International Advertising

Opening Side Introduction Integrated marketing communications (IMC) are composed of advertising, sales promotions, trade shows, personal selling, direct selling, and public relations All these mutually reinforcing elements of the marketing mix have as their common objective the successful sale of a product or service For most companies, advertising and personal selling are the major components in the marketing communications mix The goal of most companies, large and small, is to achieve the synergies possible when sales promotions, public relations efforts, and advertising are used in concert

Sales Promotions in International Markets 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

International Public Relations 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 Bridgestone/Firestone Tires safety recall Global workplace standards Building an international profile Corporate sponsorships

International Advertising Function of advertising - Interpret or translate the qualities of products and services in terms of consumer needs, wants, desires and aspirations. International advertising – emotional appeals, symbols and persuasive approaches should follow cultural norms.

International Advertising 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

Advertising Strategy and Goals Marketing problems Require careful marketing research Thoughtful and creative advertising campaigns In country, regional, and global markets Increased need for more sophisticated advertising strategies Balance between standardization of advertising themes and customization Consumer cultures

Product Attributes and Benefit Segmentation Different cultures usually agree on the benefit of the primary function of a product or service Other features and psychological attributes of the item can have significant differences Cameras Yogurt Almonds Blue Diamond Assumes that no two markets will react the same Each has its own set of differences Each will require a different marketing approach and strategy

Regional Segmentation Pan-European communications media highlights need for more standardized promotional efforts Costs savings with a common theme in uniform promotional packaging and design Legal restrictions slowly being eliminated

Creative challenges -Legal Constraints Comparative advertising 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

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 In-country testing with the target consumer group avoids problems caused by linguistic differences

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

Media Planning and Analysis – Tactical considerations Availability Cost Coverage Lack of market data Newspapers Magazines Radio and TV Direct mail The internet New social media

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 http://www.forbes.com/sites/avidan/2013/12/04/ten-great-agencies-of-2013/

International Control of Advertising – Broader Issues Consumer criticism Deceptive advertising Decency and blatant use of sex Self-regulation Government regulations

Summary (1 of 2) 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

Summary (2 of 2) 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

Questions What is integrated marketing? What kind of local market characteristics affect the advertising and promotion of products? What is an advantage and disadvantage f using a local advertising agency?