Global Promotion

Chapter 15

Global Marketing

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Sales Promotion

• Sales promotion refers to any paid consumer or trade communication program of limited duration that adds tangible value to a product or brand– Price vs. non-price promotions– Consumer vs. trade promotions

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Sales Promotions

• Provide a tangible incentive to buyers

• Reduce the perceived risk associated with purchasing a product

• Provide accountability for communications activity

• Provide method of collecting additional data for database

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Factors Affecting Headquarters’ Involvement in Sales Promotion Efforts

• Cost

• Complexity

• Global Branding

• Transnational Trade

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Examples of Local Sales Promotions by Global Marketers

• Seagram Spirits and Wine Group/global promotion

– Online charity auction in Fall 2001 to celebrate 200th anniversary of Chivas Regal scotch

• Toyota Motor Manufacturing

– USA-focused promotion

• Sweepstakes offering all-expense paid trip for two to Kentucky Derby

– Japan-based promotion

• Half-price lottery will give 100 winners a cash incentive on purchase of a car

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Common Forms of Sales Promotions

• Sampling– Provides consumer with opportunity to try

product at no cost– May be distributed in stores, in the mail, through

print media, at events, or door-to-door

• Couponing– Printed certificates entitle the bearer to a price

reduction or some other special consideration for purchasing a particular product

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Personal Selling

• Person-to-person communication between a company representative and potential buyers

• Focus is to inform and persuade prospect

• Short-term goal: make a sale

• Long-term goal: build relationship

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Global Considerations Affecting Sales Force Use

• Political risks

• Regulatory hurdles

• Currency fluctuations

• Market unknowns

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Different Sales Types

• Expatriates

• Host country

• Third country

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Special Forms of Marketing Communications

• Direct Marketing– Direct mail– Catalogs– Infomercials, Teleshopping

• Event Sponsorship– Concerts, sporting events– Product placement in movies

• Internet Communications

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Categories of Web Sites

Web Site Content

AudienceFocus

Domestic

Global

Information/ service Transactions

Apple ComputerSaturn

FedexBritish Airways

Music BoulevardPC Flowers

Amazon.comDell