Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication Chapter 14. The Presentation

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Global Marketing WARREN J. KEEGAN MARK C. GREEN Ninth Edition, Global Edition Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communi... cation Chapter 14 Copyright © 2017 Pearson Education, Ltd.Learning Objectives 1. Define sales promotion and identify the most important promotion tactics and tools used by global marketers. 2. List the steps in the strategic/ consultative selling model. 3. Explain the contingency factors that must be considered when making decisions about sales force nationality. 4. Explain direct marketing’s advantages and identify the most common types of direct marketing channels. 5. Identify special forms of marketing communication and explain how global marketers integrate them into the overall promotion mix. Copyright © 2017 Pearson Education, Ltd. 14-2Sales 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 Axe Apollo featured astronaut Buzz Aldrin in promoting a free trip to space for 22 lucky winners. Copyright © 2017 Pearson Education, Ltd. 14-3• 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 Copyright © 2017 Pearson Education, Ltd. 14-4Sales 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 Copyright © 2017 Pearson Education, Ltd. 14-5Sampling • Sampling – Provides consumer with opportunity to try product at no cost – May be distributed in stores, in the mail, through print media, at events, or door-to-door –Kikkoman soy sauce launched a sampling program in supermarkets in the U.S.; today the U.S. contributes 85% of profit from international operations Copyright © 2017 Pearson Education, Ltd. 14-6Couponing • Couponing – Printed certificates entitle the bearer to a price reduction or some other special consideration for purchasing a particular product •Couponing accounts for 70% of consumer promotion spending in the U.S. •Free-standing inserts, in-pack, on-pack, cross coupons Copyright © 2017 Pearson Education, Ltd. 14-7Social Couponing • Hot online trend –Utilising a social network • 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 Copyright © 2017 Pearson Education, Ltd. 14-8Sales Promotions Copyright © 2017 Pearson Education, Ltd. 14-9Sales 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 Copyright © 2017 Pearson Education, Ltd. 14-10Personal 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 Copyright © 2017 Pearson Education, Ltd. 14-11Personal 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 Copyright © 2017 Pearson Education, Ltd. 14-12The Strategic/Consultative Selling Model Evolved in response to: •Increased competition •More complex products •More emphasis on customer needs •Long-term relationships Copyright © 2017 Pearson Education, Ltd. 14-13The 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 Copyright © 2017 Pearson Education, Ltd. 14-14 https://www.youtube.com/watch?v=dUNVuugfEQMThe 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 Copyright © 2017 Pearson Education, Ltd. 14-15The Strategic/Consultative Selling Model Copyright © 2017 Pearson Education, Ltd. 14-16The Presentation Plan • Approach • Presentation • Demonstration • Negotiation • Close • Servicing the sale Copyright © 2017 Pearson Education, Ltd. 14-17Approach & Presentation Approach • Initial contact with the customer/ prospect • Must completely understand the decision-making process and the roles of each participant Presentation • Prospect’s needs are assessed and matched to the company’s products • The style and message of the presentation must be tailored to the audience Copyright © 2017 Pearson Education, Ltd. 14-18Demonstration & 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 Negotiation • Ensures that both the customer and the salesperson come away from the presentation winners Copyright © 2017 Pearson Education, Ltd. 14-19Close & Servicing the Sale Close • Ask for the sale • Must be culturally sensitive Servicing the Sale • To ensure customer satisfaction – Implementation process must be outlined – Customer service program established Copyright © 2017 Pearson Education, Ltd. 14-20Sales Force Nationality • Expatriates • Host-country nationals • Third-country nationals • Other options Copyright © 2017 Pearson Education, Ltd. 14-21Expatriates • Advantages – Superior product knowledge – Demonstrated commitment to service standards – Train for promotion – Greater HQ control • Disadvantages – Higher cost – Higher turnover – Cost for language and cross-cultural training Copyright © 2017 Pearson Education, Ltd. 14-22Host-Country Nationals Advantages – Economical – Superior market knowledge – Language skills – Superior cultural knowledge – Fast implementation Disadvantages – Needs product training – May be held in low esteem – Language skills may not be important – Difficult to ensure loyalty Copyright © 2017 Pearson Education, Ltd. 14-23Third-Country Nationals • Advantages – Cultural sensitivity – Language skills – Economical – Allows regional sales coverage • Disadvantages – May face identification problems – May be blocked for promotions – Income gaps – Needs product and/or company training – Loyalty not assured Copyright © 2017 Pearson Education, Ltd. 14-24Other Options • Sales agents • Exclusive license arrangements • Contract manufacturing or production • Management-only agreements • Joint ventures Copyright © 2017 Pearson Education, Ltd. 14-25Special Forms of Marketing Communications • Direct Marketing – Direct mail – Catalogs – Infomercials, teleshopping • Event Sponsorship – Concerts, sporting events – Product placement in movies • Internet Communications Copyright © 2017 Pearson Education, Ltd. 14-26Direct 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 Copyright © 2017 Pearson Education, Ltd. 14-27One-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 Copyright © 2017 Pearson Education, Ltd. 14-28Direct Marketing vs. Mass Marketing Copyright © 2017 Pearson Education, Ltd. 14-29Copyright © 2017 Pearson Education, Ltd. 14-30 Common forms of direct marketing include: •Brochures •Catalogs •Fliers •Newsletters •Post cards •Coupons •Emails •Targeted online display ads •Phone calls •Text messages https://www.youtube.com/watch?v=l31gf8p nQLwAdvice 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. Copyright © 2017 Pearson Education, Ltd. 14-31Direct 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 Copyright © 2017 Pearson Education, Ltd. 14-32Catalogs German supermodel Yvonne Catterfeld with Otto Catalog •Catalog: magazine-style publication that features photographs, illustrations, and extensive information about a company’s products •U.S. 1/3 of world market, 17 billion mailed in 2008 •EU: Elimination of barriers has led to a boom •Hong Kong and Singapore have efficient postal systems and highly educated consumers with credit cards Copyright © 2017 Pearson Education, Ltd. 14-33Infomercials 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 tollfree 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 Copyright © 2017 Pearson Education, Ltd. 14-34Interactive 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 Copyright © 2017 Pearson Education, Ltd. 14-35Outdoor Ad Spending as a Percentage of Total Ad Spending Copyright © 2017 Pearson Education, Ltd. 14-36Sponsorships • 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 Copyright © 2017 Pearson Education, Ltd. 14-37Product 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 Copyright © 2017 Pearson Education, Ltd. 14-38 [Show More]

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