International Marketing - Chapter 16

Flashcards for International Marketing - Integrated Marketing Communications and International Advertising

Integrated Marketing Communications (IMC)

Advertising, sales promotions, trade shows, personal selling, direct selling, and public relations with the objective to successfully support the sale of a product and service.

Sales Promotions

Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. They are short-term efforts directed to the consumer or retailer to achieve specific objectives.

Public Relations (PR)

Creating good relationships with the popular press and other media to help companies communicate messages to customers, the general public, and governmental regulators.

International Advertising - Steps

1. Perform marketing research. 2. Specify the goals of the communication. 3. Develop the most effective message(s) for the market segments selected. 4. Select effective media. 5. Compose and secure a budget. 6. Execute the campaign. 7. Evaluate the campaign relative to the goals specified.

Product Attributes and Benefit Segmentation

Different cultures usually agree on the benefit of the primary function of a product or service, but other features and PSYCHOLOGICAL ATTRIBUTES of the item can have significant differences.

Effective Communication

Demands the existence of a “PSYCHOLOGICAL OVERLAP” between the sender and the receiver.

Legal Constraints in Advertising

Include comparative advertising, advertising of specific products, control of advertising on television, accessibility to broadcast media, limitations on length and number of commercials, internet services, and special taxes.

Linguistic Limitations

Language is a major barrier to effective communication through advertising, including translation challenges, low literacy, and multiple languages within a country. In-country testing with the target consumer group avoids problems caused by linguistic differences.

Media Limitations

May diminish the role of advertising in the promotional program, such as poor-quality printing and lack of high-grade paper.

1. Availability

2. cost

3. coverage

4. lack of market data

Media planning and analysis

Managed by advertising agencies

Local domestic agency, company-owned agency, multinational agency with local branches

Common advertising agency compensation

Commonly 15% throughout the world - some companies moving to reward-by-results