Module 7 Promotion Strategies

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.