Global Marketing Management Global Communications Decisions

1. Global Marketing Management Global Communications Decisions MKTG 3215-090 Fall 2011 Mrs. Tamara L. Cohen

2. Global Communications Decisions 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. http://www.youtube.com/watch?v=eNqosHRbWogOpera at the heart of Tel Aviv's Dizengoff Centre? Believe it or not! This �unconventional communication� happened in summer, 2010. Some 30 singers from the Israel Philharmonic Orchestra, mingling with the crowd in the Friday morning Food Market at Dizengoff Centre, all at once started singing a much-loved chorus piece from Verdi's Il Travatore. Flash mob http://www.youtube.com/watch?v=eNqosHRbWogOpera at the heart of Tel Aviv's Dizengoff Centre? Believe it or not! This �unconventional communication� happened in summer, 2010. Some 30 singers from the Israel Philharmonic Orchestra, mingling with the crowd in the Friday morning Food Market at Dizengoff Centre, all at once started singing a much-loved chorus piece from Verdi's Il Travatore. Flash mob

3. Sales Promotions International Public Relations International Advertising Strategy formulation Regional segmentation Media planning Sales Promotions = marketing activities to augment sales & boost retailer/middleman performance International Public Relations = effort made by companies to create positive relationships with press & media, & to communicate messages to publics, including general public, customers, government regulators International Advertising Strategy formulation = research, set goals, develop message, select media, budget, execute campaign, evaluate. Regional segmentation to achieve economies of scale across markets with common features Media planning - consider major media & less common vehicles - blend best combination for individual country�s/region�s culture & campaign Sales Promotions = marketing activities to augment sales & boost retailer/middleman performance International Public Relations = effort made by companies to create positive relationships with press & media, & to communicate messages to publics, including general public, customers, government regulators International Advertising Strategy formulation = research, set goals, develop message, select media, budget, execute campaign, evaluate. Regional segmentation to achieve economies of scale across markets with common features Media planning - consider major media & less common vehicles - blend best combination for individual country�s/region�s culture & campaign

4. 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 Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. e.g. cents off, in-store demonstrations, samples, coupons, gifts, product tie-ins, contests, sweepstakes, sponsorship of special events such as concerts and fairs (even donut parades), and point-of-purchase (P.O.P.) displays are types of sales promotion devices designed to supplement advertising and personal selling in the promotional mix. Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase, consumer introduction to the store, gaining retail point-of-purchase displays, encouraging stores to stock the product, and supporting and augmenting advertising and personal sales efforts. In markets where the consumer is hard to reach because of media limitations, % of the promotional budget allocated to sales promotions may have to be increased. In some developing countries, sales promotions constitute the major portion of the promotional effort in rural and less-accessible parts of the market. e.g. Costco Road ShowsSales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. e.g. cents off, in-store demonstrations, samples, coupons, gifts, product tie-ins, contests, sweepstakes, sponsorship of special events such as concerts and fairs (even donut parades), and point-of-purchase (P.O.P.) displays are types of sales promotion devices designed to supplement advertising and personal selling in the promotional mix. Sales promotions are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase, consumer introduction to the store, gaining retail point-of-purchase displays, encouraging stores to stock the product, and supporting and augmenting advertising and personal sales efforts. In markets where the consumer is hard to reach because of media limitations, % of the promotional budget allocated to sales promotions may have to be increased. In some developing countries, sales promotions constitute the major portion of the promotional effort in rural and less-accessible parts of the market. e.g. Costco Road Shows

5. Product sampling Le Relais B�b�s Nestl�s effective campaign to penetrate French baby market An especially effective promotional tool when the product concept is new or has a very small market share is product sampling. e.g. Nestl� versus then-market leader Gerber in France: In summer vacations, many French families take road trips, and stay at camp grounds. Nestl� provided rest-stop structures, Le Relais B�b�s, where babies can be changed and fed. Each summer, 64 hostesses at these rest stops welcome 120,000 baby visits, dispense 600,000 baby food samples. There were free disposable diapers, use of changing table and high chairs for babies to sit in while being fed. Nestle bought Gerber in 2007 for $5.5 billion. I wonder if they still do the summer rest stop program. An especially effective promotional tool when the product concept is new or has a very small market share is product sampling. e.g. Nestl� versus then-market leader Gerber in France: In summer vacations, many French families take road trips, and stay at camp grounds. Nestl� provided rest-stop structures, Le Relais B�b�s, where babies can be changed and fed. Each summer, 64 hostesses at these rest stops welcome 120,000 baby visits, dispense 600,000 baby food samples. There were free disposable diapers, use of changing table and high chairs for babies to sit in while being fed. Nestle bought Gerber in 2007 for $5.5 billion. I wonder if they still do the summer rest stop program.

6. 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 Creating good relationships with the popular press and other media to help companies communicate messages to their publics�customers, the general public, and governmental regulators�is the role of public relations (PR). The job consists of not only encouraging the press to cover positive stories about companies, but also of managing unfavorable rumors, stories, and events. The distinction between advertising and public relations has become an issue now considered by the United States Supreme Court. The importance of public relations in international marketing is well demonstrated by the Bridgestone/Firestone Tires safety recall disaster of 2000. Public relations firms� billings in the international arena have been growing at double-digit rates for some years. Handling such international PR problems as global workplace standards and product safety recalls has become big business for companies serving corporate clients such as Mattel Toys, McDonald�s, and of course Nike. New companies need public relations consultation for �building an international profile,� as the marketing manager of VDSL Systems explained when hiring MCC, a prominent British firm. Corporate sponsorships might be classified as an aspect of public relations, although their connections to advertising are also manifest. The tobacco companies have been particularly creative at using sports event sponsorships in avoiding countries� advertising regulations associated with more traditional media. Creating good relationships with the popular press and other media to help companies communicate messages to their publics�customers, the general public, and governmental regulators�is the role of public relations (PR). The job consists of not only encouraging the press to cover positive stories about companies, but also of managing unfavorable rumors, stories, and events. The distinction between advertising and public relations has become an issue now considered by the United States Supreme Court. The importance of public relations in international marketing is well demonstrated by the Bridgestone/Firestone Tires safety recall disaster of 2000. Public relations firms� billings in the international arena have been growing at double-digit rates for some years. Handling such international PR problems as global workplace standards and product safety recalls has become big business for companies serving corporate clients such as Mattel Toys, McDonald�s, and of course Nike. New companies need public relations consultation for �building an international profile,� as the marketing manager of VDSL Systems explained when hiring MCC, a prominent British firm. Corporate sponsorships might be classified as an aspect of public relations, although their connections to advertising are also manifest. The tobacco companies have been particularly creative at using sports event sponsorships in avoiding countries� advertising regulations associated with more traditional media.

7. TOP 10 GLOBAL MARKETERS Advertising Age - Laurel Wentz - Dec.8, 2008: �If anything is certain in a turbulent economy, it�s that Procter & Gamble will continue to be the world�s biggest global advertiser. The company�s global spending is almost twice as much as No. 2 Unilever�s�$9.36 billion compared with $5.3 billion in 2007.� Measured media in US = magazines + newspapers + outdoor + spot TV + network TV + syndicated TV + cable TV networks + local radio + national spot radio + Spanish-language media + internet Reckitt Benckiser is the world's largest producer of household products and a major producer of consumer healthcare and personal products. Its brands include Dettol (the world's largest-selling antiseptic), Air Wick (the world's second largest-selling air freshener), Durex. Reckitts has operations in > 60 countries and its products are sold in > 180 countries. Advertising Age - Laurel Wentz - Dec.8, 2008: �If anything is certain in a turbulent economy, it�s that Procter & Gamble will continue to be the world�s biggest global advertiser. The company�s global spending is almost twice as much as No. 2 Unilever�s�$9.36 billion compared with $5.3 billion in 2007.� Measured media in US = magazines + newspapers + outdoor + spot TV + network TV + syndicated TV + cable TV networks + local radio + national spot radio + Spanish-language media + internet Reckitt Benckiser is the world's largest producer of household products and a major producer of consumer healthcare and personal products. Its brands include Dettol (the world's largest-selling antiseptic), Air Wick (the world's second largest-selling air freshener), Durex. Reckitts has operations in > 60 countries and its products are sold in > 180 countries.

8. # 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 Advertising Age, Dec. 2010 Notice that these names are all consumer companies. Maxingvest is a German company with significant interests in coffee roasting markets, and skin & body care markets.Advertising Age, Dec. 2010 Notice that these names are all consumer companies. Maxingvest is a German company with significant interests in coffee roasting markets, and skin & body care markets.

9. Source: ZenithOptimedia's Advertising Expenditure Forecasts, December 2010. Its forecast: 4.6% increase in worldwide spending in 2011, vs. 4.9% gain in 2010 and 10.6% drop in 2009. More info: ZenithOptimedia.com. Numbers rounded. Dollar figures for major media spending in 2010 for all advertisers (including Global 100), followed by percent change vs. 2009 spending. Source: ZenithOptimedia's Advertising Expenditure Forecasts, December 2010. Its forecast: 4.6% increase in worldwide spending in 2011, vs. 4.9% gain in 2010 and 10.6% drop in 2009. More info: ZenithOptimedia.com. Numbers rounded. Dollar figures for major media spending in 2010 for all advertisers (including Global 100), followed by percent change vs. 2009 spending.

10. 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. Business Week, Feb.2009 http://www.businessweek.com/smallbiz/content/feb2009/sb20090210_165498.htm Steve McKee is president of McKee Wallwork Cleveland, a marketing consulting firm that specializes in helping struggling companies rekindle growth. Business Week, Feb.2009 http://www.businessweek.com/smallbiz/content/feb2009/sb20090210_165498.htm Steve McKee is president of McKee Wallwork Cleveland, a marketing consulting firm that specializes in helping struggling companies rekindle growth.

11. 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 Reconciling an international advertising campaign with the cultural uniqueness of markets is the challenge confronting the international or global marketer. The basic framework and concepts of international advertising are essentially the same wherever employed. Reconciling an international advertising campaign with the cultural uniqueness of markets is the challenge confronting the international or global marketer. The basic framework and concepts of international advertising are essentially the same wherever employed.

12. 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 Increased costs, problems of coordinating advertising programs in multiple countries, and a desire for a broader company or product image have caused multinational companies (MNCs) to seek greater control and efficiency without sacrificing local responsiveness. More and more multinational companies can be seen to be managing the balance between standardization of advertising themes and customization. Many companies are using market-segment strategies that ignore national boundaries�business buyers or high-income consumers across the globe are often targeted, for example. Others are proposing newer global market segments defined by �consumer cultures� related to shared sets of consumption-related symbols, e.g. convenience, youth, America, internationalism, humanitarianism, environmentalism. Increased costs, problems of coordinating advertising programs in multiple countries, and a desire for a broader company or product image have caused multinational companies (MNCs) to seek greater control and efficiency without sacrificing local responsiveness. More and more multinational companies can be seen to be managing the balance between standardization of advertising themes and customization. Many companies are using market-segment strategies that ignore national boundaries�business buyers or high-income consumers across the globe are often targeted, for example. Others are proposing newer global market segments defined by �consumer cultures� related to shared sets of consumption-related symbols, e.g. convenience, youth, America, internationalism, humanitarianism, environmentalism.

13. 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 Almonds - Blue Diamond No 2 markets will react the same each has its own set of differences each will require different marketing approach & strategy A market offering really is a bundle of satisfactions the buyer receives. This package of satisfactions, or utilities, includes the primary function of the product or service along with many other benefits imputed by the values and customs of the culture. Different cultures often seek the same value or benefits from the primary function of a product; e.g. the ability of an car to get from point A to point B, a camera to take a picture, or a wristwatch to tell time. But while usually agreeing on the benefit of the primary function of a product, other features and psychological attributes of the item can have significant differences. Consider the different market-perceived needs for a camera. In the USA, excellent pictures with easy, foolproof operation are expected by most of the market; in Germany and Japan, a camera must take excellent pictures, but the camera must also be state of the art in design. In Africa, where penetration of cameras is < 20% of households, the concept of picture taking must be sold. In all 3 developed country markets, excellent pictures are expected (i.e., the primary function of a camera is demanded), but the additional utility or satisfaction derived from a camera differs among cultures. Dannon�s brand of yogurt promotes itself as the brand that understands the relationship between health and food, but it communicates the message differently, depending on the market. In the United States, where Dannon (Danone) yogurt is seen as a healthy, vibrant food, the brand celebrates its indulgent side. In France, however, Dannon was seen as too pleasure oriented. Therefore, Dannon created the Institute of Health, a real research center dedicated to food and education. The end result is the same message but communicated differently�a careful balance of health and pleasure. In Japan, the Blue Diamond brand of almonds was an unknown commodity until Blue Diamond launched its campaign of exotic new almond-based products that catered to local tastes. Such things as almond tofu, almond miso soup, and Clamond�a nutritional snack concocted from a mixture of dried small sardines and slivered almonds�were featured in magazine ads and in promotional cooking demonstrations. Blue Diamond assumes that no two markets will react the same, that each has its own set of differences�be they �cultural, religious, ethnic, dietary, or otherwise��and that each will require a different marketing approach, a different strategy. The wisdom of adapting its product advertising for each market is difficult to question since two-thirds of all Blue Diamond�s sales are outside the USA.A market offering really is a bundle of satisfactions the buyer receives. This package of satisfactions, or utilities, includes the primary function of the product or service along with many other benefits imputed by the values and customs of the culture. Different cultures often seek the same value or benefits from the primary function of a product; e.g. the ability of an car to get from point A to point B, a camera to take a picture, or a wristwatch to tell time. But while usually agreeing on the benefit of the primary function of a product, other features and psychological attributes of the item can have significant differences. Consider the different market-perceived needs for a camera. In the USA, excellent pictures with easy, foolproof operation are expected by most of the market; in Germany and Japan, a camera must take excellent pictures, but the camera must also be state of the art in design. In Africa, where penetration of cameras is < 20% of households, the concept of picture taking must be sold. In all 3 developed country markets, excellent pictures are expected (i.e., the primary function of a camera is demanded), but the additional utility or satisfaction derived from a camera differs among cultures. Dannon�s brand of yogurt promotes itself as the brand that understands the relationship between health and food, but it communicates the message differently, depending on the market. In the United States, where Dannon (Danone) yogurt is seen as a healthy, vibrant food, the brand celebrates its indulgent side. In France, however, Dannon was seen as too pleasure oriented. Therefore, Dannon created the Institute of Health, a real research center dedicated to food and education. The end result is the same message but communicated differently�a careful balance of health and pleasure. In Japan, the Blue Diamond brand of almonds was an unknown commodity until Blue Diamond launched its campaign of exotic new almond-based products that catered to local tastes. Such things as almond tofu, almond miso soup, and Clamond�a nutritional snack concocted from a mixture of dried small sardines and slivered almonds�were featured in magazine ads and in promotional cooking demonstrations. Blue Diamond assumes that no two markets will react the same, that each has its own set of differences�be they �cultural, religious, ethnic, dietary, or otherwise��and that each will require a different marketing approach, a different strategy. The wisdom of adapting its product advertising for each market is difficult to question since two-thirds of all Blue Diamond�s sales are outside the USA.

14. 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. 4. Regional segmentation The emergence of pan-European communications media is enticing many companies to push the balance toward more standardized promotional efforts. As media coverage across Europe expands, it will become more common for markets to be exposed to multiple messages and brands of the same product. To avoid the confusion that results when a market is exposed to multiple brand names and advertising messages, as well as for reasons of efficiency, companies will strive for harmony in brand names, advertising, and promotions across Europe. An important reason for uniform promotional packaging across country markets is cost savings. Along with changes in behavior patterns, legal restrictions are slowly being eliminated, and viable market segments across country markets are emerging. Although Europe will never be a single homogeneous market for every product, that does not mean that companies should shun the idea of developing Europe-wide promotional programs. Televisa, Mexican media group � owns TV & radio stations, magazines, 4 soccer teams, record labels, airline until recently sold; biggest media company in Spanish-speaking worldThe emergence of pan-European communications media is enticing many companies to push the balance toward more standardized promotional efforts. As media coverage across Europe expands, it will become more common for markets to be exposed to multiple messages and brands of the same product. To avoid the confusion that results when a market is exposed to multiple brand names and advertising messages, as well as for reasons of efficiency, companies will strive for harmony in brand names, advertising, and promotions across Europe. An important reason for uniform promotional packaging across country markets is cost savings. Along with changes in behavior patterns, legal restrictions are slowly being eliminated, and viable market segments across country markets are emerging. Although Europe will never be a single homogeneous market for every product, that does not mean that companies should shun the idea of developing Europe-wide promotional programs. Televisa, Mexican media group � owns TV & radio stations, magazines, 4 soccer teams, record labels, airline until recently sold; biggest media company in Spanish-speaking world

15. Global Advertising & the Communications Process(developing 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� Unfortunately, the process is not as simple as just sending a message via a medium to a receiver and being certain that the intended message sent is the same one perceived by the receiver. If not properly considered, the different cultural contexts can increase the probability of misunderstandings. Research in the area suggests that effective communication demands the existence of a �psychological overlap� between the sender and the receiver; otherwise, a message falling outside the receiver�s perceptual field may transmit an unintended meaning. It is in this area that even the most experienced companies make blunders. The product message to be conveyed should reflect the needs and wants of the target market; however, often the actual market needs and the marketer�s perception of them do not coincide. This is especially true when the marketer relies more on the self-reference criterion than on effective research. It can never be assumed that �if it sells well in one country, it will sell in another.� Unfortunately, the process is not as simple as just sending a message via a medium to a receiver and being certain that the intended message sent is the same one perceived by the receiver. If not properly considered, the different cultural contexts can increase the probability of misunderstandings. Research in the area suggests that effective communication demands the existence of a �psychological overlap� between the sender and the receiver; otherwise, a message falling outside the receiver�s perceptual field may transmit an unintended meaning. It is in this area that even the most experienced companies make blunders. The product message to be conveyed should reflect the needs and wants of the target market; however, often the actual market needs and the marketer�s perception of them do not coincide. This is especially true when the marketer relies more on the self-reference criterion than on effective research. It can never be assumed that �if it sells well in one country, it will sell in another.�

16. 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) �Lost in translation�: Pepsi�s �Come Alive� translated to �Come out of the grave� Chevrolet�s brand name for Nova (�new star�) model translated to No Va! In Spanish, meaning �it doesn�t go� �Hydraulic ram� translated as �wet sheep� Colgate Palmolive�s �Cue� toothpaste translated as pornographic word.�Lost in translation�: Pepsi�s �Come Alive� translated to �Come out of the grave� Chevrolet�s brand name for Nova (�new star�) model translated to No Va! In Spanish, meaning �it doesn�t go� �Hydraulic ram� translated as �wet sheep� Colgate Palmolive�s �Cue� toothpaste translated as pornographic word.

17. Michael Phelps' agent, Peter Carlisle: "What is the value of eight golds in Beijing before a prime-time audience in the U.S? I'd say $100 million over the course of his lifetime.� Tiger Woods Michael Jordan Ronaldo Michael Schumacher, Formula 1 racecar driver - makes more money than any other sports figure; dominates sport most watched on TV globallyMichael Phelps' agent, Peter Carlisle: "What is the value of eight golds in Beijing before a prime-time audience in the U.S? I'd say $100 million over the course of his lifetime.� Tiger Woods Michael Jordan Ronaldo Michael Schumacher, Formula 1 racecar driver - makes more money than any other sports figure; dominates sport most watched on TV globally

18. 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 (Canada); 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 Laws that control comparative advertising vary around the world. In Germany, it is illegal to use any comparative terminology; you can be sued by a competitor if you do. Belgium and Luxembourg explicitly ban comparative advertising, whereas it is clearly authorized in the United Kingdom, Ireland, Spain, and Portugal. Comparative advertising is heavily regulated in Asia as well. A variety of restrictions on advertising of specific products exist around the world. Advertising of pharmaceuticals is restricted in many countries. Advertising on TV is strictly controlled in many countries - no subliminal advertising in Russia; all commercials on Malaysian TV must be made in Malaysia. China is relaxing some regulations while strengthening others. Some country laws against accessibility to broadcast media seem to be softening. Australia ended a ban on cable TV spots, and Malaysia is considering changing the rules to allow foreign commercials to air on newly legalized satellite signals Limitations on length & number of commercials - 32 minutes per day in Kuwait; no ads on BBC in UK, < 7 minutes/hour on UK commercial stations; Germany TV ads must be 20 minutes apart & <12 minutes/hour Companies that rely on TV infomercials and TV shopping are restricted by the limitations placed on the length and number of TV commercials permitted when their programs are classified as advertisements. Internet services are especially vulnerable as EU member states decide which area of regulation should apply to these services. Barriers to pan-European services will arise if some member states opt to apply TV-broadcasting rules to the Internet while other countries apply print-media advertising rules. Some countries have special taxes that apply to advertising, which might restrict creative freedom in media selection. e.g. Austria has multiple levels of ad taxation depending on states, municipalities and ad medium. Laws that control comparative advertising vary around the world. In Germany, it is illegal to use any comparative terminology; you can be sued by a competitor if you do. Belgium and Luxembourg explicitly ban comparative advertising, whereas it is clearly authorized in the United Kingdom, Ireland, Spain, and Portugal. Comparative advertising is heavily regulated in Asia as well. A variety of restrictions on advertising of specific products exist around the world. Advertising of pharmaceuticals is restricted in many countries. Advertising on TV is strictly controlled in many countries - no subliminal advertising in Russia; all commercials on Malaysian TV must be made in Malaysia. China is relaxing some regulations while strengthening others. Some country laws against accessibility to broadcast media seem to be softening. Australia ended a ban on cable TV spots, and Malaysia is considering changing the rules to allow foreign commercials to air on newly legalized satellite signals Limitations on length & number of commercials - 32 minutes per day in Kuwait; no ads on BBC in UK, < 7 minutes/hour on UK commercial stations; Germany TV ads must be 20 minutes apart & <12 minutes/hour Companies that rely on TV infomercials and TV shopping are restricted by the limitations placed on the length and number of TV commercials permitted when their programs are classified as advertisements. Internet services are especially vulnerable as EU member states decide which area of regulation should apply to these services. Barriers to pan-European services will arise if some member states opt to apply TV-broadcasting rules to the Internet while other countries apply print-media advertising rules. Some countries have special taxes that apply to advertising, which might restrict creative freedom in media selection. e.g. Austria has multiple levels of ad taxation depending on states, municipalities and ad medium.

19. Liquorice Allsorts language controversy 1980s: Government forbade mixing languages in advertising, so banned �LEKKERISH LIQUORICE� Wikipedia: Liquorice allsorts (also spelled licorice allsorts) consist of a variety of liquorice candies sold as a mixture. These confections are made of liquorice, sugar, coconut, anise, fruit flavorings, and gelatin. Allsorts are produced by many companies around the world today, and are most popular in Britain, continental Europe, and North America. South African confectionery giant Beacon produces substantial quantities of the product Language is one of the major barriers to effective communication through advertising. The problem involves different languages of different countries, different languages or dialects within one country, and the subtler problems of linguistic nuance, argument style, vernacular, and even accent. For many countries language is a matter of cultural pride and preservation�France is the best example, of course. Incautious handling of language has created problems in all countries. Language raises innumerable barriers that impede effective, idiomatic translation and thereby hamper communication. This is especially apparent in advertising materials and on the Internet. In addition to translation challenges, low literacy in many countries seriously impedes communications and calls for greater creativity and use of verbal media. Multiple languages within a country or advertising area pose another problem for the advertiser. Even a tiny country such as Switzerland has four separate languages. Advertising communications must be perfect, and linguistic differences at all levels cause problems. In-country testing with the target consumer group is the only way to avoid such problems. Wikipedia: Liquorice allsorts (also spelled licorice allsorts) consist of a variety of liquorice candies sold as a mixture. These confections are made of liquorice, sugar, coconut, anise, fruit flavorings, and gelatin. Allsorts are produced by many companies around the world today, and are most popular in Britain, continental Europe, and North America. South African confectionery giant Beacon produces substantial quantities of the product Language is one of the major barriers to effective communication through advertising. The problem involves different languages of different countries, different languages or dialects within one country, and the subtler problems of linguistic nuance, argument style, vernacular, and even accent. For many countries language is a matter of cultural pride and preservation�France is the best example, of course. Incautious handling of language has created problems in all countries. Language raises innumerable barriers that impede effective, idiomatic translation and thereby hamper communication. This is especially apparent in advertising materials and on the Internet. In addition to translation challenges, low literacy in many countries seriously impedes communications and calls for greater creativity and use of verbal media. Multiple languages within a country or advertising area pose another problem for the advertiser. Even a tiny country such as Switzerland has four separate languages. Advertising communications must be perfect, and linguistic differences at all levels cause problems. In-country testing with the target consumer group is the only way to avoid such problems.

20. Cultural Diversity Problems associated with communicating to people in diverse cultures present one of the great creative challenges in advertising. Knowledge of cultural diversity must encompass total advertising project Existing perceptions based on tradition & heritages often hard to overcome Subcultures Changing traditions The problems associated with communicating to people in diverse cultures present one of the great creative challenges in advertising. Knowledge of cultural diversity must encompass the total advertising project. Existing perceptions based on tradition and heritages are often hard to overcome. If the perceptual framework is different, perception of the message itself differs. General Mills had two problems with one product. When it introduced instant cake mixes in the United States and England, it had the problem of overcoming the homemaker�s guilt feelings. When General Mills introduced instant cake mixes in Japan, the problem changed. Cakes were not commonly eaten in Japan, so there was no guilt feeling, but the homemaker was concerned about failing. She wanted the cake mix as complete as possible. In testing TV commercials promoting the notion that making a cake is as easy as making rice, General Mills learned it was offending the Japanese homemaker, who believes the preparation of rice requires great skill. In addition to concerns with differences among nations, advertisers find subcultures within a country require attention as well. People in Hong Kong have 10 different patterns of breakfast eating. The youth of a country almost always constitute a different consuming culture from the older people, and urban dwellers differ significantly from rural dwellers. Besides these differences, there is the problem of changing traditions. In all countries, people of all ages, urban or rural, cling to their heritage to a certain degree but are willing to change some areas of behavior. e.g. tea drinking in Japan - now young �hip� Japanese drink coffee, symbol of sophistication. Thanks Starbucks!The problems associated with communicating to people in diverse cultures present one of the great creative challenges in advertising. Knowledge of cultural diversity must encompass the total advertising project. Existing perceptions based on tradition and heritages are often hard to overcome. If the perceptual framework is different, perception of the message itself differs. General Mills had two problems with one product. When it introduced instant cake mixes in the United States and England, it had the problem of overcoming the homemaker�s guilt feelings. When General Mills introduced instant cake mixes in Japan, the problem changed. Cakes were not commonly eaten in Japan, so there was no guilt feeling, but the homemaker was concerned about failing. She wanted the cake mix as complete as possible. In testing TV commercials promoting the notion that making a cake is as easy as making rice, General Mills learned it was offending the Japanese homemaker, who believes the preparation of rice requires great skill. In addition to concerns with differences among nations, advertisers find subcultures within a country require attention as well. People in Hong Kong have 10 different patterns of breakfast eating. The youth of a country almost always constitute a different consuming culture from the older people, and urban dwellers differ significantly from rural dwellers. Besides these differences, there is the problem of changing traditions. In all countries, people of all ages, urban or rural, cling to their heritage to a certain degree but are willing to change some areas of behavior. e.g. tea drinking in Japan - now young �hip� Japanese drink coffee, symbol of sophistication. Thanks Starbucks!

21. 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 5. Media planning Although nearly every sizable nation essentially has the same kinds of media, a number of specific considerations, problems, and differences are encountered from one nation to another. In international advertising, an advertiser must consider the availability, cost, coverage, and appropriateness of the media. Availability � One of the contrasts of international advertising is that 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. Agency space discounts are often split with the client to bring down the cost of media. The advertiser may find that the cost of reaching a prospect through advertising depends on the agent�s bargaining ability. The per-contract cost varies widely from country to country. Coverage � Closely akin to the cost dilemma is the problem of coverage. Two points are particularly important: One relates to the difficulty of reaching certain sectors of the population with advertising and the other to the lack of information on coverage. Lack of Market Data � Verification of circulation or coverage figures is a difficult task. Even though many countries have organizations similar to the Audit Bureau of Circulation in the U.S., accurate circulation and audience data are not assured. Newspapers � The newspaper industry is suffering from lack of competition in some countries and choking because of it in others. 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, as with newspapers, paper shortages cause placement problems. Media planners are often faced with the largest magazines accepting up to twice as many advertisements as they have space to run them in�then the magazines decide what advertisements will go in just before going to press by means of a raffle. Radio and TV � Possibly because of their inherent entertainment value, radio and television have become major communications media in most nations. TV and radio advertising availability varies among countries. 3 patterns are discernible: competitive commercial broadcasting, commercial monopolies, and noncommercial broadcasting. Live commercials are not permitted in some countries; in still others, commercial stations must compete for audiences against the government�s noncommercial broadcasting network. Satellite and Cable TV � Of increasing importance in TV advertising is the growth and development of satellite TV broadcasting. Although nearly every sizable nation essentially has the same kinds of media, a number of specific considerations, problems, and differences are encountered from one nation to another. In international advertising, an advertiser must consider the availability, cost, coverage, and appropriateness of the media. Availability � One of the contrasts of international advertising is that 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. Agency space discounts are often split with the client to bring down the cost of media. The advertiser may find that the cost of reaching a prospect through advertising depends on the agent�s bargaining ability. The per-contract cost varies widely from country to country. Coverage � Closely akin to the cost dilemma is the problem of coverage. Two points are particularly important: One relates to the difficulty of reaching certain sectors of the population with advertising and the other to the lack of information on coverage. Lack of Market Data � Verification of circulation or coverage figures is a difficult task. Even though many countries have organizations similar to the Audit Bureau of Circulation in the U.S., accurate circulation and audience data are not assured. Newspapers � The newspaper industry is suffering from lack of competition in some countries and choking because of it in others. 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, as with newspapers, paper shortages cause placement problems. Media planners are often faced with the largest magazines accepting up to twice as many advertisements as they have space to run them in�then the magazines decide what advertisements will go in just before going to press by means of a raffle. Radio and TV � Possibly because of their inherent entertainment value, radio and television have become major communications media in most nations. TV and radio advertising availability varies among countries. 3 patterns are discernible: competitive commercial broadcasting, commercial monopolies, and noncommercial broadcasting. Live commercials are not permitted in some countries; in still others, commercial stations must compete for audiences against the government�s noncommercial broadcasting network. Satellite and Cable TV � Of increasing importance in TV advertising is the growth and development of satellite TV broadcasting.

22. Media 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) Direct mail � A viable medium in an increasing number of countries, it is especially important when other media are not available. As is often the case in international marketing, even such a fundamental medium is subject to some odd and novel quirks. For example, in Chile, direct mail is virtually eliminated as an effective medium because the sender pays only part of the mailing fee; the letter carrier must collect additional postage for every item delivered. (Mail carriers negotiate target monthly fees with each customer individually.) Obviously, advertisers cannot afford to alienate customers by forcing them to pay for unsolicited advertisements. The Internet � Though still evolving, the Internet has emerged as a viable medium for advertising and should be included as one of the media 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. Although limited in its penetration of households globally, the Internet is being used by a growing number of companies as an advertising medium for consumer goods. Many consumer goods companies have e-stores, and others use the Internet as an advertising medium to stimulate sales in retail outlets. The New Social Media � Word-of-Mouth and peer recommendations have always been key influencers of brand choice, but the power of the internet has changed the pace and reach of Word-of-Mouth. Social media can be a powerful marketing tool. 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. Billboards are especially useful in countries with high illiteracy rates. Mobile ad for Tagamet; Burger King hot air balloon; Sandwich board (Torture Museum ad) Direct mail � A viable medium in an increasing number of countries, it is especially important when other media are not available. As is often the case in international marketing, even such a fundamental medium is subject to some odd and novel quirks. For example, in Chile, direct mail is virtually eliminated as an effective medium because the sender pays only part of the mailing fee; the letter carrier must collect additional postage for every item delivered. (Mail carriers negotiate target monthly fees with each customer individually.) Obviously, advertisers cannot afford to alienate customers by forcing them to pay for unsolicited advertisements. The Internet � Though still evolving, the Internet has emerged as a viable medium for advertising and should be included as one of the media 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. Although limited in its penetration of households globally, the Internet is being used by a growing number of companies as an advertising medium for consumer goods. Many consumer goods companies have e-stores, and others use the Internet as an advertising medium to stimulate sales in retail outlets. The New Social Media � Word-of-Mouth and peer recommendations have always been key influencers of brand choice, but the power of the internet has changed the pace and reach of Word-of-Mouth. Social media can be a powerful marketing tool. 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. Billboards are especially useful in countries with high illiteracy rates. Mobile ad for Tagamet; Burger King hot air balloon; Sandwich board (Torture Museum ad)

23. Giant 3-D murals for flip flop launch bus  stop Red Bull car Supermarket trolley June 2007: For the U.S. launch of its flip flops, Havaianas (Brazilian flip flops) commissioned giant wall murals on the sides of buildings all over Manhattan. April 2007: The world�s 1st chocolate billboard - edible too. To celebrate Easter, a British chocolate company created a chocolate billboard consisting of �10 massive chocolate bunnies, 72 giant chocolate eggs, and 128 panels made of pure chocolate." Passersby were encouraged to have a taste of the 14.5 x 9.5 foot billboard, giving the whole promotion interactive and guerrilla marketing qualities. Thorntons, the chocolate company behind the billboard, needed a team of 10 people working 300 hours to construct the giant confection; it took the public only 3 hours to eat it. 2009: Red Bull car Bus stop advertising - solar-powered bus stop! �San Francisco�s new solar-powered bus stops may not make the bus come any faster, but they will at least make the wait a bit more pleasant. The first solar-powered shelter, unveiled last week, contains photovoltaic cells on its roof that power LEDs for night-time vision. Excess power is sent back to the grid.� Free Wi-Fi access. 1,100 throughout the city. Cost $25,000-$30,000 each; paid in full by sponsor Clear Channel. Ariel Schwartz, Clean Technica, June 2, 2009The 1st solar bus stop (SBS) in Barcelona, Spain, was developed by 4 students. It is totally self-sufficient, uses only its own energy resources and doesn�t need wiring. There is an integrated display screen that updates every 30 seconds, and shows times of arrival of buses from all relevant lines, and other related information. 2008: Feed SA is a charity dedicated to feeding disadvantaged people throughout South Africa. "We placed decals of hungry begging street children at the bottom of supermarket trolleys (carts) bearing the Feed SA website and the line "See how easy feeding the hungry can be?" Any food placed in the trolley would appear to be given to the child." June 2007: For the U.S. launch of its flip flops, Havaianas (Brazilian flip flops) commissioned giant wall murals on the sides of buildings all over Manhattan. April 2007: The world�s 1st chocolate billboard - edible too. To celebrate Easter, a British chocolate company created a chocolate billboard consisting of �10 massive chocolate bunnies, 72 giant chocolate eggs, and 128 panels made of pure chocolate." Passersby were encouraged to have a taste of the 14.5 x 9.5 foot billboard, giving the whole promotion interactive and guerrilla marketing qualities. Thorntons, the chocolate company behind the billboard, needed a team of 10 people working 300 hours to construct the giant confection; it took the public only 3 hours to eat it. 2009: Red Bull car Bus stop advertising - solar-powered bus stop! �San Francisco�s new solar-powered bus stops may not make the bus come any faster, but they will at least make the wait a bit more pleasant. The first solar-powered shelter, unveiled last week, contains photovoltaic cells on its roof that power LEDs for night-time vision. Excess power is sent back to the grid.� Free Wi-Fi access. 1,100 throughout the city. Cost $25,000-$30,000 each; paid in full by sponsor Clear Channel. Ariel Schwartz, Clean Technica, June 2, 2009The 1st solar bus stop (SBS) in Barcelona, Spain, was developed by 4 students. It is totally self-sufficient, uses only its own energy resources and doesn�t need wiring. There is an integrated display screen that updates every 30 seconds, and shows times of arrival of buses from all relevant lines, and other related information. 2008: Feed SA is a charity dedicated to feeding disadvantaged people throughout South Africa. "We placed decals of hungry begging street children at the bottom of supermarket trolleys (carts) bearing the Feed SA website and the line "See how easy feeding the hungry can be?" Any food placed in the trolley would appear to be given to the child."

24. El Toro billboards originally advertising Osborne Brandy in Spain The Osborne bull billboards in Spain started in 1956 when the Osborne sherry/brandy company commissioned an advertising agency to design a logo to promote its best-selling product, Veterano brandy, alongside the roads of Spain. "The artist Manuel Prieto presented his two-dimensional but arresting image the following year and it was an instant hit. Prieto�s original sketch, scribbled on a scrap of squared paper, is today guarded in the archives of the Osborne bodega in Jerez. Prieto was a communist, and would doubtless have been persecuted and jailed had he not created the 20th century�s most distinctive image of Spain that the fascist right immediately fell in love with and tried to appropriate as their own. An artist for revolutionary militias during the Spanish Civil War, Prieto made a fortune with his bull, and the world of art and design hailed him as a hero before his death in 1991." Black bull cutouts, silhouettes of El Toro, dotted hilltops from the plains of La Mancha to the seacoast of Spain's Costa del Sol. Then the European Union decreed that alcohol could no longer be advertised on billboards. The Osborne brandy company removed its bull-boards, but public outcry brought them back, sans the company name -the Osborne bull had become a national icon. Driving throughout the Spanish countryside, one cannot ignore the gigantic bull silhouettes standing proudly on hilltops and plains. Weighing >4,000 kg (8,800 lb) each and with a height of nearly 14 m (46 feet) (equivalent to a 4-story building), 90 Osborne bulls stand frozen in time, carefully placed to be easily viewed from major roads and highways against a clear backdrop of sky. The Osborne bull billboards in Spain started in 1956 when the Osborne sherry/brandy company commissioned an advertising agency to design a logo to promote its best-selling product, Veterano brandy, alongside the roads of Spain. "The artist Manuel Prieto presented his two-dimensional but arresting image the following year and it was an instant hit. Prieto�s original sketch, scribbled on a scrap of squared paper, is today guarded in the archives of the Osborne bodega in Jerez. Prieto was a communist, and would doubtless have been persecuted and jailed had he not created the 20th century�s most distinctive image of Spain that the fascist right immediately fell in love with and tried to appropriate as their own. An artist for revolutionary militias during the Spanish Civil War, Prieto made a fortune with his bull, and the world of art and design hailed him as a hero before his death in 1991." Black bull cutouts, silhouettes of El Toro, dotted hilltops from the plains of La Mancha to the seacoast of Spain's Costa del Sol. Then the European Union decreed that alcohol could no longer be advertised on billboards. The Osborne brandy company removed its bull-boards, but public outcry brought them back, sans the company name -the Osborne bull had become a national icon. Driving throughout the Spanish countryside, one cannot ignore the gigantic bull silhouettes standing proudly on hilltops and plains. Weighing >4,000 kg (8,800 lb) each and with a height of nearly 14 m (46 feet) (equivalent to a 4-story building), 90 Osborne bulls stand frozen in time, carefully placed to be easily viewed from major roads and highways against a clear backdrop of sky.

25. The original London Black Taxicab Now they come in all colors, though the iconic shape is still the same. Vehicular ads make an effective advertising medium 2009: 21,000 licensed black cabs in London 2008: This is definitely a growing trend! London's black cabs are ubiquitous and famous all over the world and by law they have to be kept in excellent condition. The average black taxi covers 126 miles per day in major UK cities carrying 38.4 million people to their chosen destinations each year! That is an amazing reach and coverage over the UK. Research has shown that when interviewed 71% of adults said they notice taxi advertising and people in the 15 to 34-year-old age bracket are 24 times more likely to notice taxi advertising than the average person.Vehicular ads make an effective advertising medium 2009: 21,000 licensed black cabs in London 2008: This is definitely a growing trend! London's black cabs are ubiquitous and famous all over the world and by law they have to be kept in excellent condition. The average black taxi covers 126 miles per day in major UK cities carrying 38.4 million people to their chosen destinations each year! That is an amazing reach and coverage over the UK. Research has shown that when interviewed 71% of adults said they notice taxi advertising and people in the 15 to 34-year-old age bracket are 24 times more likely to notice taxi advertising than the average person.

26. 2006: �It is very difficult to say what the industry is worth these days but probably, nationwide, you are looking at about �12 million ($22 million), with the potential to be much higher,� said Andrew Barnett, managing director of London-based taxi advertising specialist Ubiquitous. > 50% of the public said they find taxi advertisements easier to read than buses or posters because they are at eye-level.2006: �It is very difficult to say what the industry is worth these days but probably, nationwide, you are looking at about �12 million ($22 million), with the potential to be much higher,� said Andrew Barnett, managing director of London-based taxi advertising specialist Ubiquitous. > 50% of the public said they find taxi advertisements easier to read than buses or posters because they are at eye-level.

27. 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) Wikipedia: The concept of guerilla marketing was invented as an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional; potentially interactive; and consumers are targeted in unexpected places. The objective of guerrilla marketing is to create a unique, engaging and thought-provoking concept to generate buzz, and consequently turn viral. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing. The term has since entered the popular vocabulary and marketing textbooks. Guerrilla marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, PR stunts, any unconventional marketing intended to get maximum results from minimal resources. More innovative approaches to Guerrilla marketing now utilize cutting edge mobile digital technologies to really engage the consumer and create a memorable brand experience. Small (organization) size is actually an advantage instead of a disadvantage. Wikipedia: The concept of guerilla marketing was invented as an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional; potentially interactive; and consumers are targeted in unexpected places. The objective of guerrilla marketing is to create a unique, engaging and thought-provoking concept to generate buzz, and consequently turn viral. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing. The term has since entered the popular vocabulary and marketing textbooks. Guerrilla marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, PR stunts, any unconventional marketing intended to get maximum results from minimal resources. More innovative approaches to Guerrilla marketing now utilize cutting edge mobile digital technologies to really engage the consumer and create a memorable brand experience. Small (organization) size is actually an advantage instead of a disadvantage.

28. Guerrilla Marketing: Mr. Clean Elevator ads: You�re crammed into a tiny space with several other people, spending an average of 30 seconds staring at either the floor or the wall. That�s what makes elevator advertisements and art so brilliant � people have little choice but to look. Marketers and artists have taken advantage of this very captive audience in some brilliant ways: Swiss skydive school Guerrilla Marketing: Mr. Clean Elevator ads: You�re crammed into a tiny space with several other people, spending an average of 30 seconds staring at either the floor or the wall. That�s what makes elevator advertisements and art so brilliant � people have little choice but to look. Marketers and artists have taken advantage of this very captive audience in some brilliant ways: Swiss skydive school

29. 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 In many countries, feeling that advertising persuades consumers to buy what they do not need. e.g. South Korea may ban ads for bottled water because commercials may arouse public mistrust of tap water.In many countries, feeling that advertising persuades consumers to buy what they do not need. e.g. South Korea may ban ads for bottled water because commercials may arouse public mistrust of tap water.

30. Shaun Tomson won the �Gunston 500� 6 consecutive times 1973-1978 No more sponsorship by Gunston, because Gunston = tobacco product Shaun Tomson set the surfing world ablaze with his tube-riding approach and body twist, full-rail power gouges. Shaun Tomson retired at the end of 1989 after 13 years in the top 16.� Shaun Tomson won the �Gunston 500� 6 consecutive times 1973-1978 No more sponsorship by Gunston, because Gunston = tobacco product Shaun Tomson set the surfing world ablaze with his tube-riding approach and body twist, full-rail power gouges. Shaun Tomson retired at the end of 1989 after 13 years in the top 16.�

31. 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.

32. break

33. Global Marketing Management Global Promotions Decisions MKTG 3215-001 Fall 2011 Mrs. Tamara L. Cohen We will focus on the SALES function.We will focus on the SALES function.

34. Promotionsin the Marketing Mix Promotion = business of COMMUNICATING with customers To generate sales and profits, product benefits must be communicated to customers. Promotional Mix blends advertising public relations sales promotion selling GLOBAL context Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective. (from www.thetimes100.co.uk) It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. In marketing, this is commonly known as "promotion". A business�s total marketing communications program is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools. Promotion is all about companies communicating with customers Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective. (from www.thetimes100.co.uk) It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. In marketing, this is commonly known as "promotion". A business�s total marketing communications program is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools. Promotion is all about companies communicating with customers

35. Selling overseas � � the expatriate experience www.expatriateadviser.com www.expatriateadviser.com

36. Relationship marketing = aspect of marketing products that depends on long-term associations with customers Expatriate = person living away from his/her own country Virtual Expatriate manages operations in another country but doesn�t live there Repatriation - returning to home country after working abroad Third-Country Nationals = expats from one country working for foreign company in 3rd country Local Nationals = person living in home country Separation allowance = payment of overseas premiums to employees who take on short-term foreign assignments & travel without families; allowances generally cover all excess expenses + tax differential In international sales, EXPATRIATES from selling country�s home country may be best for sales force when products highly technical or when selling requires extensive knowledge of company/product line. LOCAL NATIONALS historically preferred by expatriate managers to form sales force. Local Nationals tend to be more knowledgeable about business structure than expats, also less expensive to field. RELATIONSHIP MARKETING - important factor in B2B contexts, especially int�l markets, where culture dictates strong ties between people & companies. In international sales, EXPATRIATES from selling country�s home country may be best for sales force when products highly technical or when selling requires extensive knowledge of company/product line. LOCAL NATIONALS historically preferred by expatriate managers to form sales force. Local Nationals tend to be more knowledgeable about business structure than expats, also less expensive to field. RELATIONSHIP MARKETING - important factor in B2B contexts, especially int�l markets, where culture dictates strong ties between people & companies.

37. 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 6.6 million Americans living overseas. Population of NC = 9,535,500 in 2010 Population of Massachusetts = 6.6 million in 2010Population of NC = 9,535,500 in 2010 Population of Massachusetts = 6.6 million in 2010

38. Global PerspectiveAre International Assignments Glamorous? Job security Adjustment to other cultures � family considerations Readjustment upon return to U.S. � reentry culture shock Will an international assignment really help your career? International sales force may be ultimate embodiment of adage: �Think global. Act local.� The perception is that international assignments are glamorous. Not necessarily so. Expatriates face many challenges abroad as well as when they return home. When accepting the overseas posting they believe it is a good career move that will provide them with valuable international experience and so on. However, while they are away, their companies move on � sometimes they restructure � and the jobs they had before they left could possibly be eliminated. So much for job security. Not only does the expatriate have to adjust to another culture, so does his or her family. Many families find it very difficult. Then there�s the issue of returning home. Reentry is not as simple as it sounds. Culture shock takes place in reverse. Finally, the most pertinent question to answer is whether or not the international assignment will really help your career. The answer lies in your point of view. Since the world of business is increasingly more global, the scope of any international assignment will not only increase your international awareness, but will also increase your personal growth. The perception is that international assignments are glamorous. Not necessarily so. Expatriates face many challenges abroad as well as when they return home. When accepting the overseas posting they believe it is a good career move that will provide them with valuable international experience and so on. However, while they are away, their companies move on � sometimes they restructure � and the jobs they had before they left could possibly be eliminated. So much for job security. Not only does the expatriate have to adjust to another culture, so does his or her family. Many families find it very difficult. Then there�s the issue of returning home. Reentry is not as simple as it sounds. Culture shock takes place in reverse. Finally, the most pertinent question to answer is whether or not the international assignment will really help your career. The answer lies in your point of view. Since the world of business is increasingly more global, the scope of any international assignment will not only increase your international awareness, but will also increase your personal growth.

39. Designing the Sales Force Global competition + dynamic int�l business need for closer ties with customers & suppliers Relationship marketing & customer relationship management Decisions re numbers, characteristics & assignments of sales personnel Different market requirements re direct sales & customer approach Territory allocation details after personnel Customer call plans decisions fixed Growing global competition coupled with the dynamic and complex nature of international business increases both the need and the means for closer ties with both customers and suppliers. Particularly in relationship cultures such as China, relationship marketing, built on effective communications between the seller and buyer, focuses on building long-term alliances rather than treating each sale as a one-time event. Advances in information technology are allowing for increasingly higher levels of coordination across advertising, marketing research, and personal selling efforts, yielding new roles and functions in customer relationship management (CRM). Similarly, such advances are changing the nature of personal selling and sales management, leading some to forecast substantial reductions in field sales efforts. The salesperson is a company�s most direct tie to the customer; in the eyes of most customers, the salesperson is the company. As presenter of company offerings and gatherer of customer information, the sales representative is the final link in the culmination of a company�s marketing and sales efforts. The first step in managing a sales force is its design. Based on analyses of current and potential customers, the selling environment, competition, and the firm�s resources and capabilities, decisions must be made regarding the numbers, characteristics, and assignments of sales personnel. Some markets may require a direct sales force, whereas others may not. How customers are approached can differ as well. Once decisions have been made about how many expatriates, local nationals, or third-country nationals a particular market requires, then more intricate aspects of design can be undertaken, such as territory allocation and customer call plans. Many of the most advanced operations research tools developed in the United States can be applied in foreign markets, with appropriate adaptation of inputs, of course. Growing global competition coupled with the dynamic and complex nature of international business increases both the need and the means for closer ties with both customers and suppliers. Particularly in relationship cultures such as China, relationship marketing, built on effective communications between the seller and buyer, focuses on building long-term alliances rather than treating each sale as a one-time event. Advances in information technology are allowing for increasingly higher levels of coordination across advertising, marketing research, and personal selling efforts, yielding new roles and functions in customer relationship management (CRM). Similarly, such advances are changing the nature of personal selling and sales management, leading some to forecast substantial reductions in field sales efforts. The salesperson is a company�s most direct tie to the customer; in the eyes of most customers, the salesperson is the company. As presenter of company offerings and gatherer of customer information, the sales representative is the final link in the culmination of a company�s marketing and sales efforts. The first step in managing a sales force is its design. Based on analyses of current and potential customers, the selling environment, competition, and the firm�s resources and capabilities, decisions must be made regarding the numbers, characteristics, and assignments of sales personnel. Some markets may require a direct sales force, whereas others may not. How customers are approached can differ as well. Once decisions have been made about how many expatriates, local nationals, or third-country nationals a particular market requires, then more intricate aspects of design can be undertaken, such as territory allocation and customer call plans. Many of the most advanced operations research tools developed in the United States can be applied in foreign markets, with appropriate adaptation of inputs, of course.

40. Recruiting Marketing & Sales Personnel Largest personnel requirement abroad for most companies is sales force. Expatriates Virtual expatriates Local nationals Third-country nationals Host-country nationals The largest personnel requirement abroad for most companies is the sales force, recruited from 3 sources: expatriates, local nationals, and third-country nationals. Expatriates numbers declining important for highly technical or involved products high cost cultural & legal barriers limited number of high-caliber personnel willing to live abroad Virtual expatriates short-term commuter assignments manage operations in other countries but don�t live there Local nationals transcend both cultural & legal barriers familiar with distribution systems & referral networks HQ personnel may ignore their advice lack of availability sales positions viewed negatively Third-country nationals expatriates working for foreign company Host-country nationals work restrictions The number of companies relying on expatriate personnel is declining as the volume of world trade increases and as more companies use locals to fill marketing positions. However, when products are highly technical, or when selling requires an extensive background of information and applications, an expatriate sales force remains the best choice. Advantages of expatriate salesperson: greater technical training, better knowledge of the company and its product line, and proven dependability. Because they are not locals, expatriates sometimes add to the prestige of the product line in the eyes of foreign customers. And, perhaps most important, expatriates usually are able to effectively communicate with and influence headquarters personnel. Disadvantages of an expatriate sales force are: high cost, cultural and legal barriers, and limited number of high-caliber personnel willing to live abroad for extended periods. Companies in the United States are finding it difficult to persuade outstanding employees to take overseas posts. The Internet and other advances in communications technologies, along with the growing reluctance of executives to move abroad, are creating a new breed of expatriate, the virtual one. According to a PricewaterhouseCoopers survey of 270 organizations, there has been a substantial increase in shorter-term, commuter, and virtual assignments in recent years. Virtual expatriates manage operations in other countries but don�t move there. They stay in hotels, make long visits, and maintain their families at home. Some spend up to 75% of their working time traveling. None leave home without the ubiquitous laptop and cell phone. The historical preference for expatriate managers and salespeople from the home country is giving way to a preference for local nationals. Advantages: transcend both cultural and legal barriers. more knowledgeable about a country�s business structure and systems than an expatriate would be, local salespeople are better able to lead a company through the maze of unfamiliar distribution systems and referral networks. The main disadvantage of hiring local nationals is: tendency of headquarters personnel to ignore their advice. Even though most foreign nationals are careful to keep relationships at the home office warm, their influence is often reduced by their limited English communication skills and lack of understanding of how home-office politics influence decision making. their lack of availability; one CEO of a consulting firm that specializes in recruiting managers in China reports that ten openings exist for every one qualified applicant. Negative view of selling profession as is viewed in the United States In more relationship-oriented cultures such as France, Mexico, and Japan, sales representatives tend to be on the bottom rung of the social ladder. Thus recruiting the brightest people to fill sales positions in foreign operations can be very difficult indeed. The internationalization of business has created a pool of third-country nationals, expatriates from their own countries working for a foreign company in a third country. Third-country nationals are a group whose nationality has little to do with where they work or for whom. The host government�s attitudes toward foreign workers often complicate selecting expatriate U.S. nationals over locals. Concerns about foreign corporate domination, local unemployment, and other issues cause some countries to restrict the number of non-nationals allowed to work within the country. In earlier years, personnel gained foreign-country experience by being sent to lower management positions to gain the necessary training before eventually assuming top-level foreign assignments. Most countries, including the United States, control the number of foreigners allowed to work or train within their borders. The largest personnel requirement abroad for most companies is the sales force, recruited from 3 sources: expatriates, local nationals, and third-country nationals. Expatriates numbers declining important for highly technical or involved products high cost cultural & legal barriers limited number of high-caliber personnel willing to live abroad Virtual expatriates short-term commuter assignments manage operations in other countries but don�t live there Local nationals transcend both cultural & legal barriers familiar with distribution systems & referral networks HQ personnel may ignore their advice lack of availability sales positions viewed negatively Third-country nationals expatriates working for foreign company Host-country nationals work restrictions The number of companies relying on expatriate personnel is declining as the volume of world trade increases and as more companies use locals to fill marketing positions. However, when products are highly technical, or when selling requires an extensive background of information and applications, an expatriate sales force remains the best choice. Advantages of expatriate salesperson: greater technical training, better knowledge of the company and its product line, and proven dependability. Because they are not locals, expatriates sometimes add to the prestige of the product line in the eyes of foreign customers. And, perhaps most important, expatriates usually are able to effectively communicate with and influence headquarters personnel. Disadvantages of an expatriate sales force are: high cost, cultural and legal barriers, and limited number of high-caliber personnel willing to live abroad for extended periods. Companies in the United States are finding it difficult to persuade outstanding employees to take overseas posts. The Internet and other advances in communications technologies, along with the growing reluctance of executives to move abroad, are creating a new breed of expatriate, the virtual one. According to a PricewaterhouseCoopers survey of 270 organizations, there has been a substantial increase in shorter-term, commuter, and virtual assignments in recent years. Virtual expatriates manage operations in other countries but don�t move there. They stay in hotels, make long visits, and maintain their families at home. Some spend up to 75% of their working time traveling. None leave home without the ubiquitous laptop and cell phone. The historical preference for expatriate managers and salespeople from the home country is giving way to a preference for local nationals. Advantages: transcend both cultural and legal barriers. more knowledgeable about a country�s business structure and systems than an expatriate would be, local salespeople are better able to lead a company through the maze of unfamiliar distribution systems and referral networks. The main disadvantage of hiring local nationals is: tendency of headquarters personnel to ignore their advice. Even though most foreign nationals are careful to keep relationships at the home office warm, their influence is often reduced by their limited English communication skills and lack of understanding of how home-office politics influence decision making. their lack of availability; one CEO of a consulting firm that specializes in recruiting managers in China reports that ten openings exist for every one qualified applicant. Negative view of selling profession as is viewed in the United States In more relationship-oriented cultures such as France, Mexico, and Japan, sales representatives tend to be on the bottom rung of the social ladder. Thus recruiting the brightest people to fill sales positions in foreign operations can be very difficult indeed. The internationalization of business has created a pool of third-country nationals, expatriates from their own countries working for a foreign company in a third country. Third-country nationals are a group whose nationality has little to do with where they work or for whom. The host government�s attitudes toward foreign workers often complicate selecting expatriate U.S. nationals over locals. Concerns about foreign corporate domination, local unemployment, and other issues cause some countries to restrict the number of non-nationals allowed to work within the country. In earlier years, personnel gained foreign-country experience by being sent to lower management positions to gain the necessary training before eventually assuming top-level foreign assignments. Most countries, including the United States, control the number of foreigners allowed to work or train within their borders.

41. 2010: The 30 Most Expensive Cities to Live in the World as EXPATS Tokyo Oslo Luanda Nagoya Yokohama Stavanger Kobe Copenhagen Geneva Zurich Bern Basel Libreville Helsinki Moscow Paris Abidjan Abuja Tel Aviv Seoul Cost of living is a major consideration for both the expatriate and international organization. Although expatriates� salaries may be no more than those of their national counterparts, the total cost of keeping comparable groups of expatriates in a country can be considerably higher (often 3 times the expense) because of special cost-of-living benefits, moving expenses, taxes, and other costs associated with keeping an expatriate abroad. Source: Business Week: http://images.businessweek.com/ss/10/06/0622_most_expensive_cities/2.htm 2010 ranking http://images.businessweek.com/ss/10/06/0622_most_expensive_cities/1.htm In a new ranking by global human resource company ECA International, Japan's capital rose to become the most expensive city in the world for American travelers for the first time since 2005. The city's return this year was due largely to currency appreciation. Tokyo was followed by Oslo, Norway, and Angola's capital, Luanda. Exchange rates were also responsible for the rise in the cost of living in Seoul and Sydney, which climbed to 20th and 30th place, respectively, from ranks below 100 last year. Meanwhile, Manhattan, N.Y., the most expensive place in the U.S., fell 10 spots, to 29th place, as the U.S. dollar weakened. ECA International, which is based in London, surveyed 399 locations in September 2009 and March 2010 based on a basket of 128 goods, including groceries, transport, dining out, clothing, electronics, and such miscellaneous services as haircuts. Expenses such as rent, utilities, and school fees that are not typically included in a cost-of-living allowance were not counted. The survey focused on internationally recognizable brands�such as Kellogg's (K) cereal or Sapporo (SOOBF:OTC) beer�commonly purchased by expatriates. No. 1: Tokyo, Japan Rank in 2009: 2FOOD: Lunch at a restaurant: $18*Can of beer from grocer: $3.37*One kg of rice: $8.47*One dozen eggs: $3.78*ENTERTAINMENT: Movie ticket: $22*APPLIANCES: Washing machine: $879*The strength of the yen has brought Tokyo back to the No. 1 spot on ECA International�s ranking for the first time since 2005. In addition to the costs above, rent for a 2-bedroom apartment for expats is typically more than $5,000 per month in Tokyo, according to data from EuroCost International. While visitors need more pocket money here than in any other city, the monthly consumer price index in Tokyo�s wards has actually dropped year-on-year for 14 straight months as of May 2010, based on figures from Japan�s statistics bureau Cost of living is a major consideration for both the expatriate and international organization. Although expatriates� salaries may be no more than those of their national counterparts, the total cost of keeping comparable groups of expatriates in a country can be considerably higher (often 3 times the expense) because of special cost-of-living benefits, moving expenses, taxes, and other costs associated with keeping an expatriate abroad. Source: Business Week: http://images.businessweek.com/ss/10/06/0622_most_expensive_cities/2.htm 2010 ranking http://images.businessweek.com/ss/10/06/0622_most_expensive_cities/1.htm In a new ranking by global human resource company ECA International, Japan's capital rose to become the most expensive city in the world for American travelers for the first time since 2005. The city's return this year was due largely to currency appreciation. Tokyo was followed by Oslo, Norway, and Angola's capital, Luanda. Exchange rates were also responsible for the rise in the cost of living in Seoul and Sydney, which climbed to 20th and 30th place, respectively, from ranks below 100 last year. Meanwhile, Manhattan, N.Y., the most expensive place in the U.S., fell 10 spots, to 29th place, as the U.S. dollar weakened. ECA International, which is based in London, surveyed 399 locations in September 2009 and March 2010 based on a basket of 128 goods, including groceries, transport, dining out, clothing, electronics, and such miscellaneous services as haircuts. Expenses such as rent, utilities, and school fees that are not typically included in a cost-of-living allowance were not counted. The survey focused on internationally recognizable brands�such as Kellogg's (K) cereal or Sapporo (SOOBF:OTC) beer�commonly purchased by expatriates. No. 1: Tokyo, Japan Rank in 2009: 2

42. 2008 Best for expat experience: Germany Canada Spain Least popular expat experience: UAE China Best for financial wealth, luxury & accommodation: Singapore UAE USA Best salaries: India Hong Kong www.justlanded.com � 2003-2009 Just Landed�-�The online destination for expatriates and expats worldwide When it comes attracting expatriates, Spain is leading the ranking of worldwide expatriate destinations. In 2008, the country welcomed almost 800,000 foreigners, followed by Germany and the UK (Eurostat, 2008). In 2008, expatriates already accounted for 11.4% of the Spanish population, and this number is expected to increase to some 20% in the future. However, the worsening economic outlook in Spain points to a reversal in these figures so the picture could change rapidly over the next couple of years. The most popular countries in terms of expatriate experience are Germany, followed by Canada and Spain. In these countries, expatriates tend to make local friends, learn the local language, join a community group or even buy a property. Expatriates in these countries find it generally easy to integrate, including their family and children (over two thirds of expatriate children speaking two or more languages!). The worst countries in terms of expat experience are the United Arab Emirates and China, where most expatriates find it extremely hard to integrate into local society or make local friends. However, when it comes to �hard facts� such as financial wealth, accommodation and luxury, the picture changes drastically. On these criteria, the most attractive expatriate destinations are Singapore, followed by the United Arab Emirates and the United States. The highest expatriate salaries are paid in India and Hong Kong, where almost half of expatriates earn more than $167,000 per year. www.justlanded.com � 2003-2009 Just Landed�-�The online destination for expatriates and expats worldwide When it comes attracting expatriates, Spain is leading the ranking of worldwide expatriate destinations. In 2008, the country welcomed almost 800,000 foreigners, followed by Germany and the UK (Eurostat, 2008). In 2008, expatriates already accounted for 11.4% of the Spanish population, and this number is expected to increase to some 20% in the future. However, the worsening economic outlook in Spain points to a reversal in these figures so the picture could change rapidly over the next couple of years. The most popular countries in terms of expatriate experience are Germany, followed by Canada and Spain. In these countries, expatriates tend to make local friends, learn the local language, join a community group or even buy a property. Expatriates in these countries find it generally easy to integrate, including their family and children (over two thirds of expatriate children speaking two or more languages!). The worst countries in terms of expat experience are the United Arab Emirates and China, where most expatriates find it extremely hard to integrate into local society or make local friends. However, when it comes to �hard facts� such as financial wealth, accommodation and luxury, the picture changes drastically. On these criteria, the most attractive expatriate destinations are Singapore, followed by the United Arab Emirates and the United States. The highest expatriate salaries are paid in India and Hong Kong, where almost half of expatriates earn more than $167,000 per year.

43. Selecting Sales & Marketing Personnel Management must define expectations Prime requisites 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 To select personnel for international marketing positions effectively, management must define precisely what is expected of its people. In addition to formal job descriptions for each marketing position, the criteria should include special requirements indigenous to various countries. New evidence indicates that a manager�s culture affects personnel decisions. In a new line of international sales management research, one study reports �that managers given an identical [personnel selection] problem do not make the same decisions nor do they value the criteria often used in recruitment and promotion decisions equally.� Bloomberg Businessweek, June 22, 2010: Scaling Down Benefits Sending employees overseas (often along with their families) is a significant investment for any company, especially because compensation and benefit packages must cover employees' overseas expenses as well as such obligations as mortgage payments at home. Costly as cities such as Tokyo are, they often serve as regional commerce centers and remain critical to multinational companies; the need to move staff overseas remains fundamental. Even in today's business environment, ECA International's Quane says, employers need to make compensation attractive enough for employees to take assignments, not move to competitors, while the employer can still make a return on investment. Many employers have recently tried to trim benefit packages while ensuring that the employee's core compensation remains attractive, he says. Until about five years ago, overseas assignments were viewed by many as cash cows�an opportunity to enjoy a good standard of living overseas while saving some money. Today, "companies are striking the right balance," says Quane. Housing allowances and paid trips home, for example, have been scaled down, he says. Assignees who may have received an allowance for a two- or three-bedroom apartment may now receive an allowance for a smaller rental. Some packages are being localized to line up with local standards. In locations that have become unprofitable, some employees have been sent home. "Talent is never in excess," says Brennan. "Anyone who is proficient and versatile and valued enough to go international is a valuable product." While paying for $90 meals and $50 DVDs may be expensive while the dollar is weak and business is soft, Brennan says in the long term, the right person can be the solution to turning things around. To select personnel for international marketing positions effectively, management must define precisely what is expected of its people. In addition to formal job descriptions for each marketing position, the criteria should include special requirements indigenous to various countries. New evidence indicates that a manager�s culture affects personnel decisions. In a new line of international sales management research, one study reports �that managers given an identical [personnel selection] problem do not make the same decisions nor do they value the criteria often used in recruitment and promotion decisions equally.� Bloomberg Businessweek, June 22, 2010: Scaling Down Benefits Sending employees overseas (often along with their families) is a significant investment for any company, especially because compensation and benefit packages must cover employees' overseas expenses as well as such obligations as mortgage payments at home. Costly as cities such as Tokyo are, they often serve as regional commerce centers and remain critical to multinational companies; the need to move staff overseas remains fundamental. Even in today's business environment, ECA International's Quane says, employers need to make compensation attractive enough for employees to take assignments, not move to competitors, while the employer can still make a return on investment. Many employers have recently tried to trim benefit packages while ensuring that the employee's core compensation remains attractive, he says. Until about five years ago, overseas assignments were viewed by many as cash cows�an opportunity to enjoy a good standard of living overseas while saving some money. Today, "companies are striking the right balance," says Quane. Housing allowances and paid trips home, for example, have been scaled down, he says. Assignees who may have received an allowance for a two- or three-bedroom apartment may now receive an allowance for a smaller rental. Some packages are being localized to line up with local standards. In locations that have become unprofitable, some employees have been sent home. "Talent is never in excess," says Brennan. "Anyone who is proficient and versatile and valued enough to go international is a valuable product." While paying for $90 meals and $50 DVDs may be expensive while the dollar is weak and business is soft, Brennan says in the long term, the right person can be the solution to turning things around.

44. Training for International 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 The nature of a training program depends largely on both the home culture of the sales person and the culture of the business system in the foreign market. Also important is whether expatriate or local personnel will be representing the firm. Training for the expatriates focuses on the customs and the special foreign sales problems that will be encountered, whereas local personnel require greater emphasis on the company, its products, technical information, and selling methods. Continual training may be more important in foreign markets than in domestic ones because of the lack of routine contact with the parent company and its marketing personnel. One aspect of training is frequently overlooked: Home-office personnel dealing with international marketing operations need training designed to make them responsive to the needs of the foreign operations. In most companies, the requisite sensitivities are expected to be developed by osmosis in the process of dealing with foreign affairs. The Internet now makes some kinds of sales training much more efficient. Users can study text on-screen and participate in interactive assessment tests. Sun Microsystems estimates that its use of the Internet can shorten training cycles by as much as 75 percent. And in some parts of the world where telecommunications facilities are more limited, CD-ROM approaches have proven quite successful. Lockheed Martin uses an interactive CD-ROM�based system to train its employees worldwide on the nuances of the Foreign Corrupt Practices Act and associated corporate policies and ethics.The nature of a training program depends largely on both the home culture of the sales person and the culture of the business system in the foreign market. Also important is whether expatriate or local personnel will be representing the firm. Training for the expatriates focuses on the customs and the special foreign sales problems that will be encountered, whereas local personnel require greater emphasis on the company, its products, technical information, and selling methods. Continual training may be more important in foreign markets than in domestic ones because of the lack of routine contact with the parent company and its marketing personnel. One aspect of training is frequently overlooked: Home-office personnel dealing with international marketing operations need training designed to make them responsive to the needs of the foreign operations. In most companies, the requisite sensitivities are expected to be developed by osmosis in the process of dealing with foreign affairs. The Internet now makes some kinds of sales training much more efficient. Users can study text on-screen and participate in interactive assessment tests. Sun Microsystems estimates that its use of the Internet can shorten training cycles by as much as 75 percent. And in some parts of the world where telecommunications facilities are more limited, CD-ROM approaches have proven quite successful. Lockheed Martin uses an interactive CD-ROM�based system to train its employees worldwide on the nuances of the Foreign Corrupt Practices Act and associated corporate policies and ethics.

45. 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 rep�s 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.

46. more Personal 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 rep to meet Korean exec of higher status � could be viewed as disrespectful. THAILAND emphasizes non-conflict. Don�t make assertive demands in sales pitch. (Scotch = drink. Scotch NOT nationality. Scottish = nationality.) (Scotch = drink. Scotch NOT nationality. Scottish = nationality.)

47. Motivating Sales Personnel National differences must always be considered when motivating marketing force Individual incentives that work effectively in the U.S. can fail completely in other cultures Communications important in maintaining high levels of motivation (NOT �out of sight, out of mind�) Company needs to clarify opportunities for growth within firm Motivation is especially complicated because the firm is dealing with different cultures, different sources, and different philosophies. National differences must always be considered in motivating the marketing force. Individual incentives that work effectively in the United States can fail completely in other cultures. e.g. with Japan�s emphasis on paternalism and collectivism and its system of lifetime employment and seniority, motivation through individual incentive does not work well because Japanese employees seem to derive the greatest satisfaction from being comfortable members of a group. Communications are also important in maintaining high levels of motivation; foreign managers need to know that the home office is interested in their operations, and, in turn, they want to know what is happening in the parent country. Everyone performs better when well informed. Because promotion and the opportunity to improve status are important motivators, a company needs to make clear the opportunities for growth within the firm. In truly global firms, foreign nationals can aspire to the highest positions in the firm. Likewise, one of the greatest fears of expatriate managers, which can be easily allayed, is that they will be forgotten by the home office. Motivation is especially complicated because the firm is dealing with different cultures, different sources, and different philosophies. National differences must always be considered in motivating the marketing force. Individual incentives that work effectively in the United States can fail completely in other cultures. e.g. with Japan�s emphasis on paternalism and collectivism and its system of lifetime employment and seniority, motivation through individual incentive does not work well because Japanese employees seem to derive the greatest satisfaction from being comfortable members of a group. Communications are also important in maintaining high levels of motivation; foreign managers need to know that the home office is interested in their operations, and, in turn, they want to know what is happening in the parent country. Everyone performs better when well informed. Because promotion and the opportunity to improve status are important motivators, a company needs to make clear the opportunities for growth within the firm. In truly global firms, foreign nationals can aspire to the highest positions in the firm. Likewise, one of the greatest fears of expatriate managers, which can be easily allayed, is that they will be forgotten by the home office.

48. 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 � a.k.a. separation allowances Using compensation program to recruit, develop, motivate, or retain personnel Developing an equitable and functional compensation plan that combines balance, consistent motivation, and flexibility is extremely challenging in international operations. Fringe benefits play a major role in many countries. Those working in high-tax countries prefer liberal expense accounts and fringe benefits that are nontaxable instead of direct income subject to high taxes. Fringe-benefit costs are high in Europe, ranging from 35 - 60% of salary. Pay can be a significant factor in making it difficult for a person to be repatriated. Often those returning home realize they have been making considerably more money with a lower cost of living in the overseas market; returning to the home country means a cut in pay and a cut in standard of living. Expatriates tend to compare their compensation with what they would have received at the home office during the same time, and local personnel and expatriate personnel are likely to compare notes on salary. Although any differences in the compensation level may be easily and logically explained, the group receiving the lower amount almost always feels aggrieved and mistreated. Short-term assignments for expatriates further complicate the compensation issue, particularly when the short-term assignments extend into a longer time. In general, short-term assignments involve payments of overseas premiums (sometimes called separation allowances if the family does not go along), all excess expenses, and allowances for tax differentials. Longer assignments can include home-leave benefits or travel allowances for the spouse. Besides rewarding an individual�s contribution to the firm, a compensation program can be used effectively to recruit, develop, motivate, or retain personnel. Most recommendations for developing a compensation program suggest that a program focus on whichever one of these purposes fits the needs of a particular situation. Developing an equitable and functional compensation plan that combines balance, consistent motivation, and flexibility is extremely challenging in international operations. Fringe benefits play a major role in many countries. Those working in high-tax countries prefer liberal expense accounts and fringe benefits that are nontaxable instead of direct income subject to high taxes. Fringe-benefit costs are high in Europe, ranging from 35 - 60% of salary. Pay can be a significant factor in making it difficult for a person to be repatriated. Often those returning home realize they have been making considerably more money with a lower cost of living in the overseas market; returning to the home country means a cut in pay and a cut in standard of living. Expatriates tend to compare their compensation with what they would have received at the home office during the same time, and local personnel and expatriate personnel are likely to compare notes on salary. Although any differences in the compensation level may be easily and logically explained, the group receiving the lower amount almost always feels aggrieved and mistreated. Short-term assignments for expatriates further complicate the compensation issue, particularly when the short-term assignments extend into a longer time. In general, short-term assignments involve payments of overseas premiums (sometimes called separation allowances if the family does not go along), all excess expenses, and allowances for tax differentials. Longer assignments can include home-leave benefits or travel allowances for the spouse. Besides rewarding an individual�s contribution to the firm, a compensation program can be used effectively to recruit, develop, motivate, or retain personnel. Most recommendations for developing a compensation program suggest that a program focus on whichever one of these purposes fits the needs of a particular situation.

49. 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 Valuable information gained during IBM�s process of revamping its sales compensation scheme was the list (above & next slide) of the �do�s and don�ts� of global compensation. Valuable information gained during IBM�s process of revamping its sales compensation scheme was the list (above & next slide) of the �do�s and don�ts� of global compensation.

50. 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

51. Evaluating & Controlling Sales Representatives In U.S. emphasis placed on individual performance easily be measured by sales revenues generated In many countries evaluation more complex where teamwork favored over individual effort In U.S. 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 Evaluation and control of sales representatives in the United States is a relatively simple task. In many sales jobs, emphasis is placed on individual performance, which can easily be measured by sales revenues generated (often compared with past performance, forecasts, or quotas). In short, a good sales representative produces big numbers. However, in many countries the evaluation problem is more complex, particularly in relationship-oriented cultures, where teamwork is favored over individual effort and closer supervision is expected, may even be appreciated. The primary control tool used by American sales managers is the incentive system. Internet allows more American sales representatives to operate out of home offices and see supervisors infrequently. Organizations have become quite flat and spans of control increasingly broad in recent years. However, in many other countries spans of control can be quite narrow by American standards�even in Australia and particularly in Japan. In the latter country, supervisors spend much more time with fewer subordinates. Corporate culture and frequent interactions with peers and supervisors are the means of motivation and control of sales representatives in relationship-oriented cultures like Japan.Evaluation and control of sales representatives in the United States is a relatively simple task. In many sales jobs, emphasis is placed on individual performance, which can easily be measured by sales revenues generated (often compared with past performance, forecasts, or quotas). In short, a good sales representative produces big numbers. However, in many countries the evaluation problem is more complex, particularly in relationship-oriented cultures, where teamwork is favored over individual effort and closer supervision is expected, may even be appreciated. The primary control tool used by American sales managers is the incentive system. Internet allows more American sales representatives to operate out of home offices and see supervisors infrequently. Organizations have become quite flat and spans of control increasingly broad in recent years. However, in many other countries spans of control can be quite narrow by American standards�even in Australia and particularly in Japan. In the latter country, supervisors spend much more time with fewer subordinates. Corporate culture and frequent interactions with peers and supervisors are the means of motivation and control of sales representatives in relationship-oriented cultures like Japan.

52. 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 Estimates of the annual cost of sending and supporting a manager and his / her family in a foreign assignment range from 150 to 400 % of base salary. The cost in money (some estimates are in the $300,000 to $600,000 range) and morale increases substantially if the expatriate requests a return home before completing the normal tour of duty (a normal stay is 2 - 4 years). The planning process must begin prior to the selection of those who go abroad and extend to their specific assignments after returning home. Selection, training, compensation, and career development policies (including repatriation) should reflect the unique problems of managing the expatriate. Estimates of the annual cost of sending and supporting a manager and his / her family in a foreign assignment range from 150 to 400 % of base salary. The cost in money (some estimates are in the $300,000 to $600,000 range) and morale increases substantially if the expatriate requests a return home before completing the normal tour of duty (a normal stay is 2 - 4 years). The planning process must begin prior to the selection of those who go abroad and extend to their specific assignments after returning home. Selection, training, compensation, and career development policies (including repatriation) should reflect the unique problems of managing the expatriate.

53. Resources for Expats in UK Cost �1 per copy, including shippingCost �1 per copy, including shipping

54. 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 deal with concerns Concerns for career and family are the most frequently mentioned reasons for a manager to refuse a foreign assignment. The most important career-related reservation is the fear that 2-3 year absence will adversely affect opportunities for advancement. Even though the career development question may be adequately answered with proper planning, concern for family may interfere with many accepting an assignment abroad. Initially, most potential candidates are worried about uprooting a family and settling into a strange environment. Questions about the education of the children, isolation from family and friends, proper health care, and, in some countries, the potential for violence reflect the misgivings a family faces when relocating to a foreign country. Special compensation packages have been the typical way to deal with this problem. Concerns for career and family are the most frequently mentioned reasons for a manager to refuse a foreign assignment. The most important career-related reservation is the fear that 2-3 year absence will adversely affect opportunities for advancement. Even though the career development question may be adequately answered with proper planning, concern for family may interfere with many accepting an assignment abroad. Initially, most potential candidates are worried about uprooting a family and settling into a strange environment. Questions about the education of the children, isolation from family and friends, proper health care, and, in some countries, the potential for violence reflect the misgivings a family faces when relocating to a foreign country. Special compensation packages have been the typical way to deal with this problem.

55. 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 ombudsmen - someone experienced in country - anticipate challenges & be ready with solutions Once the employee and family accept the assignment abroad, the next problem is keeping them there for the assigned time. The attrition rate of those selected for overseas positions can be very high, although some studies have suggested it is declining overall. The most important reasons a growing number of companies are including an evaluation of an employee�s family among selection criteria are the high cost of sending an expatriate abroad and increasing evidence that unsuccessful family adjustment is the single most important reason for expatriate dissatisfaction and the resultant request for return home. One researcher estimated that 75% of families sent to a foreign post experience adjustment problems with children or have marital discord. Dissatisfaction is caused by the stress and trauma of adjusting to new and often strange cultures. The employee has less trouble adjusting than family members; a company�s expatriate moves in a familiar environment even abroad and is often isolated from the cultural differences that create problems for the rest of the family. More and more companies realize the need for cross-cultural training to prepare families for their new homes. One- or two-day briefings to two- or three-week intensive programs that include all members of the family are provided to assist assimilation into new cultures. Once the family is abroad, some companies even provide a local ombudsman (someone experienced in the country) to whom members can take their problems and get immediate assistance. Once the employee and family accept the assignment abroad, the next problem is keeping them there for the assigned time. The attrition rate of those selected for overseas positions can be very high, although some studies have suggested it is declining overall. The most important reasons a growing number of companies are including an evaluation of an employee�s family among selection criteria are the high cost of sending an expatriate abroad and increasing evidence that unsuccessful family adjustment is the single most important reason for expatriate dissatisfaction and the resultant request for return home. One researcher estimated that 75% of families sent to a foreign post experience adjustment problems with children or have marital discord. Dissatisfaction is caused by the stress and trauma of adjusting to new and often strange cultures. The employee has less trouble adjusting than family members; a company�s expatriate moves in a familiar environment even abroad and is often isolated from the cultural differences that create problems for the rest of the family. More and more companies realize the need for cross-cultural training to prepare families for their new homes. One- or two-day briefings to two- or three-week intensive programs that include all members of the family are provided to assist assimilation into new cultures. Once the family is abroad, some companies even provide a local ombudsman (someone experienced in the country) to whom members can take their problems and get immediate assistance.

56. 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 Many companies have sophisticated plans for taking exec�s overseas but few have plans for return home, i.e. REPATRIATION. Too often repatriated workers are valuable resource neglected or wasted by inexperienced US mgt. RE-ENTRY is challenging Low morale & growing attrition among many returning expats. Problems family-related (financial & lifestyle adjustments) and/or career-related (lack of career planning, lack of appreciation, technical obsolescence, loss of status requiring ego adjustment)Many companies have sophisticated plans for taking exec�s overseas but few have plans for return home, i.e. REPATRIATION. Too often repatriated workers are valuable resource neglected or wasted by inexperienced US mgt. RE-ENTRY is challenging Low morale & growing attrition among many returning expats. Problems family-related (financial & lifestyle adjustments) and/or career-related (lack of career planning, lack of appreciation, technical obsolescence, loss of status requiring ego adjustment)

57. 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 Many businesses focus on the functional skills needed in international marketing, overlooking the importance of cultural intelligence. Most expatriate failures are not caused by lack of management or technical skills but rather by lack of an understanding of cultural differences and their effect on management skills. As the world becomes more interdependent and as companies become more dependent on foreign earnings, there is a growing need for companies to develop cultural awareness among those posted abroad. Just as we remark that someone has learned good social skills (i.e. an ability to remain poised and be in control under all social situations), so too can good cultural skills be developed. These skills serve a similar function in varying cultural situations; they provide the individual with the ability to relate to a different culture even when the individual is unfamiliar with the details of that particular culture. Many businesses focus on the functional skills needed in international marketing, overlooking the importance of cultural intelligence. Most expatriate failures are not caused by lack of management or technical skills but rather by lack of an understanding of cultural differences and their effect on management skills. As the world becomes more interdependent and as companies become more dependent on foreign earnings, there is a growing need for companies to develop cultural awareness among those posted abroad. Just as we remark that someone has learned good social skills (i.e. an ability to remain poised and be in control under all social situations), so too can good cultural skills be developed. These skills serve a similar function in varying cultural situations; they provide the individual with the ability to relate to a different culture even when the individual is unfamiliar with the details of that particular culture.

58. 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?

59. Changing Profile of Global Manager Fewer companies today limit their search for senior-level executive talent to home countries e.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 Fewer companies today limit their search for senior-level executive talent to their home countries. e.g. 2 prominent examples of individuals who rose to the top of firms outside their home countries: Bank of America former CFO Al de Molina began his ascent to the top in his native Cuba; former IBM vice chairman, a Swiss national, rose through the ranks in Europe. Some companies, such as Colgate-Palmolive, believe that it is important to have international assignments early in a person�s career, and international training is an integral part of their entry-level development programs. Colgate recruits its future managers from the world�s best colleges and business schools. Acceptance is highly competitive, and successful applicants have a BA or MBA with proven leadership skills, fluency in at least one language besides English, and some experience living abroad. A typical recruit might be a U.S. citizen who has spent a year studying in another country, or a national of another country who was educated in the United States. Companies whose foreign receipts make up a substantial portion of their earnings, and who see themselves as global companies rather than as domestic companies doing business in foreign markets, are the most active in making the foreign experience an integrated part of a successful corporate career. PepsiCo: Indira Nooyi (53) CEO since October 1, 2006. A Madras native and graduate of the Yale School of Management, Nooyi said she is "humbled" to be chosen as CEO by the PepsiCo board after serving since May 2001 as president and CFO. Goldman Sachs International: Richard Gnodde co-CEO since 2006. UCT + Cambridge. 1987 � Goldman: London, European M&A, Japan, Singapore, Hong Kong, ChinaFewer companies today limit their search for senior-level executive talent to their home countries. e.g. 2 prominent examples of individuals who rose to the top of firms outside their home countries: Bank of America former CFO Al de Molina began his ascent to the top in his native Cuba; former IBM vice chairman, a Swiss national, rose through the ranks in Europe. Some companies, such as Colgate-Palmolive, believe that it is important to have international assignments early in a person�s career, and international training is an integral part of their entry-level development programs. Colgate recruits its future managers from the world�s best colleges and business schools. Acceptance is highly competitive, and successful applicants have a BA or MBA with proven leadership skills, fluency in at least one language besides English, and some experience living abroad. A typical recruit might be a U.S. citizen who has spent a year studying in another country, or a national of another country who was educated in the United States. Companies whose foreign receipts make up a substantial portion of their earnings, and who see themselves as global companies rather than as domestic companies doing business in foreign markets, are the most active in making the foreign experience an integrated part of a successful corporate career. PepsiCo: Indira Nooyi (53) CEO since October 1, 2006. A Madras native and graduate of the Yale School of Management, Nooyi said she is "humbled" to be chosen as CEO by the PepsiCo board after serving since May 2001 as president and CFO. Goldman Sachs International: Richard Gnodde co-CEO since 2006. UCT + Cambridge. 1987 � Goldman: London, European M&A, Japan, Singapore, Hong Kong, China

60. 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 Proponents of language skills argue that learning a language improves cultural understanding and business relationships. Others point out that to be taken seriously in the business community, the expatriate must be at least conversational in the host language. Particularly when it comes to selling in foreign countries, languages are important. Though most companies offer short, intensive language-training courses for managers being sent abroad, many are making stronger efforts to recruit people who are bilingual or multilingual. According to the director of personnel at Coca-Cola, when his department searches its database for people to fill overseas posts, 1st choice is often someone who speaks > 1 language.Proponents of language skills argue that learning a language improves cultural understanding and business relationships. Others point out that to be taken seriously in the business community, the expatriate must be at least conversational in the host language. Particularly when it comes to selling in foreign countries, languages are important. Though most companies offer short, intensive language-training courses for managers being sent abroad, many are making stronger efforts to recruit people who are bilingual or multilingual. According to the director of personnel at Coca-Cola, when his department searches its database for people to fill overseas posts, 1st choice is often someone who speaks > 1 language.

61. 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 int�l sales & marketing force is careful planning at all stages of career development Keys to success in  Global Promotions Decisions An effective international sales force constitutes one of the international marketer�s greatest concerns. The company�s sales force represents the major alternative method of organizing a company for foreign distribution and, as such, is on the front line of a marketing organization. The role of marketers in both domestic and foreign markets is rapidly changing, along with the composition of international managerial and sales forces. Such forces have many unique requirements that are being filled by expatriates, locals, third-country nationals, or a combination of the three. In recent years, the pattern of development has been to place more emphasis on local personnel operating in their own lands. This, in turn, has highlighted the importance of adapting managerial techniques to local needs. The development of an effective marketing organization calls for careful recruiting, selecting, training, motivating, and compensating of expatriate personnel and their families to ensure maximization of a company�s return on its personnel expenditures. The most practical method of maintaining an efficient international sales and marketing force is careful, concerted planning at all stages of career development. An effective international sales force constitutes one of the international marketer�s greatest concerns. The company�s sales force represents the major alternative method of organizing a company for foreign distribution and, as such, is on the front line of a marketing organization. The role of marketers in both domestic and foreign markets is rapidly changing, along with the composition of international managerial and sales forces. Such forces have many unique requirements that are being filled by expatriates, locals, third-country nationals, or a combination of the three. In recent years, the pattern of development has been to place more emphasis on local personnel operating in their own lands. This, in turn, has highlighted the importance of adapting managerial techniques to local needs. The development of an effective marketing organization calls for careful recruiting, selecting, training, motivating, and compensating of expatriate personnel and their families to ensure maximization of a company�s return on its personnel expenditures. The most practical method of maintaining an efficient international sales and marketing force is careful, concerted planning at all stages of career development.

62. Next class: 1. Global Distribution Decisions 2. GUEST: Michael Raffler Kuehne & Nagel Homework: Kuehne & Nagel web site UEST: Homework #10 - DUE Nov.21: Visit the Kuehne & Nagel web site: www.kn-portal.com Send me an e-mail telling me one interesting thing you learned from the site. Homework #10 - DUE Nov.21: Visit the Kuehne & Nagel web site: www.kn-portal.com Send me an e-mail telling me one interesting thing you learned from the site.