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Chapter14

GlobalMarketingDecisions:SalesPromotion,PersonalSelling,SpecialFormsofMarketingCommunicationPowerPointbyKristopherBlanchardNorthCentralUniversity14-1SalesPromotionSalespromotionreferstoanypaidconsumerortradecommunicationprogramoflimiteddurationthataddstangiblevaluetoaproductorbrandPricevs.non-pricepromotionsConsumervs.tradepromotions2SalesPromotionProvideatangibleincentivetobuyersReducetheperceivedriskassociatedwithpurchasingaproductProvideaccountabilityforcommunicationsactivityProvidemethodofcollectingadditionaldatafordatabase3SalesPromotion:GlobalorLocalIncountrieswithlowlevelsofeconomicdevelopment,lowincomeslimittherangeofpromotionaltoolsavailableMarketmaturitycanalsobedifferentfromcountrytocountryLocalperceptionsofaparticularpromotionaltoolorprogramcanvaryLocalregulationsmayruleoutuseofaparticularpromotionincertaincountriesTradestructureintheretailingindustrycanaffecttheuseofsalespromotions.4SamplingSamplingProvidesconsumerwithopportunitytotryproductatnocostMaybedistributedinstores,inthemail,throughprintmedia,atevents,ordoor-to-door5CouponingCouponingPrintedcertificatesentitlethebearertoapricereductionorsomeotherspecialconsiderationforpurchasingaparticularproductCouponingaccountsfor70%ofconsumerpromotionspendingintheUS6Couponing7SalesPromotion:IssuesandProblemsFraudPepsipromotionwithAppleRegulationsvarybycountryCulturaldispositionstocouponsandothersalespromotionsMalaysiansseecouponusageasembarrassingIslamfrownsongamblingsosweepstakesmaynotwork8PersonalSellingPerson-to-personcommunicationbetweenacompanyrepresentativeandpotentialbuyersFocusistoinformandpersuadeprospectShort-termgoal:makeasaleLong-termgoal:buildrelationship9PersonalSellingHurdlesPoliticalRisks–unstableorcorruptgovernmentschangetherulesforthesalesteamRegulatoryHurdles–GovernmentscansetupquotasortariffsthataffectthesalesforceCurrencyFluctuations–increaseanddecreaseinlocalcurrenciescanmakecertainproductsunaffordableMarketUnknowns–lackofknowledgeofmarketconditions,theacceptedwayofdoingbusiness,orpositioningoftheproductmayderailthesalesteam’sefforts10TheStrategic/ConsultativeSellingModel11TheStrategic/ConsultativeSellingModelPersonalSellingPhilosophy–commitmenttothemarketingconceptandawillingnesstoadopttheroleofproblemsolver/partnerRelationshipStrategy–gameplanforestablishingandmaintaininghigh-qualityrelationshipswithprospects/customersProductStrategy–planthatcanassistthesalesrepresentativeinselectingandpositioningproductstosatisfycustomerneeds12TheStrategic/ConsultativeSellingModelCustomerStrategy–planthatensuresthatthesalesprofessionalwillbemaximallyresponsivetocustomerneedsPresentationStrategy–consistsofsettingobjectivesforeachsalescallandestablishingapresentationplantomeetthoseobjectives13TheStrategic/ConsultativeSellingModel14ThePresentationPlanApproachPresentationDemonstrationNegotiationClosingServicingtheSale15SalesForceNationalityExpatriates

HostcountryThirdcountryOtheroptions16SpecialFormsofMarketingCommunicationsDirectMarketingDirectmailCatalogsInfomercials,TeleshoppingEventSponsorshipConcerts,sportingeventsProductplacementinmoviesInternetCommunications17DirectMarketingAnycommunicationwithaconsumerorbusinessrecipientthatisdesignedtogeneratearesponseintheformof:AnorderRequestforfurtherinformationAvisittoastoreorotherplaceofbusiness18MassMarketing Communicationthatistypicallyaimedatbroadsegmentsofconsumerswithcertaindemographic,psychographic,orbehavioralcharacteristics19DirectMarketingvs.MassMarketing20One-to-OneMarketingBuildingfromCustomerRelationshipManagementIdentifycustomersandaccumulatedetailedinformationaboutthemDifferentiatecustomersandrankthemintermsoftheirvaluetothecompanyInteractwithcustomersanddevelopmorecostefficientandeffectiveformsofinteractionCustomizetheproduct/serviceofferedtothecustomer21CatalogsAmagazinestylepublicationthatfeaturesphotographsandextensiveinformationaboutacompany’sproducts22ProductPlacement23LookingAheadChapter15StrategicElementsofCompetitiveAdvantage24ExpatriatesAdvantagesSuperiorproductknowledgeDemonstratedcommitmenttoservicestandardsTrainforpromotionGreaterHQcontrolDisadvantagesHighercostHigherturnoverCostforlanguageandcross-culturaltrainingReturn25HostCountryAdvantagesEconomicalSuperiormarketknowledgeLanguageskillsSuperiorculturalknowledgeImplementationquickerDisadvantagesNeedsproducttrainingMaybeheldinlowesteemLanguageskillsmaynotbeimportantDifficulttoensureloyaltyReturn26ThirdCountryAdvantagesCulturalsensitivityLanguageskillsEconomicalAllowsregionalsalescoverageDisadvantagesMayfaceidentifyproblemsMaybeblockedforpromotionsIncomegapsNeedsproductand/orcompanytrainingLoyaltynotassuredReturn27OtherOptionsSalesagentsExclusivelicensearrangementsContractmanufacturingorproductionManagement-onlyagreementsJointventuresReturn28ApproachInitialContactwiththecustomer/prospectMustcompletelyunderstandthedecision-makingprocessandtherolesofeachparticipantReturn29Presentation

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