Chapter 16: Integrated Marketing Communications and International Advertisement

Question 1

What are the Integrated Market Communications key considerations?

Answer 1

Advertising, sales promotions, trade shows, personal selling, direct selling, public relations.

availability of channels varies in different markets

Goal is to achieve synergies

Question 2

sales promotions in international markets

Answer 2

Directed toward consumer or retailer

Local Adaptation crucial

Specific objectives

Question 3

what is the role of Public Relations (PR)

Answer 3

Create good relationships with press and media

Effective PR benefits communication with public

Question 4

What is the purpose of an ad

Answer 4

Interpret or translate qualities of products and services in terms of consumers needs, wants, desires and aspirations.

Question 5

Consumer response to ads is impacted by:

Answer 5

Culture, style, feelings, value systems, attitudes, beliefs and perceptions

Question 6

what must international advertisments coincide with?

Answer 6

Emotional appeals, symbols, persuasive approaches

Question 7

steps for international advertising

Answer 7

1. Perform marketing research
2. Specify the goals of communication
3. Develop the most effective message(s) for the
   market segments selected
4. Select effective media
5. Compose and secure budget based on what is
   required to meet goals
6. Execute the campaign
7. Evaluate the campaign relative to the goals
   specified

Question 8

Components of communication process

Answer 8

1. Information source
2. Encoding
3. Message channel
4. Decoding
5. Receiver
6. Feedback
7. Noise

Question 9

about promotional misfires

Answer 9

culture context impacts understanding of message

Psychological overlap between sender and reciever

encoding errors

Decoding errors

Question 10

legal constraints in advertisements

Answer 10

comparative advertising

advertisement of specific products
pharmaceutical, toy, tobacco, andd liquor industries

television advertisement

special advertisement taxes

Question 11

The message: Creative challenges (12 things)

Answer 11

1. Global advertising and communications process
2. Components of communication process
3. Promotional Misfires
4. legal constraints
5. Linguistic limitations
6. cultural diversity
7. Media Limitations
8. Production and Cost Limitations

Question 12

what is PR

Answer 12

Creating good relationships with the popular press and other media to
help companies communicate messages to their publics—customers, the general public, and
governmental regulators

Question 13

tactical considerations in international advertisment

Answer 13

1. availability
   - some countries have few advertising media and others have too many.
2. Cost
   media prices are suceptible to negotiation in most countries.
3. Coverage
   Closely akin to the cost dilemma. 1. difficulty reaching certain sectors of the population (2) the lack of information about the coverage.
4. Lack of market data
   verification of circulation or coverage figuers is a difficult task.

Question 14

Newspaper

Answer 14

Lack of competition in some countries leads to industry stagnation, while oversaturation in others poses challenges for advertisers.

Example: Uruguay with 21 daily newspapers for a population of 3 million.

Example: Turkey with 380 newspapers, requiring advertisers to navigate political affiliations.

Japan has only five national dailies but significant circulation, though facing challenges from electronic media

Question 15

Magazines

Answer 15

Foreign national consumer magazines are underutilized by international advertisers due to various reasons.
Limited circulation and unreliable circulation figures deter advertisers.

Technical magazines are commonly used for promoting export goods, but paper shortages pose placement challenges.

Many magazines accept more advertisements than they can accommodate, resorting to raffles to select which ads will run.

Local practices favoring international media growth contribute to the emergence of publications attempting to serve multiple nations.

Question 16

Radio and television

Answer 16

Radio and television are major communication mediums globally, with high-definition television (HDTV) gaining widespread adoption.

In countries like China, television is ubiquitous, while radio remains important where television is less developed.

Despite stable audience numbers, television advertising revenues have grown by 1.7% annually, while radio has declined by almost 3% per year over the last five years.

Advertising availability varies between countries, with some prohibiting commercial radio and television.

Question 17

Satellite and Cable TV

Answer 17

Satellite TV, exemplified by Sky Channel, reaches wide European audiences via cable.

Concerns arise over cultural imperialism and loss of control over airwaves.

American programming dominates, prompting efforts to counter influence.

Latin America and Asia receive broadcasts from networks like Univision and Star TV.

Challenges exist in targeting diverse regions effectively.

Innovations like PVI enable regional advertising customization

Question 18

Direct mail

Answer 18

Direct mail is a viable medium, especially where other media are limited.

Quirks exist in different countries, like in Chile where additional postage is collected upon delivery, limiting effectiveness.

Despite limitations, companies find success with direct mail, such as Reader’s Digest in Mexico and industrial advertisers in Southeast Asia.

In Japan, Nestlé and Dell utilize direct mail effectively, even in a media-rich environment.

In Russia, direct mail volume and response rates are high, with a response rate of 10 to 20 percent compared to 4 to 5 percent in the United States.

Russians may respond well due to feeling flattered by the attention, though this may change as the medium becomes more prevalent.

Question 19

Internet advertising

Answer 19

the Internet ranks as the second or third most important advertising medium globally, with spending predicted to double by 2020.

Businesses increasingly use the Internet for B2B communications and consumer goods advertising.

Major limitation: coverage, but improving with technological advancements and lower PC prices.

Distribution of website visitors varies across markets, with dominance of American brands and local versions of popular websites.

Increasing regulations and competition pose challenges for Internet advertising.

Trend: shift towards social and mobile media, with apps like Facebook, Twitter, and Instagram gaining importance over traditional banner and website ads.

Question 20

Social media

Answer 20

Internet has amplified word-of-mouth advertising, particularly through social media.

Marketers increasingly allow consumers to interact with brands, influencing brand perception.

Social media transcends national boundaries, influencing consumers worldwide.

Facebook dominates with over 2.2 billion users globally, charging $1 million/day for video ads.

American social media users exhibit distinct behaviors like online TV streaming and mobile usage.

Filipinos spend the most time on social media globally.

Connection speeds vary globally, with South Korea leading at 28.6 mbps.

Question 21

Mobile phone application

Answer 21

Global mobile phone usage surpasses 7 billion, driving a surge in available applications.

Top 1% of mobile users consume half of the world’s bandwidth, signaling a growing gap.

Mobile devices serve as platforms for a variety of information services, transforming consumer-marketer interactions.

M-commerce thrives in economies with widespread phone network coverage, facilitating transactions like agricultural trade in Uganda.

Text-based services like Google Trader connect buyers and sellers, demonstrating the power of mobile communication in commerce.

Mobile technology played a crucial role in humanitarian efforts, such as donations for Haiti earthquake relief via text and Twitter.

In Australia, mobiles account for 52% of digital screen time, with application usage dominating smartphone and tablet usage at 86%.

Question 22

Other Media

Answer 22

Restrictions or availability issues with traditional media lead advertisers to explore lesser-known options.

Cinema, billboards, and outdoor advertising are important mediums, especially in countries with high illiteracy rates.

Hong Kong, Tokyo’s Ginza, and New York’s Times Square are notable locations for billboards.

Unconventional examples include the Pizza Hut logo on a Russian rocket and sound trucks in Haiti equipped with loudspeakers for widespread advertising.

In Ukraine, direct faxing is an effective B2B advertising method due to unreliable postal services.

In Spain, private cars painted with advertisements, known as Publicoche, serve as moving billboards, with car owners paid for their participation.

Question 23

what is integrated market communications (IMC)

Answer 23

coordination among advertisement, sales management, public relations, sales promotions and direct marketing.

Question 24

what does global marketers face in every market

Answer 24

unique legal, language, media and production limitations

Question 25

what is the major challenge for advertisers

Answer 25

to design the best message for each maket served.

Question 26

what is an information source

Answer 26

An international marketing executive with a product message to communicate.

Question 27

what is feedback in IMC context

Answer 27

Information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process.

Question 28

what is noise in this context

Answer 28

Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process and affect any or all of the other six
steps.

Question 29

what are sales promotions

Answer 29

marketing activities that
stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation.

Cents-off, in-store demonstrations, samples, coupons, gifts, product tie-ins, contestssweepstakes, sponsorship of special events such as concerts, the Olympics, fairs, and pointof-
purchase displays are types of sales promotion devices designed to supplement