Sei sulla pagina 1di 18

International Marketing

Unit 11

Unit 11
Structure: 11.1 Introduction Objectives 11.2 Personal Selling 11.3 Publicity 11.4 Sales Promotion 11.5 Trade Fairs 11.6 Sales Force Automation 11.7 Summary 11.8 Glossary 11.9 Terminal Questions 11.10 Answers

International Sales Promotion

11.1 Introduction
In this unit, we are going to discuss various aspects relating to promotional strategies with regard to international business. Promotion strategy is an approach to reach the consumer and enhance sale in international market. Promotional activities stimulate consumer purchases, and improve middlemen efficiency and retailer performances and effectiveness. Sales promotion is one of the important functions of any business organisation; but the promotion strategy in a domestic trade cannot be compared with the international marketing. The comfort level of the marketer in domestic trade is always better when compared to the complexities faced by an international marketer. There are many different players in different markets and the way these players, may be middlemen, perform their activities are distinctly different. The international marketer has to adjust to the changed context of marketing and resort to promotional strategies conspicuous to a particular market. Many of the issues confronted in different markets are conspicuously unique. Accordingly, the international marketer has to prepare himself to exploit the opportunities available in each market. While exploring new markets, the middlemen and brokers or commission agents operating in that market are new in terms of relationship and generally intend to exploit the situation. Market practices propose brokerages and commission to the middlemen and the same varies in different markets,
Sikkim Manipal University Page No.: 194

International Marketing

Unit 11

although international trade practices have considered maximum limit on commission and brokerages having regard to the overall profitability to the international marketer. Some marketers resort to in-store demonstrations of the product and provide samples of the product to the prospective customers through overseas retailers while launching the product. Other types of promotional activities are issue of coupons and providing gifts to the customers. Some corporates are sponsoring special events such as concerts and fairs. Another common method of product promotion is point-of-purchase display to explain how useful the product is to the customer and what its distinctive features are. Conducting road-shows is also a method of cost-effective promotion strategy. In this case, mobile infrastructure may be used to cover more markets through which more and more customers patronage may be enlisted. The nature of constraints faced by international business firms while implementing a promotional strategy in each international market varies substantially. For example middlemen in European market always look forward to take higher percentage of commission and the marketer has to be conscious of the overall profitability while agreeing for higher level of commission. Basically, such a business transaction should be worth pursuing and not a losing proposition. This example justifies that there are no standard and uniform measures of promotional strategy for all the global markets and each bears a unique characteristic. Objectives: After studying this unit, you should be able to: define the term promotional strategy list various types of strategies to be adopted in international marketing describe the impact of personal selling in international marketing describe trade fairs as a promotional strategy in international business state the advantages to the marketer by resorting to various kinds of promotional strategies explain the impact of sales force automation and application of information technology in promotion.

Sikkim Manipal University

Page No.: 195

International Marketing

Unit 11

Importance of promotional activities Successful marketing is a pre-requisite for achieving sales. It is true that the marketer already has a plan for marketing his products domestically. However, it is very much essential to develop a well-thought-out international marketing plan to address the issue of conquering the target market. Traditionally, market efforts consisted of the 4 Ps of marketing, namely, Product, Price, Place and Promotion. However, now it is intended to take care of 3 more variables: Portability, Politics and People. In all, there are 7 Ps of marketing to be addressed as listed below:
Product Price Place Promotion Portability Politics People Covering packaging, design, branding, trademarks, warranties, guarantees, product life cycles and new product development Fixing prices of the product which are profitable for the marketer and can be afforded by the consumer Pertaining to the physical distribution of goods Personal selling, advertising and sales promotion and channels of distribution Ensuring that the product or service travels well in time and compatible Considering the rules and regulations, local practices and logistics and their impact on preventing sales in foreign markets Considering the purchasing power of the prospective buyers to buy what we are intending to sell in our target market

Promotion is a very important activity because the consumer intending to buy a product or availing a service would like to assure himself that his purchase transaction will provide him utility and in turn derive satisfaction. Apart from this, he also wants to know whether he can get his problems, if at all they were to crop up, solved at the earliest. He is also interested in ensuring that after sales services would be provided with quickness and courtesy. Then there are many cases where he is not an expert in using the product he is purchasing and so naturally expects training and handholding for some time. These are the pertinent questions in the minds of the ultimate consumer. Similarly, the wholesaler who is intending to import a particular product from abroad has to take into consideration the above concerns of

Sikkim Manipal University

Page No.: 196

International Marketing

Unit 11

the consumer as he is answerable to the consumer for any deficiencies in and around the product or service. In view of what has been described above, it is very essential for the international marketer to create a brand equity first within the domestic market and with the passage of time, the image of the product is built up in the international market. In plain terms, the international marketer has to market his company before selling any product or service. Secondly, in todays fast life people have very little time to go in search of the supplier who is in a position to supply the product to be purchased or service to be availed. Obviously, he is forced to go in search of shortcuts to locate the prospective seller. First, he checks up with his friends and relatives who have bought and used the product to be purchased and gets their feedback. He also looks at the media audio and video in this endeavour and if he gets impressed with the advertisements, he may venture into buying. At times, he may visit a trade fair or an exhibition arranged in a prominent location with a view to find out whether somebody is readily available to meet his demand. The third most important factor forcing the marketer to go in for promotion is the imperative to survive and grow in his line of activity. Survival is a basic need and then comes the urge to grow. This is quite a natural phenomenon for any living being and the marketer is not an exception. However, in the present competitive world, marketers are sweating day in and day out to capture the market share from their competitors. Further, the rampant inflation in many countries is adding fire to the fuel and the common man is finding it extremely difficult to allocate his disposable income effectively. Naturally, he is always in search of products which are cheap but are capable of meeting all his needs, desires, aspirations and aesthetics. Hence, the marketer is forced to be on his toes to reduce the cost continuously on the one hand and improve the quality of the product or service on the other to retain his existing clientele. The international marketer is often confronted with the problem of arriving at a decision on whether to go in for standardisation of sales promotion strategy or be flexible and adapt his sales promotion strategy to suit the needs and requirements of each segment of the international market.

Sikkim Manipal University

Page No.: 197

International Marketing

Unit 11

If the marketer decides to go in for the standardisation approach, he can save a lot of money and time incurred on sales promotion, separately in different markets. However, the fact of the matter is that the consumers who are buying the specific product may be looking at the same product from different angles in different markets. For example the bicycle is used in India as a mode of transport by the poorest of the poor. The Indian customer cannot dream of buying a sports bicycle costing Rs.1,75,000/- used by the richest of the rich in United States. In this case, if uniform sales promotion strategies are adopted, the results may be counter-productive. So, the sales promotion strategies have to be necessarily different to suit the requirements of individual markets. Most of the experts in the field of sales promotion strategies in international marketing are of the view that adaptation of sales promotion strategies is very much needed to address the issues which are localised. In conclusion, at the time of launching the product all over the globe, a uniform promotion strategy may be adopted just to create consumer awareness. Going ahead, it is advocated that certain adaptations are made in promotional strategy having regard to the local requirements, cultural differences and local regulations. Lastly, todays buyer and seller separated by physical distance in terms of thousands of kilometres would like to interact with each other for maximising their satisfaction and reach effectively. So, it is essential for the marketer to understand these complexities in the modern day world and adopt promotional measures to succeed in the competitive environment. Having understood the stark realities, let us try to list out the various ways and means of promoting the products and services adopted by the contemporary marketer: personal selling publicity trade fairs and exhibitions internet sales force automation.

Sikkim Manipal University

Page No.: 198

International Marketing

Unit 11

11.2 Personal Selling


According to Stanton, personal selling is the personal communication of information to persuade prospective customer to buy something a product, service, idea or something else. This is in contrast to the mass, impersonal communication of advertising, sales promotion and or other promotional tools. Personal selling includes, within its range, personally reaching out to prospective final consumers and/or the members of the channels of distribution. Importance and advantages One of the most effective methods of marketing communication is personal selling. It also helps to overcome the marketing barriers in few cases. The success achieved by Supermax shaving blades in the London market can be cited as an example for the success of door-to-door sales strategy adopted by the marketer. The personal involvement of the sales team results in all-round growth of the firm and also sustaining such growth over the years. On account of the personal touch, the marketer is in a position to get meaningful feedback, suggestions for improvement and redress the complaints and grievances promptly. Personal selling is highly flexible as the marketer can develop specific plans to handle every customer. It is highly cost-effective especially for the small marketers with limited resources at their disposal. Personal selling is an effective and fast track approach to convert inquiry into sales.

Disadvantages Personal selling costs too much for the marketer if the target group of customer is in a developed country. The ability and sincerity of sales team should be of extraordinary standard to achieve success. Attrition of sales force poses serious challenges for the marketer in retaining existing customers and attracting prospective ones.

Sikkim Manipal University

Page No.: 199

International Marketing

Unit 11

Different ways of personal selling Broadly, there are three ways in which personal selling is carried out. They are: meeting the prospects in foreign markets meeting the prospects at trade fairs and exhibitions visiting foreign buyers. Meeting the prospects in foreign markets: Under this method, the foreign prospects are met at their respective locations in the foreign markets, which can be achieved through: a) Marketers travelling salesmen attached to the headquarters. In case companies do not have their offices in foreign countries or if they need not post their full time salesmen abroad, this approach is adopted. b) Marketers salesmen attached to the companys office in the foreign market. Normally, large corporates have well-defined marketing setup abroad and therefore are in a position to deploy their salesmen stationed in a particular location to meet the prospects. This approach yields fruits because these salesmen have a better feel of the local conditions and can easily capture the business. c) People temporarily hired. If sales promotion is not a regular feature with the marketer, he may engage the experts in marketing in the foreign country on contract basis for meeting the short-term requirements of canvassing business during the introductory life of the product or special marketing drive. This method is highly cost-effective for the marketer. Meeting the prospects at trade fairs and exhibitions: As discussed elsewhere in this unit, trade fairs and exhibitions are highly effective in export promotion as they enable a firm to meet many prospects at one place without spending any extra amount. International trade fairs and exhibitions may be held in India or may be held in foreign countries. Visiting foreign buyers: Under this method, the buyers or prospects are invited to visit the plant/office of the marketer to get a first-hand information of the conditions under which production is carried out and also the quality of raw materials used for producing the goods. Visits of this type may be at the specific request of the foreign buyer or at the request of the local marketer to convince the foreign prospect. Another cause for such visits
Sikkim Manipal University Page No.: 200

International Marketing

Unit 11

may be the initiative taken by the export promotion organisations functioning in a country. In the case of personal selling, the human element of person-to-person interaction is involved. Here, the courtesy extended by the sales personnel and the art of selling chosen by the sales representative will induce the prospective buyer to choose the product. The salesmen, therefore, must possess required communication skills and extend due courtesy to create interest in the mind of the buyer. To repeat, the salesmen so engaged must be highly motivated and bear cheerful countenance. The salesmen and their team generally get motivated when financial and non-financial benefits are extended to them matching their performance in terms of sales. Financial benefits include attractive salary, commissions and other incentives while non-financial benefits are up-gradation in their ranks and providing other perquisites. Otherwise, personal selling may not be of much advantage, if the salesmen do not possess such soft skills and perseverance. International business firms need to engage the services of expert sales force as a first step in managing personal selling. While recruiting marketing and sales personnel going to handle a particular foreign market, local nationals from that country/area having requisite experience of the local market need to be appointed. However, if in a foreign market, third country nationals are likely to succeed in personal selling, third country personnel can also be engaged. With the growth in international marketing, it is anyway ideal to use local nationals for the purpose of personal selling. English being the internationally accepted language, sales person so selected need to have good spoken English to enable them to translate the objectives of the business firm into a profitable venture. For example the sale of certain consumer goods like vacuum cleaner (Eureka Forbes) and water purifiers (Aquaguard) through personal selling is very effective. The sales personnel are reaching the ultimate users and persuading them to purchase the goods explaining the technology and longterm advantages to the households. They also convey the disadvantages to the households if the particular consumer goods are not used in terms of inability to provide pure drinking water and maintaining the houses clean.

Sikkim Manipal University

Page No.: 201

International Marketing

Unit 11

A General Manager of Japanese subsidiary of American Medical Equipment company once ordered his salesmen not to visit the administrative office very frequently, instead, devote more time for marketing. With this, salesmen started going directly to the market from their home and once in a week visit the office. The intention of the General Manager was that salesmen are in the field to deal with the prospective buyers for time and non-productive meetings in the conference rooms are avoided. However, the sales dropped down considerably once this approach was implemented and the General Manager had to revert to regular meetings as usual. The reason behind the fall in sales was because the new approach did not boost the morale of the staff. Frequent meetings motivated the staff better as lot of views were exchanged between the salesmen and lot of solutions provided by strategic management.
Source: International Marketing by Philip R Cateora

Self Assessment Questions 1. Personal selling is an effective and fast track approach to convert inquiry into sales. (True/False) 2. Personal selling is highly flexible as the marketer can develop _________ to handle every customer.

11.3 Publicity
Advertising and publicity in day-to-day life are used interchangeably. However, there is subtle difference between these two tools of business promotion. Both these tools employ the mass media as a vehicle for reaching the target customer. Most marketers gave more importance for advertising than publicity; however, public relation practitioners have relied on publicity. Publicity is otherwise known as media relations as many public practitioners express their designations. Advertising is a powerful tool employed by the marketer to reach the consumer by focussing basically on the product and its features to ensure that the reader is prompted to try a particular product. On the other hand, publicity has a wider connotation and may come from the media itself if a particular product has succeeded in the market and has attractive features
Sikkim Manipal University Page No.: 202

International Marketing

Unit 11

to meet the requirements of the consumer. Sometimes, there are examples where the marketer himself may approach the media persons through the back door and try to get publicity for his product. Advertising gives full freedom to the marketer as he has paid for the space allotted to him. So far as publicity is concerned, the editor of the media or the person in charge of the publicity campaign may not evince adequate interest or care and concern while covering the publicity campaign. In a few instances, the employees entrusted with the task of providing publicity by the media owner may lack necessary skill and expertise in projecting a particular product and ultimately the marketer may have to bear the brunt of such poor publicity. Even though it is said that publicity is free, the marketer, to ensure that nothing goes wrong has to spend money to keep the media people in good humour and be at their mercy to get the right coverage at the right time.

11.4 Sales Promotion


Sales promotion is one of the critical aspects of marketing. Selling products in the international market is more difficult than selling them in the domestic market. The producer and the exporter cannot sell a bundle of physical attributes known as product but it is the business of selling satisfaction to their customers. This is particularly important in consumer goods. Modern marketing calls for designing and disseminating information on various features of the product to succeed in the target market. In simple terms, every producer has to be a promoter of his product. Sales promotion comprises promotion activities other than advertising, personal selling and publicity. So, sales promotion is any promotional activities that do not fall into these three activities of the promotion mix. Following are the main features of sales promotion: It is temporary in nature. As it cannot sustain by itself, it supplements marketers initiatives in advertising, personal selling and publicity. Sales promotion is not only limited to the stimulation of consumers demand. It may also be used to attain the support of the middlemen. Sales promotion techniques are valid in marketing of both consumer products and industrial products.
Sikkim Manipal University Page No.: 203

International Marketing

Unit 11

A Japanese firm created a great deal of excitement in Thailand by including game cards in its detergent boxes and consumers could not resist the temptation to buy more and more quantity of the product in search of the winning cards. Similarly, Pfizer, like other drug companies, attracts wholesalers by sponsoring trips and other events. Gifts are given to doctors and doctors wives are taken on shopping tours. The different aspects of sales promotion are contemplated as early as execution of a manufacturing project in which perspective one can understand the importance attached to sales. Among others, the project report itself extensively deals with the envisaged sales promotion activities by which potential sales targets are to be achieved. Sales promotion has a bearing on the likely profitability of a business enterprise in the ensuing years on which edifice even a break-even analysis is made to confirm cash flow in the business commensurate with the investment. The art of selling varies between the business enterprises and there cannot be a standard procedure fitting all the business enterprises. While a new product is being launched, sales promotion approach is slightly different. Here, the issue is creation of brand and in that direction, the company may sell the product at a comparatively low price for a short time horizon. This will promote sales and increase customer awareness. Depending on the progress achieved in the sales, the product price may be increased once the acceptance level by the target customers increases. During this period, the business enterprises may resort to issue of coupons, longer warranty periods, replacement of parts, exchange offers, free samples and gifts. The cost of sale in the initial period of launching of the product and creation of brand equity is quite high and as a sales promotion approach, the additional cost is absorbed as expenditure by the business enterprises. Objectives of sales promotions The objectives of sales promotions are: providing information about the product and its attributes like colour, size, design, uses, price, etc. to the customers and the dealers communicating different messages with a view to satisfy the stakeholders
Sikkim Manipal University Page No.: 204

International Marketing

Unit 11

increasing the companys sales reducing seasonal decline in sales by offering customers and middlemen attractive discounts, free gifts, etc. developing preferences and conviction of buyers last, but the not the least, to keep the memory of the product alive in the minds of the customers. Activity 1: Compare the sales promotions activities undertaken by Pepsi in India and the United States.

Restrictions on sales promotions Although sales promotion is generally received enthusiastically in developing countries and LDCs, yet the activity is still largely unutilised. It may be, more, due to legal barriers than psychological barriers. Self Assessment Questions 3. Sales promotion consists of those promotion activities other than _____________, ______________ and ________________. 4. Advertising and publicity in day-to-day life are used interchangeably. (True/False)

11.5 Trade Fairs


Trade fairs and exhibitions play an important role as they provide an opportunity for the potential buyers to meet the suppliers and also offer an outlet for imparting information relating to the latest developments about the product. In a few cases, they are unique because media advertisement for product may not be allowed as in the case of Libya where the annual Tripoli International Trade Fair is one of the main channels to promote business. Trade fair is arranged with a definite purpose and is directed towards the target. In a trade fair, the technical personnel accompany the asset to give on the spot clarifications on the technology and its applications to the potential consumers. Hence, any prospective buyer visiting a trade fair is bound to get complete information on any product by which a decision can be taken by the buyer. The different aspects of the contract of sale like trial run, commissioning, after-sales-service, replacement of parts and
Sikkim Manipal University Page No.: 205

International Marketing

Unit 11

deputation of personnel/engineers, warranty period with defect liability clause may also be discussed to the satisfaction of the potential buyer. The objective of staging such fairs is either for the purpose of selling goods or demonstrating new ideas or techniques. Trade fairs are of two types: a) General fairs (horizontal fairs): As the name itself indicates, the goods displayed are general in nature covering different fields, say all household articles. As general fairs are attended by people from different sections of the society in large numbers, they are ideal for marketing household articles like consumer durables. This type of fairs is also suitable for propagating new products that need to be seen and accepted by the potential consumers. In India, trade fare is organised at Pragati Maidan, Delhi. b) Specialised fairs (vertical fairs or solo fairs): This type of fair concentrates on products of a particular industry or group of industries. For example automobile products of different varieties pertaining to different types of vehicles may be displayed. Specialised fairs are ideal when the marketer wants to showcase a product intending to meet the needs of a specific group of prospective buyers. In case the product to be displayed is of a technical nature, then it should be showcased only at specialised fairs. Following are some of the international trade fairs held at regular intervals: Anuga Food Fair at Cologne. Hanover Engineering Fair. Sport Goods Fair. The visitors visiting trade fairs and exhibitions can be categorised as: nuisance visitors showing curiosity but are not potential customers genuine visitors including potential customers and influential people in the society like VIPs and journalists visitors keen and genuinely interested in the product or service and are going to be definite prospective customers.

Advantages likely to accrue from participating in trade fairs are listed below: a) In countries where media advertising is banned, trade fairs are the only media for promoting the product.

Sikkim Manipal University

Page No.: 206

International Marketing

Unit 11

b) By bringing together potential buyers and sellers from all over the world together at a convenient place, they facilitate relationship building through communication and exchange of information. c) The marketers get a golden opportunity to obtain feedback from both the existing and potential customers. d) The marketer gets a chance to update his knowledge on various aspects relating to latest developments on the technology front and other facilitators of international trade. e) As the participants generally include the government machinery entrusted with export promotion, the exporter gets latest inputs on various schemes and packages provided by government and other bodies. f) Trade fairs provide a forum to know the competitor and the strategies adopted by them in market promotion.

g) They also serve as a useful link to develop relationship with the suppliers of machinery and raw materials. In India, trade fare infrastructure is created in Pragathi Maidan, New Delhi, which can be compared to few of the best trade fare infrastructures in the world. The investment in this infrastructure runs into thousands of crores and underdeveloped and poor countries do not have such infrastructure. On the global scale, more than 3000 trade fairs take place per year which is roughly comes to about 9 trade fairs per day from which one can understand the approach of business enterprises to promote sales. In terms of promoting exports, the government permits export of prototypes or sample of the goods to be exported to the country where trade fair is taking place and if the goods are not sold in the trade fair, the same are imported back by the country. The tractors and tillers manufactured by Mahindra and Mahindra are taken to the international trade fairs held at different European countries and if these items are not sold during the period of the trade fair, unsold units are imported back to India. There may be some deviation permissible in terms of export declarations like GR forms. To sum up, trade fairs generate a lot of interest and information and are extremely useful for both the marketers and buyers.

Sikkim Manipal University

Page No.: 207

International Marketing

Unit 11

Activity 2 Visit the website http://www.dcmsme.gov.in/sido/Marketingod32_7_2007.htm and list out the various international trade fairs and exhibitions organised during the year 2011. Self Assessment Questions 5. Trade fairs are conducted by private individuals. (True/False) 6. In India _______________ is a famous venue for trade fairs.

11.6 Sales Force Automation


Traditionally, the marketing efforts of an international marketer were handled manually by the staff members in the marketing department. This system had its own merits and demerits. However, with the winds of IT blowing heavily in the recent past, there is a clamour on the part of the marketer to get his sales force automated. Sales Force Automation (SFA) is the most widely used of sales tools, speeding and streamlining all phases of sales from lead management to analytics and sales forecasting. Towards this end, many IT solution providers have also come out with their own solutions trying to integrate CRM with the activities handled earlier by the marketing department of a typical international marketer. The above efforts have produced desirable results in a few cases where the attempts at the introduction of IT has acted as complementary to the efforts of the human beings in the drivers seat as involvement of human beings is a must at critical stages of handling orders received from abroad. Similarly, the solutions (SFA solutions) have limited role to play whenever a complaint from an overseas wholesaler needs to be handled efficiently. Further, extra care and caution needs to be devoted in case of handling new customers for a period of at least one year as canvassing and retaining a new client is very difficult these days. The cost associated with the purchase and installation of SFA solutions and employing technically well-trained personnel with the flair for marketing and problem solving is a challenge by itself. The prohibitive cost may dispel the small and the medium marketers from going in for automation as their
Sikkim Manipal University Page No.: 208

International Marketing

Unit 11

capacity to absorb the cost of technology is very limited. Further, it is neither feasible nor desirable to implement some SFA as it is without customising the same for the specific purposes of a particular industry or a firm. Pepsi is a global company with manufacturing/marketing facilities in most of the countries of the world. Presently, Ms. Indira Nooyi, an Indian from Mangalore is heading this corporate. Considering the magnitude of sales of Pepsi bottles per day, its impact on inventory management, so also its impact on information flow to corporate office for strategic marketing purpose, the company took up sales force automation. The driver-cumsalesman who is plying the containers to various selling points for delivery of Pepsi bottle crates is provided with computer infrastructure (hardware, software and connectivity). With this the driver of a Pepsi container is able to deliver the product to the distributors/retailers and on real time basis furnish information to the regional administration and corporate office simultaneously. The updated information gets registered with the database at the corporate office as and when sales are made. The company is able to assess on day-to-day basis the inventory at various places, the daily sales by each salesman, stock held by the salesmen at the end of the day, etc. Overall, the inventory management, sales management, the details of cash sales, the particulars of credit sales, the individual performance of salesmen, the losses, if any incurred on account of damages to the bottles, etc. has become easy and extremely cost-effective. The impact of sales force automation on the productivity and profitability of a company of the size of Pepsi is enormous. Self Assessment Questions 7. Sales force automation is providing information infrastructure to the sales force. (True/False) technology

8. The significant advantage of sales force automation is faster communication resulting in better decision-making. True/False 9. The use of internet has reduced the distance between the seller and the buyer and also saved time involved. (True/False)

Sikkim Manipal University

Page No.: 209

International Marketing

Unit 11

11.7 Summary
Sales promotion is one of the foremost objectives in any business and it is true of international marketing. Various tools for sales promotion are utilised having regard to the nature of the markets globally. Each market is distinctively different in its operation. There are middlemen operating in each market who are to be satisfied while soliciting their co-operation in a particular market. Personal selling is a good approach when compared to other types of sales promotion techniques, but then, there are limitations imposed by international marketing as far as personal selling is concerned. It requires an international marketer to bring about awareness in the target customer about the product through product promotion like on-store demonstrations, road shows, etc. These are essential when a new product is launched to give wide publicity to the product and communicate the features of the product to the target customers and the benefits thereof. In this direction, business enterprises participate in trade fairs arranged by the Governments to promote international trade. Participation in a trade fair is an expensive preposition, nevertheless, the company and its products get international exposure and if it is a new technology, acceptance of the product is wider. Once the product is launched and a brand equity is created, aggressive selling can be achieved by tools like sales force automation. Again, sales force automation also is an expensive preposition, nevertheless, larger companies operating in wider geographical area earn substantial profits through automation of sales force. In the present circumstances of global trade, information dissemination through sales force automation is a compelling need and the evolving information technology increases the support base for business enterprises. Some of these tools used to promote sales mentioned in the foregoing paragraphs are complementary to each other and therefore one tool may not be divested within the support of another.

11.8 Glossary
Brand equity: It represents the value of having a well known brand name. GR form: It is an exchange control declaration form required by RBI which an exporter has to furnish. Automation: It is the use of machine and information system to optimize productivity.
Sikkim Manipal University Page No.: 210

International Marketing

Unit 11

11.9 Terminal Questions


1. Explain with reasons why local nationals are preferred as sales personnel in international marketing. 2. Discuss the importance and advantages of personal selling. 3. Define publicity and explain the difference between publicity and advertising. 4. What is sales force automation and why business firms resort to sales force automation? 5. Describe the promotion strategies through participation in trade fairs by business enterprises.

11.10 Answers
Self Assessment Questions 1. True. 2. Specific plans. 3. Advertising, personal selling and publicity. 4. True. 5. False. 6. Pragathi Maidan. 7. True. 8. True. 9. True. Terminal Questions 1. Refer 11.2. 2. Refer 11.2. 3. Refer 11.3. 4. Refer 11.6. 5. Refer 11.5.

Sikkim Manipal University

Page No.: 211

Potrebbero piacerti anche