Copyright? 2001 by Harcourt,Inc.,All rights reserved,Requests for permissions to make copies of any part of the work should be mailed to
the following address,Permissions Department,Harcourt,Inc.,6277 Sea Harbor Drive,Orlando,Florida 32887-6777.
INTERNATIONAL MARKETING 6e
International Communications
Chapter 12
Trusting or Naive
Canadian Employees described their Filipino boss’s
low-trust approach to management as unbearable and
suspicious behavior,The Canadians went on saying
that,the Filipino boss was constantly looking over their
shoulders,checking their work,attitudes and
punctuality,As a result,the employees began slow
down work,however their boss understood them as
being lazy,
Discuss the causes for the misunderstanding of both
sides and relate the situation to one or two of the
theories you have been exposed to in your earlier
studies
Misperception,miscommunication and
misevaluation
Sender’s
Culture
Receiver's
CultureMessage
Noise
(+)
Noise
(-) Feed back
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-4
Sender
(Encodes
Message)
Message
Feedback
Message
Channel
Receiver
(Decodes
Message)
Noise
The Marketing Communication Process
Source,Terence A,Shimp,Advertising,Promotion,and
Supplemental Aspects of Integrated Marketing Communications
(Ft,Worth,TX,The Dryden Press,2000),118.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-5
Stages of the Negotiation Process:
The offer
assess each parties’ needs and commitment
Informal meetings
trust-building among deal makers
Strategy formulation
review and assess factors to be negotiated
Negotiations
form,informal,short or long
Implementation
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-6
International Negotiations
How to negotiate in other countries
Team assistance
Traditions and customs
Language capability
Determination of authority limits
Patience
Negotiation ethics
Silence
Persistence
Holistic view
The meaning of
agreements
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-7
Marketing Communications Strategy
Steps in
Formulating
Marketing
Communications
Strategy
S t e p 5
A s s i g n S p e c i f i c M a r k e t i n g C o m m u n i c a t i o n s T a s k s
S t e p 4
D e v e l o p a n d E v a l u a t e A l t e r n a t i v e S t r a t e g i e s
S t e p 3
S e t M a r k e t i n g C o m m u n i c a t i o n s O b j e c t i v e s
S t e p 2
A n a l y ze M a r k e t i n g C o m m u n i c a t i o n s R e s o u r c e s
S t e p 1
A s s e s s M a r k e t i n g C o m m u n i c a t i o n s O p p o r t u n i t i e s
Source,Framework adapted from Wayne DeLozier,The Marketing
Communication Process (New York,McGraw-Hill,1976),272.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-8
The Promotional Mix
Advertising
any form of nonpersonal communication
Personal Selling
the use of person-to-person communication
Publicity
nonpaid,commercially significant news
Sales Promotion
Direct inducements of
extra value or incentives
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-9
The Promotional Mix
Push strategies
focus on personal selling,considered essential in
international marketing of industrial goods.
Pull strategies
depend on mass communications (advertising of
consumer-oriented goods) to reach target
audiences over long distribution channels.
Integrated marketing communications
Coordinated use of a broad range of promotional
tools to reach a target market.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-10
Communications Tools
The choice of media is governed by the
appropriateness media’s target audience and
its efficiency in reaching that audience
Business and trade journals
Broad-based media
– Business Week,The Wall Street Journal
Horizontal media
– focus on a particular marketing task
(Purchasing World)
Vertical media
– focus on a particular market or industry (Trucker World)
Directories and data services
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-11
Communications Tools
Direct marketing
is intended to elicit immediate and measurable
responses to direct-response advertising,
telemarketing,and direct selling.
Direct mail depends on acquiring mailing lists that
target the intended audience.
Effective direct mailing require extensive planning
of materials,format,and mode of mailing.
The Internet
A presence on the Internet is a necessity that can
expand marketing communications world-wide
with low costs.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-12
Trade Fairs and Missions
Types of international trade events
Trade missions
Seminar missions
Solo exhibitions
Video / catalog exhibitions
Magnitude,Over 16,0000
trade shows generate $50
billion in business annually.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-13
Trade Show Participation
Reasons for participation
Customer can examine the product
Goodwill and contact cultivation
Locating a trade intermediary
Opportunity to meet government officials and
decision makers
Opportunity for market research and collecting
competitive intelligence
Reasons for not participating
High cost
Identifying the,right” trade shows to participate in
Coordination
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-14
Personal Selling
The most effective promotional tool
Costs per contact are high
Yields immediate customer feedback and
sales results
Keys to personal selling
Salesperson’ has the ability
to adapt to the customer and
the selling situation.
Salesperson must have a
thorough knowledge of the
product or service.
Effective way of Communication when
they are not good at our language,(cont.)
DESIGN A TIME FRAME
allow frequent breaks,deliver the
information piece by piece,allow more
time for info process
MOTIVATE YOUR PARTNERS
encourage the non-native to speak,don't
make any judgment by their participation
levels,(consider the environment)
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-16
HIERARCHICAL PLACE OF NEGOTIATORS
Negotiation in different cultures has different balance of
power,Knowing the power of the negotiators helps
to determine how the negotiation process is going to
run,There are at least three buyer-seller power
relationship models:
A,The seller in Japan takes care of the buyer
B,In the US both (buyer and seller ) are equal
C,In less developing countries (producers market),
the buyer takes care of the seller,
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-17
Where,when and how to effectively negotiate?
Accessibility of information might benefit
negotiators as they have to consult with
people at the headquarter,Generally it is
advised to negotiate in places where there is
less,external noise” (ideally,no telephone
connections and e-mail services can
accelerate the process of negotiations).
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-18
PHYSICAL ARRANGEMENT
COMPETITIVE EFFECT (Facing each other)
COOPERATIVE EFFECT (Round table sitting)
FACING THE WALL (Facing the problem not
the people)
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-19
COMPETITIVE NEGOTIATION EFFECT
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-20
COOPERATIVE EFFECT
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-21
FACING THE WALL (PROBLEM
ORENTED SETTINGS)
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-22
When to Negotiate? (tactical negotiation)
Time Factors,
Americans tend to look for an instant solution
Others need more time
More concessions are made when the deadline
approaches (checking the deadline is an important
strategy)
Wait until the last hours of a negotiator’s departure
Check the negotiators’ flight time
Authority Factors:
Make sure that the person you are negotiating with
has the authority to make decisions
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-23
NUMBER OF NEGOTIATORS
The more the number of participants the better
the understanding (team responsibility)
Democratic systems encourage more
participation,specially in the beginning of the
concession building process
In traditional and totalitarian systems few
participation is practiced due to anticipated corrupt
practices related to bribery,connections and
nepotism
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-24
SYNERGISTIC APPROACH TO NEGOTIATION
Separating the people from the problem
Focusing on interest,not on position
Emphasis on the objectives inventing options
for mutual agreement
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-25
The Traits of a Good Negotiator
A skilled negotiator uses,
time properly
uses wider range of options
spends more on common grounds than on
differences.
sets negotiation ranges
e.g,On setting price of x product,$100 per
unit may be preferred $98-105
non-linear solutions,
can take any issue independently without
being bias.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-26
Tips For Effective Negotiation
a) Read the mind of the negotiator during the
negotiation process:
– Verbal communication tone provides enough
signals on the intent of the negotiators.
– Facial expression
– Tone of the voice
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-27
Tips For Effective Negotiation (cont.)
b) Start with a high expectation/profile
Demonstrate high expectation
Start from a high offer/request
Pose many questions
Refrain from many commitments
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-28
Tips For Effective Negotiation (cont)
c) Develop the skill of interpreting verbal
expressions:
Promise,reward,commitment,
recommendation,
Threat,warning,question,punishment,
Normative appeal,self-disclosure
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-29
Tips For Effective Negotiation
d) Learn the non-verbal tricks:
Silence in the Asian culture indicates that the
negotiator is thinking about it (the offer)
Conversation overlaps ( a tradition not a
disrespect to the listener),More practiced in
southern European countries,Middle-East and
Northern African countries.
Facial gazing
– Eye contact is trust
(northern American interpretation)
– Not appreciated in traditional cultures
EFFECTIVE WAY OF COMMUNICATING
IN MANAGEMENT
1,know that they don't know
2,concentrate on understanding what is being said and
spend less time on interpreting and evaluating
3,if you have to interpret,use their,language",
4,if you think you were able to explain the situation and
found a solution,consider it as a guess.
Effective way of Communication when they
are not good at our language.
IMPROVE YOUR VERBAL COMMUNICATION
– clear,simple and slow communication style
USE NON-VERBAL EXPRESSIONS
– visual explanation,gestures,demonstration,pauses and
summaries
CHECK IF THERE IS MUTUALUNDERSTANDING
– facial expression,double checking by asking others
the following address,Permissions Department,Harcourt,Inc.,6277 Sea Harbor Drive,Orlando,Florida 32887-6777.
INTERNATIONAL MARKETING 6e
International Communications
Chapter 12
Trusting or Naive
Canadian Employees described their Filipino boss’s
low-trust approach to management as unbearable and
suspicious behavior,The Canadians went on saying
that,the Filipino boss was constantly looking over their
shoulders,checking their work,attitudes and
punctuality,As a result,the employees began slow
down work,however their boss understood them as
being lazy,
Discuss the causes for the misunderstanding of both
sides and relate the situation to one or two of the
theories you have been exposed to in your earlier
studies
Misperception,miscommunication and
misevaluation
Sender’s
Culture
Receiver's
CultureMessage
Noise
(+)
Noise
(-) Feed back
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-4
Sender
(Encodes
Message)
Message
Feedback
Message
Channel
Receiver
(Decodes
Message)
Noise
The Marketing Communication Process
Source,Terence A,Shimp,Advertising,Promotion,and
Supplemental Aspects of Integrated Marketing Communications
(Ft,Worth,TX,The Dryden Press,2000),118.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-5
Stages of the Negotiation Process:
The offer
assess each parties’ needs and commitment
Informal meetings
trust-building among deal makers
Strategy formulation
review and assess factors to be negotiated
Negotiations
form,informal,short or long
Implementation
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-6
International Negotiations
How to negotiate in other countries
Team assistance
Traditions and customs
Language capability
Determination of authority limits
Patience
Negotiation ethics
Silence
Persistence
Holistic view
The meaning of
agreements
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-7
Marketing Communications Strategy
Steps in
Formulating
Marketing
Communications
Strategy
S t e p 5
A s s i g n S p e c i f i c M a r k e t i n g C o m m u n i c a t i o n s T a s k s
S t e p 4
D e v e l o p a n d E v a l u a t e A l t e r n a t i v e S t r a t e g i e s
S t e p 3
S e t M a r k e t i n g C o m m u n i c a t i o n s O b j e c t i v e s
S t e p 2
A n a l y ze M a r k e t i n g C o m m u n i c a t i o n s R e s o u r c e s
S t e p 1
A s s e s s M a r k e t i n g C o m m u n i c a t i o n s O p p o r t u n i t i e s
Source,Framework adapted from Wayne DeLozier,The Marketing
Communication Process (New York,McGraw-Hill,1976),272.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-8
The Promotional Mix
Advertising
any form of nonpersonal communication
Personal Selling
the use of person-to-person communication
Publicity
nonpaid,commercially significant news
Sales Promotion
Direct inducements of
extra value or incentives
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-9
The Promotional Mix
Push strategies
focus on personal selling,considered essential in
international marketing of industrial goods.
Pull strategies
depend on mass communications (advertising of
consumer-oriented goods) to reach target
audiences over long distribution channels.
Integrated marketing communications
Coordinated use of a broad range of promotional
tools to reach a target market.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-10
Communications Tools
The choice of media is governed by the
appropriateness media’s target audience and
its efficiency in reaching that audience
Business and trade journals
Broad-based media
– Business Week,The Wall Street Journal
Horizontal media
– focus on a particular marketing task
(Purchasing World)
Vertical media
– focus on a particular market or industry (Trucker World)
Directories and data services
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-11
Communications Tools
Direct marketing
is intended to elicit immediate and measurable
responses to direct-response advertising,
telemarketing,and direct selling.
Direct mail depends on acquiring mailing lists that
target the intended audience.
Effective direct mailing require extensive planning
of materials,format,and mode of mailing.
The Internet
A presence on the Internet is a necessity that can
expand marketing communications world-wide
with low costs.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-12
Trade Fairs and Missions
Types of international trade events
Trade missions
Seminar missions
Solo exhibitions
Video / catalog exhibitions
Magnitude,Over 16,0000
trade shows generate $50
billion in business annually.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-13
Trade Show Participation
Reasons for participation
Customer can examine the product
Goodwill and contact cultivation
Locating a trade intermediary
Opportunity to meet government officials and
decision makers
Opportunity for market research and collecting
competitive intelligence
Reasons for not participating
High cost
Identifying the,right” trade shows to participate in
Coordination
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-14
Personal Selling
The most effective promotional tool
Costs per contact are high
Yields immediate customer feedback and
sales results
Keys to personal selling
Salesperson’ has the ability
to adapt to the customer and
the selling situation.
Salesperson must have a
thorough knowledge of the
product or service.
Effective way of Communication when
they are not good at our language,(cont.)
DESIGN A TIME FRAME
allow frequent breaks,deliver the
information piece by piece,allow more
time for info process
MOTIVATE YOUR PARTNERS
encourage the non-native to speak,don't
make any judgment by their participation
levels,(consider the environment)
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-16
HIERARCHICAL PLACE OF NEGOTIATORS
Negotiation in different cultures has different balance of
power,Knowing the power of the negotiators helps
to determine how the negotiation process is going to
run,There are at least three buyer-seller power
relationship models:
A,The seller in Japan takes care of the buyer
B,In the US both (buyer and seller ) are equal
C,In less developing countries (producers market),
the buyer takes care of the seller,
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-17
Where,when and how to effectively negotiate?
Accessibility of information might benefit
negotiators as they have to consult with
people at the headquarter,Generally it is
advised to negotiate in places where there is
less,external noise” (ideally,no telephone
connections and e-mail services can
accelerate the process of negotiations).
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-18
PHYSICAL ARRANGEMENT
COMPETITIVE EFFECT (Facing each other)
COOPERATIVE EFFECT (Round table sitting)
FACING THE WALL (Facing the problem not
the people)
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-19
COMPETITIVE NEGOTIATION EFFECT
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-20
COOPERATIVE EFFECT
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-21
FACING THE WALL (PROBLEM
ORENTED SETTINGS)
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-22
When to Negotiate? (tactical negotiation)
Time Factors,
Americans tend to look for an instant solution
Others need more time
More concessions are made when the deadline
approaches (checking the deadline is an important
strategy)
Wait until the last hours of a negotiator’s departure
Check the negotiators’ flight time
Authority Factors:
Make sure that the person you are negotiating with
has the authority to make decisions
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-23
NUMBER OF NEGOTIATORS
The more the number of participants the better
the understanding (team responsibility)
Democratic systems encourage more
participation,specially in the beginning of the
concession building process
In traditional and totalitarian systems few
participation is practiced due to anticipated corrupt
practices related to bribery,connections and
nepotism
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-24
SYNERGISTIC APPROACH TO NEGOTIATION
Separating the people from the problem
Focusing on interest,not on position
Emphasis on the objectives inventing options
for mutual agreement
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-25
The Traits of a Good Negotiator
A skilled negotiator uses,
time properly
uses wider range of options
spends more on common grounds than on
differences.
sets negotiation ranges
e.g,On setting price of x product,$100 per
unit may be preferred $98-105
non-linear solutions,
can take any issue independently without
being bias.
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-26
Tips For Effective Negotiation
a) Read the mind of the negotiator during the
negotiation process:
– Verbal communication tone provides enough
signals on the intent of the negotiators.
– Facial expression
– Tone of the voice
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-27
Tips For Effective Negotiation (cont.)
b) Start with a high expectation/profile
Demonstrate high expectation
Start from a high offer/request
Pose many questions
Refrain from many commitments
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-28
Tips For Effective Negotiation (cont)
c) Develop the skill of interpreting verbal
expressions:
Promise,reward,commitment,
recommendation,
Threat,warning,question,punishment,
Normative appeal,self-disclosure
Copyright? 2001 by Harcourt,Inc,All rights reserved,12-29
Tips For Effective Negotiation
d) Learn the non-verbal tricks:
Silence in the Asian culture indicates that the
negotiator is thinking about it (the offer)
Conversation overlaps ( a tradition not a
disrespect to the listener),More practiced in
southern European countries,Middle-East and
Northern African countries.
Facial gazing
– Eye contact is trust
(northern American interpretation)
– Not appreciated in traditional cultures
EFFECTIVE WAY OF COMMUNICATING
IN MANAGEMENT
1,know that they don't know
2,concentrate on understanding what is being said and
spend less time on interpreting and evaluating
3,if you have to interpret,use their,language",
4,if you think you were able to explain the situation and
found a solution,consider it as a guess.
Effective way of Communication when they
are not good at our language.
IMPROVE YOUR VERBAL COMMUNICATION
– clear,simple and slow communication style
USE NON-VERBAL EXPRESSIONS
– visual explanation,gestures,demonstration,pauses and
summaries
CHECK IF THERE IS MUTUALUNDERSTANDING
– facial expression,double checking by asking others
