introduc)on* global marketing - deu.edu.trkisi.deu.edu.tr/sumeyra.kurt/bus...

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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


Global Marketing


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

Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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


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


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

14-‐9 Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

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


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


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



•  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



•  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 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


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


Nego)a)on

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•  Ensures that both the customer and the salesperson come away from the presenta)on winners


Close

•  Ask for the sale •  Must be culturally sensi)ve


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


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


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


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


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


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


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

introduc)on* global marketing - deu.edu.trkisi.deu.edu.tr/sumeyra.kurt/bus...

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