Presentation Transcript

1. Chapter 14

   Global Promotion Strategies
2. International Marketing Dilemma versus Promotion Standardization Promotion Adaptation
3. Promotion Standardization Advantages Economies of scope; production cost savings Able to spend more time, attention and $ on campaign itself Strong branding image, avoid confusion Travelers Viewers of global media Internet International organizational buyers
4. PRESSURES FOR PROMOTION ADAPTATION Written and spoken language differences Differences in symbolic meaning Differences in humor Product use and preference differences Lack of cross-cultural icons Value and norm differences Collectivism versus individualism Government regulation
5. Push versus Pull Strategies 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 channel is short, there is a lack of advertising media or difficulty using firm’s pull strategy in foreign markets
6. Personal Selling 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
7. International Selling (cont’d) 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 social/business events
8. International Sales Negotiations Negotiation style Japanese – least aggressive French and Brazilians – most aggressive Russia – zero-sum game Time orientation Longer in China versus U.S. and Europe Attitude toward final contract U.S., Germany, Scandinavia: “get it in writing” culture China, Arab Countries: Relationship and personal trust drive business practices; “loose” contracts
9. Recruitment & Compensation of Local Sales Force Recruitment Scarcity of skilled personnel Differences in prestige of sales positions in different cultures Compensation Salespeople from different cultures may respond to motivation programs differently Rewarding volume, consistency, straight salary, etc.
10. What Makes a Great Salesperson? LOW CONTEXT Preparation Great product Appearance Enthusiasm Self-confidence Great closer HIGH CONTEXT Preparation Great product The “person” Cultural awareness Relationship oriented
11. Global Account Team Global account team – Services a customer in every country in which the customer operates Response to centralized purchasing within global firms Most companies would rather do this, especially if they themselves are centrally operated
12. International Trade Fairs Ideal for exposing new customers and potential distributors to a company’s product range Very important for B2B sales in markets with underdeveloped media channels 600 trade shows in 70 countries each year Cologne Trade Fair Hanover Fair
13. Sales Promotion Stimulate immediate consumer purchasing and/or channel cooperation Coupons, sweepstakes, gifts, reduced-price labels, free goods, double-pack promotions, in-store displays, slotting allowances
14. Sales Promotion (cont’d) Country-to-country differences Cultural norms Taiwanese consumers prefer coupons to sweepstakes; Malaysians and Thais prefer sweepstakes to coupons Government restrictions and regulations Japan’s limitation on value of promotional gifts attached to products is 10% of the product’s price
15. Sports Promotions and Sponsorships Sports events increasingly covered by global media Olympics, World Cup Sign space Must have logo or brand worth exposing to global audience Take into consideration popularity of certain sports and the segments they attract
16. Olympics Versus the World Cup Soccer is favorite TV sport in 24 out of 34 countries surveyed by Ipsos-Reid 250 million registered soccer players and 1 billion spectators worldwide World Cup sponsors get good deal! Pay $20 million - $50 million Get rights to World Cup sponsorship marks, behind-the-scenes access, 2 on-field ad boards in 20 stadiums Year-long run-up to event
17. Telemarketing Can be used to solicit sales and to offer enhanced customer service to current and potential consumers Big in Latin America (Brazil) Telephone numbers must be easy to obtain phone lists often don’t exist in every developing (or even developed!) countries Government restrictions and regulations EU has its own “Do Not Call” list
18. Managing Word-of-Mouth Cultural differences in product recommendation references Individualistic cultures versus collectivist cultures