GLOBAL PROMOTION STRATEGIES Overview 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 Identified Often Controversial Benefits Derived from Advertising 1. Economic Sales increase Production increases Per-unit cost of product goes down - economies of scale

Global Advertising - Any Paid Form of Nonpersonal Communication where the Sponsor is Identified Price decreases Sales increase further Competition increases - yielding higher productivity and better product quality 2. Social Employment is generated Higher standard of living

Planning an Advertising Campaign - Specify Objectives; Then Decide On Advertising Message Standardise when country markets are similar Adapt when they are different Avoid taboos of target market - don’t offend

Planning an Advertising Campaign - Specify Objectives; Then Decide On Budget and Allocation Based on Internal and External Conditions 1. Internal conditions Management orientation Advertising objectives Resources available

Planning an Advertising Campaign - Specify Objectives; Then Decide On 2. External conditions Governmental regulations Competitors’ advertising strategies Market attractiveness Media restrictions

Planning an Advertising Campaign - Specify Objectives; Then Decide On Media Options and Country Characteristics - Effectiveness Versus Economy 1. Television Developed countries (DCs) - countrywide availability LDCs - concentrated in major cities, per capita ownership of TVs is lower Limitations: ads may be bunched, broadcasting times vary, ads regulated

Planning an Advertising Campaign - Specify Objectives; Then Decide On 2. Radio DCs - popularity on the rise, many program options available LDCs - good medium to reach uneducated urban and rural customers 3. Magazines

Planning an Advertising Campaign - Specify Objectives; Then Decide On 4. Newspapers Advantages: fast and economical 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 DCs - more common 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 Time not limited to 30- or 60- second slots DCs - whole video can be an ad 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 On Advertising 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 Sales Consumer Sales Promotion Techniques - Can Foster Long-Term Objectives Coupons - maintain current customers, attract new ones Rebates - maintain current customers, attract new ones Free samples - encourage new users by eliminating cost Mail-in premiums

Global Sales Promotions - Short-Term Efforts to Increase Sales In-pack premiums - promotional benefit packaged with the product Bonus packs - more product for the same price Trading stamps - increase store patronage Contests and sweepstakes - enhance name recognition and stimulate sales

Global Sales Promotions - Short-Term Efforts to Increase Sales Trade Sales Promotion Techniques - Persuade Channel Members to Carry Products or to Increase Sales Sales contests - increase sales Price-off offers - push new products or move large quantities Advertising allowances

Global Sales Promotions - Short-Term Efforts to Increase Sales Display allowances Free goods Push money - money to carry and to push products

Global Personal Selling - Keeping Buyers Happy, the Firm Informed The Personal Selling Process Planning: what, how, when Prospecting: who Preparing: what buyers need, competitors offer

Global Sales Promotions - Short-Term Efforts to Increase Sales Selling Approaching customer Making presentation Answering questions Closing sale Following up - establishing solid link

Global Sales Promotions - Short-Term Efforts to Increase Sales Managing the Global Sales Force Sales Force Compensation Straight salary Advantages: sales force security, easy to administer Disadvantage: lower sales if unmotivated sales force

Global Sales Promotions - Short-Term Efforts to Increase Sales Straight commission - fixed percentage or varying percentage Advantage: encourages performance Disadvantage: salespeople may stop with quotas Combination salary and commission

Global Public Relations - Tools for Building a Favorable Image Employee 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