Published on March 14, 2014
Photo source: http://blog.icpl.org/files/2014/02/meeting-clipart.jpg Elena Chatzopoulou PhD Candidate Food Marketing
Learning Objectives The purpose of the presentation is the students to be capable afterwards to: Define the terms: communication mix, international channels, and the international audience-target Be in aware of the methods of using international channels Understand the role of marketing communications, international marketing communications, culture and negotiations/communicate Understand the Tetrahedron model as part of the relationship consumer-communication Define the consumer with traditional and more complex marketing approaches
Learning Objectives Understand the four pillars theory and the term interaction. Understand also how interaction is applies nowadays to the business world Choose the content of the communication message efficiently and transmit it effectively with modern techniques Design and implement IMC in the lowest possible cost “Think globally act locally” – adaptation Bare in mind common marketers’ mistakes Be in aware of the flexible IMC approach Understand the Digital Marketing planning and be in aware of already applied practices from the business world.
Intro Companies in global markets have to decide: Which countries-markets to enter How they will enter (exports, distributors, outsourcing) Pricing policy Communication options to adapt for each country/culture
Typical example of Integrated Marketing
Channels - International exhibition ISSA/Interclean exhibition 2008 Amsterdam (event) B2B – search for global distributors (channels) attracted more international visitors than ever before. The show: was visited close to 24,000 times, by 17,241 visitors saw 67% of the visitors coming from outside the Netherlands featured 718 exhibiting companies, which were represented by 5,571 employees drew mostly final decision makers for investing in projects/products (79%) overall satisfaction or very satisfaction from exhibitors reaches 92% of the total welcomed more than 20 exhibitors from China
Channels - International exhibition Interclean – exhibition’s PR Promoted the participants globally - press
Channels - International exhibition Interclean – exhibition’s PR Promoted the participants globally – media
Channels - International exhibition Exhibition’s Stand Purpose: find new distributors, to new regions (new channels) Method: attract potential distributors globally because of our stand/products. Approach them directly
Channels - International exhibition Samples: experience of unique air fresheners fragrances (chocolate, coffee, pizza)
Role of Marketing Communications - Purposes Establish a dialogue with consumers (target) Sustain consumer loyalty Associate a brand with a specific person, place or experience Inform, persuade, remind consumers (detailed) product information ignore the product (address other issues) …overcome crisis (e.g. defective product) or
…Going International Increasing number of firms interested in international marketing communications programme Best practise to do so: aligning symbols, messages and procedures so as to communicate content with clarity and consistency across formal boundaries
Culture – communications - negotiations Source: Salacuse 1998, p. 223 * Negotiation=Communication Negotiator: We are… Trying to reach the “locals” via negotiations-communications Counterpart: The other side, the “locals” Source: Weiss 1994, p.54 * Models to reach the local mentality/culture
…Going Integrated Schultz defined the “best practise” as Integrated Marketing Communications: Procedure which involves the development, implementation, and evaluation of marketing communication programs using multiple communication options
Consumers & Communication Psychologists depicted the factors which affect memory performance. On that base, Kevin Lane Keller (2001) created the “Marketing Communication Tetrahedron” so as to outnumber the effects of marketing communications. Concerning the International Marketing, we expect a priori different types of consumers, exposed to different types of communications, respond to different brand (or) communication. That is exactly how the Tetrahedron was structured... We expect variety a priori. Photos sources: http://kubosphere.files.wordpress.com/2012/03/dyn005_original_475_470_pjpeg_2590030_07339dd82373668bad11f04d54f6ae4e.jpg http://3.bp.blogspot.com/--UwUpLz7qM4/TV1W6pWISfI/AAAAAAAABWs/INYwzqFscsA/s1600/The_Laughing_Cow.gif France U.K.
Tetrahedron (K.L. Keller) Consumer Response Communication Situation Prior knowledg e Processin g goals Place Time Modality Informati on Brand- related informati on Execution al informatio n Consumer Communication
International Consumer Variation Different demographic characteristics: age, gender, etc. Different behavioural characteristics: brand choices, food choices, loyalty, etc. Any of these characteristics may impact consumers’ response to marketing communications
Prior knowledge What the consumer knew about The product or service category The company that makes the product Past communications for the brand Prior knowledge t Exposed to the marketing communication
Processing goals Prior knowledge t Exposed to the marketing communication After the exposure to the communication mix... Consumers may differ in their goals with respect to the brand/product at the time which they are exposed to the marketing communication. The goals may range from a need or desire to: Make a purchase in the category Obtain benefit or feature information Evaluate certain brands Buy chosen brands
Four pillars However, according to the four pillars theory: We should understand consumers beyond traditional marketing descriptions (demographic, psychographic data) There is a connection between the brand and the customer: “sweet spot” Nowadays, consumers determine: Which media forms they want to get exposed to The amount of time they wish to devote to each medium Which content they prefer to receive at their convenience Audiences are simultaneously creators of their own content through texts, pictures, videos, music, etc. brandcontent
Lacta Case study http://uk.adforum.com/award/showcase/6650183/2013/ ad/34486141 Video of Lacta. Cannes award winner 2013 Interaction (audience-target) Integrated (social media, film, facebook, internet, TV, etc.)
Content Message: the values that marketers transmit to customers Incentives: short-term offers or rewards to consumers for having done something of value for the firm (e.g. gain discounts because of their check in at foursquare) Controlled content: relevant, creative, persuasive and understanding by the IMC concept Controlled messages and incentives are planned and deliberated by the marketer and its communication agency Uncontrolled: unpredictable and unplanned (Comments on fb for our brand) Citizen media…Participatory media Social Media Content... More than a message messages incentives controlled uncontrolled
Controlled Content Communication options vary from (sounds, motions, spoken or written words) to (interactive, customised, etc.) Marketing communications can vary also in their message: Message Brand-related information (e.g. detailed print ad) • Tangible aspects • Intangible aspects Non at all info (e.g. titled sponsorship without additional marketing support) Photos sources: http://carstensblog.com/wp-content/uploads/2013/02/david-ogilvy-dove.jpg https://i.ytimg.com/vi/Ukt9DgZ6G_0/mqdefault.jpg
Intangible aspects: user or usage imagery, brand personality (=promise) Tangible aspects: physical product attributes Photos sources: http://carstensblog.com/wp-content/uploads/2013/02/david-ogilvy-dove.jpg http://www.tinaloves.com/wp-content/uploads/2011/06/DEI-440x285-CV-AJ2-INTL.jpg
Micro-Macro The marketing managers after studying the consumer (micro perspectives/ behaviour, perception, attitude, etc.) must evaluate the marketing communications programme as a whole (macro perspectives). The most effective and efficient communication programme must be structured. Therefore, six relevant factors-criteria must be considered: 1. Coverage 2. Contribution 3. Commonality 4. Complementarity 5. Robustness 6. Cost
Coverage Which proportion of the audience-target market is reached by each communication option employed? How much overlap exists among communication options? How is the audience reached? By “main effects” or “interaction effects”? Main effects: Unique aspects of coverage which are inherent communication ability of a marketing communication option Audience Communication option A Communication option B Communication option C
Contribution The inherent ability of a marketing communication option to create the desired response by the audience-target. It relates the “main effects” of a marketing communication option in terms of how it affects consumers and the resulting outcomes-purposes …Enhance image, induce sales, etc.
Commonality Most definitions for IMC include only the commonality factor. Commonality reinforces common associations between all the communication options. The purpose is to unify all marketing tools so as to send target audiences a consistent, persuasive message. It is believed that exposure to information in different formats or media may further facilitate learning.
Complementarity Instead of one consistent message (=commonality), complementarity linkages different communication options in order to create to the target different types of associations. Television advertising lasts shortly and the target is not always “focused” on the advertisement. Therefore, supporting media are needed so as the message to be reinforced and strengthened. Print ads for instance shall analyse more the utility of a product/service.
Robustness Crucial element for a marketing communication option to “work” to different groups of consumers. By using an integrated communication programme, practically means that a group of consumers will have already been exposed (=prior knowledge) to other marketing communications, while other not. Therefore, the marketing communication has to “work” at “two levels” effectively. So as to achieve this dual communication ability it would be worthy to provide different information for each communication option.
Cost Cost, should always be in a marketer's mind. Their proposals should include an effective communication programme weighed against cost. Photo source: http://blog.competitivechoice.net/2013/02/02/transforming-maintenance-from-a-cost-perspective-to-a-profit- enhancer/cci-cost-versus-profit-image-for-blog-post-i/
Cost… Andersen consulting was forced to change its name to Accenture. Therefore, it started a campaign to promote its new moniker by applying an International Integrated Marketing Communications programme. Till January 2001, advertisements in television, press, internet, and posters with the name Accenture appeared to 18 countries. Between January and March 2001, more than 6.000 tv spots and 1.000 printing ads appeared globally. Moreover, it organised the Accenture World Golf Match Play Championship and several sports sponsorships around the world (Formula 1, ski events in Europe, rugby tournament of 6 nations, etc.). Total cost: $75-$100 million marketing & communication budget* Photo source: http://www.accenture.com/gb- en/Pages/index.aspx?c=ad_08ukglbpsgs&n=g_Accenture_Core_Business/a_0_k/accenture&KW_ID=sHxN8NwO0_dc|pcrid|15375319116 *Sources: http://content.time.com/time/specials/packages/article/0,28804,1914815_1914808_1914804,00.html http://www.theguardian.com/theguardian/2001/jan/08/features11.g2
Cost… How can an international image be constructed nowadays? …on a lower cost? Would Accenture construct a different campaign nowadays? …with a lower cost? Photo source: http://www.accenture.com/gb- en/Pages/index.aspx?c=ad_08ukglbpsgs&n=g_Accenture_Core_Business/a_0_k/accenture&KW_ID=sHxN8NwO0_dc|pcrid|15375319116
Cost… Internet...Social Media But, not to forget: Tetrahedron_Situation (right place/right time) e.g. Banner ads to specific websites Photo source: http://www.accenture.com/gb- en/Pages/index.aspx?c=ad_08ukglbpsgs&n=g_Accenture_Core_Business/a_0_k/accenture&KW_ID=sHxN8NwO0_dc|pcrid|15375319116
Designing and implementing an IMC programme How to organise the integration process has become critical. But, most importantly we should think about who (person/department) is in charge… Integration must come from the top, and it can’t be just a memo or a directive… There must be a commitment from top management to integrate. The need to control the entire marketing communications process from one central location is even more pronounced in a global context. A system of communication management based on centralisation and control, which focuses on the customer. That is because a centralised communication office shall prevent misunderstandings, confusion or irritation among current or prospective customers.
Designing and implementing an IMC programme 1. Evaluate communication options (micro and macro level) Source: keller, k.l. (2001) 'Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs', Journal of Marketing Management, 17(7), pp. 836
Designing and implementing an IMC programme 2. Establishing priorities Thinking about the objectives of the marketing communication programme. …Short-run vs. Long-run concerns… Megamarketing (Kotler): is the strategic manage of the firm’s external elements (economical, political, power-pressure groups, PR, etc.) so as to enter a new market with the approval of the (new) market’s government. Pepsico Case study (1989) When Coca-Cola decided not to distribute any longer its products to India, it was Pepsi which decided to enter the market. As local producers of soft drinks were against that “invade”; Pepsi, decided to collaborate with the government of India so as to support its enter. Pepsi, offered to help the Indian government in exporting local agricultural products abroad. Moreover, Pepsi, promised to import & apply new technologies of processing & packaging food and of cleaning water. Was it a short-run or a long-run?
Designing and implementing an IMC programme 3. Executing the design Think about the amount of communications the consumers receive Should they be exposed to the same or different communications? Should it be communication adaptation? Or dual adaptation? Communication adaptation: Adapt the communication plan to local markets Dual adaptation: Adapt the product and the communication plan to local markets
Communication adaptation In the original advert for the soap Lux, Miss Parker was wearing a backless, sequined dress. After complaints and threats to boycott Unilever products by Israel's Rabbis, the advert was changed so the actress was shown wearing a dress that covers her arms, back and thighs. BBC website posed the below questions to the article’s readers: What do you think of adverts featuring bare flesh? Are you fed up with sex used as a marketing tool or do you like glamorous advertising? Should religious leaders get involved with matters like this? What do you think? Source: http://news.bbc.co.uk/1/hi/talking_point/4041201.stm
International Marketing (adaptation) Why should we apply communication adaptation? Without adaptation we may have... INTERNATIONALLY… Consistent to the brand image Lower marketing cost Unified marketing practises BUT, LOCALLY… Different needs, different desires of local consumers Different potential responses from the local consumers Different laws Different competitive environment
Common mistakes IMC Multinational companies were using most of the times local advertising companies for each country. Therefore, they could not align their communication options for their international image. Nowadays, multinational-international companies prefer to collaborate with one company for their international communication programme. For instance, IBM chooses Ogilvy world widely so as to have a unified brand image, logo, colours, etc.
Common mistakes IMC Several companies had focused on integrated communications by ignoring organisational dimensions. That meant lack of horizontal communication. Without adequate communication among departments; organisations will have great difficulties exchanging and sharing crucial information about target audiences. Only by aligning processes of different functions (marketing, finance, HR, IT and operations) can organisations develop real customer focus & customer orientation
Common mistakes IMC General absence of commitment to integrated communications. Marketing managers find it difficult to convince specialists (incl. advertising agencies) to give up some of their autonomy for the benefit of the organisation as a whole. Advertising, sales, PR, etc. address different audiences, different operational practises. Organisation must operate in the full service of the (marketing) communications programme (horizontal communication, collaboration, commitment). BUT, at the same time flexible to respond at the local level. Customer orientation.
Common mistakes IMC Intensive communication with the market becomes an activity for the marketing organisation itself. If we are not flexible, the system cannot allow easily its subunits to respond individually. Flexibility at a local level. Responsiveness. Rapid responses to unexpected situations and emerged opportunities. Customer orientation. Listening orientation. “Think globally, act locally”. Balancing integration and flexibility.
The solution…Flexibility …Combine integration and flexibility Conventional IMC Flexible Integration approach Concerns Customer Orientation Diffusion of organisational identity. Not responding locally Customer Orientation Respond to environmental complexity. Thinking locally Organisational Structure Centralisation Hierarchy Strong ties Common values / starting points (CSPs) Common goals / end points (CEPs) Decentralisation Networks (small, semi- autonomous workgroups) Weak ties CSP and CEP but, continuous process* *Not automatically follow the prescriptions or ideals of the communication manager, sensitivity to the many different voices Conventional IMC: Simple coordination mechanism, “command and control” Flexible IMC approach: Organic types of control, alternative ideas and understanding, variety
International Integrated Digital Marketing To what is more… International Integrated Digital Marketing “We believe that in the future, all manufactured goods in the world will be digitally defined, engineered, simulated, produced and managed throughout their lifecycle” Bernard Charlès (2006)
Digital planning Companies nowadays have in their disposal new channels of information and sales: the internet. International influence and correspondence Promotes the brand, the products, the vision of the company, its history, etc. Companies may send now coupons, advertisements, samples and information to those who asked them to do so or to those who accepted to have them so (electronic forms). Internet-based tools such as: e-mail, intranets and extranets, voice and video conferencing, and smart phones represent a dramatic increase in terms of data treatment and coordination/communication capabilities.
Can you think of any example of a brand which is internationally recognised? That has been promoted via IMC? Which has used new media? Photos sources: https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSiyVN8T7O9MdqQsaDpgwMNgWydH5CmMkQNlOfNy-IzOuBctt1W https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcTLfGmz0AnzWnBNLqRS7tRVc6Y-aqRrny1EHIl5-jfeO4TSLOUQ http://a4.mzstatic.com/us/r30/Purple4/v4/25/a4/a4/25a4a4cb-78f4-de38-ba80-afa2a96e2eda/mzl.eqzoyrsy.png http://www.waxingunlyrical.com/wp-content/uploads/2013/03/url.jpeg https://g.twimg.com/Twitter_logo_blue.png International Integrated Digital Marketing
Think the Jamie Oliver name... as one brand... If you were the marketing managers, how would you promoted it via IMC? Which new media will you use? Photos sources: https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSiyVN8T7O9MdqQsaDpgwMNgWydH5CmMkQNlOfNy-IzOuBctt1W https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcTLfGmz0AnzWnBNLqRS7tRVc6Y-aqRrny1EHIl5-jfeO4TSLOUQ http://a4.mzstatic.com/us/r30/Purple4/v4/25/a4/a4/25a4a4cb-78f4-de38-ba80-afa2a96e2eda/mzl.eqzoyrsy.png http://www.waxingunlyrical.com/wp-content/uploads/2013/03/url.jpeg https://g.twimg.com/Twitter_logo_blue.png Jamie Oliver... The brand name
Case study Jamie Oliver – the brand International food marketing Jamie’s restaurants worldwide Kitchen products to cookshops around the world http://www.cookshop.gr/%CE%BA%CE%B1%CF%84%CE%B7%CE%B3%C E%BF%CF%81%CE%AF%CE%B1-jamie-oliver
Case study Books - translated to many languages Jamie’s salt, Jamie’s wine e-shop http://www.jamieoliver.com/products/home/cookware Photos sources: http://www.chinadaily.com.cn/life/images/attachement/jpg/site1/20130910/002564bc654b1398d1880a.jpg http://jkrglobal.com/wp-content/uploads/2009/02/jamie-oliver1.jpg
Case study To what is more… International TV shows Food Tube* (@website Jamie) Website Connection: website / magazine * Jamie and his Food Tube team have scooped top honours at the Broadcast Digital Awards-London. The channel was nominated for the Best New Original Channel (2013) ...then...share on instagram, twitter, etc.
Case study Jamie Oliver’s foundation http://www.jamieoliverfoodfoundation.org.uk/ Promotions – competitions https://www.jamieoliver.com/promotions
Case study Instagram (1/3/2014 at 23:00) Link: website / instagram, social media Website’s banner:
Case study Twitter (linked with the other communication options) complementarity Facebook (linked with the other communication options) complementarity Mobile applications (recipes, linked with digital magazine, subscription) complementarity Magazine (digital, traditional) complementarity Forum online (1/3/2014 at 23:00) Facebook Jamie
Case study Interaction (consumers upload their photos, videos, experiences) The content includes messages (healthy eating, creative activities) & incentives (promotions-gifts) Connection with the rest communication options…Complementarity & Commonality…website, video, gifts, pictures, instagram, facebook, etc. Local adaptation (flexibility)…translate books, TV shows…Robustness (different group of consumers-two levels) Photo source: http://seanheritage.com/blog/defining-success/
References accenture, Guardian (2014) The guardian for Accenture cost for changing name. Available at: http://www.theguardian.com/theguardian/2001/jan/08/features11.g2 (Accessed: 3/3/2014). accenture, Time (2014) Time for Accenture cost for changing name. Available at: http://content.time.com/time/specials/packages/article/0,28804,1914815_1914808_1914804,00.html (Accessed: 3/3/2014). BBC (2004) Sarah Jessica Parker Lux ad. Available at: http://news.bbc.co.uk/1/hi/talking_point/4041201.stm (Accessed: 27/2/2014). Charles, D.S. (2006) Quote Charles 3D. Available at: www.3ds.com/corporate/message-from-the-president. Christensen, L.T., Firat, A.F. and Torp, S. (2008) 'The organisation of integrated communications: toward flexible integration', European Journal of Marketing, 42(3-4), pp. 423-452. exhibition, Interclean (2008) Interclean exhibition 2008. Available at: http://chcexpo.chcexpo.com/international-trade-shows/issa- interclean-global-events/issa-interclean-amsterdam/11 (Accessed: 2/3/2014). facebook, J.O. (2014) Jamie Oliver facebook page (Accessed: 2/3/2014). Frazier, G.L., Maltz, E., Antia, K.D. and Rindfleisch, A. (2009) 'Distributor Sharing of Strategic Information with Suppliers', Journal of Marketing, 73(4), pp. 31-43. Gould, S.J. (2000) 'The state of IMC research and applications', Journal of Advertising Research, 40(5), pp. 22-23. instagram, J.O. (2014) Jamie instagram (Accessed: 1/3/2014). Keller, k.l. (2001) 'Mastering the Marketing Communications Mix: Micro and Macro Perspectives on Integrated Marketing Communication Programs', Journal of Marketing Management, 17(7), pp. 819-847. Kliatchko, J. (2008) 'Revisiting the IMC construct A revised definition and four pillars', International Journal of Advertising, 27(1), pp. 133-160. Kotler, P. and Keller, K. (2006) Marketing Management. 12th edn. Kleidarithmos. Lacta (2013) Lacta Cannes award, forum. Video available at: http://uk.adforum.com/award/showcase/6650183/2013/ad/34486141 (Accessed: 3/3/2014). Malecki, E. and Moriset, B. (2008) The digital Economy. Routledge London & NY. Oliver, J. (2014) Jamie Oliver interactive website. Available at: http://www.jamieoliver.com/ (Accessed: 1/3/2014). PepsiCo India(2014). Available at: www.pepsicoindia.co.in (Accessed 10/3/2014) Sabrakos (2013) Ogilvy Greece (Sabrakos) Lacta. Available at: http://www.slideshare.net/psambrakos/how-lacta-got-the-biggest- facebook-brand-page-in-greece?utm_source=slideshow02&utm_medium=ssemail&utm_campaign=share_slideshow (Accessed: 3/3/2014) Salacuse, J.W. (1998) 'Ten ways that culture affects negotiating style: Some survey results', Negotiation Journal-on the Process of Dispute Settlement, 14(3), pp. 221-240. Schultz, D.E. and Kitchen, P.J. (1997) 'Integrated marketing communications in US advertising agencies: An exploratory study', Journal of Advertising Research, 37(5), pp. 7-18. Spring Air (2014) Spring Air website. Available at: http://www.springair.gr/en/home (Accessed: 2/3/2014). Weiss, S. (1994) 'Negotiating with "Romans" - part1', Sloan Management Review, 35(2).
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