International Marketing Communication and its process..promotional tools
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International Marketing Communication and its process..promotional tools
- 1. INTERNATIONAL MARKETING COMMUNICATION By: Radhika Arora
- 3. International Marketing Communications (IMC): is the coordination and integration of all marketing communications tools, avenues, and sources within a company into a seamless program that maximizes the impact on consumer and other end users at a minimal cost.” Clow and Baack, 2004,
- 4. Communication is a major part of export marketing activities. It is not enough to produce goods and make available a product or service; it is also necessary to provide information that buyers need to make purchasing decisions.
- 7. International Marketing As Senders As Receivers Develop messages Adapt messages Spot new communication opportunities Inform Persuade Remind Communication
- 8. The Communication Process NNooiissee Encoding Message SSeennddeerr Encoding Message Message Channel Message Channel Feedback Channel Feedback Channel Decoding Message RReecceeiivveerr Decoding Message
- 18. Communication with foreign buyers: Planning and Preparing for Promotional Campaign
- 20. Planning Promotional Campaigns- Steps Involved • Determine the target audience • Determine specific campaign objectives • Determine the budget • Determine media strategy • Determine the message • Determine the campaign approach • Determine campaign effectiveness
- 21. Target Audience • Global marketers face multiple audiences beyond customers. • Cause-related marketing: the company or one of its brands is linked with a cause such as environmental protection. • Corporate image advertising- an umbrella campaign may help either boost the image of a lesser-known product line or make the company be perceived more positively.
- 22. Campaign Objectives • Essential to the planning of an international promotional campaign is the establishment of clearly defined, measurable objectives • Typical goals: – Increase awareness – Enhance image – Improve market share
- 23. The Budget • The promotional budget links established objectives with media, messages, and control decisions. • Available funds may dictate the basis from which the objective-task method can start. • Take a market-by-market approach • It establishes a control mechanism
- 24. Media Strategy • The major factors determining choice of media vehicles: – Media availability- government restrictions are there for media – Product influences- different restrictions for different kinds of products, e.g., tobacco, alcohol, pharmaceutical products – Audience characteristics- demographics, media habits, advertising exposure – Global media- Time, Economist, MTV, Internet – Promotional message- targeted message, S-A issues
- 25. The Campaign Approach • What type of outside services to use? – Advertising agencies, local vs. global , e.g., McCann-Erickson- 130 countries – Agency-Client relationship – Using local agencies • How to establish decision-making authority for promotional efforts? – Centralization vs. decentralization – Reasons for Centralization- economies of scale, synergy, consistency – Reasons for Decentralization- proximity to market, flexibility, faster response time, cultural sensitivity
- 26. Measurement of Advertising Effectiveness • Commonly used measurements regardless of medium used: – Sales – Awareness – Recall – Intention to buy – Profitability – Coupon return
- 27. The Role of Promotion PPrroommoottioionn Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response.
- 28. Promotion Strategy Promotional Strategy Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Sales Promotion Personal Selling Competitive Advantage
- 29. Competitive Advantage HHiigghh pprroodduucctt qquuaalliittyy RRaappiidd ddeelliivveerryy LLooww pprriicceess EExxcceelllleenntt sseerrvviiccee UUnniiqquuee ffeeaattuurreess
- 30. Goals and Tasks of Promotion InInffoorrmmiinngg RReemmiinnddiinngg Target Audience Target Audience PPeerrssuuaaddiinngg
- 31. Goals and Tasks of Promotion InInffoorrmmiinngg RReemmininddiningg Target Audience Target Audience PPeerrssuuaaddiinngg PPLLCC SSttaaggeess: Introduction Early Growth PPLLCC SSttaaggeess:: Growth Maturity PPLLCC SSttaaggeess:: Maturity
- 32. Goals and Tasks of Promotion Reminder Promotion Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness
- 33. The AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. AIDA Concept AIDA Concept Attention Interest Desire Action Attention Interest Desire Action
- 34. The AIDA Concept
- 35. International Promotion Strategies: Push and Pull Strategies Manufacturer promotes to wholesaler Manufacturer promotes to wholesaler Wholesaler promotes to retailer Wholesaler promotes to retailer Retailer promotes to consumer Retailer promotes to consumer Consumer buys from retailer Consumer buys from retailer PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumer Manufacturer promotes to consumer PULL STRATEGY Consumer demands product from retailer Consumer demands product from retailer Retailer demands product Retailer demands product from wholesaler from wholesaler Wholesaler demands product from manufacturer Wholesaler demands product from manufacturer Orders to manufacturer
- 36. • Standard Promotion Strategy • Differential Promotion Strategy
- 37. Factors Affecting Promotional Mix
- 38. The Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Sales Promotion Personal Selling Promotional Promotional Mix Mix
- 39. The Promotional Mix IImmppeerrssoonnaall,, oonnee--wwaayy mmaassss ccoommmmuunniiccaattiioonn aabboouutt aa pprroodduucctt oorr oorrggaanniizzaattiioonn tthhaatt iiss ppaaiidd ffoorr bbyy aa mmaarrkkeetteerr.. Advertising Advertising
- 40. Integrated Marketing Communications Integrated Marketing Integrated Marketing Communications Communications The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer.
- 41. Media Structure: Types of advertising Media
- 42. Advertising Media Traditional Advertising Media New Advertising Media Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards Internet Banner ads Viral marketing E- mail Interactive video
- 43. Advertising Advantages Disadvantages Reach large number of people Low cost per contact Can be micro-targeted Total cost is high National reach is expensive for small companies
- 44. Public Relations The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance. Public Relations Public Relations
- 45. The Function of Public Relations Maintain a positive image Educate the public about the company’s objectives Introduce new products Support the sales effort Generate favorable publicity
- 46. Sales Promotion Marketing activities— other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness. Sales Promotion Sales Promotion
- 47. Sales Promotion End End Consumers Consumers Company Employees Company Employees Trade Customers Trade Customers FFrreeee ssaammpplleess CCoonntteessttss PPrreemmiiuummss TTrraaddee SShhoowwss VVaaccaattiioonn GGiivveeaawwaayyss CCoouuppoonnss
- 48. Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. Personal Selling Personal Selling
- 49. Personal Selling Traditional Selling Traditional Selling Relationship Relationship Selling Selling
- 50. Characteristics of the Elements in the Promotional Mix Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Advertising Indirect and impersonal Low Little Delayed One-way Yes Yes Fast Same message to all audiences
- 51. Characteristics of the Elements in the Promotional Mix Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Public Relations Usually indirect, impersonal Moderate to low Little Delayed One-way No No Usually fast Usually no direct control
- 52. Characteristics of the Elements in the Promotional Mix Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Sales Promotion Usually indirect and impersonal Moderate to low Little to moderate Varies Mostly one-way Yes Yes Fast Same message to varied target
- 53. Characteristics of the Elements in the Promotional Mix Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Personal Selling Direct and face-to-face High Much Immediate Two-way Yes Yes Slow Tailored to prospect
- 54. Factors Affecting the Choice of Promotional Mix NNaattuurree ooff tthhee pprroodduucctt SSttaaggee iinn PPLLCC TTaarrggeett mmaarrkkeett ffaaccttoorrss TTyyppee ooff bbuuyyiinngg ddeecciissiioonn PPrroommoottiioonn ffuunnddss PPuusshh oorr ppuullll ssttrraatteeggyy
- 55. Planning Media Strategy IInntteerrnnaattiioonnaall MMeeddiiaa hhaabbiittss MMeeddiiaa AAvvaaiillaabbiilliittyy MMeeddiiaa RReelliiaabbiilliittyy MMeeddiiaa RReessttrriiccttiioonnss MMeeddiiaa CCoossttss
- 57. • Advertising that is more public relations than sales promotion. • Its objective is to build a firm’s corporate image, reputation, and name-awareness among the general public or within an industry.
- 58. Types of Corporate Advertising
- 59. Role of Corporate Advertising in International Marketing • Balanced Communication Process • Increases Customer Relationship across Nations • Maximizes Sales and Profits • Multitasking
Editor's Notes
- Notes: Marketers are both senders and receivers of messages. As senders, marketers inform, persuade, and remind the target market to adopt courses of action. As receivers, marketers attune themselves to the target market in order to develop and adapt messages, and spot new communication opportunities. Marketing communication is a two-way process.
- Notes: Marketing communication is a two-way process, as shown in Exhibit 14.2. The sender originates the message. Encoding is the conversion of the sender’s ideas and thoughts into a message, usually words or signs. Transmission of a message requires a channel—some communication medium. Reception occurs when the message is detected by the receiver. Transmission may be hindered because of noise—anything that interferes with, distorts, or slows down the transmission of information. Decoding is the interpretation of the language and symbols sent. Proper match between the message to be conveyed and the target market’s attitude is the job of the marketing manager. Differences in culture, age, social class, education, and ethnicity can lead to miscommunication. Marketers targeting consumers in foreign countries must also worry about translation and miscommunication issues. The receiver’s response to a message is direct feedback to the source. Since mass communicators are cut off from direct feedback, they rely on market research or analysis of viewer perceptions for indirect feedback.
- Notes: For goods and services to survive in the marketplace, effective promotion is needed to inform, persuade, and remind potential buyers of a product.
- Notes: 1. Promotional strategy is a plan for using promotion effectively.
- Notes: The main function of a marketer’s promotional strategy is to convince the target market that the goods and services offered provide a competitive advantage. A competitive advantage is the set of unique features of a company and its products that are perceived as superior over the competition. These features are listed on this slide. Discussion/Team Activity: Discuss companies and products that demonstrate a competitive advantage based on the features shown above.
- Notes: Promotion seeks to modify behavior and thoughts in some way. It also strives to reinforce existing behavior. Promotion has three basic tasks: it can inform the target audience, persuade the target audience, or remind the target audience. Often a marketer will try to accomplish two or more of these tasks at the same time.
- Notes: The informing phase of promotion seeks to convert an existing need into a want or to stimulate interest in a new product. It is more prevalent during the early stages of the product life cycle. Persuasive promotion is designed to stimulate a purchase or an action. It becomes the main promotion goal when the product enters the growth stage of its life cycle. Reminder promotion is used to keep the product/brand name in the public’s mind. It is effective during the maturity cycle. A discussion of each category follows. Discussion/Team Activity: Name products/brands and discuss the stage of their product life cycle. Categorize the type of promotion—informative, reminder, or persuasive-- that is used in the product/brand promotional mix.
- Notes: The goal of any promotion is to get someone to buy a good or service, or take some action. A classic model for reaching promotional goals is called the AIDA concept—attention, interest, desire, and action—the stages of consumer involvement. This model proposes that consumers respond to marketing messages in a cognitive--thinking, affective--feeling, and conative--doing sequence.
- Notes: Exhibit 14.4 shows the relationship between the AIDA model and the promotional mix. Above is a variation on that exhibit. For example, advertising is most useful in gaining attention for goods. In contrast, personal selling reaches fewer people at first. Salespeople are more effective at creating customer interest, in creating desire, and taking action. Public relations is best at gaining attention for a company, a good or service. Sales promotion’s greatest strength is in creating strong desire and purchase intent (action).
- Notes: Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise. This is known as a push strategy. The wholesaler, in turn, pushes the merchandise forward by persuading the retailer to handle the goods. The retailer uses advertising and other forms of promotion to convince customers to buy the “pushed” products. At the other end is a pull strategy, which stimulates consumer demand to obtain product distribution. The manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders. The wholesaler then places an order for the “pulled” merchandise from the manufacturer. Consumer demand pulls the product through the channel of distribution. A company typically uses a mix of push and pull strategies.
- Notes: Most promotional strategies use several components of promotion, which may include advertising, public relations, sales promotion, and personal selling to reach the target market. The more emphasis is placed on a particular promotional element, the more important that element is considered to be in the overall promotional mix. A discussion of each of the promotional mix elements follows.
- Notes: Almost all companies use some form of advertising, ranging from a newspaper classified ad to a multimillion-dollar campaign.
- Notes: Media choices are plentiful and fragmented. In addition to the traditional advertising media, new methods are being used to reach consumers. Internet advertising is being increasingly used as a vital component. Banner ads, viral marketing, and interactive promotions are all ways to reach the target audience. Discussion/Team Activity: Some consumers and lawmakers feel that consumer privacy is being violated with Internet advertising methods. Discuss this as a class. Refer to the “Ethics in Marketing” box.
- Notes: Advertising has the advantage of being able to reach larger numbers of people, but it can also be microtargeted to small groups. Although the cost per contact in advertising is low, the total cost to advertise is typically very high. Only financially able companies can afford to advertise on a national basis.
- Notes: Many organizations spend large amounts of money to build a positive public image. Public relations help an organization communicate with stockholders, customers, suppliers, government, employees, and the community.
- Notes: Public relations is used to maintain a positive image, as well as the functions shown on this slide. Nothing sells a product better than free publicity, but publicity should not be viewed as free. Preparing news releases, staging events, persuading media personnel to print or broadcast them costs money. Discussion/Team Activity: Discuss current examples of publicity regarding organizations.
- Notes: Sales promotion is generally a short-run tool used to stimulate immediate increases in demand. Sales promotion is used to improve the effectiveness of other ingredients in the promotion mix, especially advertising and personal selling. Online Nabisco Nabisco lists its promotions on its Web site. What do you think the advantages and disadvantages of this technique are? What changes, if any, would you suggest?
- Notes: Sales promotion can be aimed at end consumers, trade customers, or a company’s employees. A major promotional campaign might use several of the tools shown on this slide, along with the other elements of the promotion mix. Discussion/Team Activity: Discuss a few recent product releases. What sales promotion techniques were used to complement the other components of the marketing mix? What techniques make sales promotion efforts effective on college campuses?
- Notes: Personal selling is a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other. Both buyer and seller have specific objectives: the buyer may need to minimize cost or assure a quality product, while the salesperson may need to maximize revenue and profits.
- ,JU Notes: Traditional methods of personal selling include a planned presentation to one or more prospective buyers. The seller tries to persuade the buyer to accept a point of view or take action. Frequently, the traditional view of personal selling creates a win-lose outcome at the expense of the buyer. Relationship selling emphasizes a win-win outcome and the accomplishment of mutual objectives that benefit both buyer and salesperson in the long-term. The goal is a long-term, committed relationship based on trust and customer loyalty. Personal selling is increasingly dependent on the Internet to attract potential buyers seeking information.
- Notes: Promotional mixes vary a great deal from one product and one industry to the next. Advertising and personal selling are used to promote goods and services, supplemented by sales promotion. Public relations helps develop a positive image for the product and the organization. A firm may choose not to use all four promotional elements, or it may choose to use them in varying degrees. This slide shows the factors affecting the promotion mix chosen by a firm. Subsequent slides describe the key points of each factor.