International Marketing - CITY COLLEGE OF SAN FRANCISCO · International sales promotion...

International

Marketing

© Daniel W. Baack, Barbara

Czarnecka & Donald Baack

Part Six

International promotion

Chapter 16

International sales promotions

and public relations

Learning objectives

1. What are the relationships between international consumer

promotions, trade promotions, push strategies, and pull

strategies?

2. How do international consumer promotions help a

company achieve its marketing goals?

3. When are international trade promotion incentives used?

4. How does the public relations team or department handle

negative publicity or image-damaging events?

5. How can the public relations function help build a positive

image of a company and its brands?

4

Learning objective #1

• What are the relationships between international consumer

promotions, trade promotions, push strategies, and pull

strategies?

6

International sales promotions

• Sales promotions are marketing activities designed to

stimulate consumer and marketing channel demand for a

product or service. Sales promotions take two major forms:

consumer promotions and trade promotions.

• Consumer promotions are directed at retail customers.

Consumer promotions include coupons, sweepstakes,

refunds and rebates, premiums, bonus packs, price-off

programs, and samples.

• Trade promotions are aimed at intermediates, most notably

wholesalers and retail outlets. Trade promotions consist of

trade allowances, trade contests, trade shows, and point-of-

purchase materials. Social media can be aimed at both

consumer and trade groups. 7

International sales promotion

• International sales promotion efforts focus on stimulating demand across national or cultural boundaries.

– Some of these efforts concentrate on short-term goals, especially when sales promotions are aimed at stimulating the immediate purchase of products or services.

– Effective strategic international sales promotion programs also work to achieve longer-term objectives, such as building brand loyalty and strengthening the company’s image.

• International marketers take cultural differences into account when designing sales promotion programs.

8

Push vs. pull strategies

• A push strategy occurs when a marketer promotes a

product to intermediaries.

– In general, these efforts are aimed at wholesalers first,

who then promote the product to retailers.

– Retailers promote the product to consumers.

– Here, the product demand is pushed downward through

the marketing channel.

• Trade promotions represent push strategy techniques.

– They focus specifically on establishing intermediary

demand and support.

9

Push vs. pull strategies

• A pull strategy focuses on stimulating product demand at

the consumer level.

– When a consumer expresses interest in a product at the

retail store, retailers are encouraged to carry the item.

– The product will be ordered from wholesalers who

purchase the product from the manufacturer.

– Demand for the product is “pulled” through the marketing

channel by the consumer from the intermediary and then

the manufacturer.

• Consumer promotions support pull strategies because the

individual buyer receives the incentive.

10


• How do international consumer promotions help a company

achieve its marketing goals?

11

International consumer promotions

• The use of international consumer promotion tactics has

grown dramatically in the past several years.

– Decreasing mass media budgets, the fragmentation of

media audiences, difficulties with measuring mass media

effectiveness, the increasing power of retailers, and

advertising clutter all contribute to this growth.

• Many international consumers have either tuned out mass

media advertising, or have cynical attitudes about

advertising.

– Making a personal connection has become more

important.

12


• International marketers often find that consumer promotion

techniques that are ineffective in one market or country are

highly effective in another market or country.

13

Top twenty countries for internet sage (pop.300,000 or above)

14

Consumer promotions goals

• International marketers often use these consumer

promotions with one or more of the following goals in mind:

– Obtaining initial trial usage of a product by consumers

– Increasing consumption of an existing brand

– Building brand loyalty

– Maintaining or building market share in mature markets

– Preempting competitive efforts, including competitor

consumer promotions

– Supplementing advertising and personal selling activities

15


16

Coupons

• Coupons are certificates that allow consumers to save on the cost of specific products or services.

• They are popular with many consumer groups and marketers have used them for many years. Coupons can help stimulate product trials, especially when a new product is being marketed.

17

Premiums

• A premium is an item offered as a reward for purchasing another item.

– The reward item is usually given free of charge, but it can sometimes be priced modestly, sometimes under the guise of a shipping and handling fee.

– Premiums take the form of gifts or prizes.

– A premium represents an additional incentive for a consumer to buy a product.

• Consumer acceptance of premiums tends to vary by culture.

– A recent study of grocery shoppers in Hong Kong revealed that premium programs were more effective than either contests or sweepstakes.

18

Premiums

• Premiums incur the costs associated with developing the

prize or reward.

19

Bonus packs

• A bonus pack offers additional merchandise in a package

for the same price, such as a “buy three, get one free”

package of bar soap.

– A bonus pack may also take the form of a bottle that is

larger than the product’s standard size and is marked

“25% more, free.”

– Bonus packs are often used when the goal is to entice

consumers to stock up on a given item.

– This decreases the chance that the consumer will switch

to a competitor, and can be a proactive way to protect a

product’s market share.

20

Bonus packs

• Bonus packs incur the additional expense of providing extra

merchandise at the standard price.

– Also, shipping costs become greater when items are sent

greater distances, and bonus packs will be bulkier and

heavier.

– Such costs may be more dramatic when products are

shipped long distances or across international borders.

21

Contests and sweepstakes

• Contests are promotions with gamelike qualities that rely on

a consumer's skill at some activity.

– The winner of the contest receives a prize in the form of a

product or money.

• Sweepstakes rely on chance drawings of consumer names

in order to select the winner of a promotion.

• Although these techniques often lead to immediate

consumer responses, they may not have an impact on long-

term sales.

22

Contests and sweepstakes

– Consumers sometimes quickly lose interest in a product

or brand after the contest or sweepstakes has ended.

– At that point, a new form of promotion should be

designed to sustain consumer involvement.

• Participation and interest in contests and sweepstakes are

strongly influenced by cultural norms as well as by local

political and legal systems.

23

Rebates

• Rebates require consumers to mail a form along with a receipt or proof of purchase in order to receive money back from the manufacturer or retail outlet.

– This type of sales promotion tends to work well at generating consumer interest.

• Not every consumer will take the time or expend the effort necessary to receive a rebate which can increase profit.

• Effective method for generating attention and interest

– Can also be useful tools for salespeople who attempt to sell products to end users, especially in international markets

– Can be effective for gaining entry into new markets

24

Price-off promotions

• Price-off promotions present the consumer with an

immediate price break, expressed as a percentage of the

price or an absolute amount.

– The manufacturer can push this type of promotion by

printing the price on a product’s package, or a retailer

might offer the price on a shelf tag signage.

• Consumer responses to price-off promotions tend to be

generally favorable.

• Marketers run the risk of teaching consumers to wait for

special pricing deals before buying the products if they use

this technique too often.

25

Price-off promotions

– Price-off reductions also reduce revenues and can cut

into bottom-line profits.

– Only when additional volume offsets the price cut is the

program cost effective.

– Price-offs may help to fend off competitive offers, thereby

sacrificing short-term revenues for longer-range customer

loyalty.

26

Sampling

• A consumer is able to try a product free of charge in a

sampling program.

– Sampling helps to stimulate consumer interest in a

product as it reduces purchase risk.

– The consumer can take advantage of testing the product

without paying any money.

– Samples are often mailed to consumers or are given out

in retail outlets.

– Retailers throughout the world often offer free samples to

consumers in order to entice them to make purchases.

27

Sampling

• Sampling can be particularly effective at boosting short-term

sales because the vast majority of consumers who try a

product will buy the product at least once.

– Social networking sites also offer consumers an efficient

method of requesting a product sample.

• Sampling programs can be coupled with other consumer

promotions.

– Once a free sample has been given, the consumer may

be presented with a coupon redeemable at the first

purchase.

28

Social media and consumer promotions

• Social media and social networking sites such as Facebook

have become important components of marketing strategy.

– The majority of international Internet users visit social

networking sites regularly.

• International marketers employ social networking sites for

advertising and send promotional materials such as

coupons and contest entries directly to consumers.

– Consumers are able to register for contests and to print

coupons directly from these sites. Consumers can

become fans of companies and brands by joining their

social networking pages.

29

Social media and consumer promotions

• Facebook and Twitter are often targets of international

marketing efforts, but firms also pay attention to foreign

sites because the popularity of these media varies by

country.

• While social media sites tend to appeal to younger

segments, the use of the media cuts across demographics.

– In some countries, Internet access is limited to those with

higher incomes.

30

Legal issues in consumer promotions

• Many countries regulate what is a standard price and how

often prices can be reduced through techniques such as

price-off programs.

• Offers such as “three for the price of two” are illegal in some

European countries.

• Sampling programs can face legal restrictions as to where

they can be distributed, or require a permit to give them in

various parts of a city.

31

Legal issues in consumer promotions

• In Canada, a contest cannot offer money solely as a prize

and the contest must test some type of skill.

• The marketing team would wish to know if coupons can be

copied and redeemed by retailers that do not actually

receive them.

32

Types of consumers and international consumer promotions

• Promotion-prone consumers take advantage of promotions.

– They are not loyal to any given brand and look for the

best deal.

• Price-sensitive consumers use price as the only purchase

criterion.

– They take advantage of consumer promotions that reduce

the price or increase a purchase value, such as a bonus

pack offer.

• Brand-loyal consumers purchase a favored brand

regardless of substitutes.

33

Types of consumers and international consumer promotions

– Promotions targeted at this group should work toward

maintaining loyalty and increasing consumption.

• Preferred-brand consumers select from a set of brands they

favor most.

– The right consumer promotion can make the difference in

a purchase decision.

34

Consumer promotions and bottom-of-the-pyramid consumers

• Bottom-of-the-pyramid consumers may be targeted with consumer promotions that are based on price.

– Couponing and bonus packs, as well as special price-off promotions, can all be effective methods of promoting items to these consumers.

• Many bottom-of-the-pyramid consumers do not live close to any traditional retail outlets, so in many cases products are transported to remote areas or villages where many of these consumers live.

– This can be expensive for the international marketer, but the goodwill associated with the effort can outweigh the short-term monetary costs.

35

Consumer promotions and bottom-of-the-pyramid consumers

• The concern is that bottom-of-the-pyramid consumers may

wait for the next promotion instead of transitioning to buying

the product at a higher price.

– Promotions that cause a loss may be ineffective to

penetrate this market.

36


• When are international trade promotion incentives used?

37

International trade promotions

38

Trade shows

• A trade show gathers industry representatives to examine

products and services presented to prospective buyers.

• Trade shows generally focus on generating buyer interest.

– Shows are also useful for making contacts with industry

representatives.

– One advantage is that a product can be demonstrated at

the show.

• In general, a greater percentage of promotional

expenditures are allocated to trade shows in Europe than in

other regions of the world.

39

Trade shows

• Marketing teams examine the cultural context surrounding a

trade show.

– The trade show attendees may be corporate officers

authorized to finalize purchases.

– The use of female decorative models to adorn products

may be routine in one country and inappropriate in

another.

40

Trade allowances

• A trade allowance is a price

reduction or other

consideration paid by a

company to intermediaries

as an incentive to purchase

or promote a specific

product.

• Many types of trade

allowances are available to

international marketers.

41

Off-invoice allowances

• Invoice allowances, which are often referred to as “off-

invoice” allowances, are price reductions taken off orders

(literally off the invoice for the order) based on agreements

between the manufacturer and the retailer.

– These invoices identify a predetermined purchase

quantity that triggers the discount.

42

Off-invoice allowances

• The price incentives directly increase the margins that

retailers realize, and as such, they are generally viewed

quite favorably.

– An example of an off-invoice allowance occurs when an

international marketer, such as Samsung, grants a price

break to wholesalers who distribute a certain volume of

Samsung products internationally.

43

Bill-back allowances

• A bill-back allowance takes the form of a monetary allowance presented to the retailer or intermediary at the end of a promotional period.

– In order to qualify for the allowance, the intermediary must perform one or more promotional activities, such as putting up displays, providing free samples, redeeming consumer coupons, or offering price cuts.

• Bill-back programs increase the manufacturer’s reach by creating incentives for additional marketing activities.

– Merchandise sold as a result of those marketing activities will be at full price.

– Only the actual marketing activity creates additional costs.

44

Bill-back allowances

– These programs often help create positive relationships

between manufacturers and intermediaries, which will be

crucial to the success of international marketing

campaigns.

• Large international beverage marketers, including Pepsi and

Coca-Cola, utilize these allowances for retailers.

– The retailer initially pays for the activity, and then submits

an invoice to the manufacturer for the cost, thus leading

to the term “bill back.”

45

Slotting fees and slotting allowances

• A slotting fee or slotting allowance is a payment made by a

manufacturer to a retailer in order to secure shelf space.

– Retailers set fees based on the amount of space allotted

to a product, such as a twelve-inch space on an eye-level

shelf, or an eighteen-inch space on a ground-level shelf.

– Slotting fees help to spread the risk of new product

introductions between the retailer and manufacturer.

• Slotting allowances are common in European countries

where they are generally referred to as listing fees.

– They are also prevalent in the United States and in all

parts of the world.

46

Display allowances

• A display allowance promotion involves a retailer contracting

with a manufacturer to place a product display in a

prominent location in the retail outlet for a predetermined

amount of time.

• When the retailer agrees to the terms of the allowance and

performs the activities as agreed, the company earns an

incentive in the form of a rebate at the end of the

promotional period.

47

Display allowances

• Display allowances are common in the grocery market

where large manufacturers encourage retailers to help

promote products.

– Proctor & Gamble pays Nucare, a British pharmacy,

display allowances to receive key shelf locations and

prominent displays.

48

Cooperative advertising

• Cooperative advertising, or co-op advertising, results from

an agreement between a manufacturer and an intermediary.

– Under a co-op advertising arrangement, a manufacturer

agrees to pay for part of the advertising expenses of a

retailer when the retailer promotes a product in a local

market.

• Co-op advertising agreements are widely used.

• Co-op advertising continues to grow in popularity, much like

slotting fees, when the risks and marketing costs of

products are split between international marketer and

retailer.

49

Trade contests

• Manufacturers develop trade contests to provide a reward

or incentive for intermediaries that either reach certain sales

goals or outsell other intermediaries.

– These contests have proven to be effective in some

international markets.

• From the retailer’s perspective, it will be necessary to

balance winning a given sales contest with providing

information and service about other products not in the

contest.

– When retail salespeople become overly focused on one

marketer’s contest, other products may be neglected.

50

Training programs

• Manufacturers often offer training programs to marketing

intermediaries as part of a trade promotions effort.

– Although training does not necessarily apply to every

industry, it can be an important form of trade promotion

for complex products.

– IBM Business Solutions offers a number of trade

promotions and training opportunities for retail customers.

• Training retail sales personnel can be valuable in an

international context.

– Training programs have been positively correlated with

increased sales and productivity.

51

Point-of-purchase materials

• Point-of-purchase materials take a variety of forms, but the

goal is the same: to encourage the immediate sale of the

product by the end user.

• Point-of-purchase materials can be classified as trade

promotions because they assist intermediaries, most

generally retailers, in promoting a product to the end user.

– These materials are effective because many items that

are purchased in retail stores are chosen on impulse with

little or no preplanning.

52

Point-of-purchase materials

– Marketers understand that making contact with

consumers at the point of purchase increases the

probability of a product being chosen.

• Trade allowances are often provided by manufacturers in

exchange for the placement of point-of-purchase materials.

– Retailers understand the value of display space on retail

floors and often charge for the use of the space.

53

International concerns for point-of-purchase materials

• In many countries, few big-box stores are present, making

space more of a premium.

– When designing point-of-purchase displays to be sent to

an international customer, the marketing team first

examines the amount of retail space available for

displays.

• Cultural factors need to be considered including the most

popular and symbolic colors, proper language, and other

local circumstances.

54

Challenges internationally

• Varying levels of access to new technologies continue to

present a major challenge in the area of international sales

promotions.

– In lesser-developed regions of the world, sales

promotions, such as sampling, take on additional

importance.

• Varying consumer responses to the individual sales

promotion techniques

– Couponing and in-store promotions are particularly

popular in Europe, as are direct mail campaigns.

55


– Direct mail has taken on a smaller role in the United

States.

– Mobile couponing is especially popular in Japan and

Korea.

• International marketers also consider legal differences and

restrictions that are placed on sales promotion activities

worldwide.

– Language differences also pose a serious challenge for

international marketers, as does the appropriate selection

of social networking sites.

56


• Large retailers, including chains such as Tesco (United

Kingdom), Carrefour (France), and Wal-Mart (United

States), as well as regionally based chains, hold increasing

channel power.

• Big-box retailers carry thousands of products, presenting

consumers with seemingly endless options.

– Manufacturers are compelled to offer trade promotions to

gain favor with retailers and achieve placements in stores.

57


• Many suppliers believe trade promotions are the only

effective tool available to keep other companies from

capturing space on shelves.

– Especially true for international companies attempting to

gain shelf space in foreign countries in the face of rapidly

growing global competition

58

International sales promotions campaign management

• Company leaders decide whether local offices, regional

offices, or world headquarters will manage the promotions.

– Ultimately the decision may boil down to standardization

versus adaptation.

– Although adaptation offers the advantage of catering to

local market needs, it can dilute the image of a brand

globally due to contradictory messages being delivered.

• A complicating factor is that in many instances sales

promotions must change due to the wide variance in

technological availability.

59

International sales promotions campaign management

• International marketers should ensure that sales promotions

are managed strategically.

– To ensure continuity of communication and message,

each promotion should fit within the overall strategic

direction set by marketing managers, which constitutes a

critical part of the success of a promotional campaign.

60

An example: marketing facial tissues

• When marketing facial tissue products, all of the elements

present in the international marketing context should be

addressed. With regard to culture, facial tissue is used in a

variety of ways, dependent on the country or region where it

is sold.

– In Taiwan, paper towel products are not widely available.

Spills are cleaned up with facial tissue.

– In other nations, facial tissue is used as toilet paper, even

though technically the two are different.

– In Western culture, facial tissue may be for more than

sniffles: women employ it to remove makeup.

61


– Bottom-of-the-pyramid customers may not even be

acquainted with the product.

• The language of facial tissue also varies.

– The French call them mouchoirs.

– The Swedish version is ansiksservetter.

– At the same time, the term “Kleenex” remains the same in

France or Sweden.

62


• Governments may regulate the ingredients used to create

facial tissue.

– As greater environmental concerns emerge regarding

deforestation, an impact on harvesting trees to produce

facial tissues may occur.

– Some facial tissues carry ingredients such as lotions or

perfumes, which might subject them to additional

regulations.

63


• Economic conditions influence the patterns of the

distribution of facial tissue.

– In developed and Western cultures, such products are

widely distributed convenience items made available in a

variety of packages.

– For bottom-of-the-pyramid markets or for least-developed

economies, the same product may receive limited

distribution support.

64


• Infrastructure affects the delivery and price of facial tissue.

– The products are light, but packages do take up some

space.

– Modes of transportation as well as the information

technology that might be used to market facial tissue will

be tailored to individual countries.

65

Marketing facial tissues: consumer promotions

• The goal of the consumer promotion program constitutes

the first concern:

– In some countries, the first goal would be to create

consumer awareness.

– In others countries, the goal may be preempting

competition or building market share.

• Following the development of marketing objectives for the

consumer promotion program, individual choices would be

made.

66


– Coupons may be chosen for a variety of reasons,

including enticing initial purchases, matching competitive

offers, generating brand switching, or seeking to create

some stockpiling of the product by consumers.

– Premium offers would be limited. A creative marketer

might find a method to offer a premium based on a series

of purchases.

– Bonus packs could be shipped to larger retail stores

where more shelf space is available. The packs may be

tied with a discount given to the retailer for purchasing

and displaying the packs.

67


• Contests and/or sweepstakes might be featured in a

number of ways.

– A simple drawing for a prize based on entries might entice

some customers.

– A contest associated with a product’s use might also be

possible.

• Refunds and rebates are probably the least likely

alternatives for facial tissue products.

– The low price of the item would discourage this type of

promotion.

68


• Price-off programs are logical candidates for tissues,

especially in developed economies where distribution is

widespread.

– If it is not possible to create perceptions of differences in

quality, then the primary method of competition will be

based on price.

• Sampling programs entice people to try products they have

never used.

69


– When entering a region in which facial tissues are not

widely available, free samples offer a quick and

convenient method to encourage initial purchases.

– Samples may be given in order to demonstrate the

superiority of a brand in a direct comparison with the

competition.

70

Marketing facial tissues: trade promotions

• Trade show participation seems unlikely.

– Very few shows deal with these types of products, unless

there is a logical tie-in, such as Disney characters

marketed in conjunction with facial tissues.

• Trade allowances offer a great deal of promise.

– Off-invoice allowances would be given for larger bulk

purchases.

– Bill-back programs may be established for any large

retailer that could perform a marketing function, such as

housing a sweepstakes or putting up a display.

71

Marketing facial tissues: trade promotions

– Slotting fees may be paid to large retailers than require

such funds to stock products.

– Display allowances provide a further incentive to place a

facial tissue brand in a prominent part of a retail store.

• Cooperative advertising programs may be constructed with

drugstores, grocery stores, and other retail outlets.

– They may be held in conjunction with bonus-pack offers

or price-off programs.

– The goal would be to establish favorable relationships

with retailers over time.

72

Marketing facial tissue: trade promotions

• Trade contest options are limited. The type of product once

again confines the marketing team.

– The same would be true for training programs. Product

features do not require an explanation, and there would

be few actual salespeople to target with such an effort.

• Point-of-purchase materials might be developed either to

display new product uses or to highlight the product during

the cold and flu season.

73

Marketing facial tissue: trade promotions

– Tie-ins with cold medications, free samples, bonus packs,

and coupons are all possibilities the marketing team could

explore.

74

International public relations

• Public relations involves the management of communication

with all organizational stakeholders.

– The public relations function is handled by the department

or unit in a firm that manages publicity and other

marketing communications programs.

– The public relations team may be part of the marketing

department or a stand-alone unit in the organization.

– Public relations efforts can combine with other

promotional efforts to present a more fully integrated

image.

75

International public relations

• Public relations includes developing quality contacts with all

publics and stakeholders.

– Internal stakeholders are the employees who work in a

company.

– External stakeholders include all others who have contact

with the organization.

76

External stakeholders

77

Channel members

• The standard tools available to the public relations

department include

– public relations releases,

– correspondence with shareholders,

– company newsletters,

– annual reports,

– the public relations section of the organization’s website,

and

– special messages and special events.

78

Channel members

• The two primary activities conducted by the public relations

department include

– addressing negative publicity and events and

– promoting positive publicity and image-enhancing events.

79


• How does the public relations team or department handle

negative publicity or image-damaging events?

80

Addressing negative publicity and events

• Damage control involves reacting to negative events caused

by a company’s mistake, consumer grievances, or

unjustified or false claims made by the press or others

seeking to injure a company.

• When the company is in the wrong, company executives will

ask the public relations team to repair the damage to

whatever degree possible.

– Two of the more common methods used to address

company-created problems are crisis management

programs and apology strategies.

81

Crisis management

• Crisis management involves refuting a false claim in a

forceful manner.

• Company leaders will make public statements explaining

why the charges are not valid.

– They also can provide evidence proving that the negative

publicity is unjustified.

• The next element of crisis management will be promoting

the positive aspects of a company’s operations that also

refute the negative claim.

82

Apology strategy

• An apology strategy consists of four elements:

– First, the company’s leader offers an expression of guilt, embarrassment, or regret.

– Second, a statement acknowledging the inappropriate activity and accepting any sanctions imposed should be provided.

– Third, the company’s leader publicly rejects the inappropriate behavior and approves of the proper action.

– Finally, the company provides compensation or penance to correct the wrong.

• In international circumstances, ceremonies and methods for offering apologies vary.

83

Partial guilt

• When a company is connected to a negative event and is partially responsible, leaders may offer excuses, explanations, or justifications.

– An excuse will be a pronouncement that the firm and its leaders cannot be held fully responsible for the predicament because it could not be foreseen.

– An explanation may be created to explain that the negative publicity has been disproportionate to the act.

– A justification involves using logic to diminish the degree of negativity associated with the event, such as “It wasn’t that bad,” or “If we don’t pollute, we will be out of business and people will lose jobs.”

84


• How can the public relations function help build a positive

image of a company and its brands?

85

Positive publicity

• The other aspect of public relations programs includes all of

the actions that support the generation of positive publicity

along with programs that enhance an organization’s image.

• Various public relations tools can be used to optimize these

programs.

– An entitling involves the company taking credit for a

positive outcome, such as when a pharmaceutical

company takes credit for reducing illness and mortality

rates by vending its products in a less-developed nation.

86

Positive publicity

– An enhancement emphasizes the value of an outcome.

– At times, entitlings and enhancements result from less-

concrete linkages, such as when a sports drink takes

credit for an athlete’s success or a team’s performance.

87

Image-enhancing events

• Several marketing programs can be coupled to the goal of

creating positive publicity and enhancing a firm’s image.

• These include

– sponsorships,

– event marketing,

– cause-related marketing, and

– green marketing and sustainability.

88

Sponsorship

• A sponsorship creates an agreement between a marketing

organization and an individual, team, or a landmark.

– A building or sports stadium may be the basis for a

sponsorship.

• Sponsorships are designed to assist in brand recall and

help build brand loyalty.

– Fan allegiance to a participant or team should transfer to

the sponsor.

– Stadium sponsors believe naming rights grant an

organization greater credibility and enhance brand recall.

89

Event marketing

• Event marketing uses marketing techniques to connect with

buyers through specific live events including concerts,

performances, or festivals to promote a product or brand.

– Event marketers use these techniques for connecting with

both consumers and trade channel members, making

them a form of both consumer- and trade-oriented sales

promotions.

90

Event marketing

• Sponsorship programs and event marketing have grown

rapidly in international marketing over the past several

years.

– The programs often accompany other consumer

promotion efforts.

– At an event in which a sponsored participant is involved, a

company can set up a booth, offer free samples and

coupons, offer a contest or sweepstakes, and employ

social media to make on-site connections as part of the

program.

91

Cause-related marketing

• Opportunities exist for firms to support social causes that are important to consumer values.

• Cause-related marketing can be an effective activity for a company seeking to promote and publicize its mission and core values.

– When the cause does not fit with the organization or its activities, consumers quickly become cynical and may develop negative attitudes toward the company.

– Care should be given to the selection of proper causes for a firm to engage with, noting that customers and the public often comment on such programs using various social media outlets.

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Green marketing and sustainability

• An increasing number of international companies have

become engaged in sustainable marketing practices.

– The opportunity to publicize these efforts creates more

favorable consumer attitudes toward the company.

• Other firms undertake green programs but do not

emphasize them in marketing or public relations activities.

– The reasoning is that consumers may not believe the

claim that the company has become more

environmentally friendly, instead concluding that only a

token effort has been made.

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Green marketing and sustainability

– Other consumers think that green products and

production methods have higher costs and will lead to

price increases.

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Social media and public relations

• The international growth of social media usage presents an

additional set of tasks for the public relations team.

– Large organizations in particular will monitor what

bloggers and others engaged in social media connections

are saying and writing about the company.

– A negative event can quickly go viral and cause the

company embarrassment or create a bad impression of

the company.

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Social media and public relations

• Internet interventions involve identifying false statements

about a company and then responding to the allegations.

– A member of the public relations team will identify himself

or herself and present the organization’s perspective.

– At times, the public relations employee can correct false

information or present alternative interpretations of an

event that has transpired.

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Marketing implications of public relations

• In the international arena, public relations programs have

become vital links between companies and various

stakeholders.

– The public relations team remains vigilant to identify any

negative publicity and to respond to it in a culturally

appropriate fashion.

• Public relations efforts are influenced by the major factors

affecting international business.

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Marketing implications of public relations

– Public relations releases must be tailored to an individual

country’s language, culture, legal and political systems,

economic conditions, and infrastructure.

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International Marketing - CITY COLLEGE OF SAN FRANCISCO · International sales promotion...

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