Chapter 6 Flashcards
Int. communication & int. sales policy
What does int. communications policy refer to?
Planning, implementation, control of all communication policy activities of a company as well as integration into an international communications mix to achieve goals.
What is essential in communications policy?
Standardization
What are standardization barriers in int. communications policy?
-language
-national culture: social behavior, cultural expectations, norms, values, religious aspects, interpretation of symbols
-media infrastructure: different penetration rates of TV and radio, internet connections
-legal regulations: comparative advertising, checking of effectiveness of large-scale advertising campaign (through pretests and forecasts)
What are remedies for language barriers?
Hiring professional language team skilled at translation and localization
What subjective methods can be used to to test and record reaction of test subjects?
-ranking procedure: evaluation of advertising medium and ranking them according to attractiveness, expressiveness, charisma-most positively rated is then selected
-pair comparisons- more attractive option from two variants is selected
-scale test: evaluation on basis of different scales and compared with previously created profile, variant that most closely matches profile is selected
What objective procedures can be used to measure reaction of test subjects?
-tachistoscope procedure: test subject looks at advertising medium for fractions of a second and describes impressions
-psychogalvanometer method: measures galvanic skin responses, based on assumption that response corresponds to interest of observer
-pupil change movement: pupil diameter is measured in intervals- criticized but has good success rate
-saliva flow measurement: strength of saliva flow is analyzed, used in food advertising
What are influencing factors in viral media campaigns?
-source of message (company, brand product)
-core of viral message (added values & incentives)
-type of seeding (planned distribution) and included channels
-characteristics of senders & receivers
How does airbnb differentiate its social media presence?
by country, so that content on each account is more relatable to audience
What is sales policy?
component of the marketing mix (4Ps) that needs to be adapted more in different countries due to differing market conditions.
Higher differentiation is countered by standardization of sales activities.
What are the four areas of sales policy that have special features in international context?
-design of distribution system
-distribution logistics
-organization of relationships with sales partners & key accounts
-design of sales activities
Why is it difficult to standardize distribution system on international level?
-different sales organizations:
-different depth and breadth of distribution channels: direct marketing or dependent on exporters/importers, lack of knowledge of conditions in target country=hiring intermediaries
-cultural differences: preferences for fixed of variable compensation for sales team
What organizations do companies need to hire for international distribution?
-local distribution department, foreign sales office, foreign distribution centers, external workers (sales agents, brokers, parcel services, wholesalers and retailers)
What are in-house sales bodies/ organs for int. business activities?
-travelers abroad
-domestically located sales department
-domestically located department (outsources to an independent company)
-sales branch located abroad
-distribution center located abroad
What are external sales bodies/ organs for int. business activities?
sales assistant:
-commercial agent
-broker (or agent)
sales agent:
-export wholesaler, located domestically
-import wholesaler in a foreign location
-foreign intermediary
-foreign retailer
What is distribution logistics?
making demanded goods available in desired type, quantity and composition at required place and time
What are international distribution processes?
packing, shipping, transporting, logistics (storage)
Where do problems arise in logistics in int. distribution?
-foreign market (intranational logistics)
-cross-border movement of goods
What are the problems in intranational logistics?
-same problems as national logistics
- solution: adaptation of logistical activities to the conditions (topography, transport, communication, infrastructure, climatic influences)
What are the factors to be considered in international logistics/ cross-border movement of goods?
-currency differences, tariff and non-tariff barriers, tariff rate differences, import regulations
-solution: set up larger distribution centers that can take over entire regions
What are problems with sales partners and key accounts that might occur?
-lower initial trust levels
-lower commitment (partner side)
solution:
-define duties and responsibilities of all personnel
-establishment of key performance indicators (KPI) and levels of accountability (team and individual)
-monetary rewards to those that meet targets
-performance monitoring and documentation of work output
What other problems occur in organization of sales activities?
-cultural differences (behaviors in negotiation)
solution: comprehensive understanding of cultural differences to avoid misunderstandings
What are the 3 types of culture based of Lewis’ model of culture?
-linear active (Germany, Switzerland): the agenda determines course and content of discussion, starts the meeting a few minutes task-oriented, highly-organized planners, who complete action chains by doing one thing at a time, preferably in accordance with a linear agenda.
-multi-active (Italy, Portugal, Spain, Greece, Brazil, Chile): emotional, loquacious and impulsive people who attach great importance to family, feelings, relationships, people in general. They like to do many things at the same time and are poor followers of agendas.
-reactive (Asian countries) are good listeners, who rarely initiate action or discussion, preferring first to listen to and establish the other’s position, then react to it and form their own opinion.
What are possibilities through internet in int. distribution?
-makes possible to set-up multinational sales system or supplement it by multi-channel strategy
-SME can gain access to international markets- if they have functioning distribution logistics
