INTERNATIONAL ADV MC 4303
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Date Created: 09/23/15
CHAPTER I 1 W V Why do companies go International To expand their sales increase pro t To acquire resources To diversify their sources of sales and suppliers Global Marketing Communication Tools Personal Selling It s persontoperson communication in which a seller informs and educates prospective customers and attempts to in uence their purchase choice Public Relations Publicity as PR tool Publicity like advertising is non personal communication to a mass audience but unlike advertising publicity is not directly paid for by the company that oys the publicity Sales Promotions Consists of all marketing activities that attempt to stimulate quick buyer action or in other words attempt to promote immediate sales of a product thereby yielding the name sales promotions Consumeroriented sales promotions include coupons free samples rebates Sponsorship Marketing Is the practice of promoting the interest of a company and its brands by associating the company with a speci c event eg golf tournament or a charitable cause eg the leukemia society Advertising Is nonpersonal communication It is paid for by an identi ed sponsor Involves either mass communication or direct toconsumer communication Mass media via newspaper magazine radio television and other media billboard bus stop signage Direct to consumer communication via postal or electronic mail The globalization of Markets Global Market The globalization of Markets Refers to the merging of historical distinct and separate national markets into one huge global marketplace Market Oriented Vs Product Oriented lVIarket Orientation Make what we can Sell market oriented rm s relationship with its 3 V customer is a reciprocal twoway relationship b Seek our customer needs and wants and then develop and provide products that satisfy U 0 V previously identi ed or anticipated shortages and desires Many global advertising are not market oriented i They search for one standard product to assumed universal global consumers ii Although in the end it seems that adaptations are needed Product Orientation If we build it they will come Good product will sell themselves d 6 Business that adopt a product orientation are most successful when demand exceeds supply and competitive pressure are few Many global advertising are product oriented Identify the Marketing Communication paradoxes in particular the advertising paradoxes Value Paradox Paradoxes are statements that seem contradictory but that are actually true Value paradoxes are found in the opposing values in value systems such as freedom beloging traditioninnovation orderchaos Paradoxical values are found within cultures and between cultures Global Local Paradox Example People worldwide drinking CocaCola or wearing jeans may result in thinking they are becoming the same but there is evidence that to consumers the local is more meaningful than the global In the US 93 of music sold was by local artists In Japan it was 74 and across Europe over 50 Technological Paradox Technological development is increasing global but the argument that technological development makes us global and lead to similar needs for similar product is not correct There is a great variety in adoption of technological innovation and usage of technological products The Media Paradox Pro grammin g The growing number of satellite is suppose to create a global village in which anybody can receive any TV channel This is theory In reality there is no viewers 39eedom Increasingly local cable companies are deciding what local viewers will see usually local programs A satellite dish is no solution as a variety of techniques and coding system across countries makes it virtually impossible to receive what is available 6 Identify the paradoxes in marketing theory The concept of marketing and many theories of Consumer Behavior with respect to consumption buying and communication originated in the US and have been copied and used by teachers in many other countries There is little evidence of meaningful adaptations of these theories to other countries As a results numerous students of marketing and advertising have learned marketing practices and theory that re ect American values and thinking patterns that may not always t well in their own environment Sales Promotions and Bargaining Theory Susceptibility to bargains and promotions will cause feelings of excitement of finding a bargain or a promotion which will eventually trigger compelling urge to use these promotions and to buy more Global Markets The current consensus is that although the world is moving towards global markets the continuing persistence of cultural and economic differences among nations acts as a major brake on any trend toward global consumer tastes and preferences Local Markets are People Global Markets are Products Market are people not products There may be global products but there are not global people There may be global brands but there are no global motivations for buying those brands Examples The sony walkman Ipods Many advertisers think that one standard message is suf cient7 This is a paradoxical behavior Local Markets are People Global Markets are Products In addition trade barriers and differences in product and technical standards also constrain a rm39s ability to sell a standardized product to a global market a corporate culture than with the culture of markets and nations Think about Market oriented vs product oriented Market Orientation lVIake what we can Sell market oriented rm s relationship with its customer is a reciprocal twoway relationship Seek our customer needs and wants and then develop and provide products that satisfy previously identi ed or anticipated shortages and desires Many global advertising are not market oriented The decision to standardize has more to do with They search for one standard product to assumed universal global consumers Although in the end it seems that adaptations are needed Product Orientation If we build it they will come Good product will sell themselves Business that adopt a product orientation are most successful when demand exceeds supply and competitive pressure are few Many global advertising are product oriented The Universal and the Particular Marketing and advertising textbooks generally draw from social science psychology sociology and economics Theories are generally presented as universal and do not differentiate for the particularities of other countries Motivational segmentation theory In reality only a few global brands most re ect culture of home country coca cola mc donalds Focus on a Unique Individual Theories of buying behavior decision making and communication behavior generally describes individuals of western societies who are de ned as unique personalities Modern branding theories was developed in the US and UK and uses concepts from Western psychology Metaphors such as brand identity and brand personality are exported to countries in which words like identity and brand personality do not exist in the local languages ie Asia The Paradoxes in Consumer Trends Many of what is presented as consumer trends to be exploited in marketing are based on paradoxes Hedonism as a trend with respect to food can never be a global trend It is related to what the individual should do versus actually does do with respect to food What is desirable or desired with respect to food and health varies by culture Example In France and Spain food is more an element of social and family life 7 Research Paradox For a long time international advertising agencies in the US have thought that emotional or feeling appeals would travel better than 1hinking appeals because of the universal of human values Thus much standardized international advertising has included appeals like happiness and love a European companies focus more on innovative product attributes that communicated in a culturally relevant way It is paradoxical that global advertising prefer to develope what is universal instead of what should appeal to speci c people in particular Effective advertising needs a shared culture Common assumption are that an advertisement will be effective if the viewers or reader decodes the advertisement successfully there is a meaningful transfer of properties Receiver of the message must use the same conventions to evaluate the stimulus in order to be able t o formulate the response Thus developing one single idea for the whole world or one global stimulus only happen if sender and receiver share one culture The effectiveness of a rm39s intemational communication can be jeopardized by Cultural barriers Source and country of origin effects Noise levels competitors Effective advertising needs a shared culture For cost ef ciency reasons companies prefer to standardized products and advertising However products may be similar but usage and buying motives vary for most products Example Levi39s jeans How advertising works There are continues discussion among researcher across countries about how advertising works Because the US has a longer research history than other countries its methods and styles are often used in cross cultural advertising research Research Paradox By de nition value and lifestyle research is cultural bound yet studies based on the value pattern of one culture are indiscriminately exported to other culture Value and lifestyle studies developed in the US are exported to other cultures For example Belgian value studies have been sold to the Netherlands although the value system of these markets are very different General nding of cross cultural studies are that advertising styles vary widely across nations but very few studies explain why When testing advertising companies try to economize by selecting one or two countries in an area like Europe or Latin America 6 V Conclusion One can act globally and that is what companies do When they globalize they produce and distribute globally For global communication however thinking must be local to be effective it must focus on the particular not on the universal CHAPTER 2 1 Brand de nition benefits and factors Trade mar Site to produce uniqueness Proprietary visual emotional rational image associated with a company or product Intangible asset that produces added bene ts for business Association network in the mind of the consumer Basic Brand Types Corporate branding a Corporate name used for all products and services Endorsement branding b Subbrands linked to corporate brand or umbrella brand Product branding c Each product or service is individually branded for its target market 2 Global Brand A brand available across multiple geographies Brands with the same strategy in all target markets Brands that consumers can nd under the same name in multiple countries 3 Characteristics of global branding Available in most countries in the world Same strategic principles positioning marketing in all markets Carries the same brand name andor logo Marketing mix may vary eg different products but similar positioning in all countries Substantial market share in all countries Comparable distribution intensity Comparable brand loyalty Visual dominance 4 Perception of global brands by consumers Quality Assurance A universal function of a brand for customer is quality assurance As value however quality assurance is of varying importance in different cultures Brand Loyalty These values are conveyed by marketing communication The brand owner has the opportunity to control the meaning the brand has for people Country of Origin A global brand has originated in a particular country In some cases in spite of being a global it is associated with that nation This can be beneficial if the image of the country remain constant In case of change both upgrading will in uence the brand39s image and acceptance Examples Japan from shoddy to high quality The American values have become ambiguous for some they are positive for other s negative Nationalism Product Familiarity Global or local the importance of global image varies by culture and product category Successful global brands can be perceived as M in certain countries for example Nivea a brand of Beiersdof in Germany or Colgate which originated in the United State If a brand has been part of the family for generations it has become ingrained in people39s lives Most strong global brand are old The Colgate company began in 1806 Nivea originated in 1911 and Clorox in 1913 Brand s values Same as three above Brand types 1 Single product brand or monobrands An exclusive name is assigned to only one product The brand 39s main purpose is to add value to the product The vast majority of existing brands were developed as single productbrand that were built to position products within national boundaries Range brands or line brands A group of product is ranged under one name under one promise or positioning The purpose is to give a product a place in a range of other products An advantage is that products can share brand awareness and meaning Umbrella brands or corporate brands A group of product is ranged under one name under one promise or positioning The name can be the company name or an umbrella brand name The corporate name can be used as an endorsement to indicate the source U V 0 V N W 7 Brand strategies 1 Cultivate established local brands a Develop national brand into international brand CocaCola 2 Global concept local adaptations b One concept local products with local values lVIcDonald s 3 Create new brands c Develop global brands for global needs Google 4 Purchase local brands and internationalise d Use local brands first and internationalise them Lu cookies 5 Globalise by developing extensions e Reap bene ts of global promotion amp advertising Nivea 6 Employ multilocal strategy endorsement Nestle 8 Trends in international branding 1From monobranding to endorsement branding a The cost of launching and developing new brands is so enormous that international l 39 39 39 choose strategies 2Branding rationalization or concentration on core brand Brand rationalization means changing diverse multinational portfolios into a limited number of global brands Rationalizing brand portfolios implies harmonizing brand names but also deleting local ran s There is some risk in deleting local brands as it leaves holes in the market 6 V O V G V 9 Modes of entry foreign market Exporting Most manufacturing rms begin their global expansion as exporters and only later switch to another mode for servicing a foreign market Licensing A licensing agreement is an arrangement whereby a licensor grants the rights to intangible property to another entity the licensee for a speci ed time period and in return the licensor receives a royalty fee from the licensee Intangible property includes patents inventions formulas processes designs copyrights and trademarks Franchising El Franchising is basically a specialized form of licensing in which the franchisor not only sells intangible property to the franchisee but also insists that the franchisee agree to abide by strict rules as to how it does business Joint Ventures El A joint venture is the establishment of a rm that is jointly owned by two or more otherwise independent rms CHAPTER 3 1 Culture definition Somethingthat is shared by all or almost all members of some social group Something that the older members ofthe group try to pass on to the younger generation And something that shapes behaviors such as morals laws customs or structure our perception of the world In advertising cultural differences usually refers to the expressions of culture 2 Determinant of culture i Values and attitudes ii Manners and customs iii Physical environment iv Education v Language vi Religions and their implications vii Physical and environment 3 Hofstede s Manifestations of culture look in book and slide end of chap i Symbols ii Heroes iii Rituals iv Values 4 Selective perception Perception is the process by which each individual selects organizes and evaluates stimuli from the external environment to provide meaningful experience for him or herself Selective perception means that people focus on certain features of their environment to the exclusion of others 5 Stereotypes i Functional and dysfunctional Stereotyping Stereotyping 7 means mentally placing people in categories Functional 2 Dysfunctional b Functional 7 if we accept it as a natural process to guide our expectations b The German are punctual b Dysfunctional 7 if we use it to judge individuals incorrectly seen in them only as a part of a group b The British are cold gt Advertising depends on the use of effective stereotypes because it must attract attention and create instant recognition 6 Cultural Distance Geographic and cultural or psychic distance among countries may not be the same Key concept which can affect international advertising strategy and conduct The largest the cultural distance between two countries the more different they will be from each other Conclusion gt Global communication has indeed in uenced the relationship among some people worldwide resulting in several global cultures such as the corporate cultures and professional cultures gt Large corporations tend to shape a corporate culture with shared practice way of dressing meeting communicating and presenting gt Cultural values determine the way people think and behave gt International marketing and advertising people must understand theses differences because they in uence the way advertising is made and perceived gt Cultural universals exist only when formulated in abstract terms b When dealing with people of cultures other than our own stereotyping selective perception can inhibit our proper understanding of people39s behavior b The art of advertising is to develop symbols or advertising properties that must be understood by a target audience b There is no global culture composed of people with identical values CHAPTER 4 l Etic and Emic Etic It refers what is general in cultures Emic What is specific in one or more cultures 2 Ethnocentricism VS Polycentricism Ethnocentrism Refers to the belief that our culture is the best everyone else is wrong or not as good as we are Polycentrism I Refers to the acceptance that other cultures are as good as ours Cross country literacy essential for int business 3 Animosity 4 Value Orientation a Value orientation Kluckhohn Strodtbeck Values 1 Perception of human nature 2 Relationship of manto his environment 3 Time orientation 4 Orientation toward the environment 5 Orientation toward the human relationship 5 Hosftedes cultural dimensions Power distance 7 I Refers to how people within the organization feel about differential of power I In a high power distance country status titles formality are all very important I Scale is from equal small power distance to extremely unequal large power distance Individualism vs Collectivism Individualism Each person controls hisher own destiny I People believe in personal achievement I People believe that is very important to be independent self reliant and self suf cient Collectivism Culture s emphasis is in the community tradition and public good I Families are very important I There is a great tendency for team work I They believe that different groups have different values Masculinity vs Femininity Masculinity Quantity of Life I Dominant value is to emphasize assertiveness and acquisition ofmaterial goods while not particularly emphasizing concern for people I They emphasize work over time with family I They live to work Femininity Quality of Life Dominant values emphasize relationship among people concern for others and overall quality of life I They valuejob satisfaction I They work to make a living High Low Uncertainty Avoidance High Uncertainty Avoidance I Morejob security I Formal rules Low Uncertainty Avoidance I Job mobility I Willingness to take risks Long Term Orientation Long term orientation is the extent to which a society exhibits a pragmatic futureoriented perspective rather than a conventional historic or shortterm point of view Values Perseverance Ordering relationship by status Having a sense of shame LTO Collectivism Results in family ties Paternalism They adapt to other cultures Short Term Orientation Values 7 Values Personal steadiness and stability Respect for tradition and reciprocation of greeting and favors and gifts Focus on pursuit of happiness rather than on pursuit of peace of mind 6 Hall s cultural Dimensions Time Dimension I Different cultures have different perception of time I Some cultures perceive time as linear others as a exible notion I Cultures arePolychronic or monochronioc Context of Communication It refers to the manner in which cultures tend to communicate I Communication can be precise or it can be implicit I Cultures areHigh or Low Context LowContext Communication is very clear Emphasis is in written rules I Content is important I Little body language and nonverbal cues I Minimum use of silence HighContext Communication is more implicit less precise or clear I Context is important I Body language nonverbal cues silence and eye contact are all important I Trust and relationships are important Proxemics Cultures have different cultural patterns when establishing personal distance between people I Specific distances are defined by the cultural norms I In some cultures people touch each other In other cultures people avoid touching 7 Be familiar Con guration of Dimensions and the speci c characteristics T aylorMade Used PatternAdvertising to Promote its Ads in the US and UK CHAPTER 5 2 The value Concept Values are said to be basis for segmentation and positioning decision I ue is de ned by Rokeach as an enduring belief that one mode of conduct or endstate of existence is preferable to an opposing mode of conduct or endstate of existence I A value system is a learned organization of principles and rules to help one choose between alternatives resolve con icts and e decisions gt Values are taught at an early age gt This is the desimble as opposed to the desired The desired is not necessarily 3 Rockage s perceptions of values Ro age assumes 1 That the total number of values a person possesses is relatively small 2 That all people everywhere posses the same value to different degree 3 That the antecedent ofhuman values can be traced to culture society and its institutions 4 Rockage s levels ofvalues a Terminal lnstrume I Terminal Refers to desirable endstates of existence I What people refers to as central or core values Instrumental 7 It refers to desirable modes of conduct Motivators to reachthe endstate of existence Social norms or What one ou t to do hoW one ought to behave are requirement for behavior in a speci c society al values including norms of people or society refers to modes of behavior 5Factors impacting 6Value shi causes OV Sense of belonging Excitement Fun and enjoyment of life Warm relationship With others llment Sense of accomplishment Being Well respected Security wsswevwrs r I w 397 9 Self respect 8 M lL OV 7 1 Security 2 Selfrespect 3 Being Well respected 4 Selfful llment 5 Sense ofbelonging 6 Excitement 7 9 Sense of accomplishment 10 Value structure Map I Value Structure Map VSM describes how a particular group of subjects tends to perceive or think about a speci c product or bran I A value structure map links the product39s attributes and bene ts to values 39 utes canbe concrete or abstract Bene ts can be functio or psychological I Figure 62 and 63 p 155 m PRODUCT DESCRIPTION AND SEGMENTATION How are product categorized Tangible I Physical good I Places I Properties Intangibles I Services Experiences Events How Egg 3 gm r O 1 ormatlon Ideas Product classi cation scheme 7 Durability Tangability Use Consumer good Convenience shopping specialty Unsought Industrial goods 7material and parts suppliesbusiness items capital items Product Differentiation Product form Features Customization Performance Conformance Durability Reliability Repairability Style Service Differentation 7 Ordering ease Delivery Installation Customer training Customer consulting Maintenance and repair Returns 0 Segmentation Market is any individual group of individuals or organizations willing able and capable of purchasing a firm s product Heterogeneous demand Occurs when a group of consumers have differing needs from specific products 0 Market segment is a group of consumers that are alike based on some characteristics 0 Target market Target Market is the specific group of consumers toward which a firm directs its marketing efforts 0 Describe the steps in the segmentation process lIdentify total market Define the total market of all potential customers for a product category Market purchase pattern and whether the product user is the same person as the buyer 2Determine need for segmentation It is about determining whether the total market needs to be divided into segments for the purpose of targeting with special market programs Criteria for successful segmentation Measurable 7 age gender lifestyle product usage and so On Substantial 7 enough size and purchasing power to be profitable Actionable Able to respond to different preferences with an appropriate and profitable marketing miX Accessible 7be accessible and reachable with targeted programs 3Determine Bases for Segmentation 7 Segmenting means dividing markets into homogeneous or like groups based on similar characteristics or traits Any combination of number of variables or descriptors of the market or attitudes can serve as a basis for segmenting Situational Segmentation Is segmentation of markets based on purchases situation or occasion Physical surrounding 7 is the store or salesperson pleasant or offensive Social surrounding 7 are friends or parents watching the purchase Task definition 7 why is this product being purchased It is a gift If so is it a gift for a girlfriend boyfriend Parents Boss Prepurchase attitude 7 What is the purchaser s mood at the time of purchase sad or happy 4Profile each selected segment determine bases for segmentation Profile Is a detailed picture of a market segment based on multiple segmentation descriptors 5Access potential profitability for each segment and select segments for targeting 1 Forecast Demand Determine the potential demand for a product within each segmented target market 2 Estimate Cost The projected cost of developing and implementing marketing strategies 6 Select Positioning Strategy Positioning is the image that consumers have about a product especially in relation to the products competitors Effective Positioning What customer currently think about the product in relation to competing products What the marketers want consumers to think about the product Which positioning strategy will elevate consumer s current product image to the desire product image 7 Develop and Implement Appropriate Marketing Mix Develop a marketing miX matched to the needs of the target market developing an speci c plan of action and timelines
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