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Chapter 8: Communication (Promotion)

in international marketing

 The communication process

 The integrated marketing communication (IMC)
 Promotion tools
 Advertising
 Public relations
 Personal selling
 Sales promotion Marketing communications—the promotion (P) of the marketing mix—
 Direct marketing refers to all forms of communication used by organizations to inform,
remind, explain, persuade, and influence the attitudes, perceptions, and
 Special tools for promotion buying behavior of customers and others. The primary purpose of
marketing communications is to tell customers about the benefits and
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values that a company, nation, product, or service offers. 2

Communication (Promotion) in The communication process

international marketing

 To communicate with customers so as to provide information that

buyers need to make purchasing decisions.

 Important strategic consideration:

 Whether to standardize worldwide or to adapt the promotion
mix to the environment of each country.
 The availability of media, which varies around the world.

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The communication process The communication process

04 difficulties that compromise communication efforts

Overall requirements of effective communication and persuasion
are fixed and do not vary from country to country
 The sender needs to have a clear understanding of the
purpose of the message, the audience to be reached and how
this audience will interpret and respond to the message
 The degree of ‘fit’ between medium and message. For
example, a complex and wordy message would be better for
the press than for a visual medium such as television or
cinema.
 Control of “noise’
1. The message may not get through to the intended
recipient.
2. The message may reach the target audience but may
not be understood or may even be misunderstood.
3. The message may reach the target audience and may
be understood but still may not induce the recipient to take
the action desired by the sender.
4. The effectiveness of the message can be impaired by
noise.

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The communication process

 Language differences
Other factors affecting the communication situation
 A slogan or advertising copy
that is effective in one
Language differences
language may mean
something different in another
Economic differences language.

 Trade names, sales

Sociocultural differences presentation materials and
advertisements used in the
domestic markets may have to
Legal and regulatory conditions be adapted and translated
when used in other markets.

Competitive differences
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 Economic differences:  Sociocultural differences:

 In developing countries, people in may be more likely to
have radios than television sets.
 In countries with low levels of literacy, written communication
may not be as effective as visual or oral communication.
 Dimensions of culture (religion, attitudes, social conditions
and education) affect how individuals perceive their
environment and interpret signals and symbols.
 E.g: the use of color in advertising must be sensitive to
cultural norms

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 Legal and regulatory conditions

 Local advertising regulations and industry codes directly

influence the selection of media and content of promotion
materials.

 Many governments maintain tight regulations on content,

language and sexism in advertising.

 The type of product that can be advertised is regulated.

Tobacco products and alcoholic beverages are the most
heavily regulated in terms of promotion.

 Regulations are found more in industrialized economies than

in developing economies, where the advertising industry is not
yet as highly developed.
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Integrated marketing communication

 Competitive differences

 As competitors vary from country to country in terms of
number, size, type and promotional strategies used, a
firm may have to adapt its promotional strategy and
the timing of its efforts to the local environment.
Integrated marketing communications (IMC): Carefully
integrating and coordinating the company’s many
communications channels to deliver a clear, consistent, and
compelling message about the organization and its
products.

 IMC calls for recognizing all touchpoints where the customer may
encounter the company and its brands

 Different media play unique roles in attracting, informing, and

persuading consumers; these roles must be carefully coordinated
under the overall marketing communications plan.

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Communication tools

Integrated Marketing Communications

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Advertising

Advertising is any paid form of non-personal presentation

and promotion of ideas, goods, or services by an identified
sponsor.

 Some advertising messages are designed to communicate

with consumers in a single country or market area.

 Regional or pan-regional advertising

 Global advertising

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Advantages Disadvanatages • is used when introducing a new product

• For companies that want to reach
a mass audience, TV is the place
to be
• Enables the seller to repeat a
message many times
• Allows the company to dramatize
its products through the artful use
of visuals, print, sound, and color
• Can be used to build up a long-
term image for a product or can
trigger quick sales
• Large scale advertising says
something positive about the
seller’s size, popularity, and
success
• Impersonal and cannot be as
directly persuasive as can
company salespeople.
• Carry on only a one-way
communication with an
audience, and the audience
does not feel that it has to pay
attention or respond.
• Can be very costly (TVC)
Informative
category; the objective is to build primary
advertising
demand.
• becomes more important as competition
increases; the objective is to build
selective demand.
Persuasive • Some persuasive advertising has
advertising become comparative advertising (or
attack advertising), in which a company
directly or indirectly compares its brand
with one or more other brands.
• important for mature products; it helps to
Reminder
maintain customer relationships and keep
advertising
consumers thinking about the product.

Advertising pros and cons 19 Advertising objectives 20

* Media: The vehicles through which advertising messages are delivered to their
intended audiences.

Possible Advertising Objectives

21 Profile of major media types 22

 Reach is a measure of the percentage of people in the target • Refers to the approach used to attract the attention
market who are exposed to the ad campaign during a given of consumers and/or to influence their feelings
period of time. toward the product, service, or cause.

 Frequency is the average number of times within a given time • Can also be viewed as “something that moves
period that each potential customer is exposed to the same ad. people, speaks to their wants or needs, and
 Impact depends on the compatibility between the medium used excites their interest.”
and the message (the ‘impact’ on the consumer’s brain).
Informational/
E.g: Rational
Emotional
The advertiser might try to reach 70 percent of the target market appeals
Appeals
during the first three months of the campaign, an average exposure
frequency of three. For products that need to be demonstrated, Combining
messages on television may have more impact than messages on Rational and
radio because television uses sight and sound. Emotional
Appeals

Profile of major media types

23 Message Appeal

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Creative
execution style
Straight-sell or Scientific/
Demonstration
factual message technical evidence
Straight-sell or Straightforward presentation of information concerning the product
factual message or service with its specific attributes and/or benefits. Often used
with informational/ rational appeals.
Scientific/ Cite technical information, results of scientific or laboratory
Comparison Testimonial Slice of life technical studies, or endorsements by scientific bodies, doctors or agencies
evidence to support their advertising claims.

Demonstration Illustrate the key advantages of the product/service by showing it

in actual use or in some staged situation
Animation Personality symbol Imagery
Comparison Offers a direct way of communicating a brand’s particular
advantage over its competitors or positioning a new or lesser-
known brand with industry leaders.
Testimonial Messages presented by way of a testimonial, where a person
Dramatization Humor Combinations praises the product or service on the basis of his or her personal
experience with it.
Slice of Life Portrays a problem or conflict that consumers might face in their
daily lives then shows how the product or service can resolve the
Creative execution style problem

Creative
execution style Cultural considerations in advertising

Animation Animated scenes are drawn by artists or created on the computer,

and cartoons, puppets, or other types of fictional characters may
 In Japan intimate scenes between men and women are in bad
be used. Especially popular for commercials targeted at children taste; they are outlawed in Saudi Arabia
Personality Developing a central character or personality symbol that can
symbol deliver the advertising message and with which the company or  American ads have “in-your-face” style: make frequent use of
brand can be identified. spokespeople and direct product comparisons; they use logical
Imagery Contain little or no information about the brand or company and arguments to try to appeal to the reason of audiences.
are almost totally visual to encourage consumers to associate the
brand with the symbols, characters, and/or situation shown in the
 Japanese ads are more image oriented and appeal to audience
ad
sentiment.
Dramatization Often relies on the problem–solution approach, but it uses more
excitement and suspense in telling the story
 Nike’s U.S advertising relies heavily on celebrity sports
Humor A type of advertising appeal, but this technique can also be used
as a way of presenting other advertising appeals
endorsers such as Michael Jordan (low relevance in other
countries)
Combinations Many of the execution techniques can be combined to present the
advertising message (e.g: comparison & humour)
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Global Advertising Expenditures and Media Vehicles
• More money spent in U.S. than anywhere else in the world; $200 billion in
2017
• China is #2 at $80 billion
• 1/3 of current growth in ad spending in B R I C S
Public relations
Public relations (PR) involves building good relations with
the company’s various publics by obtaining favorable
publicity, building up a good corporate image, and handling
or heading off unfavorable rumors, stories, and events.
.

• TV (broadcast, cable, satellite) has been #1 for years with 40-50% of global
expenditures; newspapers were #2 with 25%

• Limited TV ads in Sweden, Norway, and Denmark. No advertising to children

under 12 in Sweden. Spending on print media is 3 times higher than TV

• Digital ads will surpass TV soon

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Public relations
Press relations
PR activities involve both internal and external communication. Internal or press agency
communication is important to create an appropriate corporate culture.
The target groups for public relations include:
Product publicity Publicizing specific products.
1. Directly connected with the organization: Employees and
shareholders Public affairs
2. Suppliers: Suppliers of raw materials and components, Providers of
services (e.g. financial services, IT/digital services) Lobbying
3. Customers: Existing customers, new customers
PR functions
Creating and placing newsworthy information in the
news media to attract attention to a person, product,
or service.
Building and maintaining national or local community
relationships
Building and maintaining relationships with legislators
and government officials to influence legislation and
regulation.

Investor Maintaining relationships with shareholders and others

4. Environment: General public, Government (local, regional,
relations in the financial community.
national), financial markets generally.
Development Working with donors or members of nonprofit
organizations to gain financial or volunteer support.
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How PR practices differ around the world

Major Public Relations Tools
Cultural traditions, social and political contexts, and economic
environments in specific countries can affect public relations
practices.
Written
News Speeches Special events
materials
 In Ghana, dance, songs, and storytelling are important
communication channels.
Corporate
Audiovisual Public service
materials
identity
activities
Buzz marketing  In India, where half of the population cannot read, issuing
materials
press releases will not be the most effective way to
communicate.
Social Mobile tour Internet
networking marketing  In the United States, PR is increasingly viewed as a
separate management function. In Europe, PR
professionals are viewed as part of the marketing function
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Personal selling Personal selling

Involves personal interaction between two or more people, so each

Personal selling consists of interpersonal interactions person can observe the other’s needs and characteristics and make
with customers and prospects to make sales and maintain quick adjustments.
customer relationships
A salesforce requires a longer-term commitment than does
advertising

The company’s most expensive promotion tool

It is used mainly to sell to distribution channel members and in

business-to-business (B2B) markets. Also used in some consumer
markets, e.g. for cars and consumer durable products.

Used more in countries where labor costs are low

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Types of international sales force:
Salespeople are an
effective link between the
company and its customers
to produce customer value
and company profit by:
 Representing the
company to customers
 Representing customers
to the company
 Coordinating marketing
and sales
Personal selling
Expatriate salespersons
• Familiar with the firm’s products, technology, history and
policies
• May lack the knowledge of the foreign market
• Very expensive items often require selling directly from the
head office, which usually involves expatriates.
Host-country nationals
• Native personnel with extensive market and cultural
knowledge, language skills and familiarity with local business
traditions.
Third-country nationals

• Employees transferred from one country to another.

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Sales promotions

Sales promotions consists of short-term incentives to

encourage the purchase or sales of a product or service.
Whereas advertising offers reasons to buy a product or
service, sales promotion offers reasons to buy now.

Today, in the
average consumer
packaged-goods
company, sales
promotion accounts
for 60 percent of all
marketing budgets.
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Major Sales Promotion Tools Major Sales Promotion Tools

Consumer promotions are sales promotion tools used to boost

• Urge short-term customer buying short-term customer buying and involvement or enhance long-term
Consumer
or enhance customer brand customer relationships.
promotion:
involvement
• To get retailers to carry new items Samples Coupons Cash refunds Price packs
Trade and more inventory, buy ahead, or
promotion: promote the company’s products
and give them more shelf space. Point-of-
Advertising Patronage
Premiums purchase
specialties rewards
• To get more sales force support for displays
Sales current or new products or getting
promtion salespeople to sign up new
accounts. Demonstrations Contests Sweepstakes Games

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Major Sales Promotion Tools Major Sales Promotion Tools

Trade promotions are sales promotion tools used to persuade Business promotions are sales promotion tools used to generate
distribution channels to carry a brand, give it shelf space, promote it business leads, stimulate purchases, reward customers, and
in advertising, and push it to consumers. motivate salespeople.

Trade show: Sales contests

• Straight discount off the list price on each case
Discount:
purchased. • find new sales leads • A contest for salespeople
• In return for the retailer’s agreement to feature • introduce new products or dealers to motivate
• them to increase their
Allowance the manufacturer’s products in some way (e.g: meet new customers
sales performance over a
display allowance) • sell more to present
given period.
customers
• Offer free goods (extra cases of merchandise) • educate customers with
Free goods to resellers who buy a certain quantity or who publications and • Motivate and recognize
feature a certain flavor or size. audiovisual materials. good company
performers, who may
• Offer free specialty advertising items that carry receive trips, cash prizes,
Specialty
the company’s name, such as pens, pencils, or other gifts.
advertising
calendars, matchbooks, memo pads. 43 44

International practices of sales promotion Direct marketing

 In countries with low levels of economic development, low incomes
limit the range of promotional tools available. (free samples or Direct marketing consists of connecting directly with
demonstrations >> coupons or on-pack premiums) carefully targeted consumers, often on a one-to-one,
interactive basis. Using detailed databases, companies
 Market maturity: consumer sampling & coupons in growing markets, but
trade allowances& loyalty programs in mature markets.
tailor their marketing offers and communications to the
needs of narrowly defined segments or individual buyers.
 Local perceptions of a particular promotional tool or program can vary.
E.g: Japanese see coupon usage as embarrassing/ Islam frowns on gambling
so sweepstakes may not work

 Local regulations: Regulations vary by country; Highly regulated in

Europe; Popular in Scandinavia where broadcast ads are highly
regulated; Exploiting regulatory loopholes in developing countries

 Trade structure in the retailing industry can affect the use of sales
promotions (e.g: highly concentrated retail industry requires significant
promotional activity at both the trade and the consumer levels)
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Direct marketing

Less public
• The message is normally directed to a specific person.

Immediate and customized

• Messages can be prepared very quickly and can be
tailored to appeal to specific consumers.
Interactive
• It allows a dialogue between the marketing team and
the consumer, and messages can be altered depending
on the consumer’s response.

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Forms of Direct Marketing

Forms of Direct Marketing
Direct-mail marketing:

• Sending an offer, announcement, reminder, or other item to a person at a

particular physical or virtual address.

Catalog marketing:

• Print, video, or digital catalogs that are mailed to select customers, made
available in stores, or presented online.

Telephone marketing:

• Using the telephone to sell directly to customers.

Direct-response television (DRTV) marketing:

• Direct marketing via television, including direct-response television advertising

(or infomercials) and home shopping channels.
• TV viewers encounter full 30-minute or longer advertising programs for a
single product.
• Home shopping channels, another form of DRTV marketing, are television
programs or entire channels dedicated to selling goods and services:
broadcast 24 hours a day
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Forms of Direct Marketing Special tools of promotion

Sponsorship
Kiosk Marketing: A company pays a fee to have its name associated with a
particular event, team or athletic association, or sports
• Many companies are placing information and ordering facility.
machines—called kiosks in stores, airports, hotels, college
campuses, and other locations.
 Combines elements of PR and sales promotion
• e.g: Kiosks in Hilton hotel lobbies let guests view their
reservations, get room keys, view pre-arrival messages,  Ensures the company name will
check in and out, and even change seat assignments and be mentioned on air by on-air or
print boarding passes for flights on any of 18 airlines. public address announcers and
later on news reports or talk
shows
New digital technologies:
 Events draw large crowds so
• Mobile phone marketing, Podcasts Vodcasts, etc. perfect for sampling and other
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sales promotion 52

Special tools of promotion

Celebrity endorsement

The use of famous spokespersons or celebrities in marketing

communications.

 Combines elements of PR and advertising

 Explanation for the effectiveness of celebrity endorsers:

 Viewed as highly trustworthy, believable, persuasive, likeable.
 Consumers believe that major stars are motivated by genuine
affection for the product rather than by endorsement fees.

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Special tools of promotion

Product placement
The inclusion of a branded product in media, usually without
explicit reference to the product. Most commonly, branded
products are feature in a context usually without ads, such
movies, television shows and video games.

 Product placement combines

elements of PR and advertising

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