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14. global promotion_strategies[1]

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Global Promotions

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14. global promotion_strategies[1]

  1. 1. THARAKA DIAS MBA(USA), BBA(USA), Dip in Mgt, ACIM(UK), FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia), MSLIM, PM(Sri-Lanka) 1
  2. 2.  List the major factors that determine a firm’s ability to use a push or a pull promotion strategy in different national markets.  Contrast the benefits to the international marketer of using an international sales force with those of using local sales forces.  Describe the impact that different purchasing behaviors, buying criteria, languages, and negotiation styles can have on international selling.  Explain the importance of global account management.  Describe how global marketers can successfully utilize international trade fairs and consortia as well as manage the international bidding process.  Cite examples of how sales promotions vary across cultures, and suggest reasons for these differences.  Note recent international trends in sales promotions, sports sponsorships, telemarketing, product placement, and managing word-of-mouth.  Give examples of international public relations disasters and suggest ways by which global marketers can promote the goodwill of their firms. 2
  3. 3.  Global promotion strategies  Personal selling  Global account management  Selling to businesses and governments  Other forms of promotion  Public relations 3
  4. 4.  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 there is a lack of advertising media or difficulty transferring firm’s pull strategy in foreign markets 4
  5. 5.  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 sales banquets and other social/business occasions 5
  6. 6.  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 6
  7. 7.  Global account team – Services a customer in every country in which the customer operates ▪ Siemen’s teams for Volkswagen & Ford  Response to centralized purchasing within global firms  Information technology makes it possible  Price pressures 7
  8. 8. 1. Search phase – Purchaser utilizes media and business contacts to search for vendors 2. Prequalifying phase – Purchaser requests documentation from potential bidders 3. Formal bids – Bidders provide written statement of how they will solve purchaser’s problem and their price 4. Selection – Purchaser makes choice  Performance bond – A guarantee that the company will pay certain specified damages if job not completed in accordance with specifications 8
  9. 9.  Consortium – Group of firms that share a certain contract or project on a pre- agreed basis but act as one company toward the customer  Share the risk  Enhance competitiveness of turnkey projects 9
  10. 10.  Add value to products in order to stimulate consumer purchasing and/or channel cooperation  Coupons, sweepstakes, gifts, reduced-price labels, free goods, double-pack promotions, in-store displays, slotting allowance 10
  11. 11.  Can be used to solicit sales and to offer enhanced customer service to current and potential consumers 11
  12. 12.  Cultural differences in product recommendation references  Individualistic cultures versus collectivist cultures  Buzz marketing – Marketing activities undertaken to stimulate consumer discussion of the product  Good buzz and bad buzz 12
  13. 13.  Marketing activities that enhance brand equity by promoting goodwill toward the organization 13
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