Chapter 14 - Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication Flashcards
Define and explain Sales Promotion (Verkaufsfördernde Maßnahmen (Gutscheine, Rabatte, Vorteile, …)
Sales promotion refers to any paid consumer or trade communication program of limited duration that adds tangible value to a product or brand
(Verkaufsförderung bezieht sich auf jedes bezahlte Verbraucher- oder Handelskommunikationsprogramm von begrenzter Dauer, das einem Produkt oder einer Marke einen spürbaren Mehrwert verleiht)
- price vs. non-price promotions
- consumer vs. trade promotions
(e.g. Axe Apollo featured astronaut Buzz Aldrin in promoting a free trip to space for 22 lucky winners.)
Utility of Sales Promotion
- Provide a tangible incentive to buyers
- reduce the perceived risk associated with purchasing a product
- Provide accountability for communications activity
- provide method of collecting additional data for database
Aspects to consider when deciding to use sales promotion global or local
- in countries with low levels of economic development, low incomes limit the range of promotional tools available
- market maturity can also be different from country to country
- Local perceptions of a particular promotional tool or program can vary
- Local regulations may rule out use of a particular promotion in certain countries
- trade structure in the retailing industry can affect the use of sales promotions
Explain Sampling (Probenahme)
- provides consumer with opportunity to try product at no cost
- may be distributed in stores, in the mail, through print media, at events, or door-to-door
e.g.:
Kikkoman soy sauce launched a sampling programme in supermarkets in the U.S.
–> today the U.S. contributes 85% of profit from international operations
Explain Couponing and name types of it
= Printed certificates entitle the bearer (berechtigt den Inhaber des Coupons) to a price reduction or some other consideration for purchasing a particular product
- Couponing accounts for 70% of consumer promotion spending in the U.S
Types of Coupons: Free-standing inserts, in-pack, on-pack, cross coupon
Explain social couponing
Hot online trend, Groupon INC is industry leader
- Deals are made with local retailers with Groupon taking a percentage of proceeds
- Grown from 1 country to 35 mainly through acquisition
- 40 million users in 48 global markets by 2012
- over 50% of users are in Europe, 33% in U.S.
- founders rejected Google’s $6 billion takeover offer
Issues and Problems with sales promotion
Fraud (Betrug)
- pepsi promotion with apple
Regulations vary by country
Cultural dispositions to coupons and other sales promotions
- Malaysian see coupon usage as embarrassing (peinlich)
- Islam frowns on gambling (missbilligt das Glücksspiel), so sweepstakes (Gewinnspiele) may not work
Define Personal Selling
- Person-to-Person communication between a company representative and a prospective buyer
- focus is to inform and persuade prospect
- short-term goal: make a sale
- Long-term goal: build a relationship
Personal Selling Hurdles
- Political risk
- unstable or corrupt governments change the rules for the sales team - Regulatory Hurdles
- Governments can set up quotas or tariffs that affect the sales force (Außendienst) - Currency Fluctuations
- increase and decrease in local currencies can make certain products unaffordable - Market Unknowns
- lack of knowledge of market conditions, the accepted way of doung business, or positioning of the product may derail tha sales team’s efforts
The strategic/consultive selling model evolved in response to:
- Increased competition
- More complex products
- More emphasis on customer needs
- Long-term relationships
List and explain the 5 strategic steps of The Strategic/Consultative Selling Model
- PERSONAL SELLING PHILOSOPHY
- commitment to the marketing concept
- willingness to adopt the role of problem solver / partner - RELATIONSHIP STRATEGY
- game plan for establishing and maintaining high-quality relationships with prospects (Interessenten) / customers - PRODUCT STRATEGY
- plan that can assist the sales representative in selecting and positioning products to satisfy customer needs - CUSTOMER STRATEGY
- plan that ensures that the sales professional will be maximally responsive to customer needs - PRESENTATION STRATEGY
- consists of setting objectives for each sales call and establishing a presentation plan to meet those objectives
List and explain the aspects of a presentation plan in context of the strategic / consultive selling model
- APPROACH
- initial contact with the customer / prospect
- Sales person must completely understand the decision-making process and the roles of ech participant - PRESENTATION
- Prospect’s needs are assesed and matched to the company’s products
- The style and message of the presentation must be tailored to the audience - DEMONSTRATION
- salesperson has the opportunity to tailor the communication effort to the customer
- can show how the product can eet the customer’s needs - NEGOTIATION
- Ensures that both the customer and the salesperson come away from the presentation winners - CLOSE
- ask for the sale
- must be culturally sensitive - SERVICING THE SALE
- to ensure customer satisfaction: Implementation process must be outlined; Customer service programme established
Name different types of Sales force nationalities (Herkunftsland des Außendienstlers)
A. Expatriates (Auswanderer, Leute die Extra in das Land gehen)
B. Host-country nationals
C. Third-country nationals
D. Other options
Name advantages and disadvantages of Expatriates as Sales force nationality
Advantages:
- Superior product knowledge
– Demonstrated commitment to service standards
– Train for promotion – Greater HQ control
Disadvantages:
– Higher cost
– Higher turnover
– Cost for language and cross‐cultural training
Name advantages and disadvantages of Host-Country Nationals as Sales force nationality
Advantages:
- Economical
– Superior market knowledge
– Language skills
– Superior cultural knowledge
– Fast implementation
Disadvantages:
– Needs product training
– May be held in low esteem
– Language skills may not be important
– Difficult to ensure loyalty
Name advantages and disadvantages of Third-Country Nationals as Sales force nationality
Advantages:
– Cultural sensitivity
– Language skills
– Economical
– Allows regional sales coverage
Disadvantages:
– May face identification problems
– May be blocked for promotions
– Income gaps
– Needs product and/or company training
– Loyalty not assured
What are other options of salesforce people instead of expatriates, host-country and third-country nationals
- Sales agents
- Exclusive license arrangements
- Contract manufacturing or production
- Management‐only agreements
- Joint ventures
Name three categories of special forms of marketing communications
Direct Marketing
– Direct mail
– Catalogs
– Infomercials, teleshopping
Event Sponsorship
– Concerts, sporting events
– Product placement in movies
Internet Communications
Explain Direct Marketing
Any communication with a consumer or business recipient that is designed to generate a response in the form of:
– An order
– Request for further information
– A visit to a store or other place of business
Explain One-to-One Marketing
Building from Customer Relationship Management
– Identify customers and accumulate detailed information about them
– Differentiate customers and rank them in terms of their value to the company
– Interact with customers and develop more cost efficient and effective forms of interaction
– Customize the product/service offered to the customer
Advice for U.S. Direct Marketers Going Global
+ The World is full of people who are not Americans - be sure not to treat them that way
+ Like politics, all marketing is local - Just because your direct mail campaign worked in Texas, do not assume it will work in Toronto.
+ Although there may be a European Union, there is no such thing as a “European.”
+ Pick your target, focus on one country, and do your homework.
+ Customers need to be able to return products locally or at least believe there are services available in their country.
Explain Direct Mail
A vehicle for delivering a personally addressed offer to a prospect targeted by a marketer
- Popular with banks, insurance co., other financial service providers
- U.S. direct mail lists are easy to rent; Europe and Japan lists are lower in quality
- Germans spend the most, $500 p.P., in mail‐order shopping
Explain Catalogues
Magazine‐style publication that features photographs, illustrations, and extensive information about a company’s products
- U.S. 1/3 of world market, 17 billion mailed in 2008
- EU: Elimination of barriers has led to a boom
- Hong Kong and Singapore have efficient postal systems and highly educated consumers with credit cards
Explain Infomercials and teleshopping
An infomercial is a form of paid TV in which a particular product is demonstrated, explained, and offered for sale to viewers who call a tollfree number on the screen
- In Asia, infomercials make $100s of millions in sales. Low penetration rates of private phones, credit cards & delivery issues create difficulties
- Teleshopping on channels like HSN and QVC is exclusively devoted to (gewidmet) demonstration and selling
Explain interactive television
ITV allows viewers to interact with the programming content they are viewing
- In the U.K., more than half of pay‐TV subscribers use ITV
- Remote controls have buttons to push to order products shown on screen
Explain Sponsorships
A company pays a fee to be associated with an event, team, athletic association, or sports facility
- Combines elements of PR and sales promotion
- Draws media attention
Explain Product Placement
Arranging to have the company’s products and brand names appear in TV shows, movies, and other types of entertainment
- Marketers also lend or donate products to celebrities and other public figures
- Issue for Marketers: Once seen in a movie, products cannot be easily adapted to meet local market needs
