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Integrated Marketing Communications and

International Advertising
Chapter 16
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
I ntegrated marketing communications
…the whole is greater than the sum of the parts
Integrated Marketing
Communications (IMC)
IMC consists of:
Advertising
Sales Promotions
Trade Shows
Personal Selling
• Usually short term efforts that are meant to stimulate
immediate purchases
Direct Selling
Public Relations
• Can be good or bad press
– Bridgestone/Firestone Tires

Some communication tools
Advertisin
g
Sales
promotion
Direct
marketing
Publicity
and PR
Sponsorship
Personal
selling
Different tools
serve different
purposes...
…but boundaries
blurred
Communication tools: the promotional mix
Advertisin
g
Sales
promotion
Direct
marketin
g
Publicit
y
and PR
Sponsorship
Personal
selling
short-term
incentives
to encourage
sales

non-personal communication by an identified sponsor,
transmitted to target audience via (mass) media
creating, developing
direct relationships
with individual
customers
Making“news”; building
goodwill, understanding
between organisations &
publics

Informing, persuading
potential customers through
personal communication
supporting event, person,
etc, to enhance sponsor’s
awareness, image, etc.

etc..
Sales Promotions in International Markets
1. Cents-off
2. In-Store Demonstrations
3. Samples
4. Coupons
5. Gifts
• Sales promotions are marketing activities that stimulate
consumer purchases and improve retailer or middlemen
effectiveness and cooperation
Examples of sales promotion include:
• Sales promotions are short-term efforts directed to the consumer
or retailer to achieve such specific objectives as consumer-
product trial or immediate purchase
6. Product Tie-Ins
7. Contests
8. Sweepstakes
9. Sponsorship of Special Events,
10. Point-Of-Purchase Displays
International Public Relations
• The job consists of not only encouraging
the press to cover positive stories about
companies, but also of managing
unfavorable rumors, stories, and events
• Creating good relationships with the
popular press and other media to help
companies communicate messages to
their publics—customers, the general
public, and governmental regulators—is
the role of public relations (PR)
Advertising
Advertising has been used for centuries.
U.S. advertisers spend more than $237 billion
each year; worldwide spending approaches $470
billion.
Advertising is used by:
Business firms
Nonprofit organizations
Professionals
Social agencies
Government

Advertising

Advertising plays a pivotal
role in world commerce and
in the way we experience
and live our lives. It is part
of our language and our
culture…It is both a
complex communication
process and a dynamic
business process.

O’Guinn et al (2003) Advertising and
Integrated Brand Promotion, Ohio: South-
Western, p8

Advertising
Global Advertising
7 Steps in International Advertising
• 1. Perform marketing research
• 2. Specify the goals of the communication
• 3. Develop the most effective message
• 4. Select effective media
• 5. Compose and secure a budget
• 6. Execute the campaign
• 7. Evaluate the campaign relative to the goals
specified
Advertising
Advertising Strategies and Goals
Standardization with local customization
• Where standardization can occur, companies gain in economies
of scale, but must alter the advertising appeal to each unique
culture
Product Attribute and Benefit Segmentation
• Different cultures may seek the same benefit from the primary
function of the product (a car’s primary function is to drive from
one point to another); but differences occur when some features
are valued over others across cultures (types of car stereos,
safety equipment, after sale services, etc) .
Regional Segmentation
• Where it is possible, advertising will continue to be segmented
and standardized by region (European countries, or Latin
American countries).
Selecting Advertising Media
Reach
Percentage of people exposed to ad
Frequency
Number of times a person is exposed to ad
Media Impact
The qualitative value of a message exposure
through a given medium

Advertising
The International Communication Process
(7 steps):
1. An information source
2. Encoding
• The message from the source converted into
effective symbolism for transmission to a receiver.
3. A message channel
• The sales force and/or advertising media
4. Decoding
• The interpretation by the receiver of the symbolism
transmitted from the information source.
Advertising
The 7 Steps in Creating Message (the
international communication process)
5. Receiver
• Consumer action taken by receivers
6. Feedback
• Effectiveness of message
7. Noise
• Uncontrollable and unpredictable influences

A model of communication
Source encodes
decodes
Receiver
Message
field of
experience
field of
experience
feedback
noise
Source: adapted from W. Schramm (1971) “How communication works”, in
Schramm & Roberts (eds), The process and elements of mass communication
Constraints on Advertising
1. Legal Constraints
• Varies from one country to another where
limits can be on:
–Types of products/services that can or
can not be advertised (cigarettes,
alcohol..)
–Amount of time given to advertise
products/services on TV, radio etc.
–Who the advertising can be targeted to
(children, etc)


Constraints on Advertising
2. Linguistic Limitations
3. Cultural Diversity
4. Media Limitations
5. Production and Cost Limitations

Examples
– Crossing Borders 16.3 pg. 489; 16.4 pg 491

Constraints to Advertising Campaigns
• There are many problems in communicating a firm’s product offerings to its
various target markets around the world. Some of these include:
1. Cultural Diversity: Ad campaigns and product
brand names being communicated may mean
different things to different cultures

2. Media Limitations: in some underdeveloped
countries, there is a shortage of advertising media
such as radio stations, print media (newspapers,
magazines), and television stations, cable TV, and
satellite TV

3. Production and Cost Limitations: In some markets
costs are prohibitive to advertise on conventional
advertising media; other countries may have low
quality paper to print advertising
Constraints to Advertising Campaigns
4. Coverage: In large, less developed countries
advertising media such as television may not be
geographically dispersed

5. Lack of Market Data: This makes it difficult
to reach specific target markets

6. Direct Mail: Even if direct mail is available, it
may not work due to high illiteracy rates in
some countries

7. The Internet: Though advertising via the
internet is fast increasing, the WWW is not
widely available in many countries where
computers are considered expensive
Media Planning and Analysis
When advertising internationally, the
company must consider the following:
1. Availability
• What media is available
2. Cost
3. Coverage
4. Lack of market data
• Reliable statistical information or research on
target audiences…
Media Planning and Analysis
Different types of medias used:
Newspapers
Magazines
Radio and television
Satellite and cable
Direct Mail
The internet
Other (billboards, cinemas, trucks, ships, etc)
Advertising Agencies
Important questions
Should global, local or combination of both
types of advertising agencies be used?
• Exhibit 16.5 pg. 507 “World’s Top Advertising
Agency Organizations”
How much (legal) control should be placed
on advertisers?