Communicating Value
Personal Selling
Personal selling involves direct interactions by a company’s sales team to engage
customers, make sales, and build relationships. Salespeople, also known as sales
representatives, agents, or account executives, perform this role.
Salesperson - An individual who represents a company to customers by performing one
or more of the following activities: prospecting, communicating, selling, servicing,
information gathering, and relationship building.
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Communicating Value
Personal Selling
The Role of the Sales Force
• Personal Selling
• Linking the Company with Its Customers
• Coordinating Marketing and Sales
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Communicating Value
Managing the Sales Force
Major Steps in Sales Force Management
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 482
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Communicating Value
Managing the Sales Force
Designing Sales Force Strategy and Structure
Territorial Structure - Assigns salespeople to specific geographic areas where they
sell the company’s full product line. This method clarifies roles, builds local
customer relationships, and minimizes travel costs.
Product Structure - Salespeople specialize by product line. For instance, GE uses
separate sales forces for different products and services within its divisions.
Customer (Market) Structure - Organizes the sales force by customer type or
industry. This approach helps build stronger relationships with key customers, as
seen with P&G’s Customer Business Development (CBD) teams dedicated to major
accounts like Walmart.
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Communicating Value
Managing the Sales Force
Major Steps in Sales Force Management
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 482
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Communicating Value
Direct and Digital Marketing
Direct and digital marketing - Engaging directly with carefully targeted individual
consumers and customer communities to both obtain an immediate response and build
lasting customer relationships.
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Communicating Value
Direct and Digital Marketing
• The New Direct Marketing Model
• Rapid Growth of Direct and Digital Marketing
• Benefits of Direct and Digital Marketing to Buyers and Sellers
For Buyers
Convenience - Direct and digital marketing offer buyers the ease of accessing a wide range of
products and information at any time from anywhere.
Privacy - These methods provide a private shopping experience, allowing for discreet
transactions and interactions.
Engagement - Digital platforms facilitate brand engagement and community-building, letting
consumers share experiences and information.
For Sellers
Cost-Efficiency - Direct marketing often represents a low-cost and efficient method for reaching
target markets.
Targeting - Sellers can focus on small groups or individual customers, tailoring their approach
based on specific needs and preferences.
Real-Time Marketing - Sellers can leverage real-time marketing to connect with customers during
significant moments and trending events, enhancing engagement and driving action.
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Communicating Value
Direct and Digital Marketing
Augmented Reality (AR) is a live view of a physical, real-world environment whose elements
are augmented (or supplemented) by computer-generated sensory input such as sound,
video, graphics or GPS data. AR technology allows consumers to virtually interact with three-
dimensional product visualizations displayed on users’ screens.
Artificial intelligence (AI) The development of a computer system that is able to perform
tasks normally requiring human intelligence. AI emphasizes the creation of intelligent
machine learning where information is turned into creating a more customer engaging
customer experience.
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The Four Ps of the Marketing Mix
etrospective
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited,
2018, p. 78
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Communicating Value
Key Terms
Advertising
Sales Promotion
Personal Selling
Public Relations (PR)
Direct and Digital Marketing
Informative Advertising
Persuasive Advertising
Reminder Advertising
Advertising Strategy
Public Relations (PR)
Salesperson
Territorial Structure
Product Structure
Customer (Market) Structure
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Communicating Value
Assignments
1. Digital Advertising Expenditure Analysis Report - Visit the Statista website. Using the data available
on this page, compare the digital advertising expenditures across various regions, continents, or
countries. In your report, discuss any significant trends, differences, or observations. Your report
should be 2-3 pages in length and include an introduction, analysis, and conclusion based on the
data you have examined. https://www.statista.com/outlook/dmo/digital-advertising/worldwide#ad-spending
2. Learning Diary
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Global Marketplace and Ethics
Global Marketplace and Ethics
Content
Global Marketing Today
Deciding How to Enter the Market
Deciding on the Global Marketing Program
Deciding on the Global Marketing Organization
Social Criticisms of Marketing
Marketing Ethics and the Sustainable Company
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Global Marketplace and Ethics
Global Marketing Today
Six major decisions in international marketing
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Looking at the Global Markets
Elements of the Global Marketing Environment
Economic Environment
Income Levels – Determines consumer purchasing power and demand.
Exchange Rates – Influences pricing and profit margins in different markets.
Market Growth Rate – Assesses potential for expansion and long-term viability.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
15
Global Marketplace and Ethics
Looking at the Global Markets
Elements of the Global Marketing Environment
Political-Legal Environment
Regulations and Trade Laws – Dictates compliance and affects market
entry strategies.
Stability of Government – Impacts risk assessment and investment
security.
Intellectual Property Protection – Ensures brand and product security in
the global market.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Looking at the Global Markets
Elements of the Global Marketing Environment
Cultural Environment
Language and Communication Styles – Affects branding, advertising, and consumer
interaction.
Consumer Preferences and Values – Guides product adaptation and marketing
messages.
Social Norms and Customs – Influences product acceptability and marketing
approach.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Looking at the Global Markets
Elements of the Global Marketing Environment
Impact of Globalization on Cultures
Cultural Homogenization – Leads to loss of unique cultural identities
as global brands spread.
Cultural Exchange – Promotes sharing of ideas, traditions, and
lifestyles.
Consumerism Growth – Introduces and reinforces consumer culture in
traditionally non-consumer societies.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding Whether to Go Global
Deciding Whether to Go Global
• Local Success vs. Global Expansion: Not all businesses need to go global; many can thrive
by focusing on local markets.
• Global Industry Need: Companies in global industries may need to expand internationally
to remain competitive.
• Challenges of Going Global: Expanding internationally requires adapting to foreign
languages, laws, currencies, and consumer preferences.
• Risk Assessment: Companies must assess the risks involved, such as political instability,
exchange rate fluctuations, and local competition.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding Which Markets to Enter
Deciding Which Markets to Enter
• Market Selection Criteria: Companies should evaluate potential markets based on
product fit, geography, political climate, and infrastructure.
• Avoiding Overextension: Companies should avoid targeting too many countries at once
and instead focus on the most promising markets.
• Assessing Market Potential: Factors like market size, growth opportunities, and local
competition should be considered when selecting markets.
• Risk vs. Reward: Companies should balance the potential for growth against the risks
involved, such as regulatory challenges or cultural differences.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding How to Enter the Market
Exporting
Exporting is the simplest and least risky way to enter a foreign market. This method
involves producing goods in the home country and then selling them abroad.
Indirect Exporting - Involves working with independent international marketing
intermediaries. This approach requires less investment and carries lower risk since
intermediaries provide market expertise and reduce the likelihood of mistakes.
Direct Exporting - Involves handling exports directly. This method requires more investment
and carries greater risk but offers more control and potentially higher returns.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding How to Enter the Market
Joint Venturing
Joint venturing involves partnering with foreign companies to produce or market products.
Licensing - A company grants a foreign licensee the right to use its technology, trademark, or
patent in exchange for royalties or fees.
Contract Manufacturing - Involves outsourcing production to foreign manufacturers.
Management Contracting - The domestic firm provides management expertise to a foreign
company that supplies the capital.
Joint Ownership - This involves partnering with foreign investors to create a new business entity
in which both parties share ownership and control.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding How to Enter the Market
Direct Investment
Direct investment entails developing foreign-based facilities for assembly or
manufacturing.
Advantages Lower costs due to cheaper labor or Disadvantages Higher risk from factors such as
materials, government investment incentives, and currency fluctuations, market downturns, or
freight savings. It also enhances the firm’s image changes in government policies.
in the host country by creating jobs and
establishing a deeper relationship with local
stakeholders.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding on the Global Marketing
Standardized vs. Adapted Global Marketing Program
Standardized Global Marketing - A strategy where a Adapted Global Marketing - A strategy where a company
company uses the same marketing approach and mix adjusts its marketing mix to meet the unique needs of
across all international markets. each local market.
Advantages: Economies of scale, consistent brand Advantages: Better alignment with local consumer
messaging, and reduced costs due to uniform marketing preferences and cultural nuances, potentially leading to
practices. higher market share and customer satisfaction.
Disadvantages: May not account for local market Disadvantages: Increased costs due to customizations and
differences, potentially leading to less effective marketing adaptations.
efforts in diverse regions.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding on the Global Marketing
Standardized vs. Adapted Global Marketing Program
Balancing Standardization and Adaptation - This strategy leverages the benefits of
global branding while adapting marketing efforts to meet local market needs.
"think globally, act locally“
Glocalization
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
25
The Four Ps of the Marketing Mix
etrospective
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited,
2018, p. 78
26
Global Marketplace and Ethics
Deciding on the Global Marketing
Product Strategies for Global Markets Program
Straight Product Extension - Marketing the same product in international markets
without modification. 4Ps
Product Adaptation - Modifying the product to meet local needs and preferences.
Product Invention - Creating new products specifically for local markets.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding on the Global Marketing
Promotion Strategies for Global Markets Program
Standardized Communication - Using the same advertising themes and messages
worldwide. 4Ps
Communication Adaptation - Tailoring advertising messages to fit local cultures and
languages.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding on the Global Marketing
Price Strategies for Global Markets Program
Uniform Pricing - Setting the same price globally, which may not be feasible due to
varying local economic conditions. 4Ps
Market-Based Pricing - Adjusting prices based on what consumers in each market
can bear.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding on the Global Marketing
Distribution Channels for Global Markets Program
Channels Between Nations - Manage the movement of products from production
points to national borders. 4Ps
Channels Within Nations - Handle distribution from national entry points to final
consumers.
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Deciding on the Global Marketing
Organizational Evolution Organization
Global Organization
International
Division
Export Department
Source: Philip Kotler, Gary Armstrong, and Marc Oliver Opresnik. Principles of Marketing: Global Edition. 17th ed., Pearson Education Limited, 2018, p. 570
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Global Marketplace and Ethics
Social Criticisms of Marketing
Social Criticisms of Marketing
• High Prices
• Deceptive Practices
• High-Pressure Selling
• Shoddy or Unsafe Products
• Planned Obsolescence
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Global Marketplace and Ethics
Social Criticisms of Marketing
Marketing’s Impact on Society
• Materialism and False Wants
• Cultural Pollution
• Impact on Competition
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Global Marketplace and Ethics
Marketing Ethics and the Sustainable
Marketing Ethics and the Sustainable Company Company
• Ethical Marketing
• International Ethics
• The Sustainable Company
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Global Marketplace and Ethics
Assignments
1. Watch Google’s Videos (cont. from the Communicating Value @Direct and Digital Marketing) Select
at least six playlists (the more the better) from the skills-building videos listed below. Watch the
videos in full, and then create a detailed summary or reflection on what you learned from each
playlist (click View full playlist then watch videos). www.youtube.com/@digitalgarage7542
2. Learning Diary
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Global Marketplace and Ethics
Key Terms
Exporting Balancing Standardization and Adaptation
Indirect Exporting Straight Product Extension
Direct Exporting Product Adaptation
Joint Venturing Product Invention
Licensing Standardized Communication
Contract Manufacturing Communication Adaptation
Management Contracting Uniform Pricing
Joint Ownership Market-Based Pricing
Direct Investment Channels Between Nations
Standardized Global Marketing Channels Within Nations
Adapted Global Marketing Sustainable Marketing
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Thank you!
Prof. Dr. Mile Vasić
[email protected]
