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Different types of sales promotion tools are needed to introduce a product or service versuscompeting in a mature marketConsumer perceptions—consumer perceptions of and willingness to use various sales promotion toolsvaries by countryTrade structure – the willingness and ability of channel members to accommodate sales promotionprogramsRegulations – legal restrictions and regulations on sales promotion vary by country and can be veryrestrictive in some countries and impact the type of promotions that can be used.B.Public Relations—public relations plays an important role in supporting and enhancing themarketing and advertising efforts of companies involved in international advertising. Publicrelations activities are needed to deal with local governments, media, trade associations and thegeneral public. The job of PR agencies in foreign markets is not only to help the company sell itsproducts or services but also to present the firm as a “good corporate citizen” who is involvedwith and concerned about the future of the country. Companies must have a favorable reputationand image if they are to be successful in foreign markets, as groups may feel threatened by thepresence of a foreign multinational in their country. Public relations efforts may also be needed todeal with specific problems a company faces in international markets. Many multinationalcompanies are choosing ad agencies that offer public relations capabilities so their entirecommunication program can be integrated and conducted on a global basis. The chapter discussesthe major public relations problems the Coca-Cola Co. and PepsiCo have been facing in India aswell as challenges McDonald’s has faced in France. C.Internet/Digital Media—use of the Internet by consumers as well as marketers is highest in theUnited States and Western Europe. In the Asia/Pacific region, Internet use is high in China,Taiwan, South Korea as well as several European countries where there are considerable numbersof high-end users and several domestic service providers. Internet use in international markets isstill limited by low number of consumers with Internet access, but Internet growth is expected todevelop quickly as telecommunications companies move into emerging markets such as EasternEurope and Latin America and improve the communications infrastructure. Professor Notes19-8
Chapter 19 - International Advertising and PromotionTeaching SuggestionsIn this chapter we turn our attention to the area of international advertising and promotion. We feel that itis very important to cover this area as many U.S. companies are finding that our domestic market offersthem limited opportunity for expansion due to slow population growth, saturated markets, and intensecompetition. Moreover, imports are taking a larger and larger share of the domestic market for manyproducts and are likely to continue to do so. American companies must learn how to defend against