Chapter 12- Marketing Communication

Product Price Promotion Place

Marketing Communication Process

Effective communication requires 3 elements connected by a message channel:

The sender The message The receiver

Encoding- converting message into symbolic form properly understood by the receiver Decoding- dependent on receivers ability to transform message symbols back into thought Noise- Extraneous stimuli that interfere with transfer of message through message channel

Marketing Communication Process

Sender Message

Message Channel

Receiver

Noise

Feedback

Communication Outcome

Five Stages in International Negotiation Process

Offer- assess each others needs and degree of commitment Informal Meetings- discuss the terms and get acquainted, establish trust, build relationship Strategy formulation- identify factors affecting the deal, preparation for give-and-take, attend to cultural values Negotiations- depends on business traditions/culture, competitive vs. collaborative approach Implementation- ensure a win-win for both parties, think long term

How to Negotiate in Other Countries-10 points (p. 389)

Team Assistance Traditions and Customs Language Capability Determination of authority limits Patience Negotiation ethics Silence Persistence Holistic view The Meaning of Agreements

Marketing Communication Strategy

Step One Step Two Step Three Step Four Step Five

Assess Marketing Communication Opportunities

Analyze Marketing Communications Resources

Set Marketing Communications Objectives

Develop/Evaluate Alternative Strategies

Assign Specific Marketing Communications Tasks

Promotional Mix

Advertising- Any form of non personal presentation of ideas, goods, or services by an identified sponsor, with predominant use made of mass communication. Personal Selling- The process of assisting and persuading a prospect to buy a good or service or to act on an idea through use of person-to-person communication with intermediaries Publicity- Any form of nonpaid, commercially significant news or editorial comment about ideas, products, or institutions Sales Promotions- Direct inducements that provide extra product value or incentive to the sales force, intermediaries or ultimate consumers Sponsorship- the practice of promoting the interests of the company by associating it with a specific event or cause.

Push or Pull?

The choice of tools leads to either a Push or Pull strategy Push- focus on the use of personal selling. Pull- depends on mass communications tools, mainly advertising. Integrated marketing communications (IMC)

Communication Tools

In addition to what we have discussed..... the communication tools used by exporters to communicate with the foreign markets are as follows: Business and trade journals Directories Direct advertising The internet Trade fairs and missions Personal selling

Chapter 18-Global Promotional Strategies

Planning Promotional Campaigns-Steps Involved

Determine Determine Determine Determine Determine Determine Determine

the target audience specific campaign objectives the budget media strategy the message the campaign approach campaign effectiveness

Target Audience

Global marketers face multiple audiences beyond customers Cause-related marketing: the company or one of its brands is linked with a cause such as environmental protection. Corporate image advertising- an umbrella campaign may help either boost the image of a lesser-known product line or make the company be perceived more positively.

Campaign Objectives

Essential to the planning of an international promotional campaign is the establishment of clearly defined, measurable objectives Typical goals: Increase awareness Enhance image Improve market share

The Budget

The promotional budget links established objectives with media, messages, and control decisions Available funds may dictate the basis from which the objective-task method can start Take a market-by-market approach It establishes a control mechanism

Media Strategy

The major factors determining choice of media vehicles: Media availability- government restrictions are there for media Product influences- different restrictions for different kinds of products, e.g., tobacco, alcohol, pharmaceutical products Audience characteristics- demographics, media habits, advertising exposure Global media- Time, Economist, MTV, Internet Promotional message- targeted message, S-A issues

Promotional Message

Determine the customers motivations depending on the following: Level of diffusion of product What customers look for in a product Products positioning Be flexible in marketing globally, may consider a global brand Use of an advertising agency Standardization vs. adaptation in message- Parker pen

The Campaign Approach

What type of outside services to use? Advertising agencies, local vs. global , e.g., McCann-Erickson130 countries Agency-Client relationship Using local agencies How to establish decision-making authority for promotional efforts? Centralization vs. decentralization Reasons for Centralization- economies of scale, synergy, consistency Reasons for Decentralization- proximity to market, flexibility, faster response time, cultural sensitivity

Measurement of Advertising Effectiveness

Commonly used measurements regardless of medium used: Sales Awareness Recall Intention to buy Profitability Coupon return