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International Marketing
15th edition
Philip R. Cateora, Mary C. Gilly, and John L. Graham
16
Introduction
• Integrated marketing communications (IMC) are
composed of advertising, sales promotions, trade shows,
personal selling, direct selling, and public relations
• All these mutually reinforcing elements of the marketing
mix have as their common objective the successful sale of
a product or service
• For most companies, advertising and personal selling are
the major components in the marketing communications
mix
• The goal of most companies, large and small, is to
achieve the synergies possible when sales promotions,
public relations efforts, and advertising are used in
concert
Roy Philip 2
16Sales 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
3Roy Philip
16International
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
4Roy Philip
16
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
5Roy Philip
16
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
6Roy Philip
16Product 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
7Roy Philip
16
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
8Roy Philip
16
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
9Roy Philip
16
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
10Roy Philip
16Media 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
11Roy Philip
16Campaign 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
12Roy Philip
16International Control
of Advertising – Broader Issues
• Consumer criticism
• Deceptive advertising
• Decency and blatant use of sex
• Self-regulation
• Government regulations
13Roy Philip
16
Summary (1 of 2)
• 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
14Roy Philip
16
Summary (2 of 2)
• 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
15Roy Philip

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Chapter 16 promotion_international_marketing_15th

  • 1. International Marketing 15th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham
  • 2. 16 Introduction • Integrated marketing communications (IMC) are composed of advertising, sales promotions, trade shows, personal selling, direct selling, and public relations • All these mutually reinforcing elements of the marketing mix have as their common objective the successful sale of a product or service • For most companies, advertising and personal selling are the major components in the marketing communications mix • The goal of most companies, large and small, is to achieve the synergies possible when sales promotions, public relations efforts, and advertising are used in concert Roy Philip 2
  • 3. 16Sales 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 3Roy Philip
  • 4. 16International 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 4Roy Philip
  • 5. 16 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 5Roy Philip
  • 6. 16 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 6Roy Philip
  • 7. 16Product 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 7Roy Philip
  • 8. 16 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 8Roy Philip
  • 9. 16 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 9Roy Philip
  • 10. 16 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 10Roy Philip
  • 11. 16Media 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 11Roy Philip
  • 12. 16Campaign 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 12Roy Philip
  • 13. 16International Control of Advertising – Broader Issues • Consumer criticism • Deceptive advertising • Decency and blatant use of sex • Self-regulation • Government regulations 13Roy Philip
  • 14. 16 Summary (1 of 2) • 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 14Roy Philip
  • 15. 16 Summary (2 of 2) • 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 15Roy Philip