Market Context A/c year 2023 Chapter Contents 5.1 Personal selling 5.2 Exhibitions trade fairs 5.3 Public relations/ publicity 5.4 Sales promotion 5.5 Advertising in the global situations 5.6. Advertising standardization versus local adaptation Introduction about promotional strategies in international marketing What is a promotion strategy in marketing?
• A promotion strategy in marketing refers to the
methods and techniques used to create an awareness about a product or service. There are many different methods in sales promotion, advertising, public relations, and personal selling used by businesses to accomplish this goal. • An international promotion strategy is when promotional messages vary from one country to the next or where campaigns are tailored/customize to different regions. This strategy is used with either the standardized or customized product. Promotion Strategies in Marketing
• Promotion strategies can be used by marketers or
businesses for various reasons; however, most organizations generally have as their main goal to create a brand awareness.
• Businesses aiming to sell products work towards the goal
of influencing consumers so that they become customers of their brand.
• To do this, the marketing team should conduct research
and identify the objectives to using a promotional strategy, as well as a reasonable budget to cover promotional efforts. Cont’d
• When considering how to promote a product,
marketers should determine their target market. • A target market refers to the group of people who may be potentially interested in purchasing the products based on research.
• Determining the target market will help to
construct the message specific to that market. Cont’d • A message refers to the key concept or idea that the business sends out to potential consumers about a product. • It describes the benefits or uses of the product, with the aim to inform the customer and ultimately influence them to make the purchase. • Marketers can then use several different types of methods from each of the elements of the promotion mix. Personal selling What is 'Personal Selling'
• Definition: Personal selling is also known as
face-to-face selling in which one person who is the salesman tries to convince the customer in buying a product. • It is a promotional method by which the salesperson uses his or her skills and abilities in an attempt to make a sale. Cont’d • Description: Personal selling is a face-to-face selling technique by which a salesperson uses his or her interpersonal skills to persuade a customer in buying a particular product. • The salesperson tries to highlight various features of the product to convince the customer that it will only add value. • However, getting a customer to buy a product is not the motive/reason behind personal selling every time. • Often companies try to follow this approach with customers to make them aware of a new product. Cont’d • The company wants to spread awareness about the product for which it adopts/use a person-to- person approach. This is because personal selling involves personal touch; a salesperson knows better how to pitch/deliver a product to the potential customer. Personal selling can take place through two different channels – through retail and through direct-to-consumer channel. Under the retail channel, a sales person interacts with potential customers who come on their own to enquire about a product. Cont’d • The job of the salesperson is to make sure that he understands the need of the customers and accordingly shows various products that he keeps under that category. • Under the direct channel, a salesperson visits potential customers in an attempt to make them aware about a new product that the company is launching or it may have a new offer which the customers may not get from the open market. Exhibitions trade fairs Trade Fairs and Exhibitions • Fairs and exhibitions constitute the means of presenting goods and services in an attractive manner with the aid of color, light and motion in order to catch the imagination of the visitor, attract his attention and get him interested in the goods or products displayed. • They help in reaching the public who may not be reached in any other way or who by nature would disregard from other media of publicity. Cont’d • In other words, exhibition is a congregation/collection of showrooms of different manufacturers under one roof. Exhibition is a huge gathering of businessmen and manufacturers from different parts for the purpose of display, demonstration and booking orders. • Trade fairs are also huge fairs where the display and demonstrations are combined generally with entertainment. Cont’d • Trade fairs and exhibitions play an important role not only in domestic markets but in international marketing too by bringing potential buyers and suppliers/manufacturers in contact and imparting information about the relevant developments around the world. • In certain cases they have a special significance. For example, in Libya where media advertisement for products is not permitted, the annual Tripoli International Trade Fair is very important and popular means to promote products and business. Cont’d • Organizing international trade fairs and exhibitions is not new to humanity but they are now becoming increasingly popular. • Basically, these are the publicity tools where goods are displayed by the manufacturers in an attractive manner in order to catch the imagination of the visiting public and attract them with a view to get them interested in the objects or goods displayed. Cont’d • In trade fairs and exhibitions, generally, the goods are displayed and their working is demonstrated, if the goods are having technical nature with a view to create the demand in the market. • Generally, goods are not offered for sale, they are only displayed but very often consumer goods of small value are sold there on cash terms. Cont’d • Though fairs traditionally have been the medium of trade since time immemorial, the use and popularity of trade fairs and exhibitions has increased tremendously now-a-days. So, has increased the number of trade fairs and exhibitions. • International trade fair is a popular marketing tool in the recent years. • Over 2000 trade fairs are conducted every year in over seventy countries. Some are so popular that exhibitors book space for them years in advance. Cont’d • There is no clear demarcation between an exhibition and trade fair and these terms are commonly interchanged. • A trade fair, however, as its name implies, is target directed. It is staged for the purpose of selling goods or demonstrating new ideas or techniques. An exhibition, on the other hand, is not specifically for trade but for the public. However, in the new concept of exhibition sale is witnessed. Public relations/ publicity Definition of Publicity
• Publicity is defined as the way of disseminating
information to the public at large, through media. • It can be in the form of news, stories, event information or write-ups, that creates awareness and credibility in the people regarding a brand, product or the company offering them. Cont’d • Publicity aims at spreading the information or news, to the maximum number of people, in minimum time. It is a non- paid form of communication, which is not under the control of the company. It can be a positive review regarding a product, i.e. mobile, television, refrigerator, etc. given by a satisfied customer, or information published in the newspaper regarding the quality-rich services provided by a company, or it can be a simple word of mouth, etc. • In a nutshell, publicity has nothing to do with the company’s sales; it is all about creating awareness in general public through editorial/written or unbiased comments concerning a product. Definition of Public Relations
• Public Relations can be understood as the strategic
management tool, which helps an organization to communicate with the public. • Here, ‘public’ means the group of people that have an interest in or impact on a company’s ability to achieve business objectives. • It is not only concerned with getting public attention, but it also aims at reaching the goals of the organization, by communicating the message to the target audience. • It includes press releases, crisis management, social media engagement, etc • Crisis management: is the application of strategies designed to help an organization deal with a sudden and significant negative event. Key Differences between Publicity and Public Relations
The difference between publicity and public relations can
be drawn clearly on the following grounds: • Publicity can be described as public visibility, wherein news or information is communicated to the general public so as to build credibility or awareness in them, with the help of a channel, i.e. mass media. • On the other extreme, the term public relations, as the name suggest, is a strategic management tool, that aims to create a company’s positive image in the eyes of the public. • While publicity is not under the control of the company, public relations is fully under the company’s control. Cont’d • Publicity can be positive or negative, in the sense that it can be positive or negative feedback regarding the product or service concerning a product given by the customer or controversial news about the company. • Conversely, public relations is always positive, because it is strategized and managed by the public relations department of the company. Cont’d • Publicity is free of cost; as it is made by the third party. As against, in case of public relations, the company incurs money to organize events, sponsor programs, third-party endorsement, etc. • Publicity involves, gaining the attention of the media, that communicates any information or news, regarding a product, service, person, organization, etc. so as to create awareness in people. In contrast, public relations seek to attract the target audience, for the purpose of boosting the company’s sales. Sales promotion Meaning and Definitions of Sales Promotion
• Sales promotion is said to be a key ingredient in
the international marketing campaign. • It consists of mostly collection of those short-term incentive tools, which are designed to stimulate purchase of a particular product or service. • In other words, we can say that in national and international marketing, market or sales promotion plays an important role. • If efforts for it are not proper, timely and enough, even good products fail to get satisfactory response. Cont’d • The present information technology and other technical changes and inventions have converted the whole world into a market. • The customers for the product are innumerable and spread over various countries. • In these circumstances market promotion efforts have assumed importance for informing the customers about the product, to make them enthusiastic, to inspire them to purchase more and to preserve them. Cont’d • “Sales promotion means, the steps that are taken for the purpose of obtaining or increasing sales. • Often this term refers specially to selling efforts that are designed to supplement personal selling and advertising and by coordination, help them to become more effective.” • The term ‘sales promotion’ comprises wide variety of promotional activities. Cont’d • According to American Marketing Association, Chicago, “Those marketing activities, other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and demonstrations, expositions/shows and various non-current selling efforts, not in the ordinary routine.” Cont’d • Therefore the activities which link personal selling and advertisement and make them effective are called sales promotion. • The word sales promotion is made of two words i.e., Sales + Promotion. Sales means to charge the price and hand- over the product and service. Promotion means to increase the sales. • Therefore, sales promotion is a continuous process to increase the sale. • Therefore it can be said that any process whose purpose is to increase sale is sales promotion. When a retailer is giving a calendar or any other gift to his customer he is following sales promotion. Definitions given by different scholars 10/09/2015
• According to G.W. Hopkins, “Sales promotion
is an organized effort applied to the selling job to secure the greatest effectiveness for advertising and for dealer’s help.” • According to John F. Luick & William Lee Ziegler, “Sales promotion as a tool of marketing promotion gives rise to increase in product usage as well as expansion of markets for a product or introduction of a new product.” Cont’d • According to Harold Whitehead, “Sales promotion includes the dissemination of information to wholesalers, retailers, customers- actual and potential and not least to the firm’s own salesman.” • According to L.K. Johnson, “Sales promotion consists of all those activities whose purpose is to supplement, to coordinate and to make sure more effective the efforts of the sales force, of the advertising department, and of the distributors and to increase sales and otherwise stimulate consumers to take greater initiative in buying.” Conclusion • On the basis of analytical study of above definitions, it can be concluded that the major function of sales promotion is to serve as a connecting link or a bridge between advertising and personal selling which are the two wings of promotion. • Sales promotion includes all these activities (except advertising, publicity and personal selling) which attract both the distributors and consumers towards goods and services of the enterprise so that the sales of the enterprise may increase. Cont’d • Through effective advertisement work, sales promotion helps salesmen to boost up selling. Producers can introduce new products by sales promotion. It reminds the consumers about the product through advertisement. • Nowadays sales promotion has been recognized as the most accepted tool of marketing. The sales managers are under much pressure to increase the sales. To cope such a pressure, they emphasize more on promotional tools to increase the sales of the organization. Advertising in the global situations Cont’d • In general advertising is the process of creating awareness about goods, ideas, products, and services. However, when the focus is on markets across the shore of a single country or nation, it is referred as international or global advertising. • Global advertising can be done by utilizing multiple communication strategies such as social media, a website, and television commercials. Major factors for advertising globally include demographics, culture, economy, and politics. Cont’d • Global /International/ Advertising is the type of advertising undertaken by those companies, which operate in more than one country, known as ‘multinational’. • Global advertising therefore, entails/involves dissemination of a commercial message to target audiences in more tan one country. • Exporters, generally advertise their products and services in foreign countries, where ready markets are available. Ethiopian air lines , and other multinational companies advertize their products and services all over the world. Coca-cola and Pepsi are advertised their soft drink products, globally, as their sales are almost all over the world. Cont’d • Global advertizing is extremely expensive, involving the services of professional advertising agencies in different countries. • Global advertising is expensive because it is a form of communication that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. Cont’d • In a nutshell/Summed up briefly, global advertising is structured and composed non personal communication of information, usually paid for and by and large persuasive in nature, about international products /goods, services, and ideas/ by an identified multinational sponsors through various foreign media. • These means, global advertising covers business activity involving advertisers and the advertising agencies that create adverts and buy media in different countries. Advertising standardization versus local adaptation Cont’d • Product adaptation means that the firm adapts the product to the local markets. • It is the process of modifying products for different countries and regions or designing new products for foreign markets. • Product standardization means that the firm sells and advertises a standardized product in the international context. Cont’d • “The primary international advertising topic over the past five decades is the question of whether, and to what degree, advertising can and should be standardized” or adapted to be effective. • The extent of adaptation of advertisement to the local environment of a society is a critical decision, as it can largely impact the effectiveness of advertising campaigns. • Advertising standardization uses a uniform advertising strategy for different countries. This approach can reinforce a brand’s global identity/distinctiveness and lead to cost reduction through economies of scale. Cont’d • On the other hand, the differences between nations and consumers' tastes around the world encourage marketers to tailor (adapt) their advertising to local cultures and tastes. • A number of studies reveal that (at least some degree of) adaptation of advertising can benefit consumers’ attitudes and purchase intentions. • It is argued that besides these individual-level characteristics, the environmental variable of national openness to foreign markets has a strong predictive capability for consumer responses to advertising adaptation, which marketers can use for macro level segmentation and positioning. Thank you That is the end of the fifth chapter
Marketing Management for Beginners: How to Create and Establish Your Brand With the Right Marketing Management, Build Sustainable Customer Relationships and Increase Sales Despite a Buyer’s Market