What are the issues and problems related to sales promotion in different parts of the world?

What will be an ideal response?

Many companies are very selective in targeting their sampling programs. In the case of coupons, retailers must bundle the redeemed coupons together and ship them to a processing point. Many times, coupons are not validated at the point of purchase; fraudulent redemption costs marketers hundreds of millions of dollars each year. Sometimes the code on packaging can be read easily and used without purchasing the product. Thus, the formulation and execution of sales promotion requires planning in addition to creativity. In some emerging markets, sales promotion efforts can raise eyebrows if companies appear to be exploiting regulatory loopholes and lack of consumer resistance to intrusion. Sales promotion in Europe is highly regulated, whereas it is very popular in Scandinavia. In the Nordic countries there are regulations pertaining to sales promotion. A recent study examined coupon usage and attitudes toward both coupons and sweepstakes in Taiwan, Thailand, and Malaysia. The study has particular relevance to global companies that are targeting these and other developing nations in Asia. All three countries in the studies were collectivist, and the researchers found that positive attitudes of family members and society as a whole influence an individual's positive attitude toward coupons and coupon usage. However, the three nations show some differences in value orientation. For example, Malaysia has a higher power distance and lower uncertainty avoidance than the others. For Malaysians, the fear of public embarrassment was a constraint on coupon usage. In all three countries, media consumption habits were also a factor; persons who were not regular readers of magazines or newspapers were less likely to be aware that coupons were available. Consumers in Taiwan and Thailand look more favorably upon coupons than sweepstakes. Thus, one implication for marketing in developing countries is that, despite cultural differences, increased availability of promotions will result in higher levels of consumer utilization.