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Chapter16IntegratedMarketingCommunicationsandInternationalAdvertising?McGraw-HillEducation.Allrightsreserved.Authorizedonlyforinstructoruseintheclassroom.
NoreproductionorfurtherdistributionpermittedwithoutthepriorwrittenconsentofMcGraw-HillEducation.LearningObjectives16-1 Localmarketcharacteristicsthataffecttheadvertisingandpromotionofproducts16-2 Thestrengthsandweaknessesofsalespromotionsandpublicrelationsinglobalmarketing16-3 Whenglobaladvertisingismosteffective;whenmodifiedadvertisingisnecessary16-4 Thecommunicationprocessandadvertisingmisfires16-5 TheeffectsofasingleEuropeanmarketonadvertising16-6 Theeffectoflimitedmedia,excessivemedia,andgovernmentregulationsonadvertisingandpromotionbudgetsIntegratedMarketingCommunications(IMC)KeyConsiderationsAdvertising,salespromotions,tradeshows,personalselling,directselling,publicrelationsAvailabilityofchannelsvariesindifferentmarketsCandeterminemarketentrydecisionsInformsproductandservicedevelopmentGoalistoachievesynergiesSalesPromotionsinInternationalMarkets1of2DirectedtowardconsumerorretailerStimulateconsumerpurchasesImproveretailerormiddlemeneffectiveness,cooperationLocaladaptationcrucialMedialimitationsinsomecountriesMayrequirehigherbudgetallocationtowardsalespromotionsMajorconstraintscanbeimposedbylocallawsPromotionsmayrequirepermitorbeoutlawedaltogetherSalesPromotionsinInternationalMarkets2of2SpecificObjectivesConsumerproducttrialorimmediatepurchaseConsumerintroductiontothestoreorbrandGainingretailpoint-of-purchasedisplaysEncouragingstorestostockproductSupportingandaugmentingadvertisingandpersonalsalesInternationalPubicRelationsTheRoleofPublicRelations(PR)CreategoodrelationshipswithpressandmediaEncouragepresstocoverpositivestoriesaboutcompanyManageunfavorablerumors,stories,andeventsObtaincorporatesponsorshipsEffectivePRbenefitscommunicationwithpublicCustomers,thegeneralpublic,andgovernmentregulatorsPR:CorporateSponsorshipsKellySlater,10-timeworldsurfingchampion,endedhislong-termrelationshipwithcorporatesponsorQuiksilverin2014.Asapromisedbonusforwinninghis10thchampionship,hetooka3percentstakeinthecompanyratherthantherumored$10millionincash.In2015Kelly’sridewithQuiksilverwipedout,sotospeak.Thefirmdeclaredbankruptcyanditsstockplummetedby80percent.Wedon’tknowifKellybailedoutintime.?CameronSpencer/GettyImagesInternationalAdvertising1of3GlobalmassmediaadvertisingGrowthespeciallyinuseofdigitalmediaAtoolforsocialchangeInfluencesconsumers’decision-makingaboutfinancesAdvertisingexpendituresgenerallycyclicalMorestableinrelationship-orientedcountriesthatvaluelong-termperformanceInternationalAdvertising2of3CultureandAdvertisingPurposeofanadInterpretortranslatequalitiesofproductsandservicesintermsofconsumersneeds,wants,desires,andaspirationsConsumerresponsetoadsimpactedby:Culture,style,feelings,valuesystems,attitudes,beliefs,perceptionsInternationaladmustcoincidewithculturalnormsEmotionalappeals,symbols,persuasiveapproachesInternationalAdvertising3of3StepsforInternationalAdvertisingPerformmarketingresearchSpecifythegoalsofcommunicationDevelopthemosteffectivemessage(s)forthemarketsegmentsselectedSelecteffectivemediaComposeandsecurebudgetbasedonwhatisrequiredtomeetgoalsExecutethecampaignEvaluatethecampaignrelativetothegoalsspecifiedVehiclesasAdvertisingMediumsThesevehicularadsmakeaneffectiveadvertisingmediumeveninadenseLondonfog.BecausemostLondoncabsareblack,theSnickersadcatchestheeyeimmediately.?JohnGraham?JohnGrahamAdvertisingStrategyandGoals1of3StrategiesforAdvertisingIncreasingneedformoresophisticatedstrategiesIntensecompetitionforworldmarketsandsophisticationofforeignconsumersStandardizationversuscustomizationStandardizedproductscanoftenbemarketedglobally,butrequireadifferentadvertisingappealindifferentmarketsMarketsegmentationstrategiesManyignorenationalboundariesSomeproposecreatingsegmentsdefinedby“consumercultures”AdvertisingStrategyandGoals2of3ProductAttributeandBenefitSegmentationMarketofferingabundleofsatisfactionsbuyerreceivesPrimaryfunctionofproductorserviceOtherbenefitsimputedbyvaluesandcustomsofcultureCulturesmayseeksameprimaryfunctionCulturesoftenperceiveotherfeaturesdifferentlyPsychologicalattributes,satisfactionsAdvertisingStrategyandGoals3of3RegionalSegmentationStandardizationbecomingmorepossibleinEuropeEmergenceofpan-EuropeancommunicationsmediaLegalrestrictionsslowlybeingeliminatedCompanieswithpan-EuropeanpromotionsstriveforharmonyinbrandnamesandadvertisingAvoidsconfusionTheMessage:CreativeChallenges1of9GlobalAdvertisingandtheCommunicationsProcessMessagemayfailforvarietyofreasonsDoesnotgetthroughduetomediainadequacyMisunderstoodbyaudiencebecauseofdifferentculturalinterpretationsUnderstood,butineffectivebecausemarketerdidnotcorrectlyaccessneeds,wants,orthinkingprocessoftargetmarketTheMessage:CreativeChallenges2of9ComponentsofCommunicationProcessInformationsourceEncodingMessagechannelDecodingReceiverFeedbackNoiseExhibit16.4TheInternationalCommunicationsProcessJumptolongdescription.TheMessage:CreativeChallenges3of9PromotionalMisfiresCulturalcontextimpactsunderstandingofmessageWithoutcarefulconsideration,misunderstandingprobableMaybealackofknowledgeaboutthetargetmarket“Psychologicaloverlap”betweensenderandreceiverImportantforeffectivecommunicationTheMessage:CreativeChallenges4of9PromotionalMisfirescontinuedEncodingerrorsSymbolsusedmaysendunintendedmessageMarketershouldbeawareofownSRCMediachannelusedcancauseissuesLackofliteracyandaccesstochosenmediaDecodingerrorsGenerallycausedbyapoorlyencodedmessageIncorrectknowledgeofusepatterns,messagemeaninglesstoreceiver,poormediaselection,inaccuratedecodingsothatmessageisgarbledThePowerofColorinAdsNoticetheCokeadvantageatwork—theredcontrastswiththeoutdoorenvironment,whiletheCristalaquablendsmorewiththeblueskyandtrees.?JohnGraham?JohnGrahamTheMessage:CreativeChallenges5of9PromotionalMisfirescontinuedFeedbackProperfeedbacksystem(adtesting)allowscompanytocorrecterrorsbeforesubstantialdamageoccursNoiseCompromisesallexternalinfluences:competitiveadvertising,salespersonnel,confusiononreceivingendFrequentlybeyondthecontrolofsenderandreceiverTheMessage:CreativeChallenges6of9LegalConstraintsComparativeadvertisingAdvertisementofspecificproductsPharmaceutical,toy,tobacco,andliquorindustriesTelevisionadvertisementsEUdecidingifsamerestrictionsshouldapplytoInternetadsSpecialadvertisingtaxesRestrictscreativefreedominmediaselectionTheMessage:CreativeChallenges7of9LinguisticLimitationsDifferentlanguagesofdifferentcountriesDifferentlanguagesordialectswithinsamecountryIncludessubtlerproblemsoflinguisticnuance,argumentstyle,vernacular,andevenaccentTranslationeffortsofteninsufficientUseofabstraction,tersewriting,andwordeconomyinadvertisementdoesnottranslateeasilyLiteracylevelsvarybycountryCallsforgreatercreativityanduseofverbalmediaMessagesAroundtheWorldThe“trueting”inJamaicaisagrapefruit-flavoredsoftdrink.Thesloganis,ofcourse,atake-offon“therealthing”advertisingofCoca-Colasomedecadesago.“Ting”isobviouslyaCreoleversionof“thing”forJamaicans.PerhapsthebestbillboardseverarethegiantbullspostedonhillsidesaroundruralSpain.TheywereoriginallymeanttoadvertiseOsborneBrandy,buttheyhaveevolvedintoanationalsymbol.NotevenCoca-Colacanmakethatstrongaclaim.Finally,GEjoinedwiththeChinesegovernmentinpromotingagreenBeijingOlympics.Ironically,manyfolksaroundtheworldseeoutdooradvertisingitselfasakindofpollution!?JohnGraham?DenisDoyle/APImages?CourtesyofGETheMessage:CreativeChallenges8of9CulturalDiversityLanguageandcultureinterrelatedCulturalfactorslargelydetermineperceptionoflanguageinadIfperceptualframeworkdiffers,sodoesperceptionofmessagePerceptionbasedontraditionandheritageOftenrendersadvertisingcampaignsineffectiveorworseEffectivenessofsexappeals,music,andcelebritiescanvarySubcultureswithincountriesalsorequireattentionTheMessage:CreativeChallenges9of9MediaLimitationsChallengesmarketer’screativityDiminishesroleofadvertisinginpromotionalprogramForcesemphasisonotherelementsofpromotionalmixProductionandCostLimitationsBudgetandaccesstomaterialsimpactchoiceofmediaNecessityforlow-costreproductioninsmallmarketsMediaPlanningandAnalysis1of6TheCommunicationsRevolutionInfluenceofelectroniccommunicationmediaPCs,theInternet,mobilephonesInfluenceseverydaylifeforeveryoneontheplanetMediaPlanningandAnalysis2of6TacticalConsiderationsAvailabilityAccesstocertaintypesofmediavarybycountry;somebannedCostPricesofmediasusceptibletonegotiationinmostcountriesCoverageSomesectorsofpopulationdifficulttoreach;informationaboutcoveragesometimesnotavailableMultimediaapproachincreasescoverageLackofmarketdataSeemstocharacterizemostinternationalmarketsMediaPlanningandAnalysis3of6TacticalConsiderationscontinuedNewspapersCompetition:lackinginsomecountries,toomuchinothersLongtimelagbeforeadcanberuninmanycountriesMagazinesUseofforeignnationalconsumermagazinesbyinternationaladvertisersnotablylowFewhavelargeenoughcirculationorprovidedependablecirculationfiguresMediaPlanningandAnalysis4of6TacticalConsiderationscontinuedRadioandtelevisionMajorcommunicationsmediainalmostallnationsAvailabilityvariesbetweencountries;impactedbyadlawsAdskippingandstreamingdevicesreducecoverageSatelliteTVExpansionofcoverageemphasizesglobalstandardizedmessagesMosttechnologyinvolvesgovernmentregulationandseldomworkslongMediaPlanningandAnalysis5of6TacticalConsiderationscontinuedDirectmailViablemediuminincreasingnumberofcountriesEspeciallyimportantwhenothermediaarenotavailableSubjecttooddandnovelquirkspercountryTheInternetGlobalgrowthincompanyspendingononlineadvertisingReacheslargeportionofB2Bmarket;limitedreachinB2CmarketSettobecomeincreasinglyregulatedbycountriesMediaPlanningandAnalysis6of6TacticalConsiderationscontinuedSocialmediaIncreasesspeedofword-of-mouthadvertisingConsumer-generatedcontentimpactsbrandsConsumersfromdifferentcountriesinteractonlineMobilephoneapplicationsIncreasingnumberofappsavailabletoconsumersM-commerce:buyingproductsorservicesbymobilephoneExhibit16.7TopSocialMediaUsers:AverageTimeSpentonSocialNetworkingSites,FourthQuarter2015(hoursperuser)Jumptolongdescription.Source:
Statista,2017,/statistics/270229/usage-duration-of-social-networks-by-country/.CampaignExecutionandAdvertisingAgenciesAdvertisingAgenciesManagedevelopmentandexecutionofadcampaignsLocaldomesticagenciesExpandingwithdemandfromMNCsMayprovidebestculturalinterpretationandbestfeelformarketMultinationalagencywithlocalbranchesSophisticationofamajoragencywithlocalrepresentationBetterabletoprovideacoordinatedworldwideadcampaignAlternateFormsofMediaTwonovelmediaareshownhere:(1)NotonlydotheRussianssellspaceforspacetouristsontheirrockets;theyalsoselladvertisingspace!(2)TheJapanesebeveragecompanySuntorypromotesitsproductswith“MonitorMan”duringafootballmatchatNationalStadium.“MonitorMan”putsonanLCDdisplay,showingadsforPepsiandotherproducts,andwalksaroundthestadium.Thejobrequiressomemuscle,astheequipmentweighsabout15pounds.AllthiseffortisperhapspurposelyreminiscentoftheSimpson’s“DuffMan.”?YuriKochetkovEuropeanPressAgency/Newscom?TatsuyukiTayama/Fujifotos/TheImageWorksInternationalControlofAdvertising:
BroaderIssuesConsumerCriticismsEuropeansskepticofadvertising;viewitasnonreliableNon-EuropeancountriesviewadsasentertainingandgoodsourcesofinformationConcernsaboutcertainproductsandindustries,useofsexappealanddecencyinads,advertisementstochildrenRegulation
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