International Marketing - Chapter 16: Integrated Marketing Communications and International Advertising

Chapter 16Integrated Marketing Communications and International AdvertisingInternational Marketing15th edition Philip R. Cateora, Mary C. Gilly, and John L. GrahamIntroductionIntegrated marketing communications (IMC) are composed of advertising, sales promotions, trade shows, personal selling, direct selling, and public relations All these mutually reinforcing elements of the marketing mix have as their common objective the successful sale of a product or serviceFor most companies, advertising and personal selling are the major components in the marketing communications mixThe goal of most companies, large and small, is to achieve the synergies possible when sales promotions, public relations efforts, and advertising are used in concertRoy Philip 2Sales Promotions in International MarketsSales promotionsMarketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperationShort-term efforts directed to the consumer or retailer to achieve specific objectivesIn markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increasedProduct sampling3Roy Philip International Public RelationsPublic 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 regulatorsBridgestone/Firestone Tires safety recallGlobal workplace standardsBuilding an international profileCorporate sponsorships4Roy Philip International AdvertisingPerform marketing researchSpecify the goals of the communicationDevelop the most effective message(s) for the market segments selectedSelect effective mediaCompose and secure a budgetExecute the campaignEvaluate the campaign relative to the goals specified5Roy Philip Advertising Strategy and GoalsMarketing problems Require careful marketing research Thoughtful and creative advertising campaigns In country, regional, and global marketsIncreased need for more sophisticated advertising strategiesBalance between standardization of advertising themes and customizationConsumer cultures6Roy Philip Product Attributes and Benefit SegmentationDifferent cultures usually agree on the benefit of the primary function of a product or serviceOther features and psychological attributes of the item can have significant differencesCamerasYogurtAlmondsBlue Diamond Assumes that no two markets will react the sameEach has its own set of differencesEach will require a different marketing approach and strategy7Roy Philip Regional SegmentationPan-European communications media highlights need for more standardized promotional effortsCosts savings with a common theme in uniform promotional packaging and designLegal restrictions slowly being eliminated8Roy Philip Legal ConstraintsComparative advertisingAdvertising of specific productsControl of advertising on televisionAccessibility to broadcast mediaLimitations on length and number of commercialsInternet servicesSpecial taxes that apply to advertising9Roy Philip Linguistic LimitationsLanguage is one of the major barriers to effective communication through advertisingTranslation challengesLow literacy in many countriesMultiple languages within a countryIn-country testing with the target consumer group avoids problems caused by linguistic differences10Roy Philip Media Limitations and Production and Cost LimitationsMedia limitations may diminish the role of advertising in the promotional programExamples of production limitations:Poor-quality printingLack of high-grade paperLow-cost reproduction in small markets poses a problem in many countries11Roy Philip Campaign Execution and Advertising AgenciesManaged by advertising agenciesLocal domestic agencyCompany-owned agencyMultinational agency with local branchesCompensationCommonly 15 percent throughout the worldSome companies moving to reward-by-results12Roy Philip International Control of Advertising – Broader IssuesConsumer criticismDeceptive advertisingDecency and blatant use of sexSelf-regulationGovernment regulations13Roy Philip Summary (1 of 2)An integrated marketing communications (IMC) program includes coordination among advertising, sales management, public relations, sales promotions, and direct marketingCurrently companies are basing their advertising strategies on national, subcultural, demographic, or other market segmentsThe major problem facing international advertisers is designing the best messages for each market served14Roy Philip Summary (2 of 2)The availability and quality of advertising media vary substantially around the worldAdvances in communication technologies are causing dramatic changes in the structure of the international advertising and communications industries15Roy Philip