Headquarters influence



Figure 20-5 Central versus local roles in international sales promotion require uniformity in marketing communications, the promotional program should be determined at the headquarters level. Decisions regarding overall promotional strategy—including international communications objectives, positioning, allocation of the communications budget to sales promotion versus advertising, and weight of consumer versus trade promotions—are made at the headquarters level.102

While the promotional strategy for global brands is determined by global product managers at headquarters, implementation of the programs should be left to local management. It is important to make the promotional strategy broad enough to allow for differences in diverse local markets. Headquarters is also responsible for encouraging the cross-fertilization of ideas and practices among local managers and facilitating the transfer of information. Some companies are now using promotional agencies that have offices around the globe and can coordinate programs in various markets. Exhibit 20-20 shows an ad for DVC Worldwide touting the agency's integrated marketing communications capabilities in local as well as global markets.

Regional brands usually do not require the same level of standardization as global brands, and the promotional strategy can be developed by regional offices and carried out at the local level. However, regional promotions should avoid contradictory brand communications and promotional activities that might upset local activities in nearby markets. The role of national-level brand managers is adoption and adaptation. They determine what promotional ideas to adopt from the region and adapt them to local conditions.

For local brands, decisions regarding promotional strategy, program design, and execution are left to local managers. Of course, local managers may benefit from information about the promotions used in other local markets.

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