2201150MBA

Communication Decision
for
International Markets
Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Lecture Objectives:
• To understand the concept of international marketing

communication mix
• To explain the process of communication in international
markets
• To examine various marketing communication strategies
• To describe various tools of international marketing
communication
• To discuss factors influencing international marketing
communication decisions
• To explain the framework of international product-
promotion strategy
Neglecting nuances of different cultures lead not only to enormous costs
but also to market failures
• Coca Cola was first introduced in China, it was named Ke-

Kou-Ke-La,. Later the company found that the phrase
translated in a Chinese dialect as ‘bite the wax tadpole’ or
‘female horse stuffed with wax’. Subsequently, Coke found a
close phonetic equivalent Ko-Kou-Ko-Le, which can roughly
be translated as ‘happiness in the mouth’ after researching
40,000 Chinese characters.
• Parker’s slogan for its ball point pen, ‘It won’t leak in your
pocket and embarrass you’ also backfired in Latin America
as its Spanish translation meant ‘It won’t leak and make you
pregnant’. The company mistakenly translated ‘embarrass’
into ‘embarazar’ in Spanish.

•Chevrolet’s highly popular US car, Nova failed
miserably in Latin America. Later the company
found that ‘no va’ means ‘no go’ in Spanish. Later it
had to rename its car Caribe for the Spanish
markets.
•The Swedish vacuum cleaner manufacturer Electrolux
introduced the same print ad which had proved highly
successful in Britain with its ‘Nothing sucks like an
Electrolux!’ tagline in the US market . However,
Electrolux found this to be a disaster in the US as in
American culture ‘sucks’ means ‘really bad’, that is,
Electrolux is a ‘really bad vacuum cleaner’.

Process of International Marketing
Communication
Noise
Home Country Foreign Country

Context Context
Encoding Decoding
Medium
Sender Receiver
(Firm) Message (Customer)
Feedback

International Marketing Communication Mix
Sales
Advertising Promotion
Customer
Personal
Public Selling
relations
Direct and
interactive
marketing

Factors Influencing International Marketing
Communication Mix
Market size

Communication Mix
• Cost of promotional activity
Source: www.skysigns.biz/ image/Comp-graph.gif

Communication Mix
• Resource availability, especially finances

Communication Mix
• Media availability

Reasons for Adaptation of International
Marketing Communication
• Media availability

Communication Mix
• Type of product and its price sensitivity

Communication Mix
• Market Characteristics

Fig. 14.7 : World's Top 10 Media Spenders in 2012 (in US $ billions)
12
10
0
Unilever
General Motors
McDonalds
Toyota
Coca-Cola
Nestle
L'Oreal
Volkswagen
Pepsi
Procter & Gamble

Cultural Dynamics
for
International
Communication Decisions

Hofstede’s Dimensions of Culture
• Power Distance (Large or Small)
• The extent to which less powerful members of
institutions accept that power is distributed unequally
- Large
* Blindly obey order of superiors

* Hierarchical organizational structure
- Small
* Decentralized decision making

* Flat organizational structures
• Individualism (vs. Collectivism)
– The tendency of people to look after themselves and their immediate family
only
• Strong work ethic
• Promotions based on merit
• Collectivism
– The tendency of people to belong to groups and to look after each other in
exchange for loyalty
• Weaker work ethic
• Promotions based on seniority

• Uncertainty Avoidance (High or Low)
The extent to which people feel threatened by
ambiguous situations
 High
- High need for security
- Strong beliefs in experts
 Low
- Willing to accept risks
- Less structuring of activities

• Masculinity (Vs. Femininity)
– The dominant values in society are success, money and things
• Emphasis on earning and recognition
• High stress workplace
• Femininity
– The dominant values in society are caring for others and the quality of life
• Employment security
• Employee freedom

High Vs. Low Context Cultures
High Context Low Context
• Long lasting relationships • Relationships are short in duration
• Implicit communication • Explicit communication
• Loyalty to people of authority • Authority is diffused
• Spoken agreements • Written agreements
• Outsiders do not gain entry easily • Outsiders are encouraged to join inner circle

Tools for International Marketing
Communication
Advertising: Any paid form of non-personal communication

by an identified sponsor
Advertising : Standardisation Vs. Adaptation
Standardization: Using the same advertising strategy across the

country.
• Ad with no change
• Ad with changes in illustration

Universal appeals in international advertising are used in situations such as
• Superior quality: The promise of superior quality may be used universally. For
instance, BMW uses the slogan ‘ultimate driving machine’ worldwide.
• New Product/Service: The worldwide launch of a product under the sprinkler
approach is generally coupled with global communication campaign. For instance,
Microsoft used such campaigns while launching its new versions of Windows.
• Country of Origin: Brands in product categories which have a strong country
stereotype often leverage their route by emphasizing on ‘made in …’ cachet. The
country of origin is often emphasized in case of luxury and fashion products.
• Celebrities: Celebrities with universal appeal are engaged for global products,
whereas the regional or national celebrities are employed for regional
communication. Swiss watchmaker SMH International promoted its Omega brand
with a TV commercial featuring actor Pierce Brosnan after the release of James
Bond movie Golden Eye. Sachin Tendulkar and Aishwarya Rai have been used in a
number of advertising campaigns in the south asian region.
• Lifestyle: A large number of global upscale brands use lifestyle
ads to target customers regardless of the country.
• Global Presence: In order to enhance the brand’s image, firms
project their ‘global presence’ by communicating to the target
audience that the product is used worldwide and by using it they
also would become a part of the global customers’ community.
• Market Leadership: Brands with a strong country image often
send a signal to the target audience that it is the most preferred
brand in their home markets. The fact that the company is a
market leader nationally, regionally, or internationally gives out a
strong message to the customers.
• Corporate Image: Firms also use a uniform marketing
communication approach to project a certain uniform corporate
image.

The major benefits of standardized advertising:
• The target market is segmented on the basis of

psychographic profile of the customers, such as their
lifestyles, behaviour, and attitudes
• Cultural proximity among the customers
• Technology intensive or industrial products
• Similarity in marketing environment such as
political, legal, and social

• Differences in cultural values among the countries
Based on careful study of cultural differences, Bank of America has developed targeted
advertising messages for different cultural subgroups, here Asians and Hispanics.
• Difficulties in language
translation
When Nike learned that this stylized “Air” logo resembled

“Allah” in Arabic script, it apologized and pulled the shoes from
distribution.

• Variations in the level of education
of the target groups

• Social attitudes towards
advertising, and

• Regulatory framework of the target market

• Regulatory framework of the
target market.

Cross-Country Adaptation
of Milk Ads

Maxico
Switzerland

German
"One glass of milk is good, but two are better."
Canada
India
Australia
Cross-cultural adaptation of Axe ads
to communicate globally the uniform core theme

Brazil
Portugal
www.rakeshmohanjoshi.com
Dr. Rakesh Mohan Joshi
India
Saudi Arabia
Hypermedia Advertising:
The advent of the Internet and the World

Wide Web has fostered a ‘hypermedia’
environment making it possible to deliver
targeted messages to specific audiences.
This environment allows ‘non-linear’
communication using hyperlinks with
search and retrieval processes to collect
information
Measurement of hypermedia advertising
Measurement method Definition Comments
Hit count Measures the number of items a page is requested Provides information on actual hits, but there could be
but not necessarily seen or displayed at the user’s multiple hits counted for every click of the mouse or
browser page refresh. Records activity regardless of the viewer’s
location, such as workplaces, homes, schools, or other
countries. Provides no information on users.
Page view Tracks the number of individual pages sent to Gives no indication of how many users receive or view
Web viewers pages and no profile data on users
Click-through Tracks the number of times an online ad is Gives no information about the customers. Customers
clicked on who click through may dump a page before it loads.
Unique visitors Allow tracking by the IP address of the viewer Many people use the same IP address to access a site
Reach Measures sampled group’s visits (if 25% of Requires the use of panels or surveys. This can pair
sample has visited site, reach obtained 25%) information on the individual’s background with
individual behaviour. These panels may be narrow in
scope and not account for all Web surfers, such as those
at work or from other countries
New measures Include linking individuals by demographic data, May allow online, constant measures of who visits a site
loyalty, site behaviour, and other measures and how long they stay at a site.

Direct Marketing: Selling products and servcies to the
customers without using any market intermediary
Direct Mailing: Sending letters, brochures or catalogues, e-
mails, faxes, or even product samples directly to the consumers,
who may, in turn, purchase the product through mail.
Door-to-Door Marketing:
Multi-level Marketing: Involves a revolutionary distribution
system with little spending on advertising and infrasture.
Personal Selling: Involves personal meeting of a firm’s
representatives with the customer. As the languages, customs
and business cultures are different in internatonal markets

International Trade Fairs and Exhibitions
Trade fairs are organized gatherings where the buyers

and the sellers meet and establish communication.
• General Trade Fairs
• Specialized Trade Fairs
• Consumer Fairs
• Minor Trade Fairs
• Solo Exhibitions
• Catalogue Shows

Trade Missions: A group of a business people
travelling abroad to promote their business by meeting
foreign companies or foreign government officials.
Sales Promotion: Various tools that are used as
short-term incentives to induce a purchase decision.
Public Relations: Aim at building corporate image
and influencing media and other target groups to have
a favourable publicity.

International Product Strategies
Product
Don’t change Adapt Develop new
product product product
Promotion
Don’t Straight Product

change adaptation adaptation
promotion Product
Invention
Adapt Communication Dual
promotion adaptation adaptation

THANKS

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Communication Decision

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

• To understand the concept of international marketing

• Coca Cola was first introduced in China, it was named Ke-

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Home Country Foreign Country

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Source: www.skysigns.biz/ image/Comp-graph.gif

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

* Blindly obey order of superiors

* Decentralized decision making

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

High Context Low Context

• Long lasting relationships • Relationships are short in duration

• Implicit communication • Explicit communication

• Loyalty to people of authority • Authority is diffused

• Spoken agreements • Written agreements

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Advertising: Any paid form of non-personal communication

Advertising : Standardisation Vs. Adaptation

Standardization: Using the same advertising strategy across the

• Ad with changes in illustration

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

• The target market is segmented on the basis of

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

When Nike learned that this stylized “Air” logo resembled

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

• Regulatory framework of the target market

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

to communicate globally the uniform core theme

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

The advent of the Internet and the World

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Trade fairs are organized gatherings where the buyers

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Don’t Straight Product

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

Dr. Rakesh Mohan Joshi www.rakeshmohanjoshi.com

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