CHAPTER 8
PROMOTION &
MARKETING
COMMUNICATION
VU THN
ngocvth@uel.edu.vn
Table of Contents
01
02
03
04
Export marketing promotion
and communication decisions
Alternative techniques of
promotion
Standardization or adaptation?
Ethics
INTRODUCTION
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Communication greatly affected by culture so international promotion more
complex
Social, political and economic contexts influence promotional activities
Same promotional mix elements used, but may have different importance in
different countries
Sophisticated communication tools might not be appropriate in some markets
Brands as story tellers (brand narrative)
Growing importance of digital and social media across markets
Rise of Brand Journalism
Storytelling
1 EXPORT MARKETING PROMOTION
& COMMUNICATION DECISIONS
The promotion decisions
● What messages?
● What communications media?
● How much effort or money to spend?
Personal selling
to communicate primarily face-to-face with prospective customers
Advertising
a nonpersonal presentation of sales messages through various ‘mass’
media, paid for by the advertiser
Sales promotion
sales activities, which supplement & strengthen personal selling & advertising
Publicity
news about a company or its products that is reported by some media, and is not
paid for by the company
1.1 A CONCLUDING
COMMENT
One world, one voice?
1. Requirements for effective comms are
fixed and don’t vary from country to
country
2. Does the use of digital media make
standardization easier
3. Communication process the same BUT
- Message may not get through
- May reach target, but not understood
- May not compel target to take action
- Effectiveness impaired by noise
(Keegan & Green, 2013)
2.1 PERSONAL SELLING
The actual
selling activity
Customer
relations
The communication of
product information to
The salesperson must at
all times be concerned
customers, and
obtaining orders.
with maintaining &
improving company’s
position with customers
and the general public.
Information
gathering and
communicating
The salesperson is often
able to provide
information that might
be useful in planning
advertising and trade
promotion programs.
2.2 SALES PROMOTION
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Can global brands run standardised campaigns?
Tends to be used locally [tactically] by companies in order to
achieve short term objectives.
May also be used to support advertising campaigns (which may
have longer-term objectives)
2.2 SALES PROMOTION
Nonprice promotion
Free samples
Buy 1 get 1
Premiums
Contests
Sweepstakes
Price promotion
Price reduction
Coupon
Mail-in refund
2.2 SALES PROMOTION
Consumer sales promotions are designed to make consumers aware
of a new product, to stimulate nonusers to sample an existing
product, or to increase overall consumer demand.
Trade sales promotions are designed to increase product availability
in distribution channels
2.2 SALES PROMOTION
• Often the responsibility of local or regional management
• Will the offer work from a cultural perspective?
• Are retailers willing and capable of supporting promotion
• Laws differ – regulations very fragmented
• Regulation of competitions, free gifts, coupons
2.2 SALES PROMOTION
Pringles festival promotion
increases EMEA sales
Berry White gives a donation from every
bottle sold to Global Angels charity
2.3 FOREIGN CATALOGS
• Create interest and attract readership.
• Mirror the personality of the manufacturer or exporter.
• Carry the reputation of the manufacturer or exporter into world
markets.
• Make buying easy.
• Create the desire for ownership.
• Supply all the facts that a salesperson would present in person.
2.4 SAMPLES
• Direct sampling (mail, express or
courier)
• Residential agents
• Branch office managers
• Traveling sales people
⥤ need to look at national regulations
2.5 HOUSE ORGAN AND COMPANY-PUBLISHED
MAGAZINES
• Publications provide company, distributor, or agent personnel with
knowledge of the success of other distributors or agents.
• A vehicle for promotional ideas, company news, the results of contests,
employee commendation, important device to stimulate enthusiasm
and effective sales performance abroad.
2.6 FILMS, SLIDES, AND
PERSONAL COMPUTERS
• Motion picture, video tape, DVD
• Advantages: buyers are often willing
to take the time to watch, not to
spend the same amount of time
listening to a conventional sales talk.
2.7 TRADE FAIRS AND EXHIBITIONS
2 types:
(1) the broad, general-type, well-established annual affairs
(2) the specialized type, for products in specialized groups or
industries
Some elements of the process at a trade fair
(1) gathering names;
(2) demonstrations;
(3) prizes;
(4) client promotions.
2.8 INTERNATIONAL PR
“strategic communication process that builds mutually beneficial relationships
between organizations and their publics.”
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Increasing need for organisations operating globally to use PR to manage
reputation
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$14 bn. Industry revenue in 2018 (Statista, 2018)
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Top 7 players $5.7 bn.
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More stakeholders than domestic environment, groups vary across countries
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Culture has great influence on PR
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Foreign firms have to face nationalism
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“Corporate diplomacy”
2.8.1 PR TRENDS
Fake News Frenzy Escalates
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Recognize the pressure that journalists are under.
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Be specific in terms of quotes, citing all sources, and being hyper-vigilant when it comes
to figures and statistics.
Storytelling and Relationship Building Become Priorities
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Expand your net, reaching a diverse set of partners who can help scale your stories.
PR Professionals Will Play a Broader, Deeper Role
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Create content across multiple channels to expand and deepen your reach.
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Use the power of storytelling throughout your organization to personalize your content.
Deepen your communications with visual, video, and voice content tailored to your
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audience.
2.8.2 TARGET GROUPS FOR INTERNATIONAL PR
REGIONAL
GROUPINGS
SUPPLIERS
CUSTOMERS
EMPLOYEES
GOVERNMENTS
GENERAL
PUBLIC
FINANCIAL
MARKETS
SHAREHOLDERS
2.8.3 GLOBAL PR TOOLS
Global PR
Website
Social Media
Corporate
Advertising
Corporate
philosophy
Spokesperson
Corporate
philanthropy
Conferences
Media
Relations
“When people want to criticise
something, they will attach that criticism
to the biggest company they can find.”
(Knight, n.d.)
Sponsorship
Government
Relations
“We are a PR agency, but that doesn’t
mean we just do media relations. PR is
now a much wider discipline than that. It
includes many different channels of
communication and many different
influencers through which we can tell
your story”
(Berkeley Communications, 2018)
UNILEVER GLOBAL PR
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Brands include Dove, Lipton, Magnum, Persil and Vaseline
PR spend approx. $35 mill
2009 decision to centralise
“to ensure consistency of pricing, work and quality of ideas”
Global media agency review 2015
Unify global spreads business
“dramatic changes” to the media landscape and how it is transforming the way
people connect with our brands” (Di Como, n.d.)
2.8.4 INTERNAL
COMMUNICATIONS
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Internal communications
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Employee engagement
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Use of storytelling and narrative
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Channels – corporate TV, magazines,
posters, emails, social media, blogs,
intranet, face-to-face ……
(Lipiainen, Karjaluoto & Nevalainen, 2014)
“Internal communication is among the fastest growing
specializations in public relations and communication
management”
(Tkalac Vercic, Vercic & Sriramesh, 2012)
2.9 GLOBAL ADVERTISING
Advertising may be defined as any sponsored,
paid message that is communicated in a
nonpersonal 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.
2.9.1 ADVERTISING STRATEGY OPTIONS
Fully standardised
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Product/brand sold across borders
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No adaptation, unified images
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Little or no copy, but background music
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One language
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Is digital leading to a higher level of standardised
adverts?
2.9.1 ADVERTISING STRATEGY OPTIONS
Some Modifications: Voice-over
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Visuals are central to advert
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Original language or voice-over
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Beware of lip-sync
Partial Adaptation: Different Values
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1 basic form (comparison, testimonial, drama)
adapted to local markets
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Different adverts with cultural values reflected
e.g Gillette, Nivea, Snickers
e.g P&G - Dreft, Fairy, Ace
2.9.1 ADVERTISING STRATEGY OPTIONS
Partial Adaptation: Different Executions
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e.g McDonald’s, L’Oreal
1 basic idea/theme with different local executions
Recognisable elements in all adverts
Different executions developed in different countries and
adopted by others of similar culture
2.9.1 ADVERTISING STRATEGY OPTIONS
Adaptation: Multi-Local
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e.g Nestlé, VW, Guiness, McDonalds
Mental images cannot be standardised
Features local cultural values
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Building relationships with consumers
Major objective is to build trust
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Company name often used in endorsement
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2.10 MEDIA
Print
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Magazine and newspapers ads 22.5%in 2014 (Zenithioptimdia 2015)
Continued decline in 2015
Balance between national and regional titles
Readership levels vary
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Magazine reach varies
Readership patterns may vary
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Increasing internationalisation of printed media
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2.10 MEDIA
Radio
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Radio 6.8% of total in 2014 (Zenith Optimedia 2015)
Commercial stations - national, regional or local?
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Unavailable for advertising in some countries e.g. Norway
Useful for specific markets where literacy and income is low (e.g. Brazil)
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or with geographical diversity (e.g. Australia)
Unlikely to support advertisements in a non-local language
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2.11 ONLINE
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a forum for exchange of common interests;
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a sense of place with codes of behavior; a meeting place for specialists;
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the development of stimulating dialogues leading to relationships based on
trust;
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encouragement for active participation by more than an exclusive few.
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Rise and rise of social media
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High internet usage growth rates in China and UK
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Cadbury integrates email, online, mobile and interactive TV activity on a
global scale to allow it to link and analyse its performance across all digital
channels in key international territories
2.12 SOCIAL MEDIA
2.13 OTHER MEDIA
Outdoor Sites
Cinema
Attendance levels
Sites may be
vary e.g. low in
restricted by
Italy
planning legislation
Effectiveness at
reaching target
e.g. UK high, Spain
low
Mega-events
Increasing
advertising around
world events e.g.
World Cup, Olympic
Games, Grand Prix,
Super Bowl
market depends on
Impact is variable
Advertising as
films show
and depends on
activation of
sponsorship
travel flow
2.14 REGULATIONS IN ADVERTISING
Product:
Type:
Alcohol, Tobacco,
Claims:
Use of superlatives
Knocking of competitors
Target Audience:
Protection:
Children, Young People
Violation of Culture:
Standards:
Muslim Countries
Offensive images
Media:
Prohibition:
Commercial advertising banned
Scheduling:
Time/space available for advertising.
Blocking regulations
INTERNATIONAL PR
DIFFERENCES
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Data-driven Deutschland
“The best brands are human,
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Engaging España
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Cheeky Aussies
they’re open about their flaws,
they recognise them and they
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Funny French: critical, but
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enjoy a good joke
embrace them. The best crisis
management isn’t a robotic
Informal Americans
press release, it’s a human”.
(Healey, 2013)
“Many of those subtle differences in communication
depend on national or even regional culture, despite
globalization” (Janssen, 2013)
2.15 SPONSORSHIP
• Growing importance on a global scale
• Brand engagement
• Global value $60.2 bill+ in 2016 (IEG,2015)
• Value varies across regions
• Sport is a particular target to global audiences for mega-events
• High cost of activation
“76% of people believe brands should “provide funding and/or be actively involved in the
sponsorship of sport and entertainment”.
“Being an Olympic sponsor is a disadvantage”
(former Coca-Cola UK marketing boss)
“the original sponsorship model “no longer functions”
Football Sponsorship
ASPECTS
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Arts, Sport, Entertainment, TV ........
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Active engagement on the part of sponsors/partners – not just funding
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Trend towards increased brand engagement against the background of
digital revolution
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Celebrity endorsement
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Relevance of sponsorship property to customers
3 STANDARDIZATION VS ADAPTION
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International market convergence leading to homgenisation?
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Or more diverse and complex cultural mixing?
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High cost of localised advertising
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Intercultural communication – ability to communicate a
meaningful message to heterogeneous local markets
representing various cultural settings
Should we use a specific advertising message and media strategy from region to region
or country to country because of environmental requirements ?
3 STANDARDIZATION VS ADAPTION
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Standardized print campaigns: industrial / high-tech consumer products
(Apple’s iPhone and iPad)
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Standardized print campaigns with a strong visual appeal often travel well.
E.g Chivas Regal (“This is the Chivas Life”). Picture-based instructions can be
used throughout the world without translation.
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TV commercials that use voice-overs instead of actors or celebrity
endorsers speaking dialogue can use standardized visuals with translated
copy for the voice-over. Examples: Gillette (“The best a man can get”); GE
(“Imagination at work”); UPS (“We
Logistics”).
4.1 ETHICS AND INTERNATIONAL MARKETING
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Green marketing: green movement, eco-labelling
UK plastic carrier bag sales fall by more than 95 per cent following introduction of 5p charge
4.1 ETHICS AND INTERNATIONAL MARKETING
● Green movement: political/consumer movement favoring environmentally
friendly approaches.
● Eco-labelling: a label or logo to show that a company is socially responsible.
4.1 ETHICS AND INTERNATIONAL MARKETING
compact fluorescent light
(CFL) bulb: $15
incandescent bulb
$0.75
The product had difficulty climbing out of its deep green niche. They
relaunched the product as ‘Marathon’, underscoring its new ‘super long life’
positioning and promise of saving $26 in energy costs over its five-year lifetime
-> sales climbed 12% in an otherwise flat market
4.1 ETHICS AND INTERNATIONAL MARKETING
The point of return: recycling options offered by some major companies
Company
Shipping/recycling fees
In-store drop-off
Apple
Free with shipping form
Batteries and iPods accepted at Apple
stores
HP
Free shipping via FedEx for HP and Compaq
Stationery stores accept many HP and
non-HP consumer products, except TVs
products with pre-printed voucher
Dell
Free shipping or pick-up of Dell products,
and free pick-up of non-Dell items with
purchase of a Dell product
The Dell Reconnect partnership with
Goodwill accepts any brand of
electronics except mobile phones
Amazon
Free shipping for Kindles via UPS with preprinted voucher
Not available
4.2 Ethical issues in international marketing activities
Marketing activity
Positioning
(Un)Ethical issues
Positioning a low-quality product as a high-quality product
Product positioned to perform a function that it cannot actually do, e.g. cholesterolreducing food, anti-ageing cosmetics
Blackmailing customers that if they do not use the product they will be harmed/
disadvantaged in some way
Product
Product that can cause harm to customers/users, e.g. children’s toys
Products that pose a safety risk for users, e.g. electric goods, automobiles
Products that can cause health problems, e.g. side-effects of medicines
When customers are not fully informed about product content, e.g. in food items
containing nuts, GM ingredients or high sugar/salt levels
Use of environmentally unfriendly packaging
4.2 Ethical issues in international marketing activities
Price
Price cartels, where two or more competitors fix a price that is higher than competitive pricing
Charging discriminatory prices without any extra value provided
Transfer pricing; over- or under-pricing internal invoices for taxation purposes
Charging high monopolistic prices, e.g. medicines for epidemic diseases, such as AIDS in
Africa
Paying bribery/illegal payments or giving gifts to acquire sales
Promotion
Claiming inaccurate product benefits through advertising
Not informing the customer fully through different means of communication
Using inappropriate language in advertising
Using discriminatory or degrading slogans
Advertising directed towards younger children
Paying illegal kickbacks to promote a product
4.2 Ethical issues in international marketing activities
Place
Discriminatory distribution, e.g. forcing wholesalers and retailers to discriminate among
customers (to whom the product can be sold)
Demanding unfair benefits, kickbacks and/or advances from retailers or suppliers
Not taking responsibility for after-sales service, e.g. in electronic goods
SUMMARY
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Growing globalisation of advertising, but still need for adaptation in many
cases
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Growing importance of global PR in line with spread of global brands
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Increasing amount of promotional spend on sponsorship, particularly for
global consumer brands
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Sales promotion remains very locally oriented
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Personal selling still important in a B2B context
?
Explain how culture can influence the effectiveness of comparative
advertising. Is there a stronger influence on ‘attack ads’? Discuss.
Choose a country representing a western culture and one
representing an eastern culture. Would the same type of
comparative advertising work in each? Why or why not?
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Why would a consumer buy a product where they did not know whether they liked the flavor?
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Why would the brand associate with the letters WTF, given this can also have a negative
connotation?
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Why would the brand run this sales promotion, rather than just introducing the new flavor
straight to the marketplace?