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All images in this presentation are used for educational purposes. Fair dealing.

INTERNATIONAL MARKETING
MGT 382
Dr. Zahra Shah

Lecture 8: Promotion Decisions


Agenda

• External marketing communications


• International marketing communications process
• Communications across cultures
• Standardisation vs. Adaptation
• International marketing communications
planning process
• Promotion mix: advertising and other tools
• Media and other decisions
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External, internal,
interactive

Source: Doole and Lowe (2008)

3
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External
marketing communications

Communications
Communications toto Supported by database
build
build customer
customer management
relationship
relationship

Communicating
Communicating thethe Supported by advertising, personal
product/
product/ service
service selling and sales promotion
differentiation
differentiation

Communicating Supported by PR (public


Communicating thethe
corporate relations) and sponsorship
corporate identity
identity
activities

4
All images in this presentation are used for
educational purposes. Fair dealing.

International Marcom
process

Source: Hollensen (2010)


5
Communications
across cultures – I
 Congruity Theory – if signals/cues (communication) in an environment
stimulus (object, experience, brand) are congruent with one’s self/identity
it leads to enhanced engagement in processing information to derive
meaning (Reed, 2002)

 Identity accessibility effect: cues consistent with one’s self/identity


increase accessibility (relevance to an individual) and diagnosticity
(usefulness to an individual) of cultural schemas utilised for evaluation
(attitude) and decisions (behaviour) (Forehand et al., 2002)

 Types of signals/cues:
 Race/ethnicity
 Language
 Culturally symbolic objects/images
 Rituals
 Values/lifestyles 6
Communications
across cultures – II
• Hall’s (1960) low-high context
– Meaning conveyed via explicit messages, facts, data, words
alone, exacting, succinct…
– Meaning conveyed implicitly, indirectly. Complex
communication styles, person & social settings, visual,
symbols…
• Language:
– reflects communication styles
– affects mental presentations (verbal/visual/sound)
– translatability
– foreign language
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Standardisation vs Adaptation
of marcoms debate
• Standardisation: global company = global reach = brand presented (and
communicating) in exactly the same way everywhere. Note: do not confuse
with GCCP. Either GCCP or FCCP communications can be standardised.

• Adaptation: brand presented (and communicating) taking into account


differences in communicating across cultures and market environment
conditions

• Coping with diverse, globally connected and technologically savvy


consumers have been names as 3 of 5 key challenges by over 75% of Chief
Marketing Officers: Freddie Laker and Hilding Anderson, both at
SapientNitro (Forbes, 2012).
Retrieved from:
http://www.forbes.com/sites/onmarketing/2012/08/21/five-challenges-for-tomorrows-global-marketing-leaders-study/
Standardisation vs
Adaptation
Standardisation Adaptation:
o Improve efficiency o Cultural differences
o faster introduction, o Political and legal
reduction in planning/ constraints
control, simplification of o Local circumstances
marketing
communications
o Provision of (perceived)
added values, consistent
brand
Standardise or Adapt?
Strategic decisions

Brand positioning

Target markets and marcoms objectives

10
Standardise or Adapt?
Tactical decisions

 Message style

 Tools

 Media buying

 Use of agency

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Major decisions

………….
…………. ………….
………….

Objectives setting Standardisation


vs. adaptation?
Message & Creative

Communication tools Media

Agency selection

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Key planning considerations
 Branding or sales major focus? Logic of communication 
purpose  style:
 What message? US, Anglo-Saxon, Germany:
‘persuasion’  ads through
 What audience? argumentation and direct style
Most Europe & Asia:
relationship/ trust / ‘likability’ 
 What tools? more indirect, complex
communication styles,
 What media? direct style offends
Acceptance of ads
 How to measure the effectiveness?
 recall, recognition, attitude change...
 vs. ads likability, brand likability, personal relevance...
 vs. increase of sales volume
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All images in this presentation are used for educational purposes. Fair dealing.

Marketing communication tools

1. Advertising
2. Sales
promotion

3. PR/ PROMOTIONAL
PROMOTIONAL
sponsorship MIX
MIX

4. Direct
marketing
5. Personal
selling
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All images in this presentation are used for educational purposes. Fair dealing.

Marketing communication tools

• Advertising
• PR & Sponsorship
– sponsoring events can create and strengthen trust at the brand level
- importance varies by culture
• Sales promotion:
– money/ product based, token or points in loyalty scheme – view on
long-term effect, variety of promotional activities
• Direct marketing
– level of trust/ risk taking  how to
create direct contact and to what level
• Personal selling
– influenced by friendliness vs. indifference or
negative views of serving others/ self-service
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Source: http://www.welcometovietnam.net/flight/vietnam-airlines-ticket.asp
Advertising theory (US)
• Based on information processing, sequences of effects/
involvement theory

• Rational-emotional dichotomy
– Thinking vs. feeling; informational vs. transformational
– Rational = product information, attributes, argumentation
– Emotional = feeling, pleasure, mood

• Relatively consistent relationship between attitude and


behaviour

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Use of emotions in
international advertising
• Universal emotion?
• Many others – cultural bound, many can be confused
o Recognition of facial expressions
o The way to express feelings, or decode ‘Neutral’ vs.
emotions (terms used) ‘Affective’
culture
o Display rules (East Asian not display
negative emotions)

• Cultural backgrounds of expressor and judge interfere


• Recognition of emotions:
o Americans focus on mouth
o Japanese focus on eyes

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Standardisation of
advertising message
 High visual content
 Salient logo, symbols https://www.youtube.com/watch?v=1EH6mq3wUr8

 Greater use of sound (music, jingles)


rather than linguistic cues

 Use of international celebrities https://www.youtube.com/watch?v=sVx1kQ0RioE

 Global availability and same usage


(globalness)  GCCP https://www.youtube.com/watch?v=Xdn_5vDuuSk

 Specific cultural cues


https://www.youtube.com/watch?v=70dewyADNZA
(foreignness)  FCCP
All images in this presentation are used for educational purposes. Fair dealing.

Source: Hollensen
(2010) 19
Adaptation of advertising
message

 Large part of message=spoken/written


Source: https://pixabay.com/photos/drink-coca-cola-soda-glass-cold-647063/

 National personalities https://www.youtube.com/watch?v=ezMhEqdmWhY

https://www.youtube.com/watch?v=dCZI9S_Wo9w

 Usage conditions=culture-specific https://www.youtube.com/watch?v=M5Jd_IcUd-k


https://www.youtube.com/watch?v=gl0KwRkxKE8
https://www.youtube.com/watch?v=8X66PEcvYio

 Use of humour https://www.youtube.com/watch?v=yIutgtzwhAc

 Aligns with LCCP strategy


Remember:

Positioning strategy can be hybrid (for example, GCCP-LCCP, or


FCCP-LCCP, and so on  aligns with integrating standardised
and localised cues/signals)
Advertising effect sequences and
involvement theory

• “learn-feel-do” High-involvement
• “feel-learn-do”

• “do-learn-feel”
Low involvement
• “do-feel-learn”

• “feel-do-learn” Japanese model


trust, relationship comes first

(Source: de Mooij, 2010)

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Advertising across cultures

• Message appeal:
– Reflect values, motivations
– Emotional versus rational appeals,
Sex/ Humorous/ Fear appeals
– Comparative advertising
• Executional styles:
– verbal v. visual, facts v. symbols,
direct v. indirect
 wording & tone, use of celebrities
– lesson, demonstration, drama,
metaphors, pure entertainment [1]

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Advertising regulations

• Special products
– alcohol, tobacco,
fast food
• Vulnerable audience [2]

• Product types,
ads content,
& scheduling
restriction
[3] [4]

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Public Relations objectives

 Raising awareness in the firm & its products (focus on the


firm)

 Government lobbying

 Crisis management & dealing with negative publicity

 Creating & maintaining corporate reputation & prestige with


international and/or local stakeholders

 All stakeholders have different expectations

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Public relations
Possible methods: Possible audiences:

 Sponsorship/prizes  Employees
at events  Shareholders
 Press releases  Suppliers
 Announcements  Customers
 Lobbying  General public
 Community projects  Governments
 Financial markets

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Direct marketing, personal selling
Direct Marketing
 Not only a market entry method
 Tele-marketing, direct mail, e-marketing

Personal selling
 Crucial in B2B markets but important for some B2C
too (for example, technology, luxury product sales)
 CRM
 High value contracts/high technical knowledge –
home or host country salesforce?
 Specialist skills/training & motivation
 Negotiation: local vs head office driven? 27
WOM & viral marketing

• WOM Information obtained from those we know or talk directly to


tends to be more reliable and trustworthy than that received through
more formal channels.  on social network

• Viral marketing
– create a buzz, customers sending on WORD
WORD OF
OF
MOUTH
MOUSE
MOUTH
MOUSE
recommendations
– particularly suited to the Internet

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https://www.youtube.com/watch?v=eOHAUvbuV4o
All images in this presentation are used for educational purposes. Fair dealing.

UGM (User Generated Media)

• The UGM boom

• How should
firms
respond?

(Source: Berthon, Pitt & Campbell, 2008) 29


All images in this presentation are used for educational purposes. Fair dealing.

Selection of media:
Intl media mix
• Consider media availability, importance, usage, coverage and
preferences  plan the international media mix
• Media diversity and fragmentation:
o Uruguay (3.4m) – 8 newspapers
o Norway (5.2m) – 15 newspapers
o Uzbekistan (31.8m) – 6 newspapers

• Traditional media Source: https://itstillworks.com/hdtv-programming-tv-2225404.html

• Product placement
• New media: internet presence (web 1.0) Source: http://www.specialtycast.com/contact.html

• More recent: social media, WOM, UGM (web 2.0)


• What’s next: augmented reality (web 3.0) 30
All images in this presentation are used for educational purposes. Fair dealing.

Use of traditional media

• Media preferences & relative “Old” media


importance vary: o TV, radio
– TV - Hungary, Portugal and o Newspaper, magazines
Poland o Internet
o Outdoors
– Print - Austria, Finland and
o In-stores
Switzerland. o Cinema
– (Glossy) mags: PDI+, MAS [6]

• Domestic media mix needs


adaptation
Source: https://itstillworks.com/hdtv-programming-tv-2225404.html

– to local habits
– to the target groups media reach

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[5]
Production/cost
considerations

• Quality & availability of print media

• Availability of outdoor media

• Rising & variable cost of traditional media


• Tactical considerations

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All images in this presentation are used for educational purposes. Fair dealing.

Product placement

• Branded products
are placed in a
context usually
without ads
such as:
– Movies
Source: http://www.ibtimes.co.uk/james-bond-heineken-product-placement-324482

– TV shows
– news programmes

Source: https://www.marketing-psycho.com/iron-man-product-placement/
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New media - Web 1.0

• Internet as an ad medium Source: http://www.specialtycast.com/contact.html

• Usage differences reflect interpersonal communication styles


• Internet: access and places of access (UAI, habits)
• Web content created by designers from own culture

Advantages Disadvantages
 Messages changed quickly  (Used to have) limited visual
 Interactivity presentation
 Inexpensive  No audience guarantees
 Leads from other sites  Casual browsing
 Large audience  Irritation possible
 Direct sales possible  Reliance on search engines
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Source: Adapted from Pickton and Broderick (2001), Exhibit 11.3, p. 210.
All images in this presentation are used for educational purposes. Fair dealing.

Social media
[7]

• Social media: the online means of communications, conveyance,


collaboration and cultivation among interconnected people, communities
and organisations (Tuten & Solomon 2013)
– Basic roles culture-bound: Information, Social, Entertainment
– Usage differs across cultures:
– IDV: path to resources (search info); COL: sharing feelings and ideas (more
person-to-person interactivity)
– COL: more blogging, differences in self-disclosure

 Developing vs.
Developed markets
 Social media mix:
WOM, UGM, what else?
[8] 35
All images in this presentation are used for educational purposes. Fair dealing.

Example of a social media mix


Customer enablement across all touchpoints, not just via a PC-based Web browser

(Source: Tuten & Solomon 2013)


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All images in this presentation are used for educational purposes. Fair dealing.

Media of the next generation


• Next step of marketing
communication
– Virtual vs. reality
– Augmented reality
– The race to the latest [9]

technology advancement

[10] [11]
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Choosing agencies

• In-house marketing or agency


• International vs local agencies
Advantages – international agencies Advantages – local agencies

 Consistency  Patchy coverage by international


 Centralised brand image & message agencies?
understanding
 Several services (research,  Desire for local image – leveraging
branding, creative advertising local cultural knowledge
development, media buying etc) –
one point of contact for company  Local agencies more flexible?
(account manager)
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Choosing agencies

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International marketing communications:
Standardisation vs Adaptation decisions throughout the process

40
All images in this presentation are used for educational purposes. Fair dealing.

Source: Melewar et al. 2009, influencing factors on standardisation vs. adaptation decisions
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Images attributions
[1] Foodiggity (2011). Copyright by Foodiggity [Photograph]. Retrieved 21 September, 2014, from Foodiggity
http://www.foodiggity.com/got-milk-the-almost-complete-collection/ Reproduced with permission from the
creator. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

[2] Artiee (2011). Copyright by Artiee [Photograph]. Retrieved 21 September, 2014, from Flickr
https://www.flickr.com/photos/30966132@N04/6206617013/in/photostream/ Reproduced with permission from
the creator. Licensed under the Creative Commons Attribution-NoDerivs 2.0 Generic License.
 
[3] domat33f (2008). Copyright by domat33f [Photograph]. Retrieved 21 September, 2014, from Flickr
https://www.flickr.com/photos/dmnq/2754944348 Reproduced with permission from the creator. Licensed under
the Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic License.
 
[4] Melina Stathopoulos (2009). Copyright by Melina Stathopoulos [Photograph]. Retrieved 21 September, 2014,
from Flickr https://www.flickr.com/photos/chickencat/4127531395 Reproduced with permission from the creator.
Licensed under the Creative Commons Attribution-NonCommercial 2.0 Generic License.
 
 [5] Hajime NAKANO (2005). Copyright by Hajime NAKANO [Photograph]. Retrieved 21 September, 2014, from
Flickr https://www.flickr.com/photos/jetalone/77089719 Reproduced with permission from the creator. Licensed
under the Creative Commons Attribution 2.0 Generic License.
 
[6] rchappo2002 (2011). Copyright by rchappo2002 [Photograph]. Retrieved 21 September, 2014, from Flickr
https://www.flickr.com/photos/rchappo2002/15274650656 Reproduced with permission from the creator.
Licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic License.
 
 [7] Jason Howie (2013). Copyright by Jason Howie [Photograph]. Retrieved 21 September, 2014, from Flickr
https://www.flickr.com/photos/jasonahowie/8583949219 Reproduced with permission from the creator. Licensed
under the Creative Commons Attribution 2.0 Generic License. 42
 
[8] Kris Olin (2012). Copyright by Kris Olin [Photograph]. Retrieved 21 September, 2014, from Flickr
https://www.flickr.com/photos/krisolin/6913210065 Reproduced with permission from the creator. Licensed under
the Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic License.
 
[9] Peter Asquith (2006). Copyright by Peter Asquith [Photograph]. Retrieved 21 September, 2014, from Flickr
https://www.flickr.com/photos/wasabicube/314579743 Reproduced with permission from the creator. Licensed under
the Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic License.
 
[10] sndrv (2010). Copyright by sndrv [Photograph]. Retrieved 21 September, 2014, from Flickr
https://www.flickr.com/photos/sndrv/5034204552 Reproduced with permission from the creator. Licensed under the
Creative Commons Attribution 2.0 Generic License.
 
[11] Loic Le Meur (2013). Copyright by Loic Le Meur [Photograph]. Retrieved 21 September, 2014, from Flickr
https://www.flickr.com/photos/loiclemeur/8699901706 Reproduced with permission from the creator. Licensed under
the Creative Commons Attribution 2.0 Generic License.

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