PROMOTION

STRATEGIESAND
ADVERTISING
THEMARKETINGMIX

Targeted Targeted
PRODUCT SPECIFIC SEGMENT PRICE

AWellPositioned
Marketing
Mix

Targeted Targeted
PLACE PROMOTION
INTERNATIONALMARKETING
DILEMMA

versus

Promotion Promotion
Standardization Adaptation
 Events
&
Sponsorships

Advertising Direct Marketing

Integrated
Trade Fairs International Public Relations

Promotion

In-Store
Publicity
Personal Promotions
Selling
PROMOTIONSTANDARDIZATION
ADVANTAGES

Economiesofscope;production
costsavings
Abletospendmoretime,
attentionand$oncampaignitself
Strongbrandingimage,avoid
confusion
Travelers
Viewersofglobalmedia
Internet
Internationalorganizationalbuyers
PRESSURES FOR PROMOTION ADAPTATION
Written and spoken language differences
Differences in symbolic meaning
Differences in humor
Product use and preference differences
Lack of cross-cultural icons
Value and norm differences
Collectivism versus individualism
Government regulation
PUSHVERSUSPULLSTRATEGIES

Pullstrategy
Focusesontheenduserorthebuyer
Dependenceonsalespromotionsandadvertising
Advisablewhenproductiswidelyusedby
consumers,channelislong,productisnot
complex,andwhenselfserviceispredominant
shoppingbehavior
Pushstrategy
Focusesonthedistributorsofaproduct
Incentivesofferedtowholesalersorretailersto
carryandpromoteaproduct
Mayresorttopushwhenthereisalackof
advertisingmediaordifficultytransferringfirms
pullstrategyinforeignmarkets
HINDUFESTIVALATTRACTSU.S.
MARKETERS
KumbhMelafestivaldraws30
millionparticipants,manyfromsmall
towns
Westernbrandspromoteproducts
Samples,billboardandposteradvertising,
andothersalespromotions
Encourageproducttrial
Inciteswordofmouth

Commercializationofancient
tradition?
Economicimperialism?
PERSONALSELLING

Whenacustomerismetinpersonbya
representativeofthemarketingcompany
Internationalselling Localselling
Companysalesforce Companyorganizes
travelsacross andstaffsalocal
countriesandmeets salesforcemadeup
directlywithclients oflocalnationalsto
abroad dosellinginthat
country
INTERNATIONALSELLING
Purchasingbehaviorcanvary
countrytocountry

Initiator
Initiator User
User
Decision
Maker
Gatekeeper
Gatekeeper
Influencer
Influencer

Buyer
Buyer Whoisthebuyingunit?
Whatroledoeseachplay
inthedecisionmaking
process?
INTERNATIONALSELLING(CONTD)

Buyingcriteria
Howproducts/vendorsareselectedmayvary
markettomarket
Language
Importanceofknowingthelocallanguage
Businessetiquette
Howandwhenappointmentsandintroductions
aremade,ifgiftsarepresented,attendingsales
banquetsandothersocial/businessoccasions
INTERNATIONALSALES
NEGOTIATIONS
Negotiationstyle
Japaneseleastaggressive
FrenchandBraziliansmostaggressive
Russiazerosumgame

Timeorientation
LongerinChinaversusU.S.andEurope
Attitudetowardfinalcontract
U.S.getitinwritingculture
LOCALSELLING
Roleoflocalsalesforce
MissionarysalesforceVisitingclients
togetherwithlocaldistributorssalesforce
CompanyownedsalesforceCompanysales
forceensurespersonnelhaverighttrainingand
qualificationsanduniformpricenegotiations
Foreignsalespractices
Natureoftheinteractionbetweensalespeople
andlocalcustomercanbedifferentmarketto
market
Bausch&LombinJapan
LOCALSELLING(CONTD)

Recruitment
Scarcityofskilledpersonnel
Differencesinprestigeofsalespositionsin
differentcultures
Compensation
Salespeoplefromdifferentculturesmay
respondtomotivationprogramsinthesame
way
Rewardingvolume,consistency,straightsalary,etc.
WHATMAKESAGREAT
SALESPERSON?
HIGHCONTEXT
LOWCONTEXT
LOWCONTEXT
HIGHCONTEXT
Preparation

Preparation
Greatproduct

Greatproduct
Theperson
Appearance
Appearance
Theperson
Culturalawareness
Enthusiasm
Enthusiasm
Culturalawareness
Relationshiporiented
Selfconfidence
Selfconfidence
Relationshiporiented
Greatcloser

Greatcloser
GLOBALACCOUNTTEAM
GlobalaccountteamServicesacustomerin
everycountryinwhichthecustomeroperates
SiemensteamsforVolkswagen&Ford

Responsetocentralizedpurchasingwithinglobal
firms
Informationtechnologymakesitpossible
Pricepressures
INTERNATIONALTRADEFAIRS
Idealforexposingnewcustomersand
potentialdistributorstoacompanys
productrange
VeryimportantforB2Bsalesinmarkets
withunderdevelopedmediachannels
600tradeshowsin70countrieseachyear
CologneTradeFair
HanoverFair
SELLINGTOBUSINESSAND
GOVERNMENT
BIDDINGPROCESS
1. SearchphasePurchaserutilizesmedia
andbusinesscontactstosearchforvendors
2. PrequalifyingphasePurchaserrequests
documentationfrompotentialbidders
3. FormalbidsBiddersprovidewritten
statementofhowtheywillsolvepurchasers
problemandtheirprice
4. SelectionPurchasermakeschoice
PerformancebondAguaranteethatthe
companywillpaycertainspecifieddamagesifjob
notcompletedinaccordancewithspecifications
CONSORTIUMSELLING
ConsortiumGroupoffirmsthatsharea
certaincontractorprojectonapreagreedbasis
butactasonecompanytowardthecustomer
Sharetherisk
Enhancecompetitivenessofturnkeyprojects
SALESPROMOTION
Addvaluetoproductsinordertostimulate
consumerpurchasingand/orchannelcooperation
Coupons,sweepstakes,gifts,reducedpricelabels,
freegoods,doublepackpromotions,instoredisplays,
slottingallowance
SALESPROMOTION(CONTD)

Countrytocountrydifferencesexist
Culturalnorms
Taiwaneseconsumersprefercouponstosweepstakes;
MalaysiansandThaisprefersweepstakestocoupons
Governmentrestrictionsandregulations
Japanslimitationonvalueofpromotionalgifts
attachedtoproductsisofthe10%productsprice
SPORTSPROMOTIONSAND
SPONSORSHIPS

Sportseventsincreasingly
coveredbyglobalmedia
Olympics,WorldCup
Signspace
Musthavelogoorbrandworth
exposingtoglobalaudience
Takeintoconsiderationpopularity
ofcertainsportsandthesegments
theyattract
OLYMPICSVERSUSTHEWORLDCUP

SoccerisfavoriteTVsportin24outof34
countriessurveyedbyIpsosReid
Corporation
250millionregisteredsoccerplayersand1
billionspectatorsworldwide
WorldCupsponsorsgetgooddeal!
Pay$20million$50million
GetrightstoWorldCupmarks,behindthe
scenesaccess,2onfieldadboardsin20
stadiums
Yearlongrunuptoevent
TELEMARKETING
Canbeusedtosolicitsalesandtooffer
enhancedcustomerservicetocurrentand
potentialconsumers
Efficienttelephonesystemrequired
Telephonenumbersmustbeeasytoobtain
phonebooksdontexistineverycountry!
Governmentrestrictionsandregulations
MANAGINGWORDOFMOUTH
Culturaldifferencesinproductrecommendation
references
Individualisticculturesversuscollectivistcultures

BuzzmarketingMarketingactivities
undertakentostimulateconsumerdiscussionof
theproduct
Goodbuzzandbadbuzz
PUBLICRELATIONS
Marketingactivitiesthatenhancebrandequity
bypromotinggoodwilltowardtheorganization
Maybenecessarytodefendbrandagainstbad
publicity
PRcampaignscangowrongifnotmanagedcorrectly
PhilipMorrisinCzechRepublic
Nestlsbabyformulaindevelopingcountries
GROWINGIMPORTANCEOF
PROMOTIONSINDEVELOPING
COUNTRIES
Shiftfrommasstotargetmarketing
Nooneseverspokentothempersonally
before.
Roleofcollectivism
Localpartners
Message
Appropriateadaptation
TalktosomeoneaboutatriptoTahitiandyou
maylosethem.Buttalkaboutsupermarket
couponsforgroceriesandaTVorstereo,then
youvegotmoreattention.
DUNKINDONUTSLOVE
CAMPAIGNINTHAILAND
MothersDaycampaign
GoodculturalfitwithThaiimportanceon
family,QueenMother,etc.
Integratedpromotioncampaign
Instorepromotions
Salespromotionandpackaging
Publicrelations
Publicity
Verysuccessful!
AXE&DUREXCOBRANDED
CAMPAIGNINTHAILAND
Axeispositionedasasexybrand;cobrandswith
condommanufacturer
Integratedpromotioncampaign
Premium
Packaginginserts
Flyers
Advertisements
 PROMOTIONAL
STRATEGIES
IN INTERNATIONAL
MARKETING
 INTERNATIONAL
COMMUNICATION
PROCESS
 INTERNATIONAL
PROMOTIONAL MIX
1. ADVERTISING
A non personal communication by an identified
sponsor across international borders, using broadcast,
print or interactive media.
Various international formats, features and trends:
oPosters on kiosks & fences
oAdvertising on sides of private homes
oAdvertising on plastic shopping bags
oAdvertising on outside umbrellas
oBillboards

The primary goal of advertising is to effectively

communicate with the target audience. The International
Advertising Association (IAA) is a unique strategic
institution that addresses the common interests of all
disciplines across full spectrum of marketing.
2. SALES FORCE MANAGEMENT
Sales force management systems are practical
actions which sales managers can take direct,
influence and control sales staff & are examined
together with implementation issues such as sales
force recruitment and selection, sales training,
motivation & reward.

Types:
Territorial sales force structure

Product sales force structure

Customer sales force structure

Complex sales force structure

 3. SALES PROMOTION
Sales promotion is any initiative
undertaken by an organisation to promote an
increase in sales, usage or trial of a product or
service i.e., it includes several communication
activities that attempt to provide added value or
incentives to retailers, consumers, wholesalers
or other organisational customers to stimulate
immediate sales.
Sales promotions can be:
i. Consumer sales promotion
ii. Trade sales promotion
Sales promotion are varied:
oFree gifts

oDiscounted price

oFree samples

oPoint-of-purchase(POP) displays etc.

 4. PUBLIC RELATIONS
Public relations is a strategic communication
process that builds mutually beneficial relationships
between organisations and their publics.- Edward
Bernays
A fundamental technique used in public relations is to
identify the target audience and to tailor message to
be relevant to each audience.
Tools of public relation:
News , Speeches
Special events, public service activities
Written materials, audio-visual materials
Buzz marketing, mobile marketing, company website
CLASSIC EXAMPLE OF WAL-MART
WalMart is one of the biggest companies in the world

that has over 8,500 stores in 15 different countries with

55 different company names. They are also considered

thebiggestretailerintheworld.

ThefirstthinganyonenoticeswhengoingintoaWalMartis

theincrediblylowpricestheyoffertheirproductsfor.Thisin

itselfhelpswiththeirmarketingstrategybecauseeveryoneis

alwayslookingforthelowestpriceanditcanusuallybefound

atWalMart.

SocialMediaCampaigns

AppealtoAsManyPeopleasPossible

EasilyAccessible
INTERNATIONAL
ADVERTISING
AND
PROMOTIONS
REASONSFORTHEIMPORTANCE
OFINTERNATIONALMARKETS
1. Domesticmarketsformanyproductsand
servicesarestagnant.
2. Manycompaniesrelyonforeignmarketsto
survive.
3. Internationalmarketsoffergrowth
opportunitiesformanycompanies.
4. Competitionhasbecomeglobalandmarketers
mustbeabletocompeteglobally.
INTERNATIONALADVERTISING
1. AdvertisingexpendituresoutsidetheU.Sare
growingmorerapidlythaninside.
2. Everycountryintheworldhasadvertisingin
oneformoranother.
3. Themorewealthythecountry,themoremonies
spentonadvertising.
 THEINTERNATIONAL
ENVIRONMENT
Economic
Environmen
t

Political/Leg International
Demographic
al Advertising
Environment
Environment And
PromotionalDecisions

Cultural
Environmen
t
ECONOMICENVIRONMENT
1. Stageofeconomicdevelopment
2. Economicinfrastructure
3. Standardofliving
4. Percapitaincome
5. Distributionofwealth
6. Currencystability
7. Exchangerates
DEMOGRAPHICENVIRONMENT
1. Sizeofpopulation
2. Numberofhouseholds
3. Agedistribution
4. Occupationdistribution
5. Educationlevels
6. Employmentrates
7. Incomelevels
CULTURALENVIRONMENT
1. Language
2. Lifestyle
3. Values
4. Normsandcustoms
5. Ethicsandmoralstandards
6. Taboos
POLITICAL/LEGALENVIRONMENT
1. Governmentpolicies
2. Lawsandregulations
3. Politicalstability
4. Nationalism
5. Attitudetowardmultinationals
GLOBALMARKETINGAND
ADVERTISINGADVANTAGES
1. Economiesofscaleinproductionand
distribution
2. Lowercostswithlessinplanningandcontrol
3. Loweradvertisingandproductioncosts
4. Abilitytoexploitgoodideasworldwide
5. Abilitytointroduceproductsquickly,
worldwide
6. Consistentinternationalbrand,company
identity
7. Simplificationofcoordinationandcontrol
WHENISGLOBALIZATION
APPROPRIATE?

1. Brands can be adopted for a visual appeal, avoiding the problems of

trying to translate words into different languages

2. Brands that are promoted with image campaigns that play to universal

appeals such as sex or wealth

3. High-tech products and new products coming to the world for the first

time, not steeped in cultural heritage of the country

4. Products with a nationalistic flavor if the country has a reputation in the

field

5. Products that appeal to a market segment with universally similar tastes,

interests, needs, and values

GLOBALPRODUCTS,LOCAL
MESSAGES
1. Aninbetweenapproach:
Standardizingproducts.
Localizingadvertisingmessages

Thinkglobally,actlocally

2. Adaptmessagestorespondtodifferencesin
language,cultural,andmarketconditions.
Patternadvertising
DECISIONAREASIN
INTERNATIONALADVERTISING

1. Organization
2. AgencySelection
3. Advertisingandmarketresearch
4. CreativeDecisions
5. MediaSelection
6. CoordinationofotherIMCtools
FOREIGNLOCALAGENCIES
1. Staffedwithlocaltalentwhounderstandlocal
attitudes,culture,media,andcondition.
2. Especiallyeffectiveforlaunchingconsumer
productsinasingle,newgeographicarea.
3. Posessomeproblemsifaproductistobe
launchedinmultiple,local,foreignmarkets
CRITERIAFORSELECTINGANAGENCY
FORINTERNATIONALADVERTISING

1. Abilityofagencytocoverrelevantmarkets
2. Qualityofagencywork
3. Marketresearch,PR,andotherservicesoffered
4. Rolesofcompanyadvertisingdepartmentandagency
5. Levelofcommunicationandcontroldesired
6. Abilityofagencytocoordinateinternationally
7. Sizeofcompanysinternationalbusiness
8. Companysdesireforlocalvs.internationalimage
9. Companyorganizationalstructure
Centralizedvs.decentralized
10. Companylevelofinvolvementwithinternational
operations
ADVERTISINGANDMARKET
RESEARCHAREAS

1. Informationondemographiccharacteristicsof
markets
2. Informationonculturaldifferencessuchasnorms,
lifestylesandvalues
3. Informationonconsumersproductusage,brand
attitudes,andmediapreferences
4. Informationonmediausageandaudiencesize
5. Copytestingtodeterminereactionstodifferenttypes
ofadvertisingappealsandexecutions
6. Researchontheeffectivenessofadvertisingand
promotionalprogramsinforeignmarkets
CREATIVEDECISIONS
Creativedecisionsinvolvedetermining
theappropriateadvertisingmessagefor
eachmarketandaresimilarinprocess
andproceduretothosefordomestic
advertising.

1. Creativedecisionsshouldbebasedonadvertisingand
communicationobjectives
2. Copyplatformsmustbedevelopedthatincludemajor
sellingideas
3. Specificappealsandexecutionstylesmustbeselected
4. Appealsmayhavetobeadaptedforlocalmarket
conditions
MEDIASELECTIONDECISIONS

1. Mediadifferinvariouscountrieswithrespect
tofactorssuchas:
availability
cost
usage
quality
restrictions

2.Mediaoptionsincludeuseoflocal,nationalor
internationalmedia
COMMERCIALSSHOWNPERHOUR
INVARIOUSCOUNTRIES
DEVELOPINGSALES
PROMOTIONPROGRAMSIN
FOREIGNMARKETS

1. Economicdevelopment
2. Marketmaturity
3. Consumerperceptions
4. Tradestructure
5. Regulations
ROLEOFPUBLICRELATIONSIN
GLOBALMARKETING
1. Dealwithlocalgovernments,media,trade
associationsandthegeneralpublic
2. Presentthecompanyasagoodcorporate
citizen
3. ServeaspartoftheIMCprogramandhelp
markettheproductorservice
4. Dealwithspecificissuesandproblemsthe
companymayfaceinforeignmarkets