THE GLOBAL

Marketing Mix

GLOBAL
PROMOTION
WHAT IS PROMOTION?

Promotion is the component of marketing mix that informs, persuades, and reminds
01
customers regarding the firm and/or its products and services.

It includes all the means by which a company communicates with customers, users
02
and/or resellers.

It means to influence feelings, beliefs or behavior and an attempt to shift or change

03
the shape of the demand curve.
PROMOTION AND COMMUNICATION

The purpose of promotion is both to communicate with buyers and to influence them.

Effective promotion requires an understanding of the process of persuasion and

01
how this process is affected by environmental factors.

The potential buyer must not only receive the desired information but should
02
also be able to comprehend the message.

03 The information must be sufficient to motivate the buyer to react positively.

PROMOTION AND COMMUNICATION
Environment

SOURCE ENCODING INFORMATION DECODING RECEIVER

Noise
Feedback
THE
PROMOTION
MIX
The Promotion Mix

Personal
Selling

Local Advertising Publicity International

Sales
Promotion
THE GLOBAL
Promotion Mix

ADVERTISING
ADVERTISING

Advertising is a marketing tactic involving

paying for space to promote a product,
01 service, or cause. The actual promotional
messages are called advertisements, or
ads for short.

The goal of advertising is to reach people

most likely to be willing to pay for a
02 company's products or services and entice
them to buy.
PATTERNS OF ADVERTISING EXPENDITURES

Advertising-to-sales ratios vary across countries. The relationship between advertising expenditure and sales
generated determine the size of the advertising and overall marketing budget.

The size of an advertising budget is a function of: The size of a marketing budget is a function of:
1. Sales 1. Prospect–customer attitude differences
2. Number of users and other participants 2. Proportion of direct sales
3. Customer concentration 3. Product complexity
4. Fraction of sales made to order
5. Stage in life cycle
6. Product plans
ADVERTISING AND REGULATIONS

Advertising can be affected by local regulations in several ways and when and how much media
time and space are made available. The advertising industry may have a local self-regulatory.

The legitimacy of comparative advertising has not been fully settled in many countries in which certain products
are banned altogether from certain media such as:
Advertisements in France are limited to a picture of a cigarette package with no “seductive imagery.”
Belgium prohibits the use of electricity for advertising purposes between midnight and 8 a.m.
German laws regulate TV advertising contents and limit advertising on the national TV channels to twenty
minutes a day,
ADVERTISING MEDIA

Advertising media are the devices by which and through which the advertising messages are
transmitted by the advertisers to the prospective and existing customers.

International advertising is the practice of advertising in foreign or international media when the
advertising campaign is planned, directly or indirectly, by an advertiser from another country.

To advertise overseas, a company must determine the availability (or unavailability) of advertising
media. Media may not be readily available in all countries or in certain areas within the countries.
TELEVISION ADVERTISING MEDIA

Television ads reach targeted audiences in an

effort to sell consumers products. Creative,
imaginative and engaging ads inspire, excite,
convey information and generate brand loyalty.
Ads personalize the relationship between a
business and a consumer.
With stiff competition and limited air time,
marketers use shorter commercials or purchase
TV time well in advance.
RADIO ADVERTISING MEDIA

Radio is alive and well but is no longer king of

the media. However, it's an effective advertising
medium that offers advantages that others fail
to provide. When you choose radio advertising,
you can directly engage with your target
audience when they are most receptive.
It is virtually a free medium for listeners and the
programs are free, entertaining, up-to-date, and
portable.
NEWSPAPER ADVERTISING MEDIA

Newspaper advertising can target specific

demographics that are traditionally more
difficult to reach through other mediums. This
allows advertisers to more effectively reach
smaller, niche audiences, including those in
specific geographical areas.
In virtually all urban areas of the world, the
population has access to daily newspapers.
MAGAZINE ADVERTISING MEDIA

Magazines make it possible for advertisers to

direct their campaigns to obtain reach (the
number of individuals exposed to a particular
media vehicle at least once during a specified
time period) or frequency (the number of times
within a specified period that a prospect is
exposed to the message) or both.
It presents high quality images which gives
best representation of your product.
DIRECT MAIL ADVERTISING MEDIA

Direct mail is a type of direct marketing in

which businesses send letters, postcards, or
other promotional materials to past or current
potential customers, or clients. Direct mail
campaigns may be targeted to either a
consumer or business or both.

An order that is sent in by mail and fulfilled by

mail delivery is called a mail order.
OUTDOOR ADVERTISING MEDIA

Outdoor advertising includes posters, billboards,

painted bulletins, roadside and store signs, and
electric spectaculars (large illuminated electric
signs with special lighting and animated
effects).

Given the huge impact and impressiveness of

size and color, outdoor advertising serves well
as reminder promotion for well-known products.
INTERNET ADVERTISING MEDIA
Internet marketing, or online marketing, refers
to advertising and marketing efforts that use the
Web and email to drive direct sales via
electronic commerce, in addition to sales leads
from websites or emails.

The Internet is global in nature and creates

more opportunities for certain products and
services to be known most commonly on social
media platforms.
SCREEN (CINEMA) ADVERTISING MEDIA

Cinema advertising is eight times more effective

at making your brand stand out from the crowd
than television.

Cinema audiences are four times more likely to

be emotionally engaged than a television
audience, and those exposed to ads in the
cinema are twice as likely to recall a brand
compared to TV.
DIRECTORIES ADVERTISING MEDIA

Directories are books that provide listings of

people, professions, and institutions. The
yellowpages telephone directories, with a
listing of various types of companies, are a
prime example.

Directories may be sold or given away free of

charge. In some countries, governments and
private entities publish trade directories of
local exporters and their advertisements.
RURAL MEDIA ADVERTISING MEDIA

The rural markets are difficult to predict, and

possess special characteristics. A marketer can
also attract an audience by arranging for some
type of festival advertising held at a temple or
school.

A free outdoor movie may be shown during the

festival while advertising is broadcast through
loudspeakers to the captive audience.
OTHER MEDIA ADVERTISING MEDIA

Other advertising media include the traditional

strategy common in developing countries. Some of
these media are advertising specialties, a variety of
inexpensive items (e.g., pens, calendars, letter
openers) carrying the advertiser’s name, address, and
a short sales message.

Companies use “exhibitions” or public service

advertising to promote total company image and
technical expertise.
THE GLOBAL
Promotion Mix

PERSONAL
SELLING
PERSONAL SELLING

Personal selling is commonly known as

salesmanship and the oral presentation in
01 a conversation with one or more
prospective purchasers for the purpose of
making sales.

It works well with high-unit value and

infrequently purchased products which
02 usually require a demonstration, are
custom-made or fitted to an individual’s
needs, or involve trade-ins.
PERSONAL SELLING VS. ADVERTISING

Personal Selling uses interpersonal and Advertising relies on a non-personal

01 more customer contact in presentations. 01 means of contact and sales presentation.

A two-way communication with Advertising is a one-way communication

02 02
immediate feedback and less “noise.” process that has relatively more “noise.”

In Personal Selling, salespersons may In advertising, message is given and easier

03 03
react to unforeseen situations. to control.

Personal Selling is is more flexible, Advertising is usually less persuasive

04 04
personal, and powerful. because message is prepared in advance.
VARYING QUALITY AND STYLE
The quality of personal selling Selling styles differ significantly from product to product, from employer to
employer, and from one target group to another such as:

Salespersons selling for manufacturers are better trained and more qualified than those working for
01 wholesalers and retailers.

Salespersons who sell to industrial users are more likely to be “order getters” and are generally
02
aggressive, well trained, and well informed.

Salespersons selling to wholesalers, retailers, and consumers have a more routine selling job, and
03
these salespeople are “order takers” and generally less aggressive in securing new business.
INTERCULTURAL NEGOTIATION
Successful negotiations require some understanding of each party’s culture and may also require adoption
of a negotiation strategy that is consistent with the other party’s cultural system.

One strategy is to rely on stereotyping. It is possible, for example, to use stereotyped conceptions to
01 identify the personality traits of negotiators from different ethnic groups or countries.

International marketers must be very interested in the effects of cultural adaptation on intercultural
02
communication.

Identify conditions that make it desirable for business people to adapt their behavior in response to
03
the culture of the other party.
EXPATRIATE PERSONNEL

One controversial subject for which there is no definite solution is the nationality of the salespeople
to be used in a market abroad.

Expatriate salespeople are viewed favorably because they are already familiar with their
01
company’s product, technology, history, and policies.
Expatriates are likely to perform more effectively overseas if they are satisfied with their
02
jobs.
Successful expatriates possess certain qualities that include cultural adaptability, patience,
03
flexibility, and tolerance for others’ beliefs.
TELEMARKETING
Telemarketing is the direct marketing of goods or services to potential customers over the telephone, internet,
or fax. Telemarketing may either by carried out by telemarketers or by automated telephone calls.

01 Outbound: Customer prospects and existing customers are actively reached out to.

Inbound: Based on inbound inquiries about products or services as prompted by advertising or sales
02
efforts.
Lead generation: The collection of intelligence about the profiles, interest and demographic data of
03
potential customers.

04 Sales: The persuasive activity engaged in by salespeople.

THE GLOBAL
Promotion Mix

PUBLICITY
NATURE OF PUBLICITY

Publicity is not a paid form of mass

communication that involves getting
01 favorable response of buyers by placing
commercially significant news in mass
media.

Publicity comes from reporters, columnists,

02 and journalists. It can be considered as a
part of public relations.
MANAGEMENT OF PUBLICITY
Publicity is often viewed as a promotional component that is not possible to manage. News releases
to the media may not be used by the media or, if used, not in the manner intended.

Every campaign must first have a well-defined objective otherwise it is difficult to coordinate
01
activities and items of little news value might be released.
Publicity must be measured by sales inquiries and changes in the attitude or response pattern of the
02
public.
A person responsible for a publicity campaign should keep the needs of the media in mind. Any
03
request for information should be handled promptly.
Use of publicity placement in the form that is ready to be used such as photos and materials that are
04
camera-ready relieve the publication of budget and time constraints.
NEGATIVE PUBLICITY

While an allegation might be true, more often than not its the unsubstantiated rumors that inflict more
damage.

Like the tiny spark that can start a bush fire, the causes of negative publicity can be from:

Disillusioned (ex) employee

Disappointed or angry customers
Misleading interpretations of blogs/forum posts/interview excerpts
Traders or resellers spreading unsubstantiated rumors
THE GLOBAL
Promotion Mix

SALES
PROMOTION
NATURE OF SALES PROMOTION
Sales promotion is the process of
persuading a potential customer to buy
01 the product. It is designed to be used as a
short-term tactic to boost sales – it is
rarely suitable as a method of building
long-term customer loyalty.

Sales promotion consists of those

promotional activities that do not fall
02 under the other three activities of the
promotion mix.
ADVANTAGES AND DISADVANTAGES OF SALES PROMOTION

Effective at achieving a Sales effect may only be

01 01
quick boost to sales short-term

Encourages customers to try Customers may expect and

02 02
a product or to switch brands anticipate more promotions

Strengthens Customer May possibly damage brand

03 03
Involvement and Loyalty image if not delivered
RESTRICTIONS: Premiums & Gifts
Premiums and Gifts are free products given when you buy another product. This approach likely varies in all
parts of the world and most European countries have a limit on the value of the premium given.

Colgate was sued by a local blade manufacturer in Greece for giving away razor-blades with
shaving cream.

In France, it is illegal to offer premiums that are conditional on the purchase of another
product.

Austria considers premiums to be a form of discriminatory treatment toward buyers.

RESTRICTIONS: Price Reductions, Discounts and Sales
These terms are synonymous which means reduction of the regular price of a product or service in order to
obtain or increase sales. These are also referred as markdown sand utilized in a wide range of industries.

In Germany, marketers must notify authorities in advance if they plan to have a sale and
limited to such events.

In France, it is illegal to sell a product for less than its cost while discounts in Scandinavia are
also restricted.

Austria has a discount law prohibiting cash reductions that give preferential treatment to
different groups of customers.
RESTRICTIONS: Samples
A product sample is a sample of a consumer product that is given to the consumer free of cost so that he or
she may try a product before committing to a purchase.

Germany restricts door-to-door free samples that limit population coverage as well as the size
of the sample pack.

USA does not allow alcoholic beer to be offered as a free sample, and this law also holds for
taste tests.

In Russia, tobacco firms freely distribute samples. The “Lucky Strike girls,” for example, tour
Moscow bars offering patrons a smoke and a light.
RESTRICTIONS: Sweepstakes, Games and Contests
Marketers use sweepstakes, initiate games and contests in cases the brand is not able to create enough
demand from the market. It gives away chances to win prizes with the purchase of a product or service.

Germany permits sweepstakes as long as they do not create psychological pressure on

customers and must not be misleading.

In France, sweepstakes can only be legal if an entry form is separate from an order form and
offer a prize of substantial value.

A lottery has three elements – chance, consideration, and price. For a sweepstakes, game, or contest not to
become an illegal lottery, a company must make certain that at least one of these three elements is missing.
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