MKTG 7506: International Marketing Management

27 April 2010

International Marketing Communications

Read: C & G Chapters 16 & 17 Agarwal (1995) Papavassiliou & Stathakopoulos (1997) Welch et al. (1998)
Dr Ravi Pappu Office: Room 416 Colin Clark Building Phone: 3346 8089 Email: r.pappu@business.uq.edu.au Consultation: Monday 3-4 PM; Room 416 Colin Clark

Learning Objectives
Factors in International Communication Standardization Vs Adaptation Publicity and Public Relations International Sales Promotion Personal Selling

Opening Cases P&G in Japan

Proctor & Gambles biggest advertising blunder in Japan. Stork delivering babies story - PAMPERS baby nappies in US market. Used the identical campaign in Japan. Japanese folklore was different babies in giant peaches floating on the river - P&G now uses expert mom. 3

Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

The Communications Process

(a) Sender (b) Encoding (c) Channel/Message (d) Decoding (e) Receiver (f) Noise/Interference (h) Feedback The role of the shared field of experience (Onkvist, 2004)

Sources environmental factors

Receivers environmental factors

Sources field of experience

Receivers field of experience

Source

Encoding

Information

Decoding

Receiver

Noise

The Process of Communication Onkvisit (2004) 5

Principles of Effective IM Communication (Onkvisit and Shaw, 2004)

The message must reach a persons sense organs. Must not contradict a persons cultural norms. The sender create a message that arouses the receivers need. The message must gain control of the receivers behaviour at the right place and time.

Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

Factors in International Communication

Culture Language Education Media infrastructure Government regulations

Communicating in High and Low Context Cultures

Culture affects what people like and dislike - how they interpret signals and symbols. Attitudes towards and biases against particular products and services. High and low context cultures (Hall, 1976). High context (a) Interpretation of message depends on contextual cues. Low-context distinctive written text or spoken word lesser emphasis on contextual cues.

Communicating in High and Low Context Cultures

Communication style High context implicit style emphasis on the overall feel and outlook implied images and sublime messages high context cultures are slower in internet adoption. Low context explicit - actual product with large amount of information Internet.

Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

Cultural Context - Revisited

High context Japanese

IMPLICIT
Spanish

Arabian

Latin American

Italian English (UK) French

English (US) Scandinavian Low context Swiss

German
EXPLICIT
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Communicating in H and L context Cultures (Dulek et al, 1991)

in HC cultures (a) Conversational principles (1) more about the company (2) clarity of the message (3) identify with recipient (4) attention to receiver. (b) Presentation principles (1) respect the culture (2) more formal structured approach (3) patience with cultures. (c ) Written word principles (1) structure the message according to culture (2) symbols, brand names need to be adjusted. Cultural barriers religion, political issues
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Language and Education

Language Translations - no guarantee that the same message is being communicated. Meaning is culturally influenced - context Multiple languages. Simple carelessness, multiple meanings and local slang (Ricks, 1993) (example). Education Different media need different levels of education. Low literacy use of visuals.
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Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

Highlight - Five Different Ways of Saying TIRES in Spanish

Spanish word Cauchos Cubiertas Gomas Llantas Country Venezuela Argentina Puerto Rico Mexico, Peru, Guatamala, Colombia, and elsewhere in Central America Chile

Neumaticos

Source: Hanni, Ryans & Vernon (1995)

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Highlight - Language Related Issues (Ricks, 1993)

Simple carelessness Original slogan: It takes a tough man to make a tender chicken. Translation: It takes a sexually excited man to make a chick affectionate. Multiple meanings Parker pen campaign in Brazil Avoid embarrassment use Parker pens. Local slang US slogan in Britain you can use no finer napkin at your dinner table.
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Media Infrastructure
Availability, reach, cost and effectiveness of media. Overall quality of media Available? If so in the same form. Advance booking lag may restrict the use of media. Constraints on the production of commercials. The issue of reach is important in comparing effectiveness between countries.

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Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

Highlight
Until recently France limited commercials to a daily total of 18 minutes, but now has extended to 12 minute per hour per TV channel. South Koreas two government owned TV channels do not broadcast between midnight to 6.00am commercials are limited to 8% of airtime and are shown in clusters at the beginning and the end of a program.

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Government Regulations
Media use regulation - to protect the countrys citizens from undesirable influences. Self-regulation and code of ethics. Types of advertising regulations Country-specific regulations Advertising of vice products and pharmaceuticals

(b) Comparative advertising (c) Content of advertising message (d) Advertising targeting children
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Advertising Targeting Children

Quebec, Canada simply prohibit TV stations airing childrens ads. In Finland children cannot speak or sing the name of a product in commercials. In Turkey children are only are only allowed to watch TV ads with parental guidance. Italy bans commercials in cartoon programs that target children.

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Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

Pull and Push Strategies in International Promotion

Pull strategies (a) Advertising usage, form, content differences (b) Publicity and public relations Push strategies (c) Sales promotion e.g. trade shows (d) Personal selling e.g. trade missions

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Message Standardization Vs Adaptation

Definition of an standardized advertisement: an ad that is used internationally with virtually no change in its theme, copy, or illustration (other than translation) Recent view Three schools of thought (Onvisit & Shaw, 2004) standardization Individualisation (adaptation) compromise

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Standardization
Faster communication convergence of art, literature, media availability, tastes, thoughts, religious beliefs supports standardisation. Even when people are different, basic physiological and psychological needs are same - Success of ad campaign depends on motivation pattern. Difficulties in modifying some ad campaigns.

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Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

Arguments for Standardization

Nature of product : industrial or high-tech (versus consumer product) Global consumer segments Home market positioning strategy is meaningful is host market The need for consistent image Cross-fertilization Similar political, cultural and legal environments Authority for setting policies for message content is centralised Scale of economies

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Adaptation
Ad campaigns must make note of the differences among countries (e.g. culture, taste, media, discretionary income). The case of Shiseido used only Japanese models. Arguments for adaptation (a) cultural differences (b) advertising regulations (c) Firms objectives in a particular market (d) nature of the product (e) Not-invented-here (NIH) syndrome.

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Compromise
Recognizes local differences Cautions against wholesale or automatic use of standardization Some global marketing campaigns can be used in specific countries under certain conditions Pattern standardisation

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Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

Publicity and Public Relations

News releases - press conferences overseas to announce a new product - a different strategy or a significant linkage with a local interest. Sponsorships - relate a company or a brand to an event, in order to benefit from the exploitable commercial potential associated with that activity. Public relations activities - resulting messages come across as news, and therefore have more credibility than advertising. Agencies availability of Intermediaries.
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International Sales Promotion

Trade shows provide the opportunity for meeting potential purchasers without making an appointment. can take a number of forms. open to the public or to the trade only. a combination of trade-only days and one or two public days at the end. May be classified general or specialized.

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Sales Promotion
Trade shows Effective participation Research Attracting an audience Infrastructure issues Visitor motivations Measuring outcomes (sales direct sales and indirect impact)

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Week 8: International Marketing Communications

MKTG 7506: International Marketing Management

27 April 2010

Trade Shows - Arguments for Participation

Some products need to be seen by prospective customers Produces goodwill and allows periodic cultivation of contacts Finding an intermediary may be the best reason Best way to contact government officials Market research intelligence gathering opportunities Opportunities for a sizeable number of prospects
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Trade Shows - Arguments Against Participation

High costs government subsidies. Difficulty in choosing the appropriate trade fair resource implications. Coordination problems for larger exporters with multiple divisions Joint participation requires joint planning.

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Sales Promotion
Technical seminars particularly useful when marketing a product or service overseas that embodies a technology new to that market Must have education and information value Ideal when there is degree of uncertainty about technology and after sales services Target influencers than purchasers

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MKTG 7506: International Marketing Management

27 April 2010

Personal Selling
Trade missions A series of blind dates! mediated by government agencies Can be inward and outward Outward trade missions can be: General policy-related product-category project-related SMEC in Iraq

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Personal Selling
Trade missions Disadvantages the possible existence of competitors on the mission the long planning time required the fact that in many cases participation is by invitation only fewer contacts can be made than at trade displays

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Personal Selling
Trade missions Advantages facilitates acquisition of information on the overseas market enables access to decision makers at a senior level puts mission members in contact with planners and regulators generates publicity for the members products/services assists in relationship-building leads to synergy

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MKTG 7506: International Marketing Management

27 April 2010

References
Agarwal, M. (1995), Review of a 40-year debate in international advertising: Practitioner and academician perspectives to the standardization/adaptation issue, International Marketing Review, Vol. 12(1), pp. 26-48. Welch, D.E., Welch, L.S., Young, L.C. and Wilkinson, I.F. (1998), The importance of network in export promotion: Policy issues, Journal of International Marketing, Vol. 6(4), pp. 66-82. Papavassiliou, N. and Stathakopoulos, V. (1997), Standardization versus adaptation of international advertising strategies, European Journal of Marketing, Vol. 31(7), pp. 504527.
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