1. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Communications Chapter 12

2. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Marketing Communication Process Sender (Encodes Message) Message Feedback Message Channel Receiver (Decodes Message ) Noise Communication Outcome

3. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Stages of the Negotiation Process The offer –assess each parties’ needs and commitment Informal meetings –trust-building among deal makers Strategy formulation –review and assess factors to be negotiated Negotiations –form, informal, short or long Implementation

4. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. International Negotiations How to negotiate in other countries –Team assistance –Traditions and customs –Language capability –Determination of authority limits –Patience –Negotiation ethics –Silence –Persistence –Holistic view –The meaning of agreements

5. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Communications Strategy Steps in Formulating Marketing Communications Strategy

6. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Promotional Mix Advertising –any form of non-personal communication Personal Selling –the use of person-to-person communication Publicity –non-paid, commercially significant news Sales Promotion –Direct inducements of extra value or incentives Sponsorship –Promoting interests of company by association

7. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. The Promotional Mix Push strategies –focus on personal selling, considered essential in international marketing of industrial goods. Pull strategies –depend on mass communications (advertising of consumer-oriented goods) 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.

8. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Communications Tools The choice of media is governed by the appropriateness media’s target audience and its efficiency in reaching that audience. Business and trade journals –Broad-based media Business Week, The Wall Street Journal –Horizontal media focus on a particular marketing task (Purchasing World) –Vertical media focus on a particular market or industry (Trucker World) –Directories and data services

9. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Communications Tools Direct marketing –Is intended to elicit immediate and measurable responses to direct-response advertising, telemarketing, and direct selling. –Direct mail depends on acquiring mailing lists that target the intended audience. –Effective direct mailing require extensive planning of materials, format, and mode of mailing. The Internet –A presence on the Internet is a necessity that can expand marketing communications world-wide with low costs.

10. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Trade Shows and Missions Types of international trade events –Trade missions –Seminar missions –Solo exhibitions –Video / catalog exhibitions Magnitude: Over 16,0000 trade shows generate $50 billion in business annually.

11. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Trade Show Participation Reasons for participation –Customer can examine the product. –Goodwill and contact cultivation. –Locating a trade intermediary. –Opportunity to meet government officials and decision makers. –Opportunity for market research and collecting competitive intelligence. –Exporters able to reach sales prospects in brief time period at reasonable cost per contact. Reasons for not participating –High cost. –Identifying the “right” trade shows to participate in. –Coordination.

12. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Personal Selling The most effective promotional tool. Costs per contact are high. Yields immediate customer feedback and sales results. Keys to personal selling –Salesperson’ has the ability to adapt to the customer and the selling situation. –Salesperson must have a thorough knowledge of the product or service.

13. Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2007 by South-Western, a division of Thomson Learning. All rights reserved. Levels of Exporter Involvement in International Sales SOURCE: Framework adapted from Reijo Luostarinen and Lawrence Welch, International Operations of the Firm (Helsinki, Finland: Helsinki School of Economics, 1990), chapter 1