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Chapter 9 PROMOTION. Objectives Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relation.

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Presentation on theme: "Chapter 9 PROMOTION. Objectives Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relation."— Presentation transcript:

1 Chapter 9 PROMOTION

2 Objectives Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relation Principles of Personal Selling

3 Major Decisions in Advertising Objectives Setting Budget Decisions Message Decisions Media Decisions Campaign Evaluation

4 Informative Advertising Build Primary Demand Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Comparison Advertising Compares One Brand to Another Reminder Advertising Keeps Consumers Thinking About a Product. Reminder Advertising Keeps Consumers Thinking About a Product. Advertising Objectives Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time

5 The Five Ms of Advertising Mission Sales goals Adver- tising objectives Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Message Message generation Message evaluation and selection Message execution Social-responsibility review Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation Measure- ment Communi- cation impact Sales impact

6 Advertising Budget Factors Stage in the Product Life Cycle Market Share & Consumer Base Competition & Clutter Advertising Frequency Product Substitutability

7 Profiles of Major Media Types Newspapers Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability Limitations:Short life; poor reproduction quality; small pass-along audience Television Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations:High absolute costs; high clutter; fleeting exposure; less audience selectivity Direct Mail Advantages:Audience selectivity; flexibility, no ad compe- tition within same medium; allows personalization Limitations:Relative high cost; junk mail image

8 Radio Advantages: Mass use; high geographic and demographic selectivity; low cost Limitations:Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences Magazines Advantages:High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations:Long ad purchase lead time; waste circulation; no guarantee of position Outdoor Advantages:Flexibility; high repeat exposure; low cost; low message competition Limitations:Little audience selectivity; creative limitations Profiles of Major Media Types

9 Classification of Advertising Timing Patterns Month Number of messages per month Concen- trated (1)(2)(3) LevelRisingFallingAlternating (4) Continuous (8)(7)(6)(5) (9) Inter- mittent (10)(11)(12) (9)

10 Advertising Strategy Message Execution Typical Message Execution Styles Typical Message Execution Styles Testimonial Evidence Testimonial Evidence Slice of Life Scientific Evidence Scientific Evidence Lifestyle Technical Expertise Technical Expertise Fantasy Musical Personality Symbol Personality Symbol Mood or Image Mood or Image Turning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest.

11 Advertising Program Evaluation Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?

12 Why the increase in Sales Promotion? Growing retailer power Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Increased managerial accountability Competition Clutter

13 Long-Term Promotional Allocation Year %t of total - 3 yr.MA Trade Promo Media Adv Cons. Promo Cox Direct 19th Annual Survey of Promotional Practices

14 Channels of Sales Promotions MANUFACTURER RETAILER TradePromotions CONSUMER ConsumerPromotions Push Pull RetailPromotions

15 Consumer Promotion Consumer-Promotion Objectives Consumer-Promotion Tools Point-of-Purchase Displays Point-of-Purchase Displays Premiums Price Packs Cash Refunds Coupons Samples Patronage Rewards Games Sweepstakes Contests Advertising Specialties Advertising Specialties Patronage Rewards Entice Consumers to Try a New Product Entice Consumers to Try a New Product Lure Customers Away From Competitors Products Lure Customers Away From Competitors Products Get Consumers to Load Up on a Mature Product Get Consumers to Load Up on a Mature Product Hold & Reward Loyal Customers Hold & Reward Loyal Customers Consumer Relationship Building Consumer Relationship Building

16 Deal Proneness, Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997 Examination of deal proneness among consumers in a supermarket setting Surveys & Grocery Receipts used Eight types of deals: Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon

17 Deal Proneness, Liechtenstein, Burton, & Netemeyer Cluster analysis yielded two interpretable results: 49% are deal prone, 51% not 24% High Deal prone, 50% intermediate, 26% deal insensitive Deal-proneness a generalized construct - (crosses type of promotion) Younger & Less educated more likely to be deal prone

18 Trade-Promotion Objectives Trade-Promotion Tools Specialty Advertising Items Specialty Advertising Items Contests Free Goods Buy-Back Guarantees Buy-Back Guarantees Allowances Price-Offs Patronage Rewards Push Money Discounts Premiums Displays Persuade Retailers or Wholesalers to Carry a Brand Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Promote a Brand in Advertising Push a Brand to Consumers Trade Promotions

19 Business-Promotion Objectives Business-Promotion Tools Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople Conventions Trade Shows Sales Contests Business-to-Business Promotion

20 Special Events Special Events Written Materials Written Materials Corporate Identity Materials Corporate Identity Materials Speeches News Audiovisual Materials Audiovisual Materials Major Public Relations Tools Public Service Activities Public Service Activities Web Site

21 When might you decide to use Personal Selling? Tight budget (straight commission) Concentrated Market Few buyers High value product Product must be customized Personal contact important Must demonstrate product Product involves trade-in/up

22 Sales force objectives Sales force strategy Sales force structure Sales force size Sales force compensation Designing the Sales Force

23 Sales Force Structures Complexity Territorial Product Market

24 Workload Approach to Sales Force Size Classify customers by size Determine desirable call frequencies Determine total sales calls needed per year Determine average number of sales calls per sales representative per year Divide total by number per rep

25 Sales Force Compensation Fixed Variable Expense Allowances Benefits

26 Recruiting & selecting sales representatives Training sales representatives Supervising sales representatives Motivating sales representatives Managing the Sales Force Evaluating sales representatives

27 Time and Duty Analysis Preparation Travel Food & Breaks Waiting Selling Administration

28 Satisfaction Rewards Performance Effort Motivation Sales Representative Motivation

29 Evaluating Salespeople Sources of Information Sources of Information Annual Territory Marketing Plan Annual Territory Marketing Plan Work Plan Work Plan Call Reports Call Reports

30 Training in sales techniques & professionalism Negotiation skills Relationship-building skills Improving Sales Force Effectiveness

31 The Zone of Agreement Zone of agreement Sellers surplus Sellers reservation price (seller wants s or more) Seller wants to move x to the right s Buyers reservation price (buyer wants b or less) Buyer wants to move x to the left b x Finalcontract $ Buyers surplus

32 Performance Evaluation Current-to-Past Customer Satisfaction Qualitative Evaluation

33 Step 1. Prospecting andQualifying Identifying and Screening For Qualified Potential Customers. Steps in the Selling Process Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Step 2. Pre-approach Step 3. Approach Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Step 4. Presentation/Demonstration Telling the Product Story to the Buyer, and Showing the Product Benefits. Telling the Product Story to the Buyer, and Showing the Product Benefits.

34 Steps in the Selling Process Step 5. Handling Objections Step 6. Closing Step 7. Follow-Up Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Asking the Customer for the Order. Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.

35 Alternative Steps: Find em Grab em Show em Answer em Sell em Keep em


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