Professional Documents
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What are the components of the International Promotional Mix / Integrated Marketing Communications (IMC)?
Advertising*
16-2
Personal Selling*
Direct Selling Public Relations
Advertising
Any paid message placed in a medium. Nonpersonal communication by an identified sponsor across international borders, using broadcast, print, and/or interactive media
Examples:
Point-of-Sale Displays Free Samples Coupons Gifts Sweepstakes Contests
Sales Promotion
Sales promotions could be a vital tool when introducing a product internationally. Sampling or couponing, among other promotion strategies, could be a great way to introduce the product to an international market. E.g. Worked for Tang, General Mill's pre-sweetened orange juice mix, in Latin America. One barrier to sales promotion is that it requires support from local retailers and distributors. Eg, grocery stores must be able to cash in coupons that its customers redeemed. This entails sending the coupons and paperwork to the accounting department of the company offering the promotion. This strategy did not work for A.C. Neilson in Chile. The Chilean supermarket union opposed the coupon incentive and the promotion failed.
International Publicity
A communication about a company and/or the companys products that the company does not pay for.
Can be negative or positive.
In Italy, where James Bond is considered too uptight, ads ignored star and featured a convict with the line: You better have a good reason to miss the next James Bond film.
Barriers To Standardization
Communication infrastructure Agencies might not serve a particular market Consumer literacy Attitudes toward product country of origin Differing culture, values and purchase motivations
Differing language
Legal restrictions and self-regulation
Cavity reducing fluoride toothpaste sells well in the U.S. where healthy teeth care perceived as important, but has limited appeal in markets such as Great Britain and France where the reason for buying toothpaste is breath control.
Misfires in Advertising
Phonetic Problems with Brand Names Bardok (Sounds like Brothel in Russian) Coca Cola (Sounds like bite the Wax Tadpole) Misair (Sounds like Misery in French) Translations Intent Translation Stepping Stone Stumbling Block Car Wash Car Enema Highly Rated Over Rated Symbols Owl Bad Luck in India Other Countries make mistakes too Zit (Chocolate from Germany) Koff (Beer)
Requires less space in print and broadcasting time Conveys a cosmopolitan attitude Endows a product or service with status
Advertising Legislation
Varies by country; examples: - France: Requirement to keep the French language pure - Islamic countries: Ban the use of sex in advertising - European Union Directive does not permit advertising that directly exhorts minors to buy a product; that directly encourages minors to persuade their parents to purchase the goods advertised, show minors in dangerous situations - European Union Directive prohibits television advertising for tobacco products and prescription drugs - European Union is attempting to harmonize broadcasting laws - The Italian government limits television advertising to 12 percent of airtime per hour and four percent over a week on state channels, and 18 percent per hour and 15 percent per week on commercial stations. In addition, the top Italian television stations do not guarantee that advertising shown on their stations will reach the target audience.
Media Decisions
Certain media selections make sense for some countries but not for others. For instance, Peru and Mexico see the highest percentage of advertising dollars spent on television advertising (84 percent and 73 percent, respectively) of any countries. In Kuwait and Norway the vast majority of advertising dollars in their country spent on print media (91 percent and 77 percent, respectively). Outdoor advertising plays entirely different roles in Bolivia (48 percent of advertising) and Germany (three percent of advertising).
North America
44.02 14.33 52.69 17.89 4.34 4.88 13.77 46.07
Europe
28.50 13.54 25.15 3.89 4.57 0.75 3.41 15.89
Japan
7.88 2.97 13.41 1.33 3.71 0.59 1.24 2.77
Sources: Global Adspend Trends: Global TV Advertising, International Journal of Advertising, Vol. 22, No. 4, 2003, pp. 567568.
Media Selection
Newspapers Magazines Radio & Television Satellite and Cable Television Direct Mail Internet Other Media
Newspapers
Too many (Uruguay (pop. 3 million) 21 newspapers with combined circulation of 553,000) Too few (Japan only 5 national daily newspapers with page limits of 16 -20) Advertising may not be distinguishable from editorial
Magazines
Have small circulation and unreliable circulation figures May have to rely on international edition of U.S. magazines See Ad Age International for circulation and rates
Media Formats
Advertising on Kiosks and Fences Outdoor Umbrellas Billboards Plastic Shopping Bags
Budgeting Decisions
Objective-and-Task Method:
Identify advertising goals. Conduct research
Percent-of-Sales Method
Base budget on past or projected sales.
Competitive Parity
Use international competitors budgets as benchmark.
Executive-judgment method
Use collective executive opinion.
All-You-Can-Afford