Promotion refers to creating customer awareness on a product or a brand and thereby generating sales and raising product loyalty. It is one of the basic elements of a market mix which includes price, product, place and promotion itself. Promotion is a composition of personal selling, advertising,sales promotion, direct marketing and publicity. A promotional mix specifies how much attention is to be given to the above five factors. It seeks to present information to consumers and others, to increase demand of the product and to differentiate the product.
Coca cola is a multinational business organization found in almost every part of the globe. Brazil is one of the many world countries that coca cola has firmly been able to set its feet on. The wide spread presence of coca cola is due to is various advertising strategies(Allen, 1994). The coca cola company in Brazil employs advertising promotional strategy to ensure it captures the market and keeps its share. Coca cola adopts a competitive pricing policy that ensures the company gets an advantage over its competitors(Isdell, 2011).
Guinness is also another multinational products in the Brazilian markets. It’s an alcoholic drink that sales in the market among other drink of alcoholic nature. Guinness employs various advertising campaigns to secure is market share. It mainly uses advertising, sales promotion and publicity to have its sales going. The pricing strategy of Guinness is one to have the drink widely affordable and to open its market base but also maintain a status. Guinness uses it international recognition standards as an advantage to entry and also a penetrative pricing entry way (Oliver, 2011)
The telecommunication industry is growing each day with mobile phone manufacturing companies expanding their production daily. I phone is one of these companies and part of its international market is South Africa. I phone uses advertising, sales promotion and personal selling to enhance their sales. I phone employs a price skimming strategy in its sales to clearly bring out a sense of quality and specialty in their products and even on its entry.
Techno mobile company is one of the mobile companies in South Africa. It’s a relatively younger company relative to others like Samsung. It’s growing rapidly due to its aggressive advertising, personal selling, sales promotion and product publicity promotion. Techno unlike I phone has a different pricing strategy, it adopted economy pricing which has made their sales widely affordable and facilitate an easy entry to the market.
Tata and Mercedes are among the motor vehicle companies in the Indian market. Tata uses advertising as a main driver to its sales in the market. Mercedes on the other hand uses publicity and direct marketing to enhance its sales. Mercedes employs a price skimming strategy while Tata employs economy pricing strategy. Tata entry to the market was based on charging a low price for penetration while Mercedes uses creaming strategy(Baldwin, 1981).
It’s clear that the success of multinational company mainly relays on how it handles its market. Sales promotion is a critical element in business survival and relevance. Different companies deal with promotion differently in different regions but all is for one similar purpose, boost sales and keep the market-share.