Global Marketing Management Global Communications Decisions & Global Promotions Decisions. MKTG 3215-090 Spring 2013 Mrs. Tamara L. Cohen. Class # 11. Global Communications Decisions. Preparation for this class: Read Course Reader #10. Homework #9 : Unconventional communications
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Global Marketing ManagementGlobal Communications Decisions& Global Promotions Decisions
Mrs. Tamara L. Cohen
Class # 11
Preparation for this class:
Read Course Reader #10
Global media planners must think ‘outside the box’. Find out about an unusual media usage in the global marketplace. Write one paragraph.
= marketing activities that stimulate consumer purchases & improve retailer / middleman effectiveness & cooperation e.g.cents off, in-store demo’s, samples, coupons, gifts, product tie-ins, contests, sponsorships, p.o.p.
Public relations (PR)= creating good relation-ships with popular press & other media
- helps companies communicate messages to customers, general public, & governmental regulators
Advertising % of sales:
Best Buy (specialty retailer) 3+%
Macy’s (upscale dep’t store) 5%
Marketing % of sales:
Of all elements of marketing mix, decisions involving advertising are most often affected by cultural differences.
World’s Highest Paid Athletes in 2012
$85 m BOXING
$62 m BOXING
$59 m GOLF
$53 m BASKETBALL
$53 m TENNIS
$52 m BASKETBALL
$48 m GOLF
$46 m SOCCER
$43 m SOCCER
$42 m FOOTBALL
1980s: Government forbade mixing languages in advertising, so banned
Problems associated with communicating to people in diverse cultures present one of the great creative challenges in advertising.
Red Bull car
Now they come in all colors, though the iconic shape is still the same.
“Need a new BBQ?”
Ad firms have become international, like every other business. Advertiser should employ local ad agency or multinational agency with local representation.
Promotion = business of COMMUNICATING with customers
Product benefits must be communicated to customers to generate sales and profits.
Promotional Mix blends
… the expatriate experience
Number of Americans living abroad has steadily grown over past decade, as more people have become interested in living abroad, exploring another language and culture, or finding an overseas job.
According to recent estimates by the U.S. State Department, there are 3 - 6 million Americans living overseas.
Largest personnel requirement abroad for most companies is sales force.
Rio de Janeiro
Best Countries to be an Expat
Important factors to expats:
BELGUIM be able to identify decision makers. Flanders (Dutch) group decisions common; Wallonia (French) high level exec’s have final say
CHINA expect to continue negotiations after deal is signed. Signing contract is just beginning of business relationship. Both sides expected to continue working together afterwards.
COLOMBIA business counterparts want personal relationship, strong friendship. Be sure to keep same sales representatives throughout negotiation or risk losing deal.
GERMANY be prepared with data to support sales proposition. German businessmen unimpressed with flashy presentation, so keep materials serious & detailed, no exaggeration.
INDIA maintain flexible schedule to accommodate casual punctuality. Rigid hierarchy dictates decisions made only by highest level boss.
MEXICO when planning meetings, breakfast / lunch preferred. Take time to cultivate relationships with business contacts - relationships more important than professional experience.
PERU relate to individuals not corporate entities. Establish personal rapport. Maintain same sales rep’s throughout negotiations.
RUSSIA 1st meeting is formality. Russian counterparts use this time to judge credibility. Be warm & friendly.
SCOTLAND people soft-spoken & private. Takes time to build relationships.
SOUTH KOREA status important. Make sure business card indicates title. Don’t send representative to meet Korean exec of higher status – could be viewed as disrespectful.
THAILAND emphasizes non-conflict. Don’t make assertive demands in sales pitch.
Evaluation of employee’s family
75% of families sent abroad experience adjustment problems with children or marital discord
Cross-cultural training for families as well as employee
- someone experienced in country
- anticipate challenges & be ready with solutions
Fewer companies today limit their search for senior-level executive talent to home countriese.g. Indira Nooyi = head of PepsiCo; Richard Gnodde = co-CEO Goldman Sachs Int’l
Some companies believe in international experience
early in person’s career
integral part of entry-level development programs
Many companies committed to making foreign experience an integrated part of a successful corporate career
Next class: Global Distribution Decisions
Global Pricing Decisions