International Marketing Week 12 Winter 2024 PDF

International Communication Policy Once firms decide on the optimum product standardization/adaptation strategy Role of international promotion To communicate with customers so as to provide information that buyers need to make purchasing decisions Product and promotion go hand...

International Communication Policy Once firms decide on the optimum product standardization/adaptation strategy Role of international promotion To communicate with customers so as to provide information that buyers need to make purchasing decisions Product and promotion go hand in hand Culturally sensitive issues must be addressed Decisions on message and channel(s) must be made  Communication Tools Advertising is usually the most visible component of the promotion mix Other tools are available as well Personal selling Exhibitions Sales promotions Publicity (public relations) Direct marketing (including the internet) Again, decisions must be made about standardization vs adaptation  Development of the Seller - Buyer Relationship Beginning: Seller uses promotional mix to entice buyers Most buyers must be persuaded Very low levels of buyer-initiated sales Over time Buyers become more proactive in seeking the firm’s offerings Depends on the quality of the consuming and post-purchase experience Good experiences create brand loyalty Present/Future Positive experiences lead to higher degrees of buyer initiative Reverse marketing (pull strategy)  Creating Effective Communications To communicate in an effective way The sender needs to have a clear understanding of the purpose of the message, the audience to be reached and how this audience will interpret and respond to the message Obstacles to effective communication “Noise” Ads of competitors making similar or contradictory claims Degree of fit between medium and message Wordy or complicated messages are more suitable for text than video  Advertising One of the most visible forms of communication Generally limited as a one- way method of communication Advertising in international markets may have difficulties Often is the most important part of the communications mix for consumer goods Large number of small- volume consumers are reached through mass media Business-to-Business uses more personal selling  Advertising Objective setting A specific communication task to be accomplished with a specific target audience during a specific period of time Although methods may vary from country to country, major objectives remain the same Examples: Increasing sales X% from existing customers by encouraging them to increase the frequency of their purchases Stimulating impulse purchases by Y% (can be as small as a fraction of a percent) Obtaining new customers by increasing consumer awareness of the firm’s products Improving the firm’s corporate image among a new target customer group Focus group or questionnaire feedback  Advertising Budget Decisions Different firms decide the size of their promotional budget in various ways Advertising is just one (very important) part of the marketing mix Firms must choose how much will go to each market and for how long 3 popular approaches to determining the advertising budget Affordable approach/percentage of sales Competitive parity approach Objective and task approach  Approaches to Choosing an Advertising Budget Affordable approach/percentage of sales Setting the promotion budget at the level management thinks the company can afford Usually set as a percentage of sales Seems fair to markets in different countries Looks good in a budget meeting Guarantees the firm doesn’t overspend But Is based on past performance, not future expectations Doesn’t take into account markets with different advertising objectives Can’t be used to enter new markets or launch new products Zero sales = zero advertising Approaches to Choosing an Advertising Budget Competitive parity approach Setting the promotion budget to match competitors’ outlays Estimating and duplicating the amounts spent on advertising by major rivals It’s often more difficult to estimate spending of foreign competitors Especially true if competitors are private firms or foreign laws don’t require transparency Different firms act differently in different markets or at different stages of the product life cycle Just because someone else is doing it doesn’t mean they’re right Approaches to Choosing an Advertising Budget Objective and task approach First determine the advertising objectives, then ascertain the tasks needed to attain these objectives Allows for a cost–benefit analysis Relates objectives to the cost of achieving them Although this is a logical and “theoretically correct” approach, this method is not widely used (only 20% of companies in the US, UK and Canada)  Communications Mix The tools used to communicate with current or potential customers Advertising Social media Product packaging Direct marketing Websites Events Exhibitions  Message Decisions Unique selling proposition (USP) A unique characteristic of a product or brand identified by the marketer as the one on which to base a promotional campaign Often used in a product-differentiation approach to promotion Can a campaign developed for the domestic market be used for a foreign market? Standardization vs Adaptation  Media Decisions Which media are to be used for advertising? Mass media or targeted approach Mass media (television, radio, newsprint) Very effective when a significant portion of the general public are potential customers Depends on the target market Target market’s demographic and psychological characteristics Regional strengths of the product Seasonality of sales  Media Selection Criteria Reach Total number of people in a target market exposed to at least one advertisement in a given time period “opportunity to see” or OTS High reach is important for new markets or new products Frequency: Average number of times within a given time period that each potential customer is exposed to the same advertisement High frequency informs customers that a campaign is under way Ideally a campaign would have both high reach and frequency Budget constraints usually prevent this for any extended period of time  Media Selection Criteria Impact: Depends on compatibility between the medium used and the message Consumers in a market with a lower literacy rate will respond better to visual communications than text Expensive luxury items are more appropriate for specialized magazines than billboards or television Marketing in the pre-social media era One-way advertising – Brand to Consumer Try to hit as many “pins” (target consumers) as possible Push model Company kept a lot of control over the communication Fairly easy to evaluate Social media marketing world Two-way interaction Brand message (pinball) is sent out into the dynamic (chaotic) market environment Social media (bumpers) redirect the ball Marketing managers may try to guide the ball but they have little control If something goes viral it is like a multi-ball bonus A company’s luck can change very  Advertising Agencies Advertising internationally can be complex and problematic Many firms use advertising agencies for advice and assistance Advertising agencies have access to skilled people who are experienced in the international field Expert copywriters Translators Photographers Film-makers Package designers and Media planners  Advertising Evaluation Testing effectiveness is often more difficult in international markets Distance and communication gap between domestic and foreign markets Conditions for testing may differ Example: conditions for interviewing people may differ between countries Some firms use sales results as a measure of effectiveness  International Communication Policy Is a creative challenge firms must face to successfully enter and thrive in a foreign market A comprehensive plan must be implemented which specifies A clear message A defined budget Clearly defined roles for all departments  Final Exam All information will come from the slides of the presentations uploaded to SIS (including 1 question from Dr. Halik’s presentation) Mostly multiple choice Some short answer Some “put this in the correct order” Some True of False You need 60% to pass the course You must register for the exam on SIS Make sure you check the time, date, room and building of the exam!!!