Effective Promotional Techniques Busn 101 Chapter 16 Effective Promotional Techniques

Goals Define Promotion Traditional tools in the Promotion Mix: Advertising Personal selling Public Relations Sales promotion Define Advertising Advantages and disadvantages of different advertising media Steps for B2B and B2C selling process Role of public relations department (including publicity) Forms of sales promotion (including sampling) Word of mouth, Viral marketing, Blogging, Podcasting Guerrilla (not gorilla) marketing

Promotion Define Promotion Promotion Mix An effort by marketers to inform and remind people in the target market about products and to persuade them to participate in an exchange Promotion Mix The combination of promotional tools an organization uses IMC (Integrated Marketing Communication) A technique that combines all the promotional tools into one comprehensive, unified promotional strategy

Traditional Promotional Mix Personal Selling Sales Promotion Public Relations Advertising Product See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix. See text pages: 432

Steps In A Promotional Campaign Identify the target market Define the objectives for each element in promotion mix Determine the promotional budget Develop a unifying message Implement the plan Evaluate effectiveness See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix. See text pages: 432

Objectives of Integrated Marketing Build Brand Equity Provide Information Manage Demand & Build Sales Differentiate Products Influence Perceptions, Attitudes, & Buyer Behavior Also available on a Transparency Acetate See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix. Objectives of Integrated Marketing This slide provides the students information regarding the goals of integrating the various marketing tools to reach the consumer. All objectives within an integrated marketing strategy should include the following: Significantly increase the number of people to experience the message at nominal incremental cost. Leverage the media’s ability to deliver an integrated marketing message. Deliver an entertaining segment that elicits emotional response. Utilize all medium to effectively elicit a response to your promotion. Demonstrate the importance of each and every person reached by your message.

Advertising Paid nonpersonal communication through various media by organizations and individuals who are in some way indentified in the advertising message Ads: Inform us http://www.youtube.com/watch?v=TVKcTiPWtMQ&f eature=PlayList&p=9D48FA46A835E6FD&playnext_ from=PL&index=5&playnext=2 Sometimes they try to trick you http://www.youtube.com/watch?v=Br3gdKguUx0 Provide free TV, Radio, print media, e-mail, news

Advertising Advertising media: Newspaper, television, radio, magazines, outdoor, direct mail, yellow-pages, Internet The growing use of Infomercials Moving to the Internet Global advertising See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. See text pages: 433-438

Internet Ads and Promotion High in search results (people are searching for item) Paid ads at Google E-mail ads Banner ads Pop-up banner ads Yahoo e-mail, news sites have lots of ads On-line coupons if you signup at web site: Give you coupons Send you e-mails Watch TV, but first you must watch ad YouTube ads Easy to navigate web site Videos at web site Facebook

Advertising

Infomercials Grossing Over 1 Billion In Billions See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. Source: Business 2.0, June 2005

U. S. Online Ad Spending Example: http://news. yahoo U.S. Online Ad Spending Example: http://news.yahoo.com/s/nm/20081111/bs_nm/us_gm_shares;_ylt=Ar3fSc.gwgrrVyixsrhkRw7Cw5R4 http://hk.youtube.com/results?search_query=TRUCKS+BULLDOZERS&search_type=&aq=f WWW.GOOGLE.COM Also available on a Transparency Acetate See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet. U.S. Online Ad Spending This slide presents the US online spending on advertising. Ask the student what pattern do they see? There is a steady growth from 1998 to 2000 and then the spending declined for the next two year and started to revive again. What rationale can explain this spending behavior of the advertisers? The dot com era of the late nineties was peaking and everyone was jumping on the bandwagon. Hence, the increment in the Internet ad spending until the year 2000 when the bubble busted with dot com companies and the economy suffered for the next two years which correlated with the declining spending on advertisements. The economy, the business, and the consumer confidence started to revive in 2002-2003 and is evidenced by the increased ad spending by the advertisers. Source: Investors.com; Advertising Age, 2005

Interactive Promotion Promotional process that allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships WWW.MREXCEL.COM

Advantages And Disadvantages Of Different Advertising Media

Selling Personal Selling The face-to-face presentation and promotion of goods and services Helping others satisfy their wants and needs About 10% of labor force does personal selling

Selling Prospecting Qualifying Prospect Trial Close Researching potential buyers and choosing those most likely to buy Qualifying In the selling process, making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message Prospect A person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message Trial Close A step in the selling process that consists of a question or statement that moves the selling process toward actual close

Steps in the Selling Process (B2B) Prospect and Qualify (wants it & can buy) Preapproach (know customer) Approach (first impressions are important) Make Presentation (match benefits of product to needs of customer) Answer Objections (truth builds trust) Close Sale Follow Up (key part to building relationships) See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. See text pages: 439-441

Steps in the Selling Process (B2C) Follow up See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes. See text pages: 442 Close sale Make presentation Start Ask questions Approach

Public Relations Steps Publicity Listen to the public. Change policies and procedures. Inform people that you’re being responsive to their needs. Publicity Free More Effective Than Advertising Believable No Control No Repetition See Learning Goal 4: Describe the role of the public relations department, and tell how publicity fits in that role. See text pages: 442-443

Sales Promotion Techniques B2B Trade Shows Portfolios Deals Catalogs Conventions B2C Coupons Cents-off Promotions Sampling Premiums Sweepstakes Contests Bonuses Catalogs Demonstrations Special Events Lotteries In-store Displays See Learning Goal 5: Explain the importance of various forms of sales promotion, including sampling. See text pages: 443-444

Coupon Statistics Average Face Value Amount saved in 2004 93 cents (2004); 46 cents (1990) Amount saved in 2004 $2.9 billion Number of coupons redeemed in America in 2004 3 billion Coupons rank 2nd as purchase motivators (Largest: Free Samples) Also available on a Transparency Acetate See Learning Goal 5: Explain the importance of various forms of sales promotion, including sampling. Coupon Statistics This slide presents some interesting statistics on coupons. First coupon was distributed in 1894 for Coca-cola. Ask the students – how many of them have clipped and used the coupons? Where did they get the coupons used? Was that the motivation for trying the product? What was their experience? Would they have tried the product without the coupons? This slide also goes well with the previous slide: Tips on Issuing Coupons. The percentage of available coupons redeemed in 2004 was 1 percent only (which was 3 billion coupons). Ask the students – Using coupons would be a Push or Pull strategy, according to the chapter? (Pull strategy) Source: St. Louis Post-Dispatch Everyday, July 2005

Sales Promotion Internal & External Sampling Word-Of-Mouth Viral Marketing Blogging Podcasting See Learning Goal 6: Give examples of word of mouth, viral marketing, blogging, and podcasting. See text pages: 444-447

Putting it all Together Convince wholesalers and retailers to stock and sell Producer uses advertising, personal selling, sales promotion to convince the intermediaries Idea is to push the product through the distribution system to the stores Heavy advertisements and sales promotion efforts Directed at consumers so that they will request the products from retailers Products are pulled down through the distribution system See Learning Goal 6: Give examples of word of mouth, viral marketing, blogging, and podcasting. See text pages: 448-449

Publicity Any information about an individual, product, or organization that’s distributed to the public through media and that’s not paid for or controlled by the seller “Talking part of sales promotion” Greatest advantage is its believability

Sales Promotion The promotional tool that stimulates consumer purchasing and dealer interest by means of short- term activities Internal: Keep employees enthusiastic and train well External Coupons Sampling Contests

Sampling A promotional tool in which a company lets consumers have a small sample of a product for no charge

Word-of-mouth promotion A promotional tool that involves people telling other people about products they have purchased

Guerrilla (Not Gorilla) Marketing Studying market for your product very carefully, then going after that market using nontraditional (even outrageous) promotional means Red Bull: Extreme Sports events College parties Contests and award ceremonies Obama: YouTube videos E-mailed videos

Viral Marketing The term now used to describe everything from paying people to say positive things on the internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific web sites Does your viral video get 5 million hits at YouTube?

Blogging Blog On online diary (web log) that looks like a web page but is easier to create and update by posting text, photos, or links to other sites

Podcasting A means of distributing audio and video programs via the internet that lets users subscribe to a number of files, also known as feeds, and then hear or view the material at the time they choose

Push Strategy Promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise

Pull Strategy Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from the retailers