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Principles of International Marketing Chapter 12 Marketing Communication 9th Edition © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.1 - The Marketing Communication Process Sender (Encodes Message) Message Channel Message Receiver (Decodes Message) Noise Feedback Communication Outcome © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Communications Process • Encoding - Converting the message into symbolic form that is properly understood by the receiver. • Message channel - The path through which the message moves from the sender to the receiver. • Decoding – Process of transforming message symbols back into thought. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Communications Process • Noise - Extraneous and distracting stimuli that interfere with the intended accurate reception of a message. • Outcome - Determined by how well objectives have been met in generating more awareness, a more positive attitude, or increased purchases. • Feedback - Necessary to analyze the success of the communications effort. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations • The two biggest dangers faced in international negotiations: – Parochialism - The misleading perception that the world of business is becoming ever more American and that everyone will behave accordingly. – Stereotyping - Generalizations about any given group, both positive and negative. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations • The use of Internet in international negotiations allows the exporter to – – – – – Overcome distances. Minimize social barriers. Obtain instant feedback. Negotiate from a home base. Negotiate with a number of customers simultaneously. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations • The process of international business negotiations can be divided into five stages: – Offer • Allows the parties to assess each others needs and commitment. • The initiation of the process and its progress are determined by background factors of the parties and the overall atmosphere. – Informal meetings • To discuss the terms and get acquainted. • It may be necessary to utilize facilitators (such as consultants or agents) to establish the contact. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations – Strategy formulation • Review and assess factors to be negotiated. • Prepare actual give and take of the negotiation. – Negotiations • Depend on the cultural background and business traditions prevailing in different countries. • Two approaches are used for negotiations: competitive and collaborative. – Implementation • The choice of location for the negotiations and the negotiator characteristics play a role in the outcome. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations • A combination of attitudes, expectations, and habitual behavior influences negotiation style. • Approaches used for adjusting to the style of the host-country negotiators: – Team assistance use Expert ,trained members – Traditions and customs carefully noticed with help of consultant or local – Language capability – Determination of authority limits – Patience needs more time © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Negotiations • Approaches used for adjusting to the style of the host-country negotiators: – – – – – Negotiation ethics vary from culture to culture Silence a technique used to decrease price Japanese Persistence be patient to get a deal Holistic view concessions come later The meaning of agreements © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 12.2 – Steps in Formulating Marketing Communications Strategy © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. • 1. assessing what companies or product characteristics and benefits should be communicated e.g. Volvo used safety and quality as a them in promotional campaign © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Communications Strategy • Promotional mix - Tools available to the international marketer for creating a total communications program for use in the targeted markets. • The promotional mix consists of advertising, personal selling, publicity, sales promotion, and sponsorship. • The choice of tools leads to either a push or a pull emphasis in marketing communications. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Promotional Mix • Push strategies - Focuses on personal selling; considered useful for marketing industrial goods which have shorter channels of distribution. • Pull strategies - Depend on mass communications to reach target audiences over long distribution channels. • Integrated marketing communications Coordinated use of a broad range of promotional tools to reach a target market. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools • Business and trade journals and directories – The two main concerns when selecting media are effectiveness in reaching the target audience and efficiency in cost minimization. – In deciding which publications to use, the exporter must apply the general principles of marketing communications strategy. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools • Direct marketing – Establishes relationship with a customer in order to initiate immediate and measurable responses. – Accomplished through direct-response advertising, telemarketing, and direct selling. – Direct mail can be a highly personalized tool of communication if the target audience can be identified and defined narrowly. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools • Direct marketing – Telemarketing (including sales, customer service, and help-desk-related support) is flourishing due to telecommunication systems and deregulation in the industry. – Database marketing allows the creation of an individual relationship with each customer or prospect. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools • The Internet - Supports the exporter’s marketing communications in the following ways: – Allow the company to increase its presence in the marketplace. – Communicate information about its marketing mix. – Allow 24-hour access to customers and prospects. – Improve customer service. – Allow the exporter to gather information for subsequent marketing efforts. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools • Trade shows and missions – Trade show is an event where manufacturers, distributors, and other vendors display their products or describe their services to current and prospective customers, suppliers, other business associates, and the press. – Exporters may participate in general or specialized trade shows. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Communications Tools • Personal selling – Involves high costs per contact. – Provides immediate feedback on customer reaction as well as information on markets. © 2010 South-Western/Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.