1. Marketing Communication
Principles of
International
Marketing
9th Edition
Chapter 12
Marketing Communication

2. Exhibit 12.1 - The Marketing Communication Process
Sender
(Encodes Message)
Message
Message
Channel
Receiver
(Decodes Message)
Noise
Feedback
Communication
Outcome

3. The Marketing Communications Process
Encoding - Converting the message into symbolic form that is properly understood by the receiver.
Message channel - The path through which the message moves from the sender to the receiver.
Decoding – Process of transforming message symbols back into thought.

4. The Marketing Communications Process
Noise - Extraneous and distracting stimuli that interfere with the intended accurate reception of a message.
Outcome - Determined by how well objectives have been met in generating more awareness, a more positive attitude, or increased purchases.
Feedback - Necessary to analyze the success of the communications effort.

5. International Negotiations
The two biggest dangers faced in international negotiations:
Parochialism - The misleading perception that the world of business is becoming ever more American and that everyone will behave accordingly.
Stereotyping - Generalizations about any given group, both positive and negative.

6. International Negotiations
The use of Internet in international negotiations allows the exporter to
Overcome distances.
Minimize social barriers.
Obtain instant feedback.
Negotiate from a home base.
Negotiate with a number of customers simultaneously.

7. International Negotiations
The process of international business negotiations can be divided into five stages:
Offer
Allows the parties to assess each others needs and commitment.
The initiation of the process and its progress are determined by background factors of the parties and the overall atmosphere.
Informal meetings
To discuss the terms and get acquainted.
It may be necessary to utilize facilitators (such as consultants or agents) to establish the contact.

8. International Negotiations
Strategy formulation
Review and assess factors to be negotiated.
Prepare actual give and take of the negotiation.
Negotiations
Depend on the cultural background and business traditions prevailing in different countries.
Two approaches are used for negotiations: competitive and collaborative.
Implementation
The choice of location for the negotiations and the negotiator characteristics play a role in the outcome.

9. International Negotiations
A combination of attitudes, expectations, and habitual behavior influences negotiation style.
Approaches used for adjusting to the style of the host-country negotiators:
Team assistance use Expert ,trained members
Traditions and customs carefully noticed with help of consultant or local
Language capability
Determination of authority limits
Patience needs more time

10. International Negotiations
Approaches used for adjusting to the style of the host-country negotiators:
Negotiation ethics vary from culture to culture
Silence a technique used to decrease price Japanese
Persistence be patient to get a deal
Holistic view concessions come later
The meaning of agreements

11. Exhibit 12.2 – Steps in Formulating Marketing Communications Strategy

12. 1. assessing what companies or product characteristics and benefits should be communicated e.g. Volvo used safety and quality as a them in promotional campaign

13. Marketing Communications Strategy
Promotional mix - Tools available to the international marketer for creating a total communications program for use in the targeted markets.
The promotional mix consists of advertising, personal selling, publicity, sales promotion, and sponsorship.
The choice of tools leads to either a push or a pull emphasis in marketing communications.

14. The Promotional Mix
Push strategies - Focuses on personal selling; considered useful for marketing industrial goods which have shorter channels of distribution.
Pull strategies - Depend on mass communications to reach target audiences over long distribution channels.
Integrated marketing communications - Coordinated use of a broad range of promotional tools to reach a target market.

15. Communications Tools Business and trade journals and directories
Business and trade journals and directories
The two main concerns when selecting media are effectiveness in reaching the target audience and efficiency in cost minimization.
In deciding which publications to use, the exporter must apply the general principles of marketing communications strategy.

16. Communications Tools Direct marketing
Direct marketing
Establishes relationship with a customer in order to initiate immediate and measurable responses.
Accomplished through direct-response advertising, telemarketing, and direct selling.
Direct mail can be a highly personalized tool of communication if the target audience can be identified and defined narrowly.

17. Communications Tools Direct marketing
Direct marketing
Telemarketing (including sales, customer service, and help-desk-related support) is flourishing due to telecommunication systems and deregulation in the industry.
Database marketing allows the creation of an individual relationship with each customer or prospect.

18. Communications Tools
The Internet - Supports the exporter’s marketing communications in the following ways:
Allow the company to increase its presence in the marketplace.
Communicate information about its marketing mix.
Allow 24-hour access to customers and prospects.
Improve customer service.
Allow the exporter to gather information for subsequent marketing efforts.

19. Communications Tools Trade shows and missions
Trade shows and missions
Trade show is an event where manufacturers, distributors, and other vendors display their products or describe their services to current and prospective customers, suppliers, other business associates, and the press.
Exporters may participate in general or specialized trade shows.

20. Communications Tools Personal selling Involves high costs per contact.
Personal selling
Involves high costs per contact.
Provides immediate feedback on customer reaction as well as information on markets.