global promotion strategies overview marketing communications include advertising, sales promotion,...
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GLOBAL PROMOTION STRATEGIESOverview Marketing communications include advertising, sales promotion, personal selling, and public relations. When communicating with publics in more than one country, firms must work within the limitations of each market to maximize their promotional objectives.
Elements of the Communication Process• Sender
•Encoding
•Message
•Medium of Transmission
• Receiver
•Decoding
•Response
•Feedback
• Noise
Global Advertising - Any Paid Form of Nonpersonal Communication where the Sponsor is IdentifiedOften Controversial
Benefits Derived from Advertising
1. Economic
a) Sales increase
b) Production increases
c) Per-unit cost of product goes down - economies of scale
Global Advertising - Any Paid Form of Nonpersonal Communication where the Sponsor is Identified
d) Price decreases
e) Sales increase further
f) Competition increases - yielding higher productivity and better product quality
2. Social
a) Employment is generated
b) Higher standard of living
Planning an Advertising Campaign - Specify Objectives; Then Decide On Advertising Message
1. Standardise when country markets are similar
2. Adapt when they are different
3. Avoid taboos of target market - don’t offend
Planning an Advertising Campaign - Specify Objectives; Then Decide OnBudget and Allocation Based on Internal and External Conditions
1. Internal conditions
a) Management orientation
b) Advertising objectives
c) Resources available
Planning an Advertising Campaign - Specify Objectives; Then Decide On2. External conditions
a) Governmental regulations
b) Competitors’ advertising strategies
c) Market attractiveness
d) Media restrictions
Planning an Advertising Campaign - Specify Objectives; Then Decide OnMedia Options and Country Characteristics
- Effectiveness Versus Economy
1. Televisiona) Developed countries (DCs) - countrywide availability
b) LDCs - concentrated in major cities, per capita ownership of TVs is lower
c) Limitations: ads may be bunched, broadcasting times vary, ads regulated
Planning an Advertising Campaign - Specify Objectives; Then Decide On2. Radio
a) DCs - popularity on the rise, many program options available
b) LDCs - good medium to reach uneducated urban and rural customers
3. Magazines
Planning an Advertising Campaign - Specify Objectives; Then Decide On
4. Newspapers
a) Advantages: fast and economical
b) Disadvantages: some LDCs don’t compile demographic data; they have space limitations and content specifications
Planning an Advertising Campaign - Specify Objectives; Then Decide On 5. Direct mail
a) DCs - more common
b) LDCs - limited opportunities, lack of reliable lists, undependable delivery, low literacy rates
6. Catalogs - limited to DCs for same reasons as for direct mail
Planning an Advertising Campaign - Specify Objectives; Then Decide On 7. Facsimile - controversial
8. Videos
a) Time not limited to 30- or 60- second slots
b) DCs - whole video can be an ad
c) LDCs - movie d\videos contain ads
9. Cinema - these ads more common in LDCs
10. Billboards - all countries
Planning an Advertising Campaign - Specify Objectives; Then Decide OnAdvertising Regulations - Know Them and Adapt Message Accordingly
Agency Selection
1. Global agency
2. Local agency
3. Combination of both
Global Sales Promotions - Short-Term Efforts to Increase SalesConsumer Sales Promotion Techniques - Can Foster Long-Term Objectives
1.Coupons - maintain current customers, attract new ones
2.Rebates - maintain current customers, attract new ones
3.Free samples - encourage new users by eliminating cost
4.Mail-in premiums
Global Sales Promotions - Short-Term Efforts to Increase Sales
5. In-pack premiums - promotional benefit packaged with the product
6. Bonus packs - more product for the same price
7. Trading stamps - increase store patronage
8. Contests and sweepstakes - enhance name recognition and stimulate sales
Global Sales Promotions - Short-Term Efforts to Increase Sales
1.Sales contests - increase sales
2.Price-off offers - push new products or move large quantities
3.Advertising allowances
Trade Sales Promotion Techniques - Persuade Channel Members to Carry Products or to Increase Sales
Global Sales Promotions - Short-Term Efforts to Increase Sales
4. Display allowances
5. Free goods
6. Push money - money to carry and to push products
Global Personal Selling - Keeping Buyers Happy, the Firm Informed The Personal Selling Process
1. Planning: what, how, when
2. Prospecting: who
3. Preparing: what buyers need, competitors offer
Global Sales Promotions - Short-Term Efforts to Increase Sales4. Selling
a) Approaching customer
b) Making presentation
c) Answering questions
d) Closing sale
5. Following up - establishing solid link
Global Sales Promotions - Short-Term Efforts to Increase SalesManaging the Global Sales Force
Sales Force Compensation
1. Straight salary
a) Advantages: sales force security, easy to administer
b) Disadvantage: lower sales if unmotivated sales force
Global Sales Promotions - Short-Term Efforts to Increase Sales2. Straight commission - fixed percentage or
varying percentage
a) Advantage: encourages performance
b) Disadvantage: salespeople may stop with quotas
3. Combination salary and commission
Global Public Relations - Tools for Building a Favorable ImageEmployee Relations - Create Favorable Ambassadors to the Community
Customer Relations - Show Firm Cares About Customers
Press Relations - Keep Shapers of Public Opinion on Firm’s Side
Government Relations - Be a Good Citizen