Global Marketing Communications Decisions II: Sales Promotion, Personal презентация

Learning Objectives

Sales Promotion Sales promotion refers to any paid consumer or trade communication program of limited duration that adds tangible value to a product or brand Price vs. non-price promotions Consumer vs. trade promotions

Provide a tangible incentive to buyers Provide a tangible incentive to buyers Reduce the perceived risk associated with purchasing a product Provide accountability for communications activity Provide method of collecting additional data for database

Sales Promotion: Global or Local In countries with low levels of economic development, low incomes limit the range of promotional tools available Market maturity can also be different from country to country Local perceptions of a particular promotional tool or program can vary Local regulations may rule out use of a particular promotion in certain countries Trade structure in the retailing industry can affect the use of sales promotions

Sampling

Couponing

Social Couponing Hot online trend Groupon is industry leader Deals are made with local retailers with Groupon taking a percentage of proceeds Grown from 1 country to 35 mainly through acquisition 40 million users in 48 global markets by 2012 Over 50% of users are in Europe, 33% in U.S. Founders rejected Google’s $6 billion takeover offer

Sales Promotions

Sales Promotion: Issues and Problems Fraud Pepsi promotion with Apple Regulations vary by country Cultural dispositions to coupons and other sales promotions Malaysians see coupon usage as embarrassing Islam frowns on gambling so sweepstakes may not work

Personal Selling Person-to-person communication between a company representative and a prospective buyer Focus is to inform and persuade prospect Short-term goal: make a sale Long-term goal: build a relationship

Personal Selling Hurdles Political Risks – unstable or corrupt governments change the rules for the sales team Regulatory Hurdles – Governments can set up quotas or tariffs that affect the sales force Currency Fluctuations – increase and decrease in local currencies can make certain products unaffordable Market Unknowns – lack of knowledge of market conditions, the accepted way of doing business, or positioning of the product may derail the sales team’s efforts

The Strategic/Consultative Selling Model

The Strategic/Consultative Selling Model Personal Selling Philosophy – commitment to the marketing concept and a willingness to adopt the role of problem solver/partner Relationship Strategy – game plan for establishing and maintaining high-quality relationships with prospects/customers Product Strategy – plan that can assist the sales representative in selecting and positioning products to satisfy customer needs

The Strategic/Consultative Selling Model Customer Strategy – plan that ensures that the sales professional will be maximally responsive to customer needs Presentation Strategy – consists of setting objectives for each sales call and establishing a presentation plan to meet those objectives

The Strategic/Consultative Selling Model

The Presentation Plan Approach Presentation Demonstration Negotiation Close Servicing the sale

Approach & Presentation Approach Initial contact with the customer/ prospect Must completely understand the decision-making process and the roles of each participant

Demonstration & Negotiation Demonstration Salesperson has the opportunity to tailor the communication effort to the customer Can show how the product can meet the customer’s needs

Close & Servicing the Sale Close Ask for the sale Must be culturally sensitive

Sales Force Nationality Expatriates Host-country nationals Third-country nationals Other options

Expatriates Advantages Superior product knowledge Demonstrated commitment to service standards Train for promotion Greater HQ control

Host-Country Nationals Advantages Economical Superior market knowledge Language skills Superior cultural knowledge Fast implementation

Third-Country Nationals Advantages Cultural sensitivity Language skills Economical Allows regional sales coverage

Other Options Sales agents Exclusive license arrangements Contract manufacturing or production Management-only agreements Joint ventures

Special Forms of Marketing Communications Direct Marketing Direct mail Catalogs Infomercials, teleshopping Event Sponsorship Concerts, sporting events Product placement in movies Internet Communications

Direct Marketing Any communication with a consumer or business recipient that is designed to generate a response in the form of: An order Request for further information A visit to a store or other place of business

One-to-One Marketing Building from Customer Relationship Management Identify customers and accumulate detailed information about them Differentiate customers and rank them in terms of their value to the company Interact with customers and develop more cost efficient and effective forms of interaction Customize the product/service offered to the customer

Direct Marketing vs. Mass Marketing

Advice for U.S. Direct Marketers Going Global The world is full of people who are not Americans. Be sure not to treat them like they are. Like politics, all marketing is local. Just because your direct mail campaign worked in Texas, do not assume it will work in Toronto. Although there may be a European Union, there is no such thing as a "European." Pick your target, focus on one country, and do your homework. Customers need to be able to return products locally or at least believe there are services available in their country.

Direct Mail A vehicle for delivering a personally addressed offer to a prospect targeted by a marketer Popular with banks, insurance co., other financial service providers U.S. direct mail lists are easy to rent; Europe and Japan lists are lower in quality Germans spend the most, $500 per capita, in mail-order shopping

Catalogs

Infomercials and Teleshopping An infomercial is a form of paid TV in which a particular product is demonstrated, explained, and offered for sale to viewers who call a toll-free number on the screen In Asia, infomercials make $100s of millions in sales. Low penetration rates of private phones, credit cards & delivery issues create difficulties Teleshopping on channels like HSN and QVC is exclusively devoted to demonstration and selling

Interactive Television ITV allows viewers to interact with the programming content they are viewing In the U.K., more than half of pay-TV subscribers use ITV Remote controls have buttons to push to order products shown on screen

Outdoor Ad Spending as a Percentage of Total Ad Spending

Sponsorships A company pays a fee to be associated with an event, team, athletic association, or sports facility Combines elements of PR and sales promotion Draws media attention

Product Placement Arranging to have the company’s products and brand names appear in TV shows, movies, and other types of entertainment Marketers also lend or donate products to celebrities and other public figures Issue for Marketers: Once seen in a movie, products cannot be easily adapted to meet local market needs

Looking Ahead to Chapter 15 Global Marketing and the Digital Revolution