PROMOTION
PROMOTION
Promotion is the process of presenting messages intended to help sell product or service. The types and direction of messages and the method presentation may be extremely diverse, depending on the company, produ or country of operation.
The Push-Pull Mix
Promotion may be categorized as push, which involves direct selling tec niques, or pull, which relies on mass media. An example of the former wot be door-to-door selling of encyclopedias; an example of the latter would magazine advertisements for a brand of cigarettes. Most firms use combir tions of the two strategies. For each product in each country a company mi determine its total promotional budget as well as the mix of the budget t tween push and pull.
Several factors necessitate differences between push and pull amo countries: (1) the type of distribution system, (2) the cost and availability media to reach target markets, (3) consumer attitudes toward sources of formation, and (4) price of the product relative to incomes.
or to put prices on labels.33 There is also a substantial variation in wr consumers bargain in order to settle upon an agreed price. For instance gaining takes place in about 60 percent of the stores in India and Ken} in less than 5 percent in the People's Republic of China and South / Bargaining is much more prevalent in purchases from street vendors in than in Singapore, whereas bargaining in high-priced specialty stores is frequent in Singapore than in India.34
Countering International Competitors
As long as a firm faces local competitors that lack resources to expand nationally, pricing decisions in one locale will have little potential ir elsewhere. However, firms are increasingly facing the same potential petitors in more than one location, and in these cases pricing decisions be examined in terms of global competitive strategy. For example, Proc Gamble was concerned about the possible U.S. entry of the large Jap< consumer-products firm Kao. By selling detergent at a low price in the anese market, Procter & Gamble was able to force Kao to freeze its prici 12 years below those of P&G.35 This move affected a much larger porti Kao's profits than P&G's, thus greatly delaying a Kao entry into the U States.
A firm may also face the same industrial consumer in more than market; therefore, the paint price to Toyota in Mexico may well affec ability to sell to Toyota in other countries as well.
Promotion is the process of presenting messages intended to help sell product or service. The types and direction of messages and the method presentation may be extremely diverse, depending on the company, produ or country of operation.
The Push-Pull Mix
Promotion may be categorized as push, which involves direct selling tec niques, or pull, which relies on mass media. An example of the former wot be door-to-door selling of encyclopedias; an example of the latter would magazine advertisements for a brand of cigarettes. Most firms use combir tions of the two strategies. For each product in each country a company mi determine its total promotional budget as well as the mix of the budget t tween push and pull.
Several factors necessitate differences between push and pull amo countries: (1) the type of distribution system, (2) the cost and availability media to reach target markets, (3) consumer attitudes toward sources of formation, and (4) price of the product relative to incomes.
or to put prices on labels.33 There is also a substantial variation in wr consumers bargain in order to settle upon an agreed price. For instance gaining takes place in about 60 percent of the stores in India and Ken} in less than 5 percent in the People's Republic of China and South / Bargaining is much more prevalent in purchases from street vendors in than in Singapore, whereas bargaining in high-priced specialty stores is frequent in Singapore than in India.34
Countering International Competitors
As long as a firm faces local competitors that lack resources to expand nationally, pricing decisions in one locale will have little potential ir elsewhere. However, firms are increasingly facing the same potential petitors in more than one location, and in these cases pricing decisions be examined in terms of global competitive strategy. For example, Proc Gamble was concerned about the possible U.S. entry of the large Jap< consumer-products firm Kao. By selling detergent at a low price in the anese market, Procter & Gamble was able to force Kao to freeze its prici 12 years below those of P&G.35 This move affected a much larger porti Kao's profits than P&G's, thus greatly delaying a Kao entry into the U States.
A firm may also face the same industrial consumer in more than market; therefore, the paint price to Toyota in Mexico may well affec ability to sell to Toyota in other countries as well.
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