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Imm unit-08 (promoting product internationally)

The document discusses factors that influence international marketing communication decisions. It provides examples of how culture, language, and education can impact whether communication strategies and messages need to be standardized or adapted for different global markets. Culture is a major factor, as messages that work well domestically may be misunderstood abroad due to differences in cultural norms and traditions. Language translation errors can also undermine communication if the translated text conveys an unintended meaning. Education levels affect the appropriate tools and content, as markets with lower literacy may respond better to visual versus written messages. Standardizing communication ignores these important factors that shape customer understanding in global contexts.

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07/06/10 1 By : Prof. Amit Kumar
07/06/10 2 International marketing has become a major concern for business schools to develop global strategies to lead and sustain in the much expanded and competitive arena. Liberalization thus catalyzing market competition, poses challenge for the managers in handling the rigors of expanding global marketplace. Syllabus aims at providing contemporary knowledge & skills on issues of global marketing management. IILM-GSM Importance of this course Global Marketing Management
07/06/10 3 Course: Global Marketing Management 1. Framework of Global Marketing Management 2. Global Marketing Research 3. Decision Making in International Marketing 4. Foreign Market Entry & Export Marketing 5. Product Planning & Development 6. Global Pricing Strategies 7. Global Distribution System 8. Promoting Product Internationally IILM-GSM Global Marketing Management
07/06/10 4 IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 5 Contents • International Marketing Communication Mix • Consumer Response Hierarchy Models • Process of International Marketing Communication • Marketing Communication Strategy • Factors influencing International Communication Decision • Major Tools for International marketing communication  Advertising (Standardization Vs Adaptation)  Sales Promotion  Personal Selling • Framework for International Product-Promotion Strategies IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 6 Introduction • Effective communication is crucial to a firm’s success in international markets. • In marketing terms, it is also referred to as the fourth P (Promotion) of the marketing mix. Firms convey a set of messages to the target customers through a communication channel with the objective to not only create favorable response for its market offering but also to receive market feedback on a regular basis. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 7 International Marketing Communication Mix IILM-GSM Global Marketing Management Promoting Product Internationally Customer Sales PromotionAdvertising Public Relation Direct and Interactive Marketing Personal Selling
07/05/10 8 • Advertising is a paid form of communication carried out through newspapers, magazines, radio, television and other mass media by an identified sponsor. • Sales promotion comprises short-term marketing measures which stimulate quick buyer’s action and result in immediate sale of the product. • As a part of its image building exercise, a firm invests in public relations. It may include sponsorship of sports and cultural events, press release and even lobbying at government level. • Direct marketing wherein a firm has direct interaction with the customers. • Personal selling involves direct selling by firm’s sales force and is considered to be a two-way method of marketing communication, which helps in building strong customer relationships. IILM-GSM Global Marketing Management Promoting Product Internationally International Marketing Communication Mix
07/05/10 9 Communication mix for international market is influenced by the following factors: • Market Size • Cost of promotional activity • Resource availability, especially finance • Media availability • Type of product and its price sensitivity • Mode of entry into international market • Market characteristics IILM-GSM Global Marketing Management Promoting Product Internationally International Marketing Communication Mix
07/05/10 10 Consumer Response Hierarchy Models AIDA Model • In this approach the main objective of the firm is to make the customers aware of the product and seek their attention through effective marketing communication, such as effective advertising. • The awareness would, in turn, generate interest about the product in the consumer followed by the desire to own. IILM-GSM Global Marketing Management Promoting Product Internationally Attention Interest Desire Action
07/05/10 11 Consumer Response Hierarchy Models Innovation-Adaptation Model • Developed by Rogers, especially in reference to a new product. • An this model, a firm first creates awareness and generates interest before the customer gets a chance to evaluate it first hand. • The firm gives a final trail to the new product before it is actually adopted by the customers. IILM-GSM Global Marketing Management Promoting Product Internationally Awareness Interest Evaluation Trail Adoption
07/05/10 12 Marketing Communication Strategies Push Strategy IILM-GSM Global Marketing Management Promoting Product Internationally Firm Channel Intermediary End Customer Marketing Communication Product Push Marketing Communication Product Push • In push strategy, the promotional program is primarily directed at the market intermediaries in the distribution system. It aims to motivate the market intermediaries to stock, promote and sell the products to the ultimate customer. • The tools used in this strategy include personal selling, sales promotion and trade shows.
07/05/10 13 Marketing Communication Strategies Push Strategy IILM-GSM Global Marketing Management Promoting Product Internationally Push strategy is usually found to be more effective under the following situations: • Lack of product differentiation • Weak brand identity • Low brand loyalty • Difficulty in appreciating product benefits • Industrial sales • Lack of access to advertising media • Low promotional budget • Short and direct marketing channels • Low wages (cost of employing salespersons is lower than the advertising cost)
07/05/10 14 Marketing Communication Strategies Pull Strategy IILM-GSM Global Marketing Management Promoting Product Internationally Firm Channel Intermediary End Customer • The process of motivating the customers to buy the product from the retailers through promotional programmes. • A retailer asks for a product from a wholesaler and the wholesaler asks for the product from a distributor who gets the product from the firm. Marketing Communication Product request Product request
07/05/10 15 Marketing Communication Strategies Pull Strategy IILM-GSM Global Marketing Management Promoting Product Internationally Pull strategy is more effective in the following situations: • Perceived product differentiation • Strong brand identity • High brand loyalty • High-involvement product category • High promotional budgets The techniques used full pull strategy include advertising and sales promotion campaigns directed at consumers, such as discounts, gift vouchers, samples etc. In retail outlets where self-service is predominant, pull strategy is more effective.
07/05/10 16 Factor Influencing International Communication Decisions 1. Culture 2. Languages 3. Education 4. Media Infrastructure 5. Government Regulation IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 17 Factor Influencing International Communication Decisions Culture • Parker Pen Company successfully used the slogan ‘Avoid Embarrassment- Use Quink’ in the US. The product was marketed in Latin America with the Spanish translation ‘Evite Embarazos -Use Quink’ of the above slogan that unintentionally meant ‘Avoid Pregnancy-use Quink’ resulting in an embarrassment for the company. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 18 Factor Influencing International Communication Decisions Culture • P & G showed an animated stork delivering Pampers diapers in its ad campaigns in the US. The same ad copy was used in Japan, only the language was changed. However, this ad did not work in Japan. The subsequent market research revealed that, unlike the Western folklore, storks, according to the Japanese folklore, are not expected to deliver babies. • On the contrary, Japanese people believed that it is the giant peaches that float on the river that bring babies to the deserving parents. Subsequently, P&G changed the theme of the ad campaign to ‘expert mom’, a nurse who is also a mother theme. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 19 Factor Influencing International Communication Decisions Culture • Muhammad Ali is immensely popular in the Middle east. One of the car manufacturers used Muhammad Ali in its ad campaign for the region. The ad theme was, ’I am greatest’. The ad backfired and offended the Muslims who regard only the God as great. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 20 Factor Influencing International Communication Decisions Language The word ‘yes’ is understood differently in different countries. • In low-context societies, such as the USA and Europe, ‘yes’ means ‘yes’. • But in high-context societies such as Japan, ‘yes’ means ‘I am listening to what you are saying’ and it does not necessarily mean ‘yes’. • In Thailand, ‘yes’ means ‘OK’. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 21 Factor Influencing International Communication Decisions Language • Pepsi used the German translation of the slogan ‘come alive with Pepsi’ in its ad campaign in west Germany. However, the slogan when translated to German actually meant ‘come out of the grave with Pepsi’ and failed to generate any market response from the customers. • General Motor translated its slogan ‘Body by Fischer’ to ‘Corps by Fischer’ in Belgium that offended the Belgian customers. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 22 Factor Influencing International Communication Decisions Education • Literacy plays an important role in deciding what communication tool and message should be used in international market. • Market segments with low level of adult literacy need to be addressed by way of more audio-visual content rather than a written message. • It should be ensured that the visuals convey the desired message rather than the text part of the communication. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 23 Factor Influencing International Communication Decisions Media Infrastructure • Availability of media, that varies widely, often influences the advertisers options for using a particular medium. • A cross country comparison of the share of advertising expenditure on various mediums of communication is given: IILM-GSM Global Marketing Management Promoting Product Internationally Print TV Radio Others Total India 53 38 2 8 100 China 40 43 4 13 100 Mexico 28 57 15 0 100 Thailand 32 55 9 4 100 US 46 37 14 4 100 UK 59 29 5 7 100
07/05/10 24 Factor Influencing International Communication Decisions Government Regulation The government regulations in various countries relate to the following issues: • Advertising in foreign language • Use of pornography and sensuality • Comparative advertising referring to the competing products from rival firms • Advertising related to alcohol and tobacco • Use of children as models • Advertising related to health food and pharmaceuticals IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 25 Factor Influencing International Communication Decisions Government Regulation In Malaysia, the Ministry of Information’s advertising code states that women should not be the principal object of an advertisement and should not be used to attract sales unless the advertised product is relevant to women. Use of foreign words and expressions when French equivalents can be used are prohibited in France. Most Arab countries prohibit explicit depiction of sensuality. The Ministry of Saudi Arabia prohibits any advertising depicting unveiled women. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 26 Advertising (Standardization Vs Adaptation) An international advertising firm may opt for a standardize advertising strategy or may customize it depending upon the needs of various markets. • The arguments in favor of standardized advertising campaign include economy of scale and uniform projection of a firm’s image in global markets. • The adaptation of advertising may be either due to mandatory reasons such as regulatory framework or due to competitive market response. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 27 Advertising (Standardization) Using the same advertising strategy across the country is termed as standardization. However, the extent or degree of standardization varies. • Ad with no change • Ad with changes in illustration IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 28 Advertising (Standardization) Ad with no change • Some ad is used with no change in theme, copy or illustration except for translation. Benetton Group, the Italy-based global clothing retailer, uses global advertising campaign with the same theme, ‘The United Colors of Benetton’. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 29 Advertising (Standardization) Ad with change in illustration • When ads use different models, generally local models, for different countries but maintain the same ad copy and theme, also considered as standardized advertising. Virginia Slims, the worldwide market leader in women’s cigarette, initiated a worldwide campaign in which it is used local models in different countries. IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 30 Advertising (Standardization) Universal appeals in international advertising are used in following situations: • Superior Quality (BMW uses the slogan ‘ultimate driving machine’ worldwide) • New Product/Service (Microsoft used sprinkler approach) • Country of Origin (Brands which have a strong country stereotype, emphasize on ‘made in …’) • Celebrities (celebrities with universal appeal are engaged in global product, Swiss watchmaker SMH promoted its Omega brand with actor Pierce Brosnan after the release of James Bond movie Golden Eye) IILM-GSM Global Marketing Management Promoting Product Internationally
07/05/10 Benefits of Advertising: Study be Nielson In 2008, Nielson – a consulting firm, conducted a global study covering 25000 consumers spread over 50 countries across the globe. The objective of the survey was to provide a better understanding of consumer perceptions of the benefits of advertising. IILM-GSM Global Marketing Management Promoting Product Internationally 31
07/05/10 Benefits of Advertising: Study be Nielson IILM-GSM Global Marketing Management Promoting Product Internationally Benefits Global India Advertising stimulates competition, which leads to better products and lower prices Agree Disagree 68% 27% 81% 17% Advertising contributes to the growth of the economy Agree Disagree 72% 20% 77% 18% Advertising provides useful information on important issues in society, as safety & health Agree Disagree 63% 30% 80% 17% Advertising often gets one’s attention and is entertaining Agree Disagree 66% 29% 87% 10% Advertising is important to fund sporting events, art exhibitions and cultural events Agree Disagree 81% 13% 88% 10% By helping companies succeed, advertising creates jobs in those companies Agree Disagree 80% 14% 85% 10% 32
07/05/10 Personal Selling The cost of personal selling can be very high. One extreme case is the German software maker SAP, the world’s leader in applications packages for client-server networks. In the US, SAP America has removed the $140,000 annual limit on sales commission, making it possible for a salesperson to earn as much as $2 million a year- more than what the company’s top German executive make. IILM-GSM Global Marketing Management Promoting Product Internationally 33
07/05/10 Sales Promotion Sales promotion activities are constrained by local laws that may not permit premiums or free gifts to be given. Laws in some countries control the amount of discount given at retail, others require permits for all sales promotions. Belgium prohibits sweepstakes and, in Greece coupling is illegal. Export promotion by Govt. of India, cover several areas such as production, quality control, export credit and finance, and export incentives and assistance. IILM-GSM Global Marketing Management Promoting Product Internationally 34
07/05/10 35 Product-Promotion Strategy for International Markets IILM-GSM Straight extension Dual adaptation Product adaptation Promotion adaptation Don’t Change Promotion Product Promotion Adapt Promotion Don’t Change Product Adapt Product Develop New Product Product Invention Global Marketing Management Promoting Product Internationally
07/05/10 36 Straight Extension: • In countries where the product performs the same function or satisfies the same needs and the conditions of the product use are same, the straight or dual extension strategy is used. • The soft drink firm Coke and Levers for its Lux brand of soaps use the straight extension strategy in international markets. The same product is used with minor customization in marketing communication. • The leading beer firm Heineken uses a standardized product and promotional approach the world over to maintain and communicate the uniform product quality of premium beer. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
07/05/10 37 Promotion Adaptation: • In countries where the product performs the different function or satisfies the different needs but the conditions of the product use are same, the promotion adaptation- product extension strategy is used. • Bicycles are cost-effective and affordable means of transport for the rural population in low-income countries, whereas it is the means for recreation and healthcare in high-income countries. • In low-income countries sewing machines are generally perceived as a means to economize the household expenditure on stitching, and are widely gifted in rural areas as a utility item, whereas in high-income countries, sewing machines are considered to be a recreational item. • IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
07/05/10 38 Promotion Adaptation: • In countries where the product performs the different function or satisfies the different needs but the conditions of the product use are same, the promotion adaptation- product extension strategy is used. • In India, chewing gum is viewed primarily as children’s product whereas it is considered to be a substitute to smoking in the US. It is supposed to provide dental benefits in Europe while considered beneficial for facial fitness in Far Eastern countries. • Under such situations, no changes are made in the product whereas the promotional strategy is customized so as to address customers’ needs. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
07/05/10 39 Product Adaptation: • In countries where the conditions of the product use are different but product performs the same function or satisfies the same needs, the product adaptation-promotion extension strategy is used. • The differences in electric voltage require product modifications in electrical appliances marketed in countries like India and the US. Under such situations, the promotional strategy remains the same but the product modification is made depending upon the customers’ need in different markets. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
07/05/10 40 Product Adaptation: Around the world detergent is primarily used for washing and clearing cloths. Nevertheless, the washing habits of the people vary widely in various markets. Indian housewives use lukewarm water whereas the French wash their cloths in scalding hot water and the Australian use cold water. Indian and the French generally use top-loading washing machines while most Europeans use front-loading washing machines. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
07/05/10 41 Dual Adaptation: • In countries where the functions of a product and the need satisfied are different and the conditions of the product use are also different, a firm has to customize both the product and the promotional strategies. Clothing in the low-income countries serves the basic purpose of physical protection whereas in high-income countries or even in urban centers of medium and low-income countries it symbolizes the personality and status of the user. Therefore, a firm has to customize both product and its promotion. • IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
07/05/10 42 Product Invention: • In case of product adaptation and the consumers do not posses the necessary ability to pay for the product, new product invention and development of new marketing communication is required. • In the rural areas in Africa, Asia and Latin America, the buying power of the people is limited. Therefore, firms have to develop technologies suitable to the target markets. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
07/05/10 43 Product Invention: The conditions in Africa necessitated the firms developing hand-powered washing machines for African markets. Philips India introduced a hand wound radio in 2003, primarily to address the needs of rural India where the electrical supply is erratic and constant use of batteries makes the radio expensive. The product has done exceeding well in rural markets. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets

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Imm unit-08 (promoting product internationally)

  • 1.
  • 2.
    07/06/10 2 International marketinghas become a major concern for business schools to develop global strategies to lead and sustain in the much expanded and competitive arena. Liberalization thus catalyzing market competition, poses challenge for the managers in handling the rigors of expanding global marketplace. Syllabus aims at providing contemporary knowledge & skills on issues of global marketing management. IILM-GSM Importance of this course Global Marketing Management
  • 3.
    07/06/10 3 Course: GlobalMarketing Management 1. Framework of Global Marketing Management 2. Global Marketing Research 3. Decision Making in International Marketing 4. Foreign Market Entry & Export Marketing 5. Product Planning & Development 6. Global Pricing Strategies 7. Global Distribution System 8. Promoting Product Internationally IILM-GSM Global Marketing Management
  • 4.
    07/06/10 4 IILM-GSM Global MarketingManagement Promoting Product Internationally
  • 5.
    07/05/10 5 Contents • InternationalMarketing Communication Mix • Consumer Response Hierarchy Models • Process of International Marketing Communication • Marketing Communication Strategy • Factors influencing International Communication Decision • Major Tools for International marketing communication  Advertising (Standardization Vs Adaptation)  Sales Promotion  Personal Selling • Framework for International Product-Promotion Strategies IILM-GSM Global Marketing Management Promoting Product Internationally
  • 6.
    07/05/10 6 Introduction • Effectivecommunication is crucial to a firm’s success in international markets. • In marketing terms, it is also referred to as the fourth P (Promotion) of the marketing mix. Firms convey a set of messages to the target customers through a communication channel with the objective to not only create favorable response for its market offering but also to receive market feedback on a regular basis. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 7.
    07/05/10 7 International MarketingCommunication Mix IILM-GSM Global Marketing Management Promoting Product Internationally Customer Sales PromotionAdvertising Public Relation Direct and Interactive Marketing Personal Selling
  • 8.
    07/05/10 8 • Advertisingis a paid form of communication carried out through newspapers, magazines, radio, television and other mass media by an identified sponsor. • Sales promotion comprises short-term marketing measures which stimulate quick buyer’s action and result in immediate sale of the product. • As a part of its image building exercise, a firm invests in public relations. It may include sponsorship of sports and cultural events, press release and even lobbying at government level. • Direct marketing wherein a firm has direct interaction with the customers. • Personal selling involves direct selling by firm’s sales force and is considered to be a two-way method of marketing communication, which helps in building strong customer relationships. IILM-GSM Global Marketing Management Promoting Product Internationally International Marketing Communication Mix
  • 9.
    07/05/10 9 Communication mixfor international market is influenced by the following factors: • Market Size • Cost of promotional activity • Resource availability, especially finance • Media availability • Type of product and its price sensitivity • Mode of entry into international market • Market characteristics IILM-GSM Global Marketing Management Promoting Product Internationally International Marketing Communication Mix
  • 10.
    07/05/10 10 Consumer ResponseHierarchy Models AIDA Model • In this approach the main objective of the firm is to make the customers aware of the product and seek their attention through effective marketing communication, such as effective advertising. • The awareness would, in turn, generate interest about the product in the consumer followed by the desire to own. IILM-GSM Global Marketing Management Promoting Product Internationally Attention Interest Desire Action
  • 11.
    07/05/10 11 Consumer ResponseHierarchy Models Innovation-Adaptation Model • Developed by Rogers, especially in reference to a new product. • An this model, a firm first creates awareness and generates interest before the customer gets a chance to evaluate it first hand. • The firm gives a final trail to the new product before it is actually adopted by the customers. IILM-GSM Global Marketing Management Promoting Product Internationally Awareness Interest Evaluation Trail Adoption
  • 12.
    07/05/10 12 Marketing CommunicationStrategies Push Strategy IILM-GSM Global Marketing Management Promoting Product Internationally Firm Channel Intermediary End Customer Marketing Communication Product Push Marketing Communication Product Push • In push strategy, the promotional program is primarily directed at the market intermediaries in the distribution system. It aims to motivate the market intermediaries to stock, promote and sell the products to the ultimate customer. • The tools used in this strategy include personal selling, sales promotion and trade shows.
  • 13.
    07/05/10 13 Marketing CommunicationStrategies Push Strategy IILM-GSM Global Marketing Management Promoting Product Internationally Push strategy is usually found to be more effective under the following situations: • Lack of product differentiation • Weak brand identity • Low brand loyalty • Difficulty in appreciating product benefits • Industrial sales • Lack of access to advertising media • Low promotional budget • Short and direct marketing channels • Low wages (cost of employing salespersons is lower than the advertising cost)
  • 14.
    07/05/10 14 Marketing CommunicationStrategies Pull Strategy IILM-GSM Global Marketing Management Promoting Product Internationally Firm Channel Intermediary End Customer • The process of motivating the customers to buy the product from the retailers through promotional programmes. • A retailer asks for a product from a wholesaler and the wholesaler asks for the product from a distributor who gets the product from the firm. Marketing Communication Product request Product request
  • 15.
    07/05/10 15 Marketing CommunicationStrategies Pull Strategy IILM-GSM Global Marketing Management Promoting Product Internationally Pull strategy is more effective in the following situations: • Perceived product differentiation • Strong brand identity • High brand loyalty • High-involvement product category • High promotional budgets The techniques used full pull strategy include advertising and sales promotion campaigns directed at consumers, such as discounts, gift vouchers, samples etc. In retail outlets where self-service is predominant, pull strategy is more effective.
  • 16.
    07/05/10 16 Factor InfluencingInternational Communication Decisions 1. Culture 2. Languages 3. Education 4. Media Infrastructure 5. Government Regulation IILM-GSM Global Marketing Management Promoting Product Internationally
  • 17.
    07/05/10 17 Factor InfluencingInternational Communication Decisions Culture • Parker Pen Company successfully used the slogan ‘Avoid Embarrassment- Use Quink’ in the US. The product was marketed in Latin America with the Spanish translation ‘Evite Embarazos -Use Quink’ of the above slogan that unintentionally meant ‘Avoid Pregnancy-use Quink’ resulting in an embarrassment for the company. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 18.
    07/05/10 18 Factor InfluencingInternational Communication Decisions Culture • P & G showed an animated stork delivering Pampers diapers in its ad campaigns in the US. The same ad copy was used in Japan, only the language was changed. However, this ad did not work in Japan. The subsequent market research revealed that, unlike the Western folklore, storks, according to the Japanese folklore, are not expected to deliver babies. • On the contrary, Japanese people believed that it is the giant peaches that float on the river that bring babies to the deserving parents. Subsequently, P&G changed the theme of the ad campaign to ‘expert mom’, a nurse who is also a mother theme. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 19.
    07/05/10 19 Factor InfluencingInternational Communication Decisions Culture • Muhammad Ali is immensely popular in the Middle east. One of the car manufacturers used Muhammad Ali in its ad campaign for the region. The ad theme was, ’I am greatest’. The ad backfired and offended the Muslims who regard only the God as great. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 20.
    07/05/10 20 Factor InfluencingInternational Communication Decisions Language The word ‘yes’ is understood differently in different countries. • In low-context societies, such as the USA and Europe, ‘yes’ means ‘yes’. • But in high-context societies such as Japan, ‘yes’ means ‘I am listening to what you are saying’ and it does not necessarily mean ‘yes’. • In Thailand, ‘yes’ means ‘OK’. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 21.
    07/05/10 21 Factor InfluencingInternational Communication Decisions Language • Pepsi used the German translation of the slogan ‘come alive with Pepsi’ in its ad campaign in west Germany. However, the slogan when translated to German actually meant ‘come out of the grave with Pepsi’ and failed to generate any market response from the customers. • General Motor translated its slogan ‘Body by Fischer’ to ‘Corps by Fischer’ in Belgium that offended the Belgian customers. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 22.
    07/05/10 22 Factor InfluencingInternational Communication Decisions Education • Literacy plays an important role in deciding what communication tool and message should be used in international market. • Market segments with low level of adult literacy need to be addressed by way of more audio-visual content rather than a written message. • It should be ensured that the visuals convey the desired message rather than the text part of the communication. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 23.
    07/05/10 23 Factor InfluencingInternational Communication Decisions Media Infrastructure • Availability of media, that varies widely, often influences the advertisers options for using a particular medium. • A cross country comparison of the share of advertising expenditure on various mediums of communication is given: IILM-GSM Global Marketing Management Promoting Product Internationally Print TV Radio Others Total India 53 38 2 8 100 China 40 43 4 13 100 Mexico 28 57 15 0 100 Thailand 32 55 9 4 100 US 46 37 14 4 100 UK 59 29 5 7 100
  • 24.
    07/05/10 24 Factor InfluencingInternational Communication Decisions Government Regulation The government regulations in various countries relate to the following issues: • Advertising in foreign language • Use of pornography and sensuality • Comparative advertising referring to the competing products from rival firms • Advertising related to alcohol and tobacco • Use of children as models • Advertising related to health food and pharmaceuticals IILM-GSM Global Marketing Management Promoting Product Internationally
  • 25.
    07/05/10 25 Factor InfluencingInternational Communication Decisions Government Regulation In Malaysia, the Ministry of Information’s advertising code states that women should not be the principal object of an advertisement and should not be used to attract sales unless the advertised product is relevant to women. Use of foreign words and expressions when French equivalents can be used are prohibited in France. Most Arab countries prohibit explicit depiction of sensuality. The Ministry of Saudi Arabia prohibits any advertising depicting unveiled women. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 26.
    07/05/10 26 Advertising (StandardizationVs Adaptation) An international advertising firm may opt for a standardize advertising strategy or may customize it depending upon the needs of various markets. • The arguments in favor of standardized advertising campaign include economy of scale and uniform projection of a firm’s image in global markets. • The adaptation of advertising may be either due to mandatory reasons such as regulatory framework or due to competitive market response. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 27.
    07/05/10 27 Advertising (Standardization) Usingthe same advertising strategy across the country is termed as standardization. However, the extent or degree of standardization varies. • Ad with no change • Ad with changes in illustration IILM-GSM Global Marketing Management Promoting Product Internationally
  • 28.
    07/05/10 28 Advertising (Standardization) Adwith no change • Some ad is used with no change in theme, copy or illustration except for translation. Benetton Group, the Italy-based global clothing retailer, uses global advertising campaign with the same theme, ‘The United Colors of Benetton’. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 29.
    07/05/10 29 Advertising (Standardization) Adwith change in illustration • When ads use different models, generally local models, for different countries but maintain the same ad copy and theme, also considered as standardized advertising. Virginia Slims, the worldwide market leader in women’s cigarette, initiated a worldwide campaign in which it is used local models in different countries. IILM-GSM Global Marketing Management Promoting Product Internationally
  • 30.
    07/05/10 30 Advertising (Standardization) Universalappeals in international advertising are used in following situations: • Superior Quality (BMW uses the slogan ‘ultimate driving machine’ worldwide) • New Product/Service (Microsoft used sprinkler approach) • Country of Origin (Brands which have a strong country stereotype, emphasize on ‘made in …’) • Celebrities (celebrities with universal appeal are engaged in global product, Swiss watchmaker SMH promoted its Omega brand with actor Pierce Brosnan after the release of James Bond movie Golden Eye) IILM-GSM Global Marketing Management Promoting Product Internationally
  • 31.
    07/05/10 Benefits of Advertising:Study be Nielson In 2008, Nielson – a consulting firm, conducted a global study covering 25000 consumers spread over 50 countries across the globe. The objective of the survey was to provide a better understanding of consumer perceptions of the benefits of advertising. IILM-GSM Global Marketing Management Promoting Product Internationally 31
  • 32.
    07/05/10 Benefits of Advertising:Study be Nielson IILM-GSM Global Marketing Management Promoting Product Internationally Benefits Global India Advertising stimulates competition, which leads to better products and lower prices Agree Disagree 68% 27% 81% 17% Advertising contributes to the growth of the economy Agree Disagree 72% 20% 77% 18% Advertising provides useful information on important issues in society, as safety & health Agree Disagree 63% 30% 80% 17% Advertising often gets one’s attention and is entertaining Agree Disagree 66% 29% 87% 10% Advertising is important to fund sporting events, art exhibitions and cultural events Agree Disagree 81% 13% 88% 10% By helping companies succeed, advertising creates jobs in those companies Agree Disagree 80% 14% 85% 10% 32
  • 33.
    07/05/10 Personal Selling The costof personal selling can be very high. One extreme case is the German software maker SAP, the world’s leader in applications packages for client-server networks. In the US, SAP America has removed the $140,000 annual limit on sales commission, making it possible for a salesperson to earn as much as $2 million a year- more than what the company’s top German executive make. IILM-GSM Global Marketing Management Promoting Product Internationally 33
  • 34.
    07/05/10 Sales Promotion Sales promotionactivities are constrained by local laws that may not permit premiums or free gifts to be given. Laws in some countries control the amount of discount given at retail, others require permits for all sales promotions. Belgium prohibits sweepstakes and, in Greece coupling is illegal. Export promotion by Govt. of India, cover several areas such as production, quality control, export credit and finance, and export incentives and assistance. IILM-GSM Global Marketing Management Promoting Product Internationally 34
  • 35.
    07/05/10 35 Product-Promotion Strategyfor International Markets IILM-GSM Straight extension Dual adaptation Product adaptation Promotion adaptation Don’t Change Promotion Product Promotion Adapt Promotion Don’t Change Product Adapt Product Develop New Product Product Invention Global Marketing Management Promoting Product Internationally
  • 36.
    07/05/10 36 Straight Extension: •In countries where the product performs the same function or satisfies the same needs and the conditions of the product use are same, the straight or dual extension strategy is used. • The soft drink firm Coke and Levers for its Lux brand of soaps use the straight extension strategy in international markets. The same product is used with minor customization in marketing communication. • The leading beer firm Heineken uses a standardized product and promotional approach the world over to maintain and communicate the uniform product quality of premium beer. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
  • 37.
    07/05/10 37 Promotion Adaptation: •In countries where the product performs the different function or satisfies the different needs but the conditions of the product use are same, the promotion adaptation- product extension strategy is used. • Bicycles are cost-effective and affordable means of transport for the rural population in low-income countries, whereas it is the means for recreation and healthcare in high-income countries. • In low-income countries sewing machines are generally perceived as a means to economize the household expenditure on stitching, and are widely gifted in rural areas as a utility item, whereas in high-income countries, sewing machines are considered to be a recreational item. • IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
  • 38.
    07/05/10 38 Promotion Adaptation: •In countries where the product performs the different function or satisfies the different needs but the conditions of the product use are same, the promotion adaptation- product extension strategy is used. • In India, chewing gum is viewed primarily as children’s product whereas it is considered to be a substitute to smoking in the US. It is supposed to provide dental benefits in Europe while considered beneficial for facial fitness in Far Eastern countries. • Under such situations, no changes are made in the product whereas the promotional strategy is customized so as to address customers’ needs. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
  • 39.
    07/05/10 39 Product Adaptation: •In countries where the conditions of the product use are different but product performs the same function or satisfies the same needs, the product adaptation-promotion extension strategy is used. • The differences in electric voltage require product modifications in electrical appliances marketed in countries like India and the US. Under such situations, the promotional strategy remains the same but the product modification is made depending upon the customers’ need in different markets. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
  • 40.
    07/05/10 40 Product Adaptation: Aroundthe world detergent is primarily used for washing and clearing cloths. Nevertheless, the washing habits of the people vary widely in various markets. Indian housewives use lukewarm water whereas the French wash their cloths in scalding hot water and the Australian use cold water. Indian and the French generally use top-loading washing machines while most Europeans use front-loading washing machines. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
  • 41.
    07/05/10 41 Dual Adaptation: •In countries where the functions of a product and the need satisfied are different and the conditions of the product use are also different, a firm has to customize both the product and the promotional strategies. Clothing in the low-income countries serves the basic purpose of physical protection whereas in high-income countries or even in urban centers of medium and low-income countries it symbolizes the personality and status of the user. Therefore, a firm has to customize both product and its promotion. • IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
  • 42.
    07/05/10 42 Product Invention: •In case of product adaptation and the consumers do not posses the necessary ability to pay for the product, new product invention and development of new marketing communication is required. • In the rural areas in Africa, Asia and Latin America, the buying power of the people is limited. Therefore, firms have to develop technologies suitable to the target markets. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets
  • 43.
    07/05/10 43 Product Invention: Theconditions in Africa necessitated the firms developing hand-powered washing machines for African markets. Philips India introduced a hand wound radio in 2003, primarily to address the needs of rural India where the electrical supply is erratic and constant use of batteries makes the radio expensive. The product has done exceeding well in rural markets. IILM-GSM Global Marketing Management Promoting Product Internationally Product-Promotion Strategy for International Markets

Editor's Notes

  • #3 To arm or prepare in advance of a conflict The part of the arm between the wrist and the elbow.
  • #6 tools are like a communication mix
  • #8 Marketing communication mix involves advertising, salsepromotion and all
  • #9 Salse promotion includes rebates, price discounts, firm’s catalogues and brochures, samples, coupons and gifts… We will go in details about all above mix..starting with aadvertising ..personal selling and personal selling ..later on
  • #10 Market characteristics..like competition, demand, inflation etc
  • #18 Unintended message: pictured were soiled clothes on the left, soap in the middle, clean cloths on the right. This is fine unless you read from the right to left. Then the ad seems to say: take clean cloths, use our soap and they will be soiled.
  • #19 Folklore consists of history, jokes,music , legands,proverbs, popular beliefs, fairy tales and customs that are the tradition of any culture. Peach as a tree…
  • #20 He is american born world famous boxer
  • #21 High context society is relationals..collectivism..group and family orientation
  • #22 Grave is the location where the dead bodies human or animals are buries.. Fisher Body is an automobile coachbuilder (making body of the auto and cars by company Fischer now with GM)..founded by the Fisher brothers in 1908 in Detroit, Michigan, which is now an operating division of General Motors ... Meaning of corps.. Fireteam · Squad · Section · Platoon · Troop/Company/Battery · Battalion/ Squadron · Regiment · Brigade · Division · Corps · Field army · Army group
  • #24 Data 2004…
  • #26 Explicit..fully and clearly defined/expressed or articulated Unveiled..to take off…to remove the cloth in a sence here
  • #27 As we have seen in the case of product….we have mandatory factor and voluntry factor in adaptation
  • #28 An illustration is a displayed visualization form presented as a drawing, painting, photograph or other work of art that is created to elucidate or dictate
  • #29 However, benetton’s ad has shocking photos to attract public attention on global isses related to environment, terrorism, racism and HIV..Benetton however, is keen on continuing with its shock advertising campaign as long as the ad manages to create and sustain the interest of the customers.
  • #30 Philips Morris also positioned Marlboro as a women cigarette…also example of LUX in asian countries.. This is also the same case as adaptation at low level or low degree of adaptation
  • #31 S Q…the promise of superior quality may be used universally. New Product/S…while launching window 95, 2000..vista Celebraties..like Tendulkar in Coke….Switch
  • #32 Finding are : as in the next slide
  • #34 One good approach in personal selling is to hire local sales representative who knows local culture, norms and customs…
  • #35 Export promotion tools are…samples, coupons, price offs, prizes, warranties, demonstratoion, sweepstakes, games, money refund offers and trading stamps..firms offer sales promotion to enhace the sell.. In any CRM three modiules..Campaign managent CMA-Application, Sales realted SFA and After sales services ASS..the role of SFAutomation module is to enchanece the sell and increase the revenue Sez..special economic zones..in order to promote export activity from india..we have export promotion council of India…EPCI..but check it on internet .not sure now
  • #38 Hait cutting examples in europe as same
  • #40 Kellog came with corn flke in india
  • #41 Kellog came with corn flke in india
  • #43 Just an extension of product adaptation..but since product is costly after customization..people in low income country not willing tp pay..so new product innovation strategy is being used…..with new marketing communication is required.