6-2 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 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

3 16-3 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

4 16-4 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, cent-offs, in-store demonstrations, coupons, gifts, product tie-ins,
contests, sponsorship of special events. Designed to supplement advertising and
personal selling in the promotional mix.

5 16-5 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 (death of over 100 people) Honda safety recall
(Honda Accord) (1.5 million in the US and 760,000 in China) transmission shaft
- may be broken during certain driving styles causing engine problem. Global
workplace standards and product safety recall Building an international profile
companies need PR consultation to build an international profile Corporate
sponsorships as an aspect of PR, sports events and charity events (Pizza Hut
and KFC)

6 16-6 Exhibit 16.1

7 16-7 Exhibit 16.2

8 16-8 Exhibit 16.3 (A) Russia (B) China

9 16-9 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
(executional styles) 7. Evaluate the campaign relative to the goals specified
10 16-10 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 (global youth)

11 16-11 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 Cars Breakfast cereal 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

12 16-12 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

13 16-13 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 to
avoid transmission of message that results in unattended meaning. It can
never be assumed that if it sells well in one country, it will sell in another
(Disney)

14 16-14 Exhibit 16.4

15 16-15 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

16 16-16 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

17 16-17 Knowledge of cultural diversity must encompass the total advertising

project Existing perceptions based on tradition and heritages are often hard to
overcome Subcultures (different patterns of breakfast eating) Changing
traditions

18 16-18 Media limitations may diminish the role of advertising in the

promotional program Examples of production limitations: Poor-quality
printing Lack of high-grade paper In Egypt, static-filled television and poor-
quality billboards have led companies such as Coca-Cola and Nestl to place
their advertisements on the sails of boats that sail along the Nile. Low-cost
reproduction in small markets poses a problem in many countries. For example,
hand-painted billboards must be used instead of printed sheets because the
limited number of billboards does not warrant the production of printed sheets

19 16-19 Availability (too few vs. too many) Cost (cost per contact varies
widely) Coverage (difficulty of reaching certain sector) Lack of market data

20 16-20 Newspapers Magazines Radio and television Satellite and cable

TV

21 16-21 Direct mail The Internet The New Social Media (WOM, Blogs,
Video sharing) Other media

22 16-22 Exhibit 16.5

23 16-23 Exhibit 16.6

24 16-24 Exhibit 16.7

25 16-25 Managed by advertising agencies Local domestic agency

Company-owned agency Multinational agency with local branches
Compensation for advertising agencies: Commonly 15 percent throughout the
world Some companies moving to reward-by-results (sales rise, the agency will
be rewarded accordingly)

26 16-26 Exhibit 16.8

27 16-27 Consumer criticism (skepticism) Deceptive advertising Decency

and blatant use of sex Self-regulation and restrictive laws Government
regulations

28 16-28 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

29 16-29 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