14 global promotion strategies. learning objectives list the major factors that determine a firm’s...
TRANSCRIPT
Learning Objectives
• List the major factors that determine a firm’s ability to use a push or a pull promotion strategy in different national markets.
• Contrast the benefits to the international marketer of using an international sales force with those of using local sales forces.
• Describe the impact that different purchasing behaviors, buying criteria, languages, and negotiation styles can have on international selling.
• Explain the importance of global account management.
• Describe how global marketers can successfully utilize international trade fairs and consortia as well as manage the international bidding process.
• Cite examples of how sales promotions vary across cultures, and suggest reasons for these differences.
• Note recent international trends in sales promotions, sports sponsorships, telemarketing, product placement, and managing word-of-mouth.
• Give examples of international public relations disasters and suggest ways by which global marketers can promote the goodwill of their firms.
Chapter Outline
• Global promotion strategies
• Personal selling
• Global account management
• Selling to businesses and governments
• Other forms of promotion
• Public relations
Push versus Pull Strategies
• Pull strategy– Focuses on the end-user or the buyer– Dependence on sales promotions and advertising– Advisable when product is widely used by consumers,
channel is long, product is not complex, and when self-service is predominant shopping behavior
• Push strategy– Focuses on the distributors of a product – Incentives offered to wholesalers or retailers to carry
and promote a product– May resort to push when there is a lack of advertising
media or difficulty transferring firm’s pull strategy in foreign markets
International Selling (cont.)
• Buying criteria– How products/vendors are selected may vary
market to market
• Language– Importance of knowing the local language
• Business etiquette– How and when appointments and introductions are
made, if gifts are presented, attending sales banquets and other social/business occasions
Personal Selling
• International selling
– Company sales force travels across countries and meets directly with clients abroad
• Local selling– Company
organizes and staffs a local sales force made up of local nationals to do selling in that country
When a customer is met in person by a representative of the marketing company
Global Account Team
• Global account team – Services a customer in every country in which the customer operates
• Siemen’s teams for Volkswagen & Ford
– Response to centralized purchasing within global firms
– Information technology makes it possible– Price pressures
Bidding Process
1. Search phase – Purchaser utilizes media and business contacts to search for vendors
2. Prequalifying phase – Purchaser requests documentation from potential bidders
3. Formal bids – Bidders provide written statement of how they will solve purchaser’s problem and their price
4. Selection – Purchaser makes choice– Performance bond – A guarantee that the company
will pay certain specified damages if job not completed in accordance with specifications
Consortium Selling
• Consortium – Group of firms that share a certain contract or project on a pre-agreed basis but act as one company toward the customer– Share the risk– Enhance competitiveness of turnkey
projects
Sales Promotion
• Add value to products in order to stimulate consumer purchasing and/or channel cooperation– Coupons, sweepstakes, gifts, reduced-price
labels, free goods, double-pack promotions, in-store displays, slotting allowance
Telemarketing
• Can be used to solicit sales and to offer enhanced customer service to current and potential consumers
Managing Word-of-Mouth
• Cultural differences in product recommendation references– Individualistic cultures versus collectivist
cultures
• Buzz marketing – Marketing activities undertaken to stimulate consumer discussion of the product– Good buzz and bad buzz