Experiential Marketing Contract - PowerPoint by qxv10461

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									       Global Sales Promotion Tools
   1. IN-STORE (P-O-P) AND TRADE PROMOTIONS
   - - WATCH REGULATORY PROBLEMS (IKEA IN GERMANY)
   2. EVENTS AND SPONSORSHIPS
   - - GLOBAL COMMUNICATIONS WITH GLOBAL BRAND
    (FUJI’S OLYMPIC COUP, WINDOWS 95)
   3. CROSS-MARKETING
   -- MERCHANDISE THAT EXTENDS AND BUILDS THE
    BRAND
Global Sales Promotion Tools
 4. PUBLICITY

 - - (BILL GATES AND MICROSOFT, PHIL
 KNIGHT AND NIKE)
 5. PUBLIC RELATIONS

 - - (NESTLE’S BABY FORMULA, NIKE’S
 SWEATSHOPS )
 6. INTERNATIONAL TRADE FAIRS

 -- (MICROLOG EXAMPLE IN CH.4)
      In-Store and Trade Promotion
         IN-STORE: promotional activities inside the store
        TRADE: promotional activities targeted at channel
                         intermediaries

• In-store promotions are more localized than advertising
• In-store promotions need to be supported by trade promotions
• Different countries/cultures have different attitudes towards
coupons
• Different countries have different distribution infrastructures that
limit transferability of certain in-store/trade promotions
• Sales promotion needs to be localized because of country-unique
restrictions/regulations
Country Regulations of Promotions

                                                              General
                           No restrictions   Authorized       ban with     Almost
Country       Category           or           with major     important      total
                            minor ones       restrictions   exceptions   prohibition

Australia   Premiums             x
            Gifts                x
            Competitions                         x
Austria     Premiums                                                          x
            Gifts                                 x
            Competitions                          x
Canada      Premiums             x
            Gifts                x
            Competitions                          x
Denmark     Premiums                                            x
            Gifts                                 x
            Competitions                                        x
Country Regulations of Promotions

                                                              General
                           No restrictions   Authorized       ban with     Almost
 Country     Category            or           with major     important      total
                            minor ones       restrictions   exceptions   prohibition

 France      Premiums            x
               Gifts             x
            Competitions         x
Germany      Premiums                                                         x
               Gifts                              x
            Competitions                          x
Hong Kong    Premiums            x
               Gifts             x
            Competitions         x
  Japan      Premiums                             x
               Gifts                              x
            Competitions                          x
 Country Regulations of Promotions

                                                                  General
                               No restrictions   Authorized       ban with     Almost
  Country        Category            or           with major     important      total
                                minor ones       restrictions   exceptions   prohibition

   Korea         Premiums                            x
                   Gifts                             x
                Competitions                         x
   United        Premiums
  Kingdom          Gifts             x
                Competitions         x                x
United States    Premiums            x
                   Gifts             x
                Competitions         x
 Venezuela       Premiums                             x
                   Gifts                              x
                Competitions                          x
Sponsorships and Cross-Marketing

  SPONSORSHIPS increase with the advent of global media
       and global events (e.g. World Cup, Olympics).
   Products associate themselves with globally recognized
            sports figures (e.g. Tiger Woods & Nike)



 CROSS-MARKETING of related products leverage a strong
brand name into product line extensions (e.g. Burberry’s baby
                         products)
The New Promotional In-words
        • Event marketing
        • Cross-marketing
        • Product placement
        • Cause marketing
        • E-commerce
        • Pop-up ads
        • Banner ads
        • Experiential marketing
Event Marketing: The Introduction of
              Swatch

Date             Country                           Event
March 1984       Germany   13-ton giant Swatch on Commerzbank building,
                           Frankfurt
April 1984       France     “Urban Sax” saxophonist group at the “Eldorado”
                           theater in Paris to celebrate launch, first Swatch
                           Magazine
August 1984      USA       Ivan Lendl U.S. Tennis Open
September 1984   USA       World Breakdancing Championship:
                           “The Roxy” New York
September 1984   France    First street art painting show with the French artists
                           “Les Fréres Ripoulin,” “Espace Cardin” theater, Paris
November 1984    USA       The Fat Boys music sponsorship, “Private Eyes,”
                           New York, to introduce “Granita di Frutta” to the
                           trade
       Event Marketing: The Introduction of
                     Swatch
Date             Country                        Event
Summer 1985      Sweden    Oestersjö Rallyt (Segel-Rallye)
September 1985   France    Cinema festival, Pompidou Center, Paris with
                           Kurosawa's film, Ran; Mini City Magazine
September 1985   France    “Le Défilé”: Jean-Paul Gautier & Régine Chopinot
September 1985   England   Andrew Logan's Alternative Miss World, London
October 1985     Belgium   “Mode et Anti-Mode” fashion show, Brussels
Fall 1985        USA       Thompson Twins concert tour sponsorship
November 1985    Spain     Swatch launch party, the “Cirque,” Barcelona
                Global Publicity

  PUBLICITY is the publishing of news about the company and its
          products. Very prominent in hi-tech industries.

GOOD NEWS – wherein positive press coverage enhances consumer
          interest in the company and its products


 BAD NEWS – even negative publicity helps keep the brand name in
the public eye (e.g. Benetton), although some may of course damage
                             brand equity


 PRODUCT PLACEMENT – using branded products in film/TV (e.g.
           BMW Z3 in James Bond’s Goldeneye)
             Global Public Relations
GLOBAL P.R. – focuses on creating goodwill toward the corporation
   as a whole. Ha become increasingly important because of anti-
                     globalization sentiments.
     Global PR targets various groups of stakeholders such as:
                             Stockholders
                             • Employees
                             • Customers
                            • Distributors
                              • Suppliers
                      • Financial community
                                • Media
                         • Activist groups
                          • General public
                            • Government
          International Trade Fairs
Participation in International Trade fairs is a way of identifying
          potential distributors in a new local market.


At trade fairs, local marketers can introduce a company’s latest
  products, discover industry trends, & spot new competitive
                          developments.


  Participation involves preparation of product and sales
 materials, opening a booth, sending a team – plus paying a
          sometimes steep fee. Fairs cost money.
                  Direct Marketing

 DIRECT MARKETING: an interactive marketing system
  that uses one or more advertising media to effect a
measurable response and/or transaction at any location.



• MAIL ORDER – catalogs, sales offers through “snail” mail
• TELEMARKETING – phone calls from companies to households
• DIRECT RESPONSE TV (DRTV) – TV commercials with phone
numbers to let viewers call for purchases.
     Direct Marketing depends on…


• 1. CATALOG OF PRODUCTS (“STORE”)
• 2. NAMES, ADDRESSES, TELEPHONES, FAXES,
  EMAILS
• 3. TOLL-FREE NUMBERS (1-800, 1-888)
• 4. CREDIT CARDS
• 5. STANDARDIZED, RELIABLE BRANDS
  (GLOBAL BRANDS)
    Direct Marketing is often outsourced…

1. “DO IT YOURSELF” – the firm develops the market and the
   necessary contacts on its own, very labor-intensive & costly


2. MARKETING INTERMEDIARY – the firm turns the product over to
   a direct marketing company specializing in international
   marketing through a contractual relationship; the intermediary
   then sets-up the infrastructure & local contacts


3. STRATEGIC ALLIANCE – the firm develops an alliance with a
   direct marketing company in the local market; this leverages the
   local company’s existing infrastructure and contacts
               E-Commerce Pros

E-COMMERCE: buying & selling of goods/services online, a.k.a.
  online marketing; the online marketplace is naturally global
                           PROS

 • Easy  and convenient for the customer
 • Creates a natural on-to-one relationship between buyer and
 seller
 • Fosters customer loyalty and increases customer retention
 rates
 • Helps the company focus on providing customer value
 • Lowers costs for buyers and sellers from the pre-purchase
 stage to the post-purchase stage
 • Facilitates price comparisons
                E-Commerce Cons

                             CONS

• Can reach only a certain segment, those with desktops and
Internet access

• Cannot provide the full tactile experience with the product or the
personal interaction in services

• E-commerce needs good electronic communication links

• Customers are put off by computers and technology

• Perceived risks involved can be great

• Without credit cards, e-commerce would be unthinkable
           Successful E-Commerce Cases
             SERVICES                 PRODUCTS

• Airline tickets        • Personal computers (e.g. Dell)

• Tourist packages       • Books (e.g. Amazon)

• Banking services       • Computer software

• Brokerage services     • Cameras

• Rental cars            • Leisure apparel (e.g. Eddie Bauer)

• Hotel reservations     • Sports equipment

                         • Compact discs
         Successful E-Commerce: B2B

 E-commerce has been particularly successful in business-to-
  business transactions. Reasons:
 Many products use standardized components where price is
  the only concern.
 The Internet makes it easy to compare prices – and entry
  barriers are low for new entrants.
 Technology is diffused rapidly so new entrants can access
  state-of-the-art technology.
 Cost pressures inside the corporations force the use of low-
  cost suppliers.
         Global Personal Selling



Culture affects the “people skills” of the global marketer.


       Good salesmanship varies across countries.


Personal selling is usually the least global of all marketing
                         activities.
               Global Personal Selling

How transferable are selling strategies & techniques? The following are
                   factors that affect transferability:
• DIFFERING HUMAN RELATIONS
        (e.g. the role of a salesperson is looked down on by hierarchical
    cultures)
• DEGREE OF MARKET DEVELOPMENT
        (e.g. level of customer sophistication)
• DIFFERING REGULATORY ENVIRONMENTS
        (e.g. salesperson costs escalate in countries where fringe benefits are
high)
• GEOGRAPHIC & PHYSICAL DIMENSIONS
        (e.g. climate, transportation conditions, population density)
               Global Personal Selling
     Presentations made during a sales visit usually consist of five
                          distinct stages:
1. ATTENTION – get the customer to listen to you
2. INTEREST – get the customer interested in what you have to say
3. DESIRE – get the customer to desire what you are selling
4. CONVICTION – get the buyer convinced that the offer is a good
   deal
5. ACTION – get the customer’s signature on the contract


       In foreign markets, these stages are still valid but the
   salesperson needs to adapt these stages to the local culture.
       Culture and Salesmanship

  LOW CONTEXT CULTURES     HIGH CONTEXT CULTURES

 PREPARATION             PREPARATION
 GREAT PRODUCT           GREAT PRODUCT
 APPEARANCE              THE “PERSON”
 ENTHUSIASM              CULTURAL AWARENESS
 SELF-CONFIDENCE         RELATIONSHIP ORIENTED
 GREAT CLOSER OF
 TRANSACTION
          IMC- Integrated Marketing
              Communications
  IMC – combining various communication disciplines (e.g. media
advertising, direct marketing, sales promotion, internet advertising, &
     public relations) to ensure clarity, consistency, & maximum
                        communications impact.


                          IMC examples:
• Intel in China – distribution of bicycle reflectors
• Citibank in Thailand – credit card agents at malls
• Yonex in Indonesia – badminton team sponsorship

								
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