Integrated Marketing Communications and International Advertising

Chapter 16

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Integrated marketing communications

…the whole is greater than the sum of the parts

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

Sponsorship Personal 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

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

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

• 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)

AdvertisingAdvertising 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

AdvertisingAdvertising 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 MediaReach

Percentage of people exposed to adFrequency

Number 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

noiseSource: 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 Advertising2. 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:

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 AgenciesImportant questions

Should 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?