Integrated Marketing Communications and

International Advertising

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Global PerspectiveBarbie Versus Mulan

• Integrated marketing communications (IMC)- Advertising- Sales promotions- Trade shows- Personal selling- Direct selling- Public relations

• Objective: the successful sale of a product or service

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International IMC

Quicksilver Skateboards using Alternative Touch Points throughout Asia

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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

• Bridgestone/Firestone Tires safety recall• Global workplace standards• Building an international profile• Corporate sponsorships

The role of 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.

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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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Top 20 Global Advertisers ($ millions)

• Insert Exhibit 16.1

Advertising Age 2005

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Top 100 Global Advertisers ($ millions)

Total Global Spending 2003 vs 2002

Advertising Age 2005

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Top 10 Russian Advertisers ($ millions)

Growth of Advertising in Russia

Advertising Age 2005

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Top 10 Chinese Advertisers ($ millions)

Growth of Advertising in China

Advertising Age 2005

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Advertising Strategy and Goals

• Marketing problems require careful marketing research and thoughtful and creative advertising campaigns in country, regional, and global markets, respectively.

• Increased need for more sophisticated advertising strategies.• Balance between standardization of advertising themes and

customization.• Consumer cultures

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Advertising Strategy and Goals

Vehicular Ads in London Are Visible Even in Fog

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Product Attributes and Benefit Segmentation

• Different cultures usually agree on the benefit of the primary function of a product

• 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, that each has its own set of differences, and that each will require a different marketing approach and strategy

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Regional Segmentation

• Pan-European communications media highlighting 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, the 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

• Insert Exhibit 16.4

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Red Works

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What’s in a Word…California?

Southern California Lifestyle Meets 11th Century Islam(Out of Home Advertising in Singapore)

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Legal Constraints

• Laws that control comparative advertising vary from country to country in Europe.

• 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

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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• Newspapers• Magazines

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Media Planning and Analysis – Tactical Considerations

Media Penetration in Selected Countries

Per 1000 Persons Euromonitor, World Bank, 2005

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Media Planning and Analysis – Tactical Considerations

Local Restrictions or Lack of Availability Spawn Other Media Vehicles

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Media Planning and Analysis – Tactical Considerations (continued)

• Radio and television• Satellite and cable TV• Direct mail• The Internet• Other media

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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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Campaign Execution and Advertising Agencies

Advertising Age 2004

Top 10 Advertising Agency Organizations

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International Control of Advertising: Broader Issues

Advertising/Consumption – Cause/Effect?

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International Control of Advertising: Broader Issues

• Consumer criticism• Deceptive advertising• Decency and blatant use of sex• Self-regulation• Government regulations