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Transcript of Global Promotion, E-Commerce, and Personal Selling Chapter 17 © 2006 The McGraw-Hill Companies,...
Global Promotion, E-Commerce, and Personal
Selling
Chap
ter
17
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Outline
Global Sales PromotionOther Promotional ToolsDirect MarketingE-commerceGlobal Personal SellingTakeaways.
1. IN-STORE (P-O-P) AND TRADE PROMOTIONS
- - WATCH REGULATORY PROBLEMS (IKEA IN GERMANY)
2. EVENTS AND SPONSORSHIPS
- - GLOBAL COMMUNICATIONS WITH GLOBAL BRAND (FUJI’S OLYMPIC COUP, WINDOWS 95)
3. CROSS-MARKETING
-- MERCHANDISE THAT EXTENDS AND BUILDS THE BRAND
Global Sales Promotion Tools
4. PUBLICITY
- - (BILL GATES AND MICROSOFT, PHIL KNIGHT AND NIKE)
5. PUBLIC RELATIONS
- - (NESTLE’S BABY FORMULA, NIKE’S SWEATSHOPS )
6. INTERNATIONAL TRADE FAIRS
-- (MICROLOG EXAMPLE IN CH.4)
Global Sales Promotion Tools
IN-STORE: promotional activities inside the store
TRADE: promotional activities targeted at channel intermediaries
• In-store promotions are more localized than advertising
• In-store promotions need to be supported by trade promotions
• Different countries/cultures have different attitudes towards coupons
• Different countries have different distribution infrastructures that limit transferability of certain in-store/trade promotions
• Sales promotion needs to be localized because of country-unique restrictions/regulations
In-Store and Trade Promotion
Country
Category
No restrictions or
minor ones
Authorized with major restrictions
General ban with important
exceptions
Almost total
prohibition
Australia Premiums Gifts Competitions
x x
x
Austria Premiums Gifts Competitions
x x
x
Canada Premiums Gifts Competitions
x x
x
Denmark Premiums Gifts Competitions
x
x x
Country Regulations of Promotions
Country
Category
No restrictions or
minor ones
Authorized with major restrictions
General ban with important
exceptions
Almost total
prohibition
France Premiums Gifts
Competitions
x x x
Germany Premiums Gifts
Competitions
x x
x
Hong Kong Premiums Gifts
Competitions
x x x
Japan Premiums Gifts
Competitions
x x x
Country Regulations of Promotions
Country
Category
No restrictions or
minor ones
Authorized with major restrictions
General ban with important
exceptions
Almost total
prohibition
Korea Premiums Gifts
Competitions
x x x
United Kingdom
Premiums Gifts
Competitions
x x
x
United States Premiums Gifts
Competitions
x x x
Venezuela Premiums Gifts
Competitions
x x x
Country Regulations of Promotions
SPONSORSHIPS increase with the advent of global media and global events (e.g. World Cup, Olympics).
Products associate themselves with globally recognized sports figures (e.g. Tiger Woods & Nike)
CROSS-MARKETING of related products leverage a strong brand name into product line extensions (e.g. Burberry’s baby
products)
Sponsorships and Cross-Marketing
• Event marketing
• Cross-marketing
• Product placement
• Cause marketing
• E-commerce
• Pop-up ads
• Banner ads
• Experiential marketing
The New Promotional In-words
Event Marketing: The Introduction of Swatch
Date Country Event
March 1984 Germany 13-ton giant Swatch on Commerzbank building,Frankfurt
April 1984 France “Urban Sax” saxophonist group at the “Eldorado”theater in Paris to celebrate launch, first SwatchMagazine
August 1984 USA Ivan Lendl U.S. Tennis Open
September 1984 USA World Breakdancing Championship:“The Roxy” New York
September 1984 France First street art painting show with the French artists“Les Fréres Ripoulin,” “Espace Cardin” theater, Paris
November 1984 USA The Fat Boys music sponsorship, “Private Eyes,”New York, to introduce “Granita di Frutta” to thetrade
Date Country Event
Summer 1985 Sweden Oestersjö Rallyt (Segel-Rallye)
September 1985 France Cinema festival, Pompidou Center, Paris with Kurosawa's film, Ran; Mini City Magazine
September 1985 France “Le Défilé”: Jean-Paul Gautier & Régine Chopinot
September 1985 England Andrew Logan's Alternative Miss World, London
October 1985 Belgium “Mode et Anti-Mode” fashion show, Brussels
Fall 1985 USA Thompson Twins concert tour sponsorship
November 1985 Spain Swatch launch party, the “Cirque,” Barcelona
Event Marketing: The Introduction of Swatch
PUBLICITY is the publishing of news about the company and its products. Very prominent in hi-tech industries.
GOOD NEWS – wherein positive press coverage enhances consumer interest in the company and its products
BAD NEWS – even negative publicity helps keep the brand name in the public eye (e.g. Benetton), although some may of course damage
brand equity
PRODUCT PLACEMENT – using branded products in film/TV (e.g. BMW Z3 in James Bond’s Goldeneye)
Global Publicity
GLOBAL P.R. – focuses on creating goodwill toward the corporation as a whole. Ha become increasingly important because of anti-
globalization sentiments.
Global PR targets various groups of stakeholders such as:
Stockholders• Employees• Customers• Distributors• Suppliers
• Financial community• Media
• Activist groups• General public• Government
Global Public Relations
Participation in International Trade fairs is a way of identifying potential distributors in a new local market.
At trade fairs, local marketers can introduce a company’s latest products, discover industry trends, & spot new competitive
developments.
Participation involves preparation of product and sales materials, opening a booth, sending a team – plus paying a
sometimes steep fee. Fairs cost money.
International Trade Fairs
• MAIL ORDER – catalogs, sales offers through “snail” mail
• TELEMARKETING – phone calls from companies to households
• DIRECT RESPONSE TV (DRTV) – TV commercials with phone numbers to let viewers call for purchases.
DIRECT MARKETING: an interactive marketing system that uses one or more advertising media to effect a
measurable response and/or transaction at any location.
Direct Marketing
• 1. CATALOG OF PRODUCTS (“STORE”)
• 2. NAMES, ADDRESSES, TELEPHONES, FAXES, EMAILS
• 3. TOLL-FREE NUMBERS (1-800, 1-888)
• 4. CREDIT CARDS
• 5. STANDARDIZED, RELIABLE BRANDS (GLOBAL BRANDS)
Direct Marketing depends on…
1. “DO IT YOURSELF” – the firm develops the market and the necessary contacts on its own, very labor-intensive & costly
2. MARKETING INTERMEDIARY – the firm turns the product over to a direct marketing company specializing in international marketing through a contractual relationship; the intermediary then sets-up the infrastructure & local contacts
3. STRATEGIC ALLIANCE – the firm develops an alliance with a direct marketing company in the local market; this leverages the local company’s existing infrastructure and contacts
Direct Marketing is often outsourced…
E-COMMERCE: buying & selling of goods/services online, a.k.a. online marketing; the online marketplace is naturally global
• Easy and convenient for the customer• Creates a natural on-to-one relationship between buyer and seller• Fosters customer loyalty and increases customer retention rates• Helps the company focus on providing customer value• Lowers costs for buyers and sellers from the pre-purchase stage to the post-purchase stage• Facilitates price comparisons
PROS
E-Commerce Pros
• Can reach only a certain segment, those with desktops and Internet access
• Cannot provide the full tactile experience with the product or the personal interaction in services
• E-commerce needs good electronic communication links
• Customers are put off by computers and technology
• Perceived risks involved can be great
• Without credit cards, e-commerce would be unthinkable
CONS
E-Commerce Cons
• Personal computers (e.g. Dell)
• Books (e.g. Amazon)
• Computer software
• Cameras
• Leisure apparel (e.g. Eddie Bauer)
• Sports equipment
• Compact discs
• Airline tickets
• Tourist packages
• Banking services
• Brokerage services
• Rental cars
• Hotel reservations
SERVICES PRODUCTS
Successful E-Commerce Cases
Successful E-Commerce: B2B
E-commerce has been particularly successful in business-to-business transactions. Reasons:
Many products use standardized components where price is the only concern.
The Internet makes it easy to compare prices – and entry barriers are low for new entrants.
Technology is diffused rapidly so new entrants can access state-of-the-art technology.
Cost pressures inside the corporations force the use of low-cost suppliers.
Culture affects the “people skills” of the global marketer.
Good salesmanship varies across countries.
Personal selling is usually the least global of all marketing activities.
Global Personal Selling
How transferable are selling strategies & techniques? The following are factors that affect transferability:
• DIFFERING HUMAN RELATIONS
(e.g. the role of a salesperson is looked down on by hierarchical cultures)
• DEGREE OF MARKET DEVELOPMENT
(e.g. level of customer sophistication)
• DIFFERING REGULATORY ENVIRONMENTS
(e.g. salesperson costs escalate in countries where fringe benefits are high)
• GEOGRAPHIC & PHYSICAL DIMENSIONS
(e.g. climate, transportation conditions, population density)
Global Personal Selling
Presentations made during a sales visit usually consist of five distinct stages:
1. ATTENTION – get the customer to listen to you
2. INTEREST – get the customer interested in what you have to say
3. DESIRE – get the customer to desire what you are selling
4. CONVICTION – get the buyer convinced that the offer is a good deal
5. ACTION – get the customer’s signature on the contract
In foreign markets, these stages are still valid but the salesperson needs to adapt these stages to the local culture.
Global Personal Selling
PREPARATION GREAT PRODUCT APPEARANCE ENTHUSIASM SELF-CONFIDENCE GREAT CLOSER OF
TRANSACTION
PREPARATION GREAT PRODUCT THE “PERSON” CULTURAL AWARENESS RELATIONSHIP ORIENTED
LOW CONTEXT CULTURES HIGH CONTEXT CULTURES
Culture and Salesmanship
IMC – combining various communication disciplines (e.g. media advertising, direct marketing, sales promotion, internet advertising, &
public relations) to ensure clarity, consistency, & maximum communications impact.
IMC examples:
• Intel in China – distribution of bicycle reflectors
• Citibank in Thailand – credit card agents at malls
• Yonex in Indonesia – badminton team sponsorship
IMC- Integrated Marketing Communications
In addition to media advertising there are now a number of alternative promotional tools for creating global presence &
visibility.
Global marketing communications need to be integrated so a unified image & message is communicated.
Takeaways
The global promoter should be aware that local regulations can make the implementation of a global sales promotional
campaign difficult in any one country. Use local representatives to find out exactly what the limits are.
Takeaways
With advances in the Internet, telecommunications, express mail, address list development, & credit card availability, direct mail is transformed from a simple
promotional tool to a low-risk direct marketing option.
It is a new mode of entering a market, a new way for small businesses to promote and sell its products abroad.
Takeaways
E-commerce is a new medium which combines one-to-one communication & sales transactions. It is growing fast
especially in services & in B2B.
Takeaways
Personal selling may be the last frontier for globalization, with local people necessary for customer contact.
With the globalization of industries & markets, local salespeople will also be part of the front-line service
providers for global customers.
Takeaways