Module 7 Promotion Strategies

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Questions and Answers

When is the push strategy the best choice for promotion?

When the product is widely used by consumers

When self-service is not predominant in shopping behavior

When little mass media is available (correct)

When many existing competitors are present

In which scenario is personal selling the most effective?

When there is heavy dependence on sales promotions

When customers prefer self-service shopping behavior

When the marketing company meets the customers in person (correct)

When the product is complex and not widely used

What characterizes the pull strategy for promotions?

Heavy dependence on advertising

Dependent on final buyer or end user (correct)

Directed at distributors with incentives

Best choice when many competitors block access to consumers

In international selling, what does the local selling approach involve?

Organizing and staffing a local sales force with local nationals in that country Signup and view all the answers

When is personal selling in international sales particularly beneficial?

When meeting clients directly abroad Signup and view all the answers

What is the key focus in global account management?

Managing relationships with important customers worldwide Signup and view all the answers

Which scenario would be best suited for a push strategy in promotions?

A situation with limited access to end-use consumers due to competitors Signup and view all the answers

In what purchasing behavior context is the 'buying unit' considered critical?

'Buying unit' is crucial as decision-makers for a company Signup and view all the answers

What is a key consideration for global marketers selling to different markets?

Punctuality and appointment setting Signup and view all the answers

Why might negotiation with global customers put pressure on the marketing company?

Cultural variations affecting the negotiation process Signup and view all the answers

What characterizes a 'Missionary Sales Force' in international selling?

International company's sales force working with local distributors Signup and view all the answers

Why is it important to determine the best way to compensate local sales representatives?

To motivate the salespeople effectively Signup and view all the answers

In international trade fairs, what is one of the benefits for companies participating?

Showcasing product announcements and demonstrations Signup and view all the answers

'Consortium Selling' involves:

Multiple companies collaborating as one entity towards a buyer Signup and view all the answers

'Global Account Teams' are dedicated to servicing:

A single customer in every country they operate in Signup and view all the answers

'Local Selling' advantages include:

'Understanding local customs and market' Signup and view all the answers

What is important for global marketers to understand about buying criteria?

The centralized decision-making process and consensus importance Signup and view all the answers

How do 'Local Selling' and 'Missionary Sales Force' differ?

The degree of company involvement in the sales process Signup and view all the answers

What considerations are crucial for Direct Marketing by country?

Reliability and reach of land-based mail Signup and view all the answers

In what aspect does Public Relations internationally focus on?

Promoting goodwill and brand image Signup and view all the answers

Why does a company use a slightly varied advertising theme around the world?

To appeal more to local market characteristics Signup and view all the answers

What type of advertising approach may be restricted by cultural considerations?

'Soft sell' advertising Signup and view all the answers

What factor influences media selection in different countries?

Consumer habits and culture Signup and view all the answers

Why might a company face challenges in using a completely standardized global advertising approach?

Because products have varying stages of their life cycles globally Signup and view all the answers

What is a crucial factor influencing media selection in different countries?

Consumer habits and urban vs rural market differences Signup and view all the answers

How do Japanese advertising practices typically differ from North American advertising approaches?

'Soft sell' focusing more on emotions than facts Signup and view all the answers

'Claims made by a product' is an example under which decision-making consideration?

'Global or Local Decision – Regulatory Environment' Signup and view all the answers

Study Notes

Global Promotion Strategies

Global promotion strategies can be classified into two categories: Push and Pull.
Push strategies are directed at the distributor of a product, offering incentives to wholesalers or retailers to carry and promote a product.
Push strategies are suitable when there is little mass media available to advertise to end-users, many existing competitors block access to consumers, and the product is not widely used by consumers.

Pull Strategies

Pull strategies are directed at the final buyer or end-user of a product or service.
Pull strategies involve heavy dependence on sales promotions and advertising.
Pull strategies are suitable when the product is widely used by consumers, the channel is long, and self-service is the predominant shopping behavior.

Personal Selling

Personal selling involves meeting customers in person to promote products.
International selling involves traveling across countries to meet clients abroad, while local selling involves organizing a local sales force made up of local nationals.
The "buying unit" is critical to success, comprising decision-makers who may have different criteria and objectives depending on the company, country, or region.

International Selling

International selling involves understanding the local culture and business practices, including how appointments are made, the importance of arriving on time, and gift-giving customs.
Sales negotiations can be complicated by cultural differences, including negotiation styles, length of time to get a contract, and the desire to "get it in writing."

Global Account Management

A global account team is dedicated to servicing a multinational global buyer, managing business for a single customer in each country where they operate.
Global account teams are made possible by information technology systems and are a response to centralized purchasing within global customer firms.

Selling to Businesses and Governments

International trade fairs are used to meet new prospective B2B customers and distributors, gain information on competitors, and showcase products.
Consortium selling involves a group of firms participating in a project on a pre-agreed-upon basis, sharing a certain contract or project, and acting as one company toward the buyer.

Sales Promotion

International sales promotion considerations include consumer preferences, government regulations, and sales promotion tactics used by competitors.
Direct marketing involves supporting infrastructure, availability of accurate and targeted phone or mailing lists, and reliability and reach of land-based mail and internet networks.

Public Relations

Public relations can be leveraged internationally to promote goodwill, contribute to a positive brand/company image, drive awareness, and defend the company or brand against negative media coverage.

Global Advertising

Global advertising involves using the same advertising theme worldwide, but varying it slightly in each local execution.
Companies select some features as standard for all advertisements but change other features to match better the characteristics of the local market.

Global or Local Decision

The global or local decision involves considering factors such as cost, branding, target markets, product lifecycle, consumer perceptions, and regulatory environment.
Regulations within a country can prevent firms from using standardized/global approaches to advertising.
Cultural differences, such as Japanese consumers being moved more by emotion than facts, can also influence the decision.

Global Media Strategy

Media decision considerations vary by country, including media availability, media habits by consumers, and urban vs rural market consumers.
Media selection differs tremendously based on consumer lifestyles in different countries.

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Description

Test your knowledge of global promotion strategies including Pull versus Push, personal selling, global account management, and global PR & Advertising. Learn about the differences between Push and Pull strategies, when to use each, and their effectiveness in different situations.