Lecture International marketing (14/e) - Chapter 16

International Marketi
ng
14th Edition
P h i l i p R. C a t e o r a
M a r y C. G i l l y
John L. Graham

Integrated Marketing
Communications
and International
Advertising
Chapter 16
McGraw­Hill/Irwin
International Marketing 14/e

Copyright © 2009 by The McGraw­Hill Companies, Inc. All rights reserved.


Discussions
• List and explain all factors affect the choice of
IMC tools (advertising, sales promotion, PR,
events, personal selling…)
• List and explain the criteria to evaluate the IMC
program

16-2


Factors influencing choice of IMC
• Product Life Cycle
• Brand Life Cycle

• Diffusion of Innovation
• Customer knowledge and perception
• Type of Customers (B2B vs. B2C; demographic)
• Type of Products (high involvement vs low
involvement, shopping, necessity…)
• The availability of tools
16-3


What Should You Learn?
• Local market characteristics that affect the
advertising and promotion of products
• The strengths and weaknesses of sales
promotion and public relations in global
marketing
• When global advertising is most effective; when
modified advertising is necessary

16-4


What Should You Learn?
• The effects of a single European market on
advertising
• The effect of limited media, excessive media,
paper and equipment shortages, and
government regulations on advertising and
promotion budgets
• The communication process and advertising
misfires

16-5


Global Perspective
Barbie Versus Mulan
• Integrated marketing communications (IMC)
–
–
–
–
–
–

Advertising
Sales promotions
Trade shows
Personal selling
Direct selling
Public relations

• Objective: successful sale of a product or service
• Availability of appropriate communication
channels can determine entry decisions
16-6


IMC STRATEGY
REQUIREMENTS
1. DETERMINE HOW WE WILL

COMMUNICATE WITH OUR CUSTOMER
2. DETERMINE HOW OUR CUSTOMER
WANTS TO COMMUNICATE WITH US
3. MEASURE COMMUNICATION AND
FEEDBACK AND MAKE CHANGES WHERE
NECESSARY
10-7


WHAT IS IMC?
1. IT PROVIDES TWO­WAY DIALOGUE 
BETWEEN SUPPLIER­CUSTOMER
2. IT PROVIDES FOR A UNIFORM MESSAGE 
DELIVERED THROUGH ALL COMPANY 
MEDIA
(ADVERTISING, SELLING EFFORT, 
DIRECT MAIL, TRADE SHOWS)
3. IT FOCUSES ON MEETING THE 
INFORMATION NEEDS OF THE BUYER


THE CONTINUOUS
IMC PLANNING PROCESS
Set Goals
Make Adjustments

Determine
Communication
Elements

Measure Results

Create Message
Place Messages
in Media


THE HIERARCHY OF EFFECTS MODEL

Action
Desire
Interest
Awareness


COMMUNICATION TOOL KIT
1.
2.
3.
4.
5.
6.
7.
8.
9.

ADVERTISING
SALES PROMOTION
DIRECT MARKETING
PUBLIC RELATIONS

INTERNET
TRADE SHOWS
TELEMARKETING
PERSONAL SELLING
MARKETING RESEARCH
10-11


MEASURING IMC PERFORMANCE
THE MEASURE:

DETERMINED BY:

RECALL

SURVEYS/FOCUS GROUPS

INQUIRES

CARD/COUPON RESPONSE, 800­
NUMBER RESPONSE

POSITION

PRE­AND POST­ADVERTISING 
ATTITUDE SURVEYS

REACH

ESTIMATE YOUR READERS 

BASED ON TOTAL 
CIRCULATION/ READERSHIP 
AUDITS
DIVIDE COST OF AD BY 
READERSHIP EXPRESSED IN 
1000s

CPM (cost per 1000)


WHERE MARKETING COMMUNICATION
DOLLARS ARE SPENT
Online
Marketing

Direct Marketing
Advertising

Market
Research
Premiums &
 Incentives
Other

Trade
Shows

7.7%
5.8 7.7%
5.8%%

24.8%
4.3%
24.8%
44.2.3%
%
4.2%
4.4%
4.4%
16.9%
16.9%

3.1%
3.1%
3.1%

             10.8%
             10.8%

18.0%
18.0%

Public
Relations
Sales Force
Management

Sales Promotion
10-13

New Trends
• Search Engines: Google
• Social Medias: Facebook

16-14


THE BUDGET BREAKDOWN METHOD
(Allocates Total Available Budget)
TOTAL AVAILABLE BUDGET FUNDS
Allocated to:

Trade Show

Sales Force
Mail

Magazines
Radio

Internet

Newspaper
10-15


THE BUDGET BUILDUP
(Creates Total Budget)
How Much is Needed for Objective
Trade Shows

Mail

Radio

Newspaper

Magazines

Sales Force

Internet

Creates Total Budget
Exhibit 10­10
10-16


In most Asian 
countries, 
sex sells, especially 
sex sells
for beer.
This picture ­ a 
convenience store 
in Malaysia selling 
beer.


Alternative Advertising Options
• PLACE ADVERTISING:

• Out-of-home advertising - different alternative
advertising forms
• Billboards:
• Colorful, digitally produced graphics,
backlighting, sounds, movement & unusual even
3D images


3-D bus stop ad announcing ticket sales for the world’s first Formula1
night race in Singapore.


HSBC advertises on Kuala Lumpur’s monorail to show that the world’s
local bank can bring people places—a tie-in to the monorail that goes
through the heart of the city.


Alternative Advertising Options
• Outdoor advertising popular in Asia WHY?
• Traffic jams - cities like Bangkok - massive
captive audience
• Rural areas- TV & newspaper ad less available billboards - mass audience
• TV ad rates went up - outdoor ad more cost
effective


Alternative Advertising Options
Public Spaces:
• Put TV & print ads in public places - movies,
airlines, restrooms, road etc

• Transit ads: reach working women
• Another innovative advertising - automated teller
machine (ATM)


Alternative Advertising Options
PRODUCT PLACEMENT:
• From movies to all types of TV shows
• Combined with special promotions to publicize
entertainment tie-ins
• Placement - no cost – supply their products to
movie company
• In China, some programs are produced &
branded by advertisers


Product Placement:
–

Marketers are finding other inventive ways to
advertise during actual television broadcasts.
►
►

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–

Virtual logos networks add digitally to the playing field.
Ads also appear in best-selling paperback books and movie videotapes.

Advertorials are print ads that offer editorial content
that reflects favorably on the brand and is difficult to
distinguish from newspaper or magazine content.
Other firms are exploring branded entertainment
such as online mini-films.

18- 2418- 24


Point-of-Purchase
• There are many ways to communicate
with consumers at the point-ofpurchase (POP)
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In-store advertising includes ads:
On shopping carts
Cart straps
Aisles and shelves
In-store demonstrations
Live sampling
Instant coupon machines
18- 2518- 25