· Promotional Strategy

Promotional Strategy should similarly take into account anticipated exchange rate changes. A key issue in any marketing program is the size of the promotional budget for advertising, personal selling & merchandising.

Promotional decisions should explicitly build in exchange rates, especially in allocating budgets among countries.

A firm exporting its products after a domestic devaluation may well find that the return per dollar expenditure on advertising or selling is increased because of the product’s improved price positioning. Foreign currency devaluation, on the other hand, is likely to reduce the return on marketing expenditures & may require a more fundamental shift in the firm’s product policy.