2. Integrated Marketing Communications and International Advertising
Chapter 16
Integrated Marketing Communications and International Advertising
McGraw-Hill/Irwin
International Marketing, 13/e
© The McGraw-Hill Companies, Inc., All Rights Reserved.

3. Chapter Learning Objectives
Local market characteristics that affect the advertising and promotion of products
The strengths and weaknesses of sales promotion and public relations in global marketing
When global advertising is most effective; when modified advertising is necessary
The effects of a single European market on advertising
The effect of limited media, excessive media, paper and equipment shortages, and government regulations on advertising and promotion budgets
The communication process and advertising misfires

4. Global Perspective Barbie Versus Mulan
Integrated marketing communications (IMC)
Advertising
Sales promotions
Trade shows
Personal selling
Direct selling
Public relations
Objective: the successful sale of a product or service

5. 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

6. 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.

7. 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.

8. Top 20 Global Advertisers ($ millions)
Insert Exhibit 16.1

9. 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

10. 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
Cameras
Yogurt
Almonds
Blue Diamond – assumes that no two markets will react the same, that each has its own set of differences, and that each will require a different marketing approach and strategy

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

12. 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”

13. The International Communications Process
Insert Exhibit 16.4

14. Legal Constraints
Laws that control comparative advertising vary from country to country in Europe.
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

15. 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

16. Cultural Diversity
Knowledge of cultural diversity must encompass the total advertising project
Existing perceptions based on tradition and heritages are often hard to overcome
Subcultures
Changing traditions

17. 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

18. Media Planning and Analysis – Tactical Considerations
Availability
Cost
Coverage
Lack of market data
Newspapers
Magazines

19. Media Planning and Analysis – Tactical Considerations (continued)
Radio and television
Satellite and cable TV
Direct mail
The Internet
Other media

20. 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

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

22. 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.