Download Principles of Marketing

Principles of
Marketing
Lecture-39
Summary
of
Lecture-38
Integrated Direct
Marketing
Public Relations
Publicity
Public information
about a company, good,
or service appearing in
the mass media as a
news item.
Today’s Topics
Review
th
4
P (Promotion)
Marketing
Communications
Simple Marketing
System
Communication
Product/Service
Producer/Seller
Money
Feedback
Consumer
Promotion and
Its Goals
Promotion
 Marketing
activities used to
communicate positive,
persuasive information about an
organization, its products and its
activities to a target audience
 Purpose:
to directly or indirectly
create sales, influence
consumers.
To whom does
promotion
communicate?
Consumers/potential
consumers
Interest groups/regulatory
agencies
Current/potential investors
Society in general
Company employees
Promotion Mix
 Advertising
 Personal
 Sales
Selling
Promotion
 Public
Relations
The Marketing
Communications
Mix
Advertising
Any Paid Form of Nonpersonal Presentation by an
Identified Sponsor.
Personal Selling
Personal Presentations by a
Firm’s Sales Force.
Sales Promotion
Short-term Incentives to
Encourage Sales.
Public Relations
Building Good Relations with
Various Publics by Obtaining
Favorable Unpaid Publicity.
Direct Marketing
Direct Communications With
Individuals to Obtain an
Immediate Response.
Setting the Total
Promotion Budget
Affordable
Method
CompetitiveParity
Method
Percentageof-Sales
Method
Objectiveand-Task
Method
AIDA Model
Attention
Interest
Desire
Action
Setting the
Promotion Mix
Advertising
A paid form of non-personal
communication about an
organization and/or its
products to a target
audience through a mass
medium.
Personal selling
The direct presentation of a
product to a prospective
customer by a
representative of the
selling organization.
Sales promotion
Demand-stimulating activity
designed to supplement
advertising and facilitate
personal selling.
Public relations
A planned communication effort
by an organization to contribute
to generally favorable attitudes
and opinions toward an
organization and its products.
Direct Marketing
Direct connections with carefully
targeted individual consumers
to obtain an immediate
response and cultivate lasting
customer relationship
Advertising
Any paid form of nonpersonal presentation
by an identified
sponsor.
The Five M’s of
Advertising
Message
Money
Message generation
Factors to
consider:
Message evaluation
and selection
Mission
Stage in PLC
Message execution
Sales
goals
Market share
and consumer base
review
Advertising
objectives
Competition
and clutter
Advertising
frequency
Product
substitutability
MeasureSocial-responsibility ment
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
Communi
cation
impact
Sales
impact
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
Advertising
Objective
Informative Advertising
Persuasive Advertising
Reminding Advertising
Choose the Media
Television
Yellow Pages
Newspaper
Magazine
Major
Kinds of
Media
Direct Mail
Outdoor
Radio
Internet
Evaluating Advertising
Effectiveness
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
Sales Promotion
Sales Promotion is a Mass
Communication Technique
That Offers Short-Term
Incentives to Encourage
Purchase or Sales of a
Product or Service.
Offers Reasons to Buy Now.
Major Consumer Sales
Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing
specified products
Cash Refunds
Refund of part of the
purchase price
Price Packs
Reduced prices marked
on the label or package
Premiums
Goods offered free or low
cost as an incentive to buy a
product
Advertising
Specialties
Articles imprinted with an
advertiser’s name given as
gifts
Consumer Promotions
• Samples
• Coupons
• Premiums
• Contests and Sweepstakes
Trade Promotions
• Trade allowances
• Dealer contest
• Co-operative advertising
• Trade shows
• Training etc.
Limitations of Sales
Promotion
Cannot Reverse Declining
Sales Trend
Cannot Overcome Inferior
Product
May Encourage Competitive
Retaliation
May Hurt Profit
Personal Selling
Personal selling
The direct presentation of a
product to a prospective
customer by a
representative of the
selling organization.
Basic Sales Tasks
The two types of
personal selling
 The
customers come to the
salespeople.
– Mostly involves retail-store selling.
– Most salespeople fall into this category.
 The
salespeople go to the
customers.
– Usually represent producers or
wholesaling middlemen and sell to
business users.
– Some outside selling is relying more on
telemarketing.
Sales Force
Management
Steps in the
Selling Process
Step 1. Prospecting and
Qualifying
Step 2. Preapproach
Step 3. Approach
Step 4. Presentation/
Demonstration
Identifying and Screening For
Qualified Potential
Customers.
Learning As Much As
Possible About a Prospective
Customer Before Making a
Sales Call.
Knowing How to Meet the
Buyer to Get the Relationship
Off to a Good Start.
Telling the Product “Story” to
the Buyer, and Showing the
Product Benefits.
Step 5. Handling Objections
Seeking Out, Clarifying,
and Overcoming
Customer Objections to
Buying.
Step 6. Closing
Asking the Customer
for the Order.
Step 7. Follow-Up
Following Up After the
Sale to Ensure
Customer Satisfaction
and Repeat Business.
Managing the
Sales force
Designing Sales force Strategy and Structure
Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople
Direct Marketing
Direct communications
with carefully targeted
individual consumers to
obtain an immediate
response.
Direct Marketing
 Fastest growing
promotional mix element
 Easy to narrowly target a
segment
 Measure outcomes
easier
 Databases are extremely
important
Factors Driving
Direct Marketing Growth
Predictive
Modeling
Convenience
Immediate
Sales
Shrinking
Media Audiences
Customized
Products
Fragmented
Markets
Price
Sensitivity
Forms of Direct
Marketing
Face-to-Face
Selling
Online
Marketing
Telemarketing
Kiosk
Marketing
Direct
Mail
Direct-Response
TV Marketing
Catalog
Customer Databases
Direct
Marketing is...
With a
Focus
on...
Share of
Customer
Customer-Based
Information-Intensive
Long-Term Oriented
Individualized
Through
Use of...
Database
Technology
Database Marketing
How Companies Use Their
Databases ?
Identifying Prospects
Deciding Which Customers Should
Receive a Particular Offer
Deepening Customer Loyalty
Reactivating Customer Purchases
Integrated Direct
Marketing
 Direct
marketing campaigns that
use multiple vehicles and
multiple stages to improve
response rates and profits.
 Marketers
seek to improve
response rates and profits by
adding media and stages that
contribute more to additional
sales than to additional costs.
Public Relations
Building good relations with the
company’s various publics by
obtaining favorable publicity,
building up a good “corporate
image” and handling or heading
off unfavorable rumors, stories
and events.
The Role of
Public
Relations
Executes
Evaluates
programs to
gain public
acceptance
public attitudes
Identifies
issues of public
concern
Major Public
Relations Tools
Public
Service
Activities
Web Site
News
Corporate
Identity
Materials
Audiovisual
Materials
Speeches
Written
Materials
Special
Events

New product publicity

Consumer education

Event sponsorship

Issue sponsorship

Company websites
Publicity
Public information
about a company, good,
or service appearing in
the mass media as a
news item.
Enough for
Promotion. . .
Summary
Next….
Creating Competitive
Advantage
Principles of
Marketing
Lecture-39