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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