Global Marketing 14

7/29/2019 Global Marketing 14

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Global MarketinCommunications

Sales Promotion,Personal Selling,

of MarketingCommunication

(Global Edition)

1C apter 14

In addition to advertising, PR,

and publicity, the promotion

Sales promotion

Personal sellin

Direct mail

Catalogs

Infomercials, teleshopping

Support media (outdoor ad) Sponsorship, events &

experiences

2011 Pearson Education, Inc.

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ro uc p acemen2010ShanghaiWorldExpoPark

3

Sales promotion refers to any paid consumer ortrade communication ro ram of limitedduration that adds tangible value to a product orbrand

Price vs. non-price promotions

. .promotions


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Provide a tangible incentive to buyers

with purchasing a product

Provide accountability forcommunications activity

Provide method of collecting


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attract homeowners

Sales Promotion:Global or Local?

In countries with low levels of economic develop-

ment, low incomes limit the range of promotionaltools available

Market maturity may also differ from country tocountry

Local perceptions of a particular promotional toolor program can vary

Local regulations may rule out use of a particularpromotion in certain countries

Trade structure in the retailing industry can


14-6affect the use of sales promotions

Tools

ObjectivesSam les Advertising

CouponsPatronageRewards

PatronageRewards

SpecialtiesPatronageRewards

Entice Consumers toTry a New Product

Entice Consumers toTry a New Product

Price Packs

Cash Refunds

Contests

Lure Customers Awayfrom Competitors Products

Lure Customers Awayfrom Competitors Products

Get Consumers to Load U

Get Consumers to Load U

Premiums

Games

Sweepsta eson a Mature Product

on a Mature Product

Hold & Reward LoyalCustomers

Hold & Reward LoyalCustomers

Point-of-PurchaseDisplays

Consumer RelationshipBuilding

Consumer RelationshipBuilding


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Sampling

opportunity to try product at nocost

May be distributed in stores, inthe mail, through print media, atevents, or door-to-door Wine tasting in South Africa

Kikkoman soy sauce launched a sampling program insupermarkets in the US; today the US contributes 85% of


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Couponing Printe certi icates entit ethe bearer to a price

special consideration forpurchasing a particular

Couponing accounts for 70% of consumer promotion

pro uc

spen ing in t e US

Free-standing inserts, in-pack, on-pack, cross coupons


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Hot online trend roupon s n us ry ea er

Deals are made with local retailers with

Grown from 1 country to 35 mainly throughacquisition

40 million users in 300 global markets by 2010

Over 50% of users are in Europe, 33% in U.S. Founders rejected Googles $6 billion takeover

offer


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Fraud

Regulations vary by country

sales promotions

a ays ans see coupon usage as em arrass ng

Islam frowns on gambling, so sweepstakes may

no wor


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Tools

ec ves

Allowances

Price-Offs

PatronagePatronage

Premiums

Dis la sPersuade Retailers or

Persuade Retailers or

Buy-BackGuarantees

Rewar sRewar s

Discounts

o esaers o arry a ran

o esaers o arry a ran

Give a Brand Shelf Space

Give a Brand Shelf Space

S ecialt

Free GoodsPush MoneyPromote a Brand in

Advertising

Promote a Brand inAdvertising

AdvertisingItems

ContestsPus a Bran to Consumers

Pus a Bran to Consumers


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Business & Sales ForcePromotions

Generate Business LeadsGenerate Business Leads

Tools

Stimulate PurchasesStimulate Purchases

ConventionsConventions

Reward CustomersReward Customers

Sales ContestsSales ContestsMotivate Sa espeop eMotivate Sa espeop e


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.

GeographicallyGeographicallyConsumer

Advertising

Personal Selling

dispersedconcentrated

Product

InexpensiveSimple to understand

ExpensiveTechnically complex

an ar zeNo special handling

requirements

us om ma eSpecial handling

requirementsTransactions seldom

involve trade-insTransactions frequently

involve trade-ins


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Relatively longRelatively shortChannels

Relatively lowRelatively highPrice

Person-to- erson communicationbetween a company representative and

Focus is to inform and persuadeprospect

-

Long-term goal: build a relationship


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Political Risks unstable or corruptgovernments change the rules for the sales

eam Regulatory Hurdles governments can set up

Currency Fluctuations increase / decrease

unaffordable Market Unknowns lack of knowled e of

market conditions, the accepted way of doingbusiness, or positioning of the product may


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erai t e sa es team s e orts


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eograp cro uc

ComplexCustomer


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conditions change

Fixed + Variable + Expenses + Benefits

-do non-sales work

,motivating, control costs butemphasis is on

,

Combination plan is best


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Strategic/ConsultativeSelling Model

Evolved in response to:Increased competition

More complex productsMore emphasis on

Long-term relationships


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Personal Selling Philosophy commitment to

adopt the role of problem solver/partner

establishing and maintaining high-quality

Product Strategy plan that can assist the

positioning products to satisfy customerneeds


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Customer Strategy plan that ensuresthat the sales professional will bemaximall res onsive to customerneeds

setting objectives for each sales call andestablishing a presentation plan to meetthose objectives


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Approach

Presentation

emons ra on

Ne otiation

Close

erv c ng t e sa e


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Expatriates -

Third-country nationals

Other options


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Advantages Disadvantages uper or pro ucknowledge

g er cos

Higher turnover

commitment toservice standards

ost or anguage ancross-cultural training

Train for promotion


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Advantages Disadvantages Economical

Superior market

Needs producttraining

now e ge

Language skills

ay e e n owesteem

Superior cu tura

knowledge

anguage s s maynot be important

as mp emen a on loyalty


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Advantages

Cultural sensitivity

Disadvantages

May face identification

Language skills Economical

problems May be blocked for

Allows regional salescoverage

promo ons

Income gaps

ee s pro uct an orcompany training

oya y no assure


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Exclusive license arrangements

Contract manufacturing or production

-

Joint ventures


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Special Forms of MarketingCommunications

Direct Marketing Direct mail

Catalo s

Infomercials, teleshopping

Concerts, sporting events ro uc p acemen n mov es

Internet Communication


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An communication with a consumer orbusiness recipient that is designed to

An order

Request for further info

A visit to a store or otherplace of business


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Direct Marketing:Going Global

Growth of direct marketing:

Market demassification

Effort of traditional shopping Continuous access

Next-day delivery

Specialty items

ncrease n compu er power

Public issues:

Unfairness


14-31 Invasion of privacy

For Customers For Companies

, -Free

Saves Time

a ng s s or mos nyMarket

Customized Offers

Larger MerchandiseSelection

Ongoing Relationships withCustomers

Comparison Shoppingimed for Higher

Readership & Response

Order Products for Alternative Media/Messageemse ves or Ot ers es ng

Privacy


14-32Measurable Response


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.


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- -

Building from Customer Relationship

anagemen Identify customers and accumulate detailed

Differentiate customers and rank them in terms oftheir value to the com an

Interact with customers and develop more costefficient and effective forms of interaction

Customize the product/service offered to thecustomer


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Catalog: magazinestyle

publicationthatfeatures

photographs,

illustrations,

and

extensiveinformationabouta

U.S.1/3ofworldmarket,17billion

mailedin2008

EU: Eliminationofbarriershasled

toaboom

Hong

Kong

and

Singapore

have

efficientpostalsystemsandhighly


cards


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Infomercials andTeleshopping

An infomercial is a form of aid TV inwhich a particular product is

, ,for sale to viewers who call a toll-free

Teleshopping on channels like HSNand QVC is exclusively devoted todemonstration and sellin


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programming content they are viewing

In the UK, more than half of pay- Vsubscribers use ITV

Remote controls have buttons to pusho or er pro uc s s own on screen


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Challenges of OnlineMarketers

Limited consumer exposure & buying

Skewed user demographics &

Chaos & clutter

Security

Consumer backlash


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Su ort Media

Outdoor Ads


40


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Expenditures for OutdoorAdvertising (% of Total)


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with an event, team, athletic association,

Combines elements of public relationsand sales promotion


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Sponsorship Events &Experiences

Why sponsor events? To identify with a particular target market or life style

o ncrease ran awareness To create or reinforce consumer perceptions of key

To enhance corporate image o create ex eriences and evoke feelin s To express commitment to community To entertain key clients or reward employees

o perm t merc an s ng or promot ona opportun t es


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Expenditures are rising

products and brand names appear in TVs ows, mov es, an o er ypes oentertainment

Marketers also lend or donate products


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Documents

Global Marketing 14