Chapter 14
Global Marketing Decisions:
Sales Promotion, Personal
Sales Promotion
Sales promotion refers to any paid
consumer or trade communication program
of limited duration usually aimed at
stimulating sales / trials
–
Price (rebates, discounts, coupons) vs.
non-price promotions (sampling, premiums,
sweepstakes, contests, etc.)
Sales Promotion
Provide a tangible incentive to buyers
(lower prices, etc.)
Reduce the perceived risk associated with
purchasing a product (sampling)
Provide accountability for communications
activity (results can be tracked)
Sales Promotion: Global or Local
In countries with low levels of economic
development, low incomes limit the range of
promotional tools available
– Free samples, demonstrations
Market maturity can also be different from
country to country
– Coupons and sampling in growing markets
Sales Promotion: Global or Local
Local perceptions of a particular promotional tool
or program can vary
– Coupon usage not popular in India
Local regulations may rule out use of a particular
promotion in certain countries
Trade structure in the retailing industry can affect
the use of sales promotions
– Consolidated retail structures require more trade promotions (USA, Europe)
Sampling
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
–
Point-of-
use sampling (Starbucks’ chill patrols;
Mylanta introduction in India)
Couponing
Couponing
–
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 US
Couponing
Stimulate trial by non-users
Operant conditioning of users (Kroger’s 20
cents a gallon price off on gas)
Not widely used in Asia since using a
Sales Promotion: Issues and
Problems
Consumer fraud
– Pepsi promotion with Apple
Regulations vary by country
– Europe regulates promotions heavily
Cultural dispositions to coupons and other sales
promotions
– Malaysia, India see coupon usage as embarrassing – Islam frowns on gambling so sweepstakes may not
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
Personal Selling
Useful when countries regulate media
heavily
Japan
–
comparative advertising is difficult
hence product comparisons can be made on
a face to face basis
Low wage countries
–
cheaper to build a
sales force
Sales Force Nationality
Expatriates
Expatriates
Advantages
– Superior product knowledge
– Demonstrated
commitment to service standards
– Train for promotion – Greater HQ control
Disadvantages
– Higher cost
– Higher turnover
Host Country
Advantages
– Economical
– Superior market knowledge
– Language skills – Superior cultural
knowledge
– Implementation quicker
Disadvantages
– Needs product training – May be held in low
esteem
– Language skills may not be important
Third Country
Advantages
– Cultural sensitivity – Language skills – Economical
– Allows regional sales coverage
Disadvantages
– May face identity problems
– May be blocked for promotions
– Needs product and/or company training
Special Forms of Marketing
Communications
Direct Marketing
–
Direct mail
–
Catalogs
–
Infomercials, Teleshopping
Event Sponsorship
–
Concerts, sporting events
Direct Marketing
Any communication with a consumer or
business recipient that is designed to
generate a response in the form of:
–
An order
–
Request for further information
One-to-One Marketing
Building from Customer Relationship
Management
– Identify customers and accumulate detailed information about them
– Differentiate customers and rank them in terms of their value to the company
– Interact with customers and develop more cost efficient and effective forms of interaction
Catalogs
A magazine style
publication that
features photographs
and extensive
information about a
Product Placements
Movies, TV programs, books, etc.
Low attributions hence low skepticism Circumvent zipping and zapping
Realistic slice-of-life placement Ethically-charged products
Fit of the brand with the placement segment and its effect on recall and attitudes
