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PowerPoint Presentation by Charlie Cook
The University of West Alabama
Copyright 2006 Thomson Business & Professional Publishing.
All rights reserved.
Part 4 Focusing on the Customer:
Marketing Growth Strategies
PromotionalPlanning
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Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 164Exhibit 16-1
A PersonalCommunicationChannel
Parents XYZ Company
"We love you" "Buy my product"
E-mailmessage
Personal visitto campus
Flowers and a "carepackage" sent
Daughterat college
Newspaperadvertisement
Personal sales call
Business gift
Customers
Source
Message
ChannelOptions
Receiver
(a) (b)
A Small BusinessCommunication
Channel
Similarity of Personal and
Small Business
Communication Processes
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Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 165
Promotional Communications
Promotional MixA blend of nonpersonal, personal, and special forms
for communication techniques aimed at a target
market
Makeup of the mix is determined by:
Geographical nature of target market
Size of promotional budget
Products characteristics
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Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 166
Determining the Promotional Budget
How much should a small business spend onpromotion?
Allocating a percentage of sales
Deciding how much can be spared
Spending as much as the competition
Determining what it takes to do the job
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Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 169
Personal Selling in the Small Firm
Personal SellingA sales presentation (promotion) delivered in a one-
on-one manner
Requires:
Product knowledge
Well-prepared salespresentation
Ability to build good will
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The Sales Presentation: Prospecting
ProspectingA systematic process of continually looking for new
customers
Prospecting Techniques
Personal referrals Salesperson initiates customer contact through referral by
another party known to the customer
Impersonal referrals
Information on potential newcustomers developed from publicrecords and published sources
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The Sales Presentation: Prospecting
Prospecting Techniques (contd.)Marketer-initiated contacts
Market surveys are used to identify prospects.
Customer-initiated contacts
Potential customers are identifiedthrough their contacts withthe firm.
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Customer Goodwill and
Relationship Selling
Relationship Selling
Building customer goodwill for future sales to satisfied
customers through:
Maintaining a good personal appearance
Having a pleasant personality
Using professional etiquette in all customer contacts
Understanding the customers point of view
Maintaining high ethical standards in the customer relationship
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Advertising Practices for Small Firms
AdvertisingThe impersonal presentation of a business idea
through mass media
Advertising Objectives
To sell by informing, persuading, and reminding
To serve as a complement to product quality and
efficient service
To properly reflect changes in customer needs and
preferences
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Types of Advertising
Product AdvertisingThe presentation of a business idea designed to make
potential customers aware of a specific product or
service and create a desire for it
Institutional AdvertisingThe presentation of information about a particular firm,
designed to enhance the firms image
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Advantages and Disadvantages of Traditional Advertising Media
Medium Advantages Disadvantages
Newspapers Geographic selectivity and flexibility;short-term commitments; short leadtime; immediacy; year-roundreadership
Little demographic selectivity;limited color capabilities; low pass-along rate; may be expensive
Magazines Good reproduction; demographic andregional selectivity; relatively longlife; high pass-along rate
Long-term commitments; slowaudience buildup; long lead time
Radio Low cost; immediacy; highly portable; short-term commitments;entertainment carryover
No visual treatment; short messagelife; commercial clutter
TelevisionWide, diverse audience; creativeopportunities for demonstration;immediacy; entertainment carry-over
Short message life; high campaigncost; long-term commitments; longlead times; commercial clutter
Outdoor media Repetition; moderate cost; flexibility;geographic selectivity
Short message; lack of demo-graphic selectivity; distracting noiselevels
Source: Charles W. Lamb, Jr., Joseph F. Hair, Jr., and Carl McDaniel, Marketing(Cincinnati: South-Western, 2004), p. 505. Exhibit 16.3
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Web Advertising
Basic Web PromotionsBanner ads
Advertisements that appear across a Web page, often asmoving rectangular strips
Pop-up ads Advertisements that burst openon computer screens
E-mail promotion
Advertising delivered by means
of electronic mail Spam: unsolicited e-mail
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Sales Promotional Tools
Sales PromotionAn inclusive term for any promotional techniques that
are neither personal selling or advertising
Used in combination with personal selling and advertising
SpecialtiesTangible and enduring functional items of worth
distributed personally to recipients that serve as
reminders of the firm
Pens, key chains, magnets, and clothing imprinted with thename, logo, or slogan of the firm
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Sales Promotion Tools (contd.)
Trade Show ExhibitsProvide hands-on experience with products
Are less costly than personal selling
Making Trade Show Exhibits Effective Check out the trade shows history.
Prepare a professional-looking display.
Have a sufficient quantity of literature on hand.
Make sure you have a good product.
Do pre-show promotion. Have a giveaway or gimmick.
Train booth personnel.
Follow up!
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Sales Promotion Tools (contd.)
PublicityInformation about a firm and its products or services
that appears as a news item, usually free of charge
Provides visibility for the firm
Requires regular contacts withthe news media
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Sales Promotion Tools (contd.)
When to Use Sales PromotionFor manufacturers
To stimulate channel membersretailers and wholesalerstomarket a firms products
For wholesalers
To induce retailers to buy inventories earlier than theynormally would
For retailers
To persuade customers to make a purchase
Strategic Alliances and Sales Promotion
Joining with another firm to promote products by
sharing marketing resources and customers