THE INTERNATIONAL
ENVIRONMENT FOR
PROMOTION
and
IMC
2.1 7.1
Cultural Communications
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:
7.4
Overcoming Cultural Barriers in
International Promotion
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
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
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
Challenges in International Sales Promotion,
Direct Marketing and e-Commerce (con’t)
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
Trade Show
7.13
Challenges in International Sales Promotion,
Direct Marketing and e-Commerce (con’t)
REGULATIONS
7.15
Challenges in International Public Relations
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
7.18
Certain Product Lend
Themselves to
Standardized Campaigns
7.19
Standardized vs. Promotional Customized Campaigns
(con’t)
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