Hi everyone!

This time it was my turn to explain Communication Strategy Implementation for A Foreign
Company.

Before we get to the implementation point, I'll explain a little about the communication strategy. A
communications strategy is a plan to convey messages to a target audience the company has previously
identified. We know that communication is an important element in the marketing mix. Several
communication channels are available to companies, including direct selling, sales promotion, direct
marketing, and advertising. Generally, part of a company's communications strategy is determined by its
choice of channels. Some companies rely primarily on direct selling, others on point-of-sale promotions
or direct marketing, and others on mass advertising. Then, some companies use several channels
simultaneously to communicate their message to potential customers.

BARRIERS TO INTERNATIONAL COMMUNICATION

In carrying out international cooperation, international communication is used by companies in selling

their products in other countries in the form of marketing messages. However, this international
communication will face several barriers that will hinder communication. These barriers include cultural
barriers, source effects, and noise levels.

 Cultural Barriers
 Cultural barriers will make it difficult for companies to communicate messages across
cultures. Due to cultural differences, a message that means one thing in one country can
mean something very different in another. The best way for companies to overcome cultural
barriers is to develop cross-cultural literacy. In addition, companies need to use local inputs,
such as local advertising agencies, in developing their marketing messages.

 Source and Country of Origin Effects

 The source effect occurs when the message's recipient evaluates the message based on the
status or image of the sender. The source effect can be detrimental to international business
when potential customers in the target country are biased toward foreign companies. A
subset of source effects is called a country of origin effect, or the extent to which place of
manufacture influences product evaluation. Research shows that consumers can use the
country of origin as a cue when evaluating a product, especially if they do not have detailed
knowledge of the product. However, the effects of the source and country of origin are not
always negative if we look at it from the consumer's point of view.

 Noise Levels
 Noise refers to the number of other messages competing for potential consumer attention.
This noise level also varies from country to country. Generally, noise levels in developed
countries are very high, but in developing countries, they are pretty low.

PUSH VERSUS PULL STRATEGIES

The main decision related to the communication strategy is the choice between a push strategy and a
pull strategy. The push strategy emphasizes personal selling rather than mass media advertising in the
promotion mix. While effective as a promotional tool, personal selling requires the intensive use of a
sales force and is relatively expensive. Meanwhile, the pull strategy relies on mass media advertising to
communicate marketing messages to potential consumers.

Although some companies only use a pull or push strategy, other companies also implement a strategy
by combining direct selling with mass advertising to maximize communication effectiveness. There are
several factors that determine the relative attractiveness of push and pull strategies. These factors
include product type relative to consumer sophistication, channel length, and media availability.

 Product Type & Consumer Sophistication

 In general, the consumer goods industry will use a pull strategy because mass
communication has a cost advantage for such companies. This strategy is also suitable to be
applied in developed countries because most of them already have sophistication in a
product. Meanwhile, companies that sell industrial or complex products prefer a push
strategy. A push strategy that implements a direct selling system allows companies to
educate potential consumers about the features of their products. Customer education will
also be necessary when consumers lack product sophistication. This can occur in developing
or developed countries when new complex products are introduced or where high-quality
channels are absent or scarce.

 Channel Length
 In this factor, the longer the distribution channel, the more intermediaries must be
persuaded to bring the product to consumers. This can cause inertia in the channel, making
it more difficult for companies to enter the market. Using direct sales to push products
through multiple layers of distribution channels is also expensive. Therefore, companies
must try to pull their products through channels by using mass advertising to create
consumer demand. However, due to differences in culture and understanding in each
country, a company needs to further study the social and cultural structure of the country
they are going to. It is intended that each communication strategy that they implement can
run effectively.

 Media Availability
 A pull strategy relies on access to advertising media. In several developed countries, many
media are already available, including print media, broadcast media, and the internet.
However, in some developing countries, the situation is more stringent because all types of
mass media are usually more limited. Consequently, the company's ability to use a pull
strategy in some countries is limited by media availability. In addition, media availability is
restricted by law in some cases.

The Push-Pull Mix

The optimal mix between push and pull strategies depends on product type and consumer
sophistication, channel length, and media sophistication.

Push strategies tend to be emphasized:

 For industrial products or complex new products.

 When distribution channels are short.
  When few print or electronic media are available.

Pull strategies tend to be emphasized:

 For consumer goods.

 When distribution channels are long.
 When sufficient print and electronic media are available to carry the marketing message.

GLOBAL ADVERTISING

Global advertising is a form of implementation of a communication strategy in a foreign company. In

carrying out global advertising, companies must thoroughly discuss the pros and cons of advertising
standardization worldwide. In addition, companies also need to address each country's differences so
that their products can be accepted in the other country they are going to.

Support for global advertising is threefold. First, it has significant economic advantages. Standard
advertising lowers the cost of value creation by spreading the fixed costs of developing an ad across
many countries. Second, there is the concern that creative talent is scarce, so one large effort to develop
a campaign will yield better results than 40 or 50 small attempts. The third reason for the standardized
approach is that many brand names are global. With today's large volume of international travel and
considerable overlap in media across national borders, many international companies wish to project a
single brand image to avoid the confusion caused by local campaigns.

However, there are two main arguments against global standard advertising. First, there are cultural
differences between nations, so a message that works in one country may fail miserably in another. The
diversity of cultures makes it difficult to develop a single, effective worldwide advertising theme.
Messages directed at a country's culture may be more effective than global messages. Second, there are
advertising regulations. This, of course, can hinder companies from implementing standard advertising.

Meanwhile, in addressing country differences, some companies need to experiment with capturing
some of the benefits of global standardization while recognizing differences in countries' cultural and
legal environments. Companies can also select features to include in their advertising campaigns and
localize other features. By doing so, it may be possible to save some costs and build international brand
recognition but adapt its advertising to different cultures.