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INTERNATIONAL ENVIORNMENT

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					    Chapter 7:
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 (con’t)


     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 (con’t)
    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   Availability & Coverage
       Media   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 (con’t)
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 (con’t)

   LEVEL OF ECONOMIC DEVELOPMENT (con’t)
    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-by-
        Market Assessment


                                7.12
Challenges in International Sales Promotion,
Direct Marketing and e-Commerce (con’t)
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 (con’t)
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 COUNTRY’S

MEDIA
                    7.16
Promotion Agencies Around the World
GLOBAL AGENCY
   Will Know Marketer’s 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
LOCAL AGENCY
   Knowledgeable about Culture/Local Market
   Have Well-Established Contacts
   One Problem-Less Standardization of Creative Effort
                                   7.17
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
(con’t)

 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

				
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