1. Webster University MRKT 5980

2. 2/11/2016 Webster University MRKT 5980 Page 2 The Marketing Communication Process Sender (Encodes Message) Message Feedback Message Channel Receiver (Decodes Message ) Noise Communication Outcome

3. 2/11/2016 Webster University MRKT 5980 Page 3 Stages of the Negotiation Process The offer The offer assess each parties’ needs and commitmentassess each parties’ needs and commitment Informal meetings Informal meetings trust-building among deal makerstrust-building among deal makers Strategy formulation Strategy formulation review and assess factors to be negotiatedreview and assess factors to be negotiated Negotiations Negotiations form, informal, short or longform, informal, short or long Implementation Implementation

4. 2/11/2016 Webster University MRKT 5980 Page 4 International Negotiations How to negotiate in other countries How to negotiate in other countries Team assistanceTeam assistance Traditions and customsTraditions and customs Language capabilityLanguage capability Determination of authority limitsDetermination of authority limits PatiencePatience Negotiation ethicsNegotiation ethics SilenceSilence PersistencePersistence Holistic viewHolistic view The meaning of agreementsThe meaning of agreements

5. 2/11/2016 Webster University MRKT 5980 Page 5 Marketing Communications Strategy Steps in Formulating Marketing Communicatio ns Strategy

6. 2/11/2016 Webster University MRKT 5980 Page 6 The Promotional Mix Advertising Advertising any form of non-personal communicationany form of non-personal communication Personal Selling Personal Selling the use of person-to-person communicationthe use of person-to-person communication Publicity Publicity non-paid, commercially significant newsnon-paid, commercially significant news Sales Promotion Sales Promotion Direct inducements of extra value or incentivesDirect inducements of extra value or incentives Sponsorship Sponsorship Promoting interests of company by associationPromoting interests of company by association

7. 2/11/2016 Webster University MRKT 5980 Page 7 The Promotional Mix Push strategies Push strategies focus on personal selling, considered essential in international marketing of industrial goods.focus on personal selling, considered essential in international marketing of industrial goods. Pull strategies Pull strategies depend on mass communications (advertising of consumer-oriented goods) to reach target audiences over long distribution channels.depend on mass communications (advertising of consumer-oriented goods) to reach target audiences over long distribution channels. Integrated marketing communications Integrated marketing communications coordinated use of a broad range of promotional tools to reach a target market.coordinated use of a broad range of promotional tools to reach a target market.

8. 2/11/2016 Webster University MRKT 5980 Page 8 Communications Tools The choice of media is governed by the appropriateness media’s target audience and its efficiency in reaching that audience. The choice of media is governed by the appropriateness media’s target audience and its efficiency in reaching that audience. Business and trade journals Business and trade journals Broad-based mediaBroad-based media Business Week, The Wall Street Journal Business Week, The Wall Street Journal Horizontal mediaHorizontal media focus on a particular marketing task (Purchasing World) focus on a particular marketing task (Purchasing World) Vertical mediaVertical media focus on a particular market or industry (Trucker World) focus on a particular market or industry (Trucker World) Directories and data servicesDirectories and data services

9. 2/11/2016 Webster University MRKT 5980 Page 9 Communications Tools Direct marketing Direct marketing Is intended to elicit immediate and measurable responses to direct-response advertising, telemarketing, and direct selling.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.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.Effective direct mailing require extensive planning of materials, format, and mode of mailing. The Internet The Internet A presence on the Internet is a necessity that can expand marketing communications world-wide with low costs.A presence on the Internet is a necessity that can expand marketing communications world-wide with low costs.

10. 2/11/2016 Webster University MRKT 5980 Page 10 Trade Shows and Missions Types of international trade events Types of international trade events Trade missionsTrade missions Seminar missionsSeminar missions Solo exhibitionsSolo exhibitions Video / catalog exhibitionsVideo / catalog exhibitions Magnitude: Over 16,0000 trade shows generate $50 billion in business annually. Magnitude: Over 16,0000 trade shows generate $50 billion in business annually.

11. 2/11/2016 Webster University MRKT 5980 Page 11 Trade Show Participation Reasons for participation Reasons for participation Customer can examine the product.Customer can examine the product. Goodwill and contact cultivation.Goodwill and contact cultivation. Locating a trade intermediary.Locating a trade intermediary. Opportunity to meet government officials and decision makers.Opportunity to meet government officials and decision makers. Opportunity for market research and collecting competitive intelligence.Opportunity for market research and collecting competitive intelligence. Exporters able to reach sales prospects in brief time period at reasonable cost per contact.Exporters able to reach sales prospects in brief time period at reasonable cost per contact. Reasons for not participating Reasons for not participating High cost.High cost. Identifying the “right” trade shows to participate in.Identifying the “right” trade shows to participate in. Coordination.Coordination.

12. 2/11/2016 Webster University MRKT 5980 Page 12 Personal Selling The most effective promotional tool. The most effective promotional tool. Costs per contact are high. Costs per contact are high. Yields immediate customer feedback and sales results. Yields immediate customer feedback and sales results. Keys to personal selling Keys to personal selling Salesperson’ has the ability to adapt to the customer and the selling situation.Salesperson’ has the ability to adapt to the customer and the selling situation. Salesperson must have a thorough knowledge of the product or service.Salesperson must have a thorough knowledge of the product or service.

13. 2/11/2016 Webster University MRKT 5980 Page 13 In International Distribution The firm sells to its customers: The firm sells to its customers: directly through its own sales force.directly through its own sales force. indirectly through independent intermediaries.indirectly through independent intermediaries. indirectly through an outside distribution system with regional or global coverage.indirectly through an outside distribution system with regional or global coverage.

14. 2/11/2016 Webster University MRKT 5980 Page 14 Channel Structure How to structure the distribution channels is the most important long-term marketing mix decision a firm may make. How to structure the distribution channels is the most important long-term marketing mix decision a firm may make. Channel structures are designed to manage multidirectional (horizontal and vertical) connections in: Channel structures are designed to manage multidirectional (horizontal and vertical) connections in: physical movement of goods and services physical movement of goods and services transactional title flows transactional title flows information communications flows information communications flows

15. 2/11/2016 Webster University MRKT 5980 Page 15 Wholesaler Channel Configurations Consumer / Industrial User Retailer Manufacturer Originator Consumer Industrial User Agent Wholesaler Retailer Industrial Distributor Consumer Products Industrial Products Services Retailer

16. 2/11/2016 Webster University MRKT 5980 Page 16 Determinants of Channel Structure and Relationships INTERNAL Company objectives CharacterCapitalCostCoverageControlContinuityCommunication EXTERNAL Customer characteristics Culture Competition

17. 2/11/2016 Webster University MRKT 5980 Page 17 Channel Design Considerations Customer characteristics Customer characteristics What do they need, why, when, and how?What do they need, why, when, and how? Distribution culture Distribution culture The structural linkages and functional characteristics of existing channels.The structural linkages and functional characteristics of existing channels. Competition Competition What channels does the competition use?What channels does the competition use? Company objectives Company objectives Determined by company objectives for market share and profitability.Determined by company objectives for market share and profitability.

18. 2/11/2016 Webster University MRKT 5980 Page 18 Channel Design Considerations Character Character The nature of the product impacts the design of the channel. The channel must match the positioning of the product in the market.The nature of the product impacts the design of the channel. The channel must match the positioning of the product in the market. Capital Capital... Describes the financial requirements for setting up a channel system.... Describes the financial requirements for setting up a channel system. Cost Cost … is the expenditure incurred in maintaining a channel once it is established.… is the expenditure incurred in maintaining a channel once it is established.

19. 2/11/2016 Webster University MRKT 5980 Page 19 Channel Design Considerations Coverage Coverage The number of areas in which a product is represented and the quality of that representation.The number of areas in which a product is represented and the quality of that representation. Types of coverage Types of coverage IntensiveIntensive SelectiveSelective ExclusiveExclusive

20. 2/11/2016 Webster University MRKT 5980 Page 20 Channel Design Considerations Control Control The use of intermediaries, product type, and the marketer’s use of power will determine the amount of market control.The use of intermediaries, product type, and the marketer’s use of power will determine the amount of market control. Continuity Continuity Responsibility of the marketer and is expressed through market commitment.Responsibility of the marketer and is expressed through market commitment. Communication Communication Provides the exchange of information that is essential to the functioning of the channel.Provides the exchange of information that is essential to the functioning of the channel. Social, cultural, technological, time and geographical distances cause problems.Social, cultural, technological, time and geographical distances cause problems.

21. 2/11/2016 Webster University MRKT 5980 Page 21 Intermediaries Types of intermediary relationship Types of intermediary relationship DistributorshipDistributorship AgencyAgency Type of exporting function Type of exporting function Indirect exportingIndirect exporting Direct exportingDirect exporting Integrated distributionIntegrated distribution

22. 2/11/2016 Webster University MRKT 5980 Page 22 Intermediaries Sources for Finding Intermediaries Sources for Finding Intermediaries Distributor inquiresDistributor inquires Governmental agenciesGovernmental agencies Commerce Department’s Trade Opportunities Program Commerce Department’s Trade Opportunities Program U.S. Exporters Yellow Pages U.S. Exporters Yellow Pages Private sourcesPrivate sources Trade directories Trade directories Screening Intermediaries Screening Intermediaries PerformancePerformance ProfessionalismProfessionalism

23. 2/11/2016 Webster University MRKT 5980 Page 23 Selection of Intermediaries Agents Foreign (Direct) Foreign (Direct) BrokersBrokers Manufacturer’s RepsManufacturer’s Reps FactorsFactors Managing agentsManaging agents Purchasing AgentsPurchasing Agents Domestic (Indirect) Domestic (Indirect) BrokersBrokers Export AgentsExport Agents EMCsEMCs Webb-PomereneWebb-Pomerene Commission agentsCommission agents Distributors Foreign (Direct) Foreign (Direct) Distributors/dealers Import jobbers Wholesalers/retailers Domestic (Indirect) Domestic (Indirect) Domestic wholesalers EMCs ETCs Complementary marketers SOURCES: Peter B. Fitzpatrick and Alan S. Zimmerman, Essentials of Export Marketing (New York American Management Association, 1985), 20; and Bruce Seifert and John Ford, “Export Distribution Channels,” Columbia Journal of World Business 24 (Summer 1989): 16; http://www.usatrade.gov.

24. 2/11/2016 Webster University MRKT 5980 Page 24 The Distributor Agreement Typical terms include Typical terms include Contract durationContract duration Typically short periods initially Typically short periods initially Geographic and customer boundariesGeographic and customer boundaries Well-defined territories and channels Well-defined territories and channels CompensationCompensation Methods for determining payment amounts and how and in what currency payment is to be made. Methods for determining payment amounts and how and in what currency payment is to be made. Products and conditions of saleProducts and conditions of sale Products to be sold; terms and conditions of sales Products to be sold; terms and conditions of sales Means of communication between partiesMeans of communication between parties

25. 2/11/2016 Webster University MRKT 5980 Page 25 Channel Management Coordinating two independent entities with shared goals. Coordinating two independent entities with shared goals. The relationship needs to be managed for the long term. The relationship needs to be managed for the long term. Factors complicating channel management Factors complicating channel management OwnershipOwnership Geographic, cultural, and economic distanceGeographic, cultural, and economic distance Different rules of lawDifferent rules of law

26. 2/11/2016 Webster University MRKT 5980 Page 26 Gray Markets (Parallel Importation) Arguments for: The right to “free trade.” The right to “free trade.” Consumers benefit from lower prices. Consumers benefit from lower prices. Discount distributors have found a profitable market niche. Discount distributors have found a profitable market niche. Arguments against: Gray marketers take unfair advantage of trademark owner’s marketing and promotion. Gray marketers take unfair advantage of trademark owner’s marketing and promotion. Parallel imports deceive consumers by not meeting product standards or expectations of after-sale service. Parallel imports deceive consumers by not meeting product standards or expectations of after-sale service.

27. 2/11/2016 Webster University MRKT 5980 Page 27 The Solution to the Gray Market Problem? A contractual relationship that ties businesses together. A contractual relationship that ties businesses together.

28. 2/11/2016 Webster University MRKT 5980 Page 28 E-Commerce Any worldwide web strategy must be tied closely to the company’s overall growth strategy in international markets. Any worldwide web strategy must be tied closely to the company’s overall growth strategy in international markets. Companies must come to terms with issues related to security, privacy, and access to global networks, at the same time, promoting global commerce over the Internet. Companies must come to terms with issues related to security, privacy, and access to global networks, at the same time, promoting global commerce over the Internet.