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MCOM 2nd Year Meaning Of Product Promotion Study Material Notes

2. By Introducing New Product to a Host Country. Promotion plays a vital role in providing information of the product to the foreign customers.

Through promotion, a marketer may introduce a new product to host country. A product may be new for the host country but not new to the overseas market.

For example : Kodak started selling its bucket Camera in Asia in 1982. It was a new product to Sri Lanka, Pakistan, Thailand and other countries in Asia. Though it was already available in United States and not new for the U.S.

Product promotion is required for the introduction of new products in domestic or international market. The product promotion helps in making decisions about:(i) Which new product has to introduce in international market? (ii) What is the perfect time and sequence of introducing new product? (iii) A product is marketed in United Nations whether to introduce in other countries?

A nation first introduces the product in countries which are same in culture of that country.

For example : U.S. introduced the product first in Canada, Australia and Great Britain, because those nations are culturally similar to the U.S. Those countries are main recipients of new U.S. international offerings.

Those countries received almost half of new introducing products.

Developed countries also received a big part of new products. One-third part is secured to the developed countries. Whereas developing countries received a little part or 1/6 part of introducing product.

Product promotion provides information about introducing product and it may increase the part of sharing into international market.

Different industries also have varied new product introduction. A very little Dart or half of office machines, computers introduced to the international market whereas textiles, paper, fabricated metals have a big part in foreign market.

If the timing is studied we see that the united state corporations have been aunching new products faster than before to international market.


Promotion plays a vital role in providing information of the product to the foreign customers. It also creates the desirability of the product among forcin potential buyers. Foreign companies desire to communicate with their marketin intermediaries and potential buyers to ensure favourable sentiments towar themselves and their products. Promotion is more culture bound than othe promotions. Hence the foreign companies must take special care in promotin. the product in the host country.

Global promotion includes all forms of marketing communications that see to affect the buying behaviour of existing and potential customers including advertising, personal selling, direct mail, point of sale displays, literature publicity and word-of-mouth communications. Marketing text have referred these promotion as above line (media promptness) below line ‘move focussed non-media promotions and direct selling).

The purpose of promotion is both to communicate with buyers and to influence them. Effective promotion requires an understanding of the process of persuasion and how this process is influenced by environmental factors. The potential buyer must not only receive the desired information but should also be able to comprehend that information. The information must be sufficiently patented to motivate this buyer to react positively.

The major advantages of global promotion, as with domestic marketing are to enhance the company’s image vis-a-vis its competitors and to inform, educate and influence the attitudes and buying behaviour of the individuals companies institutions and or government agencies that make up a target market.

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