GLOBAL MARKETING

COMMUNICATIONS
Lee & Carter; Keegan & Bhargava

Communication/Promotion Mix
Tools
Advertising

Publicity

Sales
Promotion

Personal
Selling

Direct
Marketing

The Role of Communication Mix

Elements/tools
Presenting and exchanging info with internal &
external, and domestic & international stakeholders
Managing the complexity of different markets, media
availability, languages, cultural sensitivity and
regulations
A tool to build and maintain relationships with
customers & stakeholders
Discharges social responsibility

Advertising
May be defined as any sponsored, paid
message placed in a mass medium
Global advertising refers to the use of the
same advertising appeals, messages, art,
copy, photographs, stories, and video
segments in multiple-country markets

International Marketing Dilemma

versus.

Advertising
Standardization

Advertising
Adaptation

Standardizing Global Advertising

Offers Efficiency gains in advertising creative work, media
buying and staff time
Provides customers with perceived added value
Consistency in corporate identity and branding creates
confidence, trust and loyalty
Is facilitated by the emerging global customer segments due
to:
Global visual and written media
Increased travel
Easier access to products via internet

Standardizing Global Advertising

Standardization is viable when:

Visual messages as the main content

Well-known celebrities
Music
Well-known trademarks or symbols

Standardization is unviable when:

Use of spoken and written language

Humour
Well-known personality is country specific
Context-specific

Factors preventing standardization of

Advertising

Adaptation of Global Advertising

Fundamental cultural differences
Portrayal of women
Local regulations preventing standardization e.g. prohibit
comparative advertising, alcohol, tobacco, products for
children, sexual content etc.
The name insinuates inappropriate meanings or less
appealing to locals
Cultural differences due to symbols, colours, animals or
flowers

Not All Advertising is on TV

Outdoor
Radio
Print Media
Cinema
Van & Loudspeaker
Direct Mail, Flyers
Packaging
Telephone booth ad in Cordoba, Spain

Particularly important for developing

country markets

videos

Major hurdles in Advertising

Four major difficulties

message may not get through to intended

recipient
message may reach target audience but may not
be understood or may even be misunderstood
message may reach target audience & may be
understood but still not induce the recipient to
take the action desired by the sender
effectiveness of the message can be impaired by
noise

Key question for global marketers

Does the specific advertising message &
media strategy need be changed because of
environmental requirements?

How does the global marketer

address?
The global marketer has to:
pay attention to interaction of communication
mix elements
ascertain that the right message is
communicated and received by prospective
consumers
take care of cultural diversity, media
limitations, legal differences, etc.

Development of a Creative Plan

Determining Whats Said and How its Said

Development of Global Media Plan

Media decisions
Specific media vehicle to choose in specific country
markets (Availability varies around the world)
Government regulations
Censorship

Media expenditures
How much to spend in which market

Will depend on company objectives in specific target market

Stage of PLC
Nature of competition
Response of target audience

Global Media Spending

According to AdAge Global, by 2014 half of the world's media spending
would be accounted by 10 emerging markets, and the emerging
markets are expected to surpass US.
While another report by Publicis Groupe's Zenith Optimedia estimated
that China overcame Germany and became the 3rd largest market for
media spending in 2010.
By 2015, China would have surpassed the current No. 2 Japan.
BRIC will be the major growth market, with Brazil taking the 6th spot,
Russia coming in at 11th, India 16th and China at 3rd spot, in 2010.

Top 15 Categories by Global Ad

Spending
1.
2.
3.
4.
5.
6.
7.
8.

Automotive
Personal care
Food
Entertainment
Drugs
Soft Drinks
Electronics
Cleaners

9. Fast Food
10.Computers
11.Beer, wine & liquor
12.Toys
13.Retail
14.Cigarettes
15.Cell Phones

Top 10 Global Marketers

1.
2.
3.
4.
5.

Unilever
Procter & Gamble
Nestle
Coca-Cola
Ford

6. General Motors
7. LOreal
8. Volkswagen
9. Toyota
10.Peugeot

Selecting Ad Agencies
Domestic Agencies
When firm first goes international, typically turns to domestic agency
for help
Understands local environment, creates targeted advertising
But smaller agencies typically dont have international experience
Can be difficult to coordinate across several markets

International Advertising Networks

Can be difficult to be global and local
However, many international ad agencies have formed alliances to
serve clients globally with local experience and expertise

Top 10 Advertising Agencies

O & M: Vodafone, Cadburys, Asian paints, Fevicol

JWT: Nestle, Bayer, Ford, Nokia, Unilever
Mudra Communications: Neutrogena, HBO, Philips, Big Bazar
FCB Ulka Advertising Ltd.: Santoor, Sunfeast, Amul
Rediffusion DY & R:
McCann Erickson India Ltd.: Thanda matlab Coca Cola; For
everything else theres Master Card
RK Swamy BBDO Advertising Ltd
Grey Worldwide (I) Pvt. Ltd: Maruti Suzuki, Indian Oil, Ambuja, P&G
Leo Burnett India Pvt. Ltd: McDonalds, Heinz, Complan, Bajaj
Contract Advertising India Ltd: Dominos Pizza, SpiceJet, Samonsite
and American Tourister.

Personal Selling
Two-way personal communication between
company representative and potential
customer
Job requires understanding buyers needs,
match those to the companys products, and
persuade the customer to buy
Effective personal selling requires building a
working relationship with the customer

International Personal Selling

Challenging to build customer relationships due to different
cultural/national backgrounds
Has to deal with multicultural sales teams, understand
sensitivities and social issues- important for motivating sales
teams
Steps in personal selling: relative importance of each step can vary
region to region

Prospecting
Pre-approaching
Presenting
Problem solving
Handling objections
Closing the sale
Follow up

International Sales promotion

Refers to any consumer or trade program of limited
duration that adds tangible value to a product/brand
Sales promotion laws and usage vary around the world
Include the following

Promotional pricing tactics

Contests
Sweepstakes and games (lottery)
Premium and specialties (promotional for a small fee on
purchase of a product/service)
Dealer loaders
Merchandising materials
Tie-ins and cross-promotions

Sales promotion in select EU countries

Tactic

Germany

France

UK

Netherlands Belgium

On-pack
Price
reductions

Yes

yes

yes

yes

yes

In-pack gift

??

??

yes

??

??

Extra
product

??

yes

yes

??

??

Money-off
vouchers

No

yes

yes

yes

yes

Free prize
contest

No

yes

yes

No

No

Key

Yes- Legally
allowed

??- under
review

No- not
allowed

Direct Marketing Methods

Growing importance of direct marketing
Escalating costs of above-the-line media
Information technology enables processing of customer databases
Interactive media

Types of Direct Marketing include:

Telemarketing
Direct response advertising
Catalogue marketing
Inserts
Door-to-door
Interactive E-Marketing

Depends on availability of postal, cable and/or internet

infrastructure

Public Relations and Publicity

PR team should:
foster goodwill and understanding both inside
and outside the company
generate favourable publicity
Respond to negative media reports of the
company activities globally and tell its side of
the story

PR tools
Tools of PR include

news releases
newsletters
press conferences
tours of plants and other company facilities
articles in trade journals
company publications & brochures
TV and radio talk show appearances by company
personnel
special events
home pages on the Internet

Challenges faced in maintaining

International PR
Lack of understanding of PR in some cultures
may lead to suspicion of intentions
Disclosing information, especially in the case
of private, secret or sensitive information
Developing arguments, some of which cannot
be understood locally because their basic logic
clashes with the host country culture
Dealing with nationalistic feelings

PR Professional: Requirements
He/she must:
Build good personal working relationships with
journalists and other media representatives
Possess Strong IPR skills
Know the audience
Be Able to communicate in the language of host
country
Be Familiar with local customs
be sensitive to non-verbal communication as well

How PR practices differ around the

world

PR practices are affected by cultural traditions, social and political

contexts, and economic environments
For eg. Local press and media encouraged in US but thwarted in Canada
PR is considered as a separate management function in US whereas in
Europe, it is a part of Marketing function
In Europe fewer colleges and universities offer courses in PR than in US
PR coursework is more theoretical in nature in Europe whereas in US, PR
programs are a part of journalism schools or mass communication and
there is more emphasis on practical job skills

Exhibitons and trade fairs/shows

Are increasingly important for industrial
products in the international market place
Objectives:
Industry information
Prospecting for buyers and sellers
Identifying business opportunities
Building relations with buyers and sellers
General promotion of company and its products

Sponsorship promotion

Can be used to increase awareness and esteem

To build brand identification
To enhance brands positioning and sales
To circumvent advertising restrictions in some countries
(Eg. Mc Dowells No.1 symbol on score board in IPL
matches)
Examples of global sponsorship

Olympics
Soccer world cup
Cricket world cup
The Grand Prix
Tour de France