Week 8_3XPP

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MKTG 7506: International MarketingManagement

27 April 20

Week 8: International Marketing

Communications

International MarketingCommunications

Read: C & G Chapters 16 & 17Agarwal (1995)Papavassiliou & Stathakopoulos (1997)Welch et al. (1998)

Dr Ravi Pappu

Office: Room 416 Colin Clark Building

Phone: 3346 8089

Email: [email protected]

Consultation: Monday 3-4 PM; Room 416 Colin Clark

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Learning Objectives

Factors in International Communication

Standardization Vs Adaptation

Publicity and Public Relations

International Sales Promotion

Personal Selling

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Opening Cases P&G in Japan

Proctor & Gambles biggestadvertising blunder inJ apan.

Stork delivering babiesstory - PAMPERS baby

nappies in US market.Used the identicalcampaign in Japan.

J apanese folklore wasdifferent babies in giantpeaches floating on theriver - P&G now usesexpert mom.

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Communications

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The Communications Process

(a) Sender

(b) Encoding

(c) Channel/Message

(d) Decoding

(e) Receiver

(f) Noise/Interference

(h) Feedback

The role of the shared field of experience

(Onkvist, 2004)

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Source Encoding Information Decoding Receiver

Sourcesenvironmentalfactors

Receiversenvironmentalfactors

Noise

The Process of Communication Onkvisit (2004)

Sources field of experience Receivers field of experience

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Principles of Effective IM Communication

(Onkvisit and Shaw, 2004)

The message must reach a persons sense organs.

Must not contradict a persons cultural norms.

The sender create a message that arouses the

receivers need.The message must gain control of the receiversbehaviour at the right place and time.

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Factors in International Communication

Culture

Language

Education

Media infrastructure

Government regulations

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Communicating in High and Low

Context Cultures

Culture affects what people like and dislike - how theyinterpret signals and symbols.

Attitudes towards and biases against particular productsand services.

High and low context cultures (Hall, 1976).

High context (a) Interpretation of message depends oncontextual cues.

Low-context distinctive written text or spoken word lesser emphasis on contextual cues.

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Communicating in High and Low

Context Cultures

Communication style

High context implicit style emphasis on theoverall feel and outlook implied images andsublime messages high context cultures are

slower in internet adoption.

Low context explicit - actual product with largeamount of information Internet.

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Low context

High context Japanese

Arabian

Latin American

Spanish

ItalianEnglish (UK)

French

English (US)

Scandinavian

German

Swiss EXPLICIT

IMPLICIT

Cultural Context - Revisited

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Communicating in H and L context Cultures

(Dulek et al, 1991)in HC cultures

(a) Conversational principles (1) more aboutthe company (2) clarity of the message (3)identify with recipient (4) attention to receiver.

(b) Presentation princi ples (1) respect theculture (2) more formal structured approach(3) patience with cultures.

(c ) Written word principles

(1) structure the message according toculture (2) symbols, brand names need to beadjusted.

Cultural barriers religion, political issues

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Language and Education

Language

Translations - no guarantee that the same messageis being communicated.

Meaning is culturally influenced - context

Multiple languages.

Simple carelessness, multiple meanings and localslang (Ricks, 1993) (example).

Education

Different media need different levels of education.

Low literacy use of visuals.

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Highlight - Five Different Ways of Saying

TIRES in Spanish

Spanish word Country

Cauchos VenezuelaCubiertas Argentina

Gomas Puerto Rico

Llantas Mexico, Peru,Guatamala, Colombia,and elsewhere inCentral America

Neumaticos Chile

Source: Hanni, Ryans & Vernon (1995)

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Highlight - Language Related Issues

(Ricks, 1993)

Simple carelessness

Original slogan: It takes a tough man to make atender chicken.

Translation: It takes a sexually excited man tomake a chick affectionate.

Multiple meanings Parker pen campaign in Brazil Avoid embarrassment use Parker pens.

Local slang

US slogan in Britain you can use no finer napkinat your dinner table.

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Media Infrastructu re

Availability, reach, cost and effectiveness of media.

Overall quality of media Available? If so in the sameform.

Advance booking lag may restrict the use of media.Constraints on the production of commercials.

The issue of reach is important in comparingeffectiveness between countries.

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Highlight

Until recently France limited commercials to adaily total of 18 minutes, but now has extendedto 12 minute per hour per TV channel.

South Koreas two government owned TVchannels do not broadcast between midnight to6.00am commercials are limited to 8% ofairtime and are shown in clusters at thebeginning and the end of a program.

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Government Regulations

Media use regulation - to protect the countrys citizensfrom undesirable influences.

Self-regulation and code of ethics.

Types of advertising regulations

Country-specific regulations

Advertising of vice productsand pharmaceuticals

(b) Comparative advertising

(c) Content of advertising message

(d) Advertising targeting children

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Advertising Targeting Children

Quebec, Canada simply prohibit TV stations airingchildrens ads.

In Finland children cannot speak or sing the name ofa product in commercials.

In Turkey children are only are only allowed to watchTV ads with parental guidance.

Italy bans commercials in cartoon programs thattarget children.

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Pull and Push Strategies in

International Promotion

Pull strategies

(a) Advertising usage, form, content differences(b) Publicity and public relations

Push strategies

(c) Sales promotion e.g. trade shows

(d) Personal selling e.g. trade missions

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Message Standardization Vs Adaptation

Definition of an standardized advertisement: an adthat is used internationally with virtually no change inits theme, copy, or illustration (other than translation)

Recent view

Three schools of thought (Onvisit& Shaw, 2004)

standardization

Individualisation (adaptation)

compromise

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Standardization

Faster communication convergence of art,literature, media availability, tastes, thoughts, religiousbeliefs supports standardisation.

Even when people are different, basic physiologicaland psychological needs are same - Success of adcampaign depends on motivation pattern.

Difficulties in modifying some ad campaigns.

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Arguments for Standardization

Nature of product : industrial or high-tech (versusconsumer product)

Global consumer segments

Home market positioning strategy is meaningful is hostmarket

The need for consistent image

Cross-fertilization

Similar political, cultural and legal environments

Authority for setting policies for message content iscentralised

Scale of economies

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Adaptation

Ad campaigns must make note of the differencesamong countries (e.g. culture, taste, media,discretionary income). The case of Shiseido usedonly Japanese models.

Arguments for adaptation

(a) cultural differences (b) advertising regulations(c) Firms objectives in a particular market (d)nature of the product (e) Not-invented-here (NIH)syndrome.

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Compromise

Recognizes local differences

Cautions against wholesale or automatic use ofstandardization

Some global marketing campaigns can be used inspecific countries under certain conditions

Pattern standardisation

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Publicity and Public Relations

News releases - press conferences overseas toannounce a new product - a different strategy or a

significant linkage with a local interest.

Sponsorships - relate a company or a brand to anevent, in order to benefit from the exploitablecommercial potential associated with that activity.

Public relations activities - resulting messagescome across as news, and therefore have morecredibility than advertising.

Agencies availability of Intermediaries.

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International Sales Promot ion

Trade shows

provide the opportunity for meeting potentialpurchasers without making an appointment.

can take a number of forms.

open to the public or to the trade only.

a combination of trade-only days and one or twopublic days at the end.

May be classified general or specialized.

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Sales Promotion

Trade shows

Effective participation

Research

Attracting an audienceInfrastructure issues

Visitor motivations

Measuring outcomes (sales direct sales andindirect impact)

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Trade Shows - Arguments for Participation

Some products need to be seen by prospectivecustomers

Produces goodwill and allows periodic cultivation ofcontacts

Finding an intermediary may be the best reason

Best way to contact government officials

Market research intelligence gatheringopportunities

Opportunities for a sizeable number of prospects

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Trade Shows - Arguments Against

Participation

High costs government subsidies.

Difficulty in choosing the appropriate trade fair resource implications.

Coordination problems for larger exporters withmultiple divisions J oint participation requires jointplanning.

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Sales Promotion

Technical seminars

particularly useful when marketing a product orservice overseas that embodies a technology new tothat market

Must have education and information value

Ideal when there is degree of uncertainty abouttechnology and after sales services

Target influencers than purchasers

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Personal Selling

Trade missions

A series of blind dates! mediated by government

agenciesCan be inward and outward

Outward trade missions can be:

General

policy-related

product-category

project-related SMEC in Iraq

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Personal Selling

Trade missions

Disadvantages

the possible existence of competitors on themission

the long planning time required

the fact that in many cases participation is byinvitation only

fewer contacts can be made than at trade displays

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Personal Selling

Trade missions Advantages

facilitates acquisition of information on theoverseas market

enables access to decision makers at a seniorlevel

puts mission members in contact with plannersand regulators

generates publicity for the membersproducts/services

assists in relationship-building

leads to synergy

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C i ti

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References

Agarwal, M. (1995), Review of a 40-year debate ininternational advertising: Practitioner and academicianperspectives to the standardization/adaptation issue,

International Marketing Review, Vol. 12(1), pp. 26-48.

Welch, D.E., Welch, L.S., Young, L.C. and Wilkinson,I.F. (1998), The importance of network in exportpromotion: Policy issues, Journal of InternationalMarketing, Vol. 6(4), pp. 66-82.

Papavassiliou, N. and Stathakopoulos, V. (1997),Standardization versus adaptation of internationaladvertising strategies, European Journal of Marketing,Vol. 31(7), pp. 504527.

Week 8_3XPP

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