Mcom 2nd Year Meaning Of Product Promotion Study Notes

MCOM 2nd Year Meaning Of Product Promotion Study Material Notes MCOM Study Material Notes Sample Model Practise Papers


Product promotion means commission with customer. Conta development in international marketing requires the improvement individual designing of a product line for each nation. This objectivem achieved by periodical development and improvement in present product

MCOM 2nd Year Scope Of The International Marketing Study Notes
MCOM 2nd Year Scope Of The International Marketing Study Notes

To review and changing the product line for development is called ‘prod promotion. Those changes grow from consumer preferences, tactics competitors legal requirements of host nation, objectives, cost structure of firm etc. Thus, it may become important to promote the products for meet the requirements of customer and to stay in international market.

The changes in product line may be done in different forms: 

(i) The first mode to make necessary changes is by normally exte additional domestic product in foreign market. 

(ii) Second form of promotion of product includes a particular product my be made for a specific foreign nation. After these changes, a product can be prepared for international marketit And if a product is not suitable for any nation that should be eliminated. The are many modes to change the product line and promotion of goods.

The promotion of goods is possible by following strategies :

1. By Introducing Products to the International Line. Internatio product line is the best way of making promotion of products. Because eve domestic producer wants his product quality to join the international mark In international market a domestic market may gather information about lat technology and necessary information about developing a product line. When product line has properly developed, the product promotion is automatica done.

A product may be introduced to the international product line for t reasons : (i) to fulfill the customers’ requirement which they want from speci market abroad, and (ii) to optimise the current marketing capacity. The produ may be added to fulfill above said requirements.

For example: A chemical company selling fertiliser and pesticides abro in developing nations. The company may discover an extreme requirement good quality of seeds and thus this company may add new product (seeds) to existing product line.


The same company may fulfill the requirements of rural people by setti up an effective distribution channel. The rural customer may use that prodi through distribution channel. This distribution channel helps in promoting product.

Mostly a company sells a product which is related or not related with company.

For example : Coca-cola sells two fruits drink only in Japan, i.e., a can coffee flavoured non-carbonated drink and second is carbonated orange drink. These products of Coca-cola do not available in United States. O example, is in Europe and Japan Compbell Soup Company sells gourmet cookies in Japan but not in U.S.

Colgate-palmolive company also follows this strategy. The product of belonging other company scatters by Colgate. As Wilkinson razor sold by Colgate for their British producer.

The promotion of product or decision to add a new product affected by the act together harmoniously paying attention in connection with marketing. finances and environment. The act together is called ‘marketing compatibility and it refers to the set in comparison with new product addition and the existing marketing compatibilities of the main company and its overseas subsidiary.

An optimum compatibility is useful whereas a low compatibility affect the profitable marketing.

For product promotion, it needs appropriate examination of the financial risk and possibilities regarding the product addition under consideration. The financial compatibility may be judged on the basis of profitability and cash flow of proposed addition.

Environmental compatibility also discussed under this method. It includes customer, competitive reactions and political problem. The addition of new product into existing line should not grow any problem to either existing or potential consumer. If political or legal conditions are against of addition new product than a marketer should cancel the plan of adding new product.

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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