Slide 1Slide 2Slide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Slide 26Slide 27Slide 28Slide 29Slide 30Slide 31Slide 32Slide 33Slide 34Integrated Marketing Communications and International AdvertisingChapter 16McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.PowerPoint presentation prepared by:Professor Rajiv MehtaAssociate Professor of MarketingNew Jersey Institute of TechnologyNewark, N.J.Chapter Learning Objectives1. Local market characteristics that affect the advertising and promotion of products1. Local market characteristics that affect the advertising and promotion of products2. The strengths and weaknesses of sales promotion and public relations in global marketing2. The strengths and weaknesses of sales promotion and public relations in global marketing3. When global advertising is most effective; when modified advertising is necessary3. When global advertising is most effective; when modified advertising is necessaryChapter Learning Objectives4. The effects of a single European market on advertising4. The effects of a single European market on advertising5. The communication process and advertising misfires5. The communication process and advertising misfires6. The effect of limited media, excessive media, paper and equipment shortages, and government regulations on advertising and promotion budgets6. The effect of limited media, excessive media, paper and equipment shortages, and government regulations on advertising and promotion budgetsIntroduction•Once a market offering is developed to meet target market needs, intended customers must be informed of the offering•Once a market offering is developed to meet target market needs, intended customers must be informed of the offeringIntegrated marketing communications (IMC) comprises: • advertising• sales promotions• personal selling• direct selling, and • public relations Integrated marketing communications (IMC) comprises: • advertising• sales promotions• personal selling• direct selling, and • public relations •All these mutually reinforcing elements of the promotional mix have as their common objective the successful sale of a product or service•All these mutually reinforcing elements of the promotional mix have as their common objective the successful sale of a product or serviceSales Promotions in International Markets1. Cents-off2. In-Store Demonstrations3. Samples4. Coupons5. Gifts•Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation•Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperationExamples of sales promotion include:Examples of sales promotion include:•Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase•Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase6. Product Tie-Ins7. Contests8. Sweepstakes 9. Sponsorship of Special Events,10. Point-Of-Purchase DisplaysInternational Public Relations•The job consists of not only encouraging the press to cover positive stories about companies, but also of managing unfavorable rumors, stories, and events•The job consists of not only encouraging the press to cover positive stories about companies, but also of managing unfavorable rumors, stories, and events•Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of public relations (PR)•Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of public relations (PR)International Advertising•Decisions involving advertising are those most often affected by cultural differences among country markets •Consumers respond in terms of their culture, its style, feelings, value systems, attitudes, beliefs, and perceptions •Advertising’s function is to interpret the qualities of products in terms of consumer needs, wants, desires, and aspirations, the emotional appeals, symbols, and persuasive approaches•Reconciling an international advertising campaign with the cultural uniqueness of markets is the challenge confronting the international or global marketerInternational Advertising (Contd.)1. Perform marketing research 2. Specify the goals of the communication 3. Develop the most effective message(s) for the market segments selected 4. Select effective media 5. Compose and secure a budget 6. Execute the campaign, and 7. Evaluate the campaign relative to the goals specifiedThe basic framework and concepts of international advertising includethe following seven steps:The basic framework and concepts of international advertising includethe following seven steps:Global Advertising and the Communications Process1. An information source. An international marketing executive with a product message to communicate2. Encoding. The message from the source converted into effective symbolism for transmission to a receiver3. A message channel. The sales force and/or advertising media that convey the encoded message to the intended receiver4. Decoding. The interpretation by the receiver of the symbolism transmitted from the information source5. Receiver. Consumer action by those who receive the message and are the target for the thought transmitted6. Feedback. Information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process7. Noise. Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process and affect any or all of the other six stepsThe international communications process consists of the following seven steps:The international communications process consists of the following seven steps:Legal Constraints1. Advertising campaigns must comply with legal