14Global Promotion Strategies

Learning Objectives

• List the major factors that determine a firm’s ability to use a push or a pull promotion strategy in different national markets.

• Contrast the benefits to the international marketer of using an international sales force with those of using local sales forces.

• Describe the impact that different purchasing behaviors, buying criteria, languages, and negotiation styles can have on international selling.

• Explain the importance of global account management.

• Describe how global marketers can successfully utilize international trade fairs and consortia as well as manage the international bidding process.

• Cite examples of how sales promotions vary across cultures, and suggest reasons for these differences.

• Note recent international trends in sales promotions, sports sponsorships, telemarketing, product placement, and managing word-of-mouth.

• Give examples of international public relations disasters and suggest ways by which global marketers can promote the goodwill of their firms.

Chapter Outline

• Global promotion strategies

• Personal selling

• Global account management

• Selling to businesses and governments

• Other forms of promotion

• Public relations

Push versus Pull Strategies

• Pull strategy– Focuses on the end-user or the buyer– Dependence on sales promotions and advertising– Advisable when product is widely used by consumers,

channel is long, product is not complex, and when self-service is predominant shopping behavior

• Push strategy– Focuses on the distributors of a product – Incentives offered to wholesalers or retailers to carry

and promote a product– May resort to push when there is a lack of advertising

media or difficulty transferring firm’s pull strategy in foreign markets

International Selling (cont.)

• Buying criteria– How products/vendors are selected may vary

market to market

• Language– Importance of knowing the local language

• Business etiquette– How and when appointments and introductions are

made, if gifts are presented, attending sales banquets and other social/business occasions

Personal Selling

• International selling

– Company sales force travels across countries and meets directly with clients abroad

• Local selling– Company

organizes and staffs a local sales force made up of local nationals to do selling in that country

When a customer is met in person by a representative of the marketing company

Global Account Team

• Global account team – Services a customer in every country in which the customer operates

• Siemen’s teams for Volkswagen & Ford

– Response to centralized purchasing within global firms

– Information technology makes it possible– Price pressures

Bidding Process

1. Search phase – Purchaser utilizes media and business contacts to search for vendors

2. Prequalifying phase – Purchaser requests documentation from potential bidders

3. Formal bids – Bidders provide written statement of how they will solve purchaser’s problem and their price

4. Selection – Purchaser makes choice– Performance bond – A guarantee that the company

will pay certain specified damages if job not completed in accordance with specifications

Consortium Selling

• Consortium – Group of firms that share a certain contract or project on a pre-agreed basis but act as one company toward the customer– Share the risk– Enhance competitiveness of turnkey

projects

Sales Promotion

• Add value to products in order to stimulate consumer purchasing and/or channel cooperation– Coupons, sweepstakes, gifts, reduced-price

labels, free goods, double-pack promotions, in-store displays, slotting allowance

Telemarketing

• Can be used to solicit sales and to offer enhanced customer service to current and potential consumers

Managing Word-of-Mouth

• Cultural differences in product recommendation references– Individualistic cultures versus collectivist

cultures

• Buzz marketing – Marketing activities undertaken to stimulate consumer discussion of the product– Good buzz and bad buzz

Public Relations

• Marketing activities that enhance brand equity by promoting goodwill toward the organization