Chapters # 11-12

1. Chapters # 11-12 International Marketing And Export Management Group Members are: Davit Gelashvili Guga Emiridze Ani mikhailidi Kakha Samkharadze Gaga Dvali

2. Promotion and Marketing Communication Communication is a major part of international marketing activities. It’s not enough to produce and make available a product or service, it’s also necessary to provide information that buyers need to make purchasing decisions. By our definition, international/export marketing communication is cross-cultural communication that is communication between a person in one culture and a person or persons in another culture. In, addition, it’s possible that, insofar as cultural differences occur within a single nation, advertising within that nation might also be cross-cultural in varying degrees.

3. Promotion and Marketing Communication Exporter’s message sent Communication Barriers: Language differences Government regulations Media Availability Economic Differences Tastes and Attitudes Buying Process Foreign buyer’s receipt of message

4. Promotion and Marketing Communication Decisions The promotion decisions faced by export marketing management can be reduced to the following: What messages? What communications media? How much effort or money to spend? These decision areas are interrelated. Export marketing promotion takes various forms: Personal Selling: sales people are used to communicate primarily face to face with prospective customers Advertising: a nonpersonal presentation of sales messages through various mass media, paid for by the advertiser. Sales Promotion: all sales activities, which supplement and strenghten personal selling and advertising. Activities usually are noncurrent and have a relatively short-run life. Publicity: any kind of news about a company or its products that is reported by some media and isn’t paid for the company.

5. Promotion and Marketing Communication Decisions We must also keep in mind that in a broad sense, the question of what mix of promotion activities to employ is the question of whether to emphasize a “push” or a “pull” strategy”. A pull strategy is defined as preselling the product so that buyers seek it out or ask for it at the point of purchase. A push strategy is defined as working with resellers or assisting them in selling the product at the point of sale, when a push strategy is required, buyers aren’t presold and they depend on the advice or guidance of the salesperson.

6. Export marketing promotion as communication In export ans promotion, the communicator must learn about the audience, define the market as precisely as possible and study background and motivational influences before beginning preparation of a promotion strategy and campaign and people everywhere require satisfaction. Appearance : Include physical dress and grooming Chronemics: the timing of verbal exchanges Haptics: the use of touch while conversing Kinesics: the movement of part of the body to communicate Oculesics: the use (or avoidance) of eye contact Olfaction: the action of smelling Orientations: the angles at which people position themselves in relation to each other Paralinguistics: the nonverbal aspects of speech Posture: the positions of standing, sitting, lying Proxemics: the use of space in communication

7. Export marketing promotion as communication The successful communicator depends upon symbols as a means of establishing empathy with another person. Color is one type of visual symbol that possesses emotional and psychological properties. Yellow: has always been the imperial color, originally its use by the masses was prohibited and it’s still not used extensively except for religious purposes Purple: is a noble color in japan, but in some Latin American countries it represents death. Green: symbolizes nationalism in Egypt and this color should be used only with great care by the exporter to that country. Because of these differences in traditions, customs, religions and related cultural features of a society, extreme care must be excercised in selecting symbols that can convey the intended message and that don’t offend the sensibilities of the audience.

8. Promotion and Marketing Communication Communication with buyers in export markets may not be effective for a number of reasons. Of particular importance to export marketing communication are the following: • If the person isn’t interested in the message at the moment or other distractions may take the intended recipient’s attention away from the message. Such difficulties may be due to lack of knowledge about which media are appropriate to reach foreign target audiences and lack of knowledge about when to reach them 2) The message may not be understood in the way intended by the sender. Because of lack of knowledge of the factors that influence how persons from different cultures will interpret messages, it’s possible for a message to be perceived and interpreted oncorrectly. 3) The message may not induce the recipient to take the action desired by the sender. Such failure may be due to lack of knowledge on such matters as consumer motives, reference group influence or consumer’s economic cisrcumstances.

9. Alternative techniques of promotion The objective of any export marketing operation in the final analysis is only achieved through people. It’s the personal aspect of marketing that can least readily be duplicated by competition. An enterprise must rely for sucrvival and progress on the personal qualification of those who make up it’s personnel and direct it’s destinies. Personal selling is person-to-person communication between a company representative and a prospective buyer. The seller’s communication effort is focused on informing and persuading the prospect with the goal of making a sale. Sales promotion, including advertising, will arouse interest in the company or the product, but the final sale won’t be closed until the actual purchasing decision is made and personal contact is usually essential for this.

10. Alternative techniques of promotion There are also three basic functions that all sales people operating in foreign markets must perform: • The actual selling activity: the communication of product information to customers and obtaining orders. • Customer relations: The salesperson must at all times be concerned with maintaining and improving the company’s positions with customers and the general public. • Information gathering and communicating: the salesperson is often able to provide information that might be useful in planning advertising and trade promotion programs.

11. Promotion and marketing communication The foreign catalog is the ever-present, silent, accurate, all-knowing sales tool. Prices too must be clearly stated, whether FOB, FAS vessel or CIF port of destination. Create interest and attract readership: a colorful cover as much as color as possible in the body of the catalog and a well-printed and easily read text are musts. Carry the reputation of the manufacturer or exporter into world markets: often these includes a statement regarding trademarks, for the exporting manufacturer must realize that domestic product names are often unknown abroad. Make buying easy: the foreign catalog must answer all questions that a buyer might want answered about the product, terms. It should make ordering easier for the foreign dealer. Create the desire for ownership: this can be achieved through action-packed illustrations photographs of the product in use. Supply all the facts that a salesperson would present in person: These include the features of the product that make it desirable to the consumer and the salesperson’s arguments and how complaints and later questions are to be handled.

12. Promotion and marketing communication A sample can give the potential foreign buyer an idea of form and quality that can’t be attained by even the most graphic picture. The use of samples will of course vary with the product and the markets involved. The most common is direct sampling by mail, express or courier, by which means th export marketer sends a specimen of it’s products to the distant individual buyer or even the ultimate consumer. Second, and steadily growing in importance is the use of samples by residential agents, branch office managers and travelling sales people.

13. Promotion and marketing communication House organs may be a vehicle for promotional ideas, company news, the results of contests, employee commendation and so forth and may be an important device to stimulate enthuasism and effective sales performance abroad. One of the potentially best sales aids in foreign markets is the motion picture and video type. A motion picture/video tape has many advantages. This method of presentation is still telatively new and unusual in many markets, some of them major ones and buyers are often willing to take the time to watch, when they wouldn’t be willing to spend the same amount of time listening to a conventional sales talk. Slide films, through much less expensive to produce that films and videos, have definite limitations by comparison. Where cost is a major factor they do present a solution for they can be more economically produced, easily produced, easily presented and readily transported.

14. Promotion and marketing communication Trade fairs and exhibitions are another medium that is extremely important some industries and some countries. A trade fair is a concentrated exhibition of the products of many manufacturers/exporters. They are of two general types: 1) the broad, general type, well-established annual affairs and 2) the specialized type, for products in specialized groups or industries. Although selling at a trade fair require the same skills and knowledge as other selling, there are some elements of the process that are unique: 1)Gathering names: of a trade fair’s attendences make up a list of promotions. 2) A product demonstrations: not only involves a prospect with the product but also gives the exporting firm the opportunity to engage the potential buyer in a conversation about his or her needs and objectives 3) Prizes and Client promotions: are means that migh generate a tremendous amount of traffic but at the same time could made it almost impossible for the booth or the one next to it, to conduct any business.

15. Promotion and marketing communication Publicity-is any form of nonpaid significant news or editorial comment about a company, its practices, its personnel or its products is a major component of the public relations activities of a company. The marketing purpose of public relations activities is to achieve objectives that cannot be achieved by other means or as chaply by other means. For instance, if a company wants to gain recognition as one with social responsibilities in foreign locations, this objective may often be accomplished much more effectively by a carefully advertisements.

16. Promotion and marketing communication Foreign media – there is a great deal of variety in the types of newspapers and the reading habits of people from country to country. In counties where literacy is high, such as Canada, the United States and the developed countries of europe, the great najority of the population reads a daily newspaper. Posters, signs and car cards are used quite frequently in low income countries, such as those Latin America. In european countries, posters are quite popular, especially on kiosks or the sides of buildings. Large billboards, which are particularly appropriate for viewing by a motorized populace aren’t common in most countries, except for use near main traffic arteries in major metropolitan centres.

17. Promotion and marketing communication Radio also can be important advertising medium for products with a broad market. Radio tends to be used more widely in latin America than in Europe. Television is well developed as an advertising medium in an increasing number of countries. The greatest progress has been in the relatively affluent countries that permit commercial television to operate with a minimum of restriction. Direct marketing can often be useful part of a sales and advertising program. It can be useful as a direct action vehicle, to solicit orders directly, or in a supporting capacity, it can be useful to members of the export marketing channel, as a dealer or agent stimulator or aid, or to reach ultimate consumers. Direct marketing can take many forms: e-mail, letters, catalogs, technical literature, telephone, fax, internet and it can serve as a vehicle for the distribution of samples or premiums.

18. Promotion and marketing communication Online Advertising-on the world wide web is generally acknowledged to take place when an advertiser pays to place advertising content on another web-site. Companies will pay for banner advertisements for two main reasons: in the hope that the customer will click on the advertisement and then will be exposed to more detailed brabd information on the company’s website, all visitors to a page will see and advertisement, either noting it consciuosly or viewing it subconsciously. There are some several outcomes that the international marketing manager may be looking to achieve through a banner advertising campaign. Delivering content: this is the typical case where a click on a banner advertisement leads to a corporate site giving more detailed information on an offer. Enabling transaction: this is the case if a click through leads direct to a sale. Shiping attitudes: an advertisement that is consistent with a company brand can help build brand awareness.

19. Planning export promotional strategy This strategy involves: 1) setting promotional objective 2) deciding on the types of advertising and promotional messages 3) selecting media 4) determining how much time, effort and money to spend. While it may sound fine ti support the marketing of a product around the world, it’s much better to try to accomplish specific objectives such as these: • to convince buyers of the durability of a product • to illustrate the effectiveness of the product in satisfying a particular want • To create an image of the company as a dependable supplier.

20. Different aspects of international advertising There are subject to standardizing or adapting, Ryans and Ratz identified the following components: • Target markets • Product positioning • Campaign objectives, campaign themes • Media objectives • Basic media mix, media schedules • Creative execution-visual and copy

21. Promotion and marketing communication The factors that will influence the appropriateness of standardized advertising for various export markets and market segments include the following: The type of product: there are certain universal selling points for some products- for example razor blades, electric irons, automobile tires, ballpoint pens- thar are sold primarily on the basis of objective physical characteristics. The homogeneity or heterogeneity of markets: when aggegate characteristics such as income, education and occupation are alike, individual consumer characteristics such as needs, attitudes and customs may also be alike, thus suggesting that the advertiser use the same selling points. The characteristics and availability of media: for example, if specific media are available in one country but not in another, certain messages and materials may not be usable. The types of advertising agency service available in each market segment: for exmaple, if in some markets only poor service is available, a firm may be forced to rely on centralized control of advertising. Government tariffs on artwork or printed matter, which might offset a cost advantage of centralization.

22. Promotion and marketing communication The original selection of foreign media: • They know the market better and which media will influence it effectively • They know the true costs, free structures available to local advertisers and local taxes that apply • They know at once whether and advertisement is running at the right time and place an can make necessary corrections without costly delay • They can get an advertisement into media with limited time or space, which can be extremely important. In the case of television, time is severely restricted in some countries.