THE INTERNATIONAL ENVIRONMENT FOR PROMOTION and IMC

7.1

Cultural Communications

Culture - Total Way of a People, the Social Legacy the Individual Acquires from His or Her Group Culture is Typically Invisible to Those Who are Immersed In It, Making Communication Across Cultures Difficult

7.2

Importance of International Communication

Complex Social, Political & Economic Changes Affect International Communications Environment. International Developments Relevant to the Rise in International Commercial Communications:

Development of Trading Blocs - May be Prelude to a Rise in Nationalism Loosening of Political and Economic Constraints
7.3

Importance and Rise of International Communication (cont)

Liberalization of the Flow of Labor and Increase in movements of Peoples Across Borders Growing Size of Ethnic Groups From Elevated Birth Rates Rise of Cultural Borders and Barriers even as Economic Barriers Begin to Fall
7.4

Overcoming Cultural Barriers in International Promotion

Barriers to Creating Successful International Promotions

Ethnocentrism

Self-Reference Criterion

7.5

How Might This American Ad Be Viewed as Ethnocentric

7.6

Overcoming Cultural Barriers in International Promotion (cont)

Cross-Cultural Research Helps Overcome Barriers Secondary Data - Data Gathered by Someone Else for Some Other Purpose Primary Data - Specific Data Collection Unique to a Promotional Situation Economic Conditions Demographics Characteristics Values Custom & Ritual Product Use & Preference
7.7

Challenges in International Advertising

Creative Challenge
Media Challenge
Media
Media

Availability & Coverage

Costs & Pricing

Regulatory Challenge
7.8

International Markets Prefer Different Creative Executions

7.9

Challenges in International Sales Promotion, Direct Marketing and e-Commerce

CHARACTERISTICES OF THE PRODUCT Product Prevalence & Use As Competitive Environment Becomes More Complex, Advertising Designed to Differentiate Brands will Become More Predominant Products Moving into Growth Stage will Need to be Differentiated

7.10

Challenges in International Sales Promotion, Direct Marketing and e-Commerce (cont)

LEVEL OF ECONOMIC DEVELOPMENT

All Forms of Production & Direct Marketing are Applicable in Highly Industrialized Markets In Less Developed Countries - Lack of Wide Range of Consumer Goods & Low Income Make Promotion a Non Issue Few Competitors Serve these Markets Low Literacy Make Communication Difficult w/Print Media Without TV, Radio & Newspaper, Direct marketing is Undermined Unsophisticated Mail Systems

7.11

Challenges in International Sales Promotion, Direct Marketing and e-Commerce (cont)

LEVEL OF ECONOMIC DEVELOPMENT (cont) Newly Industrialized Markets Better Environment for Promotional Tools Must be Managed Carefully Consumer Income Rises More Consumer Goods are Introduced and Succeed As Media Proliferate, Sales Promotions and Direct Marketing can be Introduced Based on Market-byMarket Assessment

7.12

Challenges in International Sales Promotion, Direct Marketing and e-Commerce (cont)

STRUCTURE OF TRADE CHANNELS

Highly Developed Distribution & Retailing Systems Trade Channel Members Demand Support or Carry Marketers Brand

Trade Allowances, Incentives, Point-of-Purchase Displays & Sampling

Must Have the Means to Handle Coupon Redemption or Premium Distributions Less Developed Trade Channels May Not be Able to Use Traditional Promotional Techniques Fragmentation of Trade Channels Retailers - No Way of Handling Coupons Some Countries So Small May Not be able to Handle Point-of-Purchase Trade Show

7.13

Challenges in International Sales Promotion, Direct Marketing and e-Commerce (cont)

REGULATIONS

Regulation of Promotion, Direct Marketing, and e-Commerce Varies Widely Market-to-Market Most Sales Promotion Tools are Legal Across Europe Sweepstakes are Either Heavily Banned or Regulated in All European Markets In Japan Value of Premium Offered with a Product is Limited to 10% of the Value of the Original Price
7.14

Promotions in International Markets Must be Researched for Regulation and Legality

7.15

Challenges in International Public Relations

COMPANIES HAVE LESS CONTROL OVER GLOBAL
PUBLICITY RELATIVE TO DOMESTIC SITUATIONS, AND NO CORPORATIONS ARE POWERFUL ENOUGH TO CONTROL A HOST COUNTRYS MEDIA
7.16

Promotion Agencies Around the World

GLOBAL AGENCY
Will Know Marketers Products & Current Promotion Program Agency may then Either Adapt Domestic Campaigns or Launch New Ones Disadvantage is their Distance from Local Culture. Exporting Meaning is Never Easy

INTERNATIONAL AFFILIATE

Set Up as a joint Venture w/Local Agencies Join Networks or Take Minority Ownership Benefits in this Arrangement Knowledgeable about Culture/Local Market Have Well-Established Contacts One Problem-Less Standardization of Creative Effort
7.17

LOCAL AGENCY

Standardized vs. Promotional Customized Campaigns

STANDARDIZED CAMPAIGNS USE SAME APPEAL & CREATIVE EXECUTION ACROSS ALLINTERNATIONAL MARKETS
CUSTOMIZED CAMPAIGNS INVOLVE PREPARING CREATIVE EXECUTIONS FOR EACH MARKET A FIRM HAS CREATED A BRAND IS WELL SUITED FOR A STANDARDIZED CAMPAIGN WHEN: Communication Primarily Uses Visual Appeal Communication is Culture-less Brands that are Standardized Products have Global Reputation
7.18

Certain Product Lend Themselves to Standardized Campaigns

7.19

Standardized vs. Promotional Customized Campaigns

(cont)

ENVIRONMENT FOR STANDARDIZED PROMOTION IS MORE FAVORABLE DUE TO:

Expansion of Global Communications Media

Emergence of Global Teenager

Trend Towards Universal Demographic & Lifestyle Trends

Americanization of Consumption Values

7.20

Challenges in Developing & Managing A Global Sales Force

DEVELOPING A GLOBAL SALES FORCE CAN BE ACHIEVED WITH:

Expatriate Personnel

Local Nationals
Third Country Nationals

7.22

Challenges in Developing & Managing A Global Sales Force

MANAGING THE GLOBAL SALES FORCE

Training Expatriate Foreign National Personnel Training for Foreign Personnel Motivation & Compensation Companies Must Consider Culture Guidelines Include Examining the Way Firms are Compensating People High Tax-Rate Countries Sales Personnel Push for Packages instead of Direct Taxable Income E.g., Cost of Living Allowances, Private School Tuition, etc.
7.23