IM Chapter 5
IM Chapter 5
IM Chapter 5
and others.
Promotional objectives
market share;
The sender needs to have a clear understanding of the purpose of the message, the
audience to be reached and how this audience will interpret and respond to the message.
The degree of ‘fit’ between medium and message. For example, a complex and wordy
♪ Language differences
♪ Economic differences
♪ Sociocultural differences
♪ Competitive differences
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♪ Technology
♪ Standardization
representative and a potential customer as well as back to the company. The salesperson's job is
to correctly understand the buyer's needs, match those needs to the company's product(s), and
then persuade the customer to buy. Effective personal selling in a salesperson's home country
requires building a relationship with the customer; global marketing presents additional
challenges because the buyer and seller may come from different national or cultural
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The selling process is typically divided into several stages: prospecting,
the sale, and following up. The relative importance of each stage can vary by country or
region. Experienced sales representative know that persistence is one tactic often required to
win an order in the market; however, persistence often means tenacity, as in "don't take 'no' for
an answer."
♪ Prospecting is the process of identifying potential purchasers and assessing their probability
understanding and matching the customer's needs and the company's products in developing
a sales presentation.
prospective customer's problem areas and tailor a presentation that demonstrates how the
♪ The next two steps, the approach and the presentation, involve one or more meetings
In global selling, it is absolutely essential for the salesperson to understand cultural norms and
proper protocol. In some countries, the approach is drawn out as the buyer-gets to know or takes
the measure of the salesperson on a personal level with no mention of the pending deal. In such
instances, the presentation comes only after rapport has been firmly established.
♪ During the presentation, the salesperson must deal with objections. Objections may be of
business or personal nature. A common theme in sales training is the notion of active
♪ When objections are successfully overcome, the salesperson moves on to the close and asks
♪ A successful sale does not end there however; the final step of the selling process involves
following up with the customer to ensure his or her ongoing satisfaction with the purchase.
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A trade fair (TF) or exhibition is a concentrated event at which manufacturers, distributors
and other vendors display their products and/or describe their services to current and
Trade fairs can enable a company to reach in a few days a concentrated group of interested
prospects that might otherwise take several months to contact. Potential buyers can examine and
compare the outputs of competing firms in a short period at the same place. They can see the
latest developments and establish immediate contact with potential suppliers. TFs also offer
international firms the opportunity to gather vital information quickly, easily and cheaply. For
example, within a short period a firm can learn a considerable amount about its competitive
environment, which would take much longer and cost much more to get through other sources
Whether a marketer should participate in a trade fair depends largely on the type of business
relationship it wants to develop with a particular country. A company looking only for one-off
or short-term sales might find the TF expense prohibitive, but a firm looking for long-term
to achieve its objectives. Public relations (PR) involve a variety of programs designed to
Public relations are a management tool designed to favorably influence attitudes toward an
organization, its products, and its policies. It is often overlooked form of promotion. In most
organizations this promotional tool is typically a stepchild, relegated far behind personal selling,
advertising, and sales promotion. There are several reasons for management's lack of attention
to public relations.
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Public relation departments perform the following five activities, not all of which support
marketing objectives.
1. Press relation-Presenting news and information about organization in the most positive light.
external communications.
and regulation.
5. Counseling- Advising management about public issue and company positions and image.
This includes advising in the event of a product mishap when the public confidence in a
product is shaken.
Public relations personnel also are responsible for fostering goodwill, understanding, and
♣ Publicity is any communication about an organization, its products, or policies through the
media that is not paid for by the organization. Publicity usually takes the form of a news
Publicity is the non-personal stimulation of demand that is not paid for by a sponsor that has
released news to the media. Advertising and publicity are guile similar in the sense that both
require media for a non-personal presentation of the promotional message. One difference
between the two is that with publicity a company has less control over how the message will be
used by the media. Another difference is that publicity is presumed to be free in the sense that
the media are not paid for the presentation of the message to the public.
the selected newspapers, television stations, or other media to report the information as
news.
2. Feature Articles: Larger manuscripts composed and edited for a particular medium.
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4. Special Events: Sponsorship of events, teams, or programs of public value.
Publicity can help to accomplish any communication objective. It can be used to announce new
products, publicize new policies, or report financial performance. If the message, person, or
Sales promotions refer to a collection of short-term incentive tools that lead to quicker and/or
larger sales of a particular product by consumers or the trade. Sales promotion refers to any
consumer or trade program of limited duration that adds tangible value to a product or brand.
1. Consumer promotions that target end-users (e.g., coupons, sweepstakes, and rebates)
A. Sampling
Sampling involves a variety of procedures whereby consumers are given some quantity of a
product for no charge to induce trial.
B. Couponing
Coupons are certificate that gives buyers a saving when they purchase a specified product
mailed, enclosed in other products or attached to them, or inserted in magazine and
newspaper ads.
C. Premiums (Gifts)
A premium is an offer of an item of merchandise or services either free or at a low price
that is an extra incentive for purchasers.
D. Contests and Sweepstakes
♪ A contest is a promotion where consumers compete for prizes or money on the basis of
skills or ability. The winner is predetermined by some criteria.
♪ A sweepstakes is a promotion where winners are determined purely by chance; it cannot
require a proof of purchase as a condition for entry. E.g. Game.
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Refunds (also known as rebates) are offers by the manufacturer to return a portion of the
product purchase price, usually after the consumer supplies some proof of purchase.
F. Price Packs (Rupees-Off Deals)
Offers to consumers of savings off the regular price of a product, flagged on the label or
package.
2. Trade promotions that are aimed at distributors (e.g., volume discounts, advertising
allowances).
tangible value to the product or brand. The tangible value created by the sales promotion may
come in various forms, such as price reduction or a “buy one, get one free” offer. The success of
a sales promotion may depend on local adaptation. Major constraints are imposed by local laws,
Meaning
"Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or
The international advertiser must ensure appropriate campaigns for each market and also to get
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There are eight decision areas in international advertising:(1) Advertising
objectives (2) selecting the agency (or agencies), (3) choosing the message, (4) selecting the
media, (5) determining the budget, (6) evaluating advertising effectiveness, (7) organizing for
1. Advertising objectives
a) Informative advertising: figures heavily in the pioneer stage of a product life category, where
objective is to build selective demand for a particular brand. Some persuasive advertising
has moved into the category of comparative advertising, which seeks to establish the
superiority of one round through specific compression of one or more attributes with one or
advertising is reinforcement advertising, which seeks to assure current purchasers that they
Many marketing functions are performed within the company. With advertising, the firm almost
always relies on expertise from the advertising agency. Agency selection is usually the first
advertising decision the marketer has to make. Two major alternatives are open: (1) an
international agency with domestic and overseas offices or (2) local agencies in each national
market.
A major decision for the international marketer is whether the firm should use national or
international advertising appealsa localized or standardized approach. The goal in either case
is to fit the market. Although people’s basic needs and desires are the same around the world,
the way these desires are satisfied may vary from country to country. Because it is impossible to
know each market intimately, help must be obtained from the local subsidiary or distributor and
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the local advertising agency. The firm may, in fact, completely decentralize responsibility so
Media is a vehicle through which an advertiser communicates their message to likely customers
or prospects with a view to influencing them in terms of the advertising objectives. The appeal
and the target audience determine the message and the choice of media.
The following are the media generally used for advertising purposes:
o Television o Direct mail o Rural media
o Radio o Outdoor o Stadium
o Newspapers o Screen (Cinema) o Media Mix
o Magazines o Directories
Advertisers need to make decisions at each of three successive levels to determine which
specific advertising media to use: -
Ü Which type of media will be used? Newspaper, television, radio, magazine, or direct mail?
What about the less prominent media of billboards, and yellow pages?
Ü Which category of the selected medium will be used? Television has network and cable.
Magazines include general interest and special interest categories. And there are national as
Ü Which specific media vehicles will be used? An advertiser that decides first on radio and
then on local stations must determine which stations to use each city.
Media selection involves finding the most cost effective media to deliver the desired number of
exposure to the target audience.
Here are some general factors that will influence media choice: -
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international advertiser must try to find an optimum outlay for a number of markets, the
Testing advertising effectiveness is even more difficult in international markets than in the
domestic market. Because marketers have less contact with foreign markets, their ability to
investigate advertising effectiveness is limited. Many firms use sales results as the measure of
advertising effectiveness.
1) It can centralize all decision making for international advertising at headquarters; (2) it can
decentralize the decision making to foreign markets; or (3) it can use some blend of these two
separated from the company’s overall organization for international business. The firm is
unlikely to be highly centralized for one function and decentralized for another.
A firm that sells through licensees or distributors can choose one of three ways to advertise in
its foreign markets: (1) It can handle such adverting itself; (2) it can cooperate with the local
distributor; or (3) it can try to encourage the distributor or licensee to do such advertising by
itself. The last alternative is not really feasible, so the choice is primarily between going it
alone or cooperating.
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