Lecture 26

ChapterChapter 1313

PromotingPromotingProductsProducts

Chapter OutlineChapter Outline

Importance Of PromotionImportance Of PromotionAdvertising PromotionsAdvertising PromotionsPersonal SellingPersonal SellingSales PromotionsSales PromotionsPublicity & Public RelationsPublicity & Public RelationsPromotional Practices In Small Promotional Practices In Small

BusinessBusinessInternational Promotional StrategiesInternational Promotional Strategies

PromotionPromotion

Part Of Marketing Mix Concerned Part Of Marketing Mix Concerned

With Most Effective Techniques With Most Effective Techniques

for Selling Product.for Selling Product.

Information &Information &Exchange ValuesExchange Values

• Notify Potential CustomersNotify Potential Customers• Educate Potential CustomersEducate Potential Customers• Persuade Customers to Like ProductPersuade Customers to Like Product• Persuade Customers To BuyPersuade Customers To Buy• Create Exchange That Satisfies All PartiesCreate Exchange That Satisfies All Parties

Promotional ObjectivesPromotional Objectives

1)1) Communicate InformationCommunicate Information

2)2) Position ProductsPosition Products

3)3) Add ValueAdd Value1)1)Communicate value added benefitsCommunicate value added benefits

4)4) Control Sales Volume Control Sales Volume

Communicate InformationCommunicate Information

• Advise Customer Product ExistsAdvise Customer Product Exists

• Educate Customer About Product Educate Customer About Product Features Features

Positioning ProductPositioning Product

• How Product Is Positioned In Customer’s How Product Is Positioned In Customer’s Mind Compared to CompetitionMind Compared to Competition

• IdentifyIdentify– Target SegmentsTarget Segments– CompetitorsCompetitors

Value-Adding BenefitsValue-Adding Benefits

• WarrantiesWarranties

• Repair ContractsRepair Contracts

• After-Purchase ServiceAfter-Purchase Service

ControllingControllingSales VolumeSales Volume

• Increase Promotion During Slow PeriodsIncrease Promotion During Slow Periods

• A Measure Promotional Campaign Allows A Measure Promotional Campaign Allows For Controlled Growth So Promises Do For Controlled Growth So Promises Do Not Exceed Ability To DeliverNot Exceed Ability To Deliver

Promotional StrategiesPromotional Strategies

• PullPull– Appeal Directly To Consumer To Create Appeal Directly To Consumer To Create

DemandDemand

• PushPush– Encourage Wholesalers & Retailers To Encourage Wholesalers & Retailers To

Market To ConsumersMarket To Consumers

Push vs. PullPush vs. Pull

PushPushProductProduct

PullPull

ProductProduct

Promotional MixPromotional Mix

• AdvertisingAdvertising

• Personal SellingPersonal Selling

• Sales PromotionSales Promotion

• Publicity & Public RelationsPublicity & Public Relations

Promotion &Promotion &The Buying DecisionThe Buying Decision

AdvertisingAdvertising

Promotional Tool Consisting Of Paid, Promotional Tool Consisting Of Paid, Non-Personal Communication Used Non-Personal Communication Used By An Identified Sponsor To Inform By An Identified Sponsor To Inform An Audience About A Product. An Audience About A Product.

Advertising StrategiesAdvertising Strategies

• Depends upon product lifecycleDepends upon product lifecycle• PersuasivePersuasive

– Stress QualityStress Quality– Influence consumers to buy a company’s product rather than the Influence consumers to buy a company’s product rather than the

rivalsrivals

• ComparativeComparative– Maturity StageMaturity Stage– Two ore more products are directly comparedTwo ore more products are directly compared– Goal is to take sales from competitionGoal is to take sales from competition

• ReminderReminder– Decline StageDecline Stage– Keeps products names in consumer mindsKeeps products names in consumer minds

Advertising MediaAdvertising Media

• TelevisionTelevision

• Direct MailDirect Mail

• NewspapersNewspapers

• MagazinesMagazines

• RadioRadio

• OutdoorOutdoor

• InternetInternet

• Data Mining & Data Mining & WarehousingWarehousing

• VirtualVirtual

• Media MixMedia Mix

Media Mix By IndustryMedia Mix By Industry

Advertising CampaignAdvertising Campaign

ID TargetID Target

Set BudgetSet Budget

Define Define ObjectivesObjectives

Create Create MessageMessage

ID MediaID Media

EvaluateEvaluate

Personal SellingPersonal Selling

• Personal SellingPersonal Selling

• TelemarketingTelemarketing

• SituationsSituations– RetailRetail– IndustrialIndustrial

Sales Force ManagementSales Force Management

• Top Management- Sets GoalsTop Management- Sets Goals• Salespeople- Set Realistic ObjectivesSalespeople- Set Realistic Objectives• Organize Sales Force To Meet GoalsOrganize Sales Force To Meet Goals• Implement/Evaluate Success Of Overall Implement/Evaluate Success Of Overall

Sales PlanSales Plan

Personal Selling TasksPersonal Selling Tasks

• Order ProcessingOrder Processing– Receives an order and sees to its handling Receives an order and sees to its handling

and deliveryand delivery

• Creative SellingCreative Selling

• Missionary SellingMissionary Selling– Promote company and the product rather than Promote company and the product rather than

make salemake sale

Personal Selling ProcessPersonal Selling Process

Prospect Prospect & Qualify& Qualify

ApproachApproach

PresentPresent

Handle Handle ObjectionsObjections

ClosingClosing

Follow-UpFollow-Up

Sales PromotionSales Promotion

• Important because enhance Important because enhance recognition, increase sales and recognition, increase sales and motivates the customer to trymotivates the customer to try– CouponsCoupons– Point-Of-PurchasePoint-Of-Purchase– Purchasing IncentivesPurchasing Incentives– Trade ShowsTrade Shows– ContestsContests

Sales PromotionSales Promotion

– CouponsCoupons• Certificates entitling bearers to savings off regular Certificates entitling bearers to savings off regular

pricesprices– Point-Of-PurchasePoint-Of-Purchase

• Located at the end of aisles or at checkout countersLocated at the end of aisles or at checkout counters• Easier to find product and eliminate competitionEasier to find product and eliminate competition

– Purchasing IncentivesPurchasing Incentives• Free samples or premium (free or reduced price items)Free samples or premium (free or reduced price items)

– Trade ShowsTrade Shows• Companies have booth in which they display productsCompanies have booth in which they display products

– ContestsContests

Publicity & PRPublicity & PR

• PublicityPublicity– FreeFree– Little ControlLittle Control

• Public RelationsPublic Relations– Company-InfluencedCompany-Influenced– Create GoodwillCreate Goodwill

Small Business AdvertisingSmall Business Advertising

• InternetInternet

• Non-Prime TimeNon-Prime Time

• Yellow PagesYellow Pages

• Direct MailDirect Mail

• Targeted Magazine AdsTargeted Magazine Ads

• Sales ForceSales Force

• Sales AgenciesSales Agencies

• TelemarketingTelemarketing

Small BusinessSmall BusinessPersonal SellingPersonal Selling

Global AdvertisingGlobal Advertising

• Product VariationsProduct Variations

• Language DifferencesLanguage Differences

• Cultural ReceptivenessCultural Receptiveness

• Image DifferencesImage Differences