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Chapter16-IntegratedMarketingCommunicationsandInternationalAdvertising

PAGE

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?2020byMcGraw-HillEducation.

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Chapter16— IntegratedMarketingCommunicationsandInternationalAdvertising

TeachingObjectives

Thedebateonthemeritsofstandardizationcomparedtomodificationofinternationaladvertisinghasalwaysseemedtobeafallaciousissue—itseemsobviousthatitisbesttostandardizeanymarketingactivitywheneverpossiblebut,ontheotherhand,ifthereisanyactivityinmarketingthatisculturespecific,itisadvertising.Afterall,advertisingiscommunicationsandtobeunderstoodandtocommunicateeffectivelyyoumustexpressyourselfintheculturallanguageofyouraudience.So,howcantheideaofglobaladvertisingeverbeanythingotherthanstandardizewhenfeasibleandadaptwhereculturallynecessary.Inanycase,sincethisissuecontinuestobedebatedandbecausethereisoftenconfusionaboutglobaladvertising,thesetopicsneedtobediscussed.Inmostcases,actualpracticeistostandardizepartsofthemessageandtolocalizeotherparts.Theteachingobjectivesareto:

Presentacompletecoverageoftheissueofglobaladvertisingcoveringspecificallyglobaladvertising,worldbrands,patternadvertisingandtherelationshipofglobalmarketsegmentationandpromotionalstrategy.

Detailthecreativechallengesconfrontingtheinternationaladvertiser.

ExaminetheeffectsofpanEuropeanadvertising.

Reviewthecommunicationsprocessasawayofbetterunderstandingthediversitythatexistsindevelopinganinternationalpromotionalprogram.

SuggestionsandComments

Theinternationalcommunicationsprocess,Exhibit16-4,isusefulinbringingthediscussionofinternationaladvertisingtogether.Itisagoodwaytoillustratethemanywaysapromotionalcampaigncangoawry.Examplesofmisfiresarelegionandtherearemanytochoosefromforexamples.Somerecentreportsofproblemsare:AhighlysuccessfuladcampaignwhichhadboostedsalesintheU.S.,Canada,EuropeandAustraliaforabrandoftoothpasteforchildrenwasnotwell-receivedinBangkok.“TooAmerican”andtheFrenchandU.K.versionswererejectedaswell.Theproblemhadtodowiththe“patonthehead”mnemonicdevice/imagerywhichwasatthecenterofalltheexecutions.Thatscene,whichclosedallcommercialsinthecampaign,wasdesignedtoexpresstheparent’sappreciationforthegoodbrushingthechildhaddonewiththetoothpaste.ButonedoesnottouchtheheadofanotherpersoninmanyAsiancountries.

Weliketoapproachtheproblemscreatedbydifferencesinlaws,language,culture,etc.ascreativechallengesinthatittakesrealcreativitytoovercomesomeoftheseroadblocsandstillpresentaneffectivepromotionalprogram.Thereareseveralexamplesinthetextthatcanbeusedasillustrations.Acaseinpointisthatproductinformationotherthanthenamecannotbegiveninadvertisements.Togetthroughthecensors,onebillboardforanIranianbrandofwomen’slingeriedisplayednowomen,nolingerieandnomentionoftheunmentionableproductatall.Thead’ssoleimagewasoftheunderwear’splaingreenboxwiththewords“softanddelicate”writtenalongside.Oneadvertisingmanagersaid,“Noonehadacluewhatitmeant.”

LectureOutline

I. GlobalPerspective

II. SalesPromotionsinInternationalMarkets

A. InternationalPublicRelations

B. InternationalAdvertising

III. AdvertisingStrategyandGoals

A. ProductAttributeandBenefitSegmentation

B. RegionalSegmentation

IV. TheMessage:CreativeChallenges

A. TheCommunicationsProcess

B. LegalConstraints

C. LinguisticLimitations

D. MediaLimitations

E. ProductionandCostLimitations

V. MediaPlanningandAnalysis

A. TacticalConsiderations

B. SpecificMediaInformation

VI. CampaignExecutionandAdvertisingAgencies

VII. InternationalControlofAdvertising:BroaderIssues

DiscussionQuestions

1.

Define:

Advertising

Publicrelations

Salespromotion

Integratedmarketingcommunications

Noise

“Perhapsadvertisingisthesideofinternationalmarketingwiththegreatestsimilaritiesfromcountrytocountrythroughouttheworld.Paradoxically,despiteitsmanysimilarities,itmayalsobecreditedwiththegreatestnumberofuniqueproblemsininternationalmarketing.”Discuss.

Theparadoxliesinthefactthatadvertisingmethodologyissimilarfromcountrytocountrybutthattheuniqueproblemsofcompanypolicylimitations,legalaspects,linguistics,medialimitations,allposeadistinctproblemtotheinternationaladvertiser.Advertisingmustberelatedtothebasicandexistingmotivationpatterns.Theuniqueproblemistofindthismotivationandorientyourcampaigntothestimuliwhichmustmakethemajorityofthepeoplebuytheproduct.Buttheseproblemsaregenerallymechanicalandcanbeeasilyovercomebylong-rangeresearch.

SomeoneoncecommentedthatadvertisingisAmerica’sgreatestexport.Discuss.

ThiscommentportraysthefactthatAmericawasfirsttorealizethatadvertisingisacrucialelementintheintegratedmarketingplan.SincetheAmericanphilosophyofadvertisinghaspenetratedtheforeignmarket,itissaidtohavebeen“exported.”ManyofAmerica’slargestadvertisingagenciessuccessfullyoperateintheforeignmarket.WorldadvertisingisgenerallypatternedaftertheAmericanadvertisingapproachandsystem.

WithsatelliteTVabletoreachmanycountries,discusshowacompanycanusesatelliteTVanddealeffectivelywithdifferentlanguages,differentcultures,anddifferentlegalsystems.

TherealityofsatelliteTVprovidesthemeanstohavetrulyglobaladvertising.Thisraisesthequestionoftheeffectivenessofstandardizedadvertisingversuslocallyproducedads.Problemsofdifferentlanguagesandlawsraisedoubtsabouttheeffectivenessofpan-Europeanads.InEuropeansatellitebroadcasting,Englishisthepreferredlanguageforprogrammingsincethesatellitesmustcoveraterritorywithmorethan20languagesand28nationalborders.AstudydoneonSkyChannelviewersindicatedthattheEnglishlanguageprogramsareunacceptableformany.GermanswatchtheEnglishlanguageprogramsforaboutaminutebeforedecidingtheyhavethewrongstation.Europeanprogrammingisdeveloping,butslowly.OneofthereasonsforusingU.S.madeprogrammingisthatproducingqualityprogramsforeachcountryistoocostly.Oneapproachtolanguagedifferencesandtheproductioncostsofprogrammingisasix-partseriescalled“Eurocops.”Itisapoliceseriesinwhicheachcountryproducesoneepisodebasedinthecountrywiththeirownpolice,intheirownstyleandwiththeirownproblems.Eachbroadcasterprovidestheepisodeproducedinhiscountrytotheotherfive.Thefivearethendubbedintothelocallanguageandbroadcastlocally.TheideaistoproduceEuropeanprogrammingbutatamuchlowercostpercountrythanifeachcountryhadtoproduceallsixshows.Thereisnoquestionthatcable,satellites,privatization,EUunification,andtheinternetcontinuestorevolutionizebroadcastingandaffectdemandforglobaladvertising.

Outlinesomeofthemajorproblemsconfrontinganinternationaladvertiser.

Ofalltheelementsofthemarketingmix,decisionsinvolvingadvertisingaretheonesmostoftenaffectedbyculturaldifferencesamongcountrymarkets.Consumersreflecttheirculture,itsstyle,feelings,valuesystems,attitudes,beliefs,andperceptions.Sinceadvertising’sfunctionisto“interpretortranslatetheneed/wantsatisfyingqualitiesofproductandservicesintermsofconsumerneeds,wants,desires,andaspirations,”theemotionalappeals,symbols,persuasiveapproachesandothercharacteristicsofanadvertisementmustcoincidewithculturalnormstobeeffective.

Reconcilinginternationaladvertisingandsalespromotioneffortwithculturaluniquenessofmarketsisthechallengeconfrontingtheinternationalorglobalmarketer.Theglobaladvertiserisconfrontedwithlegalandtaxconsiderations,languagelimitations,medialimitationandproductionandcostlimitations.Theselimitationsmustallbedealtwitheffectivelyifacompanyistohaveaneffectiveadvertisement.

Defendeithersideofthepropositionthatadvertisingcanbestandardizedforallcountries.

Yes,thebasictheme,objectives,andphilosophyofinternationaladvertisingcanbestandardized;butthevastmechanicalproblemsmostcertainlycannotbesolvedthroughinternationalstandardization.Theadmancanadapthisbasicskillstoallcountries.Ifbuyingmotivesandcompanyobjectivesarethesameforvariouscountries,thentheadvertisingapproachmaybethesame.Iftheyvary,thencustomizingyourapproachtoeachcountryisamust.

Reviewthebasicareasofadvertisingregulation.Aresuchregulationspurelyforeignphenomena?

Thebasicareasofadvertisingregulationare(1)thelegaltypesuchasGermany’sComparativeTerminologyandDirectComparisonLaws,and(2)taxationonadvertising,prevalentinBritain,France,andAustria.

No,theseregulationsarenotpurelyforeign.HereintheUnitedStatestherearecertainadvertisingcodesandstandardsthatonemustfollow.Thesearegenerallyenforcedbytheadvertisingindustryitself—buttheFCCalsoimposesstrictstandardsof“truthinadvertising.”

Howcanadvertisersovercometheproblemsoflowliteracyintheirmarket?

Theycanovercomelowliteracybymakinguseofadsthatareself-explanatory,andextensiveuseofradiowhichdoesn’thavewrittenwords.

Whatspecialmediaproblemsconfronttheinternationaladvertiser?

Specialproblemsinmedia—availability,cost,andcoverage—confronttheinternationaladvertiser.Localvariationsandlackofmarketdataarealsogreatheadaches.

Availabilityofmediavariesfromcountrytocountryduetogovernmentrestrictions.Countrieshaveeithertoomanyortoofewmediatoadequatelycoverthemajorityofthepopulation.Asfaraspricegoes,theUnitedStatesadmanmustbepreparedtohagglegreatlyovercosts.Mostmediacostsaresubjecttonegotiation.Agencydiscountsareoftensplitwiththeclienttobringcostsdown.Coverageproblemsgenerallyarisewhentryingtoreachcertainsectionsofthepopulation.Therearemanyuneconomicalmediadivisionswhichdonotpermitenoughregionality.Underlyingalltheseproblemsisthelackofmarketinformationwhichhampersagoodcommunicationmixinforeignmarketsandcausesmuchwasteinadcampaigns.

Afterreadingthesectioninthischapterondirectmail,developguidelinestobeusedbyacompanywhendevelopingadirectmailprogram.

Guidelinefordirectmailshouldbethesameasforanyadvertisingprogram,i.e.,identifythetargetmarket,selectamediumthatreachesthetargetmarket,developamessagethatcommunicateshowtheattributesofyourproductfittheneedsofthetargetmarket.Onthislastpointistheissueoftranslation.Youwanttoavoidthemistakeacatalogproducer,R.R.Donnelley,madewhenacollectionofadozenAmericancatalogssenttoJapaneseconsumersreceivedonlymodestresponsesandorders.FailuretoreceivesufficientresponsemayhavereflectedmoreontheAmericanShowcasepackagethanonthesuccessofdirectmailintheJapanesemarket.EventhoughthecoveringletterandbrochuredescribingthecatalogswereinJapanese,thecatalogswereallinEnglish.ThiserrorwasfurtheramplifiedbythefactthatthemailinglistdidnottargetEnglish-speakingJapanese.Inadditiontothesegeneralissues,specialattentionneedstogivetocharacteristicsofmail.Aremailingliststhatincludeyourtargetmarketwithoutexcessivecoverageofnon-targetmarketrecipients?Doesthemailingsystemimposesomeadditionalburdenontherecipient?Forexample,thesituationinChilewherethepersonreceivingmailmustpayaportionofthepostage.

WilltheabilitytobroadcastadvertisementsoverTVsatellitesincreaseordecreasetheneedforstandardizationofadvertisements?Whataretheproblemsassociatedwithsatellitebroadcasting?Comment.

TheabilitytobroadcastadvertisingoverTVsatelliteswillincreasetheneedforstandardizationofadvertisements.TheproblemsassociatedwithsatellitebroadcastingwillfocusoncreatinganadvertisementthatwillbeculturallyacceptableinallthecountriesreceivingtheBCsatellitebroadcastandcreatedinsuchamannerthatlanguagedifferencesthatmayexistwithinthecountrieswillnotaffectthemessagesent.Therearethose,however,whofeelthatsuchanadvertisementwouldbesoblandthatitwouldberelativelyineffective.

Inmanyoftheworld’smarketplaces,abroadvarietyofmediamustbeutilizedtoreachthemajorityofthemarket.Explain.

Duetotheuneconomicaldivisionofmediacoverage,alargeamountofmediamustbeengagedtocoveramajorityofthemarket.Ifanadvertiserwantstoreachhistotalmarket,theexpenditurehewillhavetoincurinusingabroadvarietyofmediaisgreat.Themediacompetitorshavesegmentedthemarketsothatonemustemploymostoftheminasuccessfulcampaign.

CinemaadvertisingisunimportantintheUnitedStatesbutamajormediainsuchcountriesasAustria.Why?

Austriahas20percentofalladvertisingincinemaasasolutiontoitshugetaxesagainsttheothermedia;andtheeffectivenessofthistypeofadvertisingisreflectedbyitsdollarexpenditureinthismedium—11percentofthetotaladexpenditureinthecountryperyear.

“Foreignnewspapersobviouslycannotbeconsideredashomogeneousadvertisingentities.”Explain.

Literacyratesvary,andthisresultsincoveragenotbeingconstant(selectiveratherthanintensive).Manycountrieshavetoomanypaperstorunaneffectivecampaignbecauseonemustutilizeallofthemifonedesirestocoverlargegeographicareas.Eventhen,itisnotknownifeffectivereadershipexists.Politicalpositionofthenewspaperinwhichyoudecidetorunanadmayhaveabadeffectonthereputationoftheproduct.

Borrowaforeignmagazinefromthelibrary.ComparetheforeignadvertisingtothatinanAmericanmagazine.

Libraryproject.

Whatissalespromotionandhowisitusedininternationalmarketing?

Salespromotionsincludeallmarketingactivitiesotherthanadvertising,personalselling,andpublicitythatstimulateconsumerpurchasesandimproveretailerormiddlemaneffectivenessandcooperation.Salespromotionsincludesuchitemsascents-off,instoredemonstrations,samples,coupons,producttie-ins,contests,sweepstakes,sponsorshipofspecialevents,andpoint-of-purchasedisplays.Salespromotionsareusedasshort-termeffortsdirectedatconsumerand/orretailertoachievesuchspecificobjectivesas(1)consumerproducttrialand/orimmediatepurchase,(2)consumerintroductiontothestore,(3)gainingretailpoint-of-purchasedisplays,(4)encouragingstorestostockaproduct,and(5)supportingandaugmentingtheadvertising,personalsalesefforts.

Showhowthecommunicationsprocesscanhelpaninternationalmarketeravoidproblemsininternationaladvertising.

Sincepromotionalactivitiesarebasicallycommunicationsprocesses,alltheattendantproblemsindevelopinganeffectivepromotionalstrategyisdomesticmarketingplusalltheculturalproblemsdiscussedinthechaptermustbeovercometohaveasuccessfulinternationalpromotionalprogram.Amajorconsiderationforaforeignmarketeristoascertainthatculturaldiversity,medialimitations,legalproblemsandconstraints,orcontrolofthemessagecanbecommunicatedproperly.Internationaladvertisingandpromotionalcommunicationsfailforavarietyofreasons:(1)themessagemaynotgetthroughbecauseofmediainadequacy,(2)themessagemaybereceivedbytheintendedaudiencebutnotbeunderstoodbecauseofdifferentculturalinterpretations,and(3)themessagemaybereceivedbytheintendedaudienceandbeunderstoodbuthavenoeffectbecausethemarketerdidnotcorrectlyassesstheneedsandwantsofthetargetmarket.Becauseofthemanydifferentinfluencesthatmayjeopardizethesuccessofapromotionalstrategy,thoseinternationalexecutiveswhounderstandthecommunicationsprocesswillprobablybebetterequippedtomanagethatdiversitysincethecommunicationsprocessforcestheinternationaladvertisertoexamineallofthoseareaswhereproblemsinpromotionmaysurface.

Takeeachofthestepsinthecommunicationsprocessandgiveanexampleofhowculturedifferencescanaffectthefinalmessagereceived.

Theinformationsourcemaycreateaproblembecausethemarketerdoesnottrulyunderstandtheneedsandwantsofthetargetmarket.Thisisespeciallyimportantifthemarketerreliesontheself-referencecriterionandmakesthenaiveassumptionthat“ifitsellsinonecountryitwouldsellinanother.”AnexamplewouldbebicyclesdesignedandsoldintheUnitedStatestoconsumersfulfillingrecreational,exerciseneedswhichcannotbesuccessfullysoldforthesamereasonsinamarketwheretheprimaryuseofthebicycleistransportation.Theencodingstepofthecommunicationsprocesscanalsocauseproblemsbecausesuchfactorsascolors,values,beliefs,tastesandothersymbolsutilizedbytheinternationalmarketerdonotcorrectlysymbolizethemessageintended.Forexample,“BodybyFisher”whichdecodedmeant“CorpsebyFisher”wasnotGeneralMotors’intendedmessage.Themessagechannelmaycreateproblemsbecauseofthedifficultyofeffectivelyreachingtargetmarketsinmanycountries.Problems,suchasilliteracy,theavailabilityandtypesofmedia,createproblemsatthislevel.Decodingproblemsaregenerallycreatedbyimpropere

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