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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 management global communications decisions global promotions decisions

Global Marketing ManagementGlobal Communications Decisions& Global Promotions Decisions

MKTG 3215-090

Spring 2013

Mrs. Tamara L. Cohen

Class # 11

Global communications decisions

Global Communications Decisions

Global communications decisions1

Preparation for this class:

Read Course Reader #10

Homework #9:

Unconventional communications

Global media planners must think ‘outside the box’. Find out about an unusual media usage in the global marketplace. Write one paragraph.

Global Communications Decisions

Global marketing management global communications decisions global promotions decisions


  • Sales Promotions

  • International Public Relations

  • International Advertising Strategy

  • Regional segmentation

  • Media planning

1 sales promotions in international markets

1. Sales Promotions in International Markets

Sales promotions

= 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.

  • short-term efforts directed to consumer or retailer, to achieve specific objectives e.g.consumer product trial / purchase, encouraging stores to stock product

  • In markets with media limitations, % of promotional budget allocated to sales promotions may have to

  • Product sampling - effective when product is new / small market share

  • P.O.P.

    Product sampling le relais b b s nestl s effective campaign to penetrate french baby market

    Product samplingLe RelaisBébésNestlé’s effective campaign to penetrate French baby market

    2 international public relations

    2.International Public Relations

    Public relations (PR)= creating good relation-ships with popular press & other media

    - helps companies communicate messages to customers, general public, & governmental regulators

    • BP Gulf oil spill, 2010

    • global workplace standards (Nike)

    • building an international profile

    • corporate sponsorships

    Top 10 global marketers


    11 30 global marketers


    • Volkswagen

    • Honda Motor Co.

    • Mars Inc.

    • McDonald’s Corp.

    • Sony Corp.

    • GlaxoSmithKline

    • Deutsche Telekom

    • Kraft Foods

    • Nissan Motors Co.

    • Walt Disney

    • Danone Groupe

    • General Electric

    • Time Warner

    • PSA Peugeot Citroen

    • Pfizer

    • Yum Brands

    • PepsiCo

    • Maxingvest

    • Panasonic Corp.

    • Ferrero

    How much should you spend on advertising or rather how do you spend most effectively

    How much should you spend on Advertising?or rather,How do you spend most effectively?

    • What is typical advertising-to-sales ratio in your field?

    • Is your business built to leverage volume or to leverage margin?

    Advertising % of sales:

    Wal-Mart 0.4%

    Target 2%

    Best Buy (specialty retailer) 3+%

    Macy’s (upscale dep’t store) 5%

    Marketing % of sales:

    • Car industry 2.5 - 3.5%

    • Liquor 5.5 - 7.5 %

    • Packaged goods 4 -10%

    • Service businesses spend more because they are more margin-oriented, especially in growth phase.

    3 international advertising strategy formulation

    3. International Advertising Strategy Formulation

    Of all elements of marketing mix, decisions involving advertising are most often affected by cultural differences.

    • Perform marketing research

    • Specify goals of communication

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

    • Select effective media

    • Compose and secure a budget

    • Execute campaign

    • Evaluate campaign relative to goals specified

    Advertising strategy goals

    Advertising Strategy & Goals

    • Marketing problems

      • require careful marketing research

      • thoughtful & creative advertising campaigns

        • in country, regional, and global markets

    • Increased need for more sophisticated advertising strategies

    • Standardization versus Customization (ad themes)

    • Consumer cultures e.g. convenience, America, youth, internationalism, humanitarianism, environmentalism

    Product attributes benefit of segmentation

    Product Attributes & Benefit of Segmentation

    • Different cultures usually agree on benefit of primary function of product / service

    • Other features & psychological attributes of item can have significant differences

      • cameras

      • yogurt- Dannon / Danone

      • almonds- Blue Diamond

    • No 2 markets will react the same

      • each has its own set of differences

      • each will require different marketing approach & strategy

    4 regional segmentation




    4. Regional Segmentation

    • Pan-European communications media highlights need for more standardized promotional efforts

    • Costs savings with common theme in uniform promotional packaging & design

    • Legal restrictions slowly being eliminated

    • Latin America also becoming attractive regional segment e.g.

    Global advertising the communications process developing an effective message

    Global Advertising & the Communications Process(developing an effective message)

    • Different cultural contexts can increase probability of misunderstandings

    • Effective communication

      • demands existence of “psychological overlap” between sender & receiver

    • NEVER assume that “if it sells well in one country, it will sell in another”

    Creative challenges

    Creative Challenges

    • Language “lost in translation”

    • Color e.g. green = cool in Europe, but green = danger/disease in tropics

    • Timing e.g. seasons & clothing fashions

    • Values e.g. bicycle = recreation in USA, but bicycle = transport in Asia; French’s mustard boycotted in US in 2003 when France didn’t go along with US attack on Iraq

    • Beliefs e.g. rain = refreshing in Europe, but rain = fertility in Africa

    • Humor

    • Tastes

    • Appropriate endorser e.g. who is most recognizable athlete in world?

    • Literacy e.g. using print ads when small % of target market can read

    • Media availability e.g. using Internet when small % of target has access

    • Feedback step of communications (ad testing; noise)

    Global marketing management global communications decisions global promotions decisions

    World’s Highest Paid Athletes in 2012

    Floyd Mayweather

    Manny Pacquiao

    Tiger Woods

    LeBron James

    Roger Federer

    Kobe Bryant

    Phil Mickelson

    David Beckham


    Peyton Manning

    $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

    Legal constraints

    Legal Constraints

    • Comparative advertising - not allowed in Germany, Belgium, Luxembourg; okay in UK, Spain, Portugal; restricted in India, Philippines

    • Advertising of specific products - restrictions on advertising pharmaceuticals, toys, tobacco, liquor

    • Control of advertising on TV

    • Limitations on length & number of commercials

    • Internet services - EU addressing regulation; should TV rules apply?

    • Special taxes that apply to advertising

    Liquorice allsorts language controversy

    Liquorice Allsorts language controversy

    1980s: Government forbade mixing languages in advertising, so banned


    Cultural d i v e r s i t y


    Problems associated with communicating to people in diverse cultures present one of the great creative challenges in advertising.

    • Knowledge of cultural diversity must cover total advertising project

    • Existing perceptions based on tradition & heritages often hard to overcome

    • Subcultures

    • Changing traditions

    5 media planning

    5. Media planning

    • Availability - huge variations among countries

    • Cost - agents & negotiation

    • Coverage - difficult to reach some sectors; lack of info re coverage

    • Lack of market data - accurate data uncertain

    • Newspapers - too many in some countries, too few in others

    • Magazines - few with large circulation; best for technical products

    • Radio & TV - major communications media in most countries

    • Satellite & cable TV - increasing importance



    • Direct mail - especially important when other media not available; beware Chile

    • Internet - evolving; B2B; catalogs; many consumer goods companies have e-stores; direct internet marketing

    • New Social Media - Word-of-Mouth / BUZZ marketing & peer recommendations always key; Internet has advanced pace & reach of Word-of-Mouth; e.g. Papa John’s Pizza blog

    • Other media e.g. cinema; billboards (high illiteracy)

    Giant 3 d murals for flip flop launch bus stop

    Giant 3-D murals for flip flop launch bus stop

    Red Bull car

    Supermarket trolley

    Chocolate billboard

    El toro billboards originally advertising osborne brandy in spain

    El Torobillboards originally advertising Osborne Brandy in Spain

    The original london black taxicab

    The original London Black Taxicab

    Now they come in all colors, though the iconic shape is still the same.

    Guerilla marketing

    Guerilla Marketing

    • specifically for small business & entrepreneur

    • always use combination of marketing methods

    • based on human psychology not experience, etc

    • marketing investments: time, energy, imagination (not $)

    • measure PROFIT not sales

    • create std of excellence with acute focus rather than diversity

    • instead of trying to get new customers, aim for more referrals, more transactions with existing customers, larger transactions

    • forget competition; focus on coop. with other businesses

    • use current technology as tool to empower business

    • VIRAL marketing - through social networks

    • GRASS ROOTS & ASTROTURF (imitate grass roots)


    Global marketing management global communications decisions global promotions decisions

    “Need a new BBQ?”

    Mr. Clean

    Elevator ad

    International advertising

    International Advertising

    Ad firms have become international, like every other business. Advertiser should employ local ad agency or multinational agency with local representation.

    • local modifications

    • cross-cultural communication can be difficult

    • decency standards differ - sex, modesty, Western excess

    • tobacco

    • Myanmar has stringent individual censorship boards

    Keys to success in global communication decisions

    Keys to success in Global Communication Decisions

    • Integrated marketing communications program includes coordinated advertising, sales management, public relations, sales promotions, & direct marketing.

    • Unique legal, media, production limitations in every market

    • Wide variety of media choices, old & new

    • Communication technology (especially Internet) will continue to cause dramatic changes in international advertising & communications industries.



    Global promotions decisions

    Global Promotions Decisions

    Promotions in the marketing mix

    Promotionsin the Marketing Mix

    Promotion = business of COMMUNICATING with customers

    Product benefits must be communicated to customers to generate sales and profits.

    Promotional Mix blends

    • advertising

    • public relations

    • sales promotion

    • selling GLOBAL context

    Selling overseas

    Sellingoverseas …

    … the expatriate experience

    Global marketing management global communications decisions global promotions decisions


    • Relationship marketing

    • Expatriate

    • Virtual Expatriate

    • Repatriation

    • Third-Country Nationals

    • Local Nationals

    • Separation allowance

    Americans abroad

    Americans Abroad

    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.

    Global perspective are international assignments glamorous

    Global PerspectiveAre International Assignments Glamorous?

    • Job security

    • Adjustment to other cultures – family considerations

    • Readjustment when return home – reentry culture shock

    • Will an international assignment really help your career?

    • International sales force may be the ultimate way to: “Think global. Act local.”

    Designing the sales force

    Designing the Sales Force

    • Relationship marketing

    • Decisions about sales personnel:

      • numbers

      • characteristics

      • assignments

    • Different markets affect direct sales & customer approaches

    • Territory allocationdetails after personnel

    • Customer call plansdecisions fixed

    Recruiting marketing sales personnel

    Recruiting marketing & sales personnel

    Largest personnel requirement abroad for most companies is sales force.

    • Expatriates

    • Virtual expatriates

    • Local nationals

    • Third-country nationals

    2012 the 30 most expensive cities to li ve in the worl d as exp ats







    6. Singapore


    Hong Kong



    São Paulo

    Rio de Janeiro








    2012: The 30 Most Expensive Citiesto Live in the WorldasEXPATS








    St. Petersburg









    Global marketing management global communications decisions global promotions decisions

    Best Countries to be an Expat

    • Thailand

    • Saudi Arabia

    • Singapore

    • Egypt

    • Switzerland

    Important factors to expats:

    • health care

    • education

    • quality of life

    • social life

    • income

    Selecting sales marketing personnel

    SelectingSales & Marketing Personnel

    • Management must define expectations

    • Most important requirements

      • maturity

      • emotional stability

      • breadth of knowledge (language skills)

      • positive outlook

      • flexibility

      • cultural empathy

      • energetic & enjoy travel (stamina)

    • Selection mistakes can be costly

    • Manager’s culture affects personnel decisions

    Training for international marketing

    Training forInternational Marketing

    • nature of training program depends on:

      • home culture of sales person

      • culture of business system & foreign market

    • continual training important in foreign markets

    • companies should provide home-office personnel with cross-cultural training

    • Internet makes sales training more efficient

    Personal selling tips

    Personal Selling Tips

    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.

    More personal selling tips

    morePersonal Selling Tips

    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.

    Motivating sales personnel

    Motivatingsales personnel

    • National differences must always be considered when motivating marketing force

    • Individual incentives?

    • Communications important in maintaining high levels of motivation (NOT “out of sight, out of mind”)

    • Company needs to clarify opportunities for growth within firm

    • Fear of being forgotten

    Designing compensation systems for expatriates

    Designing Compensation Systems for Expatriates

    • Fringe benefits – can be 35-60% salary in Europe; tax structure important; e.g. expense accounts in high-tax countries

    • Compensations comparisons between home office & abroad – important what would have received at home office

    • Short-term assignment compensation = separation allowances

    • Using compensation program to recruit, develop, motivate, or retain personnel

    Evaluating controlling sales representatives

    Evaluating & Controlling Sales Representatives

    • US emphasis on individual performance

      • easily be measured by sales revenues generated

    • In many countries evaluation more complex

      • where teamwork favored over individual effort

    • US primary control tool used by sales managers is incentive system

    • In other countries corporate control & frequent interactions with peers & supervisors are means of motivation & control

    Designing compensation systems for a global sales force do

    Designing Compensation Systems for a Global Sales ForceDO:

    • involve representatives from key countries

    • allow local managers to decide mix between base & incentive pay

    • use consistent performance measures

    • allow local countries flexibility in implementations

    • use consistent communication & training themes worldwide

    Designing compensation systems for a global sales force don t

    Designing Compensation Systems for a Global Sales Force DON’T:

    • design plan centrally & dictate to local offices

    • create a similar framework for jobs with different responsibilities

    • require consistency on every performance measure within incentive plan

    • assume cultural differences can be managed through incentive plan

    • proceed without support of senior sales executives worldwide

    Preparing u s personnel for foreign assignments

    Preparing U.S. Personnel for Foreign Assignments

    • Cost of foreign assignments

      • typically 150-400% of annual base salary

      • cost increases if expatriate returns home before completing scheduled assignment (2-4 years)

    • Planning process

      • begin prior to selection of those going abroad

      • include career development after returning home

    Overcoming reluctance to accept a foreign assignment

    Overcoming Reluctance to Accept a Foreign Assignment

    • Concerns for career

      • absence may adversely affect opportunities for advancement

    • Concerns for family

      • children’s education

      • isolation from family & friends

      • proper health care

      • potential for violence

    • Special compensations packages

    Reducing rate of early returns

    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

    Local ombudsman

    - someone experienced in country

    - anticipate challenges & be ready with solutions

    Reducing Rate of Early Returns

    5 steps to successful expatriate repatriation

    5 steps to Successful Expatriate Repatriation

    • Commit to reassigning expatriates to meaningful positions

    • Create mentor program – typically senior exec’s – monitor co. activities, keep up communication, liaise between expat & HQ dept’s

    • Offer written job guarantee stating what company is obligated to do for returning expatriate

    • Keep expatriate in touch with HQ through periodic briefings & HQ visits

    • Prepare expatriate & family for repatriation once return date is set

    Developing cultural awareness

    Developing Cultural Awareness

    • Expatriate failures

      • caused by lack of understanding of cultural differences & effect on management skills

    • Cultural skills

      • can be learned & developed

      • provide individual with ability to relate to different culture even when individual is unfamiliar with details of that particular culture

    Do you have cultural skills

    Do YOU have cultural skills?

    • Do you communicate respect verbally & non-verbally, conveying sincere interest in people & their cultures?

    • Do you tolerate ambiguity & absorb frustrations with cultural differences?

    • Do you display empathy by understanding others’ needs & differences from their points of view?

    • Do you remain non-judgmental about others’ behavior?

    • Do you recognize others’ culture & values as influences on their perceptions, evaluations, & judgments?

    • Can you laugh things off?

    Changing profile of global manager

    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

    Changing Profile of Global Manager

    Foreign language skills

    Foreign-Language Skills

    • Many global companies believe:

      • learning language improves cultural understanding & business relationships

      • to be taken seriously in business community, expatriate must be at least conversational in host language

    • Many companies making stronger efforts to recruit people who are bilingual or multilingual

    Keys to success in global promotions decisions

    Keys to success in Global Promotions Decisions

    • Company’s sales force is front line of marketing organization

    • Recent emphasis on using local personnel operating in own lands highlights importance of adapting managerial techniques to local needs

    • Development of effective marketing organization requires careful recruiting, selecting, training, motivating, & compensating of expatriate personnel & families

    • Most practical method of maintaining efficient international sales & marketing force is careful planning at all stages of career development

    Next class global distribution decisions global pricing decisions

    Next class: Global Distribution Decisions

    Global Pricing Decisions

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