ch14 - Chapter 14 Global Marketing Communications Decisions...

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Chapter 14 Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, Special Forms of Marketing Communication Introduction * In addition to advertising, publicity, and PR,  the promotion mix includes * Sponsorships * Sales promotion * Direct marketing * Personal selling  * Internet * Infomercials
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Sales Promotion * Sales promotion  refers to any  paid consumer or trade  communication program of  limited duration that adds  tangible value to a product or  brand * Price versus nonprice promotions * Consumer versus trade promotions Sales Promotion * Provide a tangible incentive to  buyers * Reduce the perceived risk 
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associated with purchasing a  product * Provide accountability for  communications activity * Provide method of collecting  additional data for database Sales Promotion: Global or Local * In countries with low levels of economic  development, low incomes limit the range  of promotional tools available * Market maturity can also be different from  country to country * Local perceptions of a particular  promotional tool or program can vary
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* Local regulations may rule out use of a  particular promotion in certain countries * Trade structure in the retailing industry can  affect the use of sales promotions Sampling * Sampling * Provides consumer with opportunity to  try product at no cost * May be distributed in stores, in the mail,  through print media, at events, or door- to-door * Kikkoman soy sauce launched in the  United States with a sampling  program in supermarkets; today the  United States contributes 85% of 
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profit from international operations Couponing * Couponing * Printed certificates entitle the bearer to a  price reduction or some other special  consideration for purchasing a particular  product * Couponing accounts for 70% of  consumer promotion spending in the  United States * Free-standing inserts, in-pack, on- pack, cross coupons Couponing Couponing Sales Promotion: Issues and
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Problems * Fraud * Pepsi promotion with Apple * Regulations vary by country * Cultural dispositions to coupons and 
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ch14 - Chapter 14 Global Marketing Communications Decisions...

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