1. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-1 16 Integrated Marketing Communications and International Advertising Chapter

2. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-2 Chapter Learning Objectives Local market characteristics that affect the advertising and promotion of products The impact of emerging global segments on communications decisions 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 can misfire

3. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-3 Global Perspective Battle for Market Supremacy: Coke versus Pepsi in India Integrated marketing communications (IMC) –Advertising –Sales promotions –Trade shows –Personal selling –Direct selling –Public relations Objective: to combine the disciplines to provide clarity, consistency and maximum impact through a seamless integration of discrete messages. Problem: the availability of appropriate communication channels to customers can hinder the implementation of an IMC.

4. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-4 Sales Promotions in International Markets Sales promotions –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:  Consumer-product trial or purchase  Consumer introduction to the store  Obtain retail point-of-purchase displays  Encourage stores to stock the product  Support and augment advertising and personal selling Product sampling effective with new products or those with small market share. ‘Bottom of the pyramid’ provides a viable market but may require non- conventional market approaches such as sales promotions.

5. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-5 International Public Relations Arnott’s Biscuits product recall Bridgestone/Firestone Tires safety recall Areas of focus: –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 their customers, the general public, and governmental regulators.

6. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-6 International Advertising Growth in global advertising expenditures has slowed along with the economy. Decisions involving advertising are those most often affected by cultural differences among country markets. Basic framework of international advertising: 1.Perform marketing research. 2.Specify the goals of the communication. 3.Develop the most effective message(s) for the market segments selected. 4.Select effective media. 5.Compose and secure a budget. 6.Execute the campaign. 7.Evaluate the campaign relative to the goals specified.

7. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-7 Top 20 Global Advertisers (ranked by total worldwide measured ad spending)

8. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-8 Top 100 Advertisers’ Global Spending by Category

9. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-9 Top 10 Advertisers by Country: Asia – Pacific Region

10. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-10 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 standardisation of advertising themes and customisation. Consumer cultures Focus on newer global market segments defined by ‘consumer cultures’ related to shared sets of consumption-related symbols: –Convenience –Youth –Internationalism –Humanitarianism

11. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-11 Universal versus Regional Segmentation Most well-established global companies use standardised marketing campaigns with some local adaptation. Regional segmentation is based on the similarities in customer needs and preferences that exist at the regional level rather than the global level. Country of origin effects impact strategy.

12. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-12 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 –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.

13. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-13 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. Most promotional mistakes are attributable to one of key areas of communication process not properly reflecting cultural influences or to a general lack of knowledge about the target market. It can never be assumed that “if it sells well in one country, it will sell in another”.

14. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-14 The International Communications Process

15. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-15 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

16. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-16 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

17. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-17 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

18. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-18 Media Limitations and Production and Cost Limitations Media limitations may diminish the role of advertising in the promotional program and put focus on other elements of promotional mix. Examples of production limitations: –Poor-quality printing –Lack of high-grade paper Low-cost reproduction in small markets poses a problem in many countries.

19. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-19 Media Planning and Analysis – Tactical Considerations Availability Cost Coverage Lack of market data Newspapers Magazines

20. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-20 Media Planning and Analysis – Tactical Considerations (cont.) Radio and television Satellite and cable TV Direct mail The Internet Other media

21. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-21 Media Penetration in Selected Countries (per 1000 persons)

22. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-22 International Control of Advertising: Broader Issues Consumer criticism Deceptive advertising Decency and blatant use of sex Self-regulation Government regulations

23. Copyright  2009 McGraw-Hill Australia Pty Ltd PPTs t/a International Marketing by Cateora Slides prepared by Kate Mizerski, Edith Cowan University 16-23 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.