1 tom gillpatrick, ph.d. juan young professor of marketing & executive director, filc master...

11

Tom Gillpatrick, Ph.D.Tom Gillpatrick, Ph.D.

Juan Young Professor of Marketing & Executive Director, FILCJuan Young Professor of Marketing & Executive Director, FILC

Master International Management ProgramMaster International Management Program

School of Business AdministrationSchool of Business Administration

Portland State UniversityPortland State University

Global Marketing

3 December 20033 December 2003

22

Selected Issues of Selected Issues of Global Marketing Global Marketing

StrategiesStrategies IV. Global Communication Issues

- Global advertising & culture- Global budgeting- Creative strategy- Global media- Global regulations- Agency selection &

coordination- Global IMC and other

promotion- Marketing and the internet

33

Week Seven Week Seven ObjectivesObjectives

12-3-0312-3-03

P1: Global Marketing CommunicationsP1: Global Marketing Communications Promotion Goals/ObjectivesPromotion Goals/Objectives Promotion FlowsPromotion Flows Promotion MixPromotion Mix

P2: Global Communications IssuesP2: Global Communications Issues P3: P3: Guest Speaker: Jim Thayer, President Guest Speaker: Jim Thayer, President

OSS OSS (Overseas Strategic Services)(Overseas Strategic Services)

Case Discussion: Case Discussion: Motorola China ExperienceMotorola China Experience

44

Basic Promotional GoalBasic Promotional Goal

Shift the Demand function

Price

Quantity

D1

D2

55

Marketing Communications & Marketing Communications & Managing Customer Managing Customer

ResponseResponse

Promotion ObjectivesPromotion Objectives Build AwarenessBuild Awareness Reinforcement or Change Attitudes or BehaviorReinforcement or Change Attitudes or Behavior ActionAction

Increasing Customer responseIncreasing Customer response Develop measures to evaluate effectivenessDevelop measures to evaluate effectiveness

Market Based: Promotion StrategiesMarket Based: Promotion Strategies

66

The Dual Role of Marketing The Dual Role of Marketing CommunicationsCommunications

Investing in the Enablers of GrowthProduct

Price/ Cost

Place

Promotion

ProcessesPeople/ Climate

“Sales over night” “Brand over time”

... Keeping the engine running

... Tactical

... Share of the market

... While changing the fan belt

... Putting the pitch before the product (Strategic)... Share of mind... Making the latent blatant

Positioning

77

Hierarchy of Effects Hierarchy of Effects ModelModel

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Implications for promotion mix

MediaAdvertisingPublicity

Sales Promotion

Personal Selling

88

Promotion FlowsPromotion Flows

Manufacturers Distributors Manufacturers Distributors RetailersRetailers

Consumer Consumer responseresponse

99

Communication TasksCommunication Tasks

Market- ID target market, PLCMarket- ID target market, PLC Message- content, structure,format, Message- content, structure,format,

sourcesource Media/channelsMedia/channels Mix- promotion mix- IMC, push/pullMix- promotion mix- IMC, push/pull Money- budgetMoney- budget MeasuresMeasures

1010

Customer Response Customer Response StrategiesStrategies

Pull

Customer-PushCommunications

Customer-PullCommunications

PushCustomerPreference• Awareness• Attraction

DistributorPush• Merchandising• Mktg.-Effort

Communications MixAdvertising

Sales PromotionCatalogs

Direct MarketingTelemarketing

Electronic MarketingPublic Relations

CustomerLoyalty• Commitment• Search Eff.

MarketCoverage• Availability• Stock-outs

1111

Customer Response Customer Response IndexIndex

Aware(63%)

Unaware (37%)

Don’t Comprehend (46%)

Comprehend(54%)

Interested(23%)

Intentions(32%)

Action(10%)

CRI

.3%

2%

5%

26%

29%

37%

100%

NoAction(90%)No Intentions

(68%)

Not Interested(77%)

1212

Poor ResponsePoor Response Marketing ProblemMarketing Problem Underlying CauseUnderlying Cause

Low AwarenessLow Awareness

Poor ComprehensionPoor Comprehension

Low InterestLow Interest

Low IntentionsLow Intentions

Low Purchase LevelLow Purchase Level

MarketingCommunications

MarketingCommunications

ProductPositioning

ProductPositioning

Distributionand In-Store

• Poor Media Selection• Insufficient Frequency• Poor Ad Copy

• Insufficient Frequency• Poor Ad Copy

• Insufficient Benefits• High Price• Poor Ad Copy• Weak Value Proposition• Need for Low-cost Trial• Not Readily Available

• Not Available• Hard to Find In-store• Insufficient In-store Services

Causes of Poor Customer Causes of Poor Customer ResponseResponse

1414

The International The International Communications ProcessCommunications Process

Message translated into appropriate meaning

Marketer with

a product

Information source

Competitive acti-vities, other sales-people, confusion and so on

Evaluation of communications process and measure of action by receiver

Advertising Media and or personal sales force

Action by consumer responding to decoded message

Encoded message interpreted into meaning

Noise

Feedback

Message channel

Decoding

Receiver

Encoding

Cultural Context A Cultural Context B

1515

A Model of the International A Model of the International Mass Communications ProcessMass Communications ProcessA Model of the International A Model of the International

Mass Communications ProcessMass Communications Process

Producer/marketer/advertiser

Sets objectives and advertising budget

Mass Media

Carriesthemessage

Advertisingagency

Developsmessage(encoding)and selectsmedia

Opinionleaders,individuals

Receive themessage andinterpret(decoding)

Individuals

Think, feeland act(hierarchyof effects)

Coordinationandcontrol

Generatefeedbackon effects

Sender’s cultural setting Receiver’s cultural setting

1616

The Four Components The Four Components of Global Advertisingof Global Advertising

The Four Components The Four Components of Global Advertisingof Global Advertising

The Four Components of Global Advertising

1. Message and Creative

2. Media

3. Strategy

4. Organization

1717

Global Advertising is Most Global Advertising is Most Powerful When:Powerful When:

Global Advertising is Most Global Advertising is Most Powerful When:Powerful When:

Global Advertising is Most PowerfulWhen:

• the image communicated can be identical across countries

• the symbols used carry the same meaning across countries

• the product features desired are the same

• the usage conditions are similar across markets

1818

Advertising Intensity Advertising Intensity in Selected Nationsin Selected Nations

Advertising Intensity Advertising Intensity in Selected Nationsin Selected Nations

CountryAdvertising as

percent of gross domestic productNorth America

Canada 1.17%United States 2.49

Latin AmericaArgentina 1.08Mexico 0.16

AsiaIndia 0.28Indonesia 0.39Japan 0.82Malaysia 0.85South Korea 1.21

Australia 1.20Europe

Belgium 0.54France 0.65Germany 0.82 (1990)Italy 0.57Sweden 0.63United Kingdom 1.35

1919

Text OverviewText Overview

1. Global Advertising and Culture1. Global Advertising and Culture

2. Setting the Global Advertising Budget2. Setting the Global Advertising Budget

3. Creative Strategy3. Creative Strategy

4. Global Media Decisions4. Global Media Decisions

5. Advertising Regulations5. Advertising Regulations

6. Choosing an Advertising Agency6. Choosing an Advertising Agency

7. Coordinating International Advertising7. Coordinating International Advertising

8. Other Forms of Communication8. Other Forms of Communication

9. Globally Integrated Marketing 9. Globally Integrated Marketing Communications (GIMC)Communications (GIMC)

2020

IntroductionIntroduction

There are many cultural challenges that There are many cultural challenges that advertisers face in global marketing.advertisers face in global marketing.

Global advertising encompasses areas such Global advertising encompasses areas such as advertising planning, budgeting, resource as advertising planning, budgeting, resource allocation issues, message strategy, and allocation issues, message strategy, and media decisions. Other areas include: local media decisions. Other areas include: local regulations, advertising agency selection, regulations, advertising agency selection, coordination of multi-country coordination of multi-country communication efforts and regional and communication efforts and regional and global campaigns.global campaigns.

2121

1. Global Advertising and Culture1. Global Advertising and Culture Language BarriersLanguage Barriers

Language is one of the most formidable Language is one of the most formidable barriers in global marketing.barriers in global marketing.

Three types of Three types of translation errorstranslation errors can occur can occur in international marketing:in international marketing:

Simple carelessnessSimple carelessness Multiple-meaning wordsMultiple-meaning words IdiomsIdioms

Other Cultural BarriersOther Cultural Barriers ReligionReligion

2222

1. Global Advertising and Culture 1. Global Advertising and Culture (contd.)(contd.)

Cultural traps/cultural dimensionsCultural traps/cultural dimensions Geert Hofstede’sGeert Hofstede’s cultural grid can be used to cultural grid can be used to

assess the appropriateness of comparative assess the appropriateness of comparative advertising campaigns (see Exhibit 14-2). advertising campaigns (see Exhibit 14-2). The five cultural dimensions include:The five cultural dimensions include:

Power distancePower distance Uncertainty avoidanceUncertainty avoidance IndividualismIndividualism MasculinityMasculinity Long-termismLong-termism

2323

2. Setting the Global Advertising 2. Setting the Global Advertising BudgetBudget

Companies rely on different kind of Companies rely on different kind of advertising budgeting methodsadvertising budgeting methods which which include: See Exhibit 14-3include: See Exhibit 14-3 Percentage of SalesPercentage of Sales Competitive ParityCompetitive Parity Objective-and-Task MethodObjective-and-Task Method Resource AllocationResource Allocation

2424

Creative Challenges of Creative Challenges of Global AdvertisingGlobal Advertising

Legal and Tax ConsiderationsLegal and Tax Considerations

Language LimitationsLanguage Limitations

Cultural DiversityCultural Diversity

Media LimitationsMedia Limitations

Production and Cost LimitationsProduction and Cost Limitations

2525

Media Usage in Various Media Usage in Various CountriesCountries**

Media Usage in Various Media Usage in Various CountriesCountries**

Nation TV Print Radio Cinema Transit

Argentina 148 155 43 16 47

Brazil 126 77 10 — 4

France 2,712 4,717 611 57 1,108

Germany 2,826 13,423 641 157 550

Japan 133,434 12,900 1,913 — 5,231

South Korea 1,083 1,755 188 — 708

Spain 2,386 4,569 873 62 384

Sweden 143 1,560 — 13 82

United Kingdom

4,621 9,071 287 84 530

United States 45,410 67,536 14,022 — 1,672

* 1995

2626

3. Creative Strategy3. Creative Strategy

The “Standardization” versus “Adaptation Debate”The “Standardization” versus “Adaptation Debate” Merits of Standardization:Merits of Standardization:

Scale EconomiesScale Economies Consistent ImageConsistent Image Global Consumer SegmentsGlobal Consumer Segments Creative TalentCreative Talent Cross-FertilizationCross-Fertilization

Barriers to Standardization:Barriers to Standardization: Cultural DifferencesCultural Differences

2727

3. Creative Strategy (contd.)3. Creative Strategy (contd.)

Advertising RegulationsAdvertising Regulations Market MaturityMarket Maturity ““Not-Invented-Here” (NIH) SyndromeNot-Invented-Here” (NIH) Syndrome

Approaches to Creating Advertising Copy:Approaches to Creating Advertising Copy: ““Laissez FaireLaissez Faire”” Export AdvertisingExport Advertising Global Prototype AdvertisingGlobal Prototype Advertising Prototype StandardizationPrototype Standardization

2828

3. Creative Strategy (contd.)3. Creative Strategy (contd.)

Regional ApproachRegional Approach Pattern StandardizationPattern Standardization

Modular ApproachModular Approach

2929

4. Global Media Decisions4. Global Media Decisions

Media InfrastructureMedia Infrastructure Media infrastructure differs from country to Media infrastructure differs from country to

countrycountry Media LimitationsMedia Limitations

The major limitation in many markets is The major limitation in many markets is media availability.media availability.

Recent Developments in the Global Media Recent Developments in the Global Media Landscape:Landscape:

Growing commercialization and deregulation Growing commercialization and deregulation of mass mediaof mass media

3131

4. Global Media Decisions (contd.)4. Global Media Decisions (contd.)

Shift from radio and print to TV Shift from radio and print to TV advertisingadvertising

Rise of global and regional mediaRise of global and regional media Growing spread of interactive marketingGrowing spread of interactive marketing Growing popularity of text messagingGrowing popularity of text messaging Improved monitoringImproved monitoring Improved TV-viewership measurementImproved TV-viewership measurement

3333

Global Marketing Global Marketing CommunicationsCommunications

In the U.K., all advertising is allowed In the U.K., all advertising is allowed if not specifically forbidden.if not specifically forbidden.

In Germany, everything is forbidden In Germany, everything is forbidden if not specifically allowed. if not specifically allowed.

In Italy, everything is allowed, even In Italy, everything is allowed, even if forbidden, and if forbidden, and

In Belgium, nobody knows what’s In Belgium, nobody knows what’s forbidden.forbidden.

Angela Mills

3434

5. Advertising Regulations5. Advertising Regulations

The major types of advertising regulations The major types of advertising regulations includeinclude:: Advertising of “Vice Products” and Advertising of “Vice Products” and

PharmaceuticalsPharmaceuticals Comparative AdvertisingComparative Advertising Content of Advertising MessagesContent of Advertising Messages Advertising Targeting ChildrenAdvertising Targeting Children Other Advertising RegulationsOther Advertising Regulations: Issues of : Issues of

local languages, tax issues, and local languages, tax issues, and advertising rates.advertising rates.

3535

5.Advertising Regulations (contd.)5.Advertising Regulations (contd.)

Strategies to deal with advertising Strategies to deal with advertising regulationsregulations:: Keep track of regulations and pending Keep track of regulations and pending

legislationlegislation Screen the campaign early onScreen the campaign early on Lobbying activitiesLobbying activities Challenge regulations in courtChallenge regulations in court Adapt marketing mix strategyAdapt marketing mix strategy

3636

Regulations Regarding Premiums, Gifts Regulations Regarding Premiums, Gifts and Competitions in Selected Countriesand Competitions in Selected CountriesRegulations Regarding Premiums, Gifts Regulations Regarding Premiums, Gifts and Competitions in Selected Countriesand Competitions in Selected Countries

Country Category

Norestrictions

orminor ones

Authorizedwith majorrestrictions

Generalban with

importantexceptions

Almosttotal

prohibition

Australia PremiumsGiftsCompetitions

xx

xAustria Premiums

GiftsCompetitions

xx

x

Canada PremiumsGiftsCompetitions

xx

xDenmark Premiums

GiftsCompetitions

xx

x

3737


Country Category

Norestrictions

orminor ones


Generalban with

importantexceptions

Almosttotal

prohibition

France PremiumsGiftsCompetitions

xxx

Germany PremiumsGiftsCompetitions

xx

x

Hong Kong PremiumsGiftsCompetitions

xxx

Japan PremiumsGiftsCompetitions

xxx

3838


Source: Jean J. Boddewyn, Premiums, Gifts, and Competitions, New York: (International Advertising Association, 1988. © 1988 International Advertising Association

13-9

Country Category

Norestrictions

orminor ones


Generalban with

importantexceptions

Almosttotal

prohibition

Korea PremiumsGiftsCompetitions

xxx

UnitedKingdom

PremiumsGiftsCompetitions

xx x

United States PremiumsGiftsCompetitions

xxx

Venezuela PremiumsGiftsCompetitions

xxx

Source: Jean J. Boddewyn, Premiums, Gifts, and Competitions, New York: (International Advertising Association, 1988. © 1988 International Advertising Association

3939

6. Choosing an Advertising Agency6. Choosing an Advertising Agency

In selecting an ad agency, the international In selecting an ad agency, the international marketer has several optionsmarketer has several options::

1. Work with the agency that handles the 1. Work with the agency that handles the advertising in the firm’s home market.advertising in the firm’s home market.

2. Pick a purely local agency in the foreign 2. Pick a purely local agency in the foreign market.market.

3. Choose the local office of a large international 3. Choose the local office of a large international agency.agency.

4. Select an international network of ad agencies 4. Select an international network of ad agencies that spans the globe.that spans the globe.

4040

6. Choosing an Advertising Agency 6. Choosing an Advertising Agency (contd.)(contd.)

When screening ad agencies, the following When screening ad agencies, the following set of criteria can be usedset of criteria can be used:: Market coverageMarket coverage Quality of coverageQuality of coverage Expertise with developing a central Expertise with developing a central

international campaigninternational campaign Creative reputationCreative reputation Scope and quality of support servicesScope and quality of support services

4141

6. Choosing an Advertising Agency 6. Choosing an Advertising Agency (contd.)(contd.)

Desirable image (“global” versus Desirable image (“global” versus “local”)“local”)

Size of the agencySize of the agency Conflicting accountsConflicting accounts

4242

7. Coordinating International 7. Coordinating International AdvertisingAdvertising

Global or pan-regional advertising Global or pan-regional advertising approaches require a great deal of approaches require a great deal of coordination. The following mechanisms coordination. The following mechanisms can help:can help: Monetary Incentives (cooperative Monetary Incentives (cooperative

advertising)advertising) Advertising Manuals (brand book)Advertising Manuals (brand book) Lead-Country ConceptLead-Country Concept Global or Pan-Regional Meetings: Global or Pan-Regional Meetings: Six Six

guidelinesguidelines to implement a global or pan- to implement a global or pan-regional advertising approach includeregional advertising approach include::

4343

7. Coordinating International 7. Coordinating International Advertising (contd.)Advertising (contd.)

(1).(1). Top management must be dedicated Top management must be dedicated to going global.to going global.

(2).(2). Use a third party (e.g., the ad Use a third party (e.g., the ad agency) to help sell key managers the agency) to help sell key managers the benefits of a global advertising approach.benefits of a global advertising approach.

(3).(3). A global brief based on cross-border A global brief based on cross-border consumer research can help persuade consumer research can help persuade managers to think in terms of global managers to think in terms of global consumers.consumers.

4444

7. Coordinating International 7. Coordinating International Advertising (contd.)Advertising (contd.)

(4).(4). Find product champions and give Find product champions and give them a charter for the success of the them a charter for the success of the global marketing program.global marketing program.

(5).(5). Convince local staff that they Convince local staff that they have an opportunity in developing a have an opportunity in developing a global campaign.global campaign.

(6).(6). Get local managers on the global Get local managers on the global marketing team -- have them do the marketing team -- have them do the job themselves.job themselves.

4545

8. Other Forms of Communication8. Other Forms of Communication

Sales PromotionsSales Promotions: Sales promotion refers to a : Sales promotion refers to a collection of short-term incentive tools that collection of short-term incentive tools that lead to quicker and/or larger sales of a lead to quicker and/or larger sales of a particular product by consumers or the trade.particular product by consumers or the trade. Rationales explaining the local character of Rationales explaining the local character of

promotions:promotions: Economic developmentEconomic development Market maturityMarket maturity Cultural perceptionsCultural perceptions Trade structure (pull vs. push promotions)Trade structure (pull vs. push promotions)

4646

8. Other Forms of Communication 8. Other Forms of Communication (contd.)(contd.)

Government regulationsGovernment regulations Direct Marketing Direct Marketing Event SponsorshipsEvent Sponsorships Trade ShowsTrade Shows: When attending an : When attending an

international trade show, the following international trade show, the following guidelines might prove useful:guidelines might prove useful: Decide on what trade shows to attend Decide on what trade shows to attend

at least a year in advance.at least a year in advance. Prepare translation of product Prepare translation of product

materials, price lists, selling aids.materials, price lists, selling aids.

4747


Bring plenty of literature. Bring someone who Bring plenty of literature. Bring someone who knows the language or have a translator.knows the language or have a translator.

Send out, ahead of time, direct-mail pieces to Send out, ahead of time, direct-mail pieces to potential attendees.potential attendees.

Find out the best possible space, for instance, Find out the best possible space, for instance, in terms of traffic.in terms of traffic.

Plan the best way to display your products and Plan the best way to display your products and to tell your story.to tell your story.

Do your homework on potential buyers from Do your homework on potential buyers from other countries.other countries.

4848


Assess the impact of trade show Assess the impact of trade show participation on the company’s bottom participation on the company’s bottom line. Performance benchmarks may line. Performance benchmarks may need to be adjusted when evaluating need to be adjusted when evaluating trade show effectiveness in different trade show effectiveness in different countries since attendees might behave countries since attendees might behave differently.differently.

4949

Market FacilitatorsMarket FacilitatorsThe Company The Competition

The Customer

Government Institutions Interest Groups Advertising Agencies

Securities Analysts Market Research Firms

Business Journalists PR Firms

Trade Journalists Distributors

suppliers of Complementary Products & Services Consultants Trade Associations

OEM’s VAR’s

5050

Brand Management WheelBrand Management Wheel

Adapted from P. Temporal “Advanced Brand Management: from Vision to Valuation”

Promotions

Word of Mouth

Scholarships and Endorsements

Advertising

Product Performance

and Development

HR, Employee Morale, Brand Culture

Service Standards and Behavior

Public Relations

Channel management, CRM, Internet

Packaging Physical Premises

Corporate Events

BRAND

STRATEGY

5151


Integrated Marketing Communications (IMC):Integrated Marketing Communications (IMC): IMC coordinates different communication IMC coordinates different communication

vehicles – mass advertising, sponsorships, vehicles – mass advertising, sponsorships, sales promotion, packaging, point-of-purchase sales promotion, packaging, point-of-purchase displays, so forth.displays, so forth.

Globally Integrated Marketing Communications Globally Integrated Marketing Communications (GIMC):(GIMC): GIMC is a system of active promotional GIMC is a system of active promotional

management that strategically coordinates management that strategically coordinates global communications in all of its componentglobal communications in all of its component

5252


parts. parts. Both Both horizontally (country-level)horizontally (country-level) and and

vertically (promotion tools) vertically (promotion tools) are used in are used in GIMC.GIMC.

5353

Relative PerformanceRelative Performance

Rela

tive Im

porta

nce

Rela

tive Im

porta

nce

WEAKWEAK AVERAGEAVERAGE STRONGSTRONG

HIG

HH

IGH

ThreatsThreats

(Remedy)(Remedy)Competitive Competitive (Enhance)(Enhance)

Core StrengthsCore Strengths

(Maintain)(Maintain)

MED

IUM

ED

IUMM WeaknessesWeaknesses

(Enhance)(Enhance)LowerLower

PriorityPriority

OpportunitiesOpportunities

(Increase (Increase salience)salience)

LOW

LOW LowerLower

PriorityPriorityLowLow

PriorityPriority

Potential Potential OpportunitiesOpportunities

(Increase (Increase salience)salience)

Strategic Matrix InterpretationStrategic Matrix Interpretation

Source: Asia Market Intelligence

Areas w/ no clear image position

Areas/Priorities for image correction

Reasons for current franchise – must be maintained

Increased salience of such existing strengths can significantly enhance positioning

5454

PERFORMANCEPERFORMANCE

IMPO

RTA

NC

EIM

PO

RTA

NC

E

WEAKWEAK AVERAGEAVERAGE STRONGSTRONG

HIG

HH

IGH

MED

IUM

MED

IUM

LO

WLO

W

AMI’s Pinpoint™ Analysis AMI’s Pinpoint™ Analysis Beverage Market ExampleBeverage Market Example

Source: Asia Market Intelligence

Attractive PackagingGrowing Brand Always Fresh

Buy BestHigh Quality

Good Tasting

Easy in Pubs

ModernPromoted in Bars

Good AdvertisingTrendy

Easy to drink International standards

Hear a lot about brandYounger StrongSpecial Occasion

Locally made Expensive

Good valueEasy shop

5555

Emotional Brand Relationship Emotional Brand Relationship ProcessProcess

Adapted from P. Temporal “Advanced Brand Management: from Vision to Valuation”

Togetherness/partnership

Awareness

Information

Respect

Friendship

Trust

Loyalty

5959

Marketing to the New Marketing to the New AsiaAsia

““Typical” Japanese:Typical” Japanese: What is the extent of staff understanding?What is the extent of staff understanding? Does it affect decision-making?Does it affect decision-making? Are the insights still valid?Are the insights still valid?

More sophisticated marketing research:More sophisticated marketing research: How to understand markets better?How to understand markets better? Does research account for:Does research account for:

Reticent focus groups?Reticent focus groups? Middle-of-the-road responses to surveys?Middle-of-the-road responses to surveys?

Should marketing research resources be increased Should marketing research resources be increased given:given:

Growing heterogeneity of the Japanese market?Growing heterogeneity of the Japanese market? Competition for segments?Competition for segments?

6060

Distribution of Consumer Advertising and Distribution of Consumer Advertising and Sales Promotion Expenditures in Asia (by Sales Promotion Expenditures in Asia (by

percentage)percentage)MediaMedia 19861986 19871987 19881988 19891989 19901990 19911991 19921992

Total Advertising and Total Advertising and PromotionPromotion

Advertising in the Four Advertising in the Four Mass MediaMass Media

NewspapersNewspapers

MagazinesMagazines

RadioRadio

TVTV

Sales Promotions Sales Promotions ExpendituresExpenditures

DMDM

InsertsInserts

OutdoorsOutdoors

TransportationTransportation

POPPOP

Telephone DirectoryTelephone Directory

Exhibitions, visuals, etc.Exhibitions, visuals, etc.

New Media Advertising New Media Advertising ExpendituresExpenditures

100.0100.0

66.066.0

25.125.1

6.56.5

4.54.5

29.929.9

33.933.9

3.93.9

6.26.2

6.56.5

4.44.4

3.23.2

2.12.1

7.67.6

0.10.1

100.0100.0

65.765.7

25.025.0

6.56.5

4.44.4

29.829.8

34.134.1

3.93.9

6.16.1

7.07.0

4.34.3

3.03.0

2.12.1

7.77.7

0.20.2

100.0100.0

66.366.3

25.525.5

6.76.7

4.34.3

29.829.8

33.533.5

3.83.8

5.85.8

7.07.0

4.34.3

2.72.7

2.12.1

7.87.8

0.20.2

100.0100.0

64.664.6

25.125.1

6.66.6

4.14.1

28.828.8

35.235.2

3.63.6

5.95.9

6.96.9

4.44.4

2.82.8

2.02.0

9.69.6

0.20.2

100.0100.0

64.264.2

24.424.4

6.76.7

4.24.2

28.928.9

35.635.6

3.53.5

5.95.9

6.96.9

4.54.5

2.72.7

2.22.2

9.99.9

0.20.2

100.0100.0

63.863.8

23.823.8

6.86.8

4.24.2

29.329.3

36.036.0

3.53.5

5.95.9

6.96.9

4.64.6

2.82.8

2.52.5

9.79.7

0.20.2

100.0100.0

63.663.6

22.322.3

6.76.7

4.34.3

30.330.3

36.236.2

4.14.1

5.95.9

6.96.9

4.94.9

2.72.7

2.92.9

8.88.8

0.20.2

6161

New Rules of New Rules of CommunicationsCommunications

Current advertising:Current advertising: What is the extent of Mood over Message?What is the extent of Mood over Message? Importance of cognitive messages – does Importance of cognitive messages – does

balance need to be shifted?balance need to be shifted? Advertising by a non-Japanese firm:Advertising by a non-Japanese firm:

How can Mood be utilized?How can Mood be utilized? Other distinctively Japanese features to Other distinctively Japanese features to

address?address? Who are best advertising partners?Who are best advertising partners?

Given changes in industryGiven changes in industry Given new marketing challengesGiven new marketing challenges

6262

Shifting Realities of Shifting Realities of Marketing StrategiesMarketing Strategies

Old ModelOld Model New ModelNew ModelRelationship Relationship with Customerswith Customers

Passive Passive ConsumerConsumer

Co-producerCo-producer

Customer Customer NeedsNeeds

ArticulatedArticulated UnarticulatedUnarticulated

SegmentationSegmentation Mass MarketMass Market Customized Customized segments of onesegments of one

Product and Product and Service Service OfferingsOfferings

Line extensions Line extensions and and modifications; modifications; R&D drives new R&D drives new productsproducts

Customer-driven:Customer-driven:Customization of Customization of products and servicesproducts and servicesMarketing interactions Marketing interactions drive new product drive new product developmentdevelopment

6363

Shifting Realities of Marketing Shifting Realities of Marketing StrategiesStrategies

Old ModelOld Model New ModelNew ModelPricingPricing Fixed prices and Fixed prices and

discountingdiscountingValue-based Value-based pricing – models pricing – models and emergence of and emergence of consumer-consumer-determined pricingdetermined pricing

CommunicationCommunication Advertising and Advertising and PRPR

Integrated, Integrated, interactive interactive customized customized marketing marketing communication, communication, education and education and entertainmententertainment

6464


Old ModelOld Model New ModelNew ModelDistributionDistribution Traditional Traditional

retailing and retailing and direct marketing direct marketing to segmentsto segments

Direct (electronic) Direct (electronic) distribution and distribution and rise of third-party rise of third-party logistics serviceslogistics services

Strategic IntentStrategic Intent Market Market ParticipationParticipation

Leadership and Leadership and innovation in target innovation in target segmentsegment

Supply chainSupply chain InventoryInventory Integrated global Integrated global supply chain supply chain including global including global delivery; just-in-delivery; just-in-timetime

6565


Old ModelOld Model New ModelNew ModelGeographic Geographic scopescope

Domestic and Domestic and internationalinternational

GlobalGlobal

Competitive Competitive advantageadvantage

Marketing powerMarketing power Marketing finesseMarketing finesse

1 tom gillpatrick, ph.d. juan young professor of marketing & executive director, filc master...

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