International Marketing Communications

Purposes of Marketing Communications

Not only informs, but is also used to differentiate the sellers products/services May also be effective in affecting the price elasticity of demand (non price competition)

Marketing communications strategy of a firm must be coordinated and linked with concepts such as target segments, positioning, differentiation, and image
Requires a closely coordinated approach

Communication Objectives
What response is sought to move the customer closer to a purchase decision?
3 categories of marketing communication objectives:
telling the market about a new product

Informative

explaining how a product works correcting false impressions building the company image

Reminder

reminding consumers where to buy it maintaining its top of mind awareness increasing satisfaction of recent buyers

building brand preference

Persuasive

changing customers perceptions of product attributes and their importance persuading the customer to purchase now

Marketing Communications
Informs, persuades and reminds Is part of the marketing mix Includes all the means by which a company communicates directly with potential customers. Attempts to influence feelings, beliefs, or behaviour.

Basic Communication Elements

A message A source of the message A communication channel A receiver

Communication process components:

Encoding Decoding
Response Feedback Noise

The Communications Process

communications requires a channel, with a sender and a receiver, to handle the message a message is first encoded by the sender the communications channel is then used to deliver the message to the sender the sender decodes the message, based on his or her frame of reference and experience may be a need for a response and feedback the process can be interrupted by noise

The Process
ENCODING THE MESSAGE Create an ad, display, or sales presentation

MESSAGE CHANNEL Select the media or other vehicle to carry the message

DECODING THE MESSAGE Receiver compares message to frame of reference MESSAGE AS RECEIVED Knowledge, beliefs, or feelings of receiver changed

MESSAGE AS INTENDED A promotional idea in marketers mind

NOISE Competing ads, other distractions

FEEDBACK Impact measured using research, sales, or another measure

RESPONSE Ranges from simple awareness to purchase

Inside the Communications Process

The act of encoding allows that messages can take many forms. The methods of transmitting a message are limited only by the imagination and creativity of the sender.

How the message is decoded depends on its form and the capability and interest of the recipient.
Without measurable objectives, the effectiveness of a message cannot be evaluated.

Considerations in Designing Marketing Communications Mix

Target market Readiness to buy, knowledge, liking, preference, conviction (belief) Purchase Geographic scope Type consumer or middleman Concentration

More Considerations
Nature of the product Unit value Degree of customization Presale and post sale service Stage of the product life cycle Amount of money available for promotion

Push or Pull Strategy

A push strategy directs communication efforts at channel members; a pull strategy directs promotion at the end consumer Many products, such as business products, are promoted with a push strategy, involving personal selling and use of trade promotions Most consumer products would rely more heavily on a pull strategy where promotion is directed at the consumer to stimulate demand

Choosing a Push or Pull Strategy

A push strategy is directing the communication primarily at the middlemen that are the next link forward in the producers distribution channel. A pull strategy has the communication directed at the end users primarily consumers.

An Illustration
Producer Wholesaler Retailer Consumer

PUSH STRATEGY

Producer

Wholesaler

Retailer

Consumer

PULL STRATEGY

Product flow

Communication effort

Marketing communication strategies

message strategy
information content creative form

media strategy
medium used aperture

Message strategy
information content
appropriate for stage in purchase process depth of information must be suitable
for level of involvement for level of cognitive effort

creative strategy
informational, rational emotional, transformational

Types of messages
factual comparative celebrity fear sex humor

Message content or creativity?

elaboration likelihood model central route emphasizes content
higher involvement significant cognitive effort

peripheral route emphasizes creativity

lower involvement less cognitive activity

Media strategy
message through the right medium at the right time medium used
must support message strategy integrated media

aperture
must deliver at appropriate time in purchase process interactive media to allow consumer to solicit information at preferred time

Influences upon International Media Choice.

There are a number of factors that will impact upon choice and availability of media such as: 1. The nature and level of competition for marcoms channels in your target market. 2. Whether or not there is a rich variety of media in your target market. 3. The level of economic development in your target market (for example, in remote regions of Africa there would be no mains electricity on which to run TVs or radios).

Influences upon International Media Choice.

4. The availability of other local resources to assist you with your campaign will also need to be investigated (for example, sales people or local advertising expertise). 5. Local laws may not allow specific content or references to be made in adverts (for example, it is not acceptable to show naked legs in adverts displayed in Muslim countries).

A lot depends upon the purpose of the international campaign. What are your international marketing communications objectives?

Media Choice Marketing Communication Mix Advertising

Any paid form of non-personal presentation by an identified sponsor Outdoor Magazines Television Cinema Radio

Newspapers

Directories

Journals

Marketing Communication Mix

Public relations
Protect and/or promote a companys image/products

Annual reports

Sponsorship

Events

Press relations

Corporate image Lobbying

House magazines

Marketing Communication Mix

Sales promotion
Short-term incentives to encourage trial or purchase

Rebates/Price discounts Competitions Samples

Gifts Coupons Catalogues/brochures

Marketing Communication Mix

Direct marketing
Direct communications with individuals to obtain an immediate response

Direct mail/database marketing

Telemarketing

Internet marketing

Marketing Communication Mix

Personal selling
Personal presentations

Sales presentations Trade fairs and exhibitions

Target Audience
Awareness Knowledge Liking Preference Conviction
Totally unaware, know of brand name only, aware of a few benefits/attributes Little, some or extensive knowledge Degree of liking ranging from strongly dislike - indifferent like very strongly Extent to which customers prefer one brand/product over another Degree of certainty that buying the product is the right thing to do Intention to purchase, timing of purchase, purchase amount etc.

Purchase

Consumer response to communication

two perspectives
hierarchy of effects brand experience

complementary perspectives

Advertising exposure Awareness

Knowledge
Liking/Attitude Preference Trial Repeat purchase/loyalty

The Hierarchy of Effects

reflect the cognitive, affective, and conative components

Brand experience
purchase processes are complicated and complex
different paths through the process

consumers exposed to many messages messages should be integrated

so consumers can use information to think, feel, act
in whatever order is appropriate

Tactical decisions
TV commercials are sandwiched together in a string of 10-50 commercials within one station break in Brazil National coverage can mean using as many as 40-50 different media Specialised media reach small segments of the market only In Germany, TV scheduling for the entire year must be arranged by 30th August

 In Germany, no guarantee that commercials intended for summer viewing will run in that period In Vietnam, advertising in newspapers and magazines will be limited to 10 % of space and 5 % of time, or three minutes and hour on radio or TV

Public policy issues

fairness
perception and learning and deceptive advertising

equity
background characteristics

Regulation in Marketing Communications

Federal Role: Canadian Radio-television and Telecommunications Commission (CRTC) It looks at broadcast advertising. Health Protection Branch Deal with drugs, cosmetics, etc. communications Some drugs cannot be advertised due to worries about self-diagnosis. Industry Canada Oversees various acts, including Ccompetition Act.

More Regulations
Private Organizations:

Many media refuse to accept certain ads. Industry codes for Advertising Standards, Advertising to Children, etc.

References
ocw.kfupm.edu.sa/user/MKT022/Lecture8.ppt
www.busi.mun.ca/tclift/1201/9fms_pp18.ppt http://www.marketingteacher.com/Lessons/lesson_international_mar keting_promotion.htm ocw.kfupm.edu.sa/user/MKT022/marketing%20communication.pp t