Presentation is loading. Please wait.

Presentation is loading. Please wait.

PROMOTION By: DR. SHIRLEY C. EJE Professor.

Similar presentations


Presentation on theme: "PROMOTION By: DR. SHIRLEY C. EJE Professor."— Presentation transcript:

1 PROMOTION By: DR. SHIRLEY C. EJE Professor

2 Promotion the element in an organization’s marketing mix that serves to inform, persuade, and reminds the market of a product and/or organization selling it, in hopes of influencing the recipients feelings, beliefs, or behavior.

3 The 3 Promotion Objectives

4 Relationship between Advertising and the Product Life Cycle
Not mentioned in your textbook Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College

5 Promotion Objectives Informing
people have to know about it, in order to buy it Advertising that seeks to develop demand through presenting factual information on the attributes of a product or service. Tends to be used in promoting NEW products. Use in the Introductory Stage of PLC

6 Promotion Objectives Persuading
when competition offers similar product, you have to “persuade” them to try yours Advertising that emphasizes using words and/or images to try to create an image for a product and to influence attitudes about it. Used by Coke and Pepsi re: lifestyle ads. Used after the Introductory Stage of the PLC

7 Promotion Objectives Reminding
when new competition comes along, you have to “remind” customers of your greater experience, advantages etc. Advertising whose goal is to reinforce previous promotional activity by keeping the product’s or service’s name in front of the public. Used in the Maturity Period and the Decline Stage of the PLC.

8 4 promotion jobs Attention Interest Desire Action

9 P U S H P U L L Pushing through the promotion channel
Producer personal selling wholesaler retailer customer Promotion techniques used run ads in trade magazines to make wholesalers aware of the product provide incentives to retailers to carry the item “… free case of drinks with each 2 cases it buys…” page 466 run contests for salespeople to win prizes for selling the product

10 P U S H P U L L Pulling through the promotion channel
Producer personal selling wholesaler retailer customer Promotion techniques used run TV commercials so customers directly learn about the product - then they go to the store and ask for it, or call around to find out where it is sold give free samples to potential customers

11 P U S H P U L L Pulling through the promotion channel
Producer personal selling wholesaler retailer customer Sometimes you do “pulling” when the Middlemen cannot be pushed, that is they already have a competitors product, so the way to get Middlemen to WANT to carry the product, is to have customers ask for it.

12 Promotional methods: Personal Selling Advertising Sales Promotion Public Relation Publicity

13 Personal Selling direct communication between seller and buyer face2face contact Usually used to sell industrial goods and services Also used to sell some expensive consumer items, eg. Cars, computer systems

14 Advertising communicating with large numbers of potential customers “non”-personal selling used when the target market is large and dispersed any paid form of nonpersonal communication eg. Techniques include billboard ads and TV commercials Advertising is a form of Mass Selling

15 Sales Promotion a demand-stimulating activity designed to supplement advertising and facilitate personal selling. it is paid by a sponsor involves an incentive to encourage a purchase Example: contests, trade shows, in-store displays, rebates, samples, premiums, discounts and coupons.

16 Public Relation it encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and opinions toward an organization and its products. this includes newsletter, annual reports, lobbying, and sponsorship of charitable or civic events.

17 Publicity The generation of awareness about a product beyond regular advertising methods. Usually less costly than advertising because sometimes the message is spread for free by a newspaper article or TV story.

18 Publicity Examples of Publicity
famous person photographed using your product your product mentioned in National News in a positive way your product featured in a movie TV commentary about aspects of your product trade magazines carrying a story eg. Road and Track doing a feature on the new Landrover

19 Publicity Publicity can be negative
eg. If a famous movie star gets electrocuted using your product, this can cause people to NOT want to buy it - this would be a major problems eg. If your product is sabotaged - this could include tampering with medical products ie. Tylenol eg. If there are negative rumours about the ingredients in your product eg. If there are negative ingredients about the moral aspects of your company

20 Promotion People Sales Managers Advertising Managers
Sales Promotion Managers

21 Promotion People Sales Managers
Are concerned with managing personal selling In small companies this person also does the advertising and sales promotion

22 Promotion People Advertising Managers
They manage the mass selling activities They chose the company to make the commercials Pick the billboard signs etc. If the company is big enough they hire an outside agency They may also do publicity as well

23 Promotion People Sales Promotion Managers
They manage the Sales Promotion activities They decide about in-store coupons, prizes, contests etc. They spend a lot of time visiting the retail outlets where the product is sold

24 D i r e c t M a r k e t i n g Potential Mail Recipients
Once your name is on a list for a newspaper subscription, your name and address can be “sold” to another company who will mail you information to try and convince you to buy their product. Buying and selling lists (databases) of such names is big business.

25 D i r e c t M a r k e t i n g Comparison of Direct Marketing and General Advertising Direct Marketing General Advertising Selling to individuals. Customers are Mass selling. Buyers identified as broad often identifiable by name, address, and groups sharing common demographic and purchase behaviour. psychographic characteristics. Products have added value or service. Product benefits do not always include Distribution is important product benefit. convenient distribution channels. The medium is the marketplace. Retail outlet is the marketplace. Marketer controls product until delivery. Marketer may lose control as product enters distribution channel. Advertising used to motivate an Advertising used for cumulative effect immediate order or inquiry. over time to build image, awareness, loyalty, benefit recall. Purchase action deferred. Repetition used within ad. Repetition used over time. Consumers feel high perceived risk – Consumers feel less risk – have direct product brought unseen. Recourse is contact with the product and direct distant. recourse.

26 Adoption Process Innovators
Early Adopters - sales people concentrate their efforts here Early majority Late majority Laggards, or nonadopters

27 Setting the promotion budget
Most common method is based on using past percentages - that is to say,,,, If you sold $ 1,000,000 and you spent 20% on advertising, which = $200,000 then, if you spend $400,000 you should sell $2 million!

28 Setting the promotion budget
Other methods - used in real world Matching what competition spends Based on what is required to get number of customers that will meet corporate objectives - called the Task Method - sometimes stated as a % of sales

29 The Evolution of Personal Selling
Personal selling: interpersonal influence process involving a seller’s promotional presentation conducted on a person-to- person basis with the buyer “A salesman is someone who sells goods that won’t come back to customers who will.” (Anonymous)

30 Has been a standard business activity for thousands of years
Early peddlers sold goods they manufactured or imported viewed selling as a secondary activity In 18th century America, peddlers sold directly to farmers and settlers in the West In the 19th century, drummers sold to both consumers and intermediaries sometimes using questionable practices and built negative stereotypes which persist today

31 Today’s salesperson is usually a highly- trained professional
Sales professionals take a customer- oriented approach employing truthful, nonmanipulative tactics in order to satisfy the long-term needs of both the customer and the selling firm Today’s professional salespeople are problem solvers who seek to develop long-term relationships with customers

32 Factor affecting the importance of personal selling in the promotional mix
Variable Conditions That Favor Personal Selling Conditions That Favor Advertising Consumer Product Geographically concentrated Relatively low numbers Expensive Technically complex Custom made Special handling requirements Transactions frequently involve trade-ins Geographically dispersed Relatively high numbers Inexpensive Simple to understand Standardized No special handling requirements Transactions seldom involve trade-ins Price Relatively high Relatively low Channels Relatively short Relatively long

33 The Four Sales Channels
Personal selling occurs through several types of communication channels including these four: Over-the-Counter Field Selling Telemarketing Inside Selling

34 Over-the-Counter: personal selling conducted in retail and some wholesale locations in which customers come to the seller’ place of business Field selling: sales presentations made at prospective customers’ homes or businesses on a face-to-face basis

35 Telemarketing: promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customers who initiate calls to obtain information and place orders Inside Selling: performing the functions of field selling but avoiding travel-related expenses by relying on phone, mail, and electronic commerce to provide sales and product service for customers on a continuing basis

36 Integrating the Various Selling Channels

37 Trends in Personal Selling
Relationship selling: regular contacts over an extended period to establish a sustained seller-buyer relationship Consultative selling: meeting customer needs by listing to them, understanding -- and caring about -- their problems, paying attention to details, and following through after the sale Cross-selling

38 Buyers prefer to do business with salespeople who:
Orchestrate events and bring to bear whatever resources are necessary to satisfy the customer Provide counseling to the customer based on in-depth knowledge of the product, the market, and the customer’s needs Solve problems extremely proficiently to ensure satisfactory customer service over extended time periods Demonstrate high ethical standards and communicate honestly at all times Willingly advocate the customer’s cause within the selling organization Create imaginative arrangements to meet buyers’ needs Arrive well-prepared for sales calls

39 Team Selling: combination of salespeople with specialists from other functional areas to promote a product Virtual sales team Sales Force Automation (SFA): applications of computer and other technologies to make the sales function more efficient and competitive Benefits include improved effectiveness due to improved access to information, lower costs, improved product launches, and attentive customer service

40 Sales Tasks Three basic sales tasks can be identified:
Order Processing Creative Selling Missionary sales

41 Order Processing: selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders Creative Selling: personal selling involving situations in which a considerable degree of analytical decision making on the buyer’s part results in the need for skillful proposals of solutions for the customer’s needs Missionary sales: indirect type of selling in which specialized salespeople promote the firm’s goodwill among indirect customers, often by assisting customers in product use

42 The Sales Process The AIDA Concept and the Personal Selling Process

43 Prospecting: personal-selling function of identifying potential customers
Qualifying: determining that a prospect has the needs, income, and purchase authority necessary for being a potential customer

44 Approach: salesperson’s initial contact with a prospective customer
Precall Planning: use of information collected during the prospecting and qualifying stages of the sales process and during previous contacts with the prospect to tailor the approach and presentation to match the customer’s needs

45 Presentation: describing a product’s major features and relating them to a customer’s problems or needs Demonstration allows the customer to experience a good or service

46 Handling Objections: expressions of sales resistance by the prospect
Example: A customer’s “I don't like the color” is probably their way of asking what other colors are available Objections are reasonable and professional salespeople are prepared to handle them appropriately

47 Closing: stages of personal selling where the salesperson asks the customer to make a purchase decision Follow-up: postsales activities that often determine whether an individual who has made a recent purchase will become a repeat customer Helps build mutually beneficial long-term relationships

48 Managing the Sales Effort
Sales management: Activities of planning, organizing, staffing, motivating compensating, and evaluating and controlling a sales force to ensure its effectiveness

49 Recruitment and Selection
One of the sales manager’s greatest challenges Careful selection is important for two reasons: Substantial costs involved Mistakes are costly and detrimental to customer relations and sales-force performance

50 Training Principal methods used are on-the-job training, individual instruction, in-house classes, and external seminars Popular training techniques include instructional videotapes/DVDs, lectures, roll-playing exercises, slides, films, and interactive computer programs

51 Organization General organizational alignment may be based on geography, products, types of customers, or some combination of these factors National accounts organization: organizational arrangement that assigns sales teams to a firm’s largest accounts

52 Basic approaches to organizing the sales force

53 Supervision Span of control: the number of sales representatives who report to the first level of sales management Optimal span of control is affected by such factors as complexity work activities being performed, ability of the individual sales manager, degree of interdependence among individual salespersons, and the extent of training each salesperson receives

54 Motivation Efforts to motivate salespeople usually take the form of the briefings, information sharing, and both psychological and financial encouragement Psychological encouragement includes appeals to emotional needs, recognition, and peer acceptance Financial encouragement includes monetary rewards and fringe benefits such as club memberships and sales contest awards Expectancy theory

55 Compensation Commission: incentive compensation directly related to the sales or profits achieved by a salesperson Salary: fixed compensation payments made periodically to an employee

56 Evaluation and Control
Sales quotas: level of expected sales for territory, product, customer, or salesperson against which actual results are compared Other measures such as customer satisfaction, profit contribution, share of product-category sales, and customer retention Another way to categorize a salesperson’s strong points: Task, or technical ability Process, or sequence of work flow Goal, or end results (output) of sales performance

57 Ethical Issues in Sales
Promotional activities, including personal sales, raise many ethical questions Sales managers can foster a corporate culture for an ethical sales environment: Employees understand what is expected of them Open communication exists between employees and managers Management leads by example Employees are proud of and loyal to their organization

58 Sales Promotion Marketing activities other than personal selling, advertising, and publicity that stimulate consumer purchasing and dealer effectiveness; includes displays, trade shows and expositions, demonstrations and various non- recurrent selling efforts Consumer-Oriented Promotions Trade-Oriented Promotions

59 Consumer-Oriented Promotions
Coupons and Refunds Coupons offer discounts on the purchase price. Nearly $5 billion redeemed annually Free-standing inserts (FSIs) in Sunday newspapers account for about 75 percent of all coupon Refunds offer cash back to consumers with proof of purchasing one or more products

60 Samples, Bonus Packs, and Premiums
Sampling refers to the free distribution of a product in an attempt to obtain future sales. “Try it, you'll like it.” A bonus pack is a specially packaged item that gives the purchaser a larger quantity at the regular price. Premiums are items given free or at a reduced cost with the purchases of other products

61 Contests and Sweepstakes
Contests require entrants to solve problems or write essays -- they may also require proofs of purchase Sweepstakes select winners by chance -- no product purchase is necessary

62 Specialty Advertising
Sales promotion technique that places the advertiser's name, address, and advertising message on useful articles that are then distributed to target markets More than $8 billion worth of specialty advertising items are given out annually

63 Trade-Oriented Promotions Sales promotion that appeals to marketing intermediaries rather than to consumers Trade allowances: deals offered to wholesalers and retailers for purchasing or promoting specific products Point-of-purchase (POP) advertising: a display or other promotion located near the site of the actual buying decision

64 Trade shows: vendors’ displays and the demonstrations at sites often organized by industry trade associations, perhaps as part of these association’s annual meetings or conventions. Dealer incentives, contest, and training programs are run by the manufacturers to induce retailers and their salespeople to increase sales and to promote product Push money is an incentive that gives retail salespeople cash rewards for every unit of a product they sell

65 Measuring Sales Promotion Effectiveness
Since many sales promotions result in direct consumer responses, marketers can relatively easily track their effectiveness As with other methods, marketers must weigh the cost against the benefits

66 Ethics in Sales Promotion
Sales promotions provide opportunities for unscrupulous companies to take advantage of consumers Trade allowances, particularly slotting allowances, have been criticized for years as a form of bribery

67 ACTIVITIES: Assume you are marketing a new perfume scent for men and women. Briefly describe the roles you would assign to advertising, personal selling, sales promotion and publicity in your promotional campaign. A promotional campaign is a coordinated series of promotional efforts built around a single theme and designed to reach a predetermined goal. For recruiting new student, describe the promotional tools that you will used.

68 THE END


Download ppt "PROMOTION By: DR. SHIRLEY C. EJE Professor."

Similar presentations


Ads by Google