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Chapter14
GlobalMarketingDecisions:SalesPromotion,PersonalSelling,SpecialFormsofMarketingCommunicationPowerPointbyKristopherBlanchardNorthCentralUniversity©2005PrenticeHall3/24/20207/18/20201SalesPromotionSalespromotionreferstoanypaidconsumerortradecommunicationprogramoflimiteddurationthataddstangiblevaluetoaproductorbrandPricevs.non-pricepromotionsConsumervs.tradepromotions©2005PrenticeHall3/24/20207/18/20202SalesPromotionProvideatangibleincentivetobuyersReducetheperceivedriskassociatedwithpurchasingaproductProvideaccountabilityforcommunicationsactivityProvidemethodofcollectingadditionaldatafordatabase©2005PrenticeHall3/24/20207/18/20203SalesPromotion:GlobalorLocalIncountrieswithlowlevelsofeconomicdevelopment,lowincomeslimittherangeofpromotionaltoolsavailableMarketmaturitycanalsobedifferentfromcountrytocountryLocalperceptionsofaparticularpromotionaltoolorprogramcanvaryLocalregulationsmayruleoutuseofaparticularpromotionincertaincountriesTradestructureintheretailingindustrycanaffecttheuseofsalespromotions.©2005PrenticeHall3/24/20207/18/20204SamplingSamplingProvidesconsumerwithopportunitytotryproductatnocostMaybedistributedinstores,inthemail,throughprintmedia,atevents,ordoor-to-door©2005PrenticeHall3/24/20207/18/20205CouponingCouponingPrintedcertificatesentitlethebearertoapricereductionorsomeotherspecialconsiderationforpurchasingaparticularproductCouponingaccountsfor70%ofconsumerpromotionspendingintheUS©2005PrenticeHall3/24/20207/18/20206Couponing©2005PrenticeHall3/24/20207/18/20207SalesPromotion:IssuesandProblemsFraudPepsipromotionwithAppleRegulationsvarybycountryCulturaldispositionstocouponsandothersalespromotionsMalaysiansseecouponusageasembarrassingIslamfrownsongamblingsosweepstakesmaynotwork©2005PrenticeHall3/24/20207/18/20208PersonalSellingPerson-to-personcommunicationbetweenacompanyrepresentativeandpotentialbuyersFocusistoinformandpersuadeprospectShort-termgoal:makeasaleLong-termgoal:buildrelationship©2005PrenticeHall3/24/20207/18/20209PersonalSellingHurdlesPoliticalRisks–unstableorcorruptgovernmentschangetherulesforthesalesteamRegulatoryHurdles–GovernmentscansetupquotasortariffsthataffectthesalesforceCurrencyFluctuations–increaseanddecreaseinlocalcurrenciescanmakecertainproductsunaffordableMarketUnknowns–lackofknowledgeofmarketconditions,theacceptedwayofdoingbusiness,orpositioningoftheproductmayderailthesalesteam’sefforts©2005PrenticeHall3/24/20207/18/202010TheStrategic/ConsultativeSellingModel©2005PrenticeHall3/24/20207/18/202011TheStrategic/ConsultativeSellingModelPersonalSellingPhilosophy–commitmenttothemarketingconceptandawillingnesstoadopttheroleofproblemsolver/partnerRelationshipStrategy–gameplanforestablishingandmaintaininghigh-qualityrelationshipswithprospects/customersProductStrategy–planthatcanassistthesalesrepresentativeinselectingandpositioningproductstosatisfycustomerneeds©2005PrenticeHall3/24/20207/18/202012TheStrategic/ConsultativeSellingModelCustomerStrategy–planthatensuresthatthesalesprofessionalwillbemaximallyresponsivetocustomerneedsPresentationStrategy–consistsofsettingobjectivesforeachsalescallandestablishingapresentationplantomeetthoseobjectives©2005PrenticeHall3/24/20207/18/202013TheStrategic/ConsultativeSellingModel©2005PrenticeHall3/24/20207/18/202014ThePresentationPlanApproachPresentationDemonstrationNegotiationClosingServicingtheSale©2005PrenticeHall3/24/20207/18/202015SalesForceNationalityExpatriates
HostcountryThirdcountryOtheroptions©2005PrenticeHall3/24/20207/18/202016SpecialFormsofMarketingCommunicationsDirectMarketingDirectmailCatalogsInfomercials,TeleshoppingEventSponsorshipConcerts,sportingeventsProductplacementinmoviesInternetCommunications©2005PrenticeHall3/24/20207/18/202017DirectMarketingAnycommunicationwithaconsumerorbusinessrecipientthatisdesignedtogeneratearesponseintheformof:AnorderRequestforfurtherinformationAvisittoastoreorotherplaceofbusiness©2005PrenticeHall3/24/20207/18/202018MassMarketing Communicationthatistypicallyaimedatbroadsegmentsofconsumerswithcertaindemographic,psychographic,orbehavioralcharacteristics©2005PrenticeHall3/24/20207/18/202019DirectMarketingvs.MassMarketing©2005PrenticeHall3/24/20207/18/202020One-to-OneMarketingBuildingfromCustomerRelationshipManagementIdentifycustomersandaccumulatedetailedinformationaboutthemDifferentiatecustomersandrankthemintermsoftheirvaluetothecompanyInteractwithcustomersanddevelopmorecostefficientandeffectiveformsofinteractionCustomizetheproduct/serviceofferedtothecustomer©2005PrenticeHall3/24/20207/18/202021CatalogsAmagazinestylepublicationthatfeaturesphotographsandextensiveinformationaboutacompany’sproducts©2005PrenticeHall3/24/20207/18/202022ProductPlacement©2005PrenticeHall3/24/20207/18/202023LookingAheadChapter15StrategicElementsofCompetitiveAdvantage©2005PrenticeHall3/24/20207/18/202024ExpatriatesAdvantagesSuperiorproductknowledgeDemonstratedcommitmenttoservicestandardsTrainforpromotionGreaterHQcontrolDisadvantagesHighercostHigherturnoverCostforlanguageandcross-culturaltrainingReturn©2005PrenticeHall3/24/20207/18/202025HostCountryAdvantagesEconomicalSuperiormarketknowledgeLanguageskillsSuperiorculturalknowledgeImplementationquickerDisadvantagesNeedsproducttrainingMaybeheldinlowesteemLanguageskillsmaynotbeimportantDifficulttoensureloyaltyReturn©2005PrenticeHall3/24/20207/18/202026ThirdCountryAdvantagesCulturalsensitivityLanguageskillsEconomicalAllowsregionalsalescoverageDisadvantagesMayfaceidentifyproblemsMaybeblockedforpromotionsIncomegapsNeedsproductand/orcompanytrainingLoyaltynotassuredReturn©2005PrenticeHall3/24/20207/18/202027OtherOptionsSalesagentsExclusivelicensearrangementsContractmanufacturingorproductionManagement-onlyagreementsJointventuresReturn©2005PrenticeHall3/24/20207/18/202028ApproachInitialContactwiththecustomer/prospectMustcompletelyunderstandthedecision-makingprocessandtherolesofeachparticipantReturn©2005PrenticeHall3/24/20207/18/202029PresentationProspect’sneedsareassessedandmatchedtothecompany’sprod
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