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PowerPoint Presentation by Charlie Cook The University of West Alabama Longenecker Moore Petty Palich © 2008 Cengage Learning. All rights reserved. CHAPTER 16 Promotional Planning Focusing on the Customer: Marketing Growth Strategies Part 4
© 2008 Cengage Learning. All rights reserved.16–2 Looking AHEAD 1.Describe the communication process and the factors determining a promotional mix. 2.Explain methods of determining the appropriate level of promotional expenditure. 3.Describe personal selling activities. 4.Identify advertising options for a small business. 5.Discuss the use of sales promotional tools. After you have read this chapter, you should be able to:
© 2008 Cengage Learning. All rights reserved.16–3 The Communication Process in Promotion Communication Process Components Sourcethe message sender Channelthe path the message travels Receiverthe recipient of the message Forms of Promotional Communication Nonpersonaladvertising Personalpersonal selling Special formssales promotion
© 2008 Cengage Learning. All rights reserved.16–4 Similarity of Personal and Small Business Communication Processes 16-1
© 2008 Cengage Learning. All rights reserved.16–5 Promotional Communications Promotional Mix A blend of nonpersonal, personal, and special forms for communication techniques aimed at a target market. Makeup of the mix is determined by: Geographical nature of target market Size of promotional budget Products characteristics
© 2008 Cengage Learning. All rights reserved.16–6 Determining the Promotional Budget How much should a small business spend on promotion? Allocating a percentage of sales Deciding how much can be spared Spending as much as the competition Determining what it takes to do the job
© 2008 Cengage Learning. All rights reserved.16–7 Four-Step Method for Determining a Promotional Budget 16-2
© 2008 Cengage Learning. All rights reserved.16–8 Proceed to develop promotion at WTDJ level Comparing Alternative Promotion Expense Estimates Compute WTDJ Is WTDJ equal to or less than others? Compute average of WTDJ, APS, WCS, and ACS Compare WCS with computed average Is WCS equal to or greater than average? Proceed to develop promotion at average level Seek additional funds to supplement promotion YES NO NOYES Key Terms: WTDJ: What it will take to do the job APS: A percentage of sales WCS: What can be spared ACS: As much as the competition spends START
© 2008 Cengage Learning. All rights reserved.16–9 Personal Selling in the Small Firm Personal Selling A sales presentation (promotion) delivered in a one- on-one manner. Requires: Product knowledge Well-prepared sales presentation Ability to build good will
© 2008 Cengage Learning. All rights reserved.16–10 Importance of Product Knowledge Salespersons use product knowledge to: Successfully educate customers about the products advantages, uses, and limitations. Answer customer questions and counter customer objections. Personal selling becomes order-taking when a salesperson lacks product knowledge.
© 2008 Cengage Learning. All rights reserved.16–11 The Sales Presentation: Prospecting Prospecting A systematic process of continually looking for new customers Prospecting Techniques Personal referrals Salesperson initiates customer contact through referral by another party known to the customer. Impersonal referrals Information on potential new customers developed from public records and published sources.
© 2008 Cengage Learning. All rights reserved.16–12 The Sales Presentation: Prospecting (contd) Prospecting Techniques (contd) Marketer-initiated contacts Market surveys are used to identify prospects Customer-initiated contacts Potential customers are identified through their contacts with the firm.
© 2008 Cengage Learning. All rights reserved.16–13 Practicing the Sales Presentation Improves the salespersons success rate. Prepares salesperson for objections related to price, product, timing, source, service, or need. Techniques for dealing with objections: Direct denial Indirect denial Boomerang technique Compensation method Pass-up method
© 2008 Cengage Learning. All rights reserved.16–14 Overcoming Customer Objections I had problems with a similar product before and dont want to go through that again! Im too busy. I like what you have said, but I need to wait. Yes, I understand your attitude, but have you considered... ? Thats why I want to explain how I can save you time by... Lets figure how much you can save by acting now. Your product sounds just like your competitors. There are similarities, but we have... at a better price. Im not sure I can risk a changeover to your product. Let me tell you how a competitor decided to buy from me.
© 2008 Cengage Learning. All rights reserved.16–15 Making the Sales Presentation Adapting the sales approach to the customers needs: Avoid a canned sales talk. Speak the customers language. Answer every objection explicitly and adequately. Be enthusiastic, friendly, and persistent. Be personally supportive of the customer.
© 2008 Cengage Learning. All rights reserved.16–16 Customer Goodwill and Relationship Selling Relationship Selling Building customer goodwill for future sales to satisfied customers through: Maintaining a good personal appearance. Having a pleasant personality. Using professional etiquette in customer contacts. Understanding the customers point of view. Maintaining ethical standards in the relationship.
© 2008 Cengage Learning. All rights reserved.16–17 The Compensation Program for Salespeople Nonfinancial Rewards Personal recognition of employees by the firm Plaques and Employee of the Month awards Providing perks to superior performers. Personal satisfaction drawn by salespersons from doing their work well.
© 2008 Cengage Learning. All rights reserved.16–18 Compensating Salespeople Financial Rewards Commissions Compensation paid as percentage of sales productivity. Strong sales motivator Straight salary Compensation paid regardless of sales made. Combination of commissions and salary Balance of two compensation forms is adjusted to provide an increasing proportion of commission as salesperson gains experience.
© 2008 Cengage Learning. All rights reserved.16–19 Advertising Practices for Small Firms Advertising The impersonal presentation of a business idea through mass media. Advertising Objectives To sell by informing, persuading, and reminding. To serve as a complement to product quality and efficient service. To properly reflect changes in customer needs and preferences.
© 2008 Cengage Learning. All rights reserved.16–20 Types of Advertising Product Advertising The presentation of a business idea designed to make potential customers aware of a specific product or service and create a desire for it. Institutional Advertising The presentation of information about a particular firm, designed to enhance the firms image.
© 2008 Cengage Learning. All rights reserved.16–21 Obtaining Assistance with Advertising Advertising Agencies Furnish design, artwork, and copy for ads Evaluate/recommend media with pulling power Evaluate the effectiveness of advertising appeals Advise on promotion and merchandise displays Conduct market sampling studies Furnish mailing lists Other Sources Suppliers Trade Associations
© 2008 Cengage Learning. All rights reserved.16–22 Advertising Decision Factors Frequency of Advertising With regularity for effectiveness and continuity Introduction of new uses for established products Introduction of new products and services Where to Advertise Appropriate media mix determined by: Geographical area for target market coverage Customer type targeted by advertising campaign Advertising media customarily used by industry Type of business Web advertising on the World Wide Web (Internet)
© 2008 Cengage Learning. All rights reserved.16–23 Advantages and Disadvantages of Major Advertising Media 16-3 Source: Charles W. Lamb, Jr., Joseph F. Hair, Jr., and Carl McDaniel, Marketing, 9th ed. (Cincinnati: South-Western, 2008), p. 475.
© 2008 Cengage Learning. All rights reserved.16–24 Web Advertising Basic Web Promotions Banner ads Advertisements that appear across a Web page, often as moving rectangular strips Pop-up ads Advertisements that burst open on computer screens Direct promotion Advertising delivered by means of electronic mail Spam: unsolicited
© 2008 Cengage Learning. All rights reserved.16–25 Web Advertising (contd) Basic Web Promotions (contd) Web sponsorships A type of advertising in which the firm pays another organization for the right to be part of that organizations Web page. Linkages One firm pays another to include a click-on (click- through) advertising link on its Web site. A corporate Web site on the Internet Creating and registering a site name Building a user-friendly Web site Promoting the Web site
© 2008 Cengage Learning. All rights reserved.16–26 Website Design Tips 16-4 Tip 1: Make It Easy to Buy Tip 2: Make a Strong First Impression Tip 3: Minimize Distractions: Advertising Isnt Always Necessary Tip 4: Make It Personal Tip 5: Avoid Long Instructions Tip 6: Provide Visual Clues to Location Tip 7: Show Off Products Tip 8: Encourage Spontaneous Purchases Tip 9: Alternate Background Colors in Long Lists Tip 10: Allow Users to Collect Items Source: Nadja Vol Ochs, Easy-to-Buy E-Commerce Site Design Tips, accessed July 13, 2007.
© 2008 Cengage Learning. All rights reserved.16–27 Options for Getting Your Website Listed in Search Engines Use a Free Submission Service 2.Use a Low-Cost, Automated Submission Service 3.Do It Yourself by Manually Submitting Your Website to Individual Search Engines 4.Use a Professional Search Engine Consultant 5.Use Submission Software Source: Adapted from the Internet Marketing Centers website, accessed July 13, 2007.
© 2008 Cengage Learning. All rights reserved.16–28 Sales Promotional Tools Sales Promotion An inclusive term for any promotional techniques that are neither personal selling or advertising Used in combination with personal selling and advertising. Specialties Tangible and enduring functional items of worth distributed personally to recipients that serve as reminders of the firm. Pens, key chains, magnets, and clothing imprinted with the name, logo, or slogan of the firm.
© 2008 Cengage Learning. All rights reserved.16–29 Sales Promotion Tools (contd) Trade Show Exhibits Provide hands-on experience with products. Are less costly than personal selling. Making Trade Show Exhibits Effective Check out the trade shows history. Prepare a professional-looking display. Have a sufficient quantity of literature on hand. Make sure you have a good product. Do pre-show promotion. Have a giveaway or gimmick. Train booth personnel. Follow up!
© 2008 Cengage Learning. All rights reserved.16–30 Sales Promotion Tools (contd) Publicity Information about a firm and its products or services that appears as a news item, usually free of charge. Provides visibility for the firm Requires regular contacts with the news media
© 2008 Cengage Learning. All rights reserved.16–31 Sales Promotion Tools (contd) When to Use Sales Promotion For manufacturers To stimulate channel membersretailers and wholesalersto market a firms products. For wholesalers To induce retailers to buy inventories earlier than they normally would. For retailers To persuade customers to make a purchase. Strategic Alliances and Sales Promotion Joining with another firm to promote products by sharing marketing resources and customers
© 2008 Cengage Learning. All rights reserved.16–32 Key TERMS promotion promotional mix personal selling prospecting advertising product advertising institutional advertising banner ads pop-up ads promotion Web sponsorship linkage sales promotion publicity
Part 5 PowerPoint Presentation by Charlie Cook Copyright © 2003 South-Western College Publishing. All rights reserved. All rights reserved. Promotional.
PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business & Professional Publishing. All rights reserved.
14-1 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Chapter 14 Promotional Strategy In the.
PowerPoint Presentations for Small Business Management: Launching and Growing New Ventures, Fifth Canadian Edition Adapted by Cheryl Dowell Algonquin College.
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides prepared by Joe Rosagrata Promotion Strategies Chapter 9.
Chapter 20 Personal Selling And Sales Promotion0.
Chapter 16Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1 MKTG Designed by Amy McGuire, B-books, Ltd. Prepared.
6-1 Chapter 6 Copyright © 2003 by Nelson, a division of Thomson Canada Limited. PowerPoint Presentation by Thomas M c Kaig, Ryerson University Promotional.
Essentials of Marketing Chapter 13 Promotion – Introduction to Integrated Marketing Communication McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill.
7-1 Chapter 7 Copyright © 2010 by Nelson Education Limited. Promotional and Pricing Strategies 7 PowerPoint Presentation by Ian Anderson, Algonquin College.
Part Seven Promotion Decisions 18 Integrated Marketing Communications.
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 8 Producing and Marketing Goods and Services.
The Promotion Strategy Glencoe Entrepreneurship: Building a Business Developing a Promotion Strategy Budgeting and Implementing Promotional Plans 12.1.
1.Describe the communication model and the factors determining a promotional mix. 2.Explain methods of determining the appropriate level of promotional.
Integrated Marketing Communications Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook 17 Part Five Promotion.
Copyright © 2010 Nelson Education Limited. PowerPoint Presentations for Small Business Management Longenecker, Donlevy, Calvert, Moore, Petty & Palich.
Part 5 PowerPoint Presentation by Charlie Cook Copyright © 2003 South-Western College Publishing. All rights reserved. All rights reserved. Product, Price,
1 Chapter 15 Advertising, Sales Promotion, and Public Relations.
© Prentice Hall, 2005 Business In Action 3eChapter Developing Distribution and Promotional Strategies.
Business Markets and Business Buyer Behavior 6 Principles of Marketing.
The Promotion Strategy 1 Explain the role of the promotion strategy. Explain how to formulate promotion plans. Describe considerations for putting together.
1. 2 Objectives Describe the role of promotion. List three goals of promotion. Describe how the communication process works in promotion. Explain the.
Chapter integrated marketing communications sixteen McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Brief Intro to Promotion & Promotional Mix Objectives Explain the role of promotion in business and marketing Identify the various types of promotion.
OH 3-1 Finding and Recruiting New Employees Human Resources Management and Supervision 3 OH 3-1.
The Promotion Strategy Back to Table of Contents.
1 Chapter 16: Promotional Planning for Competitive Advantage Prepared by Amit Shah, Frostburg State University Designed by Eric Brengle, B-books, Ltd.
Copyright 1999 Prentice Hall 15-1 Chapter 15 Advertising, Sales Promotion and Public Relations PRINCIPLES OF MARKETING Eighth Edition Philip Kotler.
Marketing Communications. Marketing Communications (Promotion) Definition (Promotion) Attempts by an organization to communicate with its customers,
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Unit 6 Promotion Chapter 17 Promotional Concepts and Strategies Chapter 18 Visual Merchandising and Display Chapter 19 Advertising Chapter 20 Print Advertisements.
Copyright © Houghton Mifflin Company. All rights reserved. 18–1 What Is Personal Selling? Personal Selling –Paid personal communication that informs customers.
Section 17.1 The Promotional Mix Chapter 17 promotional concepts and strategies Section 17.2 Types of Promotion.
©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Pricing and Promotion The Business Buying Decision Pricing and.
7-1. Prospecting – The Lifeblood of Selling McGraw-Hill/Irwin Fundamentals of Selling, 10/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights.
Chapter Fifteen Developing Integrated Marketing Communications.
Planning the Promotion Advertising and Sales Promotion 1 Public Relations and Personal Selling.
Chapter 8 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Products, Services, and Brands Building Customer.
Chapter 19 What Is Promotion? Any form of communication a business or organization uses to inform, persuade, or remind people about its products and improve.
PowerPoint Presentation by Charlie Cook The University of West Alabama Longenecker Moore Petty Palich © 2008 Cengage Learning. All rights reserved. CHAPTER.
11-1 Creating the Consultative Sales Presentation Selling Today 10 th Edition CHAPTER Manning and Reece 11.
Copyright © 2004 South-Western. All rights reserved.14–1 Learning Goals Explain promotion benefits. advertising personal selling sales promotion. public.
Sales Promotion, Events, and Sponsorships Part 5: Integration and Evaluation Chapter 16.
Integrated Marketing Communication Definition The Marketing Communications Mix The specific mix of advertising, personal selling, sales promotion,
Chapter 18 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 18 Sales Promotion and Personal Selling
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 12 SLIDE Financial Planning Financial Records.
Chapter 16 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 16 Integrated Marketing Communications Professor Close.
Feasibility and Business Planning Back to Table of Contents.
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