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TALKING
GLOBAL
THE IMPORTANCE OF
INTERNATIONAL PROMOTION
IN THE 21ST CENTURY
AN INTERNATIONAL BUSINESS ENVIRONMENT (L301) PRESENTATION
ABU YOUSUF MD ABDULLAH,
PHD
PROFESSOR
INSTITUTE OF BUSINESS ADMINISTRATION
UNIVERSITY OF DHAKA
2
THE TEAM 3
Shatabdi
Biswas
RH-12
Sharmili
Rowshon Kabir
RH-30
Arifur
Reza Chowdhury
ZR-23
Muhtasim
Sarowat Rayed
ZR-61
GROUP 5, BBA 21st BATCH, SECTION A
1 2 3 4
OUTLINE
4
5 6 7
OUTLINE
5
Superior sales and distribution by itself can create a monopoly, even
with no product differentiation. The converse is not true. No matter
how strong your product—even if it easily fits into already
established habits and anybody who tries it likes it immediately—
you must still support it with a strong distribution plan.
— Peter Thiel, Zero to One
“
7
PROMOTION
THERE IS NO ALTERNATIVE TO 8
9WHAT IS WRONG WITH THIS TWEET?
HINT: IT WAS TWEETED IN SPRING 2011
MARKETER AUDIENCE
COMMUNICATION
THE MANY CONTEXTS OF 10
CULTURAL CONTEXT IS KEY
11IN INTERNATIONAL MARKETING
PUSH AND PULL
FACTORS
13
These compel firms to
expand beyond their
country of origin.
These attract
firms into foreign
markets.
PUSH AND PULL
FACTORS
14
Domestic market may become too saturated.
Consumer demand patterns may change over time.
Increasingly restrictive government regulations may force
a firm to expand overseas
PUSH AND PULL
FACTORS
15
With a global population of over 7 billion, the global
market place is packed with endless opportunities.
Cheap labor is one of the chief cost driven factors that
are attracting MNCs to China.
Entering the global marketplace presents an opportunity
to learn the market practices in the industry.
17
DIFFERENCE BETWEEN TRADITIONAL AND
INTERNATIONAL PROMOTION
THE DEVIL IS IN THE DETAILS
What your promotional
objectives should be
depends on the level of
familiarity a market has
with your product.
Contents of the promotional
message will have to change
depending on the cultural and
social values of the market.
Which promotional
medium is more effective
varies from country to
country.
Segmenting and
Targeting cannot
be copied and
pasted.
HOW TO UNDERSTAND THESE
DIFFERENCES?
18
20
COMMUNICATIONS PROCESS
UNDERSTANDING THE
Mistakes in International
Promotions Occur due to
Problems in One or More
Steps in the Communication
Process.
21
CULTURAL CONTEXT
SOME IMPORTANT DIMENSIONS OF
Getting straight to the point
vs beating around the bush
Differences in norms and
taboos
Varying levels of female
empowerment
Focus on celebrities vs focus on
historical and cultural lineage
23THE IMC PROMOTIONAL MIX
FLEXIBLE, HIGHLY ADAPTABLE STRATEGY THAT IS CONSISTENT AT ITS CORE
6 2
3
4
5
1
SALES PROMOTION
24
Coupons
Discounts
Free Samples
Special Sales
Usually
occurs at the
point of
sales.
Effective for
FMCG
Products.
Effective in
regions which is
less accessible
by other media.
Marketing activities which aim to stimulate consumer purchases and improve retailer or
middlemen effectiveness and cooperation. They usually occur at the point of sale.
TRADE SHOWS
25
Time and sector-defined marketing events. Aimed primarily at B2B Consumers.
Effective for
companies looking
to introduce their
exports into a new
territory
Showcase different
business firms’
products, services
and their
manufacturing
capabilities
Can create demand
for products from
both the suppliers’
side and the
consumers’ side
26
PERSONAL SELLINGFace to face interaction between seller and buyer for the purpose of
sale of an offering.
Very Hard to
Say No to a
Good Salesman
The need to
develop cultural
intelligence for
international
promotions
27
DIRECT SELLINGMulti-Channel Approach that Focuses on Customer, Data Analytics and Accountability. Online
and Mobile Marketing is a big focus.
Newsletters
Flyers
Online Ads
SMS Ads
Effective for
products for whom
cultural factors do
not play as large a
role
Analytics gives
chance to measure
actual impact of
marketing
campaign
28
PUBLIC
A concerted effort on part of the company to
generate goodwill among all relevant stakeholders.
RELATIONS
29
ADVERTISEMENTSThe most widely used—and possibly the most potent– promotional
tool in the international IMC mix.
ANNUAL GLOBAL
EXPENDITURE (2014)
STANDARDIZED
VS ADAPTIVE
EFFECTIVENESS OF
VARIOUS MEDIA
VARIES FROM
COUNTRY TO
COUNTRY
31
BARRIERS TO INTERNATIONAL PROMOTION
1 Gross translation problems
Subtle distinctions from language to language
Different accents and dialects
2 Values, customs, morals, religious views
3 Some consider advertisements too crass.
Transformational vs Informational
4 Comparative ads banned in most countries
outside US
33
TAKEAWAYS
There is no
alternative to
International
Promotion
There are subtle
differences between
traditional and
international
promotion
Business communication
theory provides the
framework to understand
these differences
International
Marketers fail when
they do not understand
cultural context
IMC is the most
effective way to address
these problems
Even then, several
challenges still
remain
Constant research
and dedicated local
teams are key to
success
Talking Global: The Importance of International Promotion in the 21st Century

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Talking Global: The Importance of International Promotion in the 21st Century

  • 1. TALKING GLOBAL THE IMPORTANCE OF INTERNATIONAL PROMOTION IN THE 21ST CENTURY
  • 2. AN INTERNATIONAL BUSINESS ENVIRONMENT (L301) PRESENTATION ABU YOUSUF MD ABDULLAH, PHD PROFESSOR INSTITUTE OF BUSINESS ADMINISTRATION UNIVERSITY OF DHAKA 2
  • 3. THE TEAM 3 Shatabdi Biswas RH-12 Sharmili Rowshon Kabir RH-30 Arifur Reza Chowdhury ZR-23 Muhtasim Sarowat Rayed ZR-61 GROUP 5, BBA 21st BATCH, SECTION A
  • 4. 1 2 3 4 OUTLINE 4
  • 6.
  • 7. Superior sales and distribution by itself can create a monopoly, even with no product differentiation. The converse is not true. No matter how strong your product—even if it easily fits into already established habits and anybody who tries it likes it immediately— you must still support it with a strong distribution plan. — Peter Thiel, Zero to One “ 7
  • 8. PROMOTION THERE IS NO ALTERNATIVE TO 8
  • 9. 9WHAT IS WRONG WITH THIS TWEET? HINT: IT WAS TWEETED IN SPRING 2011
  • 11. CULTURAL CONTEXT IS KEY 11IN INTERNATIONAL MARKETING
  • 12.
  • 13. PUSH AND PULL FACTORS 13 These compel firms to expand beyond their country of origin. These attract firms into foreign markets.
  • 14. PUSH AND PULL FACTORS 14 Domestic market may become too saturated. Consumer demand patterns may change over time. Increasingly restrictive government regulations may force a firm to expand overseas
  • 15. PUSH AND PULL FACTORS 15 With a global population of over 7 billion, the global market place is packed with endless opportunities. Cheap labor is one of the chief cost driven factors that are attracting MNCs to China. Entering the global marketplace presents an opportunity to learn the market practices in the industry.
  • 16.
  • 17. 17 DIFFERENCE BETWEEN TRADITIONAL AND INTERNATIONAL PROMOTION THE DEVIL IS IN THE DETAILS What your promotional objectives should be depends on the level of familiarity a market has with your product. Contents of the promotional message will have to change depending on the cultural and social values of the market. Which promotional medium is more effective varies from country to country. Segmenting and Targeting cannot be copied and pasted.
  • 18. HOW TO UNDERSTAND THESE DIFFERENCES? 18
  • 19.
  • 20. 20 COMMUNICATIONS PROCESS UNDERSTANDING THE Mistakes in International Promotions Occur due to Problems in One or More Steps in the Communication Process.
  • 21. 21 CULTURAL CONTEXT SOME IMPORTANT DIMENSIONS OF Getting straight to the point vs beating around the bush Differences in norms and taboos Varying levels of female empowerment Focus on celebrities vs focus on historical and cultural lineage
  • 22.
  • 23. 23THE IMC PROMOTIONAL MIX FLEXIBLE, HIGHLY ADAPTABLE STRATEGY THAT IS CONSISTENT AT ITS CORE 6 2 3 4 5 1
  • 24. SALES PROMOTION 24 Coupons Discounts Free Samples Special Sales Usually occurs at the point of sales. Effective for FMCG Products. Effective in regions which is less accessible by other media. Marketing activities which aim to stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. They usually occur at the point of sale.
  • 25. TRADE SHOWS 25 Time and sector-defined marketing events. Aimed primarily at B2B Consumers. Effective for companies looking to introduce their exports into a new territory Showcase different business firms’ products, services and their manufacturing capabilities Can create demand for products from both the suppliers’ side and the consumers’ side
  • 26. 26 PERSONAL SELLINGFace to face interaction between seller and buyer for the purpose of sale of an offering. Very Hard to Say No to a Good Salesman The need to develop cultural intelligence for international promotions
  • 27. 27 DIRECT SELLINGMulti-Channel Approach that Focuses on Customer, Data Analytics and Accountability. Online and Mobile Marketing is a big focus. Newsletters Flyers Online Ads SMS Ads Effective for products for whom cultural factors do not play as large a role Analytics gives chance to measure actual impact of marketing campaign
  • 28. 28 PUBLIC A concerted effort on part of the company to generate goodwill among all relevant stakeholders. RELATIONS
  • 29. 29 ADVERTISEMENTSThe most widely used—and possibly the most potent– promotional tool in the international IMC mix. ANNUAL GLOBAL EXPENDITURE (2014) STANDARDIZED VS ADAPTIVE EFFECTIVENESS OF VARIOUS MEDIA VARIES FROM COUNTRY TO COUNTRY
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  • 31. 31 BARRIERS TO INTERNATIONAL PROMOTION 1 Gross translation problems Subtle distinctions from language to language Different accents and dialects 2 Values, customs, morals, religious views 3 Some consider advertisements too crass. Transformational vs Informational 4 Comparative ads banned in most countries outside US
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  • 33. 33 TAKEAWAYS There is no alternative to International Promotion There are subtle differences between traditional and international promotion Business communication theory provides the framework to understand these differences International Marketers fail when they do not understand cultural context IMC is the most effective way to address these problems Even then, several challenges still remain Constant research and dedicated local teams are key to success