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Learning Objectives Local market characteristics that affect the advertising and promotion of products The strengths and weaknesses of sales promotion and public relations in global marketing When global advertising is most effective; when modified advertising is necessary The effect of limited media, excessive media, paper and equipment shortages, and government regulations on advertising and promotion budgets The communication process and advertising misfires 16-2 Global Perspective Barbie Versus Mulan Integrated marketing communications (IMC) Advertising Sales promotions Trade shows Personal selling Direct selling Public relations Objective: successful sale of a product or service Availability of appropriate communication channels can determine entry decisions 16-3 Sales Promotions in International Markets Sales promotions Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation Short-term efforts directed to the consumer or retailer to achieve specific objectives In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increased Product sampling, cent-offs, in-store demonstrations, coupons, gifts, product tie-ins, contests, sponsorship of special events. Designed to supplement advertising and personal selling in the promotional mix. 16-4 International Public Relations Public relations (PR) is creating good relationships with the popular press and other media To help companies communicate messages to customers, the general public, and governmental regulators Bridgestone/Firestone Tires (death of over 100 people) Honda safety recall (Honda Accord)– (1.5 million in the US and 760,000 in China) – transmission shaft - may be broken during certain driving styles – causing engine problem. Global workplace standards and product safety recall Building an international profile – companies need PR consultation to build an international profile Corporate sponsorships –as an aspect of PR, sports events and charity events (Pizza Hut and KFC) 16-5 Top 20 Global Advertisers ($ millions) Exhibit 16.1 16-6
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