Chapter 12- Marketing Communication

1. Chapter 12- Marketing Communication

2. Economic Social Demographic Marketing Mix Product Price Promotion Place Marketer Target Market Political Cultural Feedback Technological Legal

3. Marketing Communication Process • Effective communication requires 3 elements connected by a message channel: • The sender • The message • The receiver • Encoding- converting message into symbolic form properly understood by the receiver • Decoding- dependent on receiver’s ability to transform message symbols back into thought • Noise- Extraneous stimuli that interfere with transfer of message through message channel

4. Marketing Communication Process Message Channel Sender Message Receiver Noise Feedback Communication Outcome

5. Five Stages in International Negotiation Process Offer- assess each other’s needs and degree of commitment Informal Meetings- discuss the terms and get acquainted, establish trust, build relationship Strategy formulation- identify factors affecting the deal, preparation for give-and-take, attend to cultural values Negotiations- depends on business traditions/culture, competitive vs. collaborative approach Implementation- ensure a win-win for both parties, think long term

6. How to Negotiate in Other Countries-10 points (p. 389) • Team Assistance • Traditions and Customs • Language Capability • Determination of authority limits • Patience • Negotiation ethics • Silence • Persistence • Holistic view • The Meaning of Agreements

7. Marketing Communication Strategy Assess Marketing Communication Opportunities Analyze Marketing Communications Resources Set Marketing Communications Objectives Develop/Evaluate Alternative Strategies Assign Specific Marketing Communications Tasks Step One Step Two Step Three Step Four Step Five

8. Promotional Mix Advertising- Any form of non personal presentation of ideas, goods, or services by an identified sponsor, with predominant use made of mass communication. Personal Selling- The process of assisting and persuading a prospect to buy a good or service or to act on an idea through use of person-to-person communication with intermediaries Publicity- Any form of nonpaid, commercially significant news or editorial comment about ideas, products, or institutions Sales Promotions- Direct inducements that provide extra product value or incentive to the sales force, intermediaries or ultimate consumers Sponsorship- the practice of promoting the interests of the company by associating it with a specific event or cause.

9. Push or Pull? • The choice of tools leads to either a Push or Pull strategy • Push- focus on the use of personal selling. • Pull- depends on mass communications tools, mainly advertising. • Integrated marketing communications (IMC)

10. Communication Tools • In addition to what we have discussed..... the communication tools used by exporters to communicate with the foreign markets are as follows: • Business and trade journals • Directories • Direct advertising • The internet • Trade fairs and missions • Personal selling

11. Chapter 18-Global Promotional Strategies

12. Planning Promotional Campaigns-Steps Involved • Determine the target audience • Determine specific campaign objectives • Determine the budget • Determine media strategy • Determine the message • Determine the campaign approach • Determine campaign effectiveness

13. Target Audience • Global marketers face multiple audiences beyond customers • Cause-related marketing: the company or one of its brands is linked with a cause such as environmental protection. • Corporate image advertising- an umbrella campaign may help either boost the image of a lesser-known product line or make the company be perceived more positively.

14. Campaign Objectives • Essential to the planning of an international promotional campaign is the establishment of clearly defined, measurable objectives • Typical goals: • Increase awareness • Enhance image • Improve market share

15. The Budget • The promotional budget links established objectives with media, messages, and control decisions • Available funds may dictate the basis from which the objective-task method can start • Take a market-by-market approach • It establishes a control mechanism

16. Media Strategy • The major factors determining choice of media vehicles: • Media availability- government restrictions are there for media • Product influences- different restrictions for different kinds of products, e.g., tobacco, alcohol, pharmaceutical products • Audience characteristics- demographics, media habits, advertising exposure • Global media- Time, Economist, MTV, Internet • Promotional message- targeted message, S-A issues

17. Promotional Message • Determine the customer’s motivations depending on the following: • Level of diffusion of product • What customers look for in a product • Product’s positioning • Be flexible in marketing globally, may consider a global brand • Use of an advertising agency • Standardization vs. adaptation in message- Parker pen

18. The Campaign Approach • What type of outside services to use? • Advertising agencies, local vs. global , e.g., McCann-Erickson- 130 countries • Agency-Client relationship • Using local agencies • How to establish decision-making authority for promotional efforts? • Centralization vs. decentralization • Reasons for Centralization- economies of scale, synergy, consistency • Reasons for Decentralization- proximity to market, flexibility, faster response time, cultural sensitivity

19. Measurement of Advertising Effectiveness • Commonly used measurements regardless of medium used: • Sales • Awareness • Recall • Intention to buy • Profitability • Coupon return