communication decisions for international markets-10.02

8/7/2019 Communication Decisions for International Markets-10.02

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Communication

Decisions forInternational Markets


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Firms convey a set of messages to targetcustomers through a communication channel withthe objective to not only create a favourable

response for its market offerings but also toreceive market feedback on a regular basis

The marketing communication mix involvesadvertising, sales promotion, public relation,

personal selling, and direct and inter-activemarketing, as depicted in Figure 1

A firm generally uses a mix of all these promotiontools after considering the firms strategy and

marketing requirements Advertising is a paid form of communicationcarried out through newspapers, magazines, radio,television, and other mass media by an identifiedsponsor


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Besides, it is also a non-personal form ofcommunication

Sales promotion comprises short-term marketing

measures which stimulate quick buyers action andresult in immediate sale of the product

It includes rebates and price discounts, firmscatalogues and brochures, samples, coupons, and

gifts As a part of its image-building exercise, a firm

invests in public relations

It may include sponsorship of sports and cultural

events, press releases, and even lobbying atgovernment level

Direct marketing is also an effective marketingcommunication tool wherein a firm has direct

inter-action with the customers


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Personal selling involves direct selling by firmssales force and is considered to be a two-waymethod of marketing communication, which helps

in building strong customer relationships.


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Advertising Salespromotion

Personal Public

selling relations

Direct and

Inter-activemarketing

Customer

Figure 1, International Marketing Communication Mix


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Communication mix for an international market isinfluenced by the following factors:

Market size

Cost of promotional activity

Resource availability, especially finances

Media availability

Type of product and its price sensitivity

Mode of entry into international market

Market characteristics.


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Consumer Response HierarchyModels

The objective of any marketingcommunication strategy is to induce thetarget customer segment to buy the product

This can be achieved by conveying someaspect of the product to the consumers

The conveyed message is expected tochange the customers attitude towards the

product and make them buy it These response stages are known ascognitive, affective, and behavioural stages,respectively

Figure 2 depicts two such widely usedhierarchy models.


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Attention

Interest

Desire

Action

Awareness

Interest

Evaluation

Trial

AdoptionAIDA Model

Innovation-Adoption Model

Figure 2, Consumer Response Hierarchy Models


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AIDA Model

In this approach the main objective of a firm is tomake the customers aware of the product andseek their attention through effective marketingcommunication, such as through effectiveadvertising

The awareness would, in turn, generate interestabout the product in the consumers followed by

the desire to own The entire process would ultimately lead to

purchase.


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Innovation-Adoption Model

Another model on consumer adoption, developedby Rogers, especially in reference to a newproduct is the innovation-adoption model, depictedin Figure 2

In the innovation-adoption model, a firm createsawareness and generates interest before thecustomer gets a chance to evaluate it first hand

The firm also gives a final trial to the new productbefore it is actually adopted by the customers.


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Process of International MarketingCommunication

Marketing communication aims at conveying afirms message as effectively and accurately aspossible

The basic process of marketing communication, asdepicted in Figure 3, involves the followingconstituents:

1. Sender 6. Receiver

2. Encoding 7. Noise3. Message 8. Feedback

4. Medium

5. Decoding


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Foreign Country

Context

Decoding

Home Country

Context

Encoding

Receiver(Customer)

Sender(Firm)

Medium

Message

Feedback

Noise

Figure 3, Process of International Marketing Communication


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1. Sender

It refers to the marketing firm which isconveying the message.


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2. Encoding

Before a message can be sent, it has to beencoded

Putting thoughts, ideas, or information into asymbolic form is termed as encoding

Encoding ensures the correct interpretation of

message by the receiver, who is often theultimate customer

The use of words, signs, or symbols should besuch that they become familiar to the target

audience Firms often use symbols for encodingmessages that have a universal meaning

Language and cultural issues need to be takencare of while encoding the message.


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3. Message

A message may be verbal or non-verbal, oral,written, or symbolic

A message contains all the information ormeaning that the sender aims to convey

A message is put into a transmittable formdepending upon the channels ofcommunication

From a semiotic perspective, every marketingmessage has three basic components: anobject, sign or symbol, and an interpretant

The object is the product that is the focus of the

message (e.g., Marlboro cigarettes)


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The sign is the sensory imagery that representsthe intended meaning of the object (e.g., theMarlboro cowboy)

The interpratant is the meaning derived (e.g.,rugged, individualistic, American).


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4. Medium

The channel used to convey the encodedmessage to the intended receiver is termed asmedium

The medium can be categorized in the

following manner :

4A. Personal

4B. Non-Personal


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4A. Personal

It involves direct inter-personal (face-to-face)contact with the target group

Sales people serve as the channel ofcommunication as they deliver the sales

message to the target customers Friends, peers, neighbours, and family

members constitute social channels

Word of mouth communication is a verypowerful source of personal communication.


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4B. Non-Personal

These are channels which convey messagewithout any inter-personal contact betweenthe sender and the receiver

Since the message is communicated tomany persons at a time, these channels are

also referred to as mass media or masscommunication channels

The non-personal channels ofcommunication may further be broadly

classified as follows: Print media: Newspapers, magazines,

direct mails, etc.

Electronic media: Radio and Television.


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5. Decoding

It is the process of transforming the sendersmessage back into thought

Decoding is highly influenced by the self-reference criteria (SRC), which is unintended

reference to ones own culture.


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6. Receiver

It is the target audience or customers whoreceive the message by way of reading,hearing, or seeing

A number of factors influence how the message

is received

These include the clarity of message, theinterest generated, the translation, the sound ifwords, and the visuals used in the message.


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7. Noise

The unplanned distortions or interference of themessage is termed as noise

A message is subjected to a variety of externalfactors that distort or interfere its reception

Technical snags, such as problems in tele-communication or signals, both at the sendingand the receiving end may cause distortion

The competitors promotional activities oftencreate confusion in the minds of the customersand are a major source of noise.


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8. Feedback

In order to assess the effectiveness of themarketing communication process, feedbackfrom the customers is crucial

The time needed to assess the communication

impact depends upon the type of promotionused

For instance, an immediate feedback can beobtained by personal selling, whereas it takesmuch longer time to assess the communicationeffectiveness in case of advertisements

In international markets, a firm has to

communicate with the customers and the


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channel intermediaries located in overseasmarkets that have considerably different marketingenvironment characteristics

The differences in cultural environment, economicdevelopment of the market, regulatory framework,language, and media availability make the task ofinternational marketing communication much morecomplex compared to domestic marketing.


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Marketing Communication

Strategies

On the basis of promotional focus on marketintermediaries in the distribution systems or the

end customers, a firm has the following twooptions in marketing communication strategies:

1. Push Strategy

2. Pull Strategy


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1. Push Strategy

In push strategy, the promotional programmeis primarily directed at the marketintermediaries in the distribution system

It aims to motivate the market intermediariesto stock, promote, and sell the products to theultimate customers, as depicted in Figure 4

The market intermediaries, such as the

distributors, wholesalers, and retailers, areoffered a variety of incentives to push theproduct in the market

Generally, in push strategy, the distributors

are motivated to promote the product to the


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wholesalers, who, in turn, promote the product tothe retailers, who finally push the product to theconsumers

The tools used in push strategy include personalselling and sales promotion, contests forsalespersons, and trade shows.


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FirmChannel

intermediary

End

customer

MarketingCommunication

Productpush

MarketingCommunication

Productpush

Figure 4, Push Strategy


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Push strategy is usually found to be more effectiveunder the following situations:

Lack of product differentiation

Weak brand identity or brand clutter Low brand loyalty

Difficulty in appreciation product benefits

Industrial products Institutional sales

Lack of access to advertising media

Low promotional budget

Short and direct marketing channels Low wages, i.e., cost of employing salespersons is

lower than the advertising cost through thedistribution channels


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Besides, commoditization of brands has made itdifficult for the customers to differentiate betweenthe competing brands, making push strategy more

effective The biggest drawback of push strategy is that

hardly any brand loyalty is created even afterspending huge sums of money

Besides, the channel intermediaries become moredemanding and ask for increase in their margins tosupport the product

In case the demand for a product is low, amarketer has to accede to the demands of channelintermediaries

This triggers an unhealthy competition among the

marketers to offer more and more margins,


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which further squeezes their promotion budgetsfor advertising

In developing countries, the size of the retailoutlets is small and a majority of them aremanaged by one or two persons only

Therefore, the customers come in direct contact

with the sellers and often seek their opinionabout the product

The margin of the seller on a particular productoften determines his opinion

Under such situations, push strategy serves asan effective promotional tool.


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2. Pull Strategy

The process of motivating the customers tobuy the product from the retailers throughpromotional programmes, as given in Figure5, is referred to as full strategy

A retailer asks for a product from a wholesalerand the wholesaler asks for the product froma distributor who gets the product from thefirm.


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FirmChannel

intermediaryEnd

customer

Productrequest

Productrequest

Marketing communication

Figure 5, Pull Strategy


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Pull strategy is more effective in the followingsituations:

Perceived product differentiation

Strong brand identity

High brand loyalty

High-involvement product category

High promotional budgets

Self-service in retail system, i.e.,supermarket culture

The promotional techniques used for pull strategyinclude advertising and sales promotion campaigndirected at consumers, such as discounts, giftvouchers, samples, etc.


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In retail outlets where self-service is pre-dominant,pull strategy is more effective

Besides, pull strategy also facilitates long-termbrand loyalty among the customers

However, in view of the market conditions and thefactors mentioned above, a firm may use a judicial

mix of pull and push strategies for marketpromotion.


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Tools for International MarketingCommunication

An international marketing communicationstrategy may use a variety of marketingtools, such as advertising, direct marketing,sales promotion, personal selling, publicrelations, trade fairs, and exhibitions

Each of these tools is discussed in detail in thischapter.A. Advertising

B. Direct MarketingC. Personal SellingD. International Trade Fairs And

ExhibitionsE. Trade Missions

F. Sales Promotion


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1. Advertising

Any paid form of non-personal communicationby an identified sponsor is termed asadvertising

It can be for a product, service, an idea, ororganization

The non-personal means, such asnewspaper, magazine, TV, or radio can

transmit the message to a large number ofindividuals often at the same time

Advertising is the most widely used form ofpromotion, especially for mass marketing.


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1A. Standardization vs Adaptation

1A.1 Standardization

1A

.2A

daptation


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1A. Standardization vs Adaptation

An international marketing firm may opt for astandardized advertising strategy or maycustomize it depending upon the needs ofvarious markets

The arguments in favour of standardizedcampaign include economy of scale anduniform projection of a firms image in globalmarkets

The adaptation of advertising may be eitherdue to mandatory reasons, such asregulatory framework or due to competitivemarket response.


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1A.1 Standardization

Using the same advertising strategy acrossthe country is termed as standardization

However, the extent or degree ofstandardization varies

Ad with no change: Same advertisementis used with no change in theme, copy, orillustration except for translation

Benetton Group Spa, the Italybased global

clothing retailer, uses global advertisingcampaigns with the same theme, The UnitedColours of Benetton,

However, Benettons ad has shocking photos


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to attract public attention on global issues relatedto environment, terrorism, racism, and HIVMany of Benettons ad campaigns have been

criticized in a number of countriesBenetton, however, is keen on continuing with itsshock advertising campaigns as long as the admanages to create and sustain the interest of thecustomers.Ad with changes in illustration: When ads usedifferent models, generally local models, fordifferent countries but maintain the same ad copyand theme, it is also considered standardized

advertisingVirginia Slims, the worldwide market leader inwomens cigarette, initiated a worldwide campaignin which it used local models in different countries

Ad i i l i l i i i i


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Advertising plays an important role in positioning abrand

Virginia Slims was always positioned as a

womens cigarette right from its inception in 1968 It later became an international market leader

Initially Philip Morris positioned Marlboro as awomens cigarette in 1924 based on the slogan

Mild as May Its marketing communication programmes featured

stylish women posed in plush settings to targetfemale audience

During World War II, Marlboro was re-introducedas a more softer filtered brand and was targetedat addicted male smokers who were afraid ofgetting lung cancer


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However, this repositioning did not work in themarket as filtered cigarettes were considered to befeminine

It was only in 1955 that Marlboro made abreakthrough by re-positioning itself as a menscigarette and eventually became a global marketleader

Lux has maintained a single advertising conceptworld-wide

It promotes the brand through cine stars

Lux has been positioned as the beauty soap offilm stars

However, adaptations have been made in differentcountries depending upon the local context


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Universal appeals in international advertising areused in the following situations:

Superior Quality: The promise of superior

quality may be used universally

For instance, BMW uses the slogan ultimatedriving machine world-wide.

New Product/Services: The world-widelaunch of a product under the sprinkler approach isgenerally coupled with global communicationcampaign

For instance, Microsoft used such campaignswhile launching Windows 95 and Windows 2000.

Country of Origin: Brands in productcategories which have a strong country stereotype


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often leverage their route by emphasizing onmade in. cachet

The country of origin is often emphasized in case

of luxury and fashion products.

Celebrities: Celebrities with universal appealare engaged for global products, whereas the

regional or national celebrities are employed forregional communication

Swiss watchmaker SMH International promoted itsOmega brand with a TV commercial featuring

actor Pierce Brosnan after the release of JamesBond movie Golden Eye

Sachin Tendulkar and Aishwarya Rai have beenused in a number of advertising campaign in the

south asian region.

Lif t l A l b f l b l l


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Lifestyle: A large number of global upscalebrands use lifestyle ads to target customersregardless of the country.

Global Presence: In order to enhance thebrands image, firms project their global presenceby communicating to the target audience that theproduct is used world-wide and by using it they

also would become a part of global customerscommunity.

Market Leadership: Brands with a strongcountry image often send a signal to the targetaudience that it is the most preferred brand in theirhome markets

The fact that the company is a market leadernationally, regionally, or internationally gives out astrong message to the customers.

C I Fi l if


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Corporate Image: Firms also use a uniformmarketing communication approach to project acertain uniform corporate image.

Ad ti t d di d d ti i t t i


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Adopting a standardized advertising strategy isgaining wider acceptance due to a large number offactors, which are as follows:

The preferences and lifestyles of consumers areincreasingly becoming homogeneous, enablingpsychographic segmentation of markets that canbe targeted through a uniform message

The consumer behaviour is increasingly gettingsimilar in the urban centres across the world

The city dwellers exhibit similar working, shopping,

travelling, and lifestyle patterns across countries A sharp increase in international travel among

customers has made standardized advertisingstrategy quite popular among the companies

I t ti l h f di h t l i i


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International reach of media, such as televisionprogrammes, magazines and some of thenewspapers, has also boosted the use of

standardized advertisementsFor instance, programmes on channels like ZeeTV, Star Plus, ESPN, Discovery, BBC, CNN, etc.are telecasted and watched across the globe

Standardized advertising approach facilitatescreation of uniform corporate image

A firm achieves economies of scale if it follows

standardized advertising approach.

Th j b fit f t d di d d ti i


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The major benefits of standardized advertisinginclude economies of scale and projection of uniformimage in international markets

Such an approach can be adopted in the followingmarketing situations:

The target market is segmented on the basis of

psychographic profile of the customers, such astheir lifestyles, behaviour, and attitudes

Cultural proximity among the customers

Technology intensive or industrial products

Similarity in marketing environment, such aspolitical, legal, and social.

1A 2 Adaptation


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1A.2 Adaptation

Modification in the advertisement message,

copy, or content is termed as adaptation orcustomization

However, the emphasis on communicationstrategies varies between markets

For example rich lather in bathtub and foamyexperience is stressed in the ad campaignsby Lux in Europe where it is primarily sold asa liquid soap, which may not be the case in

other countries Lux is mainly a shampoo in China, Taiwan,

and the Philippines, soap in India, andeverything from a soap to a shampoo in

Japan

H th b fit f th k t d d t


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Hence, the benefits of the marketed productare emphasized in each of the markets

Communication adaptation is often needed in

international markets due to:

Difference in cultural values among thecountries

Difficulties in language translation Variations in the level of education of the

target groups

Media availability

Social attitudes towards advertising, and

Regulatory framework of the target market

A th t b h i i tl i fl d b


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As the customer behaviour is greatly influenced bythe cultural factors in the target market, it is difficultfor a standardized communication strategy to be

effective across different country markets Therefore, to convey a similar concept across

various cultures, a firm has to adapt its advertisingcampaigns in different markets in view of thedifferent cultural contexts

For instance, in products with image-basedpositioning, such as Pepsi, an ad in Western

countries may depict scantily clad women in swimsuites on a beach or in a bar, which is not feasibleto adapt in Islamic countries due to the statutoryframework and the cultural aspects

Pepsi customizes its advertising campaigns to


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Pepsi customizes its advertising campaigns todepict its core values of youthfulness (spirited,young, up-to-date, and out-going) associated with

generatioNext. As celebrities enjoy a demi-god status in India,

Pepsi uses a number of celebrities, such as ShahRukh Khan, Saif Ali Khan, Sachin Tendulkar,Amitabh Bachhan, Kajol, and Rani Mukherjee, inits ads.

2 Direct Marketing


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2. Direct Marketing

Selling products and services to the customerswithout using any market intermediary istermed as direct marketing

It deals with the customers on one-to-onebasis, unlike the conventional mass-marketing

approach that deals indirectly with customers Direct marketing has little dependence on mass

promotion or advertising, whereas conventionalmarketing relies heavily on mass promotion

Technological advances, such as proliferationof telecommunication and informationtechnology, have facilitated direct marketingacross the world

The rapid growth in credit card usage has


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The rapid growth in credit card usage hasincreased payments over the Internet, which hasfacilitated international sales transactions

Direct marketing offers the following benefits overconventional marketing: Provides direct contact with the customers Facilitates finalization of sales deals through

inter-action

Helps in mass customization of a firmsmarket offerings rather than mass marketing

Facilitates effective and deeper marketsegmentation

Eliminates waste market coverage due to itsselective reach Personalized service Helps in building customer relationships.

2A Direct Mailing


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2A. Direct Mailing

2B. Door-to-Door Marketing

2C. Multi-level Marketing

2A Direct Mailing


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2A. Direct Mailing

It involves sending letters, brochures orcatalogues, e-mails faxes, or even productsamples directly to the consumers, who may,in turn, purchase the product through mail.

2B Door to Door Marketing


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2B. Door-to-Door Marketing

Receptivity of door-to-door marketing variesconsiderably among the cultures

In Japans even motorcars and stocks aresold door to door

Amway, Avon, and Tupperware are some ofthe worlds largest firms that rely on door-to-door marketing world-wide.

2C Multi level Marketing


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2C. Multi-level Marketing

It involves a revolutionary distribution systemwith little spending on advertising andinfrastructure

In multi-level marketing, a core group of

distributors is recruited who generally paythe company some registration fee and areintroduced to the company by a sponsor

Each of these distributors picks up a product

worth a certain sum, for instance, Rs 1,000,and then sell it directly to the customers

The mark-up is generally pegged at 25%-30%

However the distributors can charge a lower price


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However, the distributors can charge a lower priceif they reduce their commission

These core distributors appoint another level of

distributors and get additional commission from thesales made by them

Some of the major global firms involved in multi-level marketing are Amway, Avon, Oriflame, MaryKay Cosmetics, etc.

The major benefits of multi-level marketing involverapid, continuous, and automatic growth of

distribution networks Besides, it is a quick and cost-effective marketing

method

As the marketing system depends upon the

continuity of the network any snap in its linkage


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continuity of the network, any snap in its linkagecreates major setbacks for the entire distributioncum sales system

Since the direct sellers repeatedly approach theprospects, it makes the prospects quite irritated

The high-pressure tactics used to push the productmay adversely affect the brand image

The firm has limited control over the sales force interms of prices offered

After economic liberalization in the Peoples

Republic ofChina, multi-level marketing firms,such as Amway, Avon, and Mary Kay Cosmeticsgrew rapidly

By 1997, Amway had approximately 80,000 sales

representatives who generated $ 178 million in


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representatives who generated $ 178 million insales, and Avon had nearly 50,000 representativeswho produced $ 75 million

It was reported that some other companies usingthe so-called pyramid scheme were cheatingconsumers

Consequently, the Chinese government banneddirect selling in April 1998

As a result, Avon was forced to open its own retailstores.

3 Personal Selling


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3. Personal Selling

It involves personal meeting of a firmsrepresentatives with the customers

As the languages, customs, and businessculture are different in different international

markets, personal selling becomes verycomplex

Generally, firms employ local salespersons for

personal selling in international markets.

Personal selling is generally employed in markets


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Personal selling is generally employed in marketswhere:

Wages are low compared to advertising

Thus, personal selling is highly cost-effectivein low-income countries Customers are multi-linguistic, such as in

India, and a single language ofcommunication hardly succeeds, in such

cases personal selling plays an importantrole

Countries where literacy level is low,personal selling becomes an important tool

to communicate In oriental cultures, the sellers one-to-onecontact with the customers pays, as itfacilitates the establishment of strongcustomer relationships

An international firm should also provide periodic


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An international firm should also provide periodicinputs to distributors sales force, such as throughperiodic trainings, sales literature, and the facility

of direct mailing This way a firm makes its tasks easier and

improves efficiency

Personal selling has a special role to play in theJapanese market due to some peculiar socio-culturalfeatures, which are as follows:

Individuality and independence are not as highly

valued in Japan as they are in the WestBesides, Japanese marketers and salespeople areless inclined to take credit for success or blameother for failures

Japanese companies rarely use non-


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Japanese companies rarely use nonfinancial incentives to recognize, praise, orreward salespeople for performing well

Good performance is simply expected, andspecial praise is deemed unnecessary

Loyalty to ones employer is a fundamentalcharacteristic of Japanese society;commissions are generally an unnecessarycomponent of compensation packages

Salespeople consider it their duty to

generate business for their companiesIt is the honourable thing to do and nospecial compensation is required for doingwhat duty demands.

4 International Trade Fair and


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4. International Trade Fair and

Exhibitions

Trade fairs and exhibitions are the oldest andthe most effective methods to exploremarketing opportunities

Trade fairs are organized gatherings wherethe buyers and the sellers meet and establishcommunication.

Trade fairs may be of the following types:


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Trade fairs may be of the following types:

4a. General Trade Fairs

4b. Specialized Trade Fairs

4c. Consumer Fairs

4d. MinorTrade Fairs

4e. Solo Exhibitions

4f. Catalogue Shows

4a General Trade Fairs


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4a. General Trade Fairs

All types of consumer and industrial goodsare exhibited in trade fairs

Such trade fairs are open both for generalpublic and business-persons

Generally, in less-developed countriesgeneral trade fairs are the only option.



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Such trade fairs focus on a specific industrialor trade sector, such as apparels or food

Specialized trade fairs are targeted atbusiness visitors but usually are also openfor the general public on specific days and at

specific times Specialized trade fairs provide excellent

opportunity to explore contacts ininternational markets, such as importers,

agents, distributors, etc. Even established firms participate in

specialized fairs in order to establishcontacts.

4c Consumer Fairs


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4c. Consumer Fairs

Generally targeted at individual customers,the consumer fairs focus on householdgoods.

4d Minor Trade Fairs


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4d. MinorTrade Fairs

These are fairs held at a small level, such astoy or shoe fairs.



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Exhibitions held by a specific country or

group In these exhibitions, a number of dealers of a

particular product field put up the show in ahotel, hall, or lounge

Solo exhibitions may be international,regional, national, or provincial in terms of itsscope and participants

Solo exhibitions provide opportunity forbuyer-seller interface

International trade fairs offer the following benefits:


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g

They provide an opportunity to get information onthe competing products, their attributes, prices,

etc. in the market They help in assessing customers response to a

firms products

They serve as a meeting place for potentialimporters, agents, and distributors in theInternational market

They provide publicity and generate goodwill

They provide an opportunity to meet the existingclients in the market and assess their performancevis--vis competitors

A firm needs to consider the following parameters


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g pwhile selecting an international trade fair:

Compatibility of the fair with the firms product

profile and marketing objectives Location of the fair

Visitors and participants profile

Performance of the fair in terms of the salesconcluded, the type of exhibitors, and the numberof visitors during the previous years

Experience of previous business exhibitors

Cost of participation vis--vis other promotionalalternatives

In order to generate business and to make the


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gparticipation in an international trade fair meaningful,the following issues need to be taken care of:

Visit the overseas market in advance, one year tosix months before the fair, to gather informationabout the markets, business dynamics, and to getoneself familiarized with the market

Carry out a market analysis in advance in terms of

the social, cultural, linguistic, economic, legal, andpolitical issues that influence the marketingopportunities

Before participation one should prepare as

detailed a plan of display as possible Prepare exhibition materials, such as literature,promotional CD ROMs, videotapes, media kits,business cards, display items, signage, andpromotional products

Immediate follow up after participation in the


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fair is crucial to achieve business generation

Therefore, all queries should be answered

within a weeks time after the trade fairThe effectiveness of the firms participation in tradefairs may be assessed from the following:

Securing business leads and contacts

Volume of sales order Securing contacts

Finding international trade partners

Conducting market and competitor research

Acquiring information about new products,processes, and technology

Meeting with existing customers

C

reating awareness about the firm.

4f. Catalogue Shows


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4f. Catalogue Shows

As participation in trade fairs involvesconsiderable cost and time, the display ofcatalogues, sometimes accompanied withtrade samples, provides an opportunity to

create market awareness about the firmsproducts

Generally, the government organizations andindustry associations actively promote such

catalogue shows.

5. Sales Promotion


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Sales promotion entails various tools that areused as short-term incentives to induce apurchase decision

Due to increased competitive intensity in themarket, firms make use of sale promotion to

get short-term results Besides, the buyers also expect some

purchase incentives in view of competitorsofferings

It is estimated that manufacturers as a groupspend about twice as much on tradepromotion as they do on advertising, and anequal amount is spent on consumerpromotions

The promotional offer has a local focus and


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pgenerally varies from country to country

The basic objectives of consumer promotion

programmes are as follows: To solicit product enquiries

To generate trials for new or related products

To generate additional sales To motivate customers for repeat purchase

Sales promotion can be categorized as follows:


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5a. Trade Promotions

5b. ConsumerPromotions

5a. Trade Promotions


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These are the promotional tools aimed at the

market intermediaries Due to increase in market competition and

inter-firm rivalry, firms often offer promotionalschemes to the market intermediaries to

enhance the feeling of loyalty among thecustomers and push their products in themarket

Various tools used for sales promotion

include offering margins higher than thecompetitors, incentives for not keepingcompetitors products, organizing jointpromotions, providing financial assistance for

promotional budgets, etc.

5b. ConsumerPromotions


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These are the promotional tools directed atthe ultimate consumers

Various tools used for consumer promotioninclude discounts, free samples, contests,

gifts, gift coupons, festival sales, specialprice offers for bulk purchase, etc.

6. Public Relations


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In overseas markets, it is increasinglybecoming important for a firm to be aninsider

Public relations aim at building corporate

image and influencing media and other targetgroups to have a favourable publicity

Various methods used for public relations are asfollows:

Sponsorship of sports, cultural events, etc. Press release Contribution to awards and prices for

sports and other events

Publicity of a firms promotional campaign


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Lobbying at government level

Public relations may aim at internal as well as

external communication directed at employees,shareholders suppliers of inputs and components,customers, and the general public

Indian firms, such as JK Tyres, also sponsor sportsevents in Europe, as a part of its public relationactivity

A firm attempts to create links with the media,

politicians, bureaucrats, and other influentialgroups and persons in the target market to gainpositive publicity

In high-income countries, professional firms offer

specialized public relations services, whereas in


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low-income countries the word of mouth mode ofpublicity is widely used for spreading a message.

Factors Influencing International


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Factors Influencing International

Communication Decisions

As the marketing environment across countriesvaries considerably, there are various factors that

influence international marketing communication.A. Culture

B. The Cultural Contexts

C. Language

D. Education

E. Media Infrastructure

F. Government Regulations

A. Culture


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It is a well-known fact that the culture of acountry influence the customers behaviourimmensely

Customers are quite sensitive about the

cultural aspects depicted in marketingcommunications

Advertising themes incorporating socialacceptance, mutual dependence, respect forelders and traditions, harmony with nature,use of seasons, innovation and novelty,distinctive use of celebrities, changing familyrole are often effective

Let us now illustrate, some of the marketingbl d i i t ti l k t hi h d


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blunders in international markets which occurreddue to the faulty understanding of differentcultures on the marketers part

Parker Pen Company successfully usedthe slogan Avoid Embarrassment UseQuink in the US

The product was marketed in LatinAmerica with the Spanish translation EviteEmbarazos Use Quink of the aboveslogan that un-intentionally meant AvoidPregnancy Use Quink resulting in an

embarrassment for the company Procter & Gamble showed an animated

stork delivering Pampers diapers in its adcampaigns in the United States

The same ad copy was used in Japan, only


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the language was changed

However, this ad did not work in Japan

The subsequent market research revealedthat, unlike the Western folklore, storks,according to the Japanese folklore, are notexpected to deliver babies

On the contrary, Japanese people believethat it is the giant peaches that float on theriver that bring babies to the deserving

parentsSubsequently, Procter & Gamble changedthe theme of the ad campaign to expertmom, a nurse who is also a mother theme

Muhammad Ali is immensely popular in the


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Middle East

One of the car manufacturers used

Muhammad Ali in its ad campaign for theregion

The ad theme was, I am the greatest

The ad backfired and offended the Muslimswho regard only the God as great

Islamic countries impose certain restrictions on thepresentation of women in TV commercials

The most stringent laws regarding presentation ofwomen are in Saudi Arabia where the TVcommercials can show only a veiled woman or herback

For advertising Pert Plus Shampoo, Procter &G bl h d t d t l t t i


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Gamble had to adopt an unusual strategy inSaudi Arabia

Since the focus had to be on the prospects hair,the ad showed the hair of a woman from theback and another veiled woman from the front.

B. The Cultural Contexts


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The culture has broadly been divided as high-context and low-context culture

Oriental countries, such as Japan, China,India, and Middle East generally have high-

context cultures where the contextualbackground of communication is extremelysignificant unlike low-context countries

Therefore, marketing communication in high-context culture has to be more implicit thanexplicit

The cultural contexts can be applied to internationali ti i th f ll i


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communication in the following manners:

B1. Conversational PrinciplesB2. Presentation Principles

B3. Return Word Principles

B1. Conversational Principles


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In high-context cultures, the customers look

keenly at the details of the sales executivesand the companyTherefore, any promotional or advertisingcampaign in such cases should aim at

establishing the firms credibility andbackground There should be clarity in presentation

Jargons and slangs should be avoidedOne should speak slowly and without a

strong accent, unlike Western markets Focus on identification with the international

recipients by way of using phrases or wordsfrom the recipient language or use of

historical or contemporary illustrations

Body language and tone of voice should bei t t ith th


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consistent with the message.

B2. Presentation Principles


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One should show respect for cultures thatare more formal

It needs structured presentation in terms offormat and content of communication

It should give due respect and appeal todifferent foreign audience

One should be patient with the pace ofdifferent cultures

The length of message is often viewed as anindication of the importance the promoterattaches to its subject.

B3. Return Word Principles


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In low-context cultures, communication isgenerally direct, to the point, and immediatelystated

However, emphasis needs to be given on

politeness and decorum of the message,besides, proper translation in high-contextcultures is very important

It needs modifications in slogans or branding

so that the message does not offend thetarget audience.

C. Language


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Translation from one language to another iscrucial in international communication

The literal translation may fail to convey thedesired message across the countries due to

cultural factors For instance, the word yes is understood

differently in different countries

In low-context societies, such as the USA andEurope, yes means yes, but in high-contextsocieties, such as Japan, yes means I amlistening to what you are saying and it does

not necessarily mean yes

In Thailand, yes means OK

S ff f


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Such vast differences in the meaning of yes isdue to the fact that in high-context cultures, the

other person is given opportunity to save onesface and direct refusals are hardly appreciated bythe society

Some instances of the translation blunders in

international communication are as follows:

Pepsi used the German translation of theslogan come alive with Pepsi in its ad

campaign in West GermanyHowever, the slogan when translated toGerman actually meant come out of thegrave with Pepsi and failed to generate any

market response from the customers

General Motor translated its slogan Body byFischer to Corps by Fischer in Belgium that


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Fischer to Corps by Fischer in Belgium thatoffended the Belgian customers.

D. Education


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The level of literacy plays an important role indeciding what communication tool andmessage should be used in an internationalmarket

Market segments with lower level of adultliteracy need to be addressed by way of moreaudio-visual content rather than a writtenmessage

It should be ensured that the visuals conveythe desired message rather than the text partof the communication.

E. Media Infrastructure


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Availability of media, that varies widely, ofteninfluences the advertisers options for using aparticular medium

A cross-country comparison of the share ofadvertising expenditure on various mediumsof communication is given in Table 5

It reveals that the advertising expenditure ofprint media in India was 53% compared to59% in UK, 46% in US, 40% in China, and

28% in Mexico, whereas the share ofadvertising spending on TV was 38% in Indiacompared to 29% in UK, 37% in US, 43% inChina, 55% in Thailand, and 57% in Mexico in

2001

The radio spending was highest at 15% in Mexicoand 14% in US compared to merely 2% in


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and 14% in US compared to merely 2% inIndia.

Print TV Radio Other Total

India 53 38 2 8 100


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India 53 38 2 8 100

China 40 43 4 13 100

Mexico 28 57 15 0 100Thailand 32 55 9 4 100

US 46 37 14 4 100

UK 59 29 5 7 100

Table 5, AD Spend Share Global Comparison (2001)

F. Government Regulations


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The regulatory framework of a countryinfluences the communication strategy ininternational markets

The government regulations in various

countries relate to the following issues: Advertising in foreign language

Use of pornography and sensuality

Comparative advertising referring to thecompeting products from rival firms

Advertisements related to alcohol andtobacco

Use of children as models

Ad ti t l t d t h lth f d d


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Advertisements related to health food andpharmaceuticals

Some of the advertising regulations in variouscountries include the following:

In Malaysia, the Ministry of Informationsadvertising code states that women shouldnot be the principal object of anadvertisement and should not be used toattract sales unless the advertised product isrelevant to women

The Ministry of Information in Saudi Arabiaprohibits any advertising depicting unveiledwomen

Portuguese law prohibits sex discrimination orthe sub-ordination or objectification of women


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the sub-ordination or objectification of womenin advertising

Use of foreign words and expressions whenFrench equivalents can be used areprohibited in France

Norway prohibits any advertising that portrays

men or women in an offensive manner orimplies any derogatory judgment of either sex

Most Arab countries prohibit explicit depictionof sensuality.


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communication decisions for international markets-10.02

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