A number of factors must be taken into account when determining the extent to which promotion must be localized. List and describe those factors giving examples

Question

What will be an ideal response?

Answer 1

The number of factors that must be taken into account when determining the extent to which promotion must be localized can be summarized as follows: (a) in countries with low levels of economic development, low incomes limit the range of promotional tools available. In such countries, free samples and demonstrations are more likely to be helpful than coupons or on-pack premiums; (b) market maturing can be different from country to country; consumer sampling and coupons are appropriate in growing markets, but mature markets might require trade allowances or loyalty programs; (c) local perceptions of a particular promotional tool or program can vary. Japanese consumers, for example, are reluctant to use coupons at the checkout counter. A particular premium can be seen as a waste of money; (d) local regulations may rule out use of a particular promotion in certain countries. There are countries which regulate coupon distribution; (e) trade structure in the retailing industry can affect the use of sales promotions. For example, in the United States and parts of Europe, the retail industry is highly concentrated. This situation requires significant promotional activity at both the trade and consumer level.