1. Global Promotion Strategies14
Global Promotion Strategies

2. Learning Objectives
List the major factors that determine a firm’s ability to use a push or a pull promotion strategy in different national markets.
Contrast the benefits to the international marketer of using an international sales force with those of using local sales forces.
Describe the impact that different purchasing behaviors, buying criteria, languages, and negotiation styles can have on international selling.
Explain the importance of global account management.
Describe how global marketers can successfully utilize international trade fairs and consortia as well as manage the international bidding process.
Cite examples of how sales promotions vary across cultures, and suggest reasons for these differences.
Note recent international trends in sales promotions, sports sponsorships, telemarketing, product placement, and managing word-of-mouth.
Give examples of international public relations disasters and suggest ways by which global marketers can promote the goodwill of their firms.

3. Chapter Outline Global promotion strategies Personal selling
Global account management
Selling to businesses and governments
Other forms of promotion
Public relations 3

4. Push versus Pull Strategies
Pull strategy
Focuses on the end-user or the buyer
Dependence on sales promotions and advertising
Advisable when product is widely used by consumers, channel is long, product is not complex, and when self-service is predominant shopping behavior
Push strategy
Focuses on the distributors of a product
Incentives offered to wholesalers or retailers to carry and promote a product
May resort to push when there is a lack of advertising media or difficulty transferring firm’s pull strategy in foreign markets 4

5. International Selling (cont.)
Buying criteria
How products/vendors are selected may vary market to market
Language
Importance of knowing the local language
Business etiquette
How and when appointments and introductions are made, if gifts are presented, attending sales banquets and other social/business occasions 5

6. Personal Selling
When a customer is met in person by a representative of the marketing company
International selling
Company sales force travels across countries and meets directly with clients abroad
Local selling
Company organizes and staffs a local sales force made up of local nationals to do selling in that country 6 6

7. Global Account Team
Global account team – Services a customer in every country in which the customer operates
Siemen’s teams for Volkswagen & Ford
Response to centralized purchasing within global firms
Information technology makes it possible
Price pressures 7

8. Bidding Process
Search phase – Purchaser utilizes media and business contacts to search for vendors
Prequalifying phase – Purchaser requests documentation from potential bidders
Formal bids – Bidders provide written statement of how they will solve purchaser’s problem and their price
Selection – Purchaser makes choice
Performance bond – A guarantee that the company will pay certain specified damages if job not completed in accordance with specifications 8

9. Consortium Selling
Consortium – Group of firms that share a certain contract or project on a pre-agreed basis but act as one company toward the customer
Share the risk
Enhance competitiveness of turnkey projects 9

10. Sales Promotion
Add value to products in order to stimulate consumer purchasing and/or channel cooperation
Coupons, sweepstakes, gifts, reduced-price labels, free goods, double-pack promotions, in-store displays, slotting allowance 10

11. Telemarketing
Can be used to solicit sales and to offer enhanced customer service to current and potential consumers 11

12. Managing Word-of-Mouth
Cultural differences in product recommendation references
Individualistic cultures versus collectivist cultures
Buzz marketing – Marketing activities undertaken to stimulate consumer discussion of the product
Good buzz and bad buzz 12

13. Public Relations
Marketing activities that enhance brand equity by promoting goodwill toward the organization 13