Download 14 - Cengage Learning

14
Global Promotion
Strategies
Learning Objectives
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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.
Chapter Outline
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Global promotion strategies
Personal selling
Global account management
Selling to businesses and governments
Other forms of promotion
Public relations
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 selfservice 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
International Selling (cont.)
• 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
Personal Selling
When a customer is met in person by a
representative of the marketing company
• 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
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
Bidding Process
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
Consortium Selling
• Consortium – Group of firms that share
a certain contract or project on a preagreed basis but act as one company
toward the customer
– Share the risk
– Enhance competitiveness of turnkey
projects
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
Telemarketing
• Can be used to solicit sales and to offer
enhanced customer service to current
and potential consumers
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
Public Relations
• Marketing activities that enhance brand
equity by promoting goodwill toward the
organization