Uluslararası Pazarlama GLOBAL MARKETING COMMUNICATIONS DECISIONS Lecture 10 &13/&14. GLOBAL MARKETING COMMUNICATIONS DECISIONS lecture 10 MARKETING COMMUNICATIONS -THE PROMOTION P OF MARKETING MIX – REFERS TO ALL FORMS OF COMMUNICATION USED BY ORGANIZATIONS TO INFORM, REMIND, EXPLAIN, PERSUADE, AND INFLUENCE THE ATTITUDES AND BUYING BEHAVIORS OF CUSTOMER AND OTHERS. The primary purpose of marketing communications is to tell customers about the benefits and values that a company, nation, product, or service offers. ADVERTISING 1. PUBLIC RELATIONS 2. SALES PROMOTION 3. PERSONAL SELLING 4. SPECIAL FORMS OF MARKETING 5. COMMUNICATION 1. ADVERTISING ………… .any sponsored, paid message that is communicated in a non-personal way. GLOBAL ADVERTISING may be defined as messages whose art, copy, headlines, photographs, taglines and other elements have been developed expressly for their worldwide suitability. … ..global themes used … .. Global company can successfully transform a ? domestic ad campaign into a worldwide one. Global company can create a new global ? campaign from the ground up. The search for a global ad campaign should bring together key company and ad agency personnel to share information, insights, and experience. Tagline was developed by collaboration of representatives from all of McDonald ’ s ad agencies. Breakdancing babies videos campaign of Evian Natural Spring Water as a part of their global advertising for the USA television, internet online and some selected markets worldwide. http://www.youtube.com/watch? v=XQcVllWpwGs http://www.youtube.com/watch?v=T O4b2ZeVEaM&feature=channelGlobal campaigns with unified themes can help ? to build long-term product and brand identities and offer significant savings by reducing the cost associated with producing ads. New concepts such as “ product cultures ” or market ? segments defined on the basis of global demography such as “ emerging middle class ” or “ youth culture ” increase trend toward using global ad. http://www.myspace.com/video/vid/45414444Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. http://www.investopedia.com/terms/b/brandawareness.aspGlobal Ad Content: the “ Standardization ” versus “ Adaptation ” Debate 4 major difficulties can compromise an organization ’ s attempt to communicate with customer in any location: The message may not get through to the intended recepient. 1. This problem may be the result of an advertiser ’ s lack of knowledge about appropriate media for reaching certain types of audiences. The message may reach the target audience but may not be 2. understood or may even be misunderstood. This can be the result of an inadequate understanding of the target audience ’ s level of sophistication or improper encoding. The message may reach the target audience and may be 3. understood but still may not compel the recepient to take action. This could result from a lack of cultural knowledge about a target audience. Global Ad Content: the “ Standardization ” versus “ Adaptation ” Debate 4 major difficulties can compromise an organization ’ s attempt to communicate with customer in any location: The effectiveness of the message can be impared by noise. 4. Noise in this case is an external influence such as competitive advertising, other sales personnel, and confusion at receieving end. These factors can detract from the ultimate effectiveness of the communication. Global Ad Content: the “ Standardization ” versus “ Adaptation ” Debate Standardization argument people everywhere want the same products for the same reasons and this mean that companies can achieve significant economies of scale by unifying ad around the globe. Adaptation argument consumers still differ from country to country and must be reached by ad tailored to their respective countries. Marketing managers may choose to run both global and local ads rather than adopt an “ either/or ” stance The question of when to use each approch depends on the product involved and a company ’ s objectives in a particular market. Guidelines : Standardized print campaigns can be • used for industrial products or for technology-oriented consumer products. Marketing managers may choose to run both global and local ads rather than adopt an “ either/or ” stance Guidelines : Standardized print campaigns with • a strong visual appeal often travel well. Marketing managers may choose to run both global and local ads rather than adopt an “ either/or ” stance Guidelines : TV commercials that use voice-overs instead of actors or • celebrity endorsers speaking dialogue can use standardized visuals with translated copy of voice-over. http://www.youtube.com/watch?v=v5q31ICQuFo&p=BE7C8252473F81EB Ad Agencies: Organizations and Brands Table 1: Top 5 Global Ad Organizations ____________________________________________________ Organizations and Worldwide revenue Headquarters Location 2008 (millions) ______________________________________________________________ WPP GROUP (LONDON) $13.598 1. OMNICOM GROUP (NEW YORK) $13.360 2. INTERPUBLIC GROUP OF COS. (NEW YORK) $ 6.963 3. PUBLICS GROUP (PARIS) $ 6.900 4. DENTSU (TOKYO) $ 3.296 5.Table 2: Top 10 Global Ad Brands Estimated Worldwide Agency Revenue 2008 (millions) Dentsu (Dentsu) $ 2.472 1. BBDO Worldwide (Omnicom) $ 1.986 2. McCann-Erickson Worldwide $ 1.741 3. (Interpublic) DDB Worldwide (Omnicom) $ 1.509 4. TBWA Worldwide (Omnicom) $ 1.357 5. JWT (WPP) $ 1.157 6. Publicis (Publicis) $ 1.071 7. Leo Burnett Worldwide (Publicis) $ 795 8. Saatchi&Saatchi (Publicis) $ 771 9.In selecting an ad agency, the following issues should be considered: Company organization. Companies that are 1. decentralized may want to leave the choice to the local subsidiary. National responsiveness. Is the global agency 2. familiar with local culture and buying habits in a particular country or should a local selection be made? Area coverage. Does the candidate agency cover all 3. relevant markets? Buyer perception. What kind of brand awareness 4. does the want to project? If the products needs a strong local idenification, it would be best to select a national agency. Creating Global Ad The message is at the heart of advertising. Is the ad designed to To inform, To entartain, To remind, To persuade? Ads must break through the clutter, grab the audience , attention, and linger in their minds. This requires developing an original and effective creative strategy, which is simply a statement or concept of what a particular message or product will say. Creating Global Ad The ad appeal is the communications approach that relates to the motives of the target audience. Ads based on a rational appeal depend on logic and speak to the audience ’ s intellect. Ads based on an emotional appeal are designed to stimulate one's emotions because they are attempting to appeal to the consumer's psychological, social, or emotional needs. The copy is written to arouse fear, love, hate, greed, or humor, or otherwise create psychological tension that can best be resolved by purchase of the product or service. Sadness and happiness http://www.youtube.com/watch?v=QCpllACqWlA&p=CD651C43222A369BCreating Global Ad The selling proposition is the promise or claim that captures the reason for buying the product or the benefit that ownership confers. The way an appeal or proposition is presented is called creative execution. (straight sell, scientific evidence, demonstration, comparison, testimonial, slice of life, animation, fantasy, and dramatization) http://vimeo.com/7587051Creating Global Ad The visual presentation of an ad is a matter of art direction. The individual with general responsibility for the overall look of an ad is known as an art director. This person chooses graphics, pictures, type styles, and other visual elements that appear in an ad. Creating Global Ad The words that are the spoken or written communication elements in advertisements are known as copy. Copywriters are language specialists who develop the headlines, subheads, and body copy used in print advertising and the scripts containing the words that are delivered by spokespeople, actors, or hired voice talents in broadcast ads. Creating Global Ad Advertising slogans often present the most difficult translation problems. The challenge of encoding and decoding slogans and taglines in different national and cultural contexts can lead to unintentional errors. f.e. The Asian version of Pepsi ’ s “ Come Alive ” tagline was rendered as a call to bring ancestors back from the grave. http://www.youtube.com/watch?v=qatumjVNRVk&list=PLCD651C43222A369B&index=7&pl aynext=1Creating Global Ad A copywriter who can think in the target language and understands the consumers in the target country will be able to create the most effective appeals, organize the ideas, and craft the specific language, especially if colloquialisms, idioms, or humor are involved. f.e. In southern China, McDonald ’ s is careful not to advertise prices with multiple occurences of the number 4 because in Cantonese, the pronounciation of the word four is similar to that of the word “ death ” . Global Media Decisions Print media Newspapers (local daily, weekly), Magazines and Business publications with national, regional, and international audiences. Electronic media Tv, cable Tv, radio, Internet INDIA Print media are enjoying a revival as redesigned newspaper formats and glossy supplements lure a new generation of readers. India is home to nearly 300 daily newspapers, including The T ı mes of India and the Hindustan Times. The price per copy is only 5 rupees – about 10 cents. RUSSIA Billboards are the medium of choice in Moscow. Moscow is a city built for about 30.000 cars; during the past decade, the number of cars has grown from 300.000 to 3 million. The result is massive traffic jams and commuting delays; affluent businesspeople spend hours in traffic and have little time to read the newspaper or watch TV.DENMARK, NORWAY, SWEDEN TV ad is very limited. Sweden bans advertising to children younger than 12 years old. 2. PUBLIC RELATIONS is the department or function responsible for evaluating public opinion about, and attitudes toward, the organziation and its products and brands. PR personel also are responsible for fostering goodwill, understanding, and acceptance among a company ’ s various constituents and publics. publicity is communication about company or brand for which the company doesn ’ t pay. PR is also responsible for providing accurate, timely information, especially in the event of a crisis. The basic tools of PR: News releases, ? Newsletters, ? Press conferences, ? Tours of plants and other facilities, ? Articles in trade or professional journals, ? Company publications and brochures, ? TV and radio talk show interviews, ? Special events, ? Social media, ? Corporate Web sites. ?PR professionals must have strong interpersonal skills. One of the basic concepts of the practise of PR is to know the audience. Global PR practioners should know the audiences in both home country and the host country or countries. Spesific skills needed include the ability to communicate in the language of the host country and familiarity with local customs. PR professional should be sensitive to nonverbal communication issues in order to maintain good working relationships with host-country nationals. 3. SALES PROMOTION ………… refers to any paid consumer or trade communication program of limited duration that adds tangible value to a product or brand. Price promotion – price reduction, coupon Non-price promotion – free samples, “buy one, get one free ” offers, contests Sales promotion programs should be integrated and coordinated with those for ad, PR and personal selling. SALES PROMOTION Advantages : Providing a tangible incentive to buyers, ? Reducing the perceived risk buyers may ? associate with purchasing the product, The manager in charge of promotion can ? immediately track the results of promotion. Disadvantages : Costly ?SALES PROMOTION Should headquarters direct promotion efforts or should they leave them to local country managers? Yes, they should involve because they maintain consistency from country to country and ensure that successful local programs are leveraged in other markets. SALES PROMOTION Local managers should consult headquarters before a promotion is launched. A number of factors must be taken into account when determining the extent to which the promotion must be localized: In countries with low levels of economic ? development, low incomes limit the range of promotional tools available. (free samples and demo)Market maturity can also be different from ? country to country; (trade allowances or loyalty programs)Local perceptions of a particular promotional ? tool or program can vary. f.e. Japanese are reluctant to use coupons. Local regulations may rule out the use of a ? particular promotion in certain countries. f.e. In Germany, coupons by mail are legal for samples only. Price-off coupons not allowed. In Sweden, coupons by mail are legal to persons age 16 and older; illegal to send to persons younger than 16. In the USA, coupons by mail are legal. Restrictions on alcohol, tobacco, and drugs. Trade stucture in the reatiling industry can ? effect the use of sales promotions. f.e. In the USA and parts of Europe, the retail industry is highly concentrated (Walmart). sampling ……… ..is a sales promotion technique that provides customers with the opportunity to try a product or service at no cost. “ The most fudamental thing that consumers want to do is try before they buy”. Marc Pritchard Vice president of global cosmetics and personal care at P&Ga typical sample is an individual portion of a consumer packaged good such as: Event marketing Sponsorships “ soft and beautiful hear ” “ nutrition ” “ dandruff relief ” “ fashion ”4. PERSONAL SELLING ………… ..is person-to-person communication between a company representative and a prospective buyer. PERSONAL SELLING The seller ’ s communication effort is focused on informing and persuading the prospect, with short-term goal of making a sale and with a longer-term goal of building a relationship with that buyer. the salesperson ’ s job correctly understand the buyer ’ s needs, ? match those needs to the company ’ s ? products, persuade the customer to buy. ? Technologically complex and expensive products Table 3: The 6-Step Presentation Plan Approach (understanding decision making process 1. and the roles of each participant) Presentation (the prospect ’ s needs are assessed and 2. matched to the company ’ s products, presentation should be designed to educate and inform) Demonstration (tell and show how the product can 3. meet the the customer ’ s needs, to be prepared for a lively debate on the pros and cons of the product ) Negotiation (required to ensure that both the 4. customer and the salesperson come away from the presentationas winners) Close (asking order) 5. Servicing the sale (to ensure customer satisfaction 6. with the purchase, an implementation process (delivery, installation) must be outlined and a customer service program established) 5. SPECIAL FORMS OF MARKETING COMMUNICATION DIRECT MARKETING ? SUPPORT MEDIA ? EVENT SPONSORSHIP ? PRODUCT PLACEMENT ?DIRECT MARKETING …………… . is any communication with a consumer or business recepient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business. One-to-one marketing calls for treating different customers differently based on their previous purchase history or past interactions with the company. Direct mail uses the postal service as a vehicle for delivering a personelly addressed offer to a prospect targeted by the marketer. (banks, insurance companies, other financial service providers)A catalog is a magazine style publication that features photographs, illustrations, and extensive info about a company ’ s products. Infomercials is a form of paid tv programming in which a particular product is demonstrated, explained, and offered for the sale to viewers call a toll-free number shown on the screen. http://www.dailymotion.com/video/x6wndk_mr-t-on-the-flavorwave-oven infomer_shortfilms Teleshopping is the round-the-clock programming that is exclusively dedicated to product demonstration and selling. SUPPORT MEDIA Transit ad ?SUPPORT MEDIA Billboard ad ?EVENT SPONSORSHIP ……… .is a form of marketing communications whereby a company pays a fee to have its name associated with a particular event, team or athletic association, or sports facility. http://edition.cnn.com/video/data/2.0/video/business/200 9/10/14/boulden.sports.sponsorship.cnn.htmlPRODUCT PLACEMENT …… ..arranging for company products and brand names to appear in popular TV programs, movies, and other types of performances. Marketers can also len or donate products to celebrities or other public figures; the products get publicity when the celebrity appears in public using the product. tactic is especially popular with Automanufacturers • Fashion designers • Popular annual tv events such as Academy • Awards and the Grammy ’ s Anastasiya Zavorotnyuk “ MY BEAUTIFUL NANNY”Clint Eastwood, Nicole Kidman, Catherine-Zeta Jones, Gerard Depardieu, Meryl Streep ve Andie Mc Dowell