12/2/20151 PROMOTION Identify the components of the promotional mix.

12/2/20152 Promotion: The communication with customers about products (goods and services) to create demand and encourage purchases.

12/2/20153  Promotion may be done locally, regionally, nationally, or internationally.  The goal of promotion is to communicate with the largest target audience possible.  Promotion helps to attract new customers, increase sales to existing customers, and stimulate brand name recognition.

12/2/20154 Promotion should be designed to…  Create an awareness and understanding of companies and/or products and to introduce new products, inform consumers or changing prices, and explain new services.  Convince consumers about the benefits or using certain products or patronizing particular businesses.  Remind consumers where to purchase certain products, to encourage purchases, and to stimulate additional purchases.

12/2/2015www.brainybetty.com5 Promotion is one of the four major elements of the marketing mix.  Product  Place  Price  Promotion

12/2/2015www.brainybetty.com6  Promotional activities affect how customers view a company.  Deceptive or misleading promotion practices can harm a business.

12/2/2015www.brainybetty.com7 Promotional mix: The combination of all types of communication used by a business to inform, persuade, or remind consumers about a company and/or its products.

12/2/20158 Promotional mix elements  Personal selling  Advertising  Public Relations  Publicity  Sales promotion  Remember  PAPS PAPS

12/2/20159 Advertising Any PAID form of NONPERSONAL presentation of ideas, goods, or services made by an IDENTIFIED SPONSOR.

12/2/ Personal selling PERSONALIZED, TWO-WAY COMMUNICATION with a customer in the process of exchanging merchandise for money or credit.

12/2/2015www.brainybetty.com11 Personal Selling  Major form of promotion  Very expensive because it requires individuals to make contact with potential customers  Designed to complete the sale once a customer has been attracted to a business by advertising, publicity/public relations, or special events

12/2/ Activities designed to build positive relations with the customers, employees, and the community.  Participation in community programs  Effective PR can help build a positive image for a company, but cannot cover up bad news.

12/2/2015www.brainybetty.com13 Publicity NEWSWORTHY INFORMATION about a company, product, or person placed in the media AT NO CHARGE with the purpose of creating a desired image.

12/2/2015www.brainybetty.com14 Promotional information packages that contain press releases and photographs.  Help create awareness of products or designers’ latest fashions and apparel items  Serve as free advertising for the business if pictures are published by the media

12/2/  Free  Carried by mass media. Mass media are those instruments of communication designed to reach the mass of the people.  Must be newsworthy to earn media space and time  Must be timely, have local interest, and appeal to medium’s audience  Seems more credible to consumers than advertising  Company has little control over content of message or how it is presented to the public  Can have a good or bad result  Helps make styles, manufacturers, retailers, trends, or designers better known to the public

12/2/2015www.brainybetty.com16 A written news story sent as publicity to a newspaper or magazine.  Used to create public awareness of store openings, civic events at store locations, or announce employee promotions  Used to create a positive image and awareness about a company, designer, or product

12/2/ Sales Promotions Sales promotions are the set of marketing activities undertaken to boost sales of the product or service. The purpose of Sales Promotions is to STIMULATE DEALER EFFECTIVENESS or to INDUCE PURCHASES during a specific time period.

12/2/ Example of sales promotions  Coupons, contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates.

12/2/ Coordinating the promotional mix elements  Most businesses rely on more than one form of promotion to achieve promotional goals.  The promotional mix is based on product characteristics and the existing market for the product.  The promotional mix changes over time, just as products and consumers change.

12/2/ Coordinating the promotional mix elements (cont.)  Each promotional activity should be designed to complement the other types of promotion being used by the business.  National advertising should be coordinated with local promotional activities.  Sales staff should be informed of promotional activities taking place.

* Advertising: * Any paid form of non-personal communication * Has an identified sponsor * Used to inform, persuade, and remind consumers about a good or service * Media: * The form of communication * Examples: TV, Radio, Newspaper, Online

* Institutional Promotion: Institutional Promotion: * Designed to sell the reputation of the company or organization. Not to sell a specific product. * Product Promotion: * Designed to sell a specific product or service.

* Endorsement: * A celebrity or athlete is a paid spokesman for a product or company. * Testimonial: * Typically a non-celebrity, that explains the advantages and positive experience they have had with a product or company.

* 1. Publication Media * 2. Broadcast Media * 3. Direct-Mail * 4. Online (Web) Media * 5. Out-of-Home Media * 6. Specialty Media * 7. “Other Promotional” Media

* Publication (Print) Media * Written form of communication * Types: * Newspapers * Magazines * Journals

Newspapers come in many varieties such as National, Regional, City, and Local * Coupon Ad * Sale Ad * Informational Ad

Advantages: Low cost, quick, and easy to produce Visual and Verbal communication Variety of advertisement size and pricing Reaches customers daily Target a specific geographic market. Ex: Charlotte Observer and South Charlotte Weekly

Disadvantages: Wasted circulation. Short lifespan. Discarded shortly after reading. Poorer color and print quality

* Sports * News * Special Interest * Fashion * Entertainment * Travel and Leisure * Educational * Regional * Comic * Home and Garden * Animals * Shopping * Fitness * Health

Disadvantages: * Professional Preparation needed - raising the costs * Lengthy preparation times - information is less timely * Expensive

Advantages: * Wider circulation. * Readers tend to keep magazines for a long time. * High quality color and pictures * Target market based on demographics. Ex: Sports Illustrated for Kids * Target market based on interests. (Psychographic) Ex: Golf Digest

Broadcast Media is any visual or auditory form of communication. Types: - Radio - Television - Satellite Radio

Advantages: * Consumers listen in cars, home and at work * Low costs * Short preparation time * Target specific geographic markets * Target specific demographic markets Ex: Spanish-speaking stations * Target specific psychographic markets Ex: Sports, Country, Top 40

Disadvantages: * Does not provide a visual impact * Message has short lifespan * Commercial Clutter * I-pods, I-pads, E-books, Cell phones... Who is listening to radio?

Advantages: * Consumers are reading less, and watching more. * TV Ad show accurate color and details in HD! * The product is seen in “action.” * National Ads reach an extremely large audience. * Ex: During the Super Bowl * Local and Regional channels allow for target marketing. * Ex: Fox Sports South, Charlotte’s News Channel 14 * Interest specific channels allow for target marketing. * Ex: The Big10 Network, NFL Network, Food Network

Disadvantages: * Very High Costs * Message has short lifespan * Lengthy productions times

* Personalized Letters * Catalogs * Brochures * Coupon Mailers * Company Newsletters * Postcards * Invitation Letters * Awards and Prize Letters * Bill Enclosures * Offers and Sales Direct Mail: Advertising that is distributed directly to the potential consumer through the mail. Types:

Advantages: * Little wasted circulation * Can be very cost effective * Target market can be segmented in many ways * Customer Specific * Personally address the customer * Results are easy to measure Disadvantages: * Can be considered “junk mail” * Increasing cost of postage

Any type of message that reaches the customer outside of their home. Types: * Signs * Billboards * Public Transit * Airplane Banners * Stadium Signage

Advertising messages that appear on the internet. * Banner Ads * Pop-up Ads * Ads * Commercials (Before watching a video online) * Roll-over * Social Media

Advantages: * Repetitive Viewing. * Target specific geographic area. * Exposure 24/7. Disadvantages: * Only a short message. - Due to low exposure time. * Limited segmentation.

Promotional messages on everyday items. - Typically inexpensive. * Wide Variety of forms: * Pens/Pencils * Coffee Mugs * Key Chains * Hats * T-shirts * Bags * Calendars

* Grocery store carts * Hot air balloons

* Reach target market in a friendly, casual manner * Low cost per contact * Market segmentation use is very good * Customization * Message is ignored * Consumers are not focused on your subject matter * May not be your target market consumers * Lack of good method to measure effectiveness

* Social Media * Twitter and Facebook advertising * Advertising on sports uniforms * NBA just approved for season * Commercials before YouTube Video

Source Encoding Message Channel Decoding Receiver FEEDBACK NOISE

BRAND IGNORANCE AWARENESS KNOWLEDGE LIKING PREFERENCE CONVICTION PURCHASE The Objectives of Advertising

Selling is… O Part of the Promotional Mix O Communication between the salesperson and the customer O Consultative selling For example: A salesperson suggesting a wireless network to a customer who travels frequently O Feature-benefit selling - Product Features -Customer Benefits

Advantages of Selling O Information O Flexibility O Feedback O Persuasion O Follow-up

Disadvantages of Selling O Cost per customer O Time O Control of sales people O Lack of Skills

Buying Motives O Rational For example: Purchasing a hybrid car due to increased gas mileage O Emotional For example: Purchasing a Valentine’s gift for a loved one

Types of Customer Decision Making O Extensive For example: An expensive, luxury car O Limited For example: A summer vacation to Disney World O Routine For example: Pizza on a Friday night

Characteristics of a good salesperson O Communication Skills O Emotional Intelligence Skills O Computer and Technical Skills O Positive Attitude O Goal Orientated O Empathy O Honesty O Enthusiasm

Understand preliminary activities associated with selling

Employee training and development O Product knowledge -Training- formal and informal -Research on your own O Sales techniques O Ethical behavior

Summarize the sales process

The approach is… O The first encounter with a potential customer O Service approach O Greeting approach O Merchandise approach O Combination approach

How to determine consumer needs O Determine customer’s reasons for buying O Observing O Listening O Questioning and Engaging

Product presentation time! O What products do you show? O How they will use the product? O Show a medium-priced product first! O Highlight the features and benefits

Product presentation time! O Display and handle the product O Demonstrate the product O Use sales aids O Involve the customer O Hold the customer’s attention

How to handle objections O Objection vs. Excuse O Objection based on: -Need -Product -Source -Price -Time

Methods to handle objections O Substitution O Boomerang O Question O Superior-point O Denial O Demonstration O Third party

Methods for closing the sale O Which O Standing-room only O Direct O Service

Suggestion selling is… O Selling additional goods to enhance the original purchase O Cross selling O Upselling O Special sales opportunities

How to maintain a relationship with the customer O Order processing O Departure O Order fulfillment O Follow-up O Customer service O Keeping a client file O Evaluate sales efforts

What is CRM? O Customer Relationship Management O Implement technology and CRM O Maintain contacts O Maintain relationships O Develop customer loyalty O Implement rewards program

Execute sales transactions

Sales transactions include: O Cash or sales check O Debit card sales O Credit card sales O Layaway sales O On approval sale O Cash-on-delivery (COD) O PayPal

How much do I owe? O Multiply unit price times the quantity purchased. O Add the totals together to determine the subtotal. O Calculate sales tax. O Calculate shipping charges if applicable. O Add the subtotal, tax and shipping charges. ItemQty.PriceExtension Socks2$2.99$5.98 T-shirt1$7.99$7.99 Subtotal:$ Tax $1.05 Shipping $2.00 TOTAL $17.02

How much does the retailer owe? O Debit sales For example: Ce’Mour’s Hair Studio is charged a nominal fee regardless of the amount purchased O Credit sales For example: Paynet Systems’ charges are based on a sliding scale

Prospecting O Preapproach O Prospect (lead) O Endless chain method O Cold canvassing

B2B/Retail Preparation O Preapproach O Straightening/cleaning O Adjusting price tickets O Stock information O Arranging displays