International marketing promotion/communication n The Role of Promotion nPromotion qCommunication to build and maintain relationships by informing and persuading one or more audiences qOverall role of promotion is to stimulate demand by nbuilding and enhancing customer relationships. nfocusing customers on information about company activities and products. npromoting programs that help selected groups to build goodwill. nsponsoring special events that generate positive promotion of an organization and its brands. Integrated Marketing Communications nIntegrated Marketing Communications qCoordination of promotion and other marketing efforts for maximum informational and persuasive effect qMajor goal is to send a consistent message to customers Integrated Marketing Communications (IMC) Promotion Personal Selling Sales Promotion Public Relations Direct Promotion Advertising PRODUCT PRICE PLACEMENT COMPANY Adapted or standardised? 345270_la_17_02 The Communication Process what to adapt or standardize in intern.MKT? Cultural context A Cultural context B Promotion and the Communication Process: Key Terms nCommunication qA sharing of meaning; the transmission of information qSource is a person, group, or organization with a meaning it tries to share with an audience qReceiver is an individual, group, or organization that decodes a coded message qCoding process (encoding) is the converting meaning into a series of signs or symbols qMedium of transmission is the the means of carrying the coded message from the source to the receiver q qWHAT PROBLEMS CAN OCCUR WITH THESE ISSUES ABROAD? SOURCE….SENDER pageflip-295-01 ELLE Dezember 2012 Mega roba promo ELLE Cover-December cover Germany, Brazil, Spain, Great Britain, India, Thailand – December 2012 elle ปก GWEN STEFANI n qDecoding process is the conversion of signs or symbols into concepts and ideas qNoise is anything which reduces a communication’s clarity and accuracy (news in the country and abroad, competitors…) qFeedback is the receiver’s response to a message qChannel capacity is the limit on the volume of information a communication channel can handle effectively What differences can occur with these isues abroad? GOALS OF PROMOTION: n c17t01 Awareness knowledge liking preference conviction purchase SAME OR DIFFERENT ABROAD? SAME OR DIFFERENT ABROAD? Push and Pull Channel Policies nPush Policy qPromoting a product only to the next institution down the marketing channel nPull Policy qPromoting a product directly to consumers to develop stronger consumer demand that pulls products through the marketing channel q Major Decisions in Advertising SAME OR DIFFERENT? fg Mission Money Media Message “6 M’s of Marketing Communication (John Quelch) Measurement “Market” (target segment International promotion and Positioning nKRONENBOURG nFrance = massmarket n UK = up market n nBUDWEISER nUK = young, premium nUS = fathers’ drink nTETLEY TEA nFrance = up market n UK = massmarket n nHEINZ BAKED BEANS nUK = staple nRussia = luxury n Setting promotion objectives: example - Consumer Usage Patterns & Perceptions United States Great market penetration, but minor share Continental Europe Major market share, but idea of instant coffee was new Tea-drinking Countries Conversion not only to coffee, but to instant coffee Latin America Preferred coffee couldn’t be duplicated with instant version Scandinavia Ingrained habit of keeping coffee on stove all day long Nescafé Instant Coffee 19-14 Relation to Text: This slide relates to pages 653-654 of the text. Summary Overview: This slide shows how consumer usage patterns can vary from country to country. Use of this Slide: Use this slide to point out how consumer usage patterns and product perceptions may very from country to country. In this example, Nestlé had to use a different advertising strategy for each market; a global campaign would not have been able to address the varying situations adequately. Message and Four Major Difficulties 1)The message may not get through 2)The message may not be understood 3)The message may not induce action 4)The effectiveness may be impaired by noise CONSTRAINTS OF INTERNATIONAL PROMOTION nLanguages - communication and encoding messages nGovernment controls and regulations (products, cost, message) nNationalism nMedia availability nEconomic differences nLocal distributors – design of channel nAgency availability nTastes and attitudes nConsumer(customer) behavior pattern and attitudes nBrand name recognition n n International Demographic Environment as potential barriers Demographic environment •Size of population •Number of households •Household size •Age distribution •Occupation distribution •Education levels •Employment rate •Income levels International Marketing And Promotional Decisions Relation to text This slide relates to material on pp. 657-659 and Figure 20-2 of the text. Summary Overview This slide shows the factors that make up the international demographic environment. These factors are: Size of population Number of households Household size Age distribution Occupation distribution Education levels Employment rate Income levels Major demographic differences exist among countries, as well as within them. Demographic information can reveal the potential of various foreign markets and provide insight into the living standards and lifestyles in a particular country. This information can marketers plan IMC campaigns in these markets. Use of this slide This slide can be used to discuss the international demographic environment. Other barriers Cultural environment •Language •Lifestyles •Values •Norms and customs •Ethics and moral standards •Taboos International Marketing And Promotional Decisions Relation to text This slide relates to material on pp. 659-663 and Figure 20-2 of the text. Summary Overview This slide shows the factors that make up the international cultural environment. These factors include: Language Lifestyles Values Norms and customs Ethics and moral standards Taboos The culture of each country influences, not only the needs and wants of consumers, but how they go about satisfying them. Advertising is often the most effective way to communicate with potential buyers and create markets in other countries. But, it can also be one the most difficult aspects in the international marketing program because of problems in developing messages that will be understood in various countries. Use of this slide This slide can be used to discuss the international cultural environment. Advertising Subject to Regulation Products that may be advertised Content or creative approach used Media advertisers are permitted to use The amount of advertising one may do Use of foreign languages in ads Use of materials from outside the country Use of local vs. international ad agencies Specific taxes levied on advertising Relation to text This slide relates to material on pp. 663-664 of the text. Summary Overview This slide summarizes the aspects of advertising that could be subject to government restrictions and regulations. These include: Type of products that may be advertised The content or creative approach used The media advertisers are permitted to use The amount of advertising one may do The use of foreign languages in ads Use of ad materials from outside the country Use of local versus international ad agencies The specific taxes levied on advertising Although some of these restrictions are socially motivated, others are economically motivated. Use of this slide This slide can be used to discuss the various types of government regulations and restrictions that may be placed on the advertising program. International Media Selection Issues Widely Differing Characteristics Cost Coverage Restrictions Availability Quality Media Information Problems Cost Reliability Circulation Audience Availability Relation to text This slide relates to material on pp. 678-680 of the text. Summary Overview Because of the varying characteristics and information, the media strategy and selection can be one of the most challenging areas for international marketers. This slide shows the issues facing international advertisers in their media selection decisions. Some of these issues are: Widely differing characteristics Quality Coverage Restrictions Availability Cost Media information problems Availability Reliability Circulation Audience Cost Use of this slide This slide can be used to discuss the issues facing international advertisers in their media selection decisions. EXAMPLE – MEDIA - NEWSPAPER nNorway – 4mil.inh. n1 daily morning newspaper nUruguay – 3 mil. inh. n21 daily newspaper nTurkey n380 daily newspaper – political position of each of them nJapan n 5 national daily newspaper Geograph. cover - national vs regional/local, Character – serious vs ???????? Separation between editorial and advertising content Advertising – TV and radio nPrime time nState(national) channels vs private vs satellite vs digital nLaw – regulation and restrictions n (EU – misleading advertisement) nShare and reach - TV vs radio n Personal selling - example n„A Briton visits a Saudi official to convince him to expedite permits for equipment being brought into the country. The Saudi offers the Briton coffee, which is politely refused (he had been drinking coffee all morning at the hotel while planning the visit). The latter sits down and crosses his legs, exposing the sole of his shoe. He passes the documents to the Saudi with his left hand, enquires after the Saudi´s wife and emphasises the urgency of getting the needed permits.“ (GHAURI, P., CATEORA, P., 2006). n5 MISTAKES OF SILENT LANGUAGE Selling orientation (USUNIER, J.C., 2006) nHard vs sell aproach ncollective sollution or and individual benefit? Customers´s friend Problem solver Soft sell Order taker Hard sell Concern for achieving the sale Concern for the customer Examples of pers. selling aproach nGermany – hard sell – be persistent, mak visits, offer trials, be very visible,have numbers and facts nUK – sof sell – do not be pushy, try to chat and convince – but also with hard facts nItaly – hard sell – argue strongly nJapan - sof sell – no win arguments but modest, rational and down-to earth points Types of Consumer Sales Promotion Activities nCoupons nPrice discounts (cents off) nBuy this, get that packs n25 percent more free n n nContests qConsumer nPremiums nSamples qFree use in B2B nLoyalty rewards n ADAPTATION? Types of Trade Sales Promotion Activities nTemporary price reduction nIncreased margin nTrade deals “buy 6 ship 8” nAnnual sales volume rewards qBe careful about anti-trust n n nContests (sales force) n ADAPTATION??? Sales promotion - examples nItaly – authorizes lotteries and sweepstakes where prizses are not in cash but in kind nFrance – no purchase is allowed to enter the competition nScandinavia – every promotion has to be approved by an official body nInflation rate and value of coupons nFree sample – a sing of poor quality? nFree sample and gifts – theft in channel? Christmas commercials round the world – standardisation or adaptation? nhttp://www.youtube.com/watch?v=Gj0edeveI0Q&feature=related nhttp://www.youtube.com/watch?v=t5pj82RcP5c&feature=related Merry Christmas from Tide Phillipins nhttp://www.youtube.com/watch?v=x5DzG_oPl8s Stella Artois nhttp://www.youtube.com/watch?v=FOtVbLvAgyw Mameshiba nhttp://www.youtube.com/watch?v=XcuS3_USDi4&feature=related Pedigree Christmas greeting nhttp://www.youtube.com/watch?v=JY9jVd2wvq4 Skoda Vánoce nhttp://www.youtube.com/watch?v=7dI7hLB5Tbs Orange Poland nhttp://www.youtube.com/watch?v=mTqwzrewcSY Alitalia Christmas attack nhttp://www.youtube.com/watch?v=fW5Xo4QrSBw Spanair – unexpected luggage nhttp://www.youtube.com/watch?v=dj6S_XM4RqA Moet et Chandon Christmas light switch on n n