chapter 14 global promotion strategies. copyright © houghton mifflin company. all rights reserved....

Chapter 14

Global Promotion Strategies

Copyright © Houghton Mifflin Company. All rights reserved. Chapter 14 | Slide 2

International Marketing Dilemma

Promotion

Standardization

Promotion

Adaptation

versus


Promotion Standardization Advantages

• Economies of scope; production cost savings

• Able to spend more time, attention and $ on campaign itself

• Strong branding image, avoid confusion

– Travelers– Viewers of global media– Internet– International organizational buyers


PRESSURES FOR PROMOTION ADAPTATIONWritten and spoken language differences

Differences in symbolic meaningDifferences in humor

Product use and preference differencesLack of cross-cultural icons Value and norm differences

Collectivism versus individualismGovernment regulation


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 channel is short, there is

a lack of advertising media or difficulty using firm’s pull strategy in foreign markets


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


• 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 social/business events

International Selling (cont’d)


International Sales Negotiations

• Negotiation style– Japanese – least aggressive– French and Brazilians – most aggressive– Russia – zero-sum game

• Time orientation– Longer in China versus U.S. and Europe

• Attitude toward final contract– U.S., Germany, Scandinavia: “get it in writing” culture– China, Arab Countries: Relationship and personal trust

drive business practices; “loose” contracts


Recruitment & Compensation of Local Sales Force

• Recruitment– Scarcity of skilled personnel– Differences in prestige of sales positions in

different cultures

• Compensation– Salespeople from different cultures may respond

to motivation programs differently• Rewarding volume, consistency, straight salary, etc.


What Makes a Great Salesperson?

•LOW CONTEXT•Preparation•Great product•Appearance•Enthusiasm•Self-confidence•Great closer

•LOW CONTEXT•Preparation•Great product•Appearance•Enthusiasm•Self-confidence•Great closer

•HIGH CONTEXT•Preparation•Great product•The “person”•Cultural awareness•Relationship oriented

•HIGH CONTEXT•Preparation•Great product•The “person”•Cultural awareness•Relationship oriented


Global Account Team

• Global account team – Services a customer in every country in which the customer operates

– Response to centralized purchasing within global firms

– Most companies would rather do this, especially if they themselves are centrally operated


International Trade Fairs

• Ideal for exposing new customers and potential distributors to a company’s product range

• Very important for B2B sales in markets with underdeveloped media channels

• 600 trade shows in 70 countries each year– Cologne Trade Fair– Hanover Fair


Sales Promotion

• Stimulate immediate consumer purchasing and/or channel cooperation– Coupons, sweepstakes, gifts, reduced-

price labels, free goods, double-pack promotions, in-store displays, slotting allowances


Sales Promotion (cont’d)

• Country-to-country differences– Cultural norms

• Taiwanese consumers prefer coupons to sweepstakes; Malaysians and Thais prefer sweepstakes to coupons

– Government restrictions and regulations• Japan’s limitation on value of promotional gifts attached

to products is 10% of the product’s price


Sports Promotions and Sponsorships

• Sports events increasingly covered by global media– Olympics, World Cup

• Sign space– Must have logo or brand worth

exposing to global audience– Take into consideration popularity of

certain sports and the segments they attract


Olympics Versus the World Cup

• Soccer is favorite TV sport in 24 out of 34 countries surveyed by Ipsos-Reid – 250 million registered soccer players and 1 billion

spectators worldwide

• World Cup sponsors get good deal!– Pay $20 million - $50 million – Get rights to World Cup sponsorship marks,

behind-the-scenes access, 2 on-field ad boards in 20 stadiums

– Year-long run-up to event


Telemarketing

• Can be used to solicit sales and to offer enhanced customer service to current and potential consumers– Big in Latin America (Brazil)– Telephone numbers must be easy to obtain

• phone lists often don’t exist in every developing (or even developed!) countries

– Government restrictions and regulations• EU has its own “Do Not Call” list


Managing Word-of-Mouth

• Cultural differences in product recommendation references– Individualistic cultures versus collectivist

cultures

chapter 14 global promotion strategies. copyright © houghton mifflin company. all rights reserved....

Documents

sales promotions

local sellingcompany

local nationals

prestige of sales positions

product incentives

promotion adaptationwritten

arab countries

strategiespull strategyfocuses