Integrated Marketing Communications and International Advertising
Chapter 16
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Integrated Marketing Communications (IMC)
IMC consists of:AdvertisingSales PromotionsTrade ShowsPersonal Selling
• Usually short term efforts that are meant to stimulate immediate purchases
Direct SellingPublic Relations
• Can be good or bad press– Bridgestone/Firestone Tires
Some communication tools
Advertising
Sales promotion
Directmarketing
Publicityand PR
SponsorshipPersonal selling
Different tools serve different purposes... …but boundaries
blurred
Communication tools: the promotional mix
Advertising
Sales promotion
Directmarketing
Publicityand PR
Sponsorship Personal selling
short-term incentives
to encourage sales
non-personal communication by an identified sponsor, transmitted to target audience via (mass) media
creating, developing direct relationships with individual
customers
Making“news”; building goodwill, understanding
between organisations & publics
Informing, persuading potential customers through
personal communication
supporting event, person, etc, to enhance sponsor’s
awareness, image, etc.
etc..
Sales Promotions in International Markets
1. Cents-off2. In-Store Demonstrations3. Samples4. Coupons5. Gifts
• Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation
• Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation
Examples of sales promotion include:Examples of sales promotion include:
• Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase
• Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase
6. Product Tie-Ins7. Contests8. Sweepstakes 9. Sponsorship of Special Events,10. Point-Of-Purchase Displays
International Public Relations
• The job consists of not only encouraging the press to cover positive stories about companies, but also of managing unfavorable rumors, stories, and events
• The job consists of not only encouraging the press to cover positive stories about companies, but also of managing unfavorable rumors, stories, and events
• Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of public relations (PR)
• Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of public relations (PR)
Advertising
Advertising has been used for centuries.U.S. advertisers spend more than $237 billion each year; worldwide spending approaches $470 billion.Advertising is used by:
Business firmsNonprofit organizationsProfessionalsSocial agenciesGovernment
Advertising
Advertising plays a pivotal role in world commerce and in the way we experience and live our lives. It is part of our language and our
culture…It is both a complex communication process and a dynamic
business process.
O’Guinn et al (2003) Advertising and Integrated Brand Promotion, Ohio: South-
Western, p8
AdvertisingGlobal Advertising
7 Steps in International Advertising• 1. Perform marketing research• 2. Specify the goals of the
communication• 3. Develop the most effective message• 4. Select effective media• 5. Compose and secure a budget• 6. Execute the campaign• 7. Evaluate the campaign relative to the
goals specified
AdvertisingAdvertising Strategies and Goals
Standardization with local customization• Where standardization can occur, companies gain in
economies of scale, but must alter the advertising appeal to each unique culture
Product Attribute and Benefit Segmentation• Different cultures may seek the same benefit from the
primary function of the product (a car’s primary function is to drive from one point to another); but differences occur when some features are valued over others across cultures (types of car stereos, safety equipment, after sale services, etc) .
Regional Segmentation• Where it is possible, advertising will continue to be
segmented and standardized by region (European countries, or Latin American countries).
Selecting Advertising Media
ReachPercentage of people exposed to ad
FrequencyNumber of times a person is exposed to ad
Media ImpactThe qualitative value of a message exposure through a given medium
AdvertisingThe International Communication Process (7 steps):
1. An information source 2. Encoding• The message from the source converted into
effective symbolism for transmission to a receiver.
3. A message channel• The sales force and/or advertising media4. Decoding
• The interpretation by the receiver of the symbolism transmitted from the information source.
AdvertisingThe 7 Steps in Creating Message (the international communication process)
5. Receiver• Consumer action taken by receivers
6. Feedback• Effectiveness of message
7. Noise• Uncontrollable and unpredictable influences
A model of communication
Source encodes decodes Receiver
Messagefield of experience
field of experience
feedback
noise
Source: adapted from W. Schramm (1971) “How communication works”, in Schramm & Roberts (eds), The process and elements of mass communication
Constraints on Advertising1. Legal Constraints•Varies from one country to another
where limits can be on:–Types of products/services that can
or can not be advertised (cigarettes, alcohol..)
–Amount of time given to advertise products/services on TV, radio etc.
–Who the advertising can be targeted to (children, etc)
Constraints on Advertising
2. Linguistic Limitations3. Cultural Diversity4. Media Limitations5. Production and Cost Limitations
Examples– Crossing Borders 16.3 pg. 489; 16.4 pg 491
Constraints to Advertising Campaigns
• There are many problems in communicating a firm’s product offerings to its various target markets around the world. Some of these include:
• There are many problems in communicating a firm’s product offerings to its various target markets around the world. Some of these include:
1. Cultural Diversity: Ad campaigns and product brand names being communicated may mean different things to different cultures
2. Media Limitations: in some underdeveloped countries, there is a shortage of advertising media such as radio stations, print media (newspapers, magazines), and television stations, cable TV, and satellite TV
3. Production and Cost Limitations: In some markets costs are prohibitive to advertise on conventional advertising media; other countries may have low quality paper to print advertising
Constraints to Advertising Campaigns
4. Coverage: In large, less developed countries advertising media such as television may not be geographically dispersed
5. Lack of Market Data: This makes it difficult to reach specific target markets
6. Direct Mail: Even if direct mail is available, it may not work due to high illiteracy rates in some countries
7. The Internet: Though advertising via the internet is fast increasing, the WWW is not widely available in many countries where computers are considered expensive
Media Planning and AnalysisWhen advertising internationally, the company must consider the following:
1. Availability•What media is available
2. Cost3. Coverage4. Lack of market data•Reliable statistical information or research
on target audiences…
Media Planning and AnalysisDifferent types of medias used:
NewspapersMagazinesRadio and televisionSatellite and cableDirect MailThe internetOther (billboards, cinemas, trucks, ships, etc)
Advertising Agencies
Important questionsShould global, local or combination of both types of advertising agencies be used?• Exhibit 16.5 pg. 507 “World’s Top
Advertising Agency Organizations”
How much (legal) control should be placed on advertisers?