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Global Marketing Management Global Communications Decisions

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MKTG 3215-090 Spring 2013 Mrs. Tamara L. Cohen Global Marketing Management Global Communications Decisions & Global Promotions Decisions Class # 11 – PowerPoint PPT presentation

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Title: Global Marketing Management Global Communications Decisions


1
Global Marketing Management Global
Communications Decisions Global Promotions
Decisions
  • MKTG 3215-090
  • Spring 2013
  • Mrs. Tamara L. Cohen

Class 11
2
Global Communications Decisions
3
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.

4
KEY CONCEPTS
  • Sales Promotions
  • International Public Relations
  • International Advertising Strategy
  • Regional segmentation
  • Media planning

5
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 demos, samples, coupons, gifts, product
    tie-ins, contests, sponsorships, p.o.p.
  • short-term efforts directed to consumer or
    retailer, to achieve specific objectives e.g.
    consumer product trial / purchase, encouraging
    stores to stock product
  • In markets with media limitations, of
    promotional budget allocated to sales promotions
    may have to
  • Product sampling - effective when product is new
    / small market share

P.O.P.
6
Product sampling Le Relais Bébés Nestlés
effective campaign to penetrate French baby market
7
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

8
TOP 10 GLOBAL MARKETERS
rank 2009 ADVERTISER HEADQUARTERS WORLDWIDE ADVERTISING SPENDING 2009 ( billions)
1 Proctor Gamble Co. Cincinnati, OH 9.73
2 Unilever London Rotterdam 5.72
3 L'Oreal Clichy, France 4.04
4 General Motors Corp. Detroit, MI 3.67
5 Toyota Motor Corp. Toyota City, Japan 3.20
6 Coco-Cola Co. Atlanta, GA 2.67
7 Johnson Johnson New Brunswick, NJ 2.60
8 Ford Motor Co. Dearborn, MI 2.45
9 Reckitt Benckiser Slough, U.K. 2.37
10 Nestlé Vevey, Switzerland 2.31
9
11 - 30 GLOBAL MARKETERS
  • Volkswagen
  • Honda Motor Co.
  • Mars Inc.
  • McDonalds Corp.
  • Sony Corp.
  • GlaxoSmithKline
  • Deutsche Telekom
  • Kraft Foods
  • Nissan Motors Co.
  • Walt Disney
  1. Danone Groupe
  2. General Electric
  3. Time Warner
  4. PSA Peugeot Citroen
  5. Pfizer
  6. Yum Brands
  7. PepsiCo
  8. Maxingvest
  9. Panasonic Corp.
  10. Ferrero

10
(No Transcript)
11
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
  • Macys (upscale dept 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.

12
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

13
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

14
Product Attributes Benefit of Segmentation
  • Different cultures usually agree on benefit of
    primary function of product / service
  • Other features psychological attributes of item
    can have significant differences
  • cameras
  • yogurt - Dannon / Danone
  • almonds - Blue Diamond
  • No 2 markets will react the same
  • each has its own set of differences
  • each will require different marketing approach
    strategy

15
4. Regional Segmentation
Economies of Scale
  • 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.

16
Global Advertising the Communications
Process(developing an effective message)
  • Different cultural contexts can increase
    probability of misunderstandings
  • Effective communication
  • demands existence of psychological overlap
    between sender receiver
  • NEVER assume that if it sells well in one
    country, it will sell in another

17
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 Frenchs mustard
    boycotted in US in 2003 when France didnt 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)

18
(No Transcript)
19
Worlds Highest Paid Athletes in 2012
  1. Floyd Mayweather
  2. Manny Pacquiao
  3. Tiger Woods
  4. LeBron James
  5. Roger Federer
  6. Kobe Bryant
  7. Phil Mickelson
  8. David Beckham
  9. Cristiano Ronaldo
  10. Peyton Manning

85 m BOXING 62 m BOXING 59 m GOLF 53 m
BASKETBALL 53 m TENNIS 52 m BASKETBALL 48
m GOLF 46 m SOCCER 43 m SOCCER 42 m
FOOTBALL
20
Legal Constraints
  • Comparative advertising - not allowed in Germany,
    Belgium, Luxembourg okay in UK, Spain, Portugal
    restricted in India, Philippines
  • Advertising of specific products - restrictions
    on advertising pharmaceuticals, toys, tobacco,
    liquor
  • Control of advertising on TV
  • Limitations on length number of commercials
  • Internet services - EU addressing regulation
    should TV rules apply?
  • Special taxes that apply to advertising

21
Liquorice Allsorts language controversy
  • 1980s Government forbade mixing languages in
    advertising, so banned
  • LEKKERISH LIQUORICE

22
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 cover total
    advertising project
  • Existing perceptions based on tradition
    heritages often hard to overcome
  • Subcultures
  • Changing traditions

23
5. Media planning
  • Availability - huge variations among countries
  • Cost - agents negotiation
  • Coverage - difficult to reach some sectors lack
    of info re coverage
  • Lack of market data - accurate data uncertain
  • Newspapers - too many in some countries, too few
    in others
  • Magazines - few with large circulation best for
    technical products
  • Radio TV - major communications media in most
    countries
  • Satellite cable TV - increasing importance

24
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
    Johns Pizza blog
  • Other media e.g. cinema billboards (high
    illiteracy)

25
Giant 3-D murals for flip flop launch bus
stop
Chocolate billboard
  • Red Bull car
  • Supermarket trolley

26
El Toro billboards originally advertising Osborne
Brandy in Spain
                                                
                                                  
                                                  
  
27
The original London Black Taxicab
  • Now they come in all colors, though the iconic
    shape is still the same.

28
(No Transcript)
29
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)

gorilla
30
                                                
                                                  
                                          
Need a new BBQ?
Mr. Clean
Elevator ad
31
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

32
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.

33
break
34
Global Promotions Decisions
35
Promotionsin the Marketing Mix
  • Promotion business of COMMUNICATING with
    customers
  • Product benefits must be communicated to
    customers to generate sales and profits.
  • Promotional Mix blends
  • advertising
  • public relations
  • sales promotion
  • selling GLOBAL
    context

36
Selling overseas
  • the expatriate experience

37
KEY CONCEPTS
  • Relationship marketing
  • Expatriate
  • Virtual Expatriate
  • Repatriation
  • Third-Country Nationals
  • Local Nationals
  • Separation allowance

38
Americans Abroad
  • Number of Americans living abroad has steadily
    grown over past decade, as more people have
    become interested in living abroad, exploring
    another language and culture, or finding an
    overseas job.
  • According to recent estimates by the U.S. State
    Department, there are 3 - 6 million Americans
    living overseas.

39
Global PerspectiveAre International Assignments
Glamorous?
  • Job security
  • Adjustment to other cultures family
    considerations
  • Readjustment when return home reentry culture
    shock
  • Will an international assignment really help
    your career?
  • International sales force may be the
    ultimate way to Think global. Act local.

40
Designing the Sales Force
  • Relationship marketing
  • Decisions about sales personnel
  • numbers
  • characteristics
  • assignments
  • Different markets affect direct sales customer
    approaches
  • Territory allocation details after personnel
  • Customer call plans decisions fixed

41
Recruiting marketing sales personnel
  • Largest personnel requirement abroad for most
    companies is sales force.
  • Expatriates
  • Virtual expatriates
  • Local nationals
  • Third-country nationals

42
2012 The 30 Most Expensive Cities to Live in
the World as EXPATS
  • Tokyo
  • Luanda
  • Osaka
  • Moscow
  • Geneva
  • Zurich
  • 6. Singapore
  • Ndjamena
  • Hong Kong
  • Nagoya
  1. Sydney
  2. São Paulo
  3. Rio de Janeiro
  4. Bern
  5. Melbourne
  6. Shanghai
  7. Beijing
  8. Oslo
  9. Perth
  10. Libreville
  1. Copenhagen
  2. Seoul
  3. Canberra
  4. Brisbane
  5. London
  6. Khartoum
  7. Adelaide
  8. St. Petersburg
  9. Caracas
  10. Shenzhen

ASIA
EUROPE
AFRICA
MIDDLE EAST
AUSTRALIA
AMERICAS
43
Best Countries to be an Expat
  1. Thailand
  2. Saudi Arabia
  3. Singapore
  4. Egypt
  5. Switzerland
  • Important factors to expats
  • health care
  • education
  • quality of life
  • social life
  • income

44
Selecting Sales Marketing Personnel
  • Management must define expectations
  • Most important requirements
  • maturity
  • emotional stability
  • breadth of knowledge (language skills)
  • positive outlook
  • flexibility
  • cultural empathy
  • energetic enjoy travel (stamina)
  • Selection mistakes can be costly
  • Managers culture affects personnel decisions

45
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

46
Personal Selling Tips
  • BELGUIM be able to identify decision
    makers. Flanders (Dutch) group decisions common
    Wallonia (French) high level execs have final
    say
  • CHINA expect to continue negotiations
    after deal is signed. Signing contract is just
    beginning of business relationship. Both sides
    expected to continue working together afterwards.
  • COLOMBIA business counterparts want
    personal relationship, strong friendship. Be sure
    to keep same sales representatives throughout
    negotiation or risk losing deal.
  • GERMANY be prepared with data to support
    sales proposition. German businessmen unimpressed
    with flashy presentation, so keep materials
    serious detailed, no exaggeration.
  • INDIA maintain flexible schedule to
    accommodate casual punctuality. Rigid hierarchy
    dictates decisions made only by highest level
    boss.

47
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 reps 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. Dont send
    representative to meet Korean exec of higher
    status could be viewed as disrespectful.
  • THAILAND emphasizes non-conflict. Dont
    make assertive demands in sales pitch.

48
Motivating sales personnel
  • National differences must always be considered
    when motivating marketing force
  • Individual incentives?
  • Communications important in maintaining high
    levels of motivation (NOT out of sight, out of
    mind)
  • Company needs to clarify opportunities for
    growth within firm
  • Fear of being forgotten

49
Designing Compensation Systems for Expatriates
  • Fringe benefits can be 35-60 salary in Europe
    tax structure important e.g. expense accounts in
    high-tax countries
  • Compensations comparisons between home office
    abroad important what would have received at
    home office
  • Short-term assignment compensation
    separation allowances
  • Using compensation program to recruit, develop,
    motivate, or retain personnel

50
Evaluating Controlling Sales Representatives
  • US emphasis on individual performance
  • easily be measured by sales revenues generated
  • In many countries evaluation more complex
  • where teamwork favored over individual effort
  • US primary control tool used by sales managers is
    incentive system
  • In other countries corporate control frequent
    interactions with peers supervisors are means
    of motivation control

51
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

52
Designing Compensation Systems for a Global
Sales Force DONT
  • 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

53
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

54
Overcoming Reluctance to Accept a Foreign
Assignment
  • Concerns for career
  • absence may adversely affect opportunities for
    advancement
  • Concerns for family
  • childrens education
  • isolation from family friends
  • proper health care
  • potential for violence
  • Special compensations packages

55
Reducing Rate of Early Returns
  • Evaluation of employees family
  • 75 of families sent abroad experience adjustment
    problems with children or marital discord
  • Cross-cultural training for families as well as
    employee
  • Local ombudsman
  • - someone experienced in country
  • - anticipate challenges be ready with
    solutions

56
5 steps to Successful Expatriate Repatriation
  • Commit to reassigning expatriates to meaningful
    positions
  • Create mentor program typically senior execs
    monitor co. activities, keep up communication,
    liaise between expat HQ depts
  • 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

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

58
Do YOU have cultural skills?
  1. Do you communicate respect verbally
    non-verbally, conveying sincere interest in
    people their cultures?
  2. Do you tolerate ambiguity absorb frustrations
    with cultural differences?
  3. Do you display empathy by understanding others
    needs differences from their points of view?
  4. Do you remain non-judgmental about others
    behavior?
  5. Do you recognize others culture values as
    influences on their perceptions, evaluations,
    judgments?
  6. 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 Intl
  • Some companies believe in international
    experience
  • early in persons career
  • integral part of entry-level development programs
  • Many companies committed to making foreign
    experience an integrated part of a successful
    corporate career

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

61
Keys to success in Global Promotions Decisions
  • Companys sales force is front line of marketing
    organization
  • Recent emphasis on using local personnel
    operating in own lands highlights importance of
    adapting managerial techniques to local needs
  • Development of effective marketing organization
    requires careful recruiting, selecting, training,
    motivating, compensating of expatriate
    personnel families
  • Most practical method of maintaining efficient
    international sales marketing force is careful
    planning at all stages of career development

62
  • Next class Global Distribution Decisions
  • Global Pricing Decisions
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