CHAPTER 14
GLOBAL MARKETING COMMUNICATIONS DECISIONS II: SALES PROMOTION, PERSONAL SELLING, SPECIAL FORMS OF MARKETING COMMUNICATION
SUMMARY
Sales promotion is any paid, short-term communication program that adds tangible value to a product or brand. Consumer sales promotions are targeted at ultimate consumers; trade sales promotions are used in business-to-business marketing. Sampling gives prospective customers a chance to try a product or service at no cost. A coupon is a certificate that entitles the bearer to a price reduction or other value-enhancing consideration when purchasing a product or service.
Personal selling is face-to-face communication between a prospective buyer and a company representative. The
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The increasing popularity of sales promotion as a marketing communication tool can be explained in terms of several strengths and advantages:
• Sales promotions provide a tangible incentive to buyers. • Sales promotions reduce the perceived risk buyers may associate with purchasing. • Sales promotion provides accountability; the manager in charge of the promotion can immediately track the results of the promotion.
As with other aspects of marketing communication, a key issue is whether promotion efforts should be directed by headquarters or left to local country managers.
Four factors have been identified that contribute to more headquarters involvement in the sales promotion effort: cost, complexity, global branding, and transnational trade:
1. As sales promotions command ever-larger budget allocations, headquarters naturally takes a greater interest. 2. The formulation, implementation, and follow-up of a promotion program may require skills that local managers lack. 3. The increasing importance of global brands justifies headquarters involvement to maintain consistency from country to country and ensure that successful local promotion programs are leveraged in other markets. 4. As mergers and acquisitions lead to increased concentration in the retail industry and as the industry globalizes, retailers will seek coordinated promotional programs from their
* Sales reps secure the best product placement in stores, conducting taste tests in stores and convincing “individual store managers to pull the product from the central buyer.” (Singer, 2008)
The promotionPromotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The pace and creativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a size-able proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.
“Promotion refers to the advertising and selling part of marketing. It is how you let people know what you’ve got for sale. The purpose of promotion is to get people to understand what your product is, what they can use it for, and why they should want it.”
Promotion is a way company communicates messages on what the pruct does and what does the product can offer customers. It includes below elements:
For example T.V, the net, text messages and emails have all provided new and effective ways of marketing internationally and at a cheap price. This means that communication possibilities and user interaction between promotional campaigns is much easier.
5) Increase of Sales Promotions - by encouraging the staff to get involved with these promotions, this will bring many financial benefits to the organisation.
The products that people buy are promoted to bring in new consumers. Promotion requires an organization to have a lot of time. Also a promotion should be clear and t o the point.
The last part of the marketing program, promotion, should be part of a bigger program, Integrated Marketing Communications (IMC). An IMC is necessary because of the scale of CVS and the importance of having an integrated, consistent message. The IMC should consist of advertising, public relations, and sales promotion. The unique situation of being physically located within Target, can allow for some co-branding opportunities that may be capitalized
Promotion Decision- Retailer’s use and or all five promotions tools- advertising, personal selling, sales promotion, public relations
- Sales increase: a) cross-promotions of each company’s brand and utilization of each company’s channels, and b) cooperation in international businesses.
e. They can continue to improve their communications between stores, so that not only will managers know what products are selling the most within their own stores, they will be able to get information regionally and react quickly to the rising hot trends.
In business, it is important to use various and innovative promotional strategies to expand the demand of your product and to earn more consumers. It is one of the main things a business or a company must do to keep on working. There are 3 different ways to promote a product: to show information to
Promotion is the direct way in which an organisation attempts to communicate with various target audience. Promotion consists of five main elements: Advertising, Personal selling, sales promotion, Public Relations and Direct Marketing.
Promotion – Promotion means making customers aware about your products and introducing the customers with the benefits which they can get by buying their products. They can do advertisements, direct marketing and sales promotion for the promotion of the product.
Promotion is an aspect of the marketing mix that has great importance. In order for our product to be successful, the promotion we use will be very vital. This is because of the fact that the method of promotion we use for the product can help to differentiate our product from other products which makes it unique and outstanding amongst other brands. Moreover, using the right promotion can be used as a way to persuade consumers of our product that they made the right choice.