Global Sales Promotion: In-Store, Trade Promotions, and More

2. 16 Chapter Global Promotion, E-Commerce, and Personal Selling

3. Global Sales Promotion • In-Store and Trade Promotions • Sales promotion needs to be localized because its use is often more rigidly regulated than advertising • In-store or point-of-purchase promotions refer to promotional activities inside the store • Trade promotions are targeted at channel intermediaries

4. Global Sales Promotion • In-Store and Trade Promotions • Cooperation from the Trade • In-store promotions need to be supported by trade promotions • Attitudes Toward Coupons • Retailers need to handle promotions such as coupons professionally • Limited Capability • Since distribution infrastructure is often different between countries, some promotions may simply not be feasible • Presold Customers • In-store promotions work best when the consumer expects to make choices in the store

5. Global Sales Promotion • Sponsorships • With the advent of global media, the possibilities for global sponsorships are increasing • As markets have become more saturated and many products have reached maturity, more companies have been turning to sponsorships to more effectively segment the market • Cross-Marketing • The cross-marketing of related products from successful events represents one of the many tactics used by the globally successful American companies

6. Publicity • Publicity • Publicity is more credible than paid advertising • There is no need to pay for air time or press coverage • Publicity requires some management and can be labor-intensive • The preparation of press releases requires skill especially when the information is about a technical breakthrough • Even “negative” publicity can have its rewards • It serves to keep the brand name in the public eye

7. Publicity • Product Placement • Product placement refers to the use of branded products in films and television • Product placement involves • Contracting with producers about using the branded product as a natural prop in the film or TV program • The use of product placement has be stimulated largely by • The global success of American entertainment vehicles • Ensuring wide exposure across the world

8. Global Public Relations • Global Public Relations • A form of indirect promotion of products and services that focuses on creating goodwill toward the corporation as a whole • One job of the public relations staff is to make sure that potential company image conflicts do not erupt and, when they do, to carry out “damage control” • Damage control refers to actions taken to limit the spillover of the firm’s image into a negative public opinion • Cause Marketing • Refers to the activities by which a company will try to associate itself with a worthy societal cause

9. International Trade Fairs • International Trade Fairs • Participation in international trade fairs • Can identify potential distributors in a new local market • May serve as the chance to for the firm to: • Introduce a company’s latest products and models • Discover industry trends • Spot new competitive developments • For the global marketer, • Trade fairs are an excellent promotional avenue • Participation enhances and sustains visibility and local presence

10. Direct Marketing • Direct Marketing • An interactive marketing system that uses advertising media to effect a measurable response and/or transaction at any location • The traditional direct marketing medium is mail order • In recent years telemarketing, has grown fast in the U.S. and so has direct response television • Direct marketing is growing rapidly, because it is fast, safe, convenient, low-cost and eliminates the job of going to the store

11. Direct Marketing • Regional Developments • Direct marketing opportunities in mail order • Boosted by the recent privatization of many postal services around the world • Latin America • An area where direct marketing possibilities are opening up as a result of improve infrastructure • Japan • Has become a natural target for direct marketers, with its high per capita income, well-developed post and telecommunications, and complex distribution system

12. Direct Marketing • Global Strategy • Three ways of implementing a global strategy • “Do it yourself” • The most obvious method is the company developing the market and the necessary contacts on its own • Marketing intermediary • A second way is to turn the product over to a direct marketing company specializing in international marketing and let it act as a general contractor • Strategic alliance • A third option is to develop a strategic alliance with a direct marketing company in the local market • To date, selecting the marketing intermediary seems to be the method chosen most often by smaller companies

13. Electronic Commerce • Electronic Commerce • Refers to buying and selling goods and services online • Electronic commerce generally refers to the “exchange” between a provider and a customer using electronic communications • Market Growth • All indications are the World Wide Web marketplace will continue to grow by leaps and bounds

14. Electronic Commerce • Marketing Strengths and Weaknesses • Marketing strengths of electronic commerce • Easy and convenient for the customer to do business with the vendor • Creates a natural on-to-one relationship between buyer and seller • Fosters customer loyalty and increases customer retention rates • Helps the company focus on providing customer value • Lowers costs for buyers and sellers in the whole process from the prepurchase stage to the postpurchase stage • Facilitates price comparisons

15. Electronic Commerce • Marketing Strengths and Weaknesses • Marketing weaknesses of electronic commerce • It can reach only a certain segment of the total market, those with desktops and Internet access • It cannot yet provide the full tactile experience with the product or the personal interaction in services • For effective implementation, electronic commerce needs good electronic communication links • Many customers are put off by computer and technology • The perceived risks involved can be great • Without credit cards, electronic commerce would be unthinkable

16. Electronic Commerce • Promoting the Site • The Web home page • The first screen image that pops up when a user accesses a particular company site • Specialized software developers • Design the home page for companies and also maintain and update the site for a fee • E-commerce on the Internet is necessarily a global effort

17. Global Personal Selling • Managing a Sales Force • When the company is simply an exporter using in independent distributors, management of the sales force is not an issue • Establishing the company’s own sales force in a foreign country requires faith in the market and considerable resources • Where personal selling is used primarily to sell to middlemen and large customers, the practice is often to hire some of the people who used to work for the distributor in order to avoid high start-up costs

18. Global Personal Selling • Managing a Sales Force • Factors affecting the transferability of selling strategies • Geographic and physical dimensions • The geographical spread of a country and roadways and transportation conditions are factors in determining the size of the sales territories • Degree of market development • In countries where customers are sophisticated and demanding, in-depth training and specialization of the sales force are both necessary and possible • Differing regulatory environments • In some countries where fringe benefits may be high, the cost for a salesperson will escalate • Differing human relations • In many societies the job of a salesperson is looked down on as relatively unworthy

19. Global Personal Selling • Personal Salesmanship • Characteristics of good salesmanship • Enthusiasm, self-confidence, and appearance • Representing the Country • The standard approach to preparing for a sales call should be augmented abroad by a wider definition of the “customer’s needs” • The biggest mistake for the individually oriented salesperson is to let enthusiasm and self-confidence place ego in the way of the company and the product

20. Global Personal Selling • The Presentation • Five stages of the presentation process • Stage 1—Attention. Get the customer to listen to you • Stage 2—Interest. Get the customer interested in what you have to say • Stage 3—Desire. Get the customer to desire what you are selling • Stage 4—Conviction. Convince the buyer that the offer is a good deal • Stage 5—Action. Get the customer’s signature on the contract • Be Prepared! • There is no shortcut to effective sales presentation abroad • The most fundamental building block is the process of preparation

21. Global Personal Selling • Handling Objections is a difficult task in any sales presentation • This is more so in global settings where communications are more easily garbled • Closing Tactics • When closing is seemingly within reach • Some person with intimate knowledge of the country’s customs should be present to assist the salesperson • Global personal selling has to be localized and adapted with sensitivity, persistence, preparation, and a good product

22. Integrated Marketing Communications • Integrated Marketing Communications (IMC) • The IMC concept stresses the need to combine the various communication disciplines • This ensures clarity, consistency, and maximum communications impact • The IMC concept is difficult to implement globally • It enlarges the number of communication functions that need to be coordinated • IMC forces adverting and promotional specialists to “think outside the box”