international env for imc
TRANSCRIPT
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THE INTERNATIONAL
ENVIRONMENT FORPROMOTION
andIMC
7.1
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Cultural Communications
Culture - Total Way of a People, the Social Legacy the
Individual Acquires from His or Her Group
Culture is Typically Invisible to Those Who are Immersed In It,
Making Communication Across Cultures Difficult
7.2
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Importance of International Communication
Complex Social, Political & Economic ChangesAffect International Communications Environment.
International Developments Relevant to the Rise inInternational Commercial Communications:
Development of Trading Blocs - May be Prelude toa Rise in Nationalism
Loosening of Political and Economic Constraints
7.3
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Importance and Rise of International
Communication(cont)
Liberalization of the Flow of Labor and Increase in
movements of Peoples Across Borders Growing Size of Ethnic Groups From Elevated Birth
Rates
Rise of Cultural Borders and Barriers even asEconomic Barriers Begin to Fall
7.4
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Overcoming Cultural Barriers in
International Promotion
Barriers to Creating Successful International Promotions
Ethnocentrism Self-Reference Criterion
7.5
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Overcoming Cultural Barriers in
International Promotion (cont)
Cross-Cultural Research Helps Overcome Barriers
Secondary Data - Data Gathered by Someone Elsefor Some Other Purpose
Primary Data - Specific Data Collection Unique to aPromotional Situation
Economic Conditions
Demographics Characteristics
Values
Custom & Ritual
Product Use & Preference
7.7
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Challenges in International Advertising
Creative Challenge
Media Challenge
Media Availability & Coverage
Media Costs & Pricing
Regulatory Challenge
7.8
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International Markets
Prefer Different Creative
Executions
7.9
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Challenges in International Sales Promotion,Direct Marketing and e-Commerce
CHARACTERISTICES OF THE PRODUCT
Product Prevalence & Use As Competitive Environment Becomes More
Complex, Advertising Designed to DifferentiateBrands will Become More Predominant
Products Moving into Growth Stage will Need to beDifferentiated
7.10
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Challenges in International Sales Promotion,Direct Marketing and e-Commerce (cont)
LEVEL OF ECONOMIC DEVELOPMENT
All Forms of Production & Direct Marketing are Applicable inHighly Industrialized Markets
In Less Developed Countries - Lack of Wide Range ofConsumer Goods & Low Income Make Promotion a Non Issue
Few Competitors Serve these Markets
Low Literacy Make Communication Difficult w/Print Media
Without TV, Radio & Newspaper, Direct marketing isUndermined
Unsophisticated Mail Systems
7.11
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Challenges in International Sales Promotion,Direct Marketing and e-Commerce (cont)
LEVEL OF ECONOMIC DEVELOPMENT (cont)
Newly Industrialized MarketsBetter Environment for
Promotional ToolsMust be Managed Carefully
Consumer Income RisesMore Consumer Goods areIntroduced and Succeed
As Media Proliferate, Sales Promotions and Direct
Marketing can be Introduced Based on Market-by-Market Assessment
7.12
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Challenges in International Sales Promotion,Direct Marketing and e-Commerce (cont)
STRUCTURE OF TRADE CHANNELS
Highly Developed Distribution & Retailing SystemsTrade Channel Members
Demand Support or Carry Marketers Brand
Trade Allowances, Incentives, Point-of-Purchase Displays & Sampling
Must Have the Means to Handle Coupon Redemption or Premium Distributions
Less Developed Trade ChannelsMay Not be Able to Use Traditional PromotionalTechniques
Fragmentation of Trade Channels Retailers - No Way of Handling Coupons
Some Countries So Small May Not be able to Handle Point-of-Purchase
Trade Show
7.13
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Challenges in International Sales Promotion,
Direct Marketing and e-Commerce (cont)
REGULATIONS
Regulation of Promotion, Direct Marketing, and
e-Commerce Varies Widely Market-to-Market
Most Sales Promotion Tools are Legal Across Europe
Sweepstakes are Either Heavily Banned or Regulated
in All European Markets In JapanValue of Premium Offered with a Product
is Limited to 10% of the Value of the Original Price
7.14
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Promotions in
International Markets
Must be Researched for
Regulation and Legality
7.15
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Challenges in International Public Relations
COMPANIES HAVE LESS CONTROL OVER GLOBAL
PUBLICITY RELATIVE TO DOMESTIC SITUATIONS,
AND NO CORPORATIONS ARE POWERFUL
ENOUGH TO CONTROL A HOST COUNTRYS
MEDIA
7.16
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Promotion Agencies Around the World
GLOBAL AGENCY Will Know Marketers Products & Current Promotion Program
Agency may then Either Adapt Domestic Campaigns or Launch NewOnes
Disadvantage is their Distance from Local Culture. ExportingMeaning is Never Easy
INTERNATIONAL AFFILIATE Set Up as a joint Venture w/Local Agencies
Join Networks or Take Minority Ownership
Benefits in this ArrangementLOCAL AGENCY Knowledgeable about Culture/Local Market
Have Well-Established Contacts
One Problem-Less Standardization of Creative Effort7.17
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Standardized vs. Promotional Customized Campaigns
STANDARDIZED CAMPAIGNS USE SAME APPEAL & CREATIVEEXECUTION ACROSS ALLINTERNATIONAL MARKETS
CUSTOMIZED CAMPAIGNS INVOLVE PREPARING CREATIVEEXECUTIONS FOR EACH MARKET A FIRM HAS CREATED
A BRAND IS WELL SUITED FOR A STANDARDIZED CAMPAIGNWHEN:
Communication Primarily Uses Visual Appeal Communication is Culture-less
Brands that are Standardized
Products have Global Reputation
7.18
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Certain Product Lend
Themselves to
Standardized Campaigns
7.19
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Standardized vs. Promotional Customized Campaigns
(cont)
ENVIRONMENT FOR STANDARDIZED PROMOTION
IS MORE FAVORABLE DUE TO:
Expansion of Global Communications Media
Emergence of Global Teenager
Trend Towards Universal Demographic & Lifestyle
Trends
Americanization of Consumption Values
7.20
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Challenges in Developing & Managing
A Global Sales Force
DEVELOPING A GLOBAL SALES FORCE CAN BEACHIEVED WITH: Expatriate Personnel
Local Nationals
Third Country Nationals
7.22
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Challenges in Developing & Managing
A Global Sales Force
MANAGING THE GLOBAL SALES FORCE Training
Expatriate
Foreign National Personnel Training for Foreign Personnel
Motivation & Compensation
Companies Must Consider Culture
Guidelines Include Examining the Way Firms are Compensating
People High Tax-Rate CountriesSales Personnel Push for Packages
instead of Direct Taxable Income
E.g., Cost of Living Allowances, Private School Tuition, etc.
7.23