1. Chapter 16

2. 16-2  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 effect of limited media, excessive media, paper and equipment shortages, and government regulations on advertising and promotion budgets  The communication process and advertising misfires

3. 16-3  Integrated marketing communications (IMC)  Advertising  Sales promotions  Trade shows  Personal selling  Direct selling  Public relations  Objective: successful sale of a product or service  Availability of appropriate communication channels can determine entry decisions

4. 16-4  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  In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increased  Product sampling, cent-offs, in-store demonstrations, coupons, gifts, product tie-ins, contests, sponsorship of special events. Designed to supplement advertising and personal selling in the promotional mix.

5. 16-5  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 (death of over 100 people)  Honda safety recall (Honda Accord)– (1.5 million in the US and 760,000 in China) – transmission shaft - may be broken during certain driving styles – causing engine problem.  Global workplace standards and product safety recall  Building an international profile – companies need PR consultation to build an international profile  Corporate sponsorships –as an aspect of PR, sports events and charity events (Pizza Hut and KFC)

6. 16-6 Exhibit 16.1

7. 16-7 Exhibit 16.2

8. 16-8 Exhibit 16.3 (A) Russia (B) China

9. 16-9 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 (executional styles) 7. Evaluate the campaign relative to the goals specified

10. 16-10  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 (global youth)

11. 16-11  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  Cars  Breakfast cereal  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

12. 16-12  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

13. 16-13  If not properly considered, different cultural contexts can increase the probability of misunderstandings  Effective communication  Demands the existence of a “psychological overlap” between the sender and the receiver to avoid transmission of message that results in unattended meaning.  It can never be assumed that “if it sells well in one country, it will sell in another” (Disney)

14. 16-14 Exhibit 16.4

15. 16-15  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. 16-16  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

17. 16-17  Knowledge of cultural diversity must encompass the total advertising project  Existing perceptions based on tradition and heritages are often hard to overcome  Subcultures (different patterns of breakfast eating)  Changing traditions

18. 16-18  Media limitations may diminish the role of advertising in the promotional program  Examples of production limitations:  Poor-quality printing  Lack of high-grade paper  In Egypt, static-filled television and poor-quality billboards have led companies such as Coca-Cola and Nestlé to place their advertisements on the sails of boats that sail along the Nile.  Low-cost reproduction in small markets poses a problem in many countries.  For example, hand-painted billboards must be used instead of printed sheets because the limited number of billboards does not warrant the production of printed sheets

19. 16-19  Availability (too few vs. too many)  Cost (cost per contact varies widely)  Coverage (difficulty of reaching certain sector)  Lack of market data

20. 16-20  Newspapers  Magazines  Radio and television  Satellite and cable TV

21. 16-21  Direct mail  The Internet  The New Social Media (WOM, Blogs, Video sharing)  Other media

22. 16-22 Exhibit 16.5

23. 16-23 Exhibit 16.6

24. 16-24 Exhibit 16.7

25. 16-25  Managed by advertising agencies  Local domestic agency  Company-owned agency  Multinational agency with local branches  Compensation for advertising agencies:  Commonly 15 percent throughout the world  Some companies moving to reward-by-results (sales rise, the agency will be rewarded accordingly)

26. 16-26 Exhibit 16.8

27. 16-27  Consumer criticism (skepticism)  Deceptive advertising  Decency and blatant use of sex  Self-regulation and restrictive laws  Government regulations

28. 16-28  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

29. 16-29  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