Chapter 12: Marketing Communication

1. Chapter 12:Marketing Communication David harbison Monique Hodges Laura Mansilla

2. The Marketing Communication Process Sender (Encodes Message) Message Message Channel Receiver (Decodes Message) Noise Communication Outcome Feedback SOURCE: Adapted from Terence A. Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications. (Mason, OH: South-Western, 2003), 82. Reprinted by permission.

3. International Negotiations -Biggest dangers faced in international negotiations: Parochialism Stereotyping -The use of internet in International Negotiations can help the exporter to: Overcome distances Minimize social barriers Obtain instant feedback Negotiate from home base

4. Stages of Negotiation Process -The process of international business negotiations can be divided into five stages: The offer Informal meetings Strategy formulation Negotiations Implementation

5. How to Negotiate in other Countries -A combination of attitudes, expectations, and habitual behavior influences negotiation style. -Approaches used for adjusting to the style of the host-country negotiators: Team assistance Tradition an customs Language capability Determination of authority limits Patience

6. How to Negotiate in other Countries Negotiation ethics Silence Persistence Holistic View The meaning of agreements.

7. Steps in Formulating Marketing Communications Strategy 0

8. Communications Tools • Business/Trade Journals and Directories • Business (The Economist, Financial Times) • Trade Journals (Industrial Distribution, Chemical Engineering) • Directories (The Export Yellow Pages) • Direct Marketing • Direct mail • Telemarketing

9. Communications Tools • Internet • Web presence is crucial. • Trade Shows and Missions • European tradition. • 16,000 trade show create $50 billion in business worldwide. • Pros and Cons for Trade Shows • Missions: Trade, Seminar, Solo exhibitions, video/catalog exhibitions • Virtual Trade Shows • Personal Selling • High costs but immediate feedback.

10. Levels of Exporter Involvement In International Sales SOURCE: Framework adapted from ReijoLuostarinen and Lawrence Welch, International Operations of the Firm (Helsinki, Finland: Helsinki School of Economics, 1990), chapter 1

11. Chapter 18:Global Promotional Strategies David harbison Monique Hodges Laura Mansilla

12. Planning Promotional Campaigns -Consists of the following seven stages: Target audience Campaign objectives Budget Media Strategy Message Campaign Approach Campaign effectiveness

13. Planning Promotional Campaigns -The target audience The expectations of various audiences have to be researched to ensure the appropriateness of campaign decision making. -Campaign objectives Can be divided into overall global and regional objectives as wells as local objectives. -Budget The promotional budget links established objectives with media, message, and control decisions.

14. Budgeting Methods for Promotional Programs

15. Media Strategy The major factors determining the choice of the media vehicles to be used are: The availability of the media in a given market The product or service itself Media habits on the intended audience

16. Restrictions on Advertisements for Specific Products in Selected European Countries

17. Global Media • Print Media • Regional editions of publications • Broadcast Media • Panregional radio stations • Satellite television • Internet • Advertising in global media is dominated by: • Airlines, financial services, telecommunications, automobiles, and tobacco

18. The Promotional Message • Modular approach • Develop multiple broadcast and print ads • Provides local operations with cost savings • Localizing international symbols • Local stars accompanying international stars • Adjusting ad campaigns to suit moral standards • International advertising agencies • One agency allows ensures consistency and allows for coordination

19. The Campaign Approach • Outside services • Advertising agencies are most significant • Choice of agency depends largely on coverage • Most large companies use more than one agency • Major concern for “mega-agencies” is conflict • Local agencies will survive due to government regulations

20. The Campaign Approach • Decision-Making Authority • Range from complete centralization to decentralization. • Centralization: search for economies of scale, synergies, and brand consistency. • Decentralization with regional input: proximity to market, flexibility, cultural sensitivity, and faster response time. • Central coordination with local input: Ford Motor Company • How can advertising quality be improved at the local level?

21. Coordinated Approach to Panregional Campaign Development

22. Coordinated Approach to Panregional Campaign Development

23. The Campaign Approach • Measurement of Advertising Effectiveness • Pretesting of copy appeal and recognition, to posttesting of recognition, all the way to sales effects. • Measurable: sales, awareness, executive judgment, intention to buy, profitability, and coupon return. • A.C. Nielsen • Testing is expensive. • Measuring is difficult in mass markets such as Europe.

24. Other Promotional Elements • Personal Selling • Good for high-priced items like industrial goods. • Field sales managers play a pivotal role. • Sales teams require specific and intensive training. • Sometimes it is hard to establish a sales force (i.e. Japan) • Sales Promotion • Does not fall under advertising, personal selling, or publicity. • Examples are couponing, sampling, and consumer education. • Must gain support of local retailer population. • Regulations make global sales promotions difficult to launch.

25. Regulations Regarding Premiums, Gifts, and Competitions in Selected Countries

26. Public Relations • Image- the way a multinational corporation relates to and is perceived by its key constituents. • Internal Public Relations • Creates appropriate corporate culture. • Japanese, wa (we) • External Public Relations • Focused on interaction with customers. • Publicity: securing editorial space (i.e. Royal Princess).

27. Reactive Public Relations • Unanticipated Developments • Crisis Management policies: • Openness about corporate activities • Preparedness to utilize the tremendous power of the multinational corporation in a responsible manner and to counter criticisms swiftly. • Integrity • Clarity • Consumer-Generated Media (CGM) • Sponsorship Marketing

28. Questions?