INTERNATIONAL ADVERTISING

mk364 - international advertising

mk364 - international advertising

INTERNATIONAL ADVERTISING

THEME 5 - INTERNATIONAL ADVERTISING MANAGEMENT

Introduction

This theme includes consideration of (international) marketing research generally, the communication process and patterns around the world and inevitably adaptation/standardisation, as with brands and branding. The management of international campaigns must also include some reference to (international) advertising agencies and marketing communications research specifically. The key word here is integration. That is to say, the notion that one can study advertising (whether international or not) in isolation from other elements of the communications mix, while not impossible, is improbable or undesirable.

Marketing communications

MARKETING, EXCHANGE AND CHANGE

Basic marketing theory is assumed. Marketing is said by many to be in a state of transition. Some might say marketing is no longer strategy but a requirement, a necessity. In particular the "information explosion" is upon us. The world wide dominance of the USA is waning somewhat and we have moved chronologically from American manufacturing and distribution dominance of the 1950s and 1960s through to cost-cutting and re-engineering in the 1990s.

1950s/60s - saw America's manufacturing base largely undisturbed with distribution systems developed to get produce out into the market place. Communications played a very minor role.

1970s - Japanese introduce quality as a basis for competition.

1980s - saw increased competition based around price in order to clear the market place.

1990s - has seen so far cost-cutting and re-engineering.

2000+ - will see the dominance of technology and communications.

Right now we see technological influence in terms of, for example, digital technology. For example Eastman/Kodak have digital photography. If this is introduced too fast then this would kill off the paper and chemicals business. If too slow then they miss out to the competition. Ultimately the consumer will control this not corporations. Levi and many others are on the internet. The consumer who has the technology can order direct. United Airlines offer tickets, hotel reservations, car hire - all on PC software. This is not good news for travel agents. As Don Schultz (1996) put it the key to this transition the transfer of information technology first into channels then into the consumer. Visually this looks something like:

HISTORICAL CURRENT 21st CENTURY

MARKETER MARKETER MARKETER

CHANNEL CHANNEL CHANNEL

MEDIA MEDIA MEDIA

CONSUMER CONSUMER CONSUMER

So in the past manufacturers have hooked into channels. For Schultz this is a big mistake. In the USA P&G have become captives of Wal Mart. Their failure in Brazil is linked to Wal Mart's failure there. The future appears to be in the realms of interactivity. Fragmentation has begun and the myth of company/corporate image is dissolving before us. Coca Cola has a thousand - maybe a billion - images world wide. The consumer is still small but is growing fast in terms of control.

THE COMMUNICATION PROCESS AND THE MARKETING/BUSINESS ENVIRONMENT

The process is a pre-requisite to the study of international advertising and marketing. Most writers agree that the sender uses socio-cultural cues and symbols familiar to the receiver and selects media that are socio-culturally and legally apt. Factors affecting communication on this scale are: language - e.g. brand names; socio-cultural - e.g. colour, e.g. beliefs; economic - e.g. literacy, e.g. media; legal - e.g. local advertising regulations.

Marketing Communications and Communicators

The main concern is for the fundamental use of the very basic model of the (marketing) communication process used by many text book writers to suggest the availability of, at the very least, a framework for marketers to help manage their various forms of communication - whether mediated or interpersonal. Buttle (1995) provides a useful history/ancestry of communication (and marketing communication) theory and points to the lack of explicitness regarding theory. To quote Buttle: "Theory without practice may be barren and vacuous, but practice without theory risks being gratuitous and promiscuous " (p298).

This is central here since we are concerned with practitioners and what they can gain from the theoretical stances taken by writers - whether practitioners themselves or academicians - in order to provide a framework or even simply a basis from which to build the desired model.

Communications models

The commonest form by far and away in the text books, this deals with the problems of one way mass communication. To do this accurately is very difficult to achieve. This looks simple but in practice is far from simplicity. The basic model is shown below:

_noise________________________________noise_________________

Source Encodes Signal Decodes Destination

(Communicator) (Message) (Receiver)

FEEDBACK

_____________________________________noise_____________

Numerous models have been developed in this area which help further develop this general framework for understanding. Some are described below.

1. Step Flow or Personal Influence Models

These are very simplistic and usually involve one, two or multi step flows, opinion leaders/formers/followers and necessarily innovator theory and the strength of word-of-mouth.

Numerous models have been developed in this area which are said to provide general frameworks for understanding. Step Flow or Personal Influence "models" were established by the 1960s. Here the message is encoded, transmitted and decoded by the receiver but this then includes the role of the opinion leader and word of mouth with others to move from one to two to multi step flows of the message which necessarily mutates and where the meaning intended by the sender can be either enriched or changed in some other way. This can be illustrated in the following way:

Target 1

Mass Media / Target 2

Target 4 (Opinion

Leader)

Target 3

.

Target 1

Mass Media / Target 2

Target 4 (Opinion

Leader)

Target 3

.

2 . Innovation Theory

The innovation curve (Rogers, as early as 1962) is well covered in basic marketing theory and texts and should be known to the reader already. This is shown below:

Early Early Late

Innovators Adopters Majority Majority Laggards

------------------------------------------------------------------------------------------------------------

2.5% 13.5% 34% 34% 16%

The process of adoption and diffusion of innovations is theoretical and the curve need not be normal as depicted, but can be skewed depending upon the makeup of the population or sample. The importance of innovators and early adopters in terms of word of mouth communications should not be underestimated.

As with all stage models each stage is sequential, hierarchical and in this sense is open to the usual criticism of stages being left out, or out of sequence etc. This model is, however, useful from the marketing communications perspective with regard to objectives and strategy (for example providing persuasive information through a particular media vehicle). Rogers five stages are:

i. Knowledge - the DMU becomes aware of the innovation but has nothing to go on. The opportunity is there to provide (persuasive) information through channels such as the media.

ii. Persuasion - the perceived characteristics of the innovation become important as do the messages from the media, opinion leaders etc.

iii. Decision - attitudes are formed and a decision to adopt or reject the innovation made. Communication is clearly important in this.

iv. Implementation - the DMU needs to know how to access the innovation for trial if not rejected and communication has its role to play in this.

v. Confirmation - post-trial the innovation will either continue or be delayed or be rejected. it may well be re-adopted or rejected continuously. The DMU can be assisted in this process by persuasive communication, helping dispel worries or negativity and reaffirmation of the original decision with post-behavioural consolidation.

3. Hierarchy of Effects

When a message is sent to an audience it is assumed that the audience responds in some way. There are many possible responses which can be grouped into three distinct categories:- Awareness; Attitude; Behaviour. All messages attempt to influence at least one of these responses. Hierarchy of Effects therefore states that a consumer must pass through a series of stages from unawareness to purchase and brand loyalty. A number of "models" have been developed. Copley (2004) provides a useful prcis shown below:

Model Cognitive Affective Conative

_____________________________________________________________________________________

AIDA Attention Interest, Desire Action

(St. Elmo Lewis, 1900)

AIDAS Attention Interest, Desire Action, Satisfaction

(Sheldon, 1911)

AIDCA Attention Interest, Desire, Action

(Kitson, 1921) Conviction

AIDA Attention Interest, Desire Action

(Strong, 1925)

DAGMAR Awareness, Conviction Action

(Colley, 1961) Comprehension

Lavidge and Steiner Awareness, Knowledge Liking, Preference, Purchase

(1961) Conviction

Adoption Awareness Interest, Evaluation Trial, Adoption

(Rogers, 1962)

HOWARD AND Attention, Comprehension Attitude, Intention Purchase

SHETH, 1969)

On line info Exposure, Attention Yielding, Acceptance Retention

(Hofacker, 2000) Coprehension, Perception

These deal then with the think-feel-do sequence of events regarding the cognitive (awareness, knowledge), the affective (interest/liking, desire/preference/conviction) and the behavioural (action/purchase). They are subjected to the usual criticism that is applied to stage models but also that knowing the level of communication input in order to facilitate change is difficult to measure. Until this is known an optimal communications mix cannot be devised and implemented.

4. Kellman's Source Characteristics Model

Fill (1995) includes this model which of course tries to break down the ways in which sources obtain and retain their characteristics which can be used in message strategy. Kellman's Source Characteristics Model again dates back some time (to the 1960s) and deals with credibility, attractiveness and power. This clearly isolates:

- credibility (for objectivity , relevancy, expertise, trustworthiness etc.)

- attractiveness (through identification with the source)

- power (when the source can reward and punish and therefore involves compliance)

High credibility is not necessarily the most effective in certain situations as might be expected. The use of a high credibility source is of less importance when receivers have a neutral position. This is clearly plausible with regard to low and high involvement and where risk is involved. Everyday products like insurance can be promoted in this way.

Empathy or correlation between source and recipient means that the receiver will find the source attractive and a relationship can then develop where the latter sees him/herself in the situation depicted (say) through slice of life advertising i.e. relates to it, identifies with it. and the problems it solves. Many examples exist. In the UK the Oxo Family would be typical.

Power is more easily seen in personal communications situation where both the stick and carrot are in evidence - expense accounts, type of car allowance, bonus rewards and penalties etc.

5. Model of (Mass) Communication.

For this to be of any practical use in the real world of course it has to aid the marketer in terms of effective and efficient communications. Fundamentally, the idea is for the communicator to be in a position to understand the (target) recipient well enough to be able to encode desired messages with a high degree of certainty that there will be no "noise" in the system, the task being to understand how decoding will occur, the transfer of pure, unadulterated meaning. It is of course recognised that the marketer is not the only player in this game. The target is another player but other influences are part of the process - the bullet theory (Schramm) or hypodermic effect (Klapper) having been rejected for some time with an emerging preference for interactive and integrative rather than linear thought. Buttle (1995) provides a clear analysis of commonalties within the various representations of the communication process, identifying four such commonalties and concluding that marketing communications theory fails to draw on the very disciplines it should. Looking at the family/household, institutional and cultural levels (and not just the individual level). Buttle concludes that much is missing from the process. Similarly the tendency to focus on individual messages is clearly misleading to say the least. Cumulative impact, shared meaning, derived symbolic meaning and not least meaning derived from non-promotional marketing and other variables that are bound to have some sort of effect. Belief in the notion of the passive audience is long gone and the exposure - audience uses/gratification debate (or content does something to people as opposed to people doing something to the content) seems to have been won by those who favour the interactive approach. The notion of source intent is clearly not without problems. Linked to this is co-orientation. To avoid problems with fidelity the communicator can opt for a closed text to avoid misreading, misunderstanding and so on which of course ignores the social and other contexts people necessarily operate in.

Buttle therefore condemns the usual marketing communications theory as ill informed and narrowly focused. The danger in educational/learning terms is that lecturers think that this is what students need to be practitioners, to understand and bring about the usual cognitive/affective/behavioural sequence in the short term - yet all of this is steeped in 1940s and 50s thought with many important parameters unaccounted for and ignored. In a sense one can argue that such parameters are accounted for within the notion of 'realm of understanding/field of experience', one cannot escape the feeling of opportunities being lost through not pursuing greater understanding of such effects.

The marketing communicator, it could be argued, has a lot to be gained from the participation of sociologists, anthropologists, semioticians, cognitive scientists, even psychoanalysts. This qualitative shift in the recruitment of consultants and experts undoubtedly suggests a new phase in the attempts to penetrate the secrets of the black box, Mattelart and Chanan pp170-1. (1991). For example, the intimate relationship between the two processes of buyer behaviour and marketing communications is well recognised in the traditional marketing literature. For the most part these follow the rational/cognitive/systematic/reasoned consumer processing model, although to be fair to Shimp (1997) this text does at least try to introduce the fun/fantasies/feelings of the hedonic, experiential model after Hirschman and Holbrook (1982) who were some of the first to challenge the traditional view of consumption, particularly from the (marketing) research methodological standpoint.

Similarly, language is used as a model for all forms of cultural discourse and therefore semiologists borrow from the structural linguists (principally de Saussure) of the first half of this century whereby language is seen as a whole system of rules governing the selection and combination of different signs out of which meaning is produced. Since the transfer of meaning is fundamental to marketing communications, there is much to be gained for the marketing communicator from its study and use.

The most frequently adopted model of the communications process in marketing terms is that of Schramm (1971), revised from Schramm's 1954 model and in itself derived from Lasswell's (1948) semantic description and Shannon and Weaver's (1948) "model" of the communication process. For example Fill (1995), Belch and Belch (1995) to name but two of many, use this as a fundamental building block of entire texts. The marketing communications process for many is therefore acceptable when represented thus:

SENDER/SOURCE

ENCODES

REALM OF UNDERSTANDING/FIELD OF EXPERIENCE MESSAGE/SIGNAL

NOISE NOISE REALM OF UNDERSTANDING/ FIELD OF EXPERIENCE

DECODES

RECEIVER/RECIPIENT

FEEDBACK

NOISE

Elements of the Marketing Communications Process

The elements of the process for our purposes here need to be explained and broken down into their own constituents in order that a model can be rebuilt. Taking these in turn:

Sender/Source

A person, group of people, company or some other organisation may wish to transmit/relay an idea, set of ideas, a proposition in order to share something with another party. This out of necessity includes the encoding of a message in some shape or form with the intention of achieving one or more of the aforementioned communications objectives, and necessarily involves the sender/source itself as part of that message. The source characteristics outlined in the Kellman model above apply here so that sales people, advertising etc. should have elements of trust, likeability, attractiveness, power and so on in order to influence and persuade. A trend (from America) in recent years in advertising has been to use CEOs like Bernard Mathews (UK - Bernard Mathews - especially turkey produce) or Victor Kyam (USA/International - Remmington) to get across enthusiasm, likeability and so on. Similarly, endorsers such as Sir Robert Mark (UK), ex top police chief, are thought to be very credible with road safety and hence are good, credible, endorsers of (say) car tyres.

Encoding

If the problem is perceived incorrectly by the source then the wrong concept might be developed and encoded making the communication faulty. Some form of situation analysis is useful here. We are concerned about actuality and perception, where any mismatch is the perception itself in the mind of the transmitter. This makes a lot of sense in the real world of everyday experience where thought/ideas have been translated into symbolic form. The problem lies in the task of getting the right sentences, words, symbols - from a vast array of verbal and non-verbal elements which will communicate effectively.

The message

This then is the symbolic representation of the sender/source's thoughts/ideas. If the source does not say what he means, even if the problem is understood, then the message strategy will be faulty. Objectives should be met by using the best combination of marketing communications tools - advertising, packaging and so on - with the right kind of message at the right time. The message itself has no meaning. Meanings are part of the message user i.e. sender/source or recipient/receiver. Many options are available to the communicator including one or two sided arguments, open/closed conclusions, rational/emotional appeals. All this adds up to creative strategy. (Refer back to theme three).

The medium

As the conduit/channel for the message, the medium (or particular vehicle) and its nature and characteristics are of crucial importance to marketing communicators whether this be a newspaper, a trade show or a sales person (messages are often viewed as mediated or unmediated if a sales person or advertisement is used respectively. The medium or media vehicle might be, for example, an upmarket, glossy magazine. The advertisement might well use references to (say) the works of Cezanne to sell crystal glass products. This would require a certain knowledge of painting etc. (even if only gained through simplistic magazine articles!) on the part of the reader in order for the advertisement to work on that reader. In other words, as McCluhan said a long time ago, the medium is the message - or at least part of it. The medium element of the marketing communications process can in turn be broken down into constituent parts. (Refer back to theme 4).

Decoding

This involves the deriving of meaning from the received message that is a composite of the actual message sent and any influences the medium may have had upon it. If the receiver does not understand the message or does not interpret it in the way it was meant then communication will be faulty. Many feel that in marketing communications terms there is a need for clarity and simplicity where, for example, key selling points are understood.

Recipient/Receiver

The receiver is normally the person or people, organisation (hence the reason why some authors use the catchall DMU, decision making unit) that the sender wishes to share thoughts, ideas etc., with. This, of course, will not always be the case since clearly others will receive the message that is not intended for them. The receiver might understand the message but might ignore or forget it. In marketing communications circumstances some believe that repetition can educate the customer/consumer over a period of time.

Feedback

This loop of the process provides the sender/source with a channel of evaluation of the message encoded and sent first in terms of how accurately the message has hit the target and second in terms of the degree of correctness of interpretation on the part of the recipient/receiver from that which was intended. This then allows the sender/source to correct any ineffectual or misdirected messages. Typically viewed in marketing terms as a marketing research opportunity, this involves straight forward activities like coupon redemption in sales promotions but also things such as awareness scores, image studies, tracking studies and so on some of which may be continuous rather than ad hoc.

Noise

Noise, interference or impedance are terms often used interchangeably to describe the blocking or distortion of the message at any stage in the marketing communications process. This can take many forms from the poor signal on radio or television resulting in poor sound and/or vision to the lack of knowledge which causes a consumer to be unable to fully understand. This can therefore be physical or cognitive and can be anything from interruption by a secretary to the shear amount of clutter in a newspaper or magazine.

Realm of understanding/Field of experience

This is often included in representations of the marketing communications process to indicate the possibilities of overlap between sender and receiver so that 100% commonness of field of experience (what Shimp 1997 calls 'perceptual field') is a possibility.

NOTE: It is in the areas of noise and realm of understanding/field of experience that one could add to the above diagram an international perspective that describes the complexity of international advertising/marketing. Clearly the propensity for mistakes is higher when dealing with unfamiliar environments etc. The Toyne and Walters (1993) conceptualisation of the sender-receiver model adds language, culture, social, economic, legal/regulatory, competitive and noise differences

Managing international communications

A managerial approach to selecting the routes and methods of communication necessarily means one has to:

- Understand how an organisation communicates with its markets

- Identify any mismatch between the organisation and customers

- Brief internal and external agencies

- Identify and exploit buyer motivations in a given market

- Determine the optimum communications mix for a given company/product/market situation

- Plan the company response to consumer feedback

Only by analysis of the problems raised in the marketing communications process can an organisation begin to communicate effectively with its market(s). At the same time communication, like so many things, has to be managed. Below is a tried and tested model

that enables just this.

DECISION SEQUENCE MODEL

Copley (2004), Fill (1995, 1997, 2002) and many other texts illustrate and use the decision sequence model. This is the epitome of APIC (Analysis, Planning, Implementation and Control). The approach involves is a commonly used model that deals with both the 'art' and 'science' aspects of communication. The decision sequence imposes a managerial framework on a process that is often otherwise conducted by `the seat of the pants'. Here a vertical representation is used (which is the commonest form) but be prepared to consider Shimps (1997) offering which is horizontal, but means essentially the same thing.

i. Situation Analysis (You will have noticed that Fill calls this Key Factor Analysis) is necessary to guide the assessment of the problem, the "current state of the world", the "where are we now" review. This requires:

An assessment of the Consumer

Descriptors - Segmentation, the target market

Perceptions - Product, Competition

Processes - Decisions, where, how, in store? at home?

An assessment of the Product Class

Consumer perceptions

Attributes and benefits of the product

How well brands perform

Uniqueness offered

An assessment of the Company/Organisation (Strengths, Weaknesses)

Corporate goals and philosophy

Financial and production capabilities

Marketing support - distribution, sales etc.

An assessment of the environment (Opportunities, Threats) - usually found in PEST/STEP form.

Patterns around the world

Most authors deal with this to some degree, usually in the area of advertising statistics. The inference is that there is a positive correlation between advertising expenditure and stage of economic development. Types of media availability vary enormously around the globe and that is not just a function of economic status. There is however a good correlation between economic status and the number of television sets per capita (De Mooij 1994).

Ethical and regulatory questions have to be addressed (see theme 6). The social benefits of advertising - or the reverse - are particularly sharpened in the international context. the issues include: economic value; competitive practices; consumer protection. (see especially Toyne and Walters, 1993, for a useful synopsis of this).

Uniformity or not?

The organisation may or may not have to adapt or customise or modify creative/message strategy (see theme 5) because of local differences socio-culturally, economically, legally etc.. - and the availability - or not - of particular media and media vehicles (theme 4). The central debate remains that of degree of uniformity. The pros and cons are obvious: economies of scale, consistent message across markets, centralised control; different market characteristics, media availability and costs and government regulations. The argument appears not capable of being settled since different strategy appears to work in different situations. Once these geographical issues are decided upon then the scope of the campaign, objectives and elements of strategy can be worked on.

International marketing research

While the basic techniques remain the same internationally as they are domestically, a number of issues arise on the international scene. Its perhaps useful to think here in terms of:

Secondary research - where statistics do not match across borders problems arise. Examples are wealth, household size, size of the family, age, and discretionary income/purchasing power. The notion of equivalence is a useful one,here (see Toyne and Walters chapter 11). Omnibus surveys as conduct by for example Newsweek or research agencies have become me an important part of the scene.

Primary research - research that is commonplace in Europe is problematic elsewhere in the world either because the products are sensitive or it involves the role status of women or literacy to name but a few examples. The problems are mostly cultural but can also involve the media infrastructure and other issues such as the mail service that can hamper the way research is conducted. Lifestyle studies as offered by agencies such as Neilsen and Young and Rubicam (theme 3) have a particular significance for the development of advertising messages and symbols.

(See Mueller chapter 8 or de Mooij chapter 10. The Toyne and Walters text, chapter 11, is particularly useful).

ii. Objectives and Positioning. - the next step in the DSM looks at objectives which are involved with direction, "where do we want to go". There is a need for a clear statement of the 3 Ts i.e. Target market, Time deadline, Task of message. Positioning describes how the target should perceive the product relative to the competition. Smith (1997) uses SMART - specific, measurable, achievable, relevant, timed. Most if not all writers would agree with this and the fact that the role of objective setting is to constrain strategy and help eliminate the large number of strategy options. MBO -management by objectives - is as old as time but the 1950s is as good as any an era to mention in the same sentence as people like Peter Drucker.

Objectives give direction, are a means to performance measurement and are consistent with time management. In marketing communications terms, the DAGMAR model is perhaps the best known of the hierarchy of effects. This stands for designing advertising goals for measured advertising results. This looks to measure the result of a specific communication task in terms of the think-feel-do/cognitive-affective-behavioural hierarchy of effects on a defined audience with attempts to measure the degree of change in a given time period as one moves through the hierarchy. An example might be to make 70% of the target audience aware of the new product and to achieve a 50% understanding of the proposition with 40% convinced but the expectation that when it comes to it 20% will purchase in the first period.

Marketing and marketing communications objectives

The distinction between the two should be clear. In the above simple example the marketing objective is to achieve 20% market share in the first trading period (say) year. The marketing communications objectives to help achieve this could be many and varied with the first being creation of 70 % awareness through (say) advertising but for conviction a combination of advertising and public relations may be used. As we move towards purchase sales promotion could very well have a role and so on.

NB. Shimp in chapter seven provides an excellent link between targets and objectives and the adoption and diffusion of innovations (after Rogers).

Positioning

This means seeing things from the customers perspective (and sometimes vis--vis the competition). It consists of all action taken to make sure that the marketplaces perception is managed. Strategic positioning is a result of communicated perceptions about a product or brand

(image is a more global impression). Position involves product attributes/features with related perceived or otherwise benefits which can be seen in the statements made about the product/brand in marketing communications whether this be verbal or non-verbal (or both). BMW thus becomes the ultimate driving machine, Volvo is first of all safe, then has longevity and now is well designed. There are many ways to achieve positioning: through actual attributes; through benefits/solutions to problems; through price/quality; and so on.

In terms of developing a positioning strategy, Hiam and Schewe (1992) offer a seven point system:

1. Determine relevant product/market - or more than one if applicable

2. Identify the competition - whether primary (Perrier versus other bottled water) or secondary (Perrier versus other soft drinks)

3. Determine how consumers evaluate options - marketers must understand the standards by which consumers evaluate and reach decisions

4. Learn how competitors are perceived - based on the same kinds of parameters.

5. Identify gaps in positions held - this helps pinpoint gaps that are attractive and that are not!

6. Plan and carry out the position strategy - design a programme

7. Monitor the position - seek to check for adjustments

Upmarket, Classy

x x

Porsche

Mercedes

x

BMW

x

Volvo x Honda

Conservative Sporty

x x Toyota x Nissan

Ford

x Hyundai

Practical, Affordable

A typical perceptual map of the UK car market.

Rothschild (1987) proposes several strategic issues for positioning/repositioning that emerge:

1. Consider relevant targets - it is better to dominate a segment than to try to be all things to all people.

2. Consider the entire product line - position products/brands so that the portfolio is optimised

3. Consider alternative bases - as earlier.

Positioning is achieved in a variety of ways. Features and benefits can be used, need or usage occasions, against another brand or product class and so on. This is qualified by whether the brand is leader or follower (never attack the leader straight away), the current positioning of competition, resources available.

iii. Strategies: This is the "how do we get there?" question. These have to be created and co-ordinated even when developed independently. The basic marketing concept and mix and their meaning to the organisation was dealt with in effect in themes 3 and 4. Marketing communications can be defined as "every form of communication relevant to marketing" and "invites marketing management to question the efficiency of every item of communication as it relates to and affects the whole strategy".

Tactics

This consists of the basic communications mix and their derivatives as the requirements for effective communications and customer understanding. This requires an explanation of the product/service/organisation in order that comprehension is achieved. Marketing Communications therefore involves many things e.g. legible 'phone numbers on letterheads, brand name for display on packs etc., product/brand image via price/imputed quality, shape/design of container for recognition on television, shelves etc., colour of product/pack, easy-to-follow instructions which leads to customer understanding and better positioning of the company/brand. The basic marketing mix usually includes promotion as a fundamental element but this in itself is a mix of elements. The basic communications mix consists of

MEDIA ADVERTISING

SALES PROMOTION

PUBLIC RELATIONS

PERSONAL SELLING

CORPORATE PR (as opposed to marketing PR)

DIRECT RESPONSE MEDIA (direct marketing)

Source: Fill (1995).

This is forever developing and mutating. Corporate PR is probably at this point in time seen as being of greater import than product/marketing PR. The optimal mix is determined by factors such as degree of control, cost, credibility, size and geographic spread of target audiences. Less mainstream ideas, for example language and meaning (including the usefulness of semiology/ semiotics), might well be considered by the not-so-faint-hearted manager. De Mooij (1994) refers to one tone of voice that reflects the notion of' Gestalt or the whole is more than the sum of the parts in terms of what integration means i.e. consistency in brand development for brand loyalty; synergy of effort or spend; closer client/agency relationship. This will take teamwork rather than empire building and a means of effective measurement (see IMC later).

De Mooij views international advertising as being much less culture bound than the rest of the

communications mix. (With business to business marketing this is not so. Direct marketing has been used for some time internationally, as have trade fairs. Sponsorship, especially of international and global sporting events like the Olympic Games and (soccer) World Cup, has long provided a means to strengthening brand awareness and image and providing "single tone of voice" world-wide. It has become clear that in the last 20 years media advertising has seen less spend in favour of (especially) sales promotion. In 1976 the media/non-media spend ratio was 60/40. Now this is more like 30/70 (see Mueller, De Mooij, Kotler, Fill and many other sources). There is also a trend toward using a wider range of methods both nationally and internationally.

Sales promotion (Including international trade fairs, exhibitions, congresses) is about added value. Devices like coupons or competitions should add to a brand above and beyond its normal value. In consumer terms there are both tactical, short-term promotions and longer term, strategic promotions. De Mooij calls the former classical and the latter value. Classical promotions are the short-term type that we are all very used to. They are usually applied in a very localised fashion often varying within a particular country or region. Exceptions to this rule are things like samples in magazines e.g. of perfume in a sachet, which can be used in the international media. Value promotions are more to do with image. They are thematic, integrated with media ads/direct marketing/PR/sponsorship. The changing relationship between manufacturer and retailer is important here. The trend appears to be toward the more strategic use of SPs, integrating with thematic ad campaigns, sponsorship etc. whilst at the same time short term tactical SPs are being used locally. For De Mooij the challenge for integrated marketing communications is to link these two - the global, strategic approach with the local tactical approach in order to maximise communication effects.

Vignette - Natrel-Plus (Gillette)

The thematic approach embodied the " round-the-clock protection" idea for this deodorant and used a pan-European TV campaign. Strict product positioning was maintained and while promotional material was developed on a local level, the artwork etc. was controlled centrally. Watches and clocks were controlled centrally and used as free gifts to tie in with the theme. POS material was adapted for local conditions. The object was two-fold i.e. to achieve trial and to strengthen brand image. The three major elements were a special trial could offer, a special smell test and the chance to win a holiday at Club Med's Club Natrel in Turkey. The latter was in keeping with the healthy image of the brand. Overall the campaigns main strength was its creative consistency. Internationally SPs are prone to problems. Price promotions are not acceptable in some countries. Links with gambling and lotteries are problematic. Links with good causes are generally prone to success.

Source: de Mooij.

Trade fairs can be either the broad, general, annual event like the Hannover Fairs or rather more specialised events like the International Materials Handling Exhibition. Such events can be very important international media vehicles if the company is at the export stage where market possibilities can be explored before committing, products can be seen, tried, tested, demonstrated. The trade element is obvious as is the integrated nature of communications around such events. Measurement of effectiveness remains a challenge.

Public relations (PR) can be viewed as corporate or product/market. Basically the former deals with corporate image and has become more and more important internationally as borders blur. PR is particularly important to organisations like Exxon, Shell etc. in relation to the environment. PR is becoming more similar throughout the world. The media (including the internet and especially news groups/bulletin boards) may play a crucial role. At the product/market level PR was originally supposed to be different from other communication. Theoretically its aim is to create goodwill, understanding - a favourable marketing environment in which the rest of the mix can operate more effectively. Good PR can therefore save the organisation money, easily pay for itself. There are many potential publics both internal and external to the organisation but in particular the media are important in terms of presentation. Credibility is often much higher with a PR message rather than advertising which is partisan in nature. News, whether real or made up, is crucial to PR. Publicity is never free (just like the lunch) but some see it as a cheap, quick way of getting known and even selling directly. But just as with politicians, spin doctoring alone is not enough. You really do in the end need good policies/products. De Mooij (1994) uses Bodyshop International as an example of PR as a key tool in global communications whereby community links based on compANY FOUNDER Anita Roddicks beliefs.

Sponsorship includes relationships with events or clubs, persons or institutions etc. These are not new. Mostly, sponsorship is to do with enhancing corporate image. Sometimes it is to do with circumventing advertising regulations (especially alcohol and tobacco). There are many advantages to the use of sponsorship which advertising cannot offer. It is much more personal. Corporate hospitality can enhance reputations and images of companies, brands and individuals. De Mooij (1994) gives useful, brief examples from the arts, sport, causes and education. In particular there is a vignette of the Olympic Games generally and the Seoul Olympics in particular. De Mooij also covers the difficulties of measuring the effects of sponsorship, not least because it seems that if a brand is well known then the affect appears to be less than it would be for a less well-known brand. There is also the relationship with advertising to consider.

Direct Marketing is an area that is, of course, on the up. Database Marketing is often substituted for this term but DM is more than this. It includes TV, print/off-the-page, radio, mail, tele(phone), internet. Internationally the drawbacks are things like underdeveloped infrastructure/communications/media - e.g. poor mail service - but also levels of literacy and other such environmental considerations. Of course business-to-business marketing utilises DM a lot for the obvious target groups that have been relatively easy to access for years, particularly with the sales effort. Direct mail has been well used over the years to aid personal communication that is made a lot easier if the ground has been prepared. This is particularly the case with export selling. De Mooij gives a number of cases where DM has been used as an integral part of an integrated communications campaign. The obvious links between trade fairs, DM and personal selling at the international level are made on p.365 of de Mooij.

There are problems however. Direct marketing and in particular direct mail can only be used in a standardised way if, for example, decision making units in each country market are similar, attitudes toward what is often seen as an intrusion differ and so on. The English language, seen once more as the international language, can only be used in certain situations. Poor standards that have led to junk mail, junk 'phone calls and perhaps junk netiquette threaten the positive aspects of DM.

Personal Communication (Including Selling and Representation) - some of the above points are relevant here. Clearly at the international level trade fairs, direct mail and certain kinds of international advertising and publicity are particularly important. At the motivational level, incentives, often grouped with sales promotion, are critical as are sales conferences that exist to aid the sharp end. Sales people need encouragement but also information - on how the rest of the mix is working, on data bases, on new promotional material and how to use it, on product knowledge and back-up.

iv. Budget needs to be realistic, within resources. As strategies are developed, budget constraints need to be considered. There may be a need to change objectives/strategies.

v. Implementation needs to be considered in a test market fashion before full-scale commercialisation.

vi. Evaluation is necessary in order to find out if objectives are being achieved. This then merges with a new situation analysis.

The future of agencies and integrated marketing communications

A simplistic view of how IMC works is to concentrate solely on communications elements working together with a unified message, where below the line supports above activity and vice versa. This is the drive toward cost-effectiveness and careful planning creates marketing communications synergy which reinforces a consistent message or image in a cost effective manner (Smith 1993). But what is IMC really? As Massey (1994) suggests, the future of marketing communications seems to be integration just as it was synergy in the 1970s and pan Europeanism in the 1980s. This is perhaps so. But many would see integration as synergy, and the possibility of pan European advertising being allowed by a synergistic or integrative approach. Brown (1996) lists eight possible themes to explore the question what is IMC?:

1. Attitude of mind. IMC is an attitude, not a science. Brown says this is of no help.

2. One spirit. The single theme to support the brand, the intellectual message. Brown says this is overly-simplistic, where one voice, one look doesnt account for complexity.

3. One strategy. Of the marketing and then promo mix - a single communications strategy which embraces what it needs to achieve objectives.

4. Synergy. A unified message where each part reinforces the others, each drawing from each other.

5. Equal status. The line has gone and the mix is dictated by the brief, not the agency. Advertisings dominance is being challenged.

6. Merging disciplines. Or blurred edges since a lot of say advertising contains PR or SPs, despite some hostility between marketing and PR in the past. (see also Kitchen 1993).

7. Stakeholder emphasis. But IMC is not a panacea.

8. Marketing orientation. Understanding clients needs and how to satisfy them via IMC. (see also Schultz 1993).

The above is, in itself, rather unhelpful. However the notion that a drive toward IMC and branding without consideration of the customer is short sighted is, at the end of the day, a reiteration of 1950s and 1960s Levitt-style marketing myopia. The future lies not with outdated constructs that related to mass communication but with dealing with the increasing fragmentation of the mass into one-to-one situations - or something near this. The client-agency difficulties are potentially the biggest area of concern. Until agencies understand and serve clients needs better in this fragmented rather than mass world then this will not be resolved. There are a number of questions one can ask in this area. The answers to these are attempted, but some questions remain unresolved here, which are outlined below.

WHAT DRIVES IMC?

1. Financial factors. Schultz (1994) suggests:

- the recession

- the trend toward pay by results

- restructuring of how agencies are paid re billing/income/profit

- pressure to reduce media billing

- media fragmentation

all have contributed toward consideration of IMC.

2. The sophisticated client. Most commentators would agree that clients are a lot more sophisticated and knowledgeable than in the past. The mystique of advertising is diminished and a power shift occurred.

3. Disillusionment with the brand, advertising and agencies. In a similar vein to the above, own labels are stronger, advertising less revered and other elements of communications deemed important. Agencies have had to change, but should see this as a set of opportunities not threats.

4. Power shift to retailers generally and what they need/expect has meant more spend on below the line.

5. Environmental factors such as the new media, attitudes toward modernist marketing etc. have changed the way in which communication is viewed.

THE BENEFITS OF IMC

Linton and Morley (1995) provide a clear list of benefits of IMC to organisations (at the same time they admit that IMC may not be for all organisations). These are:

1. Creative integrity - theme and style consistent throughout, therefore impact not confusion. Can aid campaign build-up and provide materials for other uses.

2. Consistency of messages - following on from 1. above, straplines and other parts of the message can provide the basis for reinforcement, reminder leading to the development of the key message, visual standards, use of company colours consistently etc.

3. Unbiased recommendations - usually through one agency, through the line with no worries about earning commission from advertising billing only. Seek objectivity from start.

4. Better use of all media - allow each to work with each other to get the best out of all of it.

5. Greater marketing precision - via data bases and information processing generally. Allows the use of different elements to achieve different objectives.

6. Operational efficiency - Takes fewer people , can be a single interface and so less conflict. Simple compared to the potentially messy multi-agency situation.

7. Cost savings - re. admin., rationalisation of materials, artwork etc.

8. High calibre service - to all areas. IMC means professionalism for below-the-line as well as above. Overall service improved through the line.

9. Easier working relationships - One agency means no new learning curves because of knowledge of the clients business, simplified admin., no re-learning but ongoing, consistent.

10. Agency accountability - This has to be true if only one agency is used. Value for money should result.

WHO BENEFITS FROM IMC?

- Agencies. If they change to meet needs of clients i.e. if they apply good marketing practice to themselves. There are lots of opportunities - multimedia etc.

- Clients. The principal argument here is that it was high time anyway that clients made their budgets work harder for them.

- Consumers. If consumers dont benefit then the full benefit of IMC has not been passed on. There is not real evidence as yet as to whether the consumer is benefiting.

WHAT INHIBITS IMC?

- Lack of a clear definition. There is some debate as to just what IMC really is. Practical difficulties, for example the complexity of different objectives being achieved by different strategy and tactics, dont help. Implementation can be very difficult to achieve.

- Cultural factors. The main factor is change, or resistance to it. The culture of the organisation for example may be hung up on flashy ads on television. Or it may be that sales promotions have been the norm, linked to bonuses. Any change would be accompanied by conflict.

WHERE IS IMC GOING?

- Agencies. Agencies are going to have to add value beyond media buying and creativity. New structures are emerging. Agencies must seize this as an opportunity.

- Clients. The importance of continuity and depth of relationship will remain or get even stronger resulting in a situation akin to relationship marketing which has implications for the role of senior management.

AGENCY SELECTION

The selection of an agency to deal with marketing communications - particularly advertising - will depend upon the type of company i.e. its level of international involvement and it organisation. Where standardisation is prevalent the company will increasingly choose an international agency rather than use a domestic one or local one. There are many reasons for this e.g. economic i.e. where agencies don't exist in say 3rd world countries. On the other hand where experience of culture etc. is necessary local agencies may be a better choice. The usual criteria operate - market coverage, quality of coverage and supporting activities (full service?). Most texts provide lists of the typical multinational agencies and there activities. Such organisations provide centrality, have experience of the culture etc. (or can buy in the services of a local agency) and usually have research experience in many locations.

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theme 5 - international advertising management

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theme 5 - international advertising management