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Global Marketing
Warren J. Keegan Mark C. Green
Global Marketing Communications
Decisions II: Advertising and Public Relations
Chapter 14 Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
Global Marketing
Warren J. Keegan Mark C. Green
Global Marketing
Warren J. Keegan Mark C. Green
Global Marketing Communications
Decisions II: Advertising and Public Relations
Chapter 14 Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
Introduc)on
• In addi)on to adver)sing, publicity and PR, the promo)on
mix includes: – Sponsorships – Sales promo)on – Direct marke)ng – Personal selling – Internet – Infomercials
14-‐2 2010 Shanghai World Expo Park
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Learning Objec)ves
• Define sales promo)on and focus on tac)cs and tools used by global marketers
• List the steps in the strategic/consulta)ve selling model
• Understand the con)ngency factors in developing a global sales force
• Explore direct marke)ng • Look at special forms of marke)ng communica)on
Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
Sales Promo)on
• Sales promo)on refers to any paid consumer or trade communica)on program of limited dura)on that adds tangible value to a product or brand – Price vs. non-‐price promo)ons – Consumer vs. trade promo)ons
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Sales Promo)on
• Provide a tangible incen)ve to buyers
• Reduce the perceived risk associated with purchasing a product
• Provide accountability for communica)ons ac)vity
• Provide method of collec)ng addi)onal data for database
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Home and Garden shows aQract homeowners Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
Sales Promo)on: Global or Local
• In countries with low levels of economic development, low incomes limit the range of promo)onal tools available
• Market maturity can also be different from country to country • Local percep)ons of a par)cular promo)onal tool or program
can vary • Local regula)ons may rule out use of a par)cular promo)on
in certain countries • Trade structure in the retailing industry can affect the use of
sales promo)ons
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Sampling
• Kikkoman soy sauce launched a sampling program in supermarkets in the U.S.; today the U.S. contributes 85% of profit from interna)onal opera)ons 14-‐7
• Sampling – Provides consumer with opportunity to try product at no cost – May be distributed in stores, in the mail, through print media, at events, or door-‐to-‐door
Wine tas)ng in South Africa
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Couponing
• Couponing accounts for 70% of consumer promo)on spending in the U.S.
• Free-‐standing inserts, in-‐pack, on-‐pack, cross coupons
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• Couponing – Printed cer)ficates en)tle the bearer to a price reduc)on or some other special considera)on for purchasing a par)cular product
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Social Couponing
• Hot online trend • Groupon is industry leader
– Deals are made with local retailers with Groupon taking a percentage of proceeds
– Grown from 1 country to 35 mainly through acquisi)on
– 40 million users in 300 global markets by 2010 – Over 50% of users are in Europe, 33% in U.S. – Founders rejected Google’s $6 billion takeover offer
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Couponing
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Sales Promo)on: Issues and Problems
• Fraud – Pepsi promo)on with Apple
• Regula)ons vary by country • Cultural disposi)ons to coupons and other sales promo)ons – Malaysians see coupon usage as embarrassing – Islam frowns on gambling so sweepstakes may not work
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Personal Selling
• Person-‐to-‐person communica)on between a company representa)ve and a prospec)ve buyer
• Focus is to inform and persuade prospect • Short-‐term goal: make a sale • Long-‐term goal: build a rela)onship
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Personal Selling Hurdles • Poli)cal Risks – unstable or corrupt governments change the rules for the sales team
• Regulatory Hurdles – Governments can set up quotas or tariffs that affect the sales force
• Currency Fluctua)ons – increase and decrease in local currencies can make certain products unaffordable
• Market Unknowns – lack of knowledge of market condi)ons, the accepted way of doing business, or posi)oning of the product may derail the sales team’s efforts
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The Strategic/Consulta)ve Selling Model
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Evolved in response to:
• Increased competition
• More complex products
• More emphasis on customer needs
• Long-term relationships
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The Strategic/Consulta)ve Selling Model
• Personal Selling Philosophy – commitment to the marke)ng concept and a willingness to adopt the role of problem solver/partner
• Rela)onship Strategy – game plan for establishing and maintaining high-‐quality rela)onships with prospects/customers
• Product Strategy – plan that can assist the sales representa)ve in selec)ng and posi)oning products to sa)sfy customer needs
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The Strategic/Consulta)ve Selling Model
• Customer Strategy – plan that ensures that the sales professional will be maximally responsive to customer needs
• Presenta)on Strategy – consists of sefng objec)ves for each sales call and establishing a presenta)on plan to meet those objec)ves
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The Strategic/Consulta)ve Selling Model
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The Presenta)on Plan
• Approach • Presenta)on • Demonstra)on • Nego)a)on • Close • Servicing the sale
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Approach
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• Ini)al contact with the customer/prospect
• Must completely understand the decision-‐making process and the roles of each par)cipant
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Presenta)on
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• Prospect’s needs are assessed and matched to the company’s products
• The style and message of the presenta)on must be tailored to the audience
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Demonstra)on
• Salesperson has the opportunity to tailor the communica)on effort to the customer
• Can show how the product can meet the customer’s needs
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Nego)a)on
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• Ensures that both the customer and the salesperson come away from the presenta)on winners
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Close
• Ask for the sale • Must be culturally sensi)ve
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Servicing the Sale
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• To ensure customer sa)sfac)on – Implementa)on process must be outlined
– Customer service program established
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Sales Force Na)onality
• Expatriates • Host-‐country na)onals • Third-‐country na)onals • Other op)ons
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Expatriates • Advantages
– Superior product knowledge
– Demonstrated commitment to service standards
– Train for promo)on – Greater HQ control
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• Disadvantages – Higher cost – Higher turnover – Cost for language and cross-‐cultural training
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Host-‐Country Na)onals
• Advantages – Economical – Superior market knowledge – Language skills – Superior cultural knowledge – Fast implementa)on
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• Disadvantages – Needs product training
– May be held in low esteem
– Language skills may not be important
– Difficult to ensure loyalty
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Third-‐Country Na)onals
• Advantages – Cultural sensi)vity – Language skills – Economical – Allows regional sales coverage
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• Disadvantages – May face iden)fica)on problems
– May be blocked for promo)ons
– Income gaps – Needs product and/or company training
– Loyalty not assured
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Other Op)ons
• Sales agents • Exclusive license arrangements • Contract manufacturing or produc)on • Management-‐only agreements • Joint ventures
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Special Forms of Marke)ng Communica)ons
• Direct Marke)ng – Direct mail – Catalogs – Infomercials, teleshopping
• Event Sponsorship – Concerts, spor)ng events – Product placement in movies
• Internet Communica)ons
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Direct Marke)ng
• Any communica)on with a consumer or business recipient that is designed to generate a response in the form of: – An order – Request for further informa)on – A visit to a store or other place of business
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Direct Marke)ng— Going Global
• The world is full of people who are not Americans. Be sure not to treat them like they are.
• Like poli)cs, all marke)ng is local. Just because your direct mail campaign worked in Texas, do not assume it will work in Toronto.
• Although there may be a European Union, there is no such thing as a "European."
• Pick your target, focus on one country, and do your homework.
• Customers need to be able to return products locally or at least believe there are services available in their country.
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Direct Marke)ng vs. Mass Marke)ng
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One-‐to-‐One Marke)ng
• Building from Customer Rela)onship Management – Iden)fy customers and accumulate detailed informa)on about them
– Differen)ate customers and rank them in terms of their value to the company
– Interact with customers and develop more cost efficient and effec)ve forms of interac)on
– Customize the product/service offered to the customer
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Catalogs
German supermodel Yvonne CaQerfeld with OQo Catalog
• Catalog: magazine-‐style publica)on that features photographs, illustra)ons, and extensive informa)on about a company’s products • U.S. 1/3 of world market, 17 billion mailed in 2008 • EU: Elimina)on of barriers has led to a boom • Hong Kong and Singapore have efficient postal systems and highly educated consumers with credit cards Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
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Infomercials and Teleshopping
• An infomercial is a form of paid TV in which a par)cular product is demonstrated, explained, and offered for sale to viewers who call a toll-‐free number on the screen
• Teleshopping on channels like HSN and QVC is exclusively devoted to demonstra)on and selling
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Interac)ve Television
• ITV allows viewers to interact with the programming content they are viewing
• In the U.K., more than half of pay-‐TV subscribers use ITV
• Remote controls have buQons to push to order products shown on screen
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Expenditures for Outdoor Adver)sing as a Percentage of Total Ad Spending
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Sponsorships
• A company pays a fee to be associated with an event, team, athle)c associa)on, or sports facility
• Combines elements of PR and sales promo)on • Draws media aQen)on
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Product Placement
• Arranging to have the company’s products and brand names appear in TV shows, movies, and other types of entertainment
• Marketers also lend or donate products to celebri)es and other public figures
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Looking Ahead to Chapter 15
• Strategic Elements of Compe))ve Advantage