Unit 6: International Advertising: Global environment in advertising, Decision areas in international advertising Internet advertising: Meaning, Components, Advantages and Limitations, Types of Internet advertising Industrial advertising: B 2 B Communication, Special issues in Industrial selling.

1. INTEGRATED MARKETING
COMMUNICATIONS
UNIT - 6
By:
Dr. PANKAJAKSHI R
b.E.(ise), MBA, Ph.D.

2. INTEGRATED MARKETING
COMMUNICATIONS
UNIT - 6:
 International Advertising: Global environment in
advertising, Decision areas in international
advertising
 Internet Advertising: Meaning, Components,
Advantages and Limitations, Types of Internet
Advertising
 Industrial Advertising: B 2 B Communication,
Special issues in Industrial selling.

3. International Advertising
 International advertising entails dissemination
(distribution) of a commercial message to target
audiences in more than one country.
 It can be viewed as a communication process that
takes place in multiple cultures that differ in terms
of values, communication styles and consumption
patterns.
Role of International Advertising
 As a communication process
 As a business practice
 As an industry.
 As a social force

4. GlobalVersus Localized Advertising
 In Global Marketing, a company uses a common
marketing plan for all countries in which it
operates, thus selling the product in essentially
the same way everywhere in the world.
 Global Advertising falls under the umbrella of
global marketing as a way to implement this
strategy by using the same basic advertising
approach in all markets.
 In localized advertising, companies adapt their
messages to respond to differences in language,
market conditions and other factors.

5.  Economies of scale in production and distribution. Economies of
scale means average cost will come down, if an ad is produced for
all country
 Lower marketing and advertising costs as a result of reductions in
planning and control.
 Lower advertising production costs.
 Abilities to exploit good ideas on a worldwide basis and introduce
products quickly into various world markets.
 A consistent international brand and/or company image. Enables
company to get an international image
 Simplification of coordination and control of marketing and
promotional programs.
 Advertising contend that standardized products are possible in all
countries if marketers-emphasize quality, reliability, and low prices.
 Large ad agencies trying to increase business by encouraging
clients to use one agency to handle their communications
worldwide. Enables the company to increase sales
Advantages of Global Advertising

6. Problems in Global Advertising
 Differences
Culture, Market, and Economic development.
 Consumer needs and Usage patterns
 Media availabilities and
 Legal restrictions
Disadvantages of Global Advertising
 Differences in culture, market and economic development, media
availability, legal restrictions make it difficult for the company to
operate in international markets.
 Differences in consumers perception, usage pattern of product
affect the companies activities.
 One global campaign may not be suitable to all the countries, so
it leads to increase in cost of production of ads.
 The government of many countries are unstable. This is a major
difficulty faced by global marketers.

7. The International Environment
Forces in the International Marketing Environment
International
Marketing and
Promotions Decisions
Cultural environment
•Language
•Lifestyles
•Values
•Norms and customs
•Ethics and moral standards
Political/legal environment
•Government policies
•Laws and regulations
•Political stability
•Nationalism
•Attitudes toward multinational
companies
Demographic environment
•Size of population
•Number of households
•Household size
•Age distribution
•Occupation distribution
•Education levels
•Employment rate
•Income levels
Economic environment
Stage of economic
development
1.Economic infrastructure
2.Standard of living
3.Per capita income
4.Distribution of wealth
•Exchange rates

8. Economic Environment
 Developed countries have the economic
infrastructure in terms of the communication,
transportation, finance and distribution networks
needed to conduct business in markets effectively.
 Developing countries lack purchasing power and
have limited communications networks available to
firms - to promote their products or services.
 Marketers of products such as mobile phones, TVs,
personal computers, cars as well as luxury items
such as jewelry and designer clothing are focusing
more attention on consumers in India and China.

9. Demographic Environment
 Marketers must consider the Demographic
Environmental factors such as:
Income levels and distribution, age and occupation
distributions of the population, household size,
education and employment rates.
 More than 50 percent of the Latin American Market
is younger than age 26 and 30% is under 15.
 Children are the fastest growing segment of that
market.
 Purchasing power of customers in the countries viz.
USA, Japan, Australia etc. are substantially high
because of its employment rate.

10. Cultural Environment
 Cultural variables play a major role in international
marketing and advertising such as: Language, Customs,
Attitude, Lifestyle, values,Tastes and Preferences
 International marketers must be aware of the
connotations of words and symbols used in their
messages and understand how advertising copy and
slogans are translated.
 Advertisers can encounter problems with the connotative
meaning of signs and symbols used in their messages and
so on.
 There can also be problems associated with then symbolic
meaning of colors. In Japan, as in many Asian countries,
white is a color for mourning (sadness) rather than black,
and purple is associated with death in many Latin
American countries.

11. Political/Legal Environment
Legal environment differs from country to country in terms
of the following:
 Type of product to be advertised. For eg. Canada, France,
Italy, Sweden etc. limit tobacco product advertising to the
point-of purchase.
 Use of women in ads: Islamic countries may not accept
the women presence or women for ads, while other
nations allow the same.
 Use of foreign language: Some countries reserve some air
time to local language and local programme. Media
companies must follow the guidelines given by the
government.
 Use of air time: There is restrictions on air time also, for
eg. Few countries in the world do not allow toys to be
advertised in day time.

12. Political/Legal Environment ….
 Government/ General holiday: Generally, holiday is
targeted by the companies to advertise more for
some countries. Friday is a holiday for Islamic
Republics and Allies and for some other countries
Sunday is a holiday.
 Content: Sensor board does not allow all types of
content to be advertised.
 In some countries, companies are not allowed to
advertise price, whereas in other countries
companies are not allowed to compare the
competitor’s product etc.
 Cigarette advertising is banned in some or all media
in numerous countries

13. Decision Areas In International
Advertising
 Organizing for International Advertising
Centralized
Decentralized
Combination
 Creative decisions
 Media selections
Local media
International media

14. Decision Areas in International Advertising
Organizing for International Advertising
1. Centralization – Many companies prefer to centralize
the international advertising and promotion function, so
that all decisions about agency selection, research,
creative strategy, and campaign development, media
strategy and budgeting are made at the firm’s home
office.
2. Decentralization – Under a decentralized
organizational structure, marketing and advertising
managers in each market have the authority to make
their own advertising and promotional decisions.
3. Combination – The home office, or headquarters, has
the major control over advertising policy, guidelines and
operations in all markets. The international advertising
manager works closely with local or regional marketing
managers and personnel from the international agency
and sets advertising and promotional objectives

15. Agency selection
The company has three basic alternatives in selecting
an agency to handle its international advertising.
First, it can choose a major agency with both
domestic and overseas offices
A second alternative for the international marketer
is to choose an agency that, rather than having its
own foreign offices or branches, is affiliated with
agencies in other countries or belongs to a
network of foreign agencies.
Some companies like local agencies because they
may provide the best talent in each market.

16. Advertising Research
Research plays the important role in the development of
international advertising and promotion programs also as
that of domestically, which helps managers to make better,
more informed decisions.
Some of the companies do not conduct advertising research
in international markets.
There are a number of areas where research on foreign
markets can help firms make better decisions:
 Information on demographic characteristics.
 Information on cultural differences
 Information on consumer’s product usage, brand attitudes
and media preferences.
 Information on media usage and audience size.
 Copy testing to determine reactions to different types of
advertising appeals and executions.

17. Creative Decisions
Another decision facing the international
advertiser is determining the appropriate
advertising messages for each market. An
important factor in the development of creative
strategy is the issue of global versus localized
advertising.
Global advertising is creating a similar ad for all
the global markets whereas in localized
advertising, the creative team must determine
what type of selling idea, ad appeal and execution
style will work in each market.

18. Media Selection
 Companies generally find major differences in the media
available outside their home markets, and media conditions
may vary considerably from one country to another.
 In less developed countries such as Vietnam, Kenya and Egypt,
most consumers do not have contact with a marketer’s
advertising and promotion efforts until they enter a store.
Packaging and other point-of-purchase elements, rather than
media advertising, will have the greatest impact on purchase
decisions.
 The amount of time people spend watching television also
varies from one country to the next.
 The characteristics of media differs from country to country in
terms of coverage, cost, quality of reproduction, restrictions
and the like.
 Companies either use local media or international media that
have multimarket coverage to reach audiences in various
countries.

19. R/S B/W GLOBAL ADVERTISING AND
LOCAL ADVERTISING
 Cost
 Brand image
 Ideas
 Planning and control
 Coordination
 Culture
 Market and Economic development
 Consumer needs and preferences

20. Internet Advertising - Meaning
 It’s a hybrid media.
 It refers to a set of rules in which two computer
networks can exchange information with one
another.
 It has a worldwide linked computer network &
acts as an interactive communication media.
 Net can act as an information provider or a
direct response media, where by consumer buys
a product.

21. Components of Internet Advertising
 E-mail
 Internet relay chat (IRC):Talking electronically.
 Usenet: platform to share knowledge.
 Gopher: document retrieval system.
 Server: enables to use keyboard & retrieve data.
 Web Browsers: Netscape & internet Explorer.

22. Components of Internet Advertising…
 World wide web – Used as a marketing communication
tool. Most popular and used extensively.
 Electronic mail (e-mail) – Enables people to transmit
messages.
 Internet Relay Chat (I.R.C) – Enables the people to talk
electronically in real time with each other.
 Usenet – provides a platform to share knowledge.
 Gopher – Document retrieval system.
 Server – enables the user to use keywords and retrieve
the detailed information.
 Websites
 Web browsers – Netscape and Internet Explorer.
 Blogs

23. Advantages of Internet Advertising
 Measuring effectiveness
 Access
 Creative
 Budget
 Targeting the audience
 Message tailoring
 Interactive capabilities
 Sales potential

24. Advantages of Internet Advertising
 Target marketing – Ability to target very specific
groups of individuals with a minimum of waste
coverage.
 Message tailoring – As a result of precise targeting,
messages can be designed to appeal to the specific
needs and wants of the target audience.
 Interactive capabilities – Because the Internet is
interactive, it provides strong potential for increasing
customer involvement and satisfaction and almost
immediate feedback for buyers and sellers.
 Information access – Internet users can find a
plethora of information about almost any topic of
their choosing merely by conducting a search.

25. Advantages of Internet Advertising….
 Sales potential – There is an incredible sales
number being generated in both the B-2-B and the
Consumer segments.
 Creativity – Creatively designed sites can enhance
a company’s image, lead to repeat visits and
positively position the company in the consumer’s
mind.
 Exposure- Smaller companies, with limited
budgets, the World Wide Web enables them to gain
exposure to potential customers that heretofore
would have been impossible.
 Speed – For information about a company, its
products, and/or its service offerings, the internet is
the quickest means of acquiring the required
information.

26. Disadvantages/ Limitation – Internet
Advertising
 Web snarl (downloading problems)
 Clutter
 Privacy
 Measurement problem
 Audience characteristics
 Potential for deception
 Cost
 quality

27. Disadvantages/Limitations of Internet Ad
 Measurement problems – A quick review of
forecasts, audience profiles, and other statistics
offered by research providers will demonstrate a
great deal of variance-leading to a serious lack of
validity and reliability.
 Annoyance – Having to install additional software,
experiencing difficulty in navigation, other problems
encountered have led many consumers to
permanently leave sites.
 Clutter – As the number of ads proliferates, the
likelihood of one’s ad being noticed drops
accordingly.

28. Disadvantages/Limitations of Internet Ad…
 Potential for deception – Advertisers attempt
to target children with subtle advertising
messages.
 Privacy – Internet marketers must be careful
not to impinge upon the privacy of users.
 Poor reach – While the Internet numbers are
growing up by leaps and bounds, its reach still
lags behind that of television.
 Irritation – Studies have shown consumer’s
discontent with clutter, e-mail SPAM and pop-ups
and pop-unders.

29. Types of Internet Advertising /Online Ads
 Banner Ads
 Pop-ads
 Corporate Home page
 Sponsorship
 E-Mail
Elements of Internet Advertising
 Experiential Content (Based on experience)
 Transaction oriented content
 Sponsored content ( EX: Nike sponsoring
Golf).

30. Types of Internet Advertising
 Banners – Banner ads may be used for creating
awareness or recognition, entering viewers into contests
and sweepstakes, or direct marketing objectives.
 Sponsorships –Regular sponsorships occur when a
company pays to sponsor a section of a site. In content
sponsorship, the sponsor not only provides dollars in
return for name association but participates in providing
the content itself.
 Pop-ups/Pop-unders – Pop-ups are window or a
creature of some sort which appear on the screen, in an
attempt to gain our attention, when we access the
Internet. Pop-Unders are ads that appear underneath the
Web page and become visible only when the user leaves
the site.
 Interstitials – Interstitials are ads that appear on your
screen while you are waiting for a site’s content to
download.

31.  Push Technologies –Push Technologies dispatch Web
pages and news updates and may have sound and video
geared to specific audiences or individuals.
 Links – A visitor of one site may click on a link that
provides additional information and/or related materials at
another site.
 Paid Search – Paid Search, or search engine advertising,
is one in which advertisers pay only when a consumer
clicks on their ad or link from a search engine page.
 Behavioral Targeting – Behavioral Targeting is based on
advertisers’ targeting consumers according to their
website-surfing behaviors.
 Contextual Ads – Advertisers who target their ads
based on the content of the Web page are using
contextual advertising.
 Rich Media – A broad range of interactive digital media
that exhibit dynamic motion, taking advantage of enhanced
sensory features such as video, audio and animation.

32. Industrial Advertising
 It deals with information about business goods &
services.
 Industrial product market is Specialized & Concentrated.
 The items under business goods are machinery,
technology, material and processes to industrial
producers.
Objectives of Industrial Advertising
 It helps to improve the image among current and potential
customers.
 Conveys technical information and specification of the
product.
 Helps the customer to know the product represented by
the customer better.
 Industrial Advertisement supports the salesman and
reduces the overall selling cost.

33. Features of industrial buying
 Industrial Purchases made are straight forward.
 Prices are to be negotiated.
 Competitive bidding is encouraged.
 Specification varies from one manufacturer to
another.
 Differing requirement of several department is to
be met.

34. Business to Business (B-B)
Communication
A communication focusing on potential customers
who purchase in bulk for reproducing products /
services.
Objectives of B-B Communication:
1. Create awareness about P&S to target group.
2. To establish a favorable image.
3. To generate interest among target group.
4. Features & benefits of products can be easily
communicated to buyers.
5. The product may be provided for trial and live-
wire demonstration.

35. B 2 B & Consumer Focus Communication:
A Contrast
Elements
1. Decision
making
authority
2. Nature of
communica
tion
3. Involvement
of the
buyers
4.Integration of
communica
tion
elements
Business to business
communication
Consumer focus
Communication
1.Buying decision is made by
the buying centre or
committee consisting of
members drawn from
various departments.
2.Rational appeal, straight
talk, demonstration
3.Involvement is collective. If
a poor decision is made in
industrial buying, the entire
organization will suffer.
4. Focus would be on
demonstration. Multimedia
graphics such as 3D is used.
1. Consumer and decision
maker may be the same.
2. Emotional appeal and use
of different execution
style such as drama,
humor, fantasy, animation
etc.
3. The buyer is generally
involved in the buy
decision of the consumer
product.
4. The communication must
be eye catching
accompanied by graphics,
music etc.

36. Elements
Business to Business
Communication
Consumer focus
communication
5. Budget Allocation
6. Evaluation measure
7. Message content
8. Use of creativity
9. Media used
5. Personal selling gets
the highest budget
allocation and less
money is allotted to
ad and promotion.
6. Directly related to sales
of products.
7. Mainly focused on
feature, benefits and
other value additions
offered along with the
product.
8. Not much of a scope
for creativity since it
does not have any
impact on target
group.
9. Technical journals and
magazines.
5. Bulk of the marketing
money is spent on
market research, ad and
promotion.
6. Directly related to
reach and coverage.
7. The communication
message is designed to
create awareness,
interest, emotion,
humour etc.
8. Great scope for
creativity as it acts as a
nerve center of success
and failure of ad.
9. TV, Radio, print media
etc.

37. Business to Business
B-B Promotion
 Advertising
 Direct marketing
 Internet
 Sales promotion
 Public relation
 Interactive media.

38. Special Issues in Industrial Selling
 Market related.
 Product/ price/ channel related.
 Buyer related.
 Promotion related.

39. Special Issues in Industrial Selling
a) Market related:
1. Size and concentration of market: If the size is
small, there will be less number of customers. The
need in mass media for advertising is limited.
Emphasis is on personal selling, direct mail,
catalogue etc.
2. Each customer is large: Customers are large calling
for knowledgeable sales person.
3. Derived demand: Customer product have direct
demand and all industrial products have derived
demand, which is indirect in nature.
4. Limited secondary data source: Business marketing
has poor secondary data sources.

40. Special Issues in Industrial Selling….
b) Product, Price and Channel
1. Product specification: If the product is tailor-
made, more of pre-purchase technical
discussion and post purchase follow up by
salesman.The salesman’s role is crucial
2. Negotiates Price: In Industrial product, price
negotiation is inevitable (unavoidable).
3. Short and Direct channel: In industrial product,
there is a direct contact between the customer
and the supplier. So there is no need for
advertising. Salesman is most important.

41. THANK YOU