TRƯỜNG ĐẠI HỌC NGOẠI NGỮ- TIN HỌC THÀNH PHỐ HỒ CHÍ MINH

Ho Chi Minh City University of Foreign Languages – Information Technology

CHAPTER 17

INTEGRATED MARKETING COMMUNICATIONS

AND INTERNATIONAL ADVERTISING
P h i l i p R. C a t e o r a - M a r y C. G i l l y - J o h n L . G r a h a m

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Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 What Should You Learn?

• Local market characteristics that affect the

advertising and promotion of products
• The strengths and weaknesses of sales
promotion and public relations in global
marketing
• When global advertising is most effective; when
modified advertising is necessary

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 What Should You Learn?

• The effects of a single European market on

advertising
• The effect of limited media, excessive media,
paper and equipment shortages, and
government regulations on advertising and
promotion budgets
• The communication process and advertising
misfires

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 Discussions

• List and explain all factors affect the choice of

IMC tools (advertising, sales promotion, PR,
events, personal selling…)
• List and explain the criteria to evaluate the IMC
program

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Factors influencing choice of IMC

• Product Life Cycle

• Brand Life Cycle
• Diffusion of Innovation
• Customer knowledge and perception
• Type of Customers (B2B vs. B2C; demographic)
• Type of Products (high involvement vs low involvement,
shopping, necessity…)
• The availability of tools

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 Global Perspective
Barbie Versus Mulan
• Integrated marketing communications (IMC)
– Advertising
– Sales promotions
– Trade shows
– Personal selling
– Direct selling
– Public relations

• Objective: successful sale of a product or service

• Availability of appropriate communication
channels can determine entry decisions

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 THE HIERARCHY OF EFFECTS MODEL

Action

Desire

Interest

Awareness

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COMMUNICATION TOOL KIT

1. ADVERTISING
2. SALES PROMOTION
3. DIRECT MARKETING
4. PUBLIC RELATIONS
5. INTERNET
6. TRADE SHOWS
7. TELEMARKETING
8. PERSONAL SELLING
9. MARKETING RESEARCH

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 WHERE MARKETING COMMUNICATION
DOLLARS ARE SPENT
Online Direct Marketing
Marketing

Advertising
Market
Research 7.7%
5 7.7% 24.8%
5.8%.8%

Premiums & 4.3% 24.8%

Incentives 4.24%
.3%
4.2%

4.4%
Other 4.4%
3.1%
3.1% Public
3.1%
Relations

16.9% 10.8%
16.9% 10.8%
Sales Force
Trade Management
Shows 18.0%
18.0%

Sales Promotion

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 New Trends

• Search Engines: Google

• Social Media: Facebook….

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 Sales Promotions in
International Markets
• Sales promotions are marketing activities that stimulate consumer
purchases and improve retailer or middlemen effectiveness and
cooperation.
• Sales promotions are short-term efforts directed to the consumer or
retailer to achieve such specific objectives
• In markets in which the consumer is hard to reach because of media
limitations, the percentage of the promotional budget allocated to
sales promotions may have to be increased
• In some less developed countries, sales promotions constitute the
major portion of the promotional effort in rural and less accessible
parts of the market.
• Major constraints are imposed by local laws, which may not permit
premiums or free gifts to be given

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 International Public Relations

• Creating good relationships with the popular press and other media to
help companies communicate messages to their publics—customers,
the general public, and governmental regulators—is the role of public
relations (PR).
à Positive image about the company
à managing unfavorable rumors, stories, and events.

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 International Advertising

The basic frame- work and concepts of international advertising are

essentially the same wherever employed. Seven steps are involved:
1. Perform marketing research.
2. Specify the goals of the communication.
3. Develop the most effective message(s) for the market segments
selected.
4. Select effective media.
5. Compose and secure a budget based on what is required to meet
goals.
6. Execute the campaign.
7. Evaluate the campaign relative to the goals specified.

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 Advertising Strategy and Goals

• Marketing problems
– Require careful marketing research
– Thoughtful and creative advertising campaigns
► In country, regional, and global markets

• Increased need for more sophisticated

advertising strategies
• Balance between standardization of advertising
themes and customization
• Consumer cultures

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 Product Attributes
and Benefit Segmentation
• Different cultures usually agree on the benefit of the
primary function of a product or service
• Other features and psychological attributes of the item
can have significant differences
– Cameras
– Yogurt
– Almonds
• Blue Diamond
– Assumes that no two markets will react the same
► Each has its own set of differences
► Each will require a different marketing approach and strategy

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 Regional Segmentation

• Pan-European communications media highlights

need for more standardized promotional
efforts
• Costs savings with a common theme in uniform
promotional packaging and design
• Legal restrictions slowly being eliminated

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 Alternative Advertising Options

• PLACE ADVERTISING:
• Out-of-home advertising - different alternative
advertising forms
• Billboards:
• Colorful, digitally produced graphics, backlighting,
sounds, movement & unusual even 3D images

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 Alternative Advertising Options

• Outdoor advertising popular in Asia WHY?

• Traffic jams - cities like Bangkok - massive captive
audience
• Rural areas- TV & newspaper ad less available -
billboards - mass audience
• TV ad rates went up - outdoor ad more cost
effective

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 Alternative Advertising Options

Public Spaces:
• Put TV & print ads in public places - movies, airlines,
restrooms, road etc
• Transit ads: reach working women
• Another innovative advertising - automated teller
machine (ATM)

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 Alternative Advertising Options

PRODUCT PLACEMENT:
• From movies to all types of TV shows
• Combined with special promotions to publicize
entertainment tie-ins
• Placement - no cost – supply their products to
movie company
• In China, some programs are produced & branded
by advertisers

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 Point-of-Purchase

• There are many ways to communicate with

consumers at the point-of-purchase (POP)
– In-store advertising includes ads:
– On shopping carts
– Cart straps
– Aisles and shelves
– In-store demonstrations
– Live sampling
– Instant coupon machines

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 Point-of-Purchase

• The appeal of point-of-purchasing advertising lies

in the fact that numerous studies show that in
many product categories consumers make the bulk
of their final brand decisions in the store
• One study suggested that 70 percent of all buying
decisions are made in the store
• In-store advertising is designed to increase the
number of spontaneous buying decisions

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 The International
Communications Process

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 Legal Constraints

• Comparative advertising
• Advertising of specific products
• Control of advertising on television
• Accessibility to broadcast media
• Limitations on length and number of commercials
• Internet services
• Special taxes that apply to advertising

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 Linguistic Limitations

• Language is one of the major barriers to

effective communication through advertising
• Translation challenges
• Low literacy in many countries
• Multiple languages within a country
• In-country testing with the target consumer
group avoids problems caused by linguistic
differences

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 Cultural Diversity

• Knowledge of cultural diversity must encompass

the total advertising project
• Existing perceptions based on tradition and
heritages are often hard to overcome
• Subcultures
• Changing traditions

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 Media Limitations
and Production and Cost Limitations
• Media limitations may diminish the role of
advertising in the promotional program
• Examples of production limitations:
– Poor-quality printing
– Lack of high-grade paper
• Low-cost reproduction in small markets poses a
problem in many countries

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 Media Planning and Analysis –
Tactical Considerations
• Availability
• Cost
• Coverage
• Lack of market data

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 Media Planning and Analysis –
Tactical Considerations
• Newspapers
• Magazines
• Radio and television
• Satellite and cable TV

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 Media Planning and Analysis –
Tactical Considerations
• Direct mail
• The Internet
• The New Social Media
• Other media

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 Campaign Execution
and Advertising Agencies
• Managed by advertising agencies
– Local domestic agency
– Company-owned agency
– Multinational agency with local branches
• Compensation
– Commonly 15 percent throughout the world
– Some companies moving to reward-by-results

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 International Control
of Advertising – Broader Issues
• Consumer criticism
• Deceptive advertising
• Decency and blatant use of sex
• Self-regulation
• Government regulations

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 Summary

• An integrated marketing communications (IMC) program

includes coordination among advertising, sales
management, public relations, sales promotions, and
direct marketing
• Currently companies are basing their advertising
strategies on national, subcultural, demographic, or other
market segments
• The major problem facing international advertisers is
designing the best messages for each market served

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 Summary

• The availability and quality of advertising media vary

substantially around the world
• Advances in communication technologies are causing
dramatic changes in the structure of the international
advertising and communications industries

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