Chapter 14

Global Promotion
Strategies

The Marketing Mix

Targeted
PRODUCT

Targeted
PRICE

A Well-Positioned
Marketing
Mix
Targeted
PLACE
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Targeted
PROMOTION

Chapter 14 | Slide 2

International Marketing Dilemma

versus
Promotion
Standardization

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Promotion
Adaptation

Chapter 14 | Slide 3

Events
&
Sponsorships
Advertising

Trade Fairs

Publicity

Direct Marketing

Integrated
International
Promotion

Personal
Selling

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Public Relations

In-Store
Promotions
Chapter 14 | Slide 4

Promotion Standardization
Advantages
Economies of scope; production
cost savings
Able to spend more time, attention
and $ on campaign itself
Strong branding image, avoid
confusion

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Travelers
Viewers of global media
Internet
International organizational buyers

Chapter 14 | Slide 5

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

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Chapter 14 | Slide 6

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 there is a lack of
advertising media or difficulty transferring firms pull
strategy in foreign markets
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Chapter 14 | Slide 7

Hindu Festival Attracts U.S. Marketers

Kumbh Mela festival draws 30 million
participants, many from small towns
Western brands promote products
Samples, billboard and poster advertising,
and other sales promotions
Encourage product trial
Incites word-of-mouth

Commercialization of ancient tradition?

Economic imperialism?

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Chapter 14 | Slide 8

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

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Local selling
Company organizes
and staffs a local
sales force made up
of local nationals to
do selling in that
country

Chapter 14 | Slide 9

International Selling
Purchasing behavior can vary country
to country

Initiator
Initiator

User
User

Decision
Maker

Gatekeeper
Gatekeeper

Influencer
Influencer
Buyer
Buyer

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Who

is the buying unit?

What role does each play in
the decision-making process?
Chapter 14 | Slide 10

International Selling (contd)

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

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Chapter 14 | Slide 11

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. get it in writing culture

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Chapter 14 | Slide 12

Local Selling
Role of local sales force
Missionary sales force Visiting clients
together with local distributors sales force
Company-owned sales force Company sales
force ensures personnel have right training and
qualifications and uniform price negotiations

Foreign sales practices

Nature of the interaction between salespeople
and local customer can be different market to
market
Bausch & Lomb in Japan

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Chapter 14 | Slide 13

Local Selling (contd)

Recruitment
Scarcity of skilled personnel
Differences in prestige of sales positions in
different cultures

Compensation
Salespeople from different cultures may respond
to motivation programs in the same way
Rewarding volume, consistency, straight salary, etc.

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Chapter 14 | Slide 14

What Makes a Great Salesperson?

LOW
LOW CONTEXT
CONTEXT
Preparation
Preparation
Great
Great product
product
Appearance
Appearance
Enthusiasm
Enthusiasm
Self-confidence
Self-confidence
Great
Great closer
closer

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HIGH
HIGH CONTEXT
CONTEXT
Preparation
Preparation
Great
Great product
product
The
The person
person
Cultural
Cultural awareness
awareness
Relationship
Relationship oriented
oriented

Chapter 14 | Slide 15

Global Account Team

Global account team Services a
customer in every country in which the
customer operates
Siemens teams for Volkswagen & Ford

Response to centralized purchasing within

global firms
Information technology makes it possible
Price pressures

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Chapter 14 | Slide 16

International Trade Fairs

Ideal for exposing new customers and
potential distributors to a companys 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

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Chapter 14 | Slide 17

Selling to Business and Government

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Chapter 14 | Slide 18

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 purchasers
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
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Chapter 14 | Slide 19

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

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Chapter 14 | Slide 20

Sales Promotion
Add value to products in order to
stimulate consumer purchasing and/or
channel cooperation
Coupons, sweepstakes, gifts, reducedprice labels, free goods, double-pack
promotions, in-store displays, slotting
allowance

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Chapter 14 | Slide 21

Sales Promotion (contd)

Country-to-country differences exist

Cultural norms
Taiwanese consumers prefer coupons to sweepstakes;
Malaysians and Thais prefer sweepstakes to coupons

Government restrictions and regulations

Japans limitation on value of promotional gifts attached
to products is of the 10% products price

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Chapter 14 | Slide 22

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

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Chapter 14 | Slide 23

Olympics Versus the World Cup

Soccer is favorite TV sport in 24 out of 34
countries surveyed by Ipsos-Reid
Corporation
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 marks, behind-thescenes access, 2 on-field ad boards in 20
stadiums
Year-long run-up to event
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Chapter 14 | Slide 24

Telemarketing
Can be used to solicit sales and to
offer enhanced customer service to
current and potential consumers
Efficient telephone system required
Telephone numbers must be easy to
obtain phone books dont exist in
every country!
Government restrictions and
regulations

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Chapter 14 | Slide 25

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
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Chapter 14 | Slide 26

Public Relations
Marketing activities that enhance brand
equity by promoting goodwill toward
the organization
May be necessary to defend brand
against bad publicity
PR campaigns can go wrong if not
managed correctly
Philip Morris in Czech Republic
Nestls baby formula in developing countries

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Chapter 14 | Slide 27

Growing Importance of Promotions in

Developing Countries
Shift from mass to target marketing
No ones ever spoken to them personally before.

Role of collectivism
Local partners
Message

Appropriate adaptation
Talk to someone about a trip to Tahiti and you
may lose them. But talk about supermarket
coupons for groceries and a TV or stereo, then
youve got more attention.

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Chapter 14 | Slide 28

Dunkin Donuts Love

Campaign in Thailand
Mothers Day campaign
Good cultural fit with Thai importance on family,
Queen Mother, etc.

Integrated promotion campaign

In-store promotions
Sales promotion and packaging
Public relations
Publicity

Very successful!
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Chapter 14 | Slide 29

Axe & Durex Co-Branded

Campaign in Thailand
Axe is positioned as a sexy brand; cobrands with condom manufacturer
Integrated promotion campaign
Premium
Packaging inserts
Flyers
Advertisements

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Chapter 14 | Slide 30