Chapter 14 Global Marketing

Communications Decisions II: Sales Promotion, Personal Selling,

Special Forms of Marketing Communication

14-2

Introduction

In addition to advertising, publicity, and PR the promotion mix includes

SponsorshipsSales promotionDirect marketingPersonal selling InternetInfomercials

14-3

Sales Promotion

Sales promotion refers to any paid consumer or trade communication programme of limited duration that adds tangible value to a product or brand

Price versus non-price promotionsConsumer versus trade promotions

14-4

Sales Promotion

Provides a tangible incentive to buyersReduces the perceived risk associated with purchasing a productProvides accountability for communications activityProvides a method of collecting additional data for database

14-5

Sales Promotion: Global or Local

In countries with low levels of economic development, low incomes limit the range of promotional tools availableMarket maturity can also be different from country to countryLocal perceptions of a particular promotional tool or program can varyLocal regulations may rule out use of a particular promotion in certain countriesTrade structure in the retailing industry can affect the use of sales promotions

14-6

Sampling

SamplingProvides consumer with opportunity to try product at no costMay be distributed in stores, in the mail, through print media, at events, or door-to-door

Kikkoman soy sauce launched in the United States with a sampling programme in supermarkets; today the United States contributes 85% of profit from international operations

14-7

Couponing (US Speak for using Price Discount Coupons)

Printed certificates entitle the bearer to a price reduction or some other special consideration for purchasing a particular product

Couponing accounts for 70% of consumer promotion spending in the United StatesFree-standing inserts, in-pack, on-pack, cross couponsIn recent years the proliferation of coupon distribution programmes has produced an excess in the marketplace. This flood of coupon offers, commonly known as "coupon clutter," has resulted in falling redemption rates

14-8

Couponing

14-9

Couponing

14-10

Sales Promotion: Issues and Problems

FraudPepsi promotion with Apple

Regulations vary by countryCultural dispositions to coupons and other sales promotions

Malaysians see coupon usage as embarrassing• Is this True ?• Why ?• What about SG & TH ?

Islam frowns on gambling so sweepstakes may not work – Is this true in MY ??

14-11

Personal Selling

Person-to-person communication between a company representative and a prospective buyerFocus is to inform and persuade prospectShort-term goal: make a saleLong-term goal: build a relationship

14-12

Personal Selling HurdlesPolitical risks—unstable or corrupt governments change the rules for the sales teamRegulatory hurdles, Governments can set up quotas or tariffs that affect the sales forceCurrency fluctuations—increase and decrease in local currencies can make certain products unaffordableMarket unknowns—lack of knowledge of market conditions, the accepted way of doing business, or positioning of the product may derail the sales team’s efforts

14-13

Strategic/Consultative Selling

14-14

The Strategic/Consultative Selling Model

Personal selling philosophy—commitment to the marketing concept and a willingness to adopt the rôle of problem solver/partnerRelationship strategy—game plan for establishing and maintaining high-quality relationships with prospects/customersProduct strategy—plan that can assist the sales representative in selecting and positioning products to satisfy customer needs

14-15

Strategic/Consultative Selling

Customer strategy—plan that ensures that the sales professional will be responsive to customer needsPresentation strategy—consists of setting objectives for each sales call and establishing a presentation plan to meet those objectives

14-16

Strategic/Consultative Selling

14-17

The Presentation Plan

ApproachPresentationDemonstrationNegotiationCloseServicing the sale

14-18

Approach

Initial contact with the customer/prospectMust completely understand the decision-making process and the roles of each participant

14-19

Presentation

Prospect’s needs are assessed and matched to the company’s productsThe style and message of the presentation must be tailored to the audience

14-20

Demonstration

Salesperson has the opportunity to tailor the communication effort to the customerCan show how the product can meet the customer’s needs

14-21

Negotiation

Ensures that both the customer and the salesperson come away from the presentation winners

14-22

Close

Ask for the saleMust be culturally sensitive

14-23

Servicing the Sale

To ensure customer satisfaction

Implementation process must be outlinedCustomer service programme established

14-24

Sales Force Nationality

ExpatriatesHost-country nationalsThird-country nationalsOther options

14-25

Expatriates

AdvantagesSuperior product knowledgeDemonstrated commitment to service standardsTrain for promotionGreater HQ control

DisadvantagesHigher costHigher turnoverCost for language and cross-cultural training

14-26

Host Country Nationals

AdvantagesEconomicalSuperior market knowledgeLanguage skillsSuperior cultural knowledgeFast implementation

DisadvantagesNeed product trainingMay be held in low esteemLanguage skills may not be importantDifficult to ensure loyalty

14-27

Third Country Nationals eg TH selling US product in CN

AdvantagesCultural sensitivityLanguage skillsEconomicalAllows regional sales coverage

DisadvantagesMay face identification problemsMay be blocked for promotionsIncome gapsNeeds product and/or company trainingLoyalty not assured

14-28

Other Options

Sales agentsExclusive license arrangementsContract manufacturing or productionManagement-only agreementsJoint ventures

14-29

Special Forms of Marketing Communications

Direct MarketingDirect mailCataloguesInfomercials, teleshopping

Event sponsorshipConcerts, sporting eventsProduct placement in movies

Internet communications

14-30

Direct Marketing

Any communication with a consumer or business recipient that is designed to generate a response in the form of

An orderRequest for further informationA visit to a store or other place of business

14-31

Direct Marketing—Going GlobalLike politics, all marketing is local. Just because your direct mail campaign worked in London, do not assume it will work in Kuala Lumpur.Although there may be a European Union, but there is no such thing as a “European.” (Not True !!)Pick your target, focus on one country, and do your homework.Customers need to be able to return products locally or at least believe there are services available in their country.

14-32

14-33

One-to-One Marketing

Building from customer relationship management

Identify customers and accumulate detailed information about themDifferentiate customers and rank them in terms of their value to the companyInteract with customers and develop more cost efficient and effective forms of interactionCustomise the product/service offered to the customer

14-34

Catalogues

A magazine style publication that features photographs and extensive information about a company’s products

14-35

Infomercials and Teleshopping

An infomercial is a form of paid TV in which a particular product is demonstrated, explained, and offered for sale to viewers who call a toll-free number on the screenTeleshopping on channels like HSN and QVC is exclusively devoted to demonstration and selling

14-36

Interactive Television

Interactive TV allows viewers to interact with the programming content they are viewingIn the United Kingdom, more than half of pay-TV subscribers use ITVRemote controls have buttons to push to order products shown on screen

14-37

Expenditures for Outdoor Advertising as a Percenatage of Total Ad Spending

14-38

Sponsorships

A company pays a fee to be associated with an event, team, athletic association, or sports facilityCombines elements of PR and sales promotionDraws media attention

14-39

Product Placement

Arranging to have the company’s products and brand names appear in TV shows, movies, and other types of entertainmentMarketeers also lend or donate products to celebrities and other public figures

14-40

Ends