Download Principles of Marketing

MGT301
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 4th 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 Selling

Sales Promotion

Public Relations
The Marketing Communications
Mix
Advertising
Any Paid Form of Non-personal
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
Direct Marketing
Building Good Relations with
Various Publics by Obtaining
Favorable Unpaid Publicity.
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 non-personal presentation by
an identified sponsor.
The Five M’s of Advertising
Message
Money
Mission
Factors to
consider:
Sales
goals
Stage in PLC
Advertising
objectives
Market share
and consumer base
Competition
and clutter
Advertising
frequency
Product
substitutability
Message generation
Message evaluation
and selection
Message execution
Social-responsibility
review
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
media allocation
Measurement
Communication
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
Identifying and Screening For
Qualified Potential Customers.
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step 3. Approach
Knowing How to Meet the Buyer to
Get the Relationship Off to a Good
Start.
Step 4. Presentation/
Demonstration
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
programs to
gain public
acceptance
Evaluates
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