Why are Sales promotion activities mainly local?

Sales promotion changes behavior of customers and they will act upon a sale, an offer, or a chance to win something. Behaviors are tightly bounded to cultural norms. These consumer behaviors, perceptions of a particular promotional tool are varied from one country to another due cultural difference. Promotion activities include coupons, discounts, in-store displays, trade shows, samples, in-store demonstrations, and contests.

• Low income counties most likely to use promotional tools like, free samples and demonstrations rather than coupons or on-pack premiums. So no point of issuing global capon through internet or emails because their inability to purchase that global product even though it is offered at low prices.

• Market maturity can be changed from one country to another. For a global product, one country may have a growing market and the same time one country may have very matured market. These different markets should be treated separately. Growing market needs coupons, free samples and matured market may need loyalty programs or allowances for its consumers.

• Government regulations may vary from country to another.

• Trade structure or dominance in the retailing industry can affect the use of sales promotions. Different tools are needed which is powerful enough to defeat dominated retailers products.