international env for imc

8/2/2019 International ENV for IMC

1/22

THE INTERNATIONAL

ENVIRONMENT FORPROMOTION

andIMC

7.1


2/22

Cultural Communications

Culture - Total Way of a People, the Social Legacy the

Individual Acquires from His or Her Group

Culture is Typically Invisible to Those Who are Immersed In It,

Making Communication Across Cultures Difficult

7.2


3/22

Importance of International Communication

Complex Social, Political & Economic ChangesAffect International Communications Environment.

International Developments Relevant to the Rise inInternational Commercial Communications:

Development of Trading Blocs - May be Prelude toa Rise in Nationalism

Loosening of Political and Economic Constraints

7.3


4/22

Importance and Rise of International

Communication(cont)

Liberalization of the Flow of Labor and Increase in

movements of Peoples Across Borders Growing Size of Ethnic Groups From Elevated Birth

Rates

Rise of Cultural Borders and Barriers even asEconomic Barriers Begin to Fall

7.4


5/22

Overcoming Cultural Barriers in

International Promotion

Barriers to Creating Successful International Promotions

Ethnocentrism Self-Reference Criterion

7.5


6/22


7/22

Overcoming Cultural Barriers in

International Promotion (cont)

Cross-Cultural Research Helps Overcome Barriers

Secondary Data - Data Gathered by Someone Elsefor Some Other Purpose

Primary Data - Specific Data Collection Unique to aPromotional Situation

Economic Conditions

Demographics Characteristics

Values

Custom & Ritual

Product Use & Preference

7.7


8/22

Challenges in International Advertising

Creative Challenge

Media Challenge

Media Availability & Coverage

Media Costs & Pricing

Regulatory Challenge

7.8


9/22

International Markets

Prefer Different Creative

Executions

7.9


10/22

Challenges in International Sales Promotion,Direct Marketing and e-Commerce

CHARACTERISTICES OF THE PRODUCT

Product Prevalence & Use As Competitive Environment Becomes More

Complex, Advertising Designed to DifferentiateBrands will Become More Predominant

Products Moving into Growth Stage will Need to beDifferentiated

7.10


11/22

Challenges in International Sales Promotion,Direct Marketing and e-Commerce (cont)

LEVEL OF ECONOMIC DEVELOPMENT

All Forms of Production & Direct Marketing are Applicable inHighly Industrialized Markets

In Less Developed Countries - Lack of Wide Range ofConsumer Goods & Low Income Make Promotion a Non Issue

Few Competitors Serve these Markets

Low Literacy Make Communication Difficult w/Print Media

Without TV, Radio & Newspaper, Direct marketing isUndermined

Unsophisticated Mail Systems

7.11


12/22


LEVEL OF ECONOMIC DEVELOPMENT (cont)

Newly Industrialized MarketsBetter Environment for

Promotional ToolsMust be Managed Carefully

Consumer Income RisesMore Consumer Goods areIntroduced and Succeed

As Media Proliferate, Sales Promotions and Direct

Marketing can be Introduced Based on Market-by-Market Assessment

7.12


13/22


STRUCTURE OF TRADE CHANNELS

Highly Developed Distribution & Retailing SystemsTrade Channel Members

Demand Support or Carry Marketers Brand

Trade Allowances, Incentives, Point-of-Purchase Displays & Sampling

Must Have the Means to Handle Coupon Redemption or Premium Distributions

Less Developed Trade ChannelsMay Not be Able to Use Traditional PromotionalTechniques

Fragmentation of Trade Channels Retailers - No Way of Handling Coupons

Some Countries So Small May Not be able to Handle Point-of-Purchase

Trade Show

7.13


14/22

Challenges in International Sales Promotion,

Direct Marketing and e-Commerce (cont)

REGULATIONS

Regulation of Promotion, Direct Marketing, and

e-Commerce Varies Widely Market-to-Market

Most Sales Promotion Tools are Legal Across Europe

Sweepstakes are Either Heavily Banned or Regulated

in All European Markets In JapanValue of Premium Offered with a Product

is Limited to 10% of the Value of the Original Price

7.14


15/22

Promotions in

International Markets

Must be Researched for

Regulation and Legality

7.15


16/22

Challenges in International Public Relations

COMPANIES HAVE LESS CONTROL OVER GLOBAL

PUBLICITY RELATIVE TO DOMESTIC SITUATIONS,

AND NO CORPORATIONS ARE POWERFUL

ENOUGH TO CONTROL A HOST COUNTRYS

MEDIA

7.16


17/22

Promotion Agencies Around the World

GLOBAL AGENCY Will Know Marketers Products & Current Promotion Program

Agency may then Either Adapt Domestic Campaigns or Launch NewOnes

Disadvantage is their Distance from Local Culture. ExportingMeaning is Never Easy

INTERNATIONAL AFFILIATE Set Up as a joint Venture w/Local Agencies

Join Networks or Take Minority Ownership

Benefits in this ArrangementLOCAL AGENCY Knowledgeable about Culture/Local Market

Have Well-Established Contacts

One Problem-Less Standardization of Creative Effort7.17


18/22

Standardized vs. Promotional Customized Campaigns

STANDARDIZED CAMPAIGNS USE SAME APPEAL & CREATIVEEXECUTION ACROSS ALLINTERNATIONAL MARKETS

CUSTOMIZED CAMPAIGNS INVOLVE PREPARING CREATIVEEXECUTIONS FOR EACH MARKET A FIRM HAS CREATED

A BRAND IS WELL SUITED FOR A STANDARDIZED CAMPAIGNWHEN:

Communication Primarily Uses Visual Appeal Communication is Culture-less

Brands that are Standardized

Products have Global Reputation

7.18


19/22

Certain Product Lend

Themselves to

Standardized Campaigns

7.19


20/22

Standardized vs. Promotional Customized Campaigns

(cont)

ENVIRONMENT FOR STANDARDIZED PROMOTION

IS MORE FAVORABLE DUE TO:

Expansion of Global Communications Media

Emergence of Global Teenager

Trend Towards Universal Demographic & Lifestyle

Trends

Americanization of Consumption Values

7.20


21/22

Challenges in Developing & Managing

A Global Sales Force

DEVELOPING A GLOBAL SALES FORCE CAN BEACHIEVED WITH: Expatriate Personnel

Local Nationals

Third Country Nationals

7.22


22/22

Challenges in Developing & Managing

A Global Sales Force

MANAGING THE GLOBAL SALES FORCE Training

Expatriate

Foreign National Personnel Training for Foreign Personnel

Motivation & Compensation

Companies Must Consider Culture

Guidelines Include Examining the Way Firms are Compensating

People High Tax-Rate CountriesSales Personnel Push for Packages

instead of Direct Taxable Income

E.g., Cost of Living Allowances, Private School Tuition, etc.

7.23

international env for imc

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