Mkt 4134 International Marketing Fourth Year First Semester

MKT 4134 International Marketing Fourth Year First Semester

Unit 02. Global Marketing Mix • •

International product policy Pricing credit terms of business • Distributional decisions • Promotional impact on international marketing.

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Chapter 01

Exporting and Importing marketing and International Marketing

Promotional impact on international marketing

Introduction The communication task facing any company goes beyond its target market, it extends to its public image; employee morale; and shareholder perceptions of corporate efficiency often based on analysts’ reading annual reports. Communication has been made easier through the advent of telecommunications, fax and e-mail which has effectively eliminated geographic distance. Promotion: Any form of communication between a firm and its publics To bring about a favorable buying action and achieve long-lasting confidence in the firm and the product or service it provides MKT 4134 International Marketing

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Many facets of promotion Personal selling

Exhibitions

Public relations

Promotions Sales promotion

Advertising MKT 4134 International Marketing

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Personal selling • Most effective tool for building buyers’ preferences, convictions, and actions • Personal interaction allows for feedback and adjustments • Relationship-oriented • Buyers are more attentive • Sales force represents a long-term commitment • Most expensiveMKT 4134 of International the Marketing promotional tools

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Personal Selling • Importance of personal selling compared to advertising depends on – Relative cost – Funds available – Media available – Type of product

• Manufacturers of industrial products rely on personal selling • Marketers may increase use of personal selling for consumer 7 MKT 4134 International Marketing products in developing countries

Exhibitions and trade fairs Exhibitions and fairs may be general or specialist. Where specialist, the global competition will be seen together in that exhibition hall for the duration of the show, to display their wares, but also check on what everyone else is doing within the industry. Trade enquiries are more likely to be converted into sales at such exhibitions because buyers worldwide will usually congregate there. Industrially and internationally, these exhibitions provide some degree of image building for the participants, the long term goodwill value of which may greatly exceed the actual orders taken during the exhibition itself. MKT 4134 International Marketing

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Exhibitions and trade fairs The problem with trade fair is that the costs are high and the rewards uncertain. Lillien (1982) had found the most important variables to be: Product complexity Sales level Purchase frequency Customer orientation. Furthermore that levels of spending were influenced by the magnitude of product sales and the stage in the life cycle. MKT 4134 International Marketing

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Trade show criteria Categories and criteria Audience quality • Proportion of decision makers among visitors. • Proportion of visitors in your target market • Show limited to specific types of exhibitors. • Number of percent of new contracts last year. • Screening of visitors. Audience quantity • Number visiting exhibit. • Extent of promotion by how organizers. • The show’s audience size in past years. Display location • Booth position/location on floor. • Ability to specify/negotiate size, location, etc. Logistical aspects • Easy registration or pre-registration. • Security. • Easily available move-in/out assistance. • Move-in/out facilities. Source: Dickinson, J.R., and

MKT 4134 International Marketing Faris.A.J (1985), Marketing

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news, 10 may, p.14.

Public relations/publicity Public Relations Functions • Press relations • Product publicity • Corporate communications • Lobbying • Counseling Marketing Public Relations Functions • Assist in product launches • Assist in repositioning mature products • Build interest in a product category • Influence specific target groups • Defend products • Build corporate image MKT 4134 International Marketing

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Public relations/publicity Major Tools in Marketing PR • Publications • Events • Sponsorships • News • Speeches • Public Service Activities • Identity Media

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Public relations/publicity Any company can benefit form a favorable unsolicited media report. Television, radio and the press often look for free news stories of this kind. To meet this demand, many large companies employ a public relations agency to handle all external relations. Certain high technology and some not so high technology companies have benefited from exposure of this kind which enhances their public image at large, informs the general public, including consumers of their products, and reassures shareholders and other interested bodies, all at the same time. MKT 4134 International Marketing

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Sales promotion A short-term inducement of value offered to arouse interest in buying a good or service. The tools most frequently used:

• Point of purchase advertising including displays. • Premiums: self-liquidating; continuity premiums; tie-in premiums; and fulfillment premiums. • Specialty advertising; gifts to consumers to build goodwill that will generate future purchases. • Coupons. • Sampling. • Deals. • Sweepstakes. • Booklets and brochures. • Trade shows and exhibits. • Directories and yellow pages. • Trade incentives, price reductions, in the form of promotional allowances. 14 MKT 4134 International Marketing

Using Sales Promotions Establish objectives

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Select tools Develop program

Steps in Sales promotion

Pretest Implement and control Evaluate results MKT 4134 International Marketing

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Advertising

Advertising exits to inform, persuade, and remind a buying public of a particular product or service and it does not so at a lowering or exhibitions. Advertising as defined by Kotler (1988) is:’ any paid form of nonpersonal presentation and promotion of ideas, goods or services by an individual sponsor’. Not all advertising is seeking a profitable transaction in the exchange of goods or service. There is now more to advertising than the creation of a brand image for a product, or corporate image for the company. In practice, where there is an oligopoly situation, advertising can create some confusion as to the identity of the advertiser. MKT 4134 International Marketing

Place Advertising 16

Pull and push strategies Advertising seeks to stimulate demand for branded products and may do this in one of two ways either by means of a ‘pull’ strategy whereby a manufacturer might succeed in moving goods into retail shops by advertising to the end-users and ensuring that they ask for this particular product from their usual retailer. Push strategy is where the manufacturer works down the channel of distribution ‘pushing’ the goods by means of financial discounts or incentives. MKT 4134 International Marketing

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Pull and push strategies With regard to advertising, choice has to be exercised as to the medium to be used whether press, television, radio, cinema or outdoor advertising. Points to note here once: • The reach (the total number of members of the target audience who are expected to receive this message at least once) • Frequency (the number of times the target audience will be exposed to the message.) • Impact dependent (this depends on compatibility between the two) • Continuity (which relates to the length of time a campaign will run and the pattern of timing of the advertising within a campaign. MKT 4134 International Marketing

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The communication process

Sender

Encoding

Message Media

Decoding

Receiver

Noise

Feedback

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Response

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The communication process • Sender party sending the message • Encoding message in symbolic form • Message word, pictures and symbols that the sender transmits • Media the communication channel e.g radio • Decoding receiver assigns meaning to symbols encoded by the sender MKT 4134 International Marketing

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The Communication Process • Response reaction of the receiver after being exposed to the to the message • Feedback the part of the receiver’s response after being communicated to the sender • Noise unplanned static or distortion during the communication process e.g. competitor action. MKT 4134 International Marketing

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Campaign transferability Few brands are marketed on a worldwide basis for various reasons: because of language or lack of general transferability resulting from the product being climactically or culturally unsuitable, being too expensive, too large or too small. Smaller product sizes may be required for poor nations. The famous Esso’s ‘put tiger in your tank’ campaign did create an image for an unromantic non-standardized product (petrol/gasoline) Product strategy

Communications strategy

Product examples

Conditions of product use

Ability to buy products

1. Uniform

Uniform

Coca-cola Same

Yes

2. Same

Different

Bicycles

Same

Yes

3. Different

Same

Nescafe

Different

Yes

4. Different

Different

Clothing

Different

Yes

5. Invention

Develop new Washing No communicati machine on Source: Keegan, W. (1970) strategies for multinational marketing, MKTfive 4134 International European Business, January, 35-40. Marketing

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Multinational advertising agencies Multinational advertising agencies have been in a state of flux over the past few years. When agencies are required or merge there is always a movement in account business, and a possible conflict of interest situation is seen to arise. Similarly when a multinational advertising agency is offered the worldwide business of a multinational company, it can often only make room by letting some accounts go. MKT 4134 International Marketing

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Advertising agency usage criteria •

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• • •

Multinationals may select an international agency group with strong central control capable of imposing decisions on regional offices. Example: Colgate use Young and Rubicam in all their markets. P&G, Unilever, Mars all follow this pattern as well. Foreign marketing may require the services of an international agency federation with more decentralized control giving greater local autonomy. For local selling an agency in each territory is considered best for that territory. A home market agency devises the campaign strategy and places advertising directly into the chosen foreign target market media. A company can go it alone without an advertising agency and place advertisements direct or via local correspondence. MKT 4134 International Marketing

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Advertising agency usage criteria

The final choice of agency would be very much influenced by the relative strengths of agencies measured against the following criteria:

• Market coverage. • Quality of coverage. • Market research, public relations, and other marketing services available inhouse. • Definition of the respective roles of company advertising department and agency. • Communication and control. • International co-ordination. • Size of company’s international business. • Image. • Company organization. • Level of involvement. MKT 4134 International Marketing

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Media availability The availability to standardize a campaign internationally presupposes the availability of suitable media. Major media types: • • Newspapers • • Television • • Direct mail • • Radio • • • Magazines

Outdoor Yellow pages Newsletters Brochures Telephone Internet

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Media availability-Television Advantages • Reaches broad spectrum of consumers • Low cost per exposure • Ability to demonstrate product use • Ability to portray image and brand personality

Disadvantages • Brief • Clutter • High cost of production • High cost of placement • Lack of attention by viewers

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Media availability-printed materials Advantages • Detailed product information • Ability to communicate user imagery • Flexibility • Ability to segment

Disadvantages • Passive medium • Clutter • Unable to demonstrate product use

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Radio

Media availability

Availability differs considerably. This may be regional, national and international. In general, though, fewer listen to radio except for certain hours of the day and for certain programmes. Audiences are selective.

Posters

Outdoor hoardings appear to be found everywhere including the former communist countries. Streetcars and buses are like mobile painted posters.

Leaflets

This form of advertising is dependent on the local sophistication of the printing industry and this requires local organization.

Point-of-sale materials

These should be localized for the market concerned and are dependent on prevailing customs as well as average sales and storage area of retail outlets. MKT 4134 International Marketing

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The Internet A network of computer networks stretching across the world, linking computers of different types • Web site • Intranet • e-Business

For successful usage of Internet • Keep it simple • Make it fast • Build trust • Give directions • Welcome the shopper • Create communities • Service the customer • Think globally • Shipping must be easy • Let the world know

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Media Selection

Reach Frequency Impact Exposure

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Choosing Among Major Media Types • Target audience and media habits • Product characteristics • Message characteristics • Cost • Use of language • Legal action • Penalties MKT 4134 International Marketing

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Develop self-discipline Some companies have their own code of ethics, and in general these would suggest that perhaps there are less untruths to be found in industry and commerce than in personal classified advertisements for house and car sales, or armed services recruiting campaigns and supportive literature. MKT 4134 International Marketing

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Thank You.

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Any questions ?

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