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Global Marketing Communication Decisions

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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 …show more content…

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

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