International Marketing

Instructor: Farid Kazimov

Email: farid.kazimov2121@gmail.com
 Modern Marketing

The question is not whether to communicate but rather what to say, how and when to
say it, to whom and how often. According to the classic marketing mix (product,
price, promotion and place), communications are achieved through the channels of the
promotional mix. The main traditional one-way or non-personal channels are
advertising, sales promotion, events and experiences and public relations (including
press relations).

Futurama advertisements in dreams:

https://www.youtube.com/watch?v=hlCrcMeVZHs&t=1s
The shift from seller initiative to
buyer initiative
Elements of the international
communication process
Elements of the international
communication process
Communication Tools
International advertising decisions
 Objective Setting

Advertising objective is a specific communication task to be accomplished with a

specific target audience during a specific period of time.

Major advertising objectives (and means):

• increasing sales from existing customers by encouraging them to increase the
frequency of their purchases; maintaining brand loyalty via a strategy that reminds
customers of the key advantages of the product; stimulating impulse purchases;
• obtaining new customers by increasing consumer awareness of the firm’s products
and improving the firm’s corporate image among a new target customer group.
Response Hierarchy Models
 Developing Effective Communications

Marketers can set communications objectives at any level of the hierarchy-of-effects

model. In most cases, companies intend to:
• create awareness;
• impart knowledge – inform existing and potential customers about the unique
attributes of their market offerings;
• shape attitudes and engage and interact with existing and potential customers;
• encourage existing and potential customers to purchase;
• build a strong brand awareness and secure a strong brand recall rating.
 Budget Decisions

Affordable approach is setting the promotion budget at the level management thinks
the company can afford.
The most popular of these methods is the percentage of sales method, whereby the
firm automatically allocates a fixed percentage of sales to the advertising budget.

Advantages:

• For firms selling in many countries, this simple method appears to guarantee
equality among the markets. Each market seems to get the advertising it deserves.
• It is easy to justify in budget meetings.
• It guarantees that the firm only spends on advertising as much as it can afford. The
method prevents wastage.
 Budget Decisions

Disadvantages:

• It uses historical performance rather than future performance.

• It ignores the possibility that extra spending on advertising may be necessary when
sales are declining
• It does not take into account variations in the firm’s marketing goals across
countries.
• The percentage of sales method encourages local management to maximise sales by
using the easiest and most flexible marketing tool: price
• The method’s convenience and simplicity encourage management not to bother
investigating the relationships between advertising and sales or analysing critically the
overall effectiveness of advertising campaigns.
• The method cannot be used to launch new products or enter new markets.
 Budget Decisions

The competitive parity approach involves estimating and duplicating the amounts
spent on advertising by major rivals.

Objective and task approach is developing the promotion budget by defining

specific objectives, determining the tasks that must be performed to achieve these
objectives, and estimating the costs of performing these tasks. The sum of these costs
is the proposed promotion budget.
 Message Decisions (creative strategy)

Unique selling proposition (USP) is a unique characteristic of a product or brand

identified by the marketer as the one on which to base a promotional campaign. It is
often used in a product-differentiation approach to promotion.

Media decisions:

• Television
• Radio
• Newspapers
• Magazines - Newsweek, Time and Business Week and etc.
• Cinema
• Outdoor advertising - posters/billboards, shop signs and transit advertising.
 Media Decisions

Media selection can be based on the following criteria:

• Reach: total number of people in a target market exposed to at least one ad in a

given time period (‘opportunity to see’, or OTS);
• Frequency: average number of times within a given time period that each potential
customer is exposed to the same ad;
• Impact: depends on compatibility between the medium used and the message.
 Agency Selection

Advertising agency is a marketing services firm that assists companies in planning, preparing,
implementing and evaluating all or portions of their advertising programmes. Ad agency structure:

• Expert copywriters,
• Translators,
• Photographers,
• Film-makers,
• Package designers,
• Media planners.

The criteria relevant to the choice of a national or an international agency:

1. Policy of the company. Has the company got any realistic plans for a more standardized
advertising approach?

2. Nature of the advertising to be undertaken. Corporate image advertising vs niche marketing.

3. Type of product. Global product vs local one
Agency Selection
 Public Relations

Public relations (PR) seeks to enhance corporate image building and influence
favourable media treatment. PR (or publicity) is the marketing communications
function that carries out programmes which are designed to earn public understanding
and acceptance. Both internal and external communication happens.

The target groups for PR:

1. Directly connected with the organization: Employees and shareholders.

2. Suppliers: Suppliers of raw materials and components, Providers of services (e.g.
financial services, IT/digital services).
3. Customers: Existing customers, new customers.
4. Environment: General public, Government (local, regional, national), financial
markets generally.
 Other Strategies

Sponsorship

Event sponsorship (such as athletic and entertainment events) and cause-oriented

sponsorship (corporate philanthropy)

Celebrity endorsement is the use of famous spokespersons or celebrities in

marketing communications.

Product placement is a form of advertisement, where branded products or services

are placed in a context usually without ads, such as films, the storyline of television
shows or news programmes.

https://www.youtube.com/watch?v=iUjlZeL1Dhs
Sales Promotion
 Sales Promotion

Sales promotion is a short-term effort directed primarily to the consumer and/or

retailer, in order to achieve specific objectives such as:

• consumer product trial and/or immediate purchase;

• consumer introduction to the shop;
• encouraging retailers to use point-of-sale displays for the product;
• encouraging shops to stock the product.

Point-of-sale displays include all signage – posters, signs, shelf cards and a variety of
other visual materials – that are designed to influence buying decisions at the point of
sale.

Cross-selling is selling an additional product or service to an existing customer

 Sales Promotion

Types of sales promotion:

• Price discounts such as cash-back deals.

• Catalogues/brochures. The potential buyer is supplied with all the necessary
information, from prices, sizes, colours and quantities to packing, shipping time and
acceptable forms of payment.
• Coupons.
• Samples.
• Gifts.
 Direct Marketing and Personal Selling

Direct marketing covers direct mail (marketing database), telephone selling and
marketing via the internet. Computerized database marketing (e.g. direct mail) is used
in a customer-screening process to identify possible customers, who will then be
‘taken over’ by salespersons. Advertising is a one-way communication process that
has relatively more ‘noise’, whereas personal selling is a two-way communication
process with immediate feedback and relatively less ‘noise’. It is used mainly to sell to
distribution channel members and in business-to-business (B2B) markets.
 Types of International Sales Force

1. Expatriate salespersons. These are viewed favourably because they are already
familiar with the firm’s products, technology, history and policies. Very expensive
items often require selling directly from the head office, which usually involves
expatriates.
2. Host-country nationals. These are personnel who are based in their home
country. As native personnel they have extensive market and cultural knowledge,
language skills and familiarity with local business traditions.
3. Third-country nationals. These are employees transferred from one country to
another. They tend to be born in one country, employed by a firm based in
another country and working in a third country.
 International Advertising Strategies in
Practice

The global/local marketing challenge is separated into two parts: the creative
challenge and the implementation challenge.
The creative challenge: creating a global campaign concept that meets the global
brand aims and is adaptable for local market needs.
Obstacles for the creative challenge:

• Images.
• Humour.
• Animals.
• Metaphors.
• Colours.
• Traditions.
 International Advertising Strategies in
Practice

The implementation challenge: planning and managing the project from inception,
through the key localization stages all the way to launch.

Elements should be taken into account for the implementation challenge:

• Roles and accountabilities. Ensure that the right people are on the team, and that
everyone knows what they are doing.
• Defined budgets. The global marketing manager should ensure that the marketing
teams are aware of the budgets.
• A global creative brief. Good briefing will ensure that global and local marketing
assets are generated according to the company’s vision and mission.
• Clear project management and communication. In under to improve project
management and communication for the campaign, assign an implementation
captain.
Implications of the internet for
communication decisions
 Social Media Marketing

Word-of-mouth (WoM) is the sharing of information about a product, promotion,

etc. between a consumer and a friend, colleague or other acquaintance.

Social media are a group of internet-based applications that allow the creation and
exchange of user-generated content.
Social media are internet-based technologies that facilitate online conversations and
encompass a wide range of online, word-of-mouth forums including social
networking websites, blogs, company sponsored discussion boards and chat rooms,
consumer-to-consumer (C2C) e-mail, consumer product or service ratings websites
and forums, internet discussion boards and forums, and sites containing digital audio,
images, movies or photographs, to name a few.
 Social Media Marketing

Social networking as a communication tool has two interrelated promotional roles:

1. Social networking should be consistent with the use of traditional IMC tools. That
is, companies should use social media to talk to their customers through such
platforms as blogs, as well as Facebook and Twitter groups. These media may
either be company-sponsored or sponsored by other individuals or organisations.
2. Social networking is enabling customers to talk to one another. This is an
extension of traditional word-of-mouth communication. While companies cannot
directly control such consumer-to-consumer (C2C) messages.
From ‘Bowling’ to ‘Pinball’
 Social Media Marketing

The four different communication styles:

1. Traditional one-way advertising: (mass-media advertising such as television

advertising, newspaper/magazine advertising, etc.), which represents the ‘Bowling’
approach;
2. Customer-driven interaction: represents a higher degree of interaction between
the company (key account managers) and its different key customers.
3. Viral marketing: representing the version 1.0 of social media marketing;
4. Social media marketing: representing the version 2.0 of social media marketing.
The extended interactive market
communication model
 The 6C model of SMM

1. Company and content – Push medium, pull viewers;

2. Control - giving up the digital rights;
3. Community and Influencer marketing - learning about ‘customer behaviour’ in
the market by following online community discussions.
4. Customers and online conversation
The 6C model (company, content, control,
community, consumers, conversations)
 SMM Plan

The plan should comprise an audit of where the customers are today, goals for where
the company wants them to be in the near future, and all the social media tools that the
company wants to use to get there. The plan will guide the company’s actions, but it
will also be a measure by which to determine whether the company is succeeding or
failing.

SMART objectives

• Specific – target a specific area for improvement.

• Measurable – quantify or at least suggest an indicator of
progress.
• Achievable – agreed and aligned with corporate goals.
• Realistic – state what results can realistically be achieved,
given available resources.
• Time-related – specify when the result(s) can be achieved.
Social media audit template (current situation)
 Create a content and time plan for the
company’s SM efforts

The company can establish a content matrix that defines what share of the social media
platform is allocated to different types of posts. For example:

1. 30 per cent of content will try to get new potential visitors to actually visit the company’s
social media platform;
2. 30 per cent of content will support enterprise profit objectives in general (lead generation,
selling, cross-selling, etc.);
3. 20 per cent of content will try to drive back visitors to your blog (content supporting loyal
visitors);
4. 20 per cent of content will be about the company’s HR, CSR and culture.

A company could allocate its resources by following this rule:

5. One-third of the company’s social content promotes its business, converts visitors, and
generates profit;
6. One-third of the social content should share ideas and stories from thought leaders in the
industry or similar businesses;
7. One-third of the social content should be personal interactions with the company’s audience
(e.g. blogging).