, considered essential in international marketing of industrial goods. u Pull strategies depend on mass communications (advertising of consumer-oriented goods) to reach target audiences over long distribution channels.depend on mass communications (advertising of consumer-oriented goods) to reach target audiences over long distribution channels. u Integrated marketing communications Coordinated use of a broad range of promotional tools to reach a target market.Coordinated use of a broad range of promotional tools to reach a target market.

Copyright © 2001 by Harcourt, Inc. All rights reserved Communications Tools u The choice of media is governed by the appropriateness media’s target audience and its efficiency in reaching that audience u Business and trade journals Broad-based mediaBroad-based media –Business Week, The Wall Street Journal Horizontal mediaHorizontal media –focus on a particular marketing task (Purchasing World) Vertical mediaVertical media –focus on a particular market or industry (Trucker World) Directories and data servicesDirectories and data services

Copyright © 2001 by Harcourt, Inc. All rights reserved Communications Tools u Direct marketing is intended to elicit immediate and measurable responses to direct-response advertising, telemarketing, and direct selling.is intended to elicit immediate and measurable responses to direct-response advertising, telemarketing, and direct selling. Direct mail depends on acquiring mailing lists that target the intended audience.Direct mail depends on acquiring mailing lists that target the intended audience. Effective direct mailing require extensive planning of materials, format, and mode of mailing.Effective direct mailing require extensive planning of materials, format, and mode of mailing. u The Internet A presence on the Internet is a necessity that can expand marketing communications world-wide with low costs.A presence on the Internet is a necessity that can expand marketing communications world-wide with low costs.

Copyright © 2001 by Harcourt, Inc. All rights reserved Trade Fairs and Missions u Types of international trade events Trade missionsTrade missions Seminar missionsSeminar missions Solo exhibitionsSolo exhibitions Video / catalog exhibitionsVideo / catalog exhibitions u Magnitude: Over 16,0000 trade shows generate $70 billion in business annually.

Copyright © 2001 by Harcourt, Inc. All rights reserved Trade Show Participation u Reasons for participation Customer can examine the productCustomer can examine the product Goodwill and contact cultivationGoodwill and contact cultivation Locating a trade intermediaryLocating a trade intermediary Opportunity to meet government officials and decision makersOpportunity to meet government officials and decision makers Opportunity for market research and collecting competitive intelligenceOpportunity for market research and collecting competitive intelligence u Reasons for not participating High costHigh cost Identifying the “right” trade shows to participate inIdentifying the “right” trade shows to participate in CoordinationCoordination

Copyright © 2001 by Harcourt, Inc. All rights reserved Personal Selling u The most effective promotional tool u Costs per contact are high u Yields immediate customer feedback and sales results u Keys to personal selling Salesperson’ has the ability to adapt to the customer and the selling situation.Salesperson’ has the ability to adapt to the customer and the selling situation. Salesperson must have a thorough knowledge of the product or service.Salesperson must have a thorough knowledge of the product or service.