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Integrated Marketing Communications and

International Advertising

Chapter 16

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

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Chapter Learning Objectives

1. Local market characteristics that affect the advertising andpromotion of products

2. The strengths and weaknesses of sales promotion and publicrelations in global marketing

3. When global advertising is most effective; when modifiedadvertising is necessary

4. The effects of a single European market on advertising

5. The communication process and advertising misfires

6. The effect of limited media, excessive media, paper andequipment shortages, and government regulations onadvertising and promotion budgets

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Introduction

Once a market offering is developed to meet target market

needs, intended customers must be informed of the offering

Integrated marketing communications (IMC) comprises:

advertising

sales promotions personal selling

direct selling, and

public relations

All these mutually reinforcing elements of the promotional mixhave as their common objective the successful sale of a productor service

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Sales Promotions in International Markets

1. Cents-off

2. In-Store Demonstrations

3. Samples4. Coupons

5. Gifts

Sales promotions are marketing activities that stimulateconsumer purchases and improve retailer or middlemen

effectiveness and cooperation

Examples of sales promotion include:

Sales promotions are short-term efforts directed to the consumeror retailer to achieve such specific objectives as consumer-

product trial or immediate purchase

6. Product Tie-Ins

7. Contests

8. Sweepstakes9. Sponsorship of Special Events,

10. Point-Of-Purchase Displays

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International Public Relations

The job consists of not only encouraging the press to coverpositive stories about companies, but also of managingunfavorable rumors, stories, and events

Creating good relationships with the popular press and othermedia to help companies communicate messages to their

publicscustomers, the general public, and governmentalregulatorsis the role of public relations (PR)

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International Advertising

Decisions involving advertising are those most often affectedby cultural differences among country markets

Consumers respond in terms of their culture, its style, feelings,value systems, attitudes, beliefs, and perceptions

Advertisings function is to interpret the qualities of productsin terms of consumer needs, wants, desires, and aspirations,the emotional appeals, symbols, and persuasive approaches

Reconciling an international advertising campaign with thecultural uniqueness of markets is the challenge confrontingthe international or global marketer

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International Advertising (Contd.)

1. Perform marketing research

2. Specify the goals of the communication

3. Develop the most effective message(s) for the marketsegments selected

4. Select effective media

5. Compose and secure a budget

6. Execute the campaign, and7. Evaluate the campaign relative to the goals specified

The basic framework and concepts of international advertisinginclude the following seven steps:

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Global Advertising and the Communications Process

1. An information source. An international marketing executive with aproduct message to communicate

2. Encoding. The message from the source converted into effective symbolismfor transmission to a receiver

3. A message channel. The sales force and/or advertising media that conveythe encoded message to the intended receiver

4. Decoding. The interpretation by the receiver of the symbolism transmittedfrom the information source

5. Receiver. Consumer action by those who receive the message and are thetarget for the thought transmitted

6. Feedback . Information about the effectiveness of the message that flowsfrom the receiver (the intended target) back to the information source forevaluation of the effectiveness of the process

7. Noise. Uncontrollable and unpredictable influences such as competitiveactivities and confusion that detract from the process and affect any or all ofthe other six steps

The international communications process consists of the following seven steps:

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Legal Constraints

1. Advertising campaigns must comply with legalregulations around the world

2. Comparative advertising is heavily regulated in otherparts of the world

3. A variety of restrictions on advertising of

pharmaceuticals is restricted in many countries4. Advertising on television is strictly controlled in manycountries, e.g., in Germany, for example, commercialsmust be spaced at least 20 minutes apart and total ad timemay not exceed 12 minutes per hour. Commercialstations in the United Kingdom are limited to 7 minutes

per hour

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Linguistic Limitations

Advertising from culture does not often translate well inanother culture due to differences in languages and dialects

For example, Chrysler Corporation translated its U.S. themethat advertised Dart Is Power. To the Spanish, the phraseimplied that buyers sought but lacked sexual vigor

The Bacardi wanted to sell the drink in Germany calledPavane, but it is perilously close topavian, which meansbaboon

A company marketing tomato paste in the Middle East foundthat in Arabic the phrase tomato paste translates as tomatoglue

In Spanish-speaking countries words have different meanings.The word ball translates in Spanish asbola, which meansball

in one country, revolution in another, a lie or fabrication inanother, and is an obscenity in yet another Even pronunciation causes problems: Wrigley had trouble

selling its Spearmint gum in Germany until it changed thespelling to Speermint

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Constraints to Advertising Campaigns

There are many problems in communicating a firms product offerings to itsvarious target markets around the world. Some of these include:

1. Cultural Diversity: Ad campaigns and product brand names beingcommunicated may mean different things to different cultures

2. Media Limitations: in some underdeveloped countries, there is a shortage ofadvertising 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 toadvertise on conventional advertising media; other countries may have lowquality paper to print advertising

4. Coverage: In large, less developed countries advertising media such astelevision may not be geographically dispersed

5. Lack of Market Data: This makes it difficult to reach specific target markets6. Direct Mail: Even if direct mail is available, it may not work due to highilliteracy rates in some countries

7. The Internet: Though advertising via the internet is fast increasing, the WWWis not widely available in many countries where computers are consideredexpensive

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