International Marketing

14th Edition P h i l i p R. C a t e o r a M a r y C. G i l l y John L. Graham

Integrated Marketing Communications and International Advertising

Chapter 16
McGraw-Hill/Irwin International Marketing 14/e

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

What Should You Learn?

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

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What Should You Learn?

The effects of a single European market on advertising 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

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Global Perspective Barbie Versus Mulan

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

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Sales Promotions in International Markets

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

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International Public Relations

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 safety recall

Global workplace standards

Building an international profile

Corporate sponsorships
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Top 20 Global Advertisers

($ millions)
Exhibit 16.1

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Top 100 Advertisers Global Spending

($ millions)
Exhibit 16.2

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(Russia and China $ millions)

Exhibit 16.3

Top Ten Advertisers

(A) Russia

(B) China

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International Advertising
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 7. Evaluate the campaign relative to the goals specified
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Advertising Strategy and Goals

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

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Product Attributes and Benefit Segmentation

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
Cameras Yogurt Almonds

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

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Regional Segmentation
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

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Global Advertising and the Communications Process

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

It can never be assumed that if it sells well in one country, it will sell in another

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The International Communications Process

Exhibit 16.4

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Legal Constraints
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

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Linguistic Limitations
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

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Cultural Diversity
Knowledge of cultural diversity must encompass the total advertising project Existing perceptions based on tradition and heritages are often hard to overcome

Subcultures
Changing traditions

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Media Limitations and Production and Cost Limitations

Media limitations may diminish the role of advertising in the promotional program Examples of production limitations:
Poor-quality printing Lack of high-grade paper

Low-cost reproduction in small markets poses a problem in many countries

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Media Planning and Analysis Tactical Considerations

Availability Cost Coverage Lack of market data

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Media Planning and Analysis Tactical Considerations

Newspapers Magazines Radio and television Satellite and cable TV

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Media Planning and Analysis Tactical Considerations

Direct mail The Internet The New Social Media Other media

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Media Penetration in Selected Countries (per 1,000 persons)

Exhibit 16.5

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Top Ten Websites in Three Countries (visitors per month)

Exhibit 16.6

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Social Networking Goes Mobile

(Percent of Respondents)
Exhibit 16.7

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Campaign Execution and Advertising Agencies

Managed by advertising agencies
Local domestic agency Company-owned agency Multinational agency with local branches

Compensation
Commonly 15 percent throughout the world Some companies moving to reward-by-results

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Worlds Top Ten Advertising Agency Organizations

Exhibit 16.8

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International Control of Advertising Broader Issues

Consumer criticism Deceptive advertising Decency and blatant use of sex

Self-regulation
Government regulations

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Summary
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
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Summary
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

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