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Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
16
Global Promotion,
E-Commerce, and
Personal Selling
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Sales Promotion

In-Store and Trade Promotions

Sales promotion needs to be localized because its use is often more
rigidly regulated than advertising

In-store or point-of-purchase promotions refer to promotional activities
inside the store

Trade promotions are targeted at channel intermediaries
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Sales Promotion

In-Store and Trade Promotions

Cooperation from the Trade
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
Attitudes Toward Coupons

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Retailers need to handle promotions such as coupons professionally
Limited Capability


In-store promotions need to be supported by trade promotions
Since distribution infrastructure is often different between countries, some
promotions may simply not be feasible
Presold Customers

In-store promotions work best when the consumer expects to make
choices in the store
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Sales Promotion


Sponsorships

With the advent of global media, the possibilities for global
sponsorships are increasing

As markets have become more saturated and many products have
reached maturity, more companies have been turning to sponsorships
to more effectively segment the market
Cross-Marketing

The cross-marketing of related products from successful events
represents one of the many tactics used by the globally successful
American companies
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Publicity

Publicity

Publicity is more credible than paid advertising


Publicity requires some management and can be labor-intensive


There is no need to pay for air time or press coverage
The preparation of press releases requires skill especially when the
information is about a technical breakthrough
Even “negative” publicity can have its rewards

It serves to keep the brand name in the public eye
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Publicity

Product Placement

Product placement refers to the use of branded products in films and
television

Product placement involves


Contracting with producers about using the branded product as a natural
prop in the film or TV program
The use of product placement has be stimulated largely by

The global success of American entertainment vehicles

Ensuring wide exposure across the world
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Public Relations

Global Public Relations

A form of indirect promotion of products and services that focuses on
creating goodwill toward the corporation as a whole

One job of the public relations staff is to make sure that potential
company image conflicts do not erupt and, when they do, to carry out
“damage control”


Damage control refers to actions taken to limit the spillover of the firm’s
image into a negative public opinion
Cause Marketing

Refers to the activities by which a company will try to associate itself
with a worthy societal cause
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
International Trade Fairs

International Trade Fairs


Participation in international trade fairs

Can identify potential distributors in a new local market

May serve as the chance to for the firm to:

Introduce a company’s latest products and models

Discover industry trends

Spot new competitive developments
For the global marketer,

Trade fairs are an excellent promotional avenue

Participation enhances and sustains visibility and local presence
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Direct Marketing

Direct Marketing

An interactive marketing system that uses advertising media to effect
a measurable response and/or transaction at any location

The traditional direct marketing medium is mail order

In recent years telemarketing, has grown fast in the U.S. and so has
direct response television

Direct marketing is growing rapidly, because it is fast, safe,
convenient, low-cost and eliminates the job of going to the store
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Direct Marketing

Regional Developments

Direct marketing opportunities in mail order

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Latin America


Boosted by the recent privatization of many postal services around the
world
An area where direct marketing possibilities are opening up as a result of
improve infrastructure
Japan

Has become a natural target for direct marketers, with its high per capita
income, well-developed post and telecommunications, and complex
distribution system
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Direct Marketing

Global Strategy

Three ways of implementing a global strategy

“Do it yourself”
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Marketing intermediary

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A second way is to turn the product over to a direct marketing company
specializing in international marketing and let it act as a general contractor
Strategic alliance

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The most obvious method is the company developing the market and the
necessary contacts on its own
A third option is to develop a strategic alliance with a direct marketing
company in the local market
To date, selecting the marketing intermediary seems to be the method
chosen most often by smaller companies
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Electronic Commerce
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
Electronic Commerce

Refers to buying and selling goods and services online

Electronic commerce generally refers to the “exchange” between a
provider and a customer using electronic communications
Market Growth

All indications are the World Wide Web marketplace will continue to
grow by leaps and bounds
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Electronic Commerce

Marketing Strengths and Weaknesses

Marketing strengths of electronic commerce

Easy and convenient for the customer to do business with the
vendor

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 in the whole process from the
prepurchase stage to the postpurchase stage

Facilitates price comparisons
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Electronic Commerce

Marketing Strengths and Weaknesses

Marketing weaknesses of electronic commerce

It can reach only a certain segment of the total market, those with
desktops and Internet access

It cannot yet provide the full tactile experience with the product or the
personal interaction in services

For effective implementation, electronic commerce needs good electronic
communication links

Many customers are put off by computer and technology

The perceived risks involved can be great

Without credit cards, electronic commerce would be unthinkable
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Electronic Commerce

Promoting the Site

The Web home page


Specialized software developers


The first screen image that pops up when a user accesses a particular
company site
Design the home page for companies and also maintain and update the
site for a fee
E-commerce on the Internet is necessarily a global effort
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Personal Selling

Managing a Sales Force

When the company is simply an exporter using in independent
distributors, management of the sales force is not an issue

Establishing the company’s own sales force in a foreign country
requires faith in the market and considerable resources

Where personal selling is used primarily to sell to middlemen and
large customers, the practice is often to hire some of the people who
used to work for the distributor in order to avoid high start-up costs
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Personal Selling

Managing a Sales Force

Factors affecting the transferability of selling strategies

Geographic and physical dimensions
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Degree of market development
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In countries where customers are sophisticated and demanding, in-depth
training and specialization of the sales force are both necessary and possible
Differing regulatory environments


The geographical spread of a country and roadways and transportation
conditions are factors in determining the size of the sales territories
In some countries where fringe benefits may be high, the cost for a
salesperson will escalate
Differing human relations

In many societies the job of a salesperson is looked down on as relatively
unworthy
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Personal Selling

Personal Salesmanship

Characteristics of good salesmanship

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Enthusiasm, self-confidence, and appearance
Representing the Country

The standard approach to preparing for a sales call should be
augmented abroad by a wider definition of the “customer’s needs”

The biggest mistake for the individually oriented salesperson is to let
enthusiasm and self-confidence place ego in the way of the company
and the product
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Personal Selling

The Presentation

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Five stages of the presentation process
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Stage 1—Attention. Get the customer to listen to you
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Stage 2—Interest. Get the customer interested in what you have to say
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Stage 3—Desire. Get the customer to desire what you are selling

Stage 4—Conviction. Convince the buyer that the offer is a good deal

Stage 5—Action. Get the customer’s signature on the contract
Be Prepared!

There is no shortcut to effective sales presentation abroad

The most fundamental building block is the process of preparation
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Global Personal Selling

Handling Objections is a difficult task in any sales presentation


This is more so in global settings where communications are more easily
garbled
Closing Tactics

When closing is seemingly within reach

Some person with intimate knowledge of the country’s customs should be
present to assist the salesperson

Global personal selling has to be localized and adapted with sensitivity,
persistence, preparation, and a good product
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Integrated Marketing Communications

Integrated Marketing Communications (IMC)

The IMC concept stresses the need to combine the various
communication disciplines


The IMC concept is difficult to implement globally


This ensures clarity, consistency, and maximum communications impact
It enlarges the number of communication functions that need to be
coordinated
IMC forces adverting and promotional specialists to “think outside the
box”
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.