Global Promotion Strategies

1. Global Promotion Strategies Lecture 28

2. Recap • Global promotion strategies • Personal selling

3. Global Account Team • 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

4. Selling to Businesses and Governments • International Trade Fairs • Selling through a bidding process • Consortium selling

5. Bidding Process • Search phase – Purchaser utilizes media and business contacts to search for vendors • Prequalifying phase – Purchaser requests documentation from potential bidders • Formal bids – Bidders provide written statement of how they will solve purchaser’s problem and their price • Selection– Purchaser makes choice • Performance bond – A guarantee that the company will pay certain specified damages if job not completed in accordance with specifications

6. Consortium Selling • 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

7. Sales Promotion • 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

8. Sports Promotion and Sponsorships • Today, large sports events, such as the olympics and world championships in specific sports, cannot exist in their present form without funding by companies.

9. Telemarketing • Can be used to solicit sales and to offer enhanced customer service to current and potential consumers

10. Managing Word-of-Mouth • 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

11. Public Relations • Marketing activities that enhance brand equity by promoting goodwill toward the organization

12. Summary • Global account management • Other forms of promotion • Public relations

13. References • Gillespie, K., Jeannet, J.P. and Hennessey, H.D. (2004), Global Marketing: An Interactive Approach, Houghton Mifflin, Boston, NY.