Chimera Gail O.

Tadina

CBET 17- 408P

Wednesday (7:30-10:30 am)

Product Promotion
Promotion is the process of stimulating demand for a company’s goods
and services. It allows companies to expand into new markets via different
strategies such as the Internet, international distribution and competitive
pricing. The specific approach used, however, will be determined by the nature
of product.

NATURE OF THE PRODUCT

Identical Product, Identical Message- This is when MNE feels that the
product does not need to be changed for it to be sold in other countries.
Therefore, the product remains the same in every country and so does the way
it is promoted.

Example: Smartphones

Identical Product but different message- This is when MNE feels that
the product does not need to be changed for it to be sold in other countries.
However, the message conveyed to the consumers in the advertising and
promotion may differ from country to country.

Example: Coca-Cola, they use different and unique promotional strategy

in different countries to appeal vastly different cultures.

Modified product but same message- With this method, a different

version of the product is produced for different country markets. Despite the
requirements of different markets, the needs of the consumer may be the same.
Therefore, the advertising message is not changed.

Example: Cars sold here in the Philippines are driven on the left side while
in the United Kingdom, it goes on right.

Modified products and modified message- This is adopted when the

way that the product is used in other countries is different and the buying habits
have those consumers are different. The product will need to be altered and so
will the manner in which it is promoted.

Example: Kellogg’s, is an American cereal company and aims to enter the

European market through developing new versions of the cereal. However, many
Europeans do not eat cereal for breakfast, so the promotion campaign is geared
toward changing eating habits rather than getting consumers to switch product
loyalty.

In terms of advertising, MNEs will often prefer to use the same

advertising campaigns worldwide as marketing costs are reduced significantly.
However, there are times when campaigns must be adjusted to suit the local
market.

A lot of consumers are persuaded through personal selling most

especially on industrial products or those products that need to be explained
furtherly. For example, a smartphone company would hire salespeople to
advertise their products through live demonstration of how the smartphone
works. Consumers then can ask questions regarding of the product and may be
assisted when he/she wants to buy the product.