CHAPTER EIGHT

INTERNATIONAL PROMOTION
Promotion refers to techniques of communicating information about products. Promotion includes
a combination of personal selling and/or non-personal selling, including advertising, sales
promotion, public relations/publicity, trade fairs/exhibition/ and others.
Promotional objectives: how business aims and translate into marketing objectives (E.g. raising
awareness of product/service, creating distinctive market presence, increasing market share);
targeting relevant audience (attitudes, interests, opinions, aspirations, demographics (E.g. Age,
gender)); Business to Business (B2B); Business to Consumer (B2C); segmentation (E.g. First-
time buyers)…..
8.1. Complexities and Issues In International Promotion
All effective marketing communication has four elements: a sender, a
message, a communication channel and a receiver (audience). To
communicate in an effective way 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. However,
sometimes the audience cannot hear clearly what the sender is trying to say
about its product because of the ‘noise’ of rival manufacturers making similar
and often contradictory claims about their products.
Another important point to consider in the model is the degree of ‘fit’
between medium and message. For example, a complex and wordy message
would be better for the press than for a visual medium such as television or
cinema.
Difficulties associated with international promotion are also includes:-
♪ Availability of agencies, media, research facilities;
♪ Control issues - control of agency, campaign, expenditure;
♪ Message difficulties E.g. message not getting through to intended recipient - message getting
through but not understood; message getting through, understood but no action resulting;
♪ Lack of support from retailers, etc.
♪ Market issues - location, dispersion, buying power, reachability.
Other factors affecting the communication situation
Ü Language differences: A slogan or advertising copy that is effective in one language may
mean something different in another language. Thus the trade names, sales presentation
materials and advertisements used by firms in their domestic markets may have to be adapted
and translated when used in other markets.
Ü Economic differences: In contrast to industrialized countries, developing countries may have
radios but not television sets. In countries with low levels of literacy written communication
may not be as effective as visual or oral communication.
Ü Sociocultural differences: Dimensions of culture (religion, attitudes, social conditions and
education) affect how individuals perceive their environment and interpret signals and
symbols. For example, the use of color in advertising must be sensitive to cultural norms. In
many Asian countries white is associated with grief; hence an advertisement for a detergent
where whiteness is emphasized would have to be altered for promotional activities in, say,
India.
Ü Legal and regulatory conditions: Local advertising regulations and industry codes directly
influence the selection of media and content of promotion materials. Many governments
maintain tight regulations on content, language and sexism in advertising. The type of product
that can be advertised is also regulated. Tobacco products and alcoholic beverages are the
 most heavily regulated in terms of promotion. However, the manufacturers of these products
have not abandoned their promotional efforts. Camel engages in corporate image advertising
using its Joe Camel. Regulations are found more in industrialized economies than in
developing economies, where the advertising industry is not yet as highly developed.
Some of the legal and regulatory issues also include: For instance: Comparative advertising,
specific product prohibitions, use of media, and truth in advertising…..
Ü Competitive differences: As competitors vary from country to country in terms of number,
size, type and promotional strategies used, a firm may have to adapt its promotional strategy
and the timing of its efforts to the local environment.
Ü Technology: The technology is in place for global communication efforts, but difficult
challenges still remain in the form of cultural, economic, ethnic, regulatory, and demographic
differences in the various countries and regions.
Ü Standardization: Standardization of any magnitude requires sound management systems and
excellent communication to ensure uniform strategic and tactical thinking of all the
professionals in the overseas marketing chain. One marketer has suggested the development
of a worldwide visual language that would be understandable and that would not offend
cultural sensitivities.
8.2. Promotion Tool For International Markets
8.2.1. Advertising In The Global Situations
Meaning
Advertising: Any paid form of non-personal presentation of ideas, goods, or
services by an identified sponsor, with predominant use made of mass
communication, such as print, broadcast, or electronic media, or direct
communication that is pinpointed at each business-to-business customer or
ultimate consumer using computer technology and databases.
[Link]. International Advertising Decisions
The international advertiser must ensure appropriate campaigns for each market and also to get
coordination among the various national programs. There are eight decision areas in international
advertising: (1) Advertising objectives (2) determining the budget, (3) choosing the message, (4)
selecting the media, (5) selecting the agency (or agencies), (6) organizing for advertising, and (7)
deciding whether to engage in cooperative adverting abroad, (8) evaluating advertising
effectiveness.
1. Advertising objectives
It can be classified according to whether their aim is to inform, persuade, or remind:
a) Informative advertising: figures heavily in the pioneer stage of a product life category, where
all objectives is to build primary demand.
b) Persuasive advertising: becomes important in the competitive stage, where a company's
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 more brands
in the product class.
c) Reminder Advertising: is highly important with mature products. A related form of advertising
is reinforcement advertising, which seeks to assure current purchasers that they have made the
right choice.
2. Setting the International Advertising Budget
Among the controversial aspects of advertising is determining the proper method for setting the
advertising budget. This is a problem domestically as it is internationally. Yet because the
international advertiser must try to find an optimum outlay for a number of markets, the problem
is more complex on the international level.
Firms have developed practical guidelines to determine advertising budget.
a. Percentage-of-sales /Affordable/ Approach. An easy method for setting the advertising
appropriation in a country is based on percentage of sales. Whereby the firm automatically
allocates a fixed percentage of sales to the advertising budget.
b. Competitive-parity Approach. Involves estimating and duplicating the amounts spent on
advertising by major rivals. Matching competitor’s advertising outlays.
c. Objective-andTask Approach. The weaknesses of the above approaches have led some
advertisers to the objective-and-task method, which begins by determining the advertising
objectives, expressed in terms of sales, brand awareness, or something else, then ascertaining
the tasks needed to attain these objectives, and finally estimating the costs of performing these
tasks.
3. Choosing the Advertising Message
This concerns decisions about what unique selling proposition (USP) needs to be
communicated, and what the communication is intended to achieve in terms of consumer
behavior in the country concerned. These decisions have important implications for the choice of
advertising medium, since certain media can better accommodate specific creative requirements
(use of color, written description, high definition, demonstration of the product, etc.) than others.
A major decision for the international marketer is whether the firm should use national or
international advertising appealsa localized or standardized approach. The goal in either
case is to fit the market.
4. Selecting the Media
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.
Furthermore, media selection can be based on the following criteria:
Ü Reach. This is the total number of people in a target market exposed to at least one
advertisement in a given time period (‘opportunity to see’, or OTS).
Ü Frequency. This is the average number of times within a given time period that each potential
customer is exposed to the same advertisement.
Ü Impact. This depends on compatibility between the medium used and the message.
Penthouse magazine continues to attract advertisers for high-value-added consumer durables,
such as cars, hi-fi equipment and clothes, which are geared primarily to a high-income male
segment.
The following are the media generally used for advertising purposes: Broadcast and Print
Media
o Television o Magazines
o Radio o Direct mail o Stadium
o Newspapers o Screen (Cinema) o Media Mix
o Internet o Directories o Outdoor advertising
Outdoor advertising includes posters/billboards, shop signs and transit advertising. This medium
shows the creative way in which space can be sold to customers.
Directories are books that provide listings of people, professions, and institutions. The yellow
page telephone directories, with a listing of various types of companies, are a prime example.
Directories may be sold or given away free of charge.
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
well as local newspaper.
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:-
a. Objective of the advertisement c. Requirements of the message
b. Audience Coverage d. Media Cost
5. Selecting the Agency
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.
The criteria relevant to the choice of a national or an international agency include the following:
♪ Policy of the company. ♪ Nature of the advertising to be
undertaken.
♪ Type of product.
6. Organizing for International Advertising
The firm has basically three organizational alternatives:
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
alternatives. Of course, the question of organizing for international advertising cannot be
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.
8. Using Cooperative Advertising
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.
7. Evaluating International Advertising Effectiveness
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.

[Link]. Advertising Standardization Versus Local Adaptation

Standardization allows the realization of economies of scale in the production of advertising
materials, reducing advertising costs and increasing profitability. Unified advertising refers to
the policy where the advertising in domestic market is extended to foreign markets in its forms,
appeals and other selling propositions.
On the other hand, in diversified advertising strategy, the advertising is not the same as in the
domestic market but it requires proper adaptation of the advertising strategy to various elements
such as religion, culture, traditions, etc., of diverse nature peculiar to the foreign market or market
segment.
In reality it is not a question of either/or for the internationally oriented firm it is more a question
of the degree of standardization/localization. A study by Hite and Frazer (1988) showed that a
majority (54 per cent) of internationally oriented firms were using a combination strategy
(localizing advertising for some markets and standardizing advertising for others). Many of the
global companies using standardized advertising are well known (e.g. Coca-Cola, Intel, Philip
Morris/ Marlboro).
Points in Favor of Standardized/Unified Advertising Strategy
♪ It is sometimes argued that within certain geographical areas the customs, cultures, traditions
and demand structure are increasingly becoming standardized or uniform due to extensive
information flow and increased international travel.
♪ Consumer differences are diminishing sharply due to increased travelling from one country to
another and, therefore, common advertisements can be used in different countries with slight
modifications to suit the local requirements.
♪ One of the proponents of the unified advertisement strategy feels that consumer motivation,
that is better living for himself and his family, is the same in all parts of the world.
Points in Favor of Diversified/Local Adaptation Advertising Strategy
International marketer must keep in mind the following factors that favor the diversified
advertising strategy:
a. The cultural background of a consumer in a foreign market may be quite different
b. The choice of wrong media in the target market may fail the campaign

8.2.2 Personal Selling

Personal selling: The process of assisting and persuading a prospect to buy
a good or service or to act on an idea through use of person-to-person
communication with intermediaries and/or final customers.
Personal selling is two-way, face-to-face, personal communication between a company
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 backgrounds. It is
difficult to overstate the importance of a face-to-face, personal selling effort for industrial
products in global markets.

[Link]. The International Sales Force Organizational Structure

Structure Factors favoring choice of Advantages Disadvantages
organizational structure
Geographic  Distinct languages or  Clear, simple  Breadth of customers
cultures  Incentive to cultivate  Breadth of products
 Single product line local business and
 Underdeveloped personal ties
markets  Travel expenses
Product ♪ Established ♪ Product knowledge ♪ Travel expenses
market ♪ Overlapping territories or
♪ Broad product customers
lines ♪ Local business and personal
ties
Customer* Broad product lines Market/customer Overlapping territories/products
knowledge Local business and personal ties
Travel expenses
 Combination o Large sales volume o Maximum flexibility o Complexity
o Large/developed o Travel expenses o Sales management
markets o Product/market/geography
o Distinct language overlap
cultures
*By type of industry, size of account, channel of distribution, individual company.
[Link]. Type of International Sales Force
Ü Expatriate salespersons. These are viewed favorably because they are already familiar with
the firm’s products, technology, history and policies. Thus the ‘only’ kind of preparation they
would need is a knowledge of the foreign market.
Ü Host country nationals. These are personnel who are based in their home country. As native
personnel they have extensive market and cultural knowledge, language skills and familiarity
with local business traditions.
Ü Third country nationals. These are employees transferred from one country to another. They
tend to be born in one country, employed by a firm based in another country and working in a
third country.
Advantages and disadvantages of sales force types
Category Advantages Disadvantages
Expatriate Product knowledge Highest costs
High service levels High turnover
Train for promotion High training cost
Greater home control
Host country Economical Needs product training
High market knowledge May be held in low esteem
Language skills Importance of language skills
Best cultural knowledge declining
Implement actions sooner Difficult to ensure loyalty
Third country Cultural sensitivity Face identity problems
Language skills Blocked promotions
Economical Income gaps
Allows regional sales coverage Needs product/company training
May allow sales to country in Loyalty assurance
conflict with the home country

[Link]. Selling Process

The selling process is typically divided into several stages: prospecting,
pre-approaching/problem solving, approaching, presenting, handling objections, closing 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 of
purchase. Successful prospecting requires problem-solving techniques, which involve
understanding and matching the customer's needs and the company's products in developing a
sales presentation.
♪ The purpose of the pre-approach or problem solving stage is to gather information on a
prospective customer's problem areas and tailor a presentation that demonstrates how the
company's product can solve these specific problems.
♪ The next two steps, the approach and the presentation, involve one or more meetings
between seller and buyer.
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 listening;
naturally, in cross-cultural selling, verbal and nonverbal communication barriers present
special challenges for the salesperson.
♪ When objections are successfully overcome, the salesperson moves on to the close and asks
for the order.
♪ 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.

8.2.3. Sales Promotion

Sales promotion: Direct inducements that provide extra product value or
incentive to the sales force, intermediaries, or ultimate consumers.
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. The
success of a sales promotion may depend on local adaptation. Major constraints are imposed by
local laws, which may not permit premiums or free gifts to be given.
The main objectives of sales promotion activities are as under:
1. Providing Information 4. Reducing Seasonal Decline
2. To stimulate nonusers to sample a 5. Developing Preferences and Conviction
product of Buyers
3. Increase in Sales 6. To Keep Memory Alive
Sales promotion laws and usage vary around the world but may consist of any of the following
two kinds of sales promotion:
1. Consumer Oriented Sales Promotion 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.
E. Cash Refund Offer (Rebates)
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 Oriented Sales Promotion that are aimed at wholesalers, retailers, distributors, agents,
brokers (e.g., volume discounts, advertising allowances).
A. Contests and Incentives
Contests or special incentives are often targeted at the sales personnel of the wholesalers,
distributors/dealers, or retailers.
B. Trade Allowances
A discount or deal offered to retailers or wholesalers to encourage them to stock, promote, or
display the manufacturer’s products. Types of allowances offered to retailers include buying
allowances and promotional or display allowances.
C. Sales Training Programs
Sales training programs for reseller personnel.
D. Trade Shows
A forum where manufacturers can display their products to current as well as prospective
buyers.
E. Free Goods
Offers of extra units or packs of merchandise to intermediaries who buy a certain quantity or
who feature a certain flavor or size.

8.2.4. Public Relations/Publicity

[Link]. Public Relations
♣ Public relation may be defined as follows:
A public is any group that has an actual or potential interest in or impact on a company's ability
to achieve its objectives.
Public relation (Sponsorship): The practice of promoting the interests of
the company by associating it with a specific event (typically sports or
culture) or a cause (typically a charity or a social interest). PR involve a variety of
programs designed to promote and/or protect a company's image or its individual products. This
means that public relations is 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:
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.
2. Product publicity- Sponsoring various efforts to publicize specific products.
3. Corporate communication-Promoting understanding of the organization with internal and
external communications.
4. Lobbying-Dealing with legislators and government officials to promote or defeat legislation
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
acceptance among a company’s various constituents and publics.

[Link]. Publicity
Publicity: Any form of nonpaid, commercially significant news or editorial
comment about ideas, products, or institutions.
OR
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 story appearing
in a mass medium or an endorsement provided by an individual, either informally or in a speech
or interview.
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 vehicles for gaining good publicity are:
1. Prepare a story (called a news release) and circulate it to the media. The intention is for 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.
3. Press Conferences: Meetings and presentations to invited reporters and editors.
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
group, or event is viewed by the media as news worthy.
8.2.5. Exhibitions/Trade Fairs
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 prospective
customers, suppliers, other business associates and the press.
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
(e.g. secondary information).
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
involvement may find the investment worthwhile.

Trade Show Selection:

♣ Number of International Shows ♣ Number of Regional Shows
♣ Number of National Shows ♣ Emphasis on Show Types

8.3. Developing The Promotion Campaign For Foreign Markets

Be able to create a simple promotional campaign….
Ü Campaign brief objectives. E.g. Target audience, budget
Ü Creative brief objectives. E.g. To reach a given audience
Ü Selection of content: Communication of promotional message E.g. Features, performance,
benefits, quality, reliability
Ü Campaign tactics: Reach given target group; selection of appropriate media; selection or
design of suitable promotional materials/images; text and script according to media type;
target audience; objectives; budget; selection of images. E.g. Color, impact, visibility, style,
pace; other sensory dimensions; presentation; focus groups; stages – use of storyboards e.g.
mock-up, final proof, review, planning of next stage
Ü Developing a promotion plan: Choosing promotion mix; objectives; integration into wider
marketing mix; timing; frequency; cost; using promotion plan; media mix; use of internet
Planning Promotional Campaigns
The planning for promotional campaigns consists of the following seven stages, which usually
overlap or take place concurrently, especially after the basics of the campaign have been agreed
on:
1. Determine the target audience 5. Determine the message
2. Determine specific campaign objectives 6. Determine the campaign approach
3. Determine the budget 7. Determine campaign effectiveness
4. Determine media strategy