Professional Documents
Culture Documents
International Marketing
International Marketing
marketing
International Marketing: A Global
Marketplace
Trade is increasingly global in scope today. There are several reasons for
this. One significant reason is technological—because of improved
transportation and communication opportunities today, trade is now more
practical. Thus, consumers and businesses now have access to the very best
products from many different countries. Increasingly rapid technology
lifecycles also increases the competition among countries as to who can
produce the newest in technology. In part to accommodate these realities,
countries in the last several decades have taken increasing steps to promote
global trade through agreements such as the General Treaty on Trade and
Tariffs, and trade organizations such as the World Trade Organization
(WTO), North American Free Trade Agreement (NAFTA), and the European
Union (EU).
2
United States and Japan, for example, so once the demand for a product (say,
VCRs) is in the decline in these markets, an increasing market potential
might exist in other countries (e.g., Europe and the rest of Asia).
Internalization/transaction costs refers to the fact that developing certain very
large scale projects, such as an automobile intended for the World market,
may entail such large costs that these must be spread over several countries.
Advertising
Advertising is a persuasive communication attempt to change or reinforce
ones’ prior attitude that is predictable of future behavior.
3
Gazette, first published in 1729,had the largest circulation and advertising
volume of any paper in colonial America. The invention of radio and, later,
television created two more amazing media for the spread of advertising.
4
Advertising Plan
The manager needs to engage in situation analysis with respect to the
market conditions that are operating at the time and to assess the
consumer/market, competitive, facilitating agency, and social legal, and
global factors that will affect decision making and the development of the
plan. It is vital that the advertising plan be developed so as to mesh with and
support the various components of the marketing and communications mix
such as personal selling, pricing, public relation, and promotion. The
advertising manager also needs to know the major areas of his or her
planning and decision-making responsibilities.
5
Consumer and Market Analysis
A situation analysis often begins by looking at the aggregate market
for the product, service, or cause being advertised: the size of the market, its
growth rate, seasonality, geographical distribution; the possible existence of
different segments; and trends in all of these aggregate market
characteristics.
Competitive Analysis
Advertising planning and decision-making are heavily affected by
competition and the competitive situation the advertiser faces. Competition is
such a pervasive factor that it will occur as a consideration in all phases of
the advertising planning and decision-making process. A type of market
structure analysis that involves the development of perceptual maps of a
market, for example, attempts to locate the relative perceptual positions of
competitive brands.
6
The Marketing Plan
7
Advertising Communication System
An advertising message can have a variety of effects upon the receiver. It can
Create awareness
Communicate information about attributes and benefits
Develop or change an image or personality
Associate a brand with feelings and emotions
Create group norms
Precipitate behavior
8
Message Strategy and Tactics
Media Strategy
Although there are many rules of thumb often used to decide how
much money to spend on advertising, the soundest rules involve beginning
with a detailed specification of what a corporation is attempting to
accomplish with advertising, and the resources necessary. It is only when the
job to be done is well specified that the amount and nature of the effort the
amount of money to be invested in advertising can be really determined
9
International advertising
10
International Advertising as a Business Practice
11
The Tata Group has some of India's most famous personalities from
the sports and entertainment fields endorsing its products and
12
services, and the Tata brand like Narain Karthikeyan, Sourav Ganguly
and Irfan Pathan, Sania Mirza, Naseeruddin Shah and Aamir Khan who
have greatly contributed to the success if Tata’s products and
services.
1. Amitabh Bachchan
2. Sachin Tendulkar
3. Narain Karthikeyan
4. Shahrukh Khan
5. Aamir Khan
6. Aishwarya Rai
7. Rahul Dravid
9. Saurav Ganguly
10.Sania Mirza
13
Impact Of Advertising On Sales
HERO HONDA
Sales Performance
Apr'04- Apr'05-
Dec'04 Dec'05
Dec'04 Dec'05
Domestic 225250 238822 1892540 2155479
Exports 5501 6282 43441 72815
The cumulative sales of the company for the period April 2003 - January
2004 are 16,73,421 motorcycles, a notable jump from 14,27,052 units sales
achieved during the corresponding period last year (April 2002-January
2005). This reflects a growth of 17% in the cumulative sales of the company
owing to its advertising strategies.
14
Facilitating Agencies
15
Fact file
With the exception of Dentsu, the Japanese agency, most other agency
networks generate the majority of their revenues outside their home
country.
16
Advertising Expenditure
The Table below shows advertising spending in the top ten global ad
markets.
1997 Advertising
Country Expenditures (millions) Percent
U.S. 117.0 50
Japan 35.7 15
U.K. 20.8 9
Germany 20.3 9
France 9.7 4
Brazil 8.8 4
Italy 7.2 3
Australia 5.5 2
Canada 5.4 2
S. Korea 5.3 2
Total: 235.7 100
17
Top 10 Advertising companies.
18
Factors Affecting Advertising
19
Five Keys to Radio Advertising Success
Frequency of Ads
Target Audience
Just like with every ad one create, you must know ones target
audience. Advertising your western gear store on a country
station makes sense. Advertising a teen clothing store on the
same station doesn't.
20
Producing A Commercial
Frequency is the key so make sure your ad hits the mark and
will get the consumer's attention the first time. Research shows
it takes a few times before the consumer actually gets what your
company is all about. It's vital your ad stands out and conveys
your message repeatedly.
21
Major advertisers: Retailers like Spencer's, Army & Navy
and Whiteaway & Laidlaw
Marketing promotions: Retailers' catalogues provided
early example
Ads appear in newspapers in the form of lists of the
latest merchandise from England
Patent medicines: The first brand as we know them
today were a category of advertisers
1) Volkswagen
The Volkswagen campaign of the 1960’s is considered a
huge breakthrough in the history of advertising. During
this time, the auto industry tended focus on the beauty
and engineering stretch of the vehicle. However,
Volkswagen advertising broke through the clutter by
creating ads based upon the same principle that drew
drivers of Volkswagens in the first place: simplicity,
honesty, uniqueness and humor. Now, the brand
continues to stand out with maximum creativity.
2) Marlboro
22
Marlboro Cigarettes
The Marlboro Man smoking cigarettes has come to be
one of the biggest icons of advertising. The handsome
and suave person made smoking cigarettes look “cool.”
It has demonstrated the powerful impact the industry
has on consumers.
Accord Advertising
Glare Advertising
23
24