Section 10 - Global Advertising and Sales Management

Question 1

Integrated Marketing Communications

Answer 1

Marketing communications tells customers about the benefits and values of a company’s products or services.
Integrated Marketing Communications: to achieve a coordination of different promotional methods that reinforce each other. It uses advertising, public relations, personal selling, and sales promotion and combines them to provide a clear and consistent message. This is important when selling across borders!!!

Question 2

Global Advertising

Answer 2

Advertising is any paid message that is communicated to a target audience. Regarding scope, it can be single country, the most standardization.
Regional; some standardization.
Global; formula and packaging balanced between standardization and customization.

Question 3

Standardization vs. Adaptation Problems

Answer 3

• Using the wrong channel where the intended audience doesn’t hear the message.
• The message may reach the target audience but may not be understood or may even be insulting.
• The message may reach the target audience and be understood but it doesn’t have sufficient impact to entice the receiver to take the desired action.
• The message’s effectiveness is reduced by noise.

Question 4

Standardization vs. Adaptation Primary Issue

Answer 4

How much will you standardize vs. adapt for each country or regional group?
Supporters of adaptation point out that most marketing errors happen because advertisers fail to understand foreign cultures.
Supporters of standardization argue properly designed advertising can cross borders with minimal modification.

Current perspective: Few global ads that work well everywhere.

Question 5

Advertising Appeal: Creative Strategy

Answer 5

The Creative Strategy: underlying statement/concept/message/emotion of a particular message or campaign.
Rational Approach: relies on logic and speaks to consumers intellect (based on biased evidence).
Emotional Approach: relies on emotional triggers, hoping it will retrigger when the product is seen later. Done 80% of the time in North American B2C advertising.

Question 6

Advertising Appeal: Selling Proposition

Answer 6

The obvious key message of the ad; a promise or claim that captures the reason for buying the product.

Question 7

Advertising Appeal: Creative delivery

Answer 7

How the proposition is presented.
Options:
Straight sell (often with scientific evidence).
Demonstration (these close deals).
Comparison (cultural-acceptance issue). Accepted in North America but not in Asia.
Slice of life.
Animation or Fantasy.
Dramatization. These work really well but they are expensive to create. They are short stories buried inside a movie which advertises something.

Question 8

Cultural Considerations

Answer 8

Images of male/female intimacy are acceptable in some cultures, in bad taste in others, illegal in others.
Wedding rings on different hands in different countries.
Who makes purchase decisions for home products, the actual user or the head of the household?
Humour is perceived differently in each country.
Partial nudity and same-sex couples are acceptable in only some countries or offensive and illegal in others.
Food is the most culturally sensitive category.

Question 9

Global Media Decisions

Answer 9

Mediums: newspapers, magazines, TV, billboards, Internet, social media, transit, direct mail, outdoor ads, etc. The ones you choose are important.

Question 10

Public Relations in Global Marketing Communications

Answer 10

Image advertising: enhancing the public’s perception of the business and its products.
Advocacy advertising: presenting the company’s point of view on a particular issue in a way that will generate positive responses.

Question 11

Sales Promotion

Answer 11

Sales promotion refers to any paid consumer or trade communication that is designed to add tangible value (real or perceived) to a product or brand.

Question 12

Sales Promotions

Answer 12

Sampling: provides consumer with an opportunity to try the product at no cost.
Couponing: printed certificates that entitle the bearer to a price reduction or some other special offer for purchasing a particular product; accounts for 70% of consumer promotion spending in the U.S. Mail-in rebates offer great deals but less than 1/3 use it.
Social Couponing: scannable coupons; immediately downloaded.

Question 13

Personal Selling

Answer 13

Defined as person-to-person communication between a company representative and a prospective buyer. The focus is to inform, persuade, and close a deal.
Short-term goal: make a sale.
Long-term goal: build a relationship.

Question 14

Personal Selling: International Issues

Answer 14

Political risks, currency fluctuations, market unknowns.

Question 15

Strategic/Consultative Selling Model

Answer 15

Based on a willingness to change the role of the marketer from a salesperson to a problem solver.

Question 16

4 Key Perspectives of Strategic/Consultative Model

Answer 16

• Relationship Strategy: a long-term plan to establish and maintain a high-quality relationship. Be a problem-solver, a partner (not a sales person), project a ‘win-win’ attitude, demonstrate high ethical standards.
• Product Strategy: select and present products that will solve a customer’s problems. Be a product export, offer only those products that solve problems for the customer.
• Customer Strategy: listen to customers and be responsive to their needs/concerns. Research each customer’s unique business model and needs.
• Presentation Strategy: design a presentation uniquely to the customer’s needs. Include a solution to a problem and offer superior follow-up.

Question 17

The Presentation Plan

Answer 17

• The Approach: initial contact with customer. Do your research before contacting the customer.
• The Presentation: the customer’s needs are matched to specific products/services offered by your business.
• The Demonstration: prove the claims you just made in the presentation.
• The Negotiation: assume the client will want to improve their position (regardless of how much they want/need your product). They should feel like a ‘winner’ by the end.
• The Close: this is the process of asking for the sale.
• Servicing the Sale: provide what was offered and agreed to.

Question 18

Sales Force Nationality: Expatriates

Answer 18

Expatriates: sending someone from Head Office to manage the new expansion.
Advantages: superior product knowledge, demonstrated loyalty and performance standards, good training for future promotions, and greater HQ control.
Disadvantage: higher cost (3x higher!), higher turnover (an ideal candidate may be stolen by competitors), costs for language and cross-cultural training.

Question 19

Sales Force Nationality: Host-Country Nationals

Answer 19

Hiring someone from the new country to manage the new expansion.
Advantages: Economical, superior market knowledge, language skills, superior cultural knowledge, fast implementation.
Disadvantages: unfamiliar with the business’ internal policies; also needs product training, your selection must have high social status, short-term loyalty; subject to experience gained and other offers.

Question 20

Sales Force Nationality: Third-Country Nationals

Answer 20

An employee who travels the world to open and setup new international operations.
Advantages: multi-national cultural sensitivity, multi-language skills, familiar with corporate policies, experience extends across nations/projects.
Disadvantages: difficult for locals to identify as corporate representative, income expectations, requires some country-specific training, loyalty not assured, subject to promotion opportunities and offers from competitors.

Question 21

Direct Marketers: Global Errors

Answer 21

• The world is full of people who are different; do not treat them the same.
• Marketing is ‘local’; not everything designed for one country will work in another.
• Accept that designing a market plan for a group of countries will not be as effective as individual plans, but will be more cost-effective.
• Do your research!

Question 22

Raising Awareness: Sponsorships; Product Placement

Answer 22

Sponsorships: a company pays a fee to be associated with an event, team, athletic association, or sports facility.
This strategy combines the elements of PR and sales promotion with the intent to draw media attention.
Product Placement: the concept is to have a company’s products and brand names appear in TV shows, movies, and other types of entertainment, and be worn or used by famous people.

Issues for Marketers: the movie’s success (or person’s ongoing reputation) will reflect on the product’s reputation.