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THE INTERNATIONAL ENVIRONMENT  FOR PROMOTION and IMC 7.1
Cultural Communications <ul><li>Culture  - Total Way of a People, the Social Legacy the Individual Acquires from His or He...
Importance of International Communication <ul><li>Complex Social, Political & Economic Changes Affect International Commun...
Importance and Rise of International Communication  (con’t) <ul><ul><li>Liberalization of the Flow of Labor and Increase i...
Overcoming Cultural Barriers in International Promotion <ul><li>Barriers to Creating Successful International  Promotions ...
How Might This American Ad Be Viewed as Ethnocentric 7.6
Overcoming Cultural Barriers in  International Promotion  (con’t) <ul><li>Cross-Cultural Research Helps Overcome Barriers ...
Challenges in International Advertising <ul><li>Creative Challenge </li></ul><ul><li>Media Challenge </li></ul><ul><ul><li...
International Markets Prefer Different Creative Executions 7.9
Challenges in International Sales Promotion, Direct Marketing and e-Commerce <ul><li>CHARACTERISTICES OF THE PRODUCT </li>...
Challenges in International Sales Promotion, Direct Marketing and e-Commerce  (con’t) <ul><li>LEVEL OF ECONOMIC DEVELOPMEN...
Challenges in International Sales Promotion, Direct Marketing and e-Commerce  (con’t) <ul><li>LEVEL OF ECONOMIC DEVELOPMEN...
Challenges in International Sales Promotion, Direct Marketing and e-Commerce  (con’t) <ul><li>STRUCTURE OF TRADE CHANNELS ...
Challenges in International Sales Promotion, Direct Marketing and e-Commerce  (con’t) <ul><ul><li>REGULATIONS </li></ul></...
Promotions in  International Markets Must be Researched for Regulation and Legality 7.15
Challenges in International Public Relations <ul><li>COMPANIES HAVE LESS CONTROL OVER GLOBAL PUBLICITY RELATIVE TO DOMESTI...
Promotion Agencies Around the World <ul><li>GLOBAL AGENCY </li></ul><ul><li>Will Know Marketer’s Products & Current Promot...
Standardized vs. Promotional Customized Campaigns <ul><li>STANDARDIZED CAMPAIGNS USE SAME APPEAL & CREATIVE EXECUTION ACRO...
Certain Product Lend Themselves to  Standardized Campaigns 7.19
Standardized vs. Promotional Customized Campaigns  (con’t)   <ul><li>ENVIRONMENT FOR STANDARDIZED PROMOTION IS MORE FAVORA...
Challenges in Developing & Managing  A Global Sales Force <ul><li>DEVELOPING A GLOBAL SALES FORCE CAN BE ACHIEVED WITH: </...
Challenges in Developing & Managing  A Global Sales Force <ul><li>MANAGING THE GLOBAL SALES FORCE </li></ul><ul><li>Traini...
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International Imc

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International Imc

  1. 1. THE INTERNATIONAL ENVIRONMENT FOR PROMOTION and IMC 7.1
  2. 2. Cultural Communications <ul><li>Culture - Total Way of a People, the Social Legacy the Individual Acquires from His or Her Group </li></ul><ul><li>Culture is Typically Invisible to Those Who are Immersed In It, Making Communication Across Cultures Difficult </li></ul><ul><li>7.2 </li></ul>
  3. 3. Importance of International Communication <ul><li>Complex Social, Political & Economic Changes Affect International Communications Environment. </li></ul><ul><li>International Developments Relevant to the Rise in International Commercial Communications: </li></ul><ul><ul><li>Development of Trading Blocs - May be Prelude to a Rise in Nationalism </li></ul></ul><ul><ul><li>Loosening of Political and Economic Constraints </li></ul></ul><ul><ul><li>7.3 </li></ul></ul>
  4. 4. Importance and Rise of International Communication (con’t) <ul><ul><li>Liberalization of the Flow of Labor and Increase in movements of Peoples Across Borders </li></ul></ul><ul><ul><li>Growing Size of Ethnic Groups From Elevated Birth Rates </li></ul></ul><ul><ul><li>Rise of Cultural Borders and Barriers even as Economic Barriers Begin to Fall </li></ul></ul><ul><ul><li>7.4 </li></ul></ul>
  5. 5. Overcoming Cultural Barriers in International Promotion <ul><li>Barriers to Creating Successful International Promotions </li></ul><ul><ul><li>Ethnocentrism </li></ul></ul><ul><ul><li>Self-Reference Criterion </li></ul></ul><ul><li>7.5 </li></ul>
  6. 6. How Might This American Ad Be Viewed as Ethnocentric 7.6
  7. 7. Overcoming Cultural Barriers in International Promotion (con’t) <ul><li>Cross-Cultural Research Helps Overcome Barriers </li></ul><ul><ul><li>Secondary Data - Data Gathered by Someone Else </li></ul></ul><ul><ul><li>for Some Other Purpose </li></ul></ul><ul><ul><li>Primary Data - Specific Data Collection Unique to a Promotional Situation </li></ul></ul><ul><ul><ul><li>Economic Conditions </li></ul></ul></ul><ul><ul><ul><li>Demographics Characteristics </li></ul></ul></ul><ul><ul><ul><li>Values </li></ul></ul></ul><ul><ul><ul><li>Custom & Ritual </li></ul></ul></ul><ul><ul><ul><li>Product Use & Preference </li></ul></ul></ul><ul><ul><li>7.7 </li></ul></ul>
  8. 8. Challenges in International Advertising <ul><li>Creative Challenge </li></ul><ul><li>Media Challenge </li></ul><ul><ul><li>Media Availability & Coverage </li></ul></ul><ul><ul><li>Media Costs & Pricing </li></ul></ul><ul><li>Regulatory Challenge </li></ul><ul><li>7.8 </li></ul>
  9. 9. International Markets Prefer Different Creative Executions 7.9
  10. 10. Challenges in International Sales Promotion, Direct Marketing and e-Commerce <ul><li>CHARACTERISTICES OF THE PRODUCT </li></ul><ul><li>Product Prevalence & Use </li></ul><ul><li>As Competitive Environment Becomes More Complex, Advertising Designed to Differentiate Brands will Become More Predominant </li></ul><ul><li>Products Moving into Growth Stage will Need to be Differentiated </li></ul><ul><li>7.10 </li></ul>
  11. 11. Challenges in International Sales Promotion, Direct Marketing and e-Commerce (con’t) <ul><li>LEVEL OF ECONOMIC DEVELOPMENT </li></ul><ul><li>All Forms of Production & Direct Marketing are Applicable in Highly Industrialized Markets </li></ul><ul><li>In Less Developed Countries - Lack of Wide Range of Consumer Goods & Low Income Make Promotion a Non Issue </li></ul><ul><ul><li>Few Competitors Serve these Markets </li></ul></ul><ul><ul><li>Low Literacy Make Communication Difficult w/Print Media </li></ul></ul><ul><ul><li>Without TV, Radio & Newspaper, Direct marketing is Undermined </li></ul></ul><ul><ul><li>Unsophisticated Mail Systems </li></ul></ul><ul><li>7.11 </li></ul>
  12. 12. Challenges in International Sales Promotion, Direct Marketing and e-Commerce (con’t) <ul><li>LEVEL OF ECONOMIC DEVELOPMENT (con’t) </li></ul><ul><li>Newly Industrialized Markets – Better Environment for Promotional Tools – Must be Managed Carefully </li></ul><ul><ul><li>Consumer Income Rises – More Consumer Goods are Introduced and Succeed </li></ul></ul><ul><ul><li>As Media Proliferate, Sales Promotions and Direct Marketing can be Introduced Based on Market-by-Market Assessment </li></ul></ul><ul><ul><li>7.12 </li></ul></ul>
  13. 13. Challenges in International Sales Promotion, Direct Marketing and e-Commerce (con’t) <ul><li>STRUCTURE OF TRADE CHANNELS </li></ul><ul><li>Highly Developed Distribution & Retailing Systems – Trade Channel Members Demand Support or Carry Marketers Brand </li></ul><ul><ul><li>Trade Allowances, Incentives, Point-of-Purchase Displays & Sampling </li></ul></ul><ul><ul><li>Must Have the Means to Handle Coupon Redemption or Premium Distributions </li></ul></ul><ul><li>Less Developed Trade Channels – May Not be Able to Use Traditional Promotional Techniques </li></ul><ul><ul><li>Fragmentation of Trade Channels </li></ul></ul><ul><ul><ul><li>Retailers - No Way of Handling Coupons </li></ul></ul></ul><ul><ul><ul><li>Some Countries So Small May Not be able to Handle Point-of-Purchase </li></ul></ul></ul><ul><ul><li>Trade Show </li></ul></ul><ul><li>7.13 </li></ul>
  14. 14. Challenges in International Sales Promotion, Direct Marketing and e-Commerce (con’t) <ul><ul><li>REGULATIONS </li></ul></ul><ul><ul><li>Regulation of Promotion, Direct Marketing, and </li></ul></ul><ul><ul><li>e-Commerce Varies Widely Market-to-Market </li></ul></ul><ul><ul><ul><li>Most Sales Promotion Tools are Legal Across Europe </li></ul></ul></ul><ul><ul><ul><li>Sweepstakes are Either Heavily Banned or Regulated in All European Markets </li></ul></ul></ul><ul><ul><ul><li>In Japan – Value of Premium Offered with a Product is Limited to 10% of the Value of the Original Price </li></ul></ul></ul><ul><ul><li>7.14 </li></ul></ul>
  15. 15. Promotions in International Markets Must be Researched for Regulation and Legality 7.15
  16. 16. Challenges in International Public Relations <ul><li>COMPANIES HAVE LESS CONTROL OVER GLOBAL PUBLICITY RELATIVE TO DOMESTIC SITUATIONS, AND NO CORPORATIONS ARE POWERFUL ENOUGH TO CONTROL A HOST COUNTRY’S MEDIA </li></ul>7.16
  17. 17. Promotion Agencies Around the World <ul><li>GLOBAL AGENCY </li></ul><ul><li>Will Know Marketer’s Products & Current Promotion Program </li></ul><ul><li>Agency may then Either Adapt Domestic Campaigns or Launch New Ones </li></ul><ul><li>Disadvantage is their Distance from Local Culture. Exporting Meaning is Never Easy </li></ul><ul><li>INTERNATIONAL AFFILIATE </li></ul><ul><li>Set Up as a joint Venture w/Local Agencies </li></ul><ul><li>Join Networks or Take Minority Ownership </li></ul><ul><li>Benefits in this Arrangement </li></ul><ul><li>LOCAL AGENCY </li></ul><ul><li>Knowledgeable about Culture/Local Market </li></ul><ul><li>Have Well-Established Contacts </li></ul><ul><li>One Problem-Less Standardization of Creative Effort </li></ul><ul><li>7.17 </li></ul>
  18. 18. Standardized vs. Promotional Customized Campaigns <ul><li>STANDARDIZED CAMPAIGNS USE SAME APPEAL & CREATIVE EXECUTION ACROSS ALLINTERNATIONAL MARKETS </li></ul><ul><li>CUSTOMIZED CAMPAIGNS INVOLVE PREPARING CREATIVE EXECUTIONS FOR EACH MARKET A FIRM HAS CREATED </li></ul><ul><li>A BRAND IS WELL SUITED FOR A STANDARDIZED CAMPAIGN WHEN: </li></ul><ul><li>Communication Primarily Uses Visual Appeal </li></ul><ul><li>Communication is “Culture-less” </li></ul><ul><li>Brands that are Standardized </li></ul><ul><li>Products have Global Reputation </li></ul><ul><li>7.18 </li></ul>
  19. 19. Certain Product Lend Themselves to Standardized Campaigns 7.19
  20. 20. Standardized vs. Promotional Customized Campaigns (con’t) <ul><li>ENVIRONMENT FOR STANDARDIZED PROMOTION IS MORE FAVORABLE DUE TO: </li></ul><ul><li>Expansion of Global Communications Media </li></ul><ul><li>Emergence of Global Teenager </li></ul><ul><li>Trend Towards Universal Demographic & Lifestyle Trends </li></ul><ul><li>Americanization of Consumption Values </li></ul><ul><li>7.20 </li></ul>
  21. 21. Challenges in Developing & Managing A Global Sales Force <ul><li>DEVELOPING A GLOBAL SALES FORCE CAN BE ACHIEVED WITH: </li></ul><ul><li>Expatriate Personnel </li></ul><ul><li>Local Nationals </li></ul><ul><li>Third Country Nationals </li></ul><ul><li>7.22 </li></ul>
  22. 22. Challenges in Developing & Managing A Global Sales Force <ul><li>MANAGING THE GLOBAL SALES FORCE </li></ul><ul><li>Training </li></ul><ul><ul><li>Expatriate </li></ul></ul><ul><ul><li>Foreign National Personnel </li></ul></ul><ul><ul><li>Training for Foreign Personnel </li></ul></ul><ul><li>Motivation & Compensation </li></ul><ul><ul><li>Companies Must Consider Culture </li></ul></ul><ul><ul><li>Guidelines Include Examining the Way Firms are Compensating People </li></ul></ul><ul><ul><ul><li>High Tax-Rate Countries – Sales Personnel Push for Packages instead of Direct Taxable Income </li></ul></ul></ul><ul><ul><ul><li>E.g., Cost of Living Allowances, Private School Tuition, etc. </li></ul></ul></ul><ul><li>7.23 </li></ul>

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