Marketing Internationally

LECTURE 8:
INTERNATIONAL
COMMUNICATION
STRATEGY
Course Outline
Week Content
1 Scope and Framework for International Marketing Analysis of
2 The Role of the International Environment Foreign
Environment
3 The Role of Culture in International Marketing
4 International Consumer Research Market
5 International Market Selection and Mode of Entry Selection
Mid semester break and Entry
6 International Marketing Strategy and Competitive Advantage
7 International Product Strategy
Marketing
8 International Marketing Communication Strategy Mix
9 Pricing for International Markets Strategy
10 International Channels of Distribution
11 Building the Global Brand Globalisation
Contemporary International and Emerging
12
Themes
13 Marketing Issues
 Learning Objectives Lecture 8

 Analyse the factors which cause international

communication to differ from domestic communication and
assess the extent to which adaptations are necessary

 Appreciate the advantages of taking into account country of

origin and of standardisation versus differentiation for
international communication strategy.
Crust takes a slice of US
(Inside Retail 20/04/12)

 Australian pizza chain Crust Gourmet Pizza Bars is opening its first US
store next month as part of a global strategy involving 100 new sites.
 It's part of an expansion strategy of 50 to 100 more US stores, along
with 15 more in New Zealand, a market that Crust entered last year.
 This will effectively double Crust's current store numbers, which are
currently 120 in Australia, one in New Zealand, and two in Singapore.
 “This is a country with a population 15 times that of Australia, so the
potential is huge for Crust," says Costa Anastasiadis, MD and co- founder
of Crust.
 The chain entered the Singapore market over two years ago but has not
made significant inroads here since, with Anastasiadis last year citing
"different challenges" in the market.
 International Integrated
Communication Strategy
 International Integrated
Communication Strategy

 Communication in international markets plays the same

role as in the domestic market: to communicate with
audiences to achieve a desired outcome.
 An organisation’s integrated marketing communication
program consists of a specific marketing communication
mix that will most effectively meet objectives such as to
inform, persuade, or remind consumers as well as to
reinforce their attitudes and perceptions.
 Relative importance of each element of the integrated
communication mix varies across market according to
differences in international environments
 International Integrated
Marketing Communication
1.
Strategy
Assess Marketing Communication Opportunities
2. Analyse Marketing Communications Resources
3. Set Marketing Communication Objectives*
4. Develop/Evaluate Alternative Strategies
5. Assign Specific Marketing Communication
Tasks

 It is important to measure the outcomes of a

communication strategy
 Integrated Communication Mix

1. Advertising – any form of non personal presentation of

ideas, goods, or services through media.
2. Personal Selling – assisting and persuading a prospect
to buy a good or service or to act on an idea through the
communication between buyer-seller
3. Publicity – any form of non-paid, commercially
significant news, or editorial comments about ideas,
products or institutions.
4. Sales Promotion – direct inducements that provide
incentive to the sales force, intermediary or
consumer.
5. Sponsorship – the practice of promoting the interests
of a company by associating it with a specific event or
cause.
 Constrains for International Marketing
Communication Mix
 Cultural Differences:
 language/ high context vs. low context cultures, presentation,
conversational, and written word principles, translation, precision
 Economic Development:
 educational level, literacy, affordability of media, sophistication of product
 Marketing Acceptability
 varies with politics, history and economic development
 Media Infrastructure:
 availability, reach, cost, effectiveness, local content requirements
 Intermediary Availability:
 advertising agencies, research institutions etc.
 Activities of Competitors:
 international and local firms
 Government Controls:
 regulation of communication (use of the media content: what, how it is
said; bans on advertising; religious values, Promotion to children)
 Integrated International
Communication Strategies
 Pull Strategy
 Communication strategies targeted directly towards
overseas consumers or end-users:
 Advertising
 Publicity/ Public Relations
 Sponsorships

erent
 Push Strategy
 Communication strategies targeted at the diff
members of the distribution channel
 Sales promotion
 Personal Selling
 Pull Strategies: Advertising
 Powerful, effective, expensive, non-personal
 Media Selection:
 Based on differences across markets (usage, form, content,
presentation)
 Important to be specific as to which is the target audience
and the
objective of the campaign
 Depends on the nature of the product or service being
promoted
 Type of message to be conveyed
 Celebrity Endorsement- global?
 Media Forms:
 Print media: Newspapers, magazines, flyers, posters, trade
publications, telephone directories, outdoor and transit advertising
 Visual media: Television and cinema
 Audio media: Radio
Smartphone boom in Southeast Asia
(Inside Retail 26/04/12)

 Rapid growth in Southeast Asia’s smartphone market continues with a total

of nearly 7.7 million units worth almost US$2.4 billion being snapped up in
the first three months of 2012, says company GfK.
 GfK Asia said Singapore, Malaysia, Thailand, Vietnam, Indonesia,
Philippines, and Cambodia registered spikes in demand for smartphones
between 40 and 400 % than during last year.
 The smartphone revolution is in full swing but not all consumers are fully
converted yet as one in three mobile phones sold last quarter was still a
feature phone, although figures have been gradually dwindling over the
last few years.
 Smartphones's share has correspondingly been rising and today
accounts for more than 66 per cent of the overall sales, up from 50 per
cent in the first quarter of last year.
 “The largest smartphone market in this region - expectedly - is
Indonesia which has a smartphone penetration rate of 62 %.
Global advertising spending
World’s top 25 marketing agencies
Does Yellow Tail need an
advertising campaign in the US in
2003?
 Corona Positioning
Fun, Sun, Beach
http://www.youtube.com/watch?v=hq_smF8gNYM&NR
=1

http://www.youtube.com/watch?v=hq_smF8gNYM&NR http://www.youtube.com/watch?v=GpXewsX8Y
 Advertising in a Global Magazine across
7 Countries (Nelson & Paek, 2007)
20

 Degree of standardization of language and

advertising models in advertising within the
same global media brand (Cosmopolitan)
across 7 countries:
 Brazil, China, France, India, South Korea,
Thailand, USA

 Results show:
 More multinational than domestic ads
although varied across countries.
 Multinational product ads were more likely to use
English language than domestic product ads.
 Multinational products are more likely to use global
models than ads for domestic products.
 Push Strategies: Sales Promotion &
Personal Selling
 Sales Promotion  Personal Selling
 Contests, coupons,  Sales force activities
sampling, deals, etc.  Manage relationships and
 Added importance in the negotiation in different
international market cultures.
(new products)  Trade missions
 Trade shows/fairs  Inward/outward
 selling  Brochures
 promotion
 Culturally sensitive
 Direct marketing
 networks
 Catalogue Marketing
 Technical seminars  Technological media
 trade show (SMS)
 Agencies
 Pull Strategies: Publicity and Public
Relations

 Communication between the company and its “public’

to achieve specific objectives.
 ‘Public’ is broader than the market it serves: includes all of those affected by the
firm’s operation: Customers, general public, shareholders, government, media,
suppliers, employees, activists, financial community, distributors.

 Publicity is the deliberate attempt to manage the

public’s perception:
 Contests, Art exhibitions, Event sponsorship, Speech or talk, issue a report, arrange for a
testimonial, announce an appointment, invent then present an award, organize a tour of
your business.
 The advantages of publicity are low cost, and credibility.
 Public Relations (PR) is the practice of managing the flow of
information between a company and its public:
 Sponsorships, speaking at conferences, winning industry awards,
working with the press, and employee communication.
 Benetton-Public
Relations/Publicity/Sponsorships
 Benetton worked with the World Food Program, the United Nations agency, to face
the theme of world hunger (2003), with the United Nations Volunteers in (2001).

 Together with UNHCR (United Nations High Commission for Refugees) Benetton
developed a campaign (1998) to generate solidarity towards refugees of the war in
Kosovo.

 The company also supported SOS Racisme in aid of the poorest African Countries
and the Associazione per la Pace in aid of war victims, and has also supported
Caritas Switzerland and the International Federation of the Red Cross promoting
the Clothing Redistribution Project.

 The celebration of the World Braille Day (January 4th 2002), with the World Blind Union;
the production of the international communication campaign for the 50th anniversary of
the Declaration of Human Rights, in collaboration with the United Nations (1998).

 Benetton also promoted several initiatives with LILA, GAPA, and the
Gay Men's Health Crisis to tackle the theme of Aids.
Public Relations/Publicity Wiggles
"Communication should never
be commissioned from outside
the company, but conceived
from within its heart."

Lucciano Benetton
Benetton shocks world with ad
showing world leaders in liplock
(Daily

 From the folks who brought us the controversial image in the 1990s of a priest and a
nun in a lip-lock comes an even more explosive one that pushes the boundaries of
advertising and communication: US President Barack Obama and China's supreme
leader Hu Jintao kissing each other flush on the lips.
 The jaw-dropping picture, which is being released all over the world, is part of
Benetton's "Unhate" campaign launched in Paris on Wednesday. It's one of a series
of 6 images showing world leaders, including Obama and Venezuela's Hugo
Chavez, France's Nicholas Sarkozy and Germany's Angela Merkel and Israel's
Benjamin Netanyahu and Palestine's Mahmoud Abbas, in a mouth-to-mouth kiss.
One photo features the Pope in a lip-lock with Ahmed al- Tayeb, Sheikh of the Al-
Azzhar mosque.
 Obviously photo-shopped, the images are certain to stun and perhaps outrage
the world, a fact that the edgy Italian company is looking forward with both
anticipation and apprehension.
Benetton Pulls Controversial Pope Ad
Immediately After The Vatican Denounces It (Daily
Telegrpah, 16/11/11)

 Benetton's latest controversial ad campaign depicting world

leaders kissing had folks buzzing, but now the Italian clothing
retailer has pulled one of its ads -- the one of the Pope making out
with a top Egyptian imam -- right after the Vatican denounced it.
 Benetton took the ad off its website about an hour after the Vatican
said it was "unacceptable" and offensive provocation, according to
AP.
 Benetton had earlier put up huge banner featuring the
photoshopped picture in the Vatican itself -- obviously trying to get
people riled up right at the source.
 “We must express the firmest protest for this absolutely
unacceptable use of the image of the Holy Father, manipulated and
exploited in a publicity campaign with commercial ends. This shows
a grave lack of respect for the pope, an offence to the feelings of
believers, a clear demonstration of how publicity can violate the
basic rules of respect for people by attracting attention with
 Next Week: Lecture 10
 Week 10: International Pricing Strategy and
Country of Origin
 For the lecture:
 Read Chapters 8 of the textbook

 For tutorial read case study:

 Costco in Australia (located in textbook, pg. 582)