communication decisions for international markets-10.02
TRANSCRIPT
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Communication
Decisions forInternational Markets
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Firms convey a set of messages to targetcustomers through a communication channel withthe objective to not only create a favourable
response for its market offerings but also toreceive market feedback on a regular basis
The marketing communication mix involvesadvertising, sales promotion, public relation,
personal selling, and direct and inter-activemarketing, as depicted in Figure 1
A firm generally uses a mix of all these promotiontools after considering the firms strategy and
marketing requirements Advertising is a paid form of communicationcarried out through newspapers, magazines, radio,television, and other mass media by an identifiedsponsor
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Besides, it is also a non-personal form ofcommunication
Sales promotion comprises short-term marketing
measures which stimulate quick buyers action andresult in immediate sale of the product
It includes rebates and price discounts, firmscatalogues and brochures, samples, coupons, and
gifts As a part of its image-building exercise, a firm
invests in public relations
It may include sponsorship of sports and cultural
events, press releases, and even lobbying atgovernment level
Direct marketing is also an effective marketingcommunication tool wherein a firm has direct
inter-action with the customers
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Personal selling involves direct selling by firmssales force and is considered to be a two-waymethod of marketing communication, which helps
in building strong customer relationships.
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Advertising Salespromotion
Personal Public
selling relations
Direct and
Inter-activemarketing
Customer
Figure 1, International Marketing Communication Mix
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Communication mix for an international market isinfluenced by the following factors:
Market size
Cost of promotional activity
Resource availability, especially finances
Media availability
Type of product and its price sensitivity
Mode of entry into international market
Market characteristics.
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Consumer Response HierarchyModels
The objective of any marketingcommunication strategy is to induce thetarget customer segment to buy the product
This can be achieved by conveying someaspect of the product to the consumers
The conveyed message is expected tochange the customers attitude towards the
product and make them buy it These response stages are known ascognitive, affective, and behavioural stages,respectively
Figure 2 depicts two such widely usedhierarchy models.
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Attention
Interest
Desire
Action
Awareness
Interest
Evaluation
Trial
AdoptionAIDA Model
Innovation-Adoption Model
Figure 2, Consumer Response Hierarchy Models
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AIDA Model
In this approach the main objective of a firm is tomake the customers aware of the product andseek their attention through effective marketingcommunication, such as through effectiveadvertising
The awareness would, in turn, generate interestabout the product in the consumers followed by
the desire to own The entire process would ultimately lead to
purchase.
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Innovation-Adoption Model
Another model on consumer adoption, developedby Rogers, especially in reference to a newproduct is the innovation-adoption model, depictedin Figure 2
In the innovation-adoption model, a firm createsawareness and generates interest before thecustomer gets a chance to evaluate it first hand
The firm also gives a final trial to the new productbefore it is actually adopted by the customers.
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Process of International MarketingCommunication
Marketing communication aims at conveying afirms message as effectively and accurately aspossible
The basic process of marketing communication, asdepicted in Figure 3, involves the followingconstituents:
1. Sender 6. Receiver
2. Encoding 7. Noise3. Message 8. Feedback
4. Medium
5. Decoding
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Foreign Country
Context
Decoding
Home Country
Context
Encoding
Receiver(Customer)
Sender(Firm)
Medium
Message
Feedback
Noise
Figure 3, Process of International Marketing Communication
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1. Sender
It refers to the marketing firm which isconveying the message.
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2. Encoding
Before a message can be sent, it has to beencoded
Putting thoughts, ideas, or information into asymbolic form is termed as encoding
Encoding ensures the correct interpretation of
message by the receiver, who is often theultimate customer
The use of words, signs, or symbols should besuch that they become familiar to the target
audience Firms often use symbols for encodingmessages that have a universal meaning
Language and cultural issues need to be takencare of while encoding the message.
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3. Message
A message may be verbal or non-verbal, oral,written, or symbolic
A message contains all the information ormeaning that the sender aims to convey
A message is put into a transmittable formdepending upon the channels ofcommunication
From a semiotic perspective, every marketingmessage has three basic components: anobject, sign or symbol, and an interpretant
The object is the product that is the focus of the
message (e.g., Marlboro cigarettes)
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The sign is the sensory imagery that representsthe intended meaning of the object (e.g., theMarlboro cowboy)
The interpratant is the meaning derived (e.g.,rugged, individualistic, American).
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4. Medium
The channel used to convey the encodedmessage to the intended receiver is termed asmedium
The medium can be categorized in the
following manner :
4A. Personal
4B. Non-Personal
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4A. Personal
It involves direct inter-personal (face-to-face)contact with the target group
Sales people serve as the channel ofcommunication as they deliver the sales
message to the target customers Friends, peers, neighbours, and family
members constitute social channels
Word of mouth communication is a verypowerful source of personal communication.
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4B. Non-Personal
These are channels which convey messagewithout any inter-personal contact betweenthe sender and the receiver
Since the message is communicated tomany persons at a time, these channels are
also referred to as mass media or masscommunication channels
The non-personal channels ofcommunication may further be broadly
classified as follows: Print media: Newspapers, magazines,
direct mails, etc.
Electronic media: Radio and Television.
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5. Decoding
It is the process of transforming the sendersmessage back into thought
Decoding is highly influenced by the self-reference criteria (SRC), which is unintended
reference to ones own culture.
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6. Receiver
It is the target audience or customers whoreceive the message by way of reading,hearing, or seeing
A number of factors influence how the message
is received
These include the clarity of message, theinterest generated, the translation, the sound ifwords, and the visuals used in the message.
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7. Noise
The unplanned distortions or interference of themessage is termed as noise
A message is subjected to a variety of externalfactors that distort or interfere its reception
Technical snags, such as problems in tele-communication or signals, both at the sendingand the receiving end may cause distortion
The competitors promotional activities oftencreate confusion in the minds of the customersand are a major source of noise.
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8. Feedback
In order to assess the effectiveness of themarketing communication process, feedbackfrom the customers is crucial
The time needed to assess the communication
impact depends upon the type of promotionused
For instance, an immediate feedback can beobtained by personal selling, whereas it takesmuch longer time to assess the communicationeffectiveness in case of advertisements
In international markets, a firm has to
communicate with the customers and the
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channel intermediaries located in overseasmarkets that have considerably different marketingenvironment characteristics
The differences in cultural environment, economicdevelopment of the market, regulatory framework,language, and media availability make the task ofinternational marketing communication much morecomplex compared to domestic marketing.
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Marketing Communication
Strategies
On the basis of promotional focus on marketintermediaries in the distribution systems or the
end customers, a firm has the following twooptions in marketing communication strategies:
1. Push Strategy
2. Pull Strategy
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1. Push Strategy
In push strategy, the promotional programmeis primarily directed at the marketintermediaries in the distribution system
It aims to motivate the market intermediariesto stock, promote, and sell the products to theultimate customers, as depicted in Figure 4
The market intermediaries, such as the
distributors, wholesalers, and retailers, areoffered a variety of incentives to push theproduct in the market
Generally, in push strategy, the distributors
are motivated to promote the product to the
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wholesalers, who, in turn, promote the product tothe retailers, who finally push the product to theconsumers
The tools used in push strategy include personalselling and sales promotion, contests forsalespersons, and trade shows.
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FirmChannel
intermediary
End
customer
MarketingCommunication
Productpush
MarketingCommunication
Productpush
Figure 4, Push Strategy
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Push strategy is usually found to be more effectiveunder the following situations:
Lack of product differentiation
Weak brand identity or brand clutter Low brand loyalty
Difficulty in appreciation product benefits
Industrial products Institutional sales
Lack of access to advertising media
Low promotional budget
Short and direct marketing channels Low wages, i.e., cost of employing salespersons is
lower than the advertising cost through thedistribution channels
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Besides, commoditization of brands has made itdifficult for the customers to differentiate betweenthe competing brands, making push strategy more
effective The biggest drawback of push strategy is that
hardly any brand loyalty is created even afterspending huge sums of money
Besides, the channel intermediaries become moredemanding and ask for increase in their margins tosupport the product
In case the demand for a product is low, amarketer has to accede to the demands of channelintermediaries
This triggers an unhealthy competition among the
marketers to offer more and more margins,
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which further squeezes their promotion budgetsfor advertising
In developing countries, the size of the retailoutlets is small and a majority of them aremanaged by one or two persons only
Therefore, the customers come in direct contact
with the sellers and often seek their opinionabout the product
The margin of the seller on a particular productoften determines his opinion
Under such situations, push strategy serves asan effective promotional tool.
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2. Pull Strategy
The process of motivating the customers tobuy the product from the retailers throughpromotional programmes, as given in Figure5, is referred to as full strategy
A retailer asks for a product from a wholesalerand the wholesaler asks for the product froma distributor who gets the product from thefirm.
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FirmChannel
intermediaryEnd
customer
Productrequest
Productrequest
Marketing communication
Figure 5, Pull Strategy
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Pull strategy is more effective in the followingsituations:
Perceived product differentiation
Strong brand identity
High brand loyalty
High-involvement product category
High promotional budgets
Self-service in retail system, i.e.,supermarket culture
The promotional techniques used for pull strategyinclude advertising and sales promotion campaigndirected at consumers, such as discounts, giftvouchers, samples, etc.
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In retail outlets where self-service is pre-dominant,pull strategy is more effective
Besides, pull strategy also facilitates long-termbrand loyalty among the customers
However, in view of the market conditions and thefactors mentioned above, a firm may use a judicial
mix of pull and push strategies for marketpromotion.
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Tools for International MarketingCommunication
An international marketing communicationstrategy may use a variety of marketingtools, such as advertising, direct marketing,sales promotion, personal selling, publicrelations, trade fairs, and exhibitions
Each of these tools is discussed in detail in thischapter.A. Advertising
B. Direct MarketingC. Personal SellingD. International Trade Fairs And
ExhibitionsE. Trade Missions
F. Sales Promotion
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1. Advertising
Any paid form of non-personal communicationby an identified sponsor is termed asadvertising
It can be for a product, service, an idea, ororganization
The non-personal means, such asnewspaper, magazine, TV, or radio can
transmit the message to a large number ofindividuals often at the same time
Advertising is the most widely used form ofpromotion, especially for mass marketing.
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1A. Standardization vs Adaptation
1A.1 Standardization
1A
.2A
daptation
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1A. Standardization vs Adaptation
An international marketing firm may opt for astandardized advertising strategy or maycustomize it depending upon the needs ofvarious markets
The arguments in favour of standardizedcampaign include economy of scale anduniform projection of a firms image in globalmarkets
The adaptation of advertising may be eitherdue to mandatory reasons, such asregulatory framework or due to competitivemarket response.
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1A.1 Standardization
Using the same advertising strategy acrossthe country is termed as standardization
However, the extent or degree ofstandardization varies
Ad with no change: Same advertisementis used with no change in theme, copy, orillustration except for translation
Benetton Group Spa, the Italybased global
clothing retailer, uses global advertisingcampaigns with the same theme, The UnitedColours of Benetton,
However, Benettons ad has shocking photos
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to attract public attention on global issues relatedto environment, terrorism, racism, and HIVMany of Benettons ad campaigns have been
criticized in a number of countriesBenetton, however, is keen on continuing with itsshock advertising campaigns as long as the admanages to create and sustain the interest of thecustomers.Ad with changes in illustration: When ads usedifferent models, generally local models, fordifferent countries but maintain the same ad copyand theme, it is also considered standardized
advertisingVirginia Slims, the worldwide market leader inwomens cigarette, initiated a worldwide campaignin which it used local models in different countries
Ad i i l i l i i i i
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Advertising plays an important role in positioning abrand
Virginia Slims was always positioned as a
womens cigarette right from its inception in 1968 It later became an international market leader
Initially Philip Morris positioned Marlboro as awomens cigarette in 1924 based on the slogan
Mild as May Its marketing communication programmes featured
stylish women posed in plush settings to targetfemale audience
During World War II, Marlboro was re-introducedas a more softer filtered brand and was targetedat addicted male smokers who were afraid ofgetting lung cancer
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However, this repositioning did not work in themarket as filtered cigarettes were considered to befeminine
It was only in 1955 that Marlboro made abreakthrough by re-positioning itself as a menscigarette and eventually became a global marketleader
Lux has maintained a single advertising conceptworld-wide
It promotes the brand through cine stars
Lux has been positioned as the beauty soap offilm stars
However, adaptations have been made in differentcountries depending upon the local context
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Universal appeals in international advertising areused in the following situations:
Superior Quality: The promise of superior
quality may be used universally
For instance, BMW uses the slogan ultimatedriving machine world-wide.
New Product/Services: The world-widelaunch of a product under the sprinkler approach isgenerally coupled with global communicationcampaign
For instance, Microsoft used such campaignswhile launching Windows 95 and Windows 2000.
Country of Origin: Brands in productcategories which have a strong country stereotype
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often leverage their route by emphasizing onmade in. cachet
The country of origin is often emphasized in case
of luxury and fashion products.
Celebrities: Celebrities with universal appealare engaged for global products, whereas the
regional or national celebrities are employed forregional communication
Swiss watchmaker SMH International promoted itsOmega brand with a TV commercial featuring
actor Pierce Brosnan after the release of JamesBond movie Golden Eye
Sachin Tendulkar and Aishwarya Rai have beenused in a number of advertising campaign in the
south asian region.
Lif t l A l b f l b l l
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Lifestyle: A large number of global upscalebrands use lifestyle ads to target customersregardless of the country.
Global Presence: In order to enhance thebrands image, firms project their global presenceby communicating to the target audience that theproduct is used world-wide and by using it they
also would become a part of global customerscommunity.
Market Leadership: Brands with a strongcountry image often send a signal to the targetaudience that it is the most preferred brand in theirhome markets
The fact that the company is a market leadernationally, regionally, or internationally gives out astrong message to the customers.
C I Fi l if
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Corporate Image: Firms also use a uniformmarketing communication approach to project acertain uniform corporate image.
Ad ti t d di d d ti i t t i
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Adopting a standardized advertising strategy isgaining wider acceptance due to a large number offactors, which are as follows:
The preferences and lifestyles of consumers areincreasingly becoming homogeneous, enablingpsychographic segmentation of markets that canbe targeted through a uniform message
The consumer behaviour is increasingly gettingsimilar in the urban centres across the world
The city dwellers exhibit similar working, shopping,
travelling, and lifestyle patterns across countries A sharp increase in international travel among
customers has made standardized advertisingstrategy quite popular among the companies
I t ti l h f di h t l i i
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International reach of media, such as televisionprogrammes, magazines and some of thenewspapers, has also boosted the use of
standardized advertisementsFor instance, programmes on channels like ZeeTV, Star Plus, ESPN, Discovery, BBC, CNN, etc.are telecasted and watched across the globe
Standardized advertising approach facilitatescreation of uniform corporate image
A firm achieves economies of scale if it follows
standardized advertising approach.
Th j b fit f t d di d d ti i
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The major benefits of standardized advertisinginclude economies of scale and projection of uniformimage in international markets
Such an approach can be adopted in the followingmarketing situations:
The target market is segmented on the basis of
psychographic profile of the customers, such astheir lifestyles, behaviour, and attitudes
Cultural proximity among the customers
Technology intensive or industrial products
Similarity in marketing environment, such aspolitical, legal, and social.
1A 2 Adaptation
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1A.2 Adaptation
Modification in the advertisement message,
copy, or content is termed as adaptation orcustomization
However, the emphasis on communicationstrategies varies between markets
For example rich lather in bathtub and foamyexperience is stressed in the ad campaignsby Lux in Europe where it is primarily sold asa liquid soap, which may not be the case in
other countries Lux is mainly a shampoo in China, Taiwan,
and the Philippines, soap in India, andeverything from a soap to a shampoo in
Japan
H th b fit f th k t d d t
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Hence, the benefits of the marketed productare emphasized in each of the markets
Communication adaptation is often needed in
international markets due to:
Difference in cultural values among thecountries
Difficulties in language translation Variations in the level of education of the
target groups
Media availability
Social attitudes towards advertising, and
Regulatory framework of the target market
A th t b h i i tl i fl d b
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As the customer behaviour is greatly influenced bythe cultural factors in the target market, it is difficultfor a standardized communication strategy to be
effective across different country markets Therefore, to convey a similar concept across
various cultures, a firm has to adapt its advertisingcampaigns in different markets in view of thedifferent cultural contexts
For instance, in products with image-basedpositioning, such as Pepsi, an ad in Western
countries may depict scantily clad women in swimsuites on a beach or in a bar, which is not feasibleto adapt in Islamic countries due to the statutoryframework and the cultural aspects
Pepsi customizes its advertising campaigns to
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Pepsi customizes its advertising campaigns todepict its core values of youthfulness (spirited,young, up-to-date, and out-going) associated with
generatioNext. As celebrities enjoy a demi-god status in India,
Pepsi uses a number of celebrities, such as ShahRukh Khan, Saif Ali Khan, Sachin Tendulkar,Amitabh Bachhan, Kajol, and Rani Mukherjee, inits ads.
2 Direct Marketing
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2. Direct Marketing
Selling products and services to the customerswithout using any market intermediary istermed as direct marketing
It deals with the customers on one-to-onebasis, unlike the conventional mass-marketing
approach that deals indirectly with customers Direct marketing has little dependence on mass
promotion or advertising, whereas conventionalmarketing relies heavily on mass promotion
Technological advances, such as proliferationof telecommunication and informationtechnology, have facilitated direct marketingacross the world
The rapid growth in credit card usage has
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The rapid growth in credit card usage hasincreased payments over the Internet, which hasfacilitated international sales transactions
Direct marketing offers the following benefits overconventional marketing: Provides direct contact with the customers Facilitates finalization of sales deals through
inter-action
Helps in mass customization of a firmsmarket offerings rather than mass marketing
Facilitates effective and deeper marketsegmentation
Eliminates waste market coverage due to itsselective reach Personalized service Helps in building customer relationships.
2A Direct Mailing
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2A. Direct Mailing
2B. Door-to-Door Marketing
2C. Multi-level Marketing
2A Direct Mailing
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2A. Direct Mailing
It involves sending letters, brochures orcatalogues, e-mails faxes, or even productsamples directly to the consumers, who may,in turn, purchase the product through mail.
2B Door to Door Marketing
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2B. Door-to-Door Marketing
Receptivity of door-to-door marketing variesconsiderably among the cultures
In Japans even motorcars and stocks aresold door to door
Amway, Avon, and Tupperware are some ofthe worlds largest firms that rely on door-to-door marketing world-wide.
2C Multi level Marketing
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2C. Multi-level Marketing
It involves a revolutionary distribution systemwith little spending on advertising andinfrastructure
In multi-level marketing, a core group of
distributors is recruited who generally paythe company some registration fee and areintroduced to the company by a sponsor
Each of these distributors picks up a product
worth a certain sum, for instance, Rs 1,000,and then sell it directly to the customers
The mark-up is generally pegged at 25%-30%
However the distributors can charge a lower price
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However, the distributors can charge a lower priceif they reduce their commission
These core distributors appoint another level of
distributors and get additional commission from thesales made by them
Some of the major global firms involved in multi-level marketing are Amway, Avon, Oriflame, MaryKay Cosmetics, etc.
The major benefits of multi-level marketing involverapid, continuous, and automatic growth of
distribution networks Besides, it is a quick and cost-effective marketing
method
As the marketing system depends upon the
continuity of the network any snap in its linkage
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continuity of the network, any snap in its linkagecreates major setbacks for the entire distributioncum sales system
Since the direct sellers repeatedly approach theprospects, it makes the prospects quite irritated
The high-pressure tactics used to push the productmay adversely affect the brand image
The firm has limited control over the sales force interms of prices offered
After economic liberalization in the Peoples
Republic ofChina, multi-level marketing firms,such as Amway, Avon, and Mary Kay Cosmeticsgrew rapidly
By 1997, Amway had approximately 80,000 sales
representatives who generated $ 178 million in
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representatives who generated $ 178 million insales, and Avon had nearly 50,000 representativeswho produced $ 75 million
It was reported that some other companies usingthe so-called pyramid scheme were cheatingconsumers
Consequently, the Chinese government banneddirect selling in April 1998
As a result, Avon was forced to open its own retailstores.
3 Personal Selling
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3. Personal Selling
It involves personal meeting of a firmsrepresentatives with the customers
As the languages, customs, and businessculture are different in different international
markets, personal selling becomes verycomplex
Generally, firms employ local salespersons for
personal selling in international markets.
Personal selling is generally employed in markets
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Personal selling is generally employed in marketswhere:
Wages are low compared to advertising
Thus, personal selling is highly cost-effectivein low-income countries Customers are multi-linguistic, such as in
India, and a single language ofcommunication hardly succeeds, in such
cases personal selling plays an importantrole
Countries where literacy level is low,personal selling becomes an important tool
to communicate In oriental cultures, the sellers one-to-onecontact with the customers pays, as itfacilitates the establishment of strongcustomer relationships
An international firm should also provide periodic
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An international firm should also provide periodicinputs to distributors sales force, such as throughperiodic trainings, sales literature, and the facility
of direct mailing This way a firm makes its tasks easier and
improves efficiency
Personal selling has a special role to play in theJapanese market due to some peculiar socio-culturalfeatures, which are as follows:
Individuality and independence are not as highly
valued in Japan as they are in the WestBesides, Japanese marketers and salespeople areless inclined to take credit for success or blameother for failures
Japanese companies rarely use non-
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Japanese companies rarely use nonfinancial incentives to recognize, praise, orreward salespeople for performing well
Good performance is simply expected, andspecial praise is deemed unnecessary
Loyalty to ones employer is a fundamentalcharacteristic of Japanese society;commissions are generally an unnecessarycomponent of compensation packages
Salespeople consider it their duty to
generate business for their companiesIt is the honourable thing to do and nospecial compensation is required for doingwhat duty demands.
4 International Trade Fair and
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4. International Trade Fair and
Exhibitions
Trade fairs and exhibitions are the oldest andthe most effective methods to exploremarketing opportunities
Trade fairs are organized gatherings wherethe buyers and the sellers meet and establishcommunication.
Trade fairs may be of the following types:
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Trade fairs may be of the following types:
4a. General Trade Fairs
4b. Specialized Trade Fairs
4c. Consumer Fairs
4d. MinorTrade Fairs
4e. Solo Exhibitions
4f. Catalogue Shows
4a General Trade Fairs
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4a. General Trade Fairs
All types of consumer and industrial goodsare exhibited in trade fairs
Such trade fairs are open both for generalpublic and business-persons
Generally, in less-developed countriesgeneral trade fairs are the only option.
4b. Specialized Trade Fairs
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4b. Specialized Trade Fairs
Such trade fairs focus on a specific industrialor trade sector, such as apparels or food
Specialized trade fairs are targeted atbusiness visitors but usually are also openfor the general public on specific days and at
specific times Specialized trade fairs provide excellent
opportunity to explore contacts ininternational markets, such as importers,
agents, distributors, etc. Even established firms participate in
specialized fairs in order to establishcontacts.
4c Consumer Fairs
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4c. Consumer Fairs
Generally targeted at individual customers,the consumer fairs focus on householdgoods.
4d Minor Trade Fairs
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4d. MinorTrade Fairs
These are fairs held at a small level, such astoy or shoe fairs.
4e. Solo Exhibitions
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4e. Solo Exhibitions
Exhibitions held by a specific country or
group In these exhibitions, a number of dealers of a
particular product field put up the show in ahotel, hall, or lounge
Solo exhibitions may be international,regional, national, or provincial in terms of itsscope and participants
Solo exhibitions provide opportunity forbuyer-seller interface
International trade fairs offer the following benefits:
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g
They provide an opportunity to get information onthe competing products, their attributes, prices,
etc. in the market They help in assessing customers response to a
firms products
They serve as a meeting place for potentialimporters, agents, and distributors in theInternational market
They provide publicity and generate goodwill
They provide an opportunity to meet the existingclients in the market and assess their performancevis--vis competitors
A firm needs to consider the following parameters
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g pwhile selecting an international trade fair:
Compatibility of the fair with the firms product
profile and marketing objectives Location of the fair
Visitors and participants profile
Performance of the fair in terms of the salesconcluded, the type of exhibitors, and the numberof visitors during the previous years
Experience of previous business exhibitors
Cost of participation vis--vis other promotionalalternatives
In order to generate business and to make the
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gparticipation in an international trade fair meaningful,the following issues need to be taken care of:
Visit the overseas market in advance, one year tosix months before the fair, to gather informationabout the markets, business dynamics, and to getoneself familiarized with the market
Carry out a market analysis in advance in terms of
the social, cultural, linguistic, economic, legal, andpolitical issues that influence the marketingopportunities
Before participation one should prepare as
detailed a plan of display as possible Prepare exhibition materials, such as literature,promotional CD ROMs, videotapes, media kits,business cards, display items, signage, andpromotional products
Immediate follow up after participation in the
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fair is crucial to achieve business generation
Therefore, all queries should be answered
within a weeks time after the trade fairThe effectiveness of the firms participation in tradefairs may be assessed from the following:
Securing business leads and contacts
Volume of sales order Securing contacts
Finding international trade partners
Conducting market and competitor research
Acquiring information about new products,processes, and technology
Meeting with existing customers
C
reating awareness about the firm.
4f. Catalogue Shows
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4f. Catalogue Shows
As participation in trade fairs involvesconsiderable cost and time, the display ofcatalogues, sometimes accompanied withtrade samples, provides an opportunity to
create market awareness about the firmsproducts
Generally, the government organizations andindustry associations actively promote such
catalogue shows.
5. Sales Promotion
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Sales promotion entails various tools that areused as short-term incentives to induce apurchase decision
Due to increased competitive intensity in themarket, firms make use of sale promotion to
get short-term results Besides, the buyers also expect some
purchase incentives in view of competitorsofferings
It is estimated that manufacturers as a groupspend about twice as much on tradepromotion as they do on advertising, and anequal amount is spent on consumerpromotions
The promotional offer has a local focus and
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pgenerally varies from country to country
The basic objectives of consumer promotion
programmes are as follows: To solicit product enquiries
To generate trials for new or related products
To generate additional sales To motivate customers for repeat purchase
Sales promotion can be categorized as follows:
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5a. Trade Promotions
5b. ConsumerPromotions
5a. Trade Promotions
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These are the promotional tools aimed at the
market intermediaries Due to increase in market competition and
inter-firm rivalry, firms often offer promotionalschemes to the market intermediaries to
enhance the feeling of loyalty among thecustomers and push their products in themarket
Various tools used for sales promotion
include offering margins higher than thecompetitors, incentives for not keepingcompetitors products, organizing jointpromotions, providing financial assistance for
promotional budgets, etc.
5b. ConsumerPromotions
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These are the promotional tools directed atthe ultimate consumers
Various tools used for consumer promotioninclude discounts, free samples, contests,
gifts, gift coupons, festival sales, specialprice offers for bulk purchase, etc.
6. Public Relations
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In overseas markets, it is increasinglybecoming important for a firm to be aninsider
Public relations aim at building corporate
image and influencing media and other targetgroups to have a favourable publicity
Various methods used for public relations are asfollows:
Sponsorship of sports, cultural events, etc. Press release Contribution to awards and prices for
sports and other events
Publicity of a firms promotional campaign
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Lobbying at government level
Public relations may aim at internal as well as
external communication directed at employees,shareholders suppliers of inputs and components,customers, and the general public
Indian firms, such as JK Tyres, also sponsor sportsevents in Europe, as a part of its public relationactivity
A firm attempts to create links with the media,
politicians, bureaucrats, and other influentialgroups and persons in the target market to gainpositive publicity
In high-income countries, professional firms offer
specialized public relations services, whereas in
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low-income countries the word of mouth mode ofpublicity is widely used for spreading a message.
Factors Influencing International
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Factors Influencing International
Communication Decisions
As the marketing environment across countriesvaries considerably, there are various factors that
influence international marketing communication.A. Culture
B. The Cultural Contexts
C. Language
D. Education
E. Media Infrastructure
F. Government Regulations
A. Culture
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It is a well-known fact that the culture of acountry influence the customers behaviourimmensely
Customers are quite sensitive about the
cultural aspects depicted in marketingcommunications
Advertising themes incorporating socialacceptance, mutual dependence, respect forelders and traditions, harmony with nature,use of seasons, innovation and novelty,distinctive use of celebrities, changing familyrole are often effective
Let us now illustrate, some of the marketingbl d i i t ti l k t hi h d
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blunders in international markets which occurreddue to the faulty understanding of differentcultures on the marketers part
Parker Pen Company successfully usedthe slogan Avoid Embarrassment UseQuink in the US
The product was marketed in LatinAmerica with the Spanish translation EviteEmbarazos Use Quink of the aboveslogan that un-intentionally meant AvoidPregnancy Use Quink resulting in an
embarrassment for the company Procter & Gamble showed an animated
stork delivering Pampers diapers in its adcampaigns in the United States
The same ad copy was used in Japan, only
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the language was changed
However, this ad did not work in Japan
The subsequent market research revealedthat, unlike the Western folklore, storks,according to the Japanese folklore, are notexpected to deliver babies
On the contrary, Japanese people believethat it is the giant peaches that float on theriver that bring babies to the deserving
parentsSubsequently, Procter & Gamble changedthe theme of the ad campaign to expertmom, a nurse who is also a mother theme
Muhammad Ali is immensely popular in the
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Middle East
One of the car manufacturers used
Muhammad Ali in its ad campaign for theregion
The ad theme was, I am the greatest
The ad backfired and offended the Muslimswho regard only the God as great
Islamic countries impose certain restrictions on thepresentation of women in TV commercials
The most stringent laws regarding presentation ofwomen are in Saudi Arabia where the TVcommercials can show only a veiled woman or herback
For advertising Pert Plus Shampoo, Procter &G bl h d t d t l t t i
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Gamble had to adopt an unusual strategy inSaudi Arabia
Since the focus had to be on the prospects hair,the ad showed the hair of a woman from theback and another veiled woman from the front.
B. The Cultural Contexts
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The culture has broadly been divided as high-context and low-context culture
Oriental countries, such as Japan, China,India, and Middle East generally have high-
context cultures where the contextualbackground of communication is extremelysignificant unlike low-context countries
Therefore, marketing communication in high-context culture has to be more implicit thanexplicit
The cultural contexts can be applied to internationali ti i th f ll i
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communication in the following manners:
B1. Conversational PrinciplesB2. Presentation Principles
B3. Return Word Principles
B1. Conversational Principles
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In high-context cultures, the customers look
keenly at the details of the sales executivesand the companyTherefore, any promotional or advertisingcampaign in such cases should aim at
establishing the firms credibility andbackground There should be clarity in presentation
Jargons and slangs should be avoidedOne should speak slowly and without a
strong accent, unlike Western markets Focus on identification with the international
recipients by way of using phrases or wordsfrom the recipient language or use of
historical or contemporary illustrations
Body language and tone of voice should bei t t ith th
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consistent with the message.
B2. Presentation Principles
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One should show respect for cultures thatare more formal
It needs structured presentation in terms offormat and content of communication
It should give due respect and appeal todifferent foreign audience
One should be patient with the pace ofdifferent cultures
The length of message is often viewed as anindication of the importance the promoterattaches to its subject.
B3. Return Word Principles
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In low-context cultures, communication isgenerally direct, to the point, and immediatelystated
However, emphasis needs to be given on
politeness and decorum of the message,besides, proper translation in high-contextcultures is very important
It needs modifications in slogans or branding
so that the message does not offend thetarget audience.
C. Language
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Translation from one language to another iscrucial in international communication
The literal translation may fail to convey thedesired message across the countries due to
cultural factors For instance, the word yes is understood
differently in different countries
In low-context societies, such as the USA andEurope, yes means yes, but in high-contextsocieties, such as Japan, yes means I amlistening to what you are saying and it does
not necessarily mean yes
In Thailand, yes means OK
S ff f
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Such vast differences in the meaning of yes isdue to the fact that in high-context cultures, the
other person is given opportunity to save onesface and direct refusals are hardly appreciated bythe society
Some instances of the translation blunders in
international communication are as follows:
Pepsi used the German translation of theslogan come alive with Pepsi in its ad
campaign in West GermanyHowever, the slogan when translated toGerman actually meant come out of thegrave with Pepsi and failed to generate any
market response from the customers
General Motor translated its slogan Body byFischer to Corps by Fischer in Belgium that
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Fischer to Corps by Fischer in Belgium thatoffended the Belgian customers.
D. Education
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The level of literacy plays an important role indeciding what communication tool andmessage should be used in an internationalmarket
Market segments with lower level of adultliteracy need to be addressed by way of moreaudio-visual content rather than a writtenmessage
It should be ensured that the visuals conveythe desired message rather than the text partof the communication.
E. Media Infrastructure
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Availability of media, that varies widely, ofteninfluences the advertisers options for using aparticular medium
A cross-country comparison of the share ofadvertising expenditure on various mediumsof communication is given in Table 5
It reveals that the advertising expenditure ofprint media in India was 53% compared to59% in UK, 46% in US, 40% in China, and
28% in Mexico, whereas the share ofadvertising spending on TV was 38% in Indiacompared to 29% in UK, 37% in US, 43% inChina, 55% in Thailand, and 57% in Mexico in
2001
The radio spending was highest at 15% in Mexicoand 14% in US compared to merely 2% in
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and 14% in US compared to merely 2% inIndia.
Print TV Radio Other Total
India 53 38 2 8 100
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India 53 38 2 8 100
China 40 43 4 13 100
Mexico 28 57 15 0 100Thailand 32 55 9 4 100
US 46 37 14 4 100
UK 59 29 5 7 100
Table 5, AD Spend Share Global Comparison (2001)
F. Government Regulations
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The regulatory framework of a countryinfluences the communication strategy ininternational markets
The government regulations in various
countries relate to the following issues: Advertising in foreign language
Use of pornography and sensuality
Comparative advertising referring to thecompeting products from rival firms
Advertisements related to alcohol andtobacco
Use of children as models
Ad ti t l t d t h lth f d d
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Advertisements related to health food andpharmaceuticals
Some of the advertising regulations in variouscountries include the following:
In Malaysia, the Ministry of Informationsadvertising code states that women shouldnot be the principal object of anadvertisement and should not be used toattract sales unless the advertised product isrelevant to women
The Ministry of Information in Saudi Arabiaprohibits any advertising depicting unveiledwomen
Portuguese law prohibits sex discrimination orthe sub-ordination or objectification of women
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the sub-ordination or objectification of womenin advertising
Use of foreign words and expressions whenFrench equivalents can be used areprohibited in France
Norway prohibits any advertising that portrays
men or women in an offensive manner orimplies any derogatory judgment of either sex
Most Arab countries prohibit explicit depictionof sensuality.
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