INTEGRATED MARKETING COMMUNICATIONS

(IMC) & INTERNATIONAL ADVERTISING

Chapter 9
Dr. Le Nguyen Hoang
Learning Objectives
Identify local market characteristics that affect the
LO1 advertising and promotion of products
LO2
Discuss the strengths and weaknesses of sales
promotions and public relations in global marketing
LO3 Recognise when global advertising is most effective;
when modified advertising is necessary
Understand the communication process and
LO4 advertising misfires
Discuss the effects of a single European market on
LO5 advertising
Explain the effect of limited media, excessive media,
LO6 and government regulations on advertising and
promotion budgets
Integrated Marketing
Communications (IMC)
 Once a market offering is developed to meet target
market needs, intended customers must be informed
of the offering
 Integrated marketing communications (IMC)
comprises:
• advertising
• sales promotions
• personal selling
• direct selling
• public relations
Integrated Marketing
Communications (IMC)
 All these mutually reinforcing elements of the
promotional mix have as their common objective:
The successful sale of a product or service
Sales Promotions in
International Markets
 Sales promotions are marketing
activities that stimulate consumer
purchases and improve retailer or
middlemen effectiveness and
cooperation
 Sales promotions are short-term
efforts directed to the consumer or
retailer to achieve such
specific objectives as consumer-
product
trial or immediate purchase
Sales Promotions in
International Markets
International Public Relations
 Creating good relationships with the popular press
and other media to have and maintain great
positioning
International Advertising
 Decisions involving
advertising are those
most often affected by
cultural differences
among country markets
 Consumers respond in
terms of their culture,
its style, feelings, value
systems, attitudes,
beliefs, and perceptions
Case in Point: Share a Coke –
A marketing genius
International Advertising
 Advertising’s function is to interpret the qualities of
products in terms of consumer needs, wants, desires,
and aspirations, the emotional appeals, symbols, and
persuasive approaches
 Reconciling an international advertising campaign
with the cultural uniqueness of markets is the
challenge confronting the international or global
marketer
Exhibit 16.1: Top 20 Global Advertisers

Source: Cateora et al. (2011: 460)

Exhibit 16.2: Top 100 Advertisers’
Global Spending by Category

Source: Cateora et al. (2011: 460)

Exhibit 16.3a: Russia’s Top 10
Advertisers’ ($ millions)

Source: Cateora et al. (2011: 461)

Exhibit 16.3b: China’s Top 10
Advertisers’ ($ millions)

Source: Cateora et al. (2011: 461)

International Advertising Framework

1 • Perform marketing research

2 • Specify the goal and objectives of the communication

• Develop the most effective message(s) for the market
3 segments selected

4 • Select effective media

• Compose and secure a budget based on what is required to
5 meet goals

6 • Execute the campaign

7 • Evaluate the campaign relative to the objectives specified

Source: Cateora et al. (2011: 461)

Advertising Goal & Objectives
 The goal and objectives
of advertising around
the world vary
substantially
 Intense competition in
world markets and savvy
foreign consumers have
created a need for more
sophisticated advertising
strategies.
Advertising Goal & Objectives
 More multinational
companies (MNCs)
are required to
balance between
standardisation and
customisation of
advertising themes
internationally.

“Designed by you – Made by Nike”

Product Attribute and
Benefit Segmentation
 Different cultures usually
agree on the benefit of
the primary function of
a product
 Other features and
psychological attributes
of the item can have
significant differences
• Cameras
• Yogurt
• Almonds
Regional Segmentation
 Pan-European communications media
highlighting need for more standardised
promotional efforts
 Costs savings with a common theme in
uniform promotional packaging and design
 Legal restrictions slowly being eliminated
The Message: Creative Challenges
 There are many problems in communicating a firm’s
product offerings to its various target markets
around the world. Some of these include:
• Global Advertising and the Communications Process
• Legal Constraints
• Linguistic Limitations
• Cultural Diversity
• Media Limitations
• Production and Cost Limitations
Global Advertising &
the Communications Process
• An information source. An international marketing executive with a product message to communicate.
1

• Encoding. The message from the source converted into effective symbolism for transmission to a receiver.
2

• A message channel. The sales force and/or advertising media that convey the encoded message to the
3 intended receiver.

• Decoding. The interpretation by the receiver of the symbolism transmitted from the information source.
4

• Receiver. Consumer action by those who receive the message and are the target for the thought transmitted.
5

• Feedback. Information about the effectiveness of the message that flows from the receiver (the intended
6 target) back to the information source for evaluation of the effectiveness of the process.

• Noise. Uncontrollable and unpredictable influences such as competitive activities and confusion that detract
7 from the process and affect any or all of the other six steps.
Exhibit 16.4: The International
Communication Process

Source: Cateora et al. (2011: 467)

Legal Constraints
 Advertising campaigns
must comply with legal
regulations around the
world
 Comparative
advertising is heavily
regulated in other
parts of the world
Legal Constraints
 A variety of restrictions on advertising of
pharmaceuticals is restricted in many countries
 Advertising on television is strictly controlled in many
countries
 In Germany, for example, commercials must be
spaced at least 20 minutes apart and total ad time
may not exceed 12 minutes per hour.
Linguistic Limitations
 Advertising from culture
does not often translate
well in another culture due
to differences in languages
and dialects
 For example, Chrysler
Corporation translated its
U.S. theme that advertised
“Dart Is Power” To the
Spanish, the phrase implied
that buyers sought but
lacked sexual vigor
Linguistic Limitations
 The Bacardi wanted to sell
the drink in Germany
called Pavane, but it is
perilously close to pavian,
which means “baboon”

 A company marketing
tomato paste in the Middle
East found that in Arabic
the phrase “tomato paste”
translates as “tomato glue”
Cultural Diversity & Media Limitations

 Cultural Diversity: Ad campaigns and product

brand names being communicated may mean
different things to different cultures
 Media Limitations: in some underdeveloped
countries, there is a shortage of advertising media
such as radio stations, print media (newspapers,
magazines), and television stations, cable TV, and
satellite TV
Production & Cost Limitations
 Production and Cost Limitations: In some markets
costs are prohibitive to advertise on conventional
advertising media; other countries may have low
quality paper to print advertising
Media Planning & Analysis
 The changes in media
in the 21st century
are proceeding at a
blinding speed
 A revolution in
communications is
under way even in
the last couple of
years
Tactical Considerations
 Availability: Some countries have too few advertising
media and others have too many. In some countries,
certain advertising media are forbidden by government
edict to accept some advertising materials.
 Cost: Media prices are susceptible to negotiation in most
countries.
 Coverage: In large, less developed countries advertising
media such as television may not be geographically
dispersed.
Tactical Considerations
 Lack of Market Data: This makes it difficult to reach specific
target markets.
 Newspapers: Most U.S. cities have just one or two major daily
newspapers, but in many countries, there are so many
newspapers that an advertiser has trouble achieving even
partial market coverage.
 Magazines: The use of foreign national consumer magazines
by international advertisers has been notably low for many
reasons. Few magazines have a large circulation or provide
dependable circulation figures. Technical magazines are used
rather extensively to promote export goods, but paper
shortages cause placement problems.
Exhibit 16.5 Media Penetration in
Selected Countries (% of households)

Source: Cateora et al. (2011: 480)

Tactical Considerations
 Radio and Television: Possibly because of their
inherent entertainment value, radio and television
have become major communications media in
almost all nations.
 Satellite and Cable TV: Advertisers and governments
are both concerned about the impact of satellite TV.
Governments are concerned because they fear
further loss of control over their airwaves and the
spread of “American cultural imperialism”.
Tactical Considerations
 Direct Mail: Direct mail is a viable medium in an
increasing number of countries. It is especially
important when other media are not available.
 The Internet: the Internet has emerged as a viable
medium for advertising and must be included in a
company’s possible media mix. Its use in business-to-
business communications and promotion via catalogs
and product descriptions is rapidly gaining in
popularity.
Exhibit 16.6: Top 10 Websites in
Three Countries (visitors per month)

Source: Cateora et al. (2011: 484)

Tactical Considerations
 Social Media: Social media (such as social
networking, blogs, virtual worlds, and video sharing)
can be powerful marketing tools, but marketers are
just beginning to loosen control and let consumers
interact with brands on their own terms.
Source: Cateora et al. (2011: 488)
Tactical Considerations
 Mobile Phone Applications: As the numbers of
mobile phones continues to explode around the
world, now at 5.9 billion, so do the number of
applications.
 Other Media: Restrictions on traditional media or
their availability cause advertisers to call on lesser
media to solve particular local-country problems. The
cinema is an important medium in many countries,
as are billboards and other forms of outside
advertising.
Campaign Execution and
Advertising Agencies
 Managed by advertising agencies
• Local domestic agency
• Company-owned agency
• Multinational agency with local branches
 Compensation
• Commonly 15 percent throughout the world
• Some companies moving to reward-by-results
Exhibit 16.8: World’s Top 10 Advertising
Agencies

Source: Cateora et al. (2011: 490)

International Control of Advertising:
Broader Issues
 Consumer criticism
 Deceptive
advertising
 Decency and blatant
use of sex
 Self-regulation
 Government
regulations