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Integrated marketing communication and international
advertising
Whachiraporn Boonpradub
[email protected] university
Global Perspective
• Original Barbie – Yellow hair
– Blue eyes
– They were played in HK as same as in US
• Barbie in Japan looked different from US – Asian facial features
– Black hair
– Japanese fashion
Sales Promotions in International Markets
Sales promotionsMarketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperationShort‐term efforts directed to the consumer or retailer to achieve specific objectives
In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increasedProduct sampling
International Public Relations
• Bridgestone/Firestone Tires safety recall
• Global workplace standards
• Building an international profile
• Corporate sponsorships
The role of public relations (PR) is 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: 7 steps are involved
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.
Advertising Strategy and Goals
• Marketing problems require careful marketing research and thoughtful and creative advertising campaigns in country, regional, and global markets, respectively.
• Increased need for more sophisticated advertising strategies.
• Balance between standardization of advertising themes and customization.
• Consumer cultures
Product Attributes and Benefit Segmentation
Different cultures usually agree on the benefit of the primary function of a productOther features and psychological attributes of the item can have significant differencesCamerasYogurtAlmonds
Blue Diamond – assumes that no two markets will react the same, that each has its own set of differences, and that each will require a different marketing approach and strategy
Regional Segmentation
• Pan‐European communications media highlighting need for more standardized promotional efforts
• Costs savings with a common theme in uniform promotional packaging and design
• Legal restrictions slowly being eliminated
Global Advertising and the Communications Process
• If not properly considered, the different cultural contexts can increase the probability of misunderstandings
• Effective communication demands the existence of a “psychological overlap”between the sender and the receiver
• It can never be assumed that “if it sells well in one country, it will sell in another”
Legal ConstraintsLaws that control comparative advertising vary from country to country in Europe.Comparative advertisingAdvertising of specific productsControl of advertising on televisionAccessibility to broadcast mediaLimitations on length and number of commercialsInternet servicesSpecial taxes that apply to advertising
Linguistic Limitations
• Language is one of the major barriers to effective communication through advertising
• Translation challenges
• Low literacy in many countries
• Multiple languages within a country
Cultural Diversity
• Knowledge of cultural diversity must encompass the total advertising project
• Existing perceptions based on tradition and heritages are often hard to overcome
• Subcultures
• Changing traditions
Integrated Margeting Communication
2 Programs
• B2C = Business‐to‐consumer
• B2B = Business‐to‐business
B2C Business to Consumer
• BUICK (Rainier sports utility Vehicle) & Tiger Woods
‐ Create awareness+enhance the image of BUICK name
‐ Integrated online + TV ads + sales promotion
The Nature of Marcom
• Marcom = Marketing Communication
• All organizations – Firms+B2B, Companies+B2C, Non‐profit (museums, symphony orchestras, or charities) use various forms of Marcom to promote their offering and achieve financial and nonfinancial goals
Tools of Marcom
• Traditional mass media advertising– TV/ Radio
– Magazines
• Online advertising– Website
– Email messages
– Text messaging
• Sales Promotion– Samples
– Coupons/ Rebates
– Premium items
• Store signage& POP
• Direct mail literature
• PR & Press release
• Sponsorships & Events
• Sales person presentation
Marcom at the Brand Level
• To develop and deliver messages in different types of marketing topics– Products
– Services
– Stores
– Events
– People
What is “Brands” ?
• Brand provides a key means for differentiating one company from competitive brands
• Brand delivers in terms of quality, convenience, status and buying consideration
5 key features of IMC
1. Start with the consumer or prospect.
2. Use any form of relevant contact or touch point.
3. Speak with a single voice
4. Build relationships
5. Affect behavior
1. The Customer Represents the Starting Point for All Marketing
• Most appropriate messages and media for informing persuading, and inducing customers and prospects to act favorably toward the communicator's brand.
• Starts with the customers (“outside‐in”) to determine those communication methods that will best serve the customers’ information need and motivate them to purchase the brand
• Avoid “one‐size‐fits‐all”
2. Brand managers and their agencies shouldbe amenable to using various marketing
Communication tools
• Select the marketing tools that are best for the job.
• Use touch points and contacts that are appropriate for reaching the target audience.
3. Multiple Messages Must Speak with Single Voice
• IMC needs assorted communication elements (ads, POP, Sales promotions, sponsorships, etc.) must all speak the same message or “single voice”
4. Build Relationships Rather Than Engage in Fling
(CRM / customer relation management)
• Building relationships between brands and their consumers/ customers
• Lead to repeat purchasing and brand loyalty
• It cost5 to 10 times more to land a new customers than to keep a customer they already have.
5.Don’t lose focus of the Ultimate Objective: Affect Behavior
• Do more than just influence brand awareness or enhance customer attitudes.
• Effort be directed at encouraging some form of behavioral response.
• Move people to action • E.g., “smoking is uncool” or “only losers smoke” will affect more than “smoking is bad for you”
Changes in MarcomReduced dependence on Mass Media Advertising. Reach the people at “the point” not spread the ads everywhere
• Increased Reliance on Highly Targeted communication MethodsTargeting Messages.
• Heightened Demands on SuppliersTurn to “full service”
• Increased Efforts to Assess Communications’ Return on InvestmentMarcom must be assessed in term of the profit‐to‐investment
Marcom Program
Fundamental Decisions
Targeting
Positioning
Setting Objective
Budgeting
Implementation Decision
Mixing Elements
Creating Message
Selecting Media
Establishing Momentum
Targeting• Demographics characteristics• Lifestyles• Product usage pattern• Geographic consideration
e.g., To sell premium price low‐carb ice‐cream
: People who live in urban or suburban areas, earn annual incomes in excess of $50,00, are older than 35, and are health and weight conscious
Positioning
• Represent the key feature, benefit, or image that it stands for in the target audience’s collective mind.
• Clear idea of how brands are to be positioned and distinguished from competitive offerings.
Setting Objective
• Mass Media is ideally suited for creating consumer awareness of a new or improved brand
• POP is perfect for influencing in‐store brand selection
• Personal selling is not match for product improvements retailers
BudgetingTop‐down budgeting (TD)
– senior management each subunit
• Bottom‐up budgeting (BU)– managers of subunits senior manager
• Bottom‐up/top‐down process (BUTD)– subunit managers vice president of marketing top
manager
• Top‐down/bottom‐up process (TDBU)– top managers subunits managers vice president of
marketing
** Most use combinatio methods (BUTD/TDBU) more than extreme method (TD/BU)**
Mixing Elements
• Greater expenditures on promotion and fewer on advertising.
• Two major factors– advertising and promotion are interchangeable – advertising and promotion produce a synergistic effect
Poorly planned promotion can damage brand equity by cheapening the image
Creating Messages
• creation in the form of advertisement, publicity releases, promotions, package design, and any other form of marcommessage
Selecting Media
• measure by fundamental decisions previously made regarding choice of target audience, positioning strategy, type of objectives to b achieved, and how much is to be budgeted
Establishing Momentum
• momentum = an object’s force or speed of movement
• requires both of a sufficient amount of effort and continuity of that effort
• Out of sight, out of mind
The Concept of Brand Equity
• Brand = name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services and differentiate from competitors.
• Brand = everything that a company’s particular offering stands for in comparison to other brands in a category of competitive products
Brand Equity Outcomes Result
• Achieving a higher market share
• Increasing brand loyalty • Being able to charge premium price
• Earning a revenue premium
A Customer‐Based Perspective on Brand Equity
• 2 forms of brand‐related knowledge
–Brand Awareness–Brand Image
AdidasThe German brand of athletic shoes and apparelIncreased the advertising budget one year by whopping 25% over the previous year’s budgetThe increase was designed to raise consumer awareness of the “Adidas” nameMessage that “Adidas is an authentic and high performance of athletic shoe”Carry a desired performance image for the brand
Brand Awareness
• Whether a brand name comes to mindwhen thinking about a product category
• The easiness with which the name is called to mind
• Brand awareness is the basic dimension of brand equity.
• Brand has no equity unless the customer is at least aware of the brand.
Two Levels of Awareness
• Brand Recognition– Reflect a relatively superficial level of awareness
• Brand Recall– Indicate a deeper form of awareness
– If asked to mention names of luxury automobiles most people would include Mercedes‐Benz on the list or asked to name brands of athletic footwear, most would mention Nike, Adidas, Reebok
Brand Image
• Type of associations that come to the customer’s or consumer’s mind
• association is simply the particular thoughts and feeling that a consumer has about a brand, same as fashion that we have thoughts and feelings that a consumer has about other people.
Many brands have little equity because:
1. Only faintly aware of these brands or completely unaware of them
2. Even if aware, do not hold strong, favorable, and unique associate about these brands
5 brand‐related personality dimensions are described and
illustrated
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness
How Can Brand Equity Be Enhanced?
• Accomplish through the initial choice of positive choice of positive brand identity
• Via selection of a good brand name and logo
• Marcom creates favorable, strong, and unique associations with the brand in the consumer’s mind
Look at Coca‐Cola!• One of the world’s largest brand • Make it little more than colored sugar water• Continual advertising executions that sustain the Coca‐Cola story and build the image around the world.
• In the US, Coca‐Cola once commanded 44% of the carbonated soft‐drink market
• Total over $50 billion in revenue• Coke Classic (Coke) held and individual brand share of nearly 19% while Pepsi had about 12% share
Why people buy Coke?
• Consumers don’t buy “colored sugar water”only for its taste
• They buy lifestyle and image when selecting Coke over other brands
• Because effective advertising, exciting sales promotions, creative sponsorships, and etc.
What actions can be taken to enhance a brand’s equity?
3 ways 1. Speak‐for‐itself approach (how good and what benefit they are)
2. Message‐driven approach (creative, attention getting, and believable)
3. Leveraging approach (through socialization, people learn cultural values, from beliefs, and become familiar with the physical appearance or artifacts of these values and beliefs)
BrandBrand
Other Brands
Things
PlacesPeople
IngredientsIngredients CompanyCompany
ExtensionsExtensions
Country ofOrigin
Country ofOrigin
ChannelsChannels
EventsEventsCausesCauses
Third PartyEndorsementsThird Party
Endorsements
EndorsersEndorsers
EmployeesEmployees
AlliancesAlliances
Examples
• Rayovac (flashlights) + Harley‐Davidson (motorcycles)
• Ocean Spray (cranberry products) + Nabisco (cookies) = Nabisco’s Cranberry Newtons
• Lycra (spandex from DuPont) + Diesel/ DKNY = Jeans made with Lycra
• LG (Mobile) + Prada (high brand fashion) = stylish mobile phone (LG Parda)
10 traits shared by the world’s strongest brands
1. The brand excels at delivering the benefits customers truly desire.
2. The brand stays relevant.
3. The pricing system is based on consumers’perceptions of value.
4. The brand is properly positioned.
5. The brand is consistent.
6. The brand portfolio and hierarchy make sense.
7. The brand makes use of an coordinates a full repertoire of marketing activities to build equity.
8. The brand’s managers understand what the brand means to consumers.
9. The brand is given proper support, and that support is sustained over the long run.
10. The company monitors sources of brand equity.
Ethical In Marcom
• Ethics involve matters of right and wrong or “moral”
• 6 sections examine, in order, ethical issues in
1. targeting marketing communication
2. advertising
3. public relations
4. packaging communications
5. sales promotions
6. internet marketing
Targeting to Children and Teens
• In‐school marketing programs, advertisements in traditional media, and messages on the internet continually urge children to desire various products and brands.
• US business spent about $15 billion in a recent year adverting and marketing their brand to children ages 12 and under
Campbell Soup
• Campbell marketed its soup and pasta brands primarily to mothers with the expectation that they would make appropriate choices for their children
• In fact, direct appeals to children can effectively increase sales volume
• So Campbell has used the well‐known rapper Bow Wow and soccer phenom Freddy Adu as product spokesperson to reach older children
children
Hidden as education materials, these communications often are little more than
attempts to persuade schoolchildren to want the promoted products and brands
Children‐directed marketing communication is the practice of
• Using posters, book covers, free magazines, advertising, and other so‐called learning tools.
• Product placement in movie and TV programs
Advertising is Untruthful and Deceptive/Unreliable
• Roughly 2 out of 3 of Americans think that advertising often is untruthful
• Deception occurs when an advertisement falsely represents a product and consumers believe the false representative
Advertising Is controlling
• Advertising has the power to influence people to do things they would not do if they were not exposed to advertising
• Advertising practitioners do have the ability to influence consumers in very clever ways
• It is important to recognize that stimulating is not like brainwashing
Advertising Is Offensive and in Bad Taste
• Sometimes are insulting to human intelligence, vulgar, and generally offensive to the tastes of many consumers
Advertising Creates and Perpetuates Stereotypes
EX.
• Minorities have historically been portrayed disproportionately in working‐class roles
• Women have been stereotyped as sex objects
• Senior citizens sometimes are characterized as feeble and forgetful people
Advertising Plays on People’s Fear and Insecurities
• Appealing to negative emotion such as– Fear
– Guilt
• Not buying that products– Rejection by others
– Bad breath
Ethical Issue in Public Relations
• Publicity involves positive information about a company and its products and handling negative publicity when things go wrong and marketing unsafe products.
Ethical Issues in Packaging and Branding
• aspects of packaging involve ethical issues:– Label information‐ can mislead consumers by unethical suggesting (eg. Nutrition)
– Packaging graphics – picture is not a true representation of product contents (eg. A new brand make a logo similar to a well known brand)
– Packaging safety‐ not temper proof/ unsafe for children
– Environmental implications of packaging
– Brand naming – eg. “PowerGlider” with no battery/ a company steal a brand from better known brand (Kingston & Kingtom, KFC & KFG, Honda & Hongda)
Ethical Issue in Sales Promotions
• Coupons, premium offers, rebates, sweepstakes, and contest
• Failing to mail a free premium object
• Sweepstakes and contests are potentially unethical when consumers think their chances of winning are much greater than they actually are
Ethical Issues in Online Marketing
• It’s easy to collect voluminous information about people’s personal characteristics, online shopping behavior, and use of information. It’s also easy to invade individual’s privacy rights by selling information to other sources
Environmental, or “Green”Marketing Comunication
• Green advertising• Packaging Responses• Seal‐of‐Approval Programs (e.g., in Germany the blue angle seal represents an environmental claim is in fact legal)
• Cause‐Oriented Programs‐ sponsor or support environmental or social program (e.g., La Mer& care for Ocean )
• Point‐of‐Purchase Programs
Guideline for Green Marketing
1. Make Specific ClaimsDo “This detergent is fully degradable”Don’t “Good for the environment”
2. Reflect Current Disposal OptionsProducts are degradable (how?? Bury? Burn?)
3. Make Substantive ClaimsFoam cap says “preserving our trees and forests”Can we really preserve the trees and forest by using foam?
4. Make Supportable Claims Don’t claim it unless you can support it
81
Point‐of‐Purchase MaterialsPermanent P‐O‐P
Temporary and Semi permanent P‐O‐P
In‐Store Media
displays intended for sixmonths or more
displays intended for fewer than six months
carried out by a third party (P‐O‐P radio, shopping cart ads, shelf talkers, coupon
dispensers, etc..)
82
What Does P‐O‐P Accomplish?
• Accomplishments for Manufacturers‐ keep the brand name & call attention to sales Promotion
• Service to Retailers‐ increase interest in shopping and time spent in store
• Value to Consumers‐ deliver useful information and simplify the shopping process
83
P‐O‐P’s Influence on Consumer Behavior
• Informing– Motion displays vs. static displays
• Reminding– Encoding specificity principle – recall is enhanced when context during recall is the same or similar to the context when the message was encoded.
• Encouraging
84
The POPAI/Warner‐Lambert BenylinStudy
• Drugstores in Canada – Toronto, Montreal and Vancouver
• Benylin cough syrup and Listerine mouthwash
• Four groups of stores – one control and 3 experimental
• Experiment over 2 weeks
p gand Canadian international
businesses
• Total profit receive : กําไรที่ตองการ• Return on investment : คืนทุน• Market share : ครองสวนแบงทางการตลาด• Total sales volume : ยอดขายรวม• Liquidity : สภาพคลอง
Price escalation: เพิ่มราคา
• Cost of exporting
• Taxes, Tariffs and administrative cost
• Inflation
• Deflation
• Exchange rate fluctuations
• Varying currency value
• Middleman and Transportation costs
Cost of exportingคาขนสงคาประกนัPackingภาษีสงออก ความยาวของชองทางในการจดัจาํหนายกาํไรที่พอคาคนกลางตองการภาษีพิเศษที่อาจเกิดขึ้นคาใชจายในการบริหาร (ผูสงออก)ความผันแปรของอัตราแลกเปลี่ยน
****คาใชจายที่เกดิขึ้นจากการขนสงสินคาจากประเทศหนึ่งออกไปอีกประเทศหนึ่ง
Taxes, Tariffs and administrative cost
• คาใชจายเกี่ยวกับภาษีศลุกากร และภาษี อาจไมเทากันในแตละประเทศ• ภาษศีุลกากรในแตละประเทศคดิไมเทากันในสินคา และสวนผสมของสินคาที่ไม
เหมอืนกัน – เชน นําเขานาฬิกาไปอเมริกา ตองเสียคาภาษีศลุกากรชิ้นละ 20% – กลองถายรูปเสียชื้นละ 1 usd + 10% ของราคากลอง
• คาใชจายในการบริหาร – ใบอนญุาตสงออกและนําเขาสินคา – คาขนสงไปทาเรอื หรอืสนามบิน ฯลฯ– เอกสารอื่นๆที่เกี่ยวของ
Inflation : เงินเฟอ
• ราคาของสินคาจะและบริการจะมีราคาสูงขึ้นโดยทั่วไป• เงินใชซื้อของไดนอยลง• ตนทุนขนสงสินคาตางๆจะสูงขึ้น• ความตองการสินคาสูงขึ้น (Demand pull inflation)
• ตนทุนในการผลิตสินคาลดลง (Cost push inflation)
Deflation : เงินฝด
• ราคาของสินคาและบริการจะลดลง• รัฐบาลมีนโยบายดานการคลัง
– ลดภาษี – ลดดอกเบี้ย– เพิ่มการใชจายภาครัฐ เพื่อกระตุนการสรางงานและลงทุน
Exchange rate fluctuations
• สามารถทําใหบางบริษัทมีกําไรเพิ่มขึ้น แตบางบริษัทอาจมีกําไรลดลง หรือขาดทุน
• สวนใหญธุรกิจมักคิดเผื่ออัตราความผันผวนที่อาจเกิดขึ้นจากคาเงินประมาณ 15‐20%
Varying currency value
• คาเงินที่แตกตางกันในแตละประเทศยอมสงผลใหตนทุนในการผลิตสินคาไมเทากัน เชนแลก USD ในแตละประเทศจะมีมูลคาไมเทากัน
Middleman and Transportation costs
• ราคาสินคากอนถึงมือผูบริโภคจําเปนตองคํานึงถึงตามเศรษฐกิจในประเทศนั้นๆ
• ราคาสุดทายอาจตางกันในแตละสถานที่เนื่องจากกําไรของ middleman ที่ตองการยอมแตกตางกัน