Communication Decision For International Markets: Dr. Rakesh Mohan Joshi

Communication Decision
for
International Markets
Dr. Rakesh Mohan Joshi
www.rakeshmohanjoshi.com
Lecture Objectives:
To understand the concept of international marketing
communication mix
To explain the process of communication in international
markets
To examine various marketing communication strategies
To describe various tools of international marketing
communication
To discuss factors influencing international marketing
communication decisions
To explain the framework of international productpromotion strategy
Neglecting nuances of different cultures lead not only to enormous costs

but also to market failures
Coca Cola was first introduced in China, it was named KeKou-Ke-La,. Later the company found that the phrase
translated in a Chinese dialect as bite the wax tadpole or
female horse stuffed with wax. Subsequently, Coke found a
close phonetic equivalent Ko-Kou-Ko-Le, which can roughly
be translated as happiness in the mouth after researching
40,000 Chinese characters.
Parkers slogan for its ball point pen, It wont leak in your
pocket and embarrass you also backfired in Latin America as
its Spanish translation meant It wont leak and make you
pregnant. The company mistakenly translated embarrass
into embarazar in Spanish.
Chevrolets highly popular US car, Nova failed

miserably in Latin America. Later the company
found that no va means no go in Spanish. Later it
had to rename its car Caribe for the Spanish
markets.
The Swedish vacuum cleaner manufacturer Electrolux
introduced the same print ad which had proved highly
successful in Britain with its Nothing sucks like an
Electrolux!
tagline
in
the
US
market
.
However, Electrolux found this to be a disaster in the US
as in American culture sucks means really bad, that
is, Electrolux is a really bad vacuum cleaner.
Process of International Marketing

Communication
Noise
Home Country
Context
Foreign Country
Context
Encoding
Decoding
Medium
Sender
(Firm)
Message
Feedback
Receiver
(Customer)
International Marketing Communication Mix
Advertising
Sales
Promotion
Customer
Public
relations
Direct and
interactive
marketing
Personal
Selling
Factors Influencing International Marketing

Communication Mix
Market size
Cost of promotional activity

Resource availability, especially finances
Media availability
Type of product and its price sensitivity
Market Characteristics
Global Advertising by Region, 2010
Global Advertising by Region, 2006
Latin America
5%
Latin
America
4%
North
America
46%
Asia Pacific
22%
Asia Pacific
25%
North America
41%
EMEA**
29%
EMEA**
28%
Global Advertising by Region*, 2015

Latin America
6%
Asia Pacific
27%
EMEA**
29%
North America
38%
Global Advertising Spend: by Media Type, 2010
Global Advertising Spend: by Media Type

, 2006
Out-of-home
6.0%
Directories
6.9%
Internet
8.2%
Directories
6.1%
Radio
6.6%
Out-of-home
5.7%
Internet
15.3%
Radio
7.5%
Newspapers
19.0%
Television
36.9%
Television
34.1%
Newspapers
25.1%
Magazines
11.7%
Cinema and Video

games
0.5%
Magazines
9.6%
Global Advertising Spend*: by Media

Type, 2015
Out-of-home
5.5%
Radio
5.9%
Directories
4.1%
Internet
21.0%
Newspapers
15.8%
Magazines
9.1%
Cinema and
Video games
0.9%
Cinema and Video

games
0.8%
Television
37.6%
Fig. 14.7 : World's Top 10 Media Spenders in 2012 (in US $ billions)

12
10
8
6
4
2
Pepsi
McDonalds
Volkswagen
Nestle
Coca-Cola
General Motors
Toyota
L'Oreal
Unilever
Procter & Gamble
Cultural Dynamics
for
International
Communication Decisions
Hofstedes Dimensions of Culture

Power Distance (Large or Small)
The extent to which less powerful members of
institutions accept that power is distributed unequally
-
Large
* Blindly obey order of superiors
* Hierarchical organizational structure
Small
* Decentralized decision making
* Flat organizational structures
Hofstede's Value Survey Model: Power Distrance
120
104
100
81
80
77
69
64
60
40
40
35
31
20
Country
Sweden
Great Britain
United States
Thailand
Brazil
India
Arab Countries
Mexico
Malaysia
11
Austria
Country Score
80
Individualism (vs. Collectivism)

The tendency of people to look after themselves and their immediate family
only
Strong work ethic
Promotions based on merit
Collectivism
The tendency of people to belong to groups and to look after each other in
exchange for loyalty
Weaker work ethic
Promotions based on seniority
Hofstede's Value Survey:Individualism

100
90
91
89
80
71
65
60
48
50
46
46
38
40
30
26
20
20
14
10
Country
Pakistan
Singapore
Malaysia
Arab Countries
Argentina
Japan
India
South Africa
France
Great Britain
United States
6
Guatemala
Country Score
70
Uncertainty Avoidance (High or Low)

The extent to which people feel threatened by
ambiguous situations
High
- High need for security
- Strong beliefs in experts
Low
- Willing to accept risks
- Less structuring of activities
Hofstede's Value Survey:Uncertainity Avoidance
120
112
104
100
92
86
76
Country Score
80
68
60
46
40
40
23
20
Country
Singapore
Denmark
India
United States
Arab Countries
Brazil
France
Japan
Greece
Portugal
Masculinity (Vs. Femininity)

The dominant values in society are success, money and things
Emphasis on earning and recognition
High stress workplace
Femininity
The dominant values in society are caring for others and the quality of life
Employment security
Employee freedom
Hofstede's Value Survey: Masculinity
100
95
90
80
70
66
Country Score
70
62
56
60
48
50
34
40
30
16
8
Country
Norway
Denmark
Thailand
India
United States
Great Britain
Switzerland
Japan
Singapore
10
Sweden
20
High Vs. Low Context Cultures

Low Context
High Context
Long lasting relationships
Relationships are short in duration
Implicit communication
Explicit communication
Loyalty to people of authority
Authority is diffused
Spoken agreements
Written agreements
Outsiders do not gain entry easily
Outsiders are encouraged to join inner circle
Tools for International Marketing

Communication
Advertising: Any paid form of non-personal communication
by an identified sponsor
Advertising : Standardisation Vs. Adaptation

Standardization: Using the same advertising strategy across the
country.
Ad with no change
Ad with changes in illustration
Universal appeals in international advertising are used in situations such as

Superior quality: The promise of superior quality may be used universally. For
instance, BMW uses the slogan ultimate driving machine worldwide.
New Product/Service: The worldwide launch of a product under the sprinkler
approach is generally coupled with global communication campaign. For instance,
Microsoft used such campaigns while launching its new versions of Windows.
Country of Origin: Brands in product categories which have a strong country
stereotype often leverage their route by emphasizing on made in cachet. The
country of origin is often emphasized in case of luxury and fashion products.
Celebrities: Celebrities with universal appeal are engaged for global products,
whereas the regional or national celebrities are employed for regional
communication. Swiss watchmaker SMH International promoted its Omega brand
with a TV commercial featuring actor Pierce Brosnan after the release of James
Bond movie Golden Eye. Sachin Tendulkar and Aishwarya Rai have been used in a
number of advertising campaigns in the south asian region.
Lifestyle: A large number of global upscale brands use lifestyle

ads to target customers regardless of the country.
Global Presence: In order to enhance the brands image, firms
project their global presence by communicating to the target
audience that the product is used worldwide and by using it they
also would become a part of the global customers community.
Market Leadership: Brands with a strong country image often
send a signal to the target audience that it is the most preferred
brand in their home markets. The fact that the company is a market
leader nationally, regionally, or internationally gives out a strong
message to the customers.
Corporate Image: Firms also use a uniform marketing
communication approach to project a certain uniform corporate
image.
The major benefits of standardized advertising:

The target market is segmented on the basis of
psychographic profile of the customers, such as their
lifestyles, behaviour, and attitudes
Cultural proximity among the customers
Technology intensive or industrial products
Similarity in marketing environment such as
political, legal, and social
Reasons for Adaptation of International

Marketing Communication
Differences in cultural values among the countries
Difficulties in language translation
Variations in the level of education of the target groups
Social attitudes towards advertising, and
Regulatory framework of the target market
Hypermedia Advertising:
The advent of the Internet and the World
Wide Web has fostered a hypermedia
environment making it possible to deliver
targeted messages to specific audiences.
This environment allows non-linear
communication using hyperlinks with
search and retrieval processes to collect
information
Measurement of hypermedia advertising

Measurement method
Hit count
Definition
Comments
Measures the number of items a page is requested Provides information on actual hits, but there could be
but not necessarily seen or displayed at the users multiple hits counted for every click of the mouse or
page refresh. Records activity regardless of the viewers
browser
location, such as workplaces, homes, schools, or other

countries. Provides no information on users.
Page view
Tracks the number of individual pages sent to Gives no indication of how many users receive or view
Web viewers
Click-through
pages and no profile data on users
Tracks the number of times an online ad is Gives no information about the customers. Customers
clicked on
who click through may dump a page before it loads.
Unique visitors
Allow tracking by the IP address of the viewer
Many people use the same IP address to access a site
Reach
Measures sampled groups visits (if 25% of Requires the use of panels or surveys. This can pair
sample has visited site, reach obtained 25%)
information on the individuals background with

individual behaviour. These panels may be narrow in
scope and not account for all Web surfers, such as those
at work or from other countries
New measures
Include linking individuals by demographic data, May allow online, constant measures of who visits a site
loyalty, site behaviour, and other measures
and how long they stay at a site.
Direct Marketing: Selling product s and servcies to the

customers without using any market intermediary
Direct Mailing: Sending letters, brochures or catalogues, emails, faxes, or even product samples directly to the
consumers, who may, in turn, purchase the product through
mail.
Door-to-Door Marketing:
Multi-level Marketing: Involves a revolutionary distribution
system with little spending on advertising and infrasture.
Personal Selling: Involves personal meeting of a firms
representatives with the customer. As the languages, customs
and business cultures are different in internatonal markets
International Trade Fairs and Exhibitions

Trade fairs are organized gatherings where the buyers
and the sellers meet and establish communication.
General Trade Fairs
Specialized Trade Fairs
Consumer Fairs
Minor Trade Fairs
Solo Exhibitions
Catalogue Shows
Trade Missions:
A group of a business people
travelling abroad to promote their business by meeting
foreign companies or foreign government officials.
Sales Promotion: Various tools that are used as
short-term incentives to induce a purchase decision.
Public Relations: Aim at building corporat e image
and influencing media and other target groups to have
a favourable publicity.
International Product Strategies

Product
Promotion
Dont change
product
Dont
change
promotion
Straight
adaptation
Communication
Adapt
promotion adaptation
Adapt
product
Product
adaptation
Dual
adaptation
Develop new
product
Product
Invention

Communication Decision For International Markets: Dr. Rakesh Mohan Joshi

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Communication Decision

Dr. Rakesh Mohan Joshi

Neglecting nuances of different cultures lead not only to enormous costs

Dr. Rakesh Mohan Joshi

Chevrolets highly popular US car, Nova failed

Process of International Marketing

Dr. Rakesh Mohan Joshi

International Marketing Communication Mix

Dr. Rakesh Mohan Joshi

Factors Influencing International Marketing

Cost of promotional activity

Dr. Rakesh Mohan Joshi

Global Advertising by Region, 2010

Global Advertising by Region, 2006

Global Advertising by Region*, 2015

Dr. Rakesh Mohan Joshi

Global Advertising Spend: by Media Type, 2010

Global Advertising Spend: by Media Type

Cinema and Video

Global Advertising Spend*: by Media

Dr. Rakesh Mohan Joshi

Cinema and Video

Fig. 14.7 : World's Top 10 Media Spenders in 2012 (in US $ billions)

Dr. Rakesh Mohan Joshi

Procter & Gamble

Hofstedes Dimensions of Culture

Dr. Rakesh Mohan Joshi

Hofstede's Value Survey Model: Power Distrance

Individualism (vs. Collectivism)

Dr. Rakesh Mohan Joshi

Hofstede's Value Survey:Individualism

Uncertainty Avoidance (High or Low)

Dr. Rakesh Mohan Joshi

Hofstede's Value Survey:Uncertainity Avoidance

Masculinity (Vs. Femininity)

Dr. Rakesh Mohan Joshi

Hofstede's Value Survey: Masculinity

High Vs. Low Context Cultures

Long lasting relationships

Relationships are short in duration

Loyalty to people of authority

Outsiders do not gain entry easily

Outsiders are encouraged to join inner circle

Dr. Rakesh Mohan Joshi

Tools for International Marketing

Advertising : Standardisation Vs. Adaptation

Universal appeals in international advertising are used in situations such as

Lifestyle: A large number of global upscale brands use lifestyle

Dr. Rakesh Mohan Joshi

The major benefits of standardized advertising:

Reasons for Adaptation of International

Dr. Rakesh Mohan Joshi

Measurement of hypermedia advertising

location, such as workplaces, homes, schools, or other

pages and no profile data on users

who click through may dump a page before it loads.

Allow tracking by the IP address of the viewer

Many people use the same IP address to access a site

information on the individuals background with

Dr. Rakesh Mohan Joshi

and how long they stay at a site.

Direct Marketing: Selling product s and servcies to the