What is International
Integrated Marketing
Communication and
Advertising?
What are the components of the International Promotional
Mix / Integrated Marketing Communications (IMC)?
Advertising*
16-2
Sales Promotion
Trade Shows
Personal Selling*
Direct Selling
Public Relations
*Usually The Major Components
Advertising
• Any paid message placed in a medium.
• Nonpersonal communication by an
identified sponsor across international
borders, using broadcast, print, and/or
interactive media
Consumer Sales Promotion
• Sponsored communications to the
target consumer or trade segment
that stimulate purchases or improve
relationships with middlemen
• Examples:
– Point-of-Sale Displays
– Free Samples
– Coupons
– Gifts
– Sweepstakes
– Contests
Sales Promotion
• Sales promotions could be a vital tool when introducing a
product internationally. Sampling or couponing, among
other promotion strategies, could be a great way to
introduce the product to an international market. E.g.
Worked for Tang, General Mill's pre-sweetened orange
juice mix, in Latin America.
• One barrier to sales promotion is that it requires support
from local retailers and distributors. Eg, grocery stores
must be able to cash in coupons that its customers
redeemed. This entails sending the coupons and
paperwork to the accounting department of the company
offering the promotion. This strategy did not work for A.C.
Neilson in Chile. The Chilean supermarket union
opposed the coupon incentive and the promotion failed.
International Publicity
A communication about a company
and/or the company’s products that
the company does not pay for.
Can be negative or positive.
International Publicity Examples
• Due to its independent nature, it is
considered more credible than any other
component of the promotional mix.
• The company can influence publicity
through public relations.
• Publicity includes:
– Print articles
– Broadcast messages
– Word-of-mouth communication about the
company and/or its products
– Internet increases publicity venues.
International Public Relations
A concerted effort on the part of a company to
generate good will among publics (community,
government, consumers, employees, and among
others) that are essential to the company.
International Public Relations
Examples
• News Releases/Letters/Company
Publications:
– Companies must regularly communicate with
their publics.
– When new products are introduced, companies
should offer news releases, press releases,
and/or company publications promoting the new
product or service.
• Event Sponsorship and Presence:
– Growing venue for international marketing
communications.
– Important tool for shaping public opinion.
International Advertising
Decisions
1. Decide whether to standardize or
adapt advertising.
2. Develop the most effective
message(s) for the market segments
selected.
3. Select effective media.
4. Compose and secure a budget.
Is this example
of
Standardized
or Adapted
Advertising?
In Italy, where
James Bond is
considered too
uptight, ads
ignored star
and featured a
convict with the
line: “You
better have a
good reason to
miss the next
James Bond
film.”
Bruce Almighty in Malaysia
Motorists pass a billboard advertising
a billboard Jim Carrey’s latest movie
“Bruce Almighty: along a highway in
Kuala Lumpur, Malaysia.
Government censors have
postponed the Malaysian release of
the movie pending a decision on
whether to ban it for trivializing the
subject of God.” AP Aug. 10, 2003
Standardize or adapt
advertising?
• Standardize?
– Reduce costs
– Accelerates product launches
– Consumers preferences and product
references may becoming more similar
– Increases control, especially where local
resources are questionable
Barriers To Standardization
• Communication infrastructure
• Agencies might not serve a particular market
• Consumer literacy
• Attitudes toward product country of origin
• Differing culture, values and purchase
motivations
• Differing language
• Legal restrictions and self-regulation
Message
Standardize or Adapt?
“Cavity reducing fluoride toothpaste sells
well in the U.S. where healthy teeth care
perceived as important, but has limited
appeal in markets such as Great Britain
and France where the reason for buying
toothpaste is breath control.”
Message / Positioning: Standardize or Adapt?
• Differing culture, values and
purchase motivations affects
advertising message
– E.g. In Germany, bicycle is
primary source of
transportation; promote it
as reliable, optimal
performance regardless of
weather
– In U.S., primarily used for
recreation, focus on
weekend fun.
Language?
Standardize or Adapt
• Problems with translation, pronunciation
• Idioms
• Multiple languages in country
Misfires in Advertising
• Phonetic Problems with Brand Names
Bardok (Sounds like Brothel in Russian)
Coca Cola (Sounds like bite the Wax Tadpole)
Misair (Sounds like Misery in French)
•
Translations
•
Intent
Translation
Stepping Stone
Stumbling Block
Car Wash
Car Enema
Highly Rated
Over Rated
•
Symbols
Owl
Bad Luck in India
•
Other Countries make mistakes too
Zit
(Chocolate from Germany)
Koff (Beer)
Using English In Local
Advertisements
• English:



Requires less space in print and broadcasting
time
Conveys a cosmopolitan attitude
Endows a product or service with status
Using English and U.S. Movie
Stars in Local Advertisements
• English:
– Requires
less space
in print and
broadcasting
time.
– Conveys a
cosmopolitan
attitude.
– Endows a
product or
service with
status.
Areas of Advertising Legislation
• Mandatory Use of Language (Belgium, Canada,
France, Mexico only).
• Price Advertising
• Sales
• Prohibition of Misleading Advertising.
• Comparative Advertising
• Advertising Using Product Tests.
• Environmental Claims
• Protection of Children
Advertising Legislation

Varies by country; examples:
- France: Requirement to keep the French language pure
- Islamic countries: Ban the use of sex in advertising
- European Union Directive does not permit advertising that directly
exhorts minors to buy a product; that directly encourages minors to
persuade their parents to purchase the goods advertised, show
minors in dangerous situations
- European Union Directive prohibits television advertising for
tobacco products and prescription drugs
- European Union is attempting to harmonize broadcasting laws
- The Italian government limits television advertising to 12 percent of
airtime per hour and four percent over a week on state channels,
and 18 percent per hour and 15 percent per week on commercial
stations.
In addition, the top Italian television stations do not guarantee that
advertising shown on their stations will reach the target audience.
Comparative Advertising European Union Directive
(Effective May, 2000)
• Comparative Advertising will be allowed Provided:
– It is not misleading;
– It compares goods or services intended for the same purpose;
– It objectively compares one or more material, relevant, verifiable
and representative features of those goods or services;
– It does not create confusion between the competitor and the
advertiser;
– It does not discredit the trade-marks, goods, services or
business of the competitor; and
– It does not take unfair advantage of the reputation of the
competitor’s trade-mark.
Media Decisions
• Certain media selections make sense for some countries
but not for others.
• For instance, Peru and Mexico see the highest
percentage of advertising dollars spent on television
advertising (84 percent and 73 percent, respectively) of
any countries.
• In Kuwait and Norway the vast majority of advertising
dollars in their country spent on print media (91 percent
and 77 percent, respectively).
• Outdoor advertising plays entirely different roles in
Bolivia (48 percent of advertising) and Germany (three
percent of advertising).
Worldwide Advertising
Expenditures
by Medium
(in billions U.S.$)
Media
North
America
Europe
Japan
Newspapers
Magazines
Television
Radio
Outdoor
Internet
Directories
Direct mail
44.02
14.33
52.69
17.89
4.34
4.88
13.77
46.07
28.50
13.54
25.15
3.89
4.57
0.75
3.41
15.89
7.88
2.97
13.41
1.33
3.71
0.59
1.24
2.77
Sources: “Global Adspend Trends: Global TV Advertising,” International Journal
of Advertising, Vol. 22, No. 4, 2003, pp. 567–568.
Media Planning Considerations
• Availability- some too few; others too
many
• Cost-prices not fixed; susceptible to
negotiation
• Coverage-wide variety of media
required to reach majority of market
• Lack of Market Data
Media Selection
•
•
•
•
•
•
•
Newspapers
Magazines
Radio & Television
Satellite and Cable Television
Direct Mail
Internet
Other Media
Newspapers
• Too many (Uruguay (pop. 3 million) 21
newspapers with combined circulation of
553,000)
• Too few (Japan only 5 national daily
newspapers with page limits of 16 -20)
• Advertising may not be distinguishable
from editorial
Magazines
• Have small circulation and unreliable
circulation figures
• May have to rely on international edition of
U.S. magazines
• See Ad Age International for circulation
and rates
Radio and Television
• Major communications media in most
nations; TV out pulls radio
• Legislation varies, e.g.
– France, 12 minutes per hour per TV channel
– South Korea, Both government owned
stations broadcast only a few hours per day
– Most likely to be forbidden by government
edict to accept certain advertising
Satellite and Cable TV
• Satellite TV broadcasting growing
importance, e.g. Sky Channel
– Potentially lead to greater standardization &
wider coverage
– Challenges advertising creativity
Media Formats
•
•
•
•
Advertising on Kiosks and Fences
Outdoor Umbrellas
Billboards
Plastic Shopping Bags
Various International Formats,
Features, and Trends
• Posters on Kiosks and Fences
Advertising Yes mineral water
on fences in Bangladesh.
Advertising Marlboro cigarettes
on a kiosk in Poland.
Italian Yellow Pages
Florence Busses
Italian (Venice) Billboards
What is global vs. local in these
ads?
Budgeting Decisions
• Objective-and-Task Method:
– Identify advertising goals.
– Conduct research
– Determine cost of achieving goals.
– Allocate the necessary sum.
• Percent-of-Sales Method
– Base budget on past or projected sales.
Budgeting Decisions (contd.)
• Historical Method
– Base budget on past expenditures giving more
weight to recent expenditures.
• Competitive Parity
– Use international competitors’ budgets as
benchmark.
• Executive-judgment method
– Use collective executive opinion.
• All-You-Can-Afford
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What is International Integrated Marketing …