Download Marketing Management

14-1
14-2
Chapter 14 Themes
for Class Discussion
Integrated Promotion
Decisions
McGraw-Hill/Irwin
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
14-3
The best product at the right price
in the right channel may not sell if
customers don’t know it exists.
What are the tools to develop this
final element of the marketing mix?
14-4
Exhibit 14.2
Decision Sequence for Developing Promotion Mix
Define the audience to be targeted
(1)
Set the promotional objectives
(2)
Set the promotion budget
(3)
Design the promotional mix
(4)
Evaluate the results
(5)
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How do we decide
whom is to be targeted?
14-6
What do useful objectives
of any kind look like?
Promotional objectives?
What should they specify?
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What are the merits and drawbacks
of various approaches for budget
setting?
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Which elements of the promotion
mix are primary? When? Which
often play supporting roles?
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Exhibit 14.3
Strategic Circumstances and the Relative Importance of Personal
Selling as a Promotional Tool
Advertising
relatively
important
Large
Low
Small
Little
Low
Pull
Preset
Many
Number of customers
Buyers’ information needs
Size and importance of purchase
Postpurchase service required
Product complexity
Distribution strategy
Pricing policy
Resources available for promotion
Personal Selling
relatively
important
Small
High
large
Much
High
Push
Negotiated
Few
Source: Adapted from David W. Cravens, Strategic Marketing (Burr Ridge, IL: Richard D. Irwin, 1987), p. 508.
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How should one decide which
elements of the promotion mix
should be used?
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Exhibit 14.4
Comparing the Merits of the Promotion Mix Elements (Part 1)
Promotion mix
Element
Amount of
Information to be
Communicated
Credibility
Control
over the
Message
Cost to
reach one
customer
Strategic
suitability
Advertising
Varies: little
information in a
radio or a TV ad,
to lots on a
website
Low
Good
Low
Well-suited
to a Pull
Strategy
Personal
Selling
Lots of information
Depends on
the credibility
of the
company and
the
personality
and sales
skills of the
salesperson
Poor, but
training
helps
Very high
in
developed
countries,
can be low
elsewhere
Well-suited
to a Push
Strategy
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Exhibit 14.4
Comparing the Merits of the Promotion Mix Elements (Part 2)
Promotion
mix Element
Amount of
Information to be
Communicated
Credibility
Control
over the
Message
Cost to
reach one
customer
Strategic
suitability
Sales
Promotion
Virtually no
information
Not
Applicable
Good
Low and
Selfliquidating:
generally
pays for
itself as the
product is
purchased
Consumer
promotion supports
a pull strategy.
Trade supports a
push strategy
Public
Relations
Lots of information
High
Poor
Very low or
nil
Supports both pull
and push strategies
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So, if advertising is planned, what
decisions must be made?
Set advertising objectives (SMART)
 Choose media
 Develop creative strategy and messages
 Measure effectiveness: pre or post

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Media Choices
Medium
Newspaper
Magazine
TV
Radio
Outdoor
Direct Mail
Banner Ads
E-mail
Info
Ability
Ad
Production
Clutter Content to Target Lifespan Cost
CPM
14-15
What about sales promotion? Two
key questions
Specify objectives (SMART)
 Most consumer and trade promotion is directly measurable
 Consumer or trade promotion, or both?

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What’s involved in planning the
personal selling portion of a
marketing plan?
Clarify sales task: objectives, activities, and length of sales
cycle
 Design sales force architecture, account management policies,
and systems

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What’s a sales cycle?
Why does it matter in an early
stage company?
14-18
Three Strategic Questions in
Sales Force Design
Build a sales force or hire outside agents?
 How to organize:
 Geographically?
 By product or product line?
 By customer type?
 By selling function?
 How to use technology to enhance sales and customer service
performance?

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Q1: Should we use our own sales
force or use outside agents? When
and why?
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Q2: In designing the sales force
architecture, should it be organized
geographically, around products,
around customers, or around
selling functions? When and why?
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Q3: What technology applications
can enhance personal selling?
What are their merits? What are
the risks?
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The People Side of Sales
Management: Some Advice
Incentives and rewards (financial and otherwise) matter
greatly in personal selling
 Selecting and training the right people makes a world of
difference. In many companies, the top-producing sales
people are paid more than some top managers -- and
they’re worth it!
 “What gets measured gets done.” Good sales management
systems measure sales, costs and margins, and behavior
 In start-ups, the top management team often is and should
be the primary sales force

14-23
What about public relations? What
does it take to get free publicity?
What is it most useful for?