INTERNATIONAL MARKETING

SEMESTER- VI
UNIT VII – INTERNATIONAL PROMOTION

PROFESSOR DR. JUI

BANERJEE
DEPARTMENT OF BBA
ST. XAVIER’S COLLEGE,
RANCHI
 INTRODUCTION

•Marketing communication or promotion plays a very important role in marketing, both

domestic and international. Even if a product is very good, it may not achieve full
success unless the promotion is appropriate or adequate.
•Communication aims to make potential buyers (or middlemen) more favorably
disposed towards the firm’s offerings. It seeks to achieve these objectives by informing
the recipient of the message of the existence of the product and its unique details or
by modifying his attitude towards such a product or by enhancing his preference for
one product against another.
•Promotion, being one of the four Ps of the marketing mix, to be successful, should be
consistent with the other three ingredients of the mix.
 INTRODUCTION
CONTD…

•Communication performs one or more or all of the following functions:

i. Making the potential consumers aware of the product.
ii. Persuading the consumers to buy the product.
iii. Motivating the consumers to buy the product by special incentives.
iv. Reassuring the consumers and helping to overcome the post- purchase
dissonance.
v. Informing the channels about the product.
vi. Motivating the channels to handle the product.
vii. Promoting the image of the product.
viii.Promoting the image of the company.
 MAJOR DECISIONS IN INTERNATIONAL
MARKETING COMMUNICATION

 Identifying the Target Audience:

Target audience means people for whom promotional message is meant and includes
both present and potential customers. Even for the same product the target audience
may be different in different countries. For example, some consumer durables which
are used even by the low income groups in the advanced countries may be used only
by high income groups in the developing countries.

In several cases the need satisfaction by the product varies between markets. For
example, bicycles are basic means of transportation in countries like India and the
important category of consumers are small farmers, blue-collar workers and students.
In some of the advanced countries, bicycles are used for sporting and exercising and,
hence, the target audience is different.

Again the decision-making roles of different categories of people are not the same in
all the markets. All these indicate that the target audience may not be the same in all
the markets.
 MAJOR DECISIONS IN INTERNATIONAL
MARKETING COMMUNICATION

 Determining Communication Objectives:

The communication objectives also may be different in some cases. For example, when
the product is in the introduction stage in a market the emphasis of communication could
be on consumer education and creation of primary demand. In a market where the
product is at other stages of the life cycle, the communication objectives would be
different. If there is a serious new competition in one market, fighting competition could be
a major objective of advertising in that market at that time.

 Determining the Message:

Kotler point out that formulating the message will require solving four problems: What to
say (message content), how to say it logically (message structure), how to say it
symbolically (message format), and who should say it (message source). Quite obviously
the decisions regarding the message content, message structure, message format and
message source are influenced by certain environmental factors like cultural factors and
legal factors. The differences in the environmental factors among the countries may,
therefore, call for different messages so as to be appropriate for each market.
 MAJOR DECISIONS IN INTERNATIONAL
MARKETING COMMUNICATION

 Budget Decisions:
The size of the total promotional expenditure and the apportioning of this
amount to the different elements of the promotion mix are very important but
difficult decisions.

 Communication Mix Decision:

Difference in the marketing environment may necessitate variations in the
communication mix because channel or medium that is very effective in one
market may not be so effective in another market. Some channels which are
effective in certain markets may not be available or underdeveloped in some
other markets. More about the communications mix is given in the next section.
 COMMUNICATION MIX

The international communication mix consists of a diverse set of communication tools

such as advertising, personal selling, sales promotions, public relations or direct
marketing.

 Advertising: The advertising is any paid form of non-personal presentation and

promotion of goods and services by the identified sponsor in the exchange of a fee.
Through advertising, the marketer tries to build a pull strategy; wherein the
customer is instigated to try the product at least once. The complete information
along with the attractive graphics of the product or service can be shown to the
customers that grab their attention and influences the purchase decision.
Advertising regulations differ between countries. The relative effectiveness of
different media may be different in different countries. Similarly, media availability
and efficiency may also vary.
 COMMUNICATION MIX
CONTD…

 Personal Selling: This is one of the traditional forms of promotional tool wherein the
salesman interacts with the customer directly by visiting them. Personal selling may be
preferable when the product is technical in nature, is of high unit value, and the number
of customers is limited. Sometimes personal selling can be an effective promotion tool for
consumer goods also.

 Sales Promotion: The sales promotion is the short term incentives given to the
customers to have an increased sale for a given period. Generally, the sales promotion
schemes are floated in the market at the time of festivals or the end of the season.
Discounts, Coupons, Payback offers, Freebies, etc. are some of the sales promotion
schemes. Sales promotion may also include many things like trade fairs and exhibitions,
samples, gifts, games, lotteries, etc. With the sales promotion, the company focuses on
the increased short-term profits, by attracting both the existing and the new customers.
Regulations regarding sales promotion differ between countries. Trade fairs and
exhibitions are effective promotion methods for small exporters.
 COMMUNICATION MIX
CONTD…

 Public Relations: The marketers try to build a favorable image in the market by
creating relations with the general public. The companies carry out several public
relations campaigns with the objective to have a support of all the people
associated with it either directly or indirectly. The export promotion organizations
in India have a great role to play in promoting India’s exports through public
relations. International marketers can communicate with foreign buyers through
publicity releases directed to the new product and new literature section of those
publications serving their target audiences.

 Direct Marketing: With the intent of technology, companies reach customers

directly without any intermediaries or any paid medium. The e-mails, text
messages, Fax, are some of the tools of direct marketing. The companies can
send emails and messages to the customers if they need to be informed about
the new offerings or the sales promotion schemes.
 ROLE OF EXPORT PROMOTION
ORGANISATIONS

•Export promotion organizations like Export Promotion Councils (EPC), Export

Development Authorities, Commodity Boards, India Trade Promotion Organization
(ITPO), Exim Bank etc., can play a very important role in promoting Indian products
abroad.
•These organizations undertake export marketing communication by:
i. Advertising
ii. Sales Promotion
iii. Public Relations
•The Export Promotion Councils, Trade Development Authorities and Commodity
Boards sponsor trade fairs.
•Similarly, other organizations sponsor international fairs of the respective products.
These organizations also help in the participation of Indian exporters in the fairs held
abroad.
 ROLE OF EXPORT PROMOTION
ORGANISATIONS

•Export marketing communication by these organizations is not for the

benefit of any particular firm.
•These organizations aim at:
i. Promoting the Indian products.
ii. Creating awareness about India’s export potential.
iii. Impressing foreigner’s about India’s industrial advances and technical
capability.
iv. Improving the quality image of India.

•The role of these organizations assumes greater importance in the light of

the small sizes and resources of the Indian exporters.
 TRADE FAIRS AND EXHIBITIONS

• Trade fairs and exhibitions, by bringing potential buyers and suppliers in contact
and imparting information about the relevant development around the world, play
an important role in International marketing.
• A trade fair, as its name implies, is target directed. It is staged for the purpose of
selling goods or demonstrating new ideas and techniques. An exhibition on the
other and, is not specifically for trade but for the public.
• In certain cases they have a special significance. For example, in Libya, where
media advertisement for products is not permitted, the annual Tripoli International
Trade Fair is very important means to promote business. Friendly countries are also
permitted to hold single country /single product exhibition and trade fair.
• There are two types of fairs- general fairs and specialized fairs.
 TRADE FAIRS AND EXHIBITIONS
CONTD…

•At a General fair, the goods displayed cover many different fields. The general fairs attract
visitors of all ages, tastes and types and, therefore, is a good place to show consumer goods
or new products that needs to be seen and accepted. National pavilions are often built for
general fairs and in them the government organizes an exhibition that gives the visitors a good
idea of country’s industry, agriculture, ways of life and tourist attraction as well as products it
wishes to sell abroad. In other words, the purpose is largely to build up an image of the
country in the public mind.

•A Specialized fair concentrates on products of a particular industry or group of industries.

Within that industry or group, a large number of products may be on display. If the product that
an exporter, actual or potential, wishes to display is one that interests a specific group of
buyers and especially if it is technical in nature, the specialized fair is probably the better
choice. Many prefer the specialized fair because it is not open to general public or open only
at specific times and people who come have both an interest and some knowledge of the
product.
 TRADE FAIRS AND EXHIBITIONS-
BENEFITS

 In countries where media advertising is not permitted, fairs and exhibitions have a particularly
important role in trade promotion. International fairs bring together at a convenient place
potential buyers and sellers from all over the world and facilitate broader communication and
information dissemination.

 Fairs and exhibitions provide the sellers opportunity to promote their products and to contact
both existing and potential customers. They get an opportunity for direct interaction and
feedback.

 Fairs and exhibitions provide an opportunity to know the developments and trends in the
industry concerned. In trade fairs/ exhibitions participants include not only the manufacturers/
sellers of the final products but also the suppliers of machinery and technology, raw materials,
and intermediates, packaging devices and materials, etc.
 TRADE FAIRS AND EXHIBITIONS-
BENEFITS

 They also often enable participants and visitors to know about business opportunities,
government policies, assistance packages, etc. For example, at the Indian Sea Food
Fair, the Seafood Exporters Association and the Marine Products Export Developments
Authority seek to give wide publicity about the government policies and assistance for
the development of India’s seafood export industry, including the scope for foreign
participation.

 Fairs and exhibitions facilitates gathering of competitive information.

 Fairs and exhibitions may help the manufacturers in improving the sourcing of
technology, materials and buyers. Similarly, they help the buyers in improving the
sourcing of supplies.
 PERSONAL SELLING IN
INTERNATIONAL MARKETING

•Personal selling is the personal communication of information to persuade

prospective customer to buy something- a product, service, idea, or
something else. This is in contrast to the mass, impersonal communication
of advertising, sales promotion and other promotional tools.
•Personal selling may involve personally contacting, for promotion, the
prospective final consumers and/or the members of the channels of
distribution.
•Management of personal selling involves several aspects like management
of the ways of personal selling, management of the process of personal
selling and management of the sales personnel.
 WAYS OF PERSONAL SELLING

With reference to where and how the prospects are contacted, there are three broad ways of personal
selling:-
Meeting the Prospects in the Foreign Markets

The foreign prospects are met in their respective places in the foreign markets. This may be done by:

a) Company’s Travelling Salesmen Attached to the Head Quarters: This is done by companies which do
not have offices in foreign countries or by companies which do not require full time foreign based
salesmen.

b) Company’s Salesmen Attached to the Company’s Office in the Foreign Market: This is a common
practices with companies having marketing offices abroad and which are in need of the services of
full times sales personnel.

c) People Temporarily Hired: Local people may be hired for some short- term requirements like product
introduction, market entry, etc.
 WAYS OF PERSONAL SELLING
CONTD…

 Meeting Prospects at Trade Fairs and Exhibitions

Trade fairs and exhibitions are regarded as very effective method of export
promotion because they enable a firm to meet many prospective customers
at one place without incurring much expenditure. There are broadly two
categories of fairs and exhibitions:
a) International fairs/ exhibitions held in India, like the Indian Seafood Trade
Fair held every alternate year in India which attracts a large number of
foreign customers from different countries.
b) International fairs/ exhibitions held in foreign countries which attracts very
large number of prospective customers from a number of countries.
 WAYS OF PERSONAL SELLING
CONTD…

 Visiting Foreign Buyers

Many foreign buyers visit India and other sources of supply of the goods they are
interested in. Sometimes such visits are at the initiative of the foreign buyer who
wants to understand well the supply conditions and to enlarge his sourcing.
Sometimes foreign buyers visit at the invitation of the exporter. Export promotion
organisations like ITO, EPCs, etc., may also arrange buyer- seller meets. An
exporter may seize such opportunities to meet the visiting foreign buyers.
 PROBLEMS IN INTERNATIONAL
MARKETING COMMUNICATION

• Differences in Regulations
Regulations governing promotions vary widely between countries. An exporter has to
understand these regulations thoroughly and ensure that the promotion programmes are
in conformity with such regulations of each country concerned.
• Cultural Differences
The cultural factors are very complex and difficult to understand. What may appeal very
well to people of one country may be distasteful or even offending to people of some
other countries. The differences in the beliefs or attitudes associated with colours,
numbers, and symbols etc, are well known. The differences in the consumer behavior
and consumption habits are also very important factors to be considered in designing the
communication strategy.
 PROBLEMS IN INTERNATIONAL
MARKETING COMMUNICATION

• Media factors
The effectiveness of media, the availability of media, the cost of media, etc. differ
between countries and this may call for different promotional media strategies in
different countries.
• Infrastructure
Besides the availability and efficiency of the promotional media, there are several
other infrastructural factors which affect marketing communication like the availability
and equality of advertising agencies, marketing research firms etc.
• Cost Factors
The cost of promotion, particularly advertising, in advanced countries is often
prohibitively costly for Indian exporters who, in general, are of small means. The
advertising outlay should normally be very large if it should have any impact.
 PROBLEMS IN INTERNATIONAL
MARKETING COMMUNICATION

• Language Factors
There are many instances of the language causing problems in international
marketing communication. Word by word translation of Ad slogans and the like into
certain foreign languages sometimes give different or distorted meaning. Similarly, the
same word may have different connotations in different languages.
• Home Country Regulations
There may also be home country regulations which affect promotion. For example,
Indian exporters are confronted with certain Government of India/ Reserve Bank of
India regulations regarding promotions abroad like the restrictions on expenditure
abroad for promotion.
THANK YOU