Chapter 16: Integrated Marketing Communications and International Advertisement Flashcards
What are the Integrated Market Communications key considerations?
Advertising, sales promotions, trade shows, personal selling, direct selling, public relations.
availability of channels varies in different markets
Goal is to achieve synergies
sales promotions in international markets
Directed toward consumer or retailer
Local Adaptation crucial
Specific objectives
what is the role of Public Relations (PR)
Create good relationships with press and media
Effective PR benefits communication with public
What is the purpose of an ad
Interpret or translate qualities of products and services in terms of consumers needs, wants, desires and aspirations.
Consumer response to ads is impacted by:
Culture, style, feelings, value systems, attitudes, beliefs and perceptions
what must international advertisments coincide with?
Emotional appeals, symbols, persuasive approaches
steps for international advertising
- Perform marketing research
- Specify the goals of communication
- Develop the most effective message(s) for the
market segments selected - Select effective media
- Compose and secure budget based on what is
required to meet goals - Execute the campaign
- Evaluate the campaign relative to the goals
specified
Components of communication process
- Information source
- Encoding
- Message channel
- Decoding
- Receiver
- Feedback
- Noise
about promotional misfires
culture context impacts understanding of message
Psychological overlap between sender and reciever
encoding errors
Decoding errors
legal constraints in advertisements
comparative advertising
advertisement of specific products
pharmaceutical, toy, tobacco, andd liquor industries
television advertisement
special advertisement taxes
The message: Creative challenges (12 things)
- Global advertising and communications process
- Components of communication process
- Promotional Misfires
- legal constraints
- Linguistic limitations
- cultural diversity
- Media Limitations
- Production and Cost Limitations
what is PR
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
tactical considerations in international advertisment
- availability
- some countries have few advertising media and others have too many. - Cost
media prices are suceptible to negotiation in most countries. - Coverage
Closely akin to the cost dilemma. 1. difficulty reaching certain sectors of the population (2) the lack of information about the coverage. - Lack of market data
verification of circulation or coverage figuers is a difficult task.
Newspaper
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
Magazines
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.
Radio and television
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.
Satellite and Cable TV
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
Direct mail
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.
Internet advertising
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.
Social media
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.
Mobile phone application
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%.
Other Media
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.
what is integrated market communications (IMC)
coordination among advertisement, sales management, public relations, sales promotions and direct marketing.
what does global marketers face in every market
unique legal, language, media and production limitations
what is the major challenge for advertisers
to design the best message for each maket served.
what is an information source
An international marketing executive with a product message to communicate.
what is feedback in IMC context
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.
what is noise in this context
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.
what are sales promotions
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
