Copyright

Global Promotion Issues & Strategies

Instructor: Lauren Riley

Lauren has taught college level organizational behavior and has a master's degree in Business Administration.

In this lesson, you will learn about what a company must think about when looking to promote their products and services globally. We will cover strategies including personal selling, global account management, selling to businesses and governments and common issues faced when advertising in a new market.

Business Meeting

Imagine a new fast food restaurant opens up down the street from where you live. Excited to try something new, you're one of the first in line on opening day. As you're browsing the menu options, you spot a promotional poster with a happy looking family eating their meal with the caption 'Eat Your Fingers Off'. Are you still hungry?

This is an actual promotional flub made by a popular American fast food chain when they entered into the Chinese market. If a company is looking to begin doing business in a new country, they need to make sure they are taking into account the vast cultural, societal and governmental differences that change the way they should promote their products and services. In this overview of global promotional tactics we will cover personal selling, global account management and selling to businesses and governments.

Personal Selling

Personal selling is a term used to describe the team of salespeople used by a firm to build personal selling relationships with potential customers. In global promotion, the personal touch of a salesperson who has an extensive knowledge of the targeted country as well as the firm's products and services can provide the firm with a competitive advantage.

A salesperson's knowledge of local culture, business customs and language helps to forge relationships with potential customers who may prefer to do business (implicitly or explicitly) with local suppliers.

Think about it; if the fast food chain had consulted a local employee before deploying the slogan 'Eat Your Fingers Off', would they have made the same mistake? In fact, having a localized sales force is one of the most effective marketing channels available to a firm because of their personal knowledge of the market and their ability to act as an intermediary between a firm's corporate team and the customers in their country.

Global Account Management

Global account management (GAM) is a marketing strategy wherein a firm provides consistent pricing and services to customers with a multinational presence. Traditionally firms have assessed pricing models based on the cost of doing business which can vary dramatically from country to country.

GAM, on the other hand, treats a firm's customers to a 'one price fits all' scenario allowing them to capture larger sales and provide products and services to larger customers with greater buying power. By focusing on theses high impact clients, the firm hopes to have higher closing and retention rates.

While global account management can help a firm reach high potential customers within targeted markets, it also has the potential for expensive failure due to the additional resources needed to deploy a GAM strategy effectively. GAM makes pricing services competitively very difficult and creates operational challenges for the firm providing the service.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it now
Create an account to start this course today
Used by over 30 million students worldwide
Create an account