Integrated Marketing Communication


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Integrated Marketing Communication

  1. 1. INTERNATIONAL MARKETING<br />Youssef Ishak ESL 31D Global Management Track January 2011<br /> <br />Under Supervision of:<br />Prof. Dr. Ahmed A. Shalaby<br />1<br />
  2. 2. Subject: Requirements for global marketing communications resulted in changes in the structure of the global advertising industry. Discuss<br />2<br />
  3. 3. AGENDA<br />Global Perspective: Barbie versus Mulan<br />Sales Promotions in International Markets<br />International Public Relation<br />Integrated Marketing Communication (IMS)<br />International Advertising<br />Advertising Strategy and Goals<br />Global Advertising and the Communication Process <br />Media Planning and Analysis <br />International Control of Advertising: Broader Issues<br />Summary<br />3<br />
  4. 4. Global Perspective: Barbie versus Mulan<br />4<br />
  5. 5. BARBIE<br />Girls didn’t care is Barbie didn’t look like them<br />Designing and marketing one version of Barbie worldwide, this shift has led to a series of massive merchandise.<br />5<br />
  6. 6. MULAN<br />Some toys, games, and animated characters do not cross national boundaries.<br />6<br />
  7. 7. Sales Promotions in International Markets<br />Sales promotions<br />- Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation<br />- Short-term efforts directed to the consumer or retailer to achieve specific objectives<br />In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increased<br />Product sampling<br />7<br />
  8. 8. International Public Relation<br />The role of Public Relations (PR) is <br />Creating good relationships with the popular press and other media to help companies communicate messages to customers, the general public, and governmental regulators.<br />8<br />
  9. 9. Integrated Marketing Communication (IMS)<br />- Advertising<br />- Sales promotions<br />- Trade shows<br />- Personal selling<br />- Direct selling<br />- Public relations<br />• Objective: the successful sale of a product or service<br />9<br />
  10. 10. International Advertising<br />Perform marketing research.<br />Specify the goals of the communication.<br />Develop the most effective message(s) for market segments selected.<br />Select effective media<br />Compose and secure a budget based on what is required to meet goals<br />Execute the campaign.<br />Evaluate the campaign relative to the goals specified. <br />10<br />
  11. 11. Top 10 Global Advertisers ($ millions)<br />Note: Figures are in millions of U.S. dollars and are AA Data Center estimates.<br />11<br />
  12. 12. TOP 10 AD SPENDING BY CATEGORYIn measured media bought in 2006 and 2005<br />Figures are U.S. dollars in millions and represent the top 100 only. All figures are considered AA Data Center estimates.<br />12<br />
  13. 13. GLOBAL MARKETERS: Top 10 Global Marketers by Country – Egypt<br />Pan Arab Research Center<br />Figures are U.S. dollars in millions.<br />13<br />
  14. 14. Advertising Strategy and Goals<br />Marketing problems require careful marketing research and thoughtful and creative advertising campaigns in country, regional, and global markets, respectively.<br />Increased need for more sophisticated advertising strategies.<br />Balance between standardization of advertising themes and customization.<br />Consumer cultures<br />14<br />
  15. 15. Product Attributes and Benefit Segmentation<br />Different cultures usually agree on the benefit of the primary function of a product<br />Other features and psychological attributes of the item can have significant differences<br /> - Cameras<br /> - Yogurt<br />Blue Diamond – assumes that no two markets will react the same, that each has its own set of differences, and that each will require a different marketing approach and strategy<br />15<br />
  16. 16. Regional Segmentation<br />Pan-European communications media highlighting need for more standardized promotional efforts<br />Costs savings with a common theme in uniform promotional packaging and design<br />Legal restrictions slowly being eliminated<br />16<br />
  17. 17. Global Advertising and the CommunicationsProcess<br />If not properly considered, the different cultural contexts can increase the probability of misunderstandings<br />Effective communication demands the existence of a “psychological overlap” between the sender and the receiver<br />It can never be assumed that “if it sells well in one country, it will sell in another”<br />17<br />
  18. 18. The International Communication Process<br />Cultural Context A<br />Message Channel<br />Encoding<br />Advertising Media and/or personal sales force<br />Message Translated into Appropriate Meaning<br />Noise<br />Competitive activities, other salespeople, confusion, and so on<br />Decoding<br />Encoded message interpreted into meaning<br />Information Source<br />Feedback<br />Evaluation of communications process and measure of action by receiver<br />Marketer with a Product<br />Receiver<br />Action by consumer responding to decoded message<br />Cultural Context B<br />18<br />
  19. 19. Legal Constraints<br />Laws that control comparative advertising vary from country to country in Europe.<br />Comparative advertising<br />Advertising of specific products<br />Control of advertising on television<br />Accessibility to broadcast media<br />Limitations on length and number of commercials<br />Internet services<br />Special taxes that apply to advertising<br />19<br />
  20. 20. Linguistic Limitations<br />Language is one of the major barriers to effective communication through advertising<br />Translation challenges<br />Low literacy in many countries<br />Multiple languages within a country<br />20<br />
  21. 21. Cultural Diversity<br />Knowledge of cultural diversity must encompass the total advertising project<br />Existing perceptions based on tradition and heritages are often hard to overcome<br />Subcultures<br />Changing traditions<br />21<br />
  22. 22. Media LimitationsProduction and Cost Limitations<br />Media limitations may diminish the role of advertising in the promotional program<br />Examples of production limitations:<br /> - Poor-quality printing<br /> - Lack of high-grade paper<br />Low-cost reproduction in small markets poses a problem in many countries<br />22<br />
  23. 23. Media Planning and Analysis<br />Availability<br />Cost<br />Coverage<br />Lack of market data<br />Newspapers<br />Magazines<br />Radio and television<br />Satellite and cable TV<br />Direct mail<br />The Internet<br />Other media<br />23<br />
  24. 24. Campaign Execution and Advertising Agencies<br />Managed by advertising agencies<br /> - Local domestic agency<br /> - Company-owned agency<br /> - Multinational agency with local branches<br />Compensation<br /> - Commonly 15 percent throughout the world<br /> - Some companies moving to reward-by-results<br />24<br />
  25. 25. International Control of Advertising: Broader Issues<br />Consumer criticism<br />Deceptive advertising<br />Decency and blatant use of sex<br />Self-regulation<br />Government regulations<br />25<br />
  26. 26. Summary<br />An integrated marketing communications (IMC) program includes coordination among advertising, sales management, public relations, sales promotions, and direct marketing.<br />Currently companies are basing their advertising strategies on national, subcultural, demographic, or other market segments.<br />The major problem facing international advertisers is designing the best messages for each market served.<br />The availability and quality of advertising media vary substantially around the world.<br />Advances in communication technologies are causing dramatic changes in the structure of the international advertising and communications industries.<br />26<br />
  27. 27. 27<br />