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PART. COMMUNICATING . 7. VALUE. Chapter. DESIGNING. 17. And Managing Integrated Marketing Communications. Integrated Marketing Communications. McDonald’s 24-hour service in Singapore Used print ads to inform public. Outlets – open 24 hours - signs around store

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communicating

PART

COMMUNICATING

7

VALUE

Marketing Management - An Asian Perspective

4th Edition

designing

Chapter

DESIGNING

17

And Managing

Integrated Marketing Communications

Marketing Management - An Asian Perspective

4th Edition

slide3

Integrated Marketing Communications

McDonald’s 24-hour service in Singapore

Used print ads to inform public

Outlets – open 24 hours - signs around store

Banners - restaurant & road; Posters - public garbage bins

Different media, one voice

Marketing Management - An Asian Perspective

4th Edition

slide4

In this chapter, we

address the following

questions:

  • What is the role of marketing communications?
  • How does marketing communications work?
  • What are the major steps in developing effective communications?
  • What is the communications mix & how should it be set?
  • What is an integrated marketing communications program?

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications
The Role of Marketing Communications
  • MARKETING COMMUNICATIONS

means by which firms attempt

to inform, persuade & remind consumers - directly or indirectly

- about products & brands that they sell

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications marketing communications brand equity
The Role of Marketing Communications- Marketing Communications & Brand Equity
  • Marketing communications mix
    • Advertising
    • Sales promotion
    • Events & experiences
    • Public relations & publicity
    • Direct marketing
    • Personal selling

Marketing Management - An Asian Perspective

4th Edition

slide7

Table 17.1 Common Communication Platforms

Marketing Management - An Asian Perspective

4th Edition

slide8

Figure 17.1 Integrating Marketing Communications to Build Brand Equity

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications marketing communications brand equity9
The Role of Marketing Communications- Marketing Communications & Brand Equity
  • Brand contact: strengthen/weaken customer’s view of company
  • How brand associations formed not crucial
  • Experiences, impressions - most influence at each stage of buying process
  • Integrate activities - consistent message & strategic positioning

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications marketing communications brand equity10
The Role of Marketing Communications- Marketing Communications & Brand Equity
  • Marketing communications: judged on ability to build brand equity & sales
  • Evaluate all communication options using
    • Effectiveness criteria &
    • Efficiency considerations
  • Brand awareness - function of brand-related exposures & accumulated consumer experiences

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications the communications process models
The Role of Marketing Communications- The Communications Process Models

MACROMODEL OF THE COMMUNICATION PROCESS

  • Key factors in effective communication
  • Senders - WHO to reach & WHAT responses
  • Encode messages - target decode them
  • Transmit message - media - reach target - feedback channels to monitor responses
  • If sender’s field of experience overlaps with receiver’s, message more effective

Marketing Management - An Asian Perspective

4th Edition

slide12

Figure 17.2

Elements in the Communication Process

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications the communications process models13
The Role of Marketing Communications- The Communications Process Models
  • Selective attention – People exposed by many commercial messages daily
  • Selective distortion – Receivers hear what fits their belief systems
  • Selective retention – People retain in long-term memory small fraction of messages that reach them

Marketing Management - An Asian Perspective

4th Edition

slide14

Figure 17.3 Response Hierarchy Models

Concentrate on consumers’ specific responses to communications

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications the communications process models15
The Role of Marketing Communications- The Communications Process Models

MICROMODEL OF CONSUMER RESPONSES:

  • Assume buyer passes through stages with product:
    • “learn-feel-do”high involvement + differentiation
    • “do-feel-learn,” high involvement + little/no differentiation
    • “learn-do-feel,” low involvement + differentiation
  • Choose right one & plan communications easy

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications the communications process models16
The Role of Marketing Communications- The Communications Process Models

Buyer: high involvement + differentiation,

use hierarchy-of-effects model:

  • Awareness: unaware; build awareness
  • Knowledge: aware
  • Liking: know brand; but feelings?
  • Preference: like but no preference
  • Conviction: prefer but no conviction to buy
  • Purchase: conviction but no purchase

Marketing Management - An Asian Perspective

4th Edition

slide17

The Role of Marketing Communications- The Communications Process Models

Ad by ING Insurance- convince Taiwanese parents tobuy coverage for their children.

Strategically position picture of child over homeless person

Marketing Management - An Asian Perspective

4th Edition

the role of marketing communications the communications process models18
The Role of Marketing Communications- The Communications Process Models

Ideal ad campaign ensures:

  • Right consumer, message, place & time
  • Pay attention, not distracted - message
  • Reflect understanding – product, brand
  • Positions brand- desirable & deliverable points-of-difference & -parity
  • Motivate to purchase
  • Strong brand associations - effect when consider purchase

Marketing Management - An Asian Perspective

4th Edition

slide19

Figure 17.4

Steps in Developing Effective Communications

Marketing Management - An Asian Perspective

4th Edition

developing effective communications identify the target audience
Developing Effective Communications- Identify the Target Audience
  • Target audience critical - communicator
  • Define target audience - usage & loyalty
  • Image analysis: profile target - brand knowledge for insight
  • Image - set of beliefs, ideas & impressions one holds about an object

Marketing Management - An Asian Perspective

4th Edition

slide21

Figure 17.5 Familiarity-Favorability Analysis

  • Target audience’s knowledge
  • Measured using
    • Familiarity scale
    • Favorability scale

Marketing Management - An Asian Perspective

4th Edition

developing effective communications determine the communications objective
Developing Effective Communications- Determine the Communications Objective
  • 4 possible objectives:
  • Category need
  • Brand awareness
  • Brand attitude
  • Brand purchase intention

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications
Developing Effective Communications- Design the Communications
  • Desired response require solving 3 problems:
    • What to say (message strategy)
    • How to say it (creative strategy)
    • Who should say it (message source)

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications24
Developing Effective Communications- Design the Communications

MESSAGE STRATEGY

  • Appeals, themes or ideas
  • Tie to brand positioning
  • Establish points-of-parity or -difference

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications25
Visualize rewards from:

Results-of-use experience

Product-in-use experience or

Incidental-to-use experience

Rewards from product:

Rational

Sensory

Social

Ego satisfaction

Developing Effective Communications- Design the Communications

12 types of messages possible

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications26
Developing Effective Communications- Design the Communications

CREATIVE STRATEGY

  • Communications effectiveness - how message is expressed & its content
  • Creative strategies - how messages translated into specific communication
    • “informational”
    • “transformational” appeals

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications27
Developing Effective Communications- Design the Communications

Informational appeal

  • Product/service attributes/benefits
  • Assume rational processing of communication
  • 2-sided messages
    • Appropriate - overcome negative association
    • Effective - educated & initially opposed
  • Order of arguments - important

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications28
Developing Effective Communications- Design the Communications

Transformational Appeals

  • Non-product benefit/image
  • Stir up emotions - motivate purchase
  • Negative appeals - fear & shame - get people to do or stop doing things
  • Most persuasive - moderately discrepant with what audience believes

Marketing Management - An Asian Perspective

4th Edition

slide29

Developing Effective Communications- Design the Communications

Kraft Singaporeused unexpected visuals todraw attentionto message

Kraft Cheese Singlesis

“The

Body Builder

for Kids”

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications30
Developing Effective Communications- Design the Communications
  • Positive emotional appeal - humor, love
  • “Borrowed interest” device - attract attention & raise involvement with ad
    • Eg cute babies
  • But, may
    • Detract from comprehension
    • Wear out welcome fast
    • Overshadow product

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications31
Developing Effective Communications- Design the Communications
  • How legendary ad taglines listed here were able to bring to life brand themes listed on the left

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications32
Developing Effective Communications- Design the Communications
  • Messages delivered – attractive/popular sources - higher attention & recall
  • Spokesperson’s credibility – important
  • What factors underlie source credibility?
    • Expertise
    • Trustworthiness
    • Likeability

Marketing Management - An Asian Perspective

4th Edition

slide33

Developing Effective Communications- Design the Communications

Osim used Chinese actress Gong Li to promote its health supplement, Nourish Refine

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications34
Developing Effective Communications- Design the Communications

Principle of congruityimplies that

communicators can use good image

to reduce some negative feelings

toward a brand but, in the process,

might lose some esteem with audience

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications35
Developing Effective Communications- Design the Communications
  • Challenges - develop globalcommunications programs:
  • If product appropriate for country
  • If market segment - legal & customary
  • If ad style - acceptable
  • If ads created at headquarters or locally

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications36
Developing Effective Communications- Design the Communications
  • Product – restricted/forbidden – some parts
  • Market segment – countries - Norway - no TV ads directed at children under 12
  • Style – Comparative ads, acceptable in Canada, not common in Singapore
  • Local or Global – global brand image - same advertising in all markets

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications37
Developing Effective Communications- Design the Communications

Managing communications programs in Asia

accentuated - coordinated pan-regionally

  • Regulations
    • Products like alcohol restricted in Muslim countries in Asia
  • Politics
    • Caught in sensitive political issue
  • Economics
    • “Ad literacy”- economic development- region

Marketing Management - An Asian Perspective

4th Edition

developing effective communications design the communications38
Developing Effective Communications- Design the Communications

Managing communications programs in Asia

accentuated - coordinated pan-regionally

  • Infrastructure
    • Marketing infrastructure - feasibility of standardizing communications
  • Culture
    • Asian countries: high-context cultures

Marketing Management - An Asian Perspective

4th Edition

developing effective communications select the communications channels
Developing Effective Communications- Select the Communications Channels

PERSONAL COMMUNICATION CHANNELS:

  • ≥ 2 persons - face-to-face, person-to-audience, telephone or email
  • Advocate channels: sales contact target
  • Expert channels: experts talk to target
  • Social channels: friends talk to target
  • Web-based channel - the blog

Marketing Management - An Asian Perspective

4th Edition

developing effective communications select the communications channels40
Developing Effective Communications- Select the Communications Channels
  • Words about good companies travel fast - about bad ones travel faster
  • Personal influence, great weight in:
    • Expensive, risky or rare buys
    • Product - reflects status or taste
  • Society consists of cliques
    • Facilitates effective communication
    • Insulates clique from new ideas

Marketing Management - An Asian Perspective

4th Edition

buzz marketing
Buzz Marketing

Renée Dye, The 5 Myths of Buzz

  • Only outrageous/edgy product are buzz-worthy
  • Buzz just happens
  • Best buzz-starters - your best customers
  • To profit from buzz, must act first & fast
  • Media & advertising - needed to create buzz

Marketing Management - An Asian Perspective

4th Edition

buzz marketing42
Buzz Marketing

Word-of-Mouth Marketing Tips

  • Involve customers in process of making/delivering product/service
  • Solicit testimonials from customers
  • Tell true stories to customers
  • Educate your best customers
  • Offer fast complaint handling

Marketing Management - An Asian Perspective

4th Edition

developing effective communications select the communications channels43
Developing Effective Communications- Select the Communications Channels

Steps to use personal influence channels:

  • Identify, devote effort - influential entities
  • Create opinion leaders
    • Supply selected people – product, attractive terms
  • Work - community influentials
  • Use influential people - testimonial ad
  • Develop ad - high “conversation value”
  • Develop word of mouth - build business
  • Establish electronic forum
  • Use viral marketing

Marketing Management - An Asian Perspective

4th Edition

developing effective communications select the communications channels44
Developing Effective Communications- Select the Communications Channels

NON-PERSONAL COMMUNICATION CHANNELS:

  • Directed to > one person & include
      • Media
      • Sales promotion
      • Events & experiences
      • Public relations

Marketing Management - An Asian Perspective

4th Edition

developing effective communications select the communications channels45
Developing Effective Communications- Select the Communications Channels
  • Recent growth - non-personal channels - events & experiences
  • Ways - quantify benefits of sponsorship
  • Attention grabbing event - media fragmentation
  • Personal communication, effective
  • But mass media - major means to stimulate personal communication

Marketing Management - An Asian Perspective

4th Edition

developing effective communications select the communications channels46
Developing Effective Communications- Select the Communications Channels

2-step flow of mass media - Implications:

  • Influence on public opinion - not direct, powerful & automatic
  • Challenges notion - consumption styles - “trickle-down”/“trickle-up” effect
  • Direct messages to opinion leaders
  • Changes - erode effectiveness of mass media

Marketing Management - An Asian Perspective

4th Edition

developing effective communications establishing the total marketing communications budget
Developing Effective Communications- Establishing the Total Marketing Communications Budget
  • How to decide on promotion budget?
  • AFFORDABLE METHOD:
    • Budget what they think - can afford
    • Ignores promotion as investment
    • Uncertain annual budget, difficult long-range planning

Marketing Management - An Asian Perspective

4th Edition

developing effective communications establishing the total marketing communications budget48
Developing Effective Communications- Establishing the Total Marketing Communications Budget
  • PERCENTAGE-OF-SALES METHOD:
  • Specified % of sales or sales price

Advantages:

    • What company can “afford”
    • How cost, price & profit - related
    • Stable: competing firms spend similar % on promotion

Marketing Management - An Asian Perspective

4th Edition

developing effective communications establishing the total marketing communications budget49
Developing Effective Communications- Establishing the Total Marketing Communications Budget
  • PERCENTAGE-OF-SALES METHOD:

Disadvantages:

  • Sales determine promotion, not result
  • Budget set by funds, not opportunities
  • Depend - yearly sales, affect planning
  • Choice of % - no logic
  • Budget not what product/territory deserves

Marketing Management - An Asian Perspective

4th Edition

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Developing Effective Communications- Establishing the Total Marketing Communications Budget
  • COMPETITIVE-PARITY METHOD
  • Budget set - share-of-voice parity with competitors
    • Competitors’ expenditures - collective industry wisdom
    • Competitive parity prevents promotion wars
  • Neither argument - valid

Marketing Management - An Asian Perspective

4th Edition

developing effective communications establishing the total marketing communications budget51
Developing Effective Communications- Establishing the Total Marketing Communications Budget
  • OBJECTIVE-AND-TASK METHOD:
  • Develop promotion budgets
    • Define specific objectives
    • Determine tasks
    • Estimate costs = proposed budget

Marketing Management - An Asian Perspective

4th Edition

developing effective communications establishing the total marketing communications budget52
Developing Effective Communications- Establishing the Total Marketing Communications Budget
  • OBJECTIVE-AND-TASK METHOD:
  • Advantage: define relationship among money spent, exposure levels, trial rates & regular usage
  • Weight assigned to alternatives like product improvement depends on where products are in life cycles

Marketing Management - An Asian Perspective

4th Edition

deciding on the marketing communications mix characteristics of the marketing communications mix
Deciding on the Marketing Communications Mix – Characteristics of the Marketing Communications Mix

ADVERTISING:

  • Build up long-term product image
  • Trigger quick sales
  • Reach geographically dispersed buyers
    • Pervasiveness
    • Amplified expressiveness
    • Impersonality

Marketing Management - An Asian Perspective

4th Edition

deciding on the marketing communications mix characteristics of the marketing communications mix54
Deciding on the Marketing Communications Mix – Characteristics of the Marketing Communications Mix

SALES PROMOTION:

  • Draw strong & quick buyer response
  • Short-run: highlight offers & boost sales
  • 3 distinctive benefits:
    • Communication
    • Incentive
    • Invitation

Marketing Management - An Asian Perspective

4th Edition

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Deciding on the Marketing Communications Mix – Characteristics of the Marketing Communications Mix

EVENTS & EXPERIENCES:

Advantages:

  • Relevant
  • Involving
  • Implicit

Marketing Management - An Asian Perspective

4th Edition

deciding on the marketing communications mix characteristics of the marketing communications mix56
Deciding on the Marketing Communications Mix – Characteristics of the Marketing Communications Mix

PUBLIC RELATIONS & PUBLICITY:

  • Well-thought-out program + other communication-mix element – effective
  • 3 distinctive qualities:
    • High credibility
    • Ability to catch buyers off guard
    • Dramatization

Marketing Management - An Asian Perspective

4th Edition

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Deciding on the Marketing Communications Mix – Characteristics of the Marketing Communications Mix

PERSONAL SELLING:

  • Most effective - later stages of buying process
  • 3 distinctive qualities:
    • Personal interaction
    • Cultivation
    • Response

Marketing Management - An Asian Perspective

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Deciding on the Marketing Communications Mix – Characteristics of the Marketing Communications Mix

DIRECT MARKETING:

  • Direct mail, Internet marketing etc
  • 3 distinctive characteristics
    • Customized
    • Up-to-date
    • Interactive

Marketing Management - An Asian Perspective

4th Edition

deciding on the marketing communications mix factors in setting the marketing communications mix
Deciding on the Marketing Communications Mix – Factors in Setting the Marketing Communications Mix

TYPE OF PRODUCT MARKET:

  • Communications mix allocations vary between consumer & business markets
    • Consumer market: spend more promotion + advertising
    • Business market: spend more on personal selling

Marketing Management - An Asian Perspective

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Deciding on the Marketing Communications Mix – Factors in Setting the Marketing Communications Mix

TYPE OF PRODUCT MARKET:

  • Advertising help business market too:
  • Introduce company & products
  • Explain new features
  • Reminder advertising - cheaper than calls
  • Brochures - contact details generate leads
  • Ads legitimize company & products
  • Remind, teach, reassure buyers of purchase

Marketing Management - An Asian Perspective

4th Edition

deciding on the marketing communications mix factors in setting the marketing communications mix61
Deciding on the Marketing Communications Mix – Factors in Setting the Marketing Communications Mix

TYPE OF PRODUCT MARKET:

  • Personal selling help in consumer market too:
    • Increased stock position
    • Enthusiasm building
    • Missionary selling
    • Key account management

Marketing Management - An Asian Perspective

4th Edition

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Deciding on the Marketing Communications Mix – Factors in Setting the Marketing Communications Mix

BUYER-READINESS STAGE:

  • Communication tools vary in cost-effectiveness - different stages of buyer readiness

PRODUCT LIFE-CYCLE STAGE:

  • Communication tools also vary in cost-effectiveness at different stages of the product life cycle

Marketing Management - An Asian Perspective

4th Edition

slide63

Figure 17.6

Cost-Effectiveness of Three Different Communication Tools at Different Buyer-Readiness Stages

Marketing Management - An Asian Perspective

4th Edition

deciding on the marketing communications mix measuring communications results
Deciding on the Marketing Communications Mix – Measuring Communications Results
  • Know outcomes & revenuesfrom communications investments
  • Behavior change measures - capture real payoff
  • Measure its impact on target audience
  • Figure 17.7 - example of good feedback measurement

Marketing Management - An Asian Perspective

4th Edition

slide65

Figure 17.7

Current Consumer States for Two Brands

Marketing Management - An Asian Perspective

4th Edition

managing the integrated marketing communications process coordinating media
Managing the Integrated Marketing Communications Process – Coordinating Media
  • Integrated marketing communications (IMC)
    • Marketing communications planning
    • Recognizes value of comprehensive plan
  • Media coordination - across & within media types
  • Powerful approach - multiple-vehicle, multiple-stage campaign

Marketing Management - An Asian Perspective

4th Edition

slide67

Accenturerebranding campaign utilizedfully integrated communications program

Jan 2001

TV, print, Internet & poster ads - 48 countries

Jan - Mar 2001

>6,000 TV Ads

1,000 print adsin global markets

A Tiger Woods ad - part of Accenture rebranding campaign

Marketing Management - An Asian Perspective

4th Edition

managing the integrated marketing communications process coordinating media68
Managing the Integrated Marketing Communications Process – Coordinating Media
  • Multiple media deployed - tightly defined time frame
    • Increase message reach & impact
  • Coordinate online & offline communication activities

Marketing Management - An Asian Perspective

4th Edition

coordinating media to build brand equity
Coordinating Media to Build Brand Equity

Problem: Weak Brand Links

  • Build brand equity, communication effects by advertising - linked to brand
  • Often, such links - difficult to create WHY?
    • Competitive clutter
    • Ad content & structure
    • Consumer involvement

Marketing Management - An Asian Perspective

4th Edition

coordinating media to build brand equity70
Coordinating Media to Build Brand Equity

Solution: Strengthen Communication Effects

  • 3 potentially more effective strategies:
    • Brand signatures
    • Ad retrieval cues
    • Media interactions

Marketing Management - An Asian Perspective

4th Edition

managing the integrated marketing communications process implementing imc
Managing the Integrated Marketing Communications Process – Implementing IMC
  • To facilitate one-stop shopping & integrated marketing, agencies acquire
    • Promotion agencies
    • PR firms
    • Design consultancies
    • Web site developers &
    • Direct mail houses

Marketing Management - An Asian Perspective

4th Edition

managing the integrated marketing communications process implementing imc72
Managing the Integrated Marketing Communications Process – Implementing IMC
  • IMC produce
    • Stronger message consistency
    • Greater sales impact &
    • Much lower total communications cost

Marketing Management - An Asian Perspective

4th Edition

how integrated is your imc program
How Integrated is Your IMC Program?
  • 6criteria to determine if communications are truly integrated:
      • Coverage
      • Contribution
      • Commonality
      • Complementarity
      • Versatility
      • Cost

Marketing Management - An Asian Perspective

4th Edition

slide74

Final discussion

Marketing Debate –

What Is The Biggest Obstacle To Integrating Marketing Communications?

Although integrated marketing communications is a frequently espoused

goal, truly integrated programs have been hard to come by. Some critics

maintain the problem is an organizational one - the agencies have not done

a good job of putting together all the different teams & organizations

involved with a communications campaign. Others maintain that the biggest

problem is the lack of managerial guidelines for evaluating IMC programs.

How does a manager know when his or her IMC program is satisfactorily

integrated?

Take a position:The biggest obstacle to effective IMC programs is a lack of

agency coordination across communication units versus The biggest obstacle

to effective IMC programs is a lack of understanding on how to optimally

design & evaluate such programs.

Marketing DiscussionPick a brand & go to its Web site. Locate as many

forms of communications as you can find. Conduct an informal

communications audit. What do you notice? How consistent are the different

communications?

Marketing Management - An Asian Perspective

4th Edition

video links
Video Links

Primary Video to watch:

  • Motorola (14:28 min)

Secondary Video to watch:

  • Eaton (9:51 min)

Click here to watch the video clips from the US Website.

Marketing Management - An Asian Perspective

4th Edition