ROAD MAP:

• Integrated marketing communicationsFive promotion tools and the factors that must be considered in shaping the

overall promotion mix.

– Advertising:

The major decisions involved in developing an advertising program.

– Sales promotion: How do sales promotion campaigns are developed

and implemented?– Public relations:

How do companies use public relations to communicate with their publics?– Personal selling:

Role of a company’s salespeople, six major steps and process of sales force management

– Direct marketing:Major forms of direct marketing.

Sales Promotion

• Short-term incentives to encourage the purchase or sales of a product or service.

• To generate immediate sales.• The major forms of sales promotion:

– consumer, business, trade, or sales force promotions.

• Rapid growth in the industry because:– More pressure to increase their current sales– More competition– Declining advertising efficiency– More deal oriented consumers

Sales Promotion Objectives

• Consumer Promotions: increase short-term sales or help build long-term market share.

• Trade Promotions: get retailers to:– carry new items and more inventory– advertise products– give products more shelf space– buy ahead

• Sales Force: getting more sales support.• In general, sales promotion should build

long-term customer relationships.

SampleSample

CouponsCoupons

Cash Refunds“Rebates”

Cash Refunds“Rebates”

Price Packs“Cents-Off Deals”

Price Packs“Cents-Off Deals”

PremiumsPremiums

Advertising Specialties

Advertising Specialties

Offers a trial amount of a productOffers a trial amount of a product

Savings when purchasing specified products

Savings when purchasing specified products

Refund of part of the purchase price by mail

Refund of part of the purchase price by mail

Reduced prices marked on the label or package by producer

Reduced prices marked on the label or package by producer

Goods offered free or low cost as an incentive to buy a product

Goods offered free or low cost as an incentive to buy a product

Articles imprinted with an advertiser’s name given as gifts

Articles imprinted with an advertiser’s name given as gifts

Consumer Sales Promotion Tools

Patronage RewardsPatronage Rewards

Point-of-Purchase Promotions

Point-of-Purchase Promotions

ContestContest

SweepstakesSweepstakes

GamesGames

Cash or other award offered for regular use of a product or serviceCash or other award offered for

regular use of a product or service

Displays or demonstrations at the point of purchase or sale

Displays or demonstrations at the point of purchase or sale

Consumers submit an entry to be judged by a panel

Consumers submit an entry to be judged by a panel

Consumers submit their names for a drawing

Consumers submit their names for a drawing

Consumers receive something each time they buy which may

help them win a prize

Consumers receive something each time they buy which may

help them win a prize

Consumer Sales Promotion Tools

Trade Promotion

Persuade resellers to carry a brand

Give a brand shelf space

Promote brand in advertising

Push brand to customers

Discounts

Allowances

Free Goods

Push Money

Specialty Advertising Items

T o o l s

Business Promotion

Generate business leads

Stimulate purchases

Reward customers

Motivate salespeople

Conventions

Trade shows

Sales contests

O b j e c t i v e s

Decide on the Size of the IncentiveDecide on the Size of the Incentive

Set Conditions for ParticipationSet Conditions for Participation

Evaluate the ProgramEvaluate the Program

Decide How to Promote andDistribute the Promotion Program

Decide How to Promote andDistribute the Promotion Program

Decide on the Length of the ProgramDecide on the Length of the Program

Developing the Sales Promotion Program

Events and Experiences

• $11.14 billion spent on sponsorship in 2004– 69% sports– 10% tours– 7% festivals, fairs– 5% arts– 9% causes

Why Sponsor Events?• To identify with a particular target market or life style• To increase brand awareness• To create or reinforce consumer perceptions of key

brand image associations• To enhance corporate image• To create experiences and evoke feelings• To express commitment to community• To entertain key clients or reward employees• To permit merchandising or promotional

opportunities

Using Sponsored Events

Establish objectives

Choose event opportunities

Design program

Implement and control

Measure effectiveness

Ideal Events

Audience closely matches target market

Event generates media attention

Event is unique with few sponsors

Event lends itself to ancillary activities

Event enhances brand image of sponsor

ROAD MAP:

• Integrated marketing communicationsFive promotion tools and the factors that must be considered in shaping the

overall promotion mix.– Advertising:

The major decisions involved in developing an advertising program.

– Sales promotion: How do sales promotion campaigns are developed and implemented?

– Public relations: How do companies use public relations to communicate with their publics?

– Personal selling:Role of a company’s salespeople, six major steps and process of sales force management

– Direct marketing:Major forms of direct marketing.

Public Relations

• Building good relations with the company’s various publics by obtaining favorable publicity

• Building up a good corporate image

• Handling or heading off unfavorable rumors, stories, and events.

Public Relations Functions

• Press relations or press agency• Product publicity• Public affairs

• Lobbying• Investor relations• Development

Public Relations Tools

• NewsNews

• SpeechesSpeeches

• Special eventsSpecial events

• Buzz marketingBuzz marketing

• Mobile marketing Mobile marketing

• Written materialsWritten materials

• Audiovisual materials• Corporate identity materials• Public service activities• Company Web site

Marketing Public Relations Functions

• Assist in product launches• Assist in repositioning mature products• Build interest in a product category• Influence specific target groups• Defend products• Build corporate image

Major Tools in Marketing PR

• Publications• Events• Sponsorships• News• Speeches• Public Service

Activities• Identity Media

ROAD MAP:

• Integrated marketing communicationsFive promotion tools and the factors that must be considered in shaping the

overall promotion mix.– Advertising:

The major decisions involved in developing an advertising program.

– Sales promotion: How do sales promotion campaigns are developed and implemented?

– Public relations: How do companies use public relations to communicate with their publics?

– Personal selling:Role of a company’s salespeople six major steps and process of sales force

management – Direct marketing:

Major forms of direct marketing.

The Role of the Sales Force• Personal selling is a paid, personal form of promotion.

• Involves two-way personal communication between salespeople and individual customers.

• Salespeople:– Probe customers to learn about problems

• Adjust marketing offers to fit special needs– Negotiate terms of sales– Build long-term personal relationships

Sales Force serves as critical link between company and its customers

They represent the company to the customers

They represent the customers to the company

Goal = Customer Satisfaction and Company Profit

Major Steps in Sales Force Management

Sales Force Structure

Territorial: Salesperson assigned to exclusive area and sells full line of products

Product: Sales force sells only certain product lines

Customer: Sales force organizes along customer or industry lines

Complex: Combination of several types of structures

Recruiting and Selecting Salespeople

• Key talents of salespeople:– Intrinsic motivation

– Disciplined work style

– Ability to close a sale

– Ability to build relationships with customers

Recruiting Salespeople

• Recommendations from Recommendations from current sales forcecurrent sales force

• Employment agenciesEmployment agencies

• Classified adsClassified ads

• Web searches• College students• Recruit from other companies

Sales Force Training Goals

Learn about and identify with the company.

Learn about the company’s products.

Learn customers’ and competitors’ characteristics.

Learn how to make effective presentations.

Learn field procedures and responsibilities.

Compensating Salespeople

• Fixed amount-Salary • Variable amount-Commissions or bonuses• Expenses: Repays for job-related expenditures• Fringe benefits: Vacations, sick leave, pension, etc.

Supervising Salespeople

• Directing SalespeopleDirecting Salespeople– Help them identify customers and set call norms.Help them identify customers and set call norms.– Specify time to be spent prospectingSpecify time to be spent prospecting

• Motivating SalespeopleMotivating Salespeople– Organizational climateOrganizational climate– Sales quotasSales quotas– Positive incentivesPositive incentives

Major Steps in Effective Selling

Identifying qualified potential

customers

Identifying qualified potential

customers

Learning about a prospective

customer before a sales call

Learning about a prospective

customer before a sales call

ROAD MAP:

• Integrated marketing communicationsFive promotion tools and the factors that must be considered in shaping the

overall promotion mix.– Advertising:

The major decisions involved in developing an advertising program.

– Sales promotion: How do sales promotion campaigns are developed and implemented?

– Public relations: How do companies use public relations to communicate with their publics?

– Personal selling:Role of a company’s salespeople, six major steps and process of sales force management

– Direct marketing:Major forms of direct marketing.

Direct Marketing

• Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

The New Direct-Marketing Model

• As a supplemental medium for some firms.As a supplemental medium for some firms.

• As a new and complete model for doing business for many As a new and complete model for doing business for many firms.firms.

• As the As the onlyonly approach for some firms. approach for some firms.

• As the new marketing model of the next millennium.As the new marketing model of the next millennium.

Benefits of Direct Marketing

• Benefits to Buyers:– Convenient

– Easy to use

– Private

– Ready access to products and information

– Immediate and interactive

• Benefits to Sellers:Benefits to Sellers:– Powerful tool for building customer relationshipsPowerful tool for building customer relationships– Can target small groups or individualsCan target small groups or individuals– Can tailor offers to individual needsCan tailor offers to individual needs– Can be timed to reach prospects at just the right momentCan be timed to reach prospects at just the right moment– Gives access to buyers they could not reach through other Gives access to buyers they could not reach through other

channelschannels– Offers a low-cost, efficient way to reach marketsOffers a low-cost, efficient way to reach markets

Forms of Direct Marketing

Kiosk Marketing

• Information and ordering machines generally found in stores, airports, and other locations (versus vending machines which dispense actual products).

Elements of the Offer Strategy

• Product• Offer• Medium• Distribution method• Creative strategy

Components of the Mailing

• Outside envelope

• Sales letter

• Circular

• Reply form

• Reply envelope

Types of Telemarketing

• Telesales

• Telecoverage

• Teleprospecting

• Customer service and technical support

Other Media for Direct Response

Television

• Direct Response Advertising

• At-home shopping channels

• Videotext

Kiosks

Designing an Attractive Web Site

• Context• Content

• Community• Customization

• Communication• Connection• Commerce

Ease of Use and Attractiveness

• Ease of Use– Downloads quickly– First page is easy to understand– Easy to navigate

• Attractiveness– Clean looking– Not overly crammed with content– Readable fonts– Good use of color and sound

Increasing Visits and Site Stickiness

• Deep information with links

• Changing news of interest

• Changing offers • Contests and

sweepstakes• Humor and jokes• Games

Online Ads

• Banner ads• Microsites• Sponsorships• Interstitials• Search-related ads• Content-targeted advertisi

ng• Alliances• Affiliate programs

iTunes Affiliate Program

e-Marketing Guidelines

• Give the customer a reason to respond

• Personalize the content of your emails

• Offer something the customer could not get via direct mail

• Make it easy for customers to unsubscribe

Integrated Direct-Marketing

• Carefully coordinated multiple-media, multiple-stage campaigns.

Public Policy and Ethical Issues in Direct Marketing

Irritation to Consumers

Taking unfair advantage of impulsive or less sophisticated buyers

Targeting TV-addicted shoppers

Deception, Fraud

Invasion of Privacy

Rest Stop: Reviewing the Concepts

1. Discuss the process and advantages of integrated marketing communications.

2. Define the five promotion tools and discuss factors that must be considered in shaping the overall promotion mix.

3. Describe and discuss the major decisions involved in developing an advertising program.

4. Explain how sales promotion campaigns are developed and implemented.

5. Explain how companies use public relations to communicate with their publics.

6. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.

7. Identify and explain the six major sales force management steps.8. Discuss the personal selling process, distinguishing between

transaction-oriented marketing and relationship marketing.9. Define direct marketing and discuss its benefits to customers and

companies.10. Identify and discuss the major forms of direct marketing.