International Marketing Week 6 Midterm Exam Winter 2024 PDF

Midterm Exam Next week In-class exam Multiple choice True/false Put things in the right order All information is from the class presentations  Group Presentations Will be discussed the week after the midterm ...

Midterm Exam Next week In-class exam Multiple choice True/false Put things in the right order All information is from the class presentations  Group Presentations Will be discussed the week after the midterm  Creating a mix Key criteria for creating a marketing communications mix degree of control required over the delivery of the message amount of available financial resources audience size, and geographic dispersion media preferences and the behavior of the target audiences tasks to be accomplished  Control The main aim is to make sure the intended message is shared with and among the target audiences  The message must be understood in the intended way  Interference or “noise” can corrupt or distort the message  There is a high level of control from design to transmission  Feedback and dissemination of the message – partial control  Companies want to provoke conversation about their brand or product  Once the conversation has been provoked, control is gone  Financial Resources Determine the extent to which a message can be designed and spread Larger budgets = more diverse media, more intensity Use of 3rd parties can weaken control of the message Depends on efficiency between advertising agency and client In B2B, the sales dept. usually has the bulk of the marketing budget Audience size and geographic dispersion Larger audiences (national/international) Effective use of advertising and sales promotion Internet, Television, Radio Smaller audiences (small groups/individuals) Personal selling, word-of-mouth Personal attention Design, explain, demonstrate Sales visits, conferences, trade shows, expos  Media behavior and preferences Different consumers use different media Choice of media, location, timing must all be customized to fit the target audience Older generations – Broadcast media, print, direct mail Younger generations – Web videos, influencers, direct mail  Media behavior and preferences Consumers can use different media for different purposes Visuals are good for awareness and education Print and television have high trust value Internet is very timely and adaptable, not much delay  Communication tasks What is the purpose of your communication? DRIP Direct marketing has benefited from advances in technology Cookies and AI algorithms Call-to-action makes it a good persuasive tool  B2B Organizational purchases Company usage More formal setting Benefits of use more important than price  lower price sensitivity, emphasis on value Larger number of decision makers Heavy investment in personal selling Narrow range of media Negative communications have a stronger impact  B2C Consumer purchases Personal usage More informal communication Higher price sensitivity Decision maker is a single or few individuals Large budget for brand management Wide range of media used Negative communications are more easily managed  Linear Model of Communications Developed in 1955 by Wilbur Schramm (USA) Basic model of mass communication Linear model  Emphasizes the ‘transmission of information, ideas, attitudes, or emotion from one person or group to another (or others), primarily through symbols’ (Theodorson and Theodorson, 1969). The quality of the linkages between the various elements in the process determine whether a communications event will be successful  Linear Model of Communications 1. Source: the individual or organization sending the message. 2. Encoding: transferring the intended message into a symbolic style that can be transmitted. 3. Signal: the transmission of the message using particular media 4. Decoding: understanding the symbolic style of the message in order to understand the message. 5. Receiver: the individual or organization receiving the message. 6. Feedback: the receiver’s communications back to the source on receipt of the message. 7. Noise: distortion of the communications process, making it difficult for the receiver to interpret the message as intended by the source. Fill, Turnbull Pg.41  Source/encoding Individual or organization with a need to transmit a message Combination of words, pictures, symbols and music Requires understanding of The target audience’s problem Level of knowledge/understanding Source must have certain expected qualities Show authority Have conviction Demonstrate/give the appearance of expertise Engender trust Certain level of attractiveness  Experts give credibility Celebrities give status Professionals share knowledge/experience  Signal The form of the message that is transmittable oral non-verbal written symbolic form verbal sign Channel How the message is transmitted from source to receiver Can be personal or non-personal  Channel Personal Face-to-face Word-of-mouth Generally more persuasive More flexible timing Can react to the environment Non-personal Mass media Must be produced in advance (often far in advance)  Decoding/Receiver Transforming and interpreting a message into thought Influenced by  Receiver’s realm of understanding  Experiences  Perceptions  Attitudes  Values  Mood  Response The set of reactions a receiver has after seeing, hearing or reading a message Calling an enquiry telephone number Returning or downloading a coupon Buying the product Sending a text/email Storing information in long-term memory for future use Clicking on a link Requesting a free sample  Feedback Part of the response that is sent back to the sender Needed for successful communication More important than just “Was the message received?” “Which” message was received? Receiver may have decoded the message incorrectly Completely different/unexpected set of responses initiated Feedback must be evaluated effectively Time delays (not a problem with personal selling) How to judge success?  Sales  Ability to recall or recognize  Customer visits an ad  Noise A complicating factor, which may influence the quality of the reception and the feedback Omission or distortion of information Always present May be caused by a number of factors Cognitive Inappropriate message Physical Telephone rang Someone asked a question or coughed Competing messages interfered with the receiver’s attention  Realms of understanding When the source and the receiver understand each other there is a greater likelihood of successful communication attitudes experience perceptions values of both parties behavior “Common ground” Enormous amounts of money are spent on target market research The more you know about your target market, the more likely you are to understand them  Influencers Opinion leaders People who receive information and then pass it on to their peers  They are of the same-social class but have a higher social status within a peer group  Usually 1st adopters, considered more persuasive than mass media Opinion formers Someone knowledgeable in their field derived from job, status, qualifications or first-hand experience  Doctors/Pharmacists, movie critics, journalists, chefs, etc… Opinion followers Majority of consumers Receive the messages via mass media + influencers In the end, they still process information independently  Influencer Model of Communication Information flows to opinion formers and leaders as well as the target audience (TA) AKA Two-step model Possibility of reaching members of TA who may have missed the message Reinforces the impact of the message Multi-step model More closely resembles the network of communication participants While influencer models are more developed than the original linear model they are still a simplified version of reality  Interactional model of communications Illustrates the complexity associated with interactive communications Brings the idea of “conversations” or “dialogue” into play  Messages which are shared, updated and responded to Continues the progression from one-way to two-way to interactive based communication Emphasizes the move towards relationships between businesses and consumers I hope you’re ready for this…..  Word-of-mouth (WoM) Conversations about products, services and brand-related marketing messages and meanings Informal Interactional Unplanned Bi-directional Unsolicited More believable  What motivates WoM? People like to share their experiences, especially those that are distinctly good or distinctly bad (product or service) Speaker can assert their status or prestige Speaker can be seeking reassurance about their decision Product might be desirable or show feelings of love, friendship or caring Speaker might be emotionally invested enough to become a brand advocate A person who believes strongly in a product  Voluntary WoM Most natural form of interpersonal conversation No coercion No external influence  Prompted WoM Organizations encourage opinion leaders/formers to share information Uses the credibility of the leader/former to prompt conversations about the product/service Brands can follow the interactions through blogs, online communities, forums and other social media  Managed WoM Organizations target, incentivize and reward opinion leaders for recommending their offerings to their networks of followers Opinion leaders lose their independence and objectivity within the communications process Become paid representatives of a brand Possible decrease or loss of credibility for the influencer  Celebrity endorsement An extension of the influencer model Consumers must decide what a celebrity “represents” to them Behavior Ability Comments Particular attributes Meaning assigned to the celebrity is transferred to the product and then to the consumer Michael Jordan is a great athlete → He uses great shoes → I can be a great athlete with those shoes  Risky Business All of the influencer models come with risk Companies want to capitalize on the reputation of the influencers Influencers want to capitalize on the reputation of the companies 2015 Subway scandal 2018 H&M scandal 2023/2024 Diddy