1. CHAPTER OBJECTIVES PROMOTION nDiscuss the purpose of promotion in meeting business and consumer needs. nIdentify the common promotional methods. nExplain the parts of the selling process and how each is used to help customers make effective buying decisions. nIdentify important laws and regulations that apply to advertising and promotion. 2323

2. n To inform and educate. n To introduce product or business. n To announce improvement or product change. n To reinforce features and benefits. n To increase frequency of use. n To increase variety of uses. Advertising Purposes - pg 608 n To convince people to enter a store. n To develop a list of prospects. n To make a brand, trademark, or slogan familiar. n To improve the image of a company of product. n To gain support for ideas or causes. All forms of PAID promotional messages

3. nPublication - newspapers, magazines, prof. journals nMass media - radio, TV nOutdoor - billboards, signs, nDirect - sales letters, catalogs, telemarketing, computer databases nDisplay - window, counter, aisle, trade show nInternet - static banner, buttons, sponsored sites, email Media Choices - pg 609

4. PLANNING AND MANAGING ADVERTISING nThe advertising budget ncompanies allow an amount for advertising when they develop their overall company budget nmost businesses plan the advertising program for one year or less nemergencies may arise that require a quick decision, but planning helps avoid budget misuse nthe amount a business spends on advertising depends more on the characteristics of the product and target market than on the competition

5. PLANNING AND MANAGING ADVERTISING nTiming of advertising nadvertising is more effective at sometimes than others ncompanies spend more advertising dollars seasonally during the time the consumer is willing and able the buy the products or services advertised noccasionally companies advertise to increase purchases at times customers do not traditionally consider buying the product na single advertisement may produce temporary results, but regular advertising is important in building a steady stream of customers nbusinesses often spend their advertising over the entire year to keep their name and brand fresh in the customers mind

6. PERSONAL SELLING nPromotion through direct, personal contact with a customer nStudying the wants of customers nPresenting and demonstrating the product nAnswering customer questions nClosing the sale nFollow-up

7. Studying the wants of customers nBuying motives- the reason why people buy. nExamples: status, appetite, comfort, desire for bargains, recognition, ease of use.

8. Presenting and demonstrating the product nCustomers are interested in what the product will do for them and how they can use it. nCustomers will ask specific Qs about product nSales people must know be able to demo the product

9. Answering customer questions nObjections- concerns or complaints expressed by the customer. nSales people should not be concerned by the questions, but should view them as an opportunity to better understand the customer’s needs and help the customer make the best decision.

10. Closing the sale nSales people should continue to work with customers until it is clear that they do not want the product or until the sale is made. nThis may take several meetings before the decision is made.

11. Follow-up nThe selling process is not complete just because a customer agrees to purchase the product. nIt’s not complete until the sales person makes sure that the customer is satisfied—successful selling. nCheck with customer to make sure order is correct nMay send thank-you note to customer after purchase

12. SALES PROMOTIONS Sales promotions — any promotional activities other than advertising and personal selling intended to motivate customers to buy Regulated by the Federal Trade Commission

13. SALES PROMOTIONS nDesigned to encourage customers to buy immediately nOthers are designed to display the products in an attention getting or attractive way to encourage customers to examine the product nCoupons - effective method of increasing sales for a short time nManufacturers often cooperate with wholesalers and retailers by providing promotional materials

14. TRUTH IN ADVERTISING AND SELLING nFalse advertising nFull disclosure nSubstantiation nCease and desist order nCorrective advertising

15. TRUTH IN ADVERTISING AND SELLING nFalse advertising nDefined by federal law as misleading or in any way that could influence the customers purchase or use of the product nFull disclosure nProviding all information necessary for consumers to make a informed decision nAdvertisers are required to use it

16. TRUTH IN ADVERTISING AND SELLING nSubstantiation nMust prove all claims they make about their products and services in promotions nCease and desist order nRequires the company to stop using specific advertisements

17. TRUTH IN ADVERTISING AND SELLING nCorrective advertising nNew advertising designed to change the false nImpression left by the misleading information

18. nReview Facts n13, 14, 15 nDiscussion Ideas n9, 10 nCase 23-2, pg 622 n1-4 nOwn Business – nDevelop an introductory promotional plan for your business—include methods, media to be used, time schedule, budget, and sample of the promotion.