Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Part 4 Focusing on the Customer: Marketing Growth Strategies CHAPTER 16 Promotional Planning Longenecker • Moore • Petty • Palich © 2008 Cengage Learning. All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama Looking AHEAD After you have read this chapter, you should be able to: 1. Describe the communication process and the factors determining a promotional mix. 2. Explain methods of determining the appropriate level of promotional expenditure. 3. Describe personal selling activities. 4. Identify advertising options for a small business. 5. Discuss the use of sales promotional tools. © 2008 Cengage Learning. All rights reserved. 16–2 The Communication Process in Promotion • Communication Process Components Source—the message sender Channel—the path the message travels Receiver—the recipient of the message • Forms of Promotional Communication Nonpersonal—advertising Personal—personal selling Special forms—sales promotion © 2008 Cengage Learning. All rights reserved. 16–3 16-1 Similarity of Personal and Small Business Communication Processes © 2008 Cengage Learning. All rights reserved. 16–4 Promotional Communications • Promotional Mix A blend of nonpersonal, personal, and special forms for communication techniques aimed at a target market. Makeup of the mix is determined by: Geographical Size nature of target market of promotional budget Product’s characteristics © 2008 Cengage Learning. All rights reserved. 16–5 Determining the Promotional Budget • “How much should a small business spend on promotion?” 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 © 2008 Cengage Learning. All rights reserved. 16–6 16-2 Four-Step Method for Determining a Promotional Budget © 2008 Cengage Learning. All rights reserved. 16–7 Comparing Alternative Promotion Expense Estimates START Compute WTDJ Proceed to develop promotion at WTDJ level YES Is WTDJ equal to or less than others? Key Terms: WTDJ: What it will take to do the job APS: A percentage of sales WCS: What can be spared ACS: As much as the competition spends NO Compute average of WTDJ, APS, WCS, and ACS Compare WCS with computed average Proceed to develop promotion at average level YES © 2008 Cengage Learning. All rights reserved. Is WCS equal to or greater than average? NO Seek additional funds to supplement promotion 16–8 Personal Selling in the Small Firm • Personal Selling A sales presentation (promotion) delivered in a one- on-one manner. Requires: Product knowledge Well-prepared sales presentation Ability to build good will © 2008 Cengage Learning. All rights reserved. 16–9 Importance of Product Knowledge • Salespersons use product knowledge to: Successfully educate customers about the product’s advantages, uses, and limitations. Answer customer questions and counter customer objections. Personal selling becomes order-taking when a salesperson lacks product knowledge. © 2008 Cengage Learning. All rights reserved. 16–10 The Sales Presentation: Prospecting • Prospecting A 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 new customers developed from public records and published sources. © 2008 Cengage Learning. All rights reserved. 16–11 The Sales Presentation: Prospecting (cont’d) • Prospecting Techniques (cont’d) Marketer-initiated contacts Market surveys are used to identify prospects Customer-initiated contacts Potential customers are identified through their contacts with the firm. © 2008 Cengage Learning. All rights reserved. 16–12 Practicing the Sales Presentation • Improves the salesperson’s success rate. • Prepares salesperson for objections related to price, product, timing, source, service, or need. • Techniques for dealing with objections: Direct denial Indirect denial Boomerang technique Compensation method Pass-up method © 2008 Cengage Learning. All rights reserved. 16–13 Overcoming Customer Objections I had problems with a similar product before and don’t want to go through that again! Yes, I understand your attitude, but have you considered . . . ? I’m too busy. That’s why I want to explain how I can save you time by . . . I like what you have said, but I need to wait. Let’s figure how much you can save by acting now. Your product sounds just like your competitor’s. There are similarities, but we have . . . at a better price. I’m not sure I can risk a changeover to your product. Let me tell you how a competitor decided to buy from me. © 2008 Cengage Learning. All rights reserved. 16–14 Making the Sales Presentation • Adapting the sales approach to the customers’ needs: Avoid a “canned” sales talk. Speak the customer’s “language”. Answer every objection explicitly and adequately. Be enthusiastic, friendly, and persistent. Be personally supportive of the customer. © 2008 Cengage Learning. All rights reserved. 16–15 Customer Goodwill and Relationship Selling • Relationship Selling Building customer goodwill for future sales to satisfied customers through: Maintaining Having Using a good personal appearance. a pleasant personality. professional etiquette in customer contacts. Understanding Maintaining © 2008 Cengage Learning. All rights reserved. the customer’s point of view. ethical standards in the relationship. 16–16 The Compensation Program for Salespeople • Nonfinancial Rewards Personal recognition of employees by the firm Plaques and “Employee of the Month” awards Providing “perks” to superior performers. Personal satisfaction drawn by salespersons from doing their work well. © 2008 Cengage Learning. All rights reserved. 16–17 Compensating Salespeople • Financial Rewards Commissions Compensation paid as percentage of sales productivity. Strong sales motivator Straight salary Compensation paid regardless of sales made. Combination of commissions and salary Balance of two compensation forms is adjusted to provide an increasing proportion of commission as salesperson gains experience. © 2008 Cengage Learning. All rights reserved. 16–18 Advertising Practices for Small Firms • Advertising The 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. © 2008 Cengage Learning. All rights reserved. 16–19 Types of Advertising • Product Advertising The presentation of a business idea designed to make potential customers aware of a specific product or service and create a desire for it. • Institutional Advertising The presentation of information about a particular firm, designed to enhance the firm’s image. © 2008 Cengage Learning. All rights reserved. 16–20 Obtaining Assistance with Advertising • Advertising Agencies Furnish design, artwork, and copy for ads Evaluate/recommend media with “pulling power” Evaluate the effectiveness of advertising appeals Advise on promotion and merchandise displays Conduct market sampling studies Furnish mailing lists • Other Sources Suppliers Trade Associations © 2008 Cengage Learning. All rights reserved. 16–21 Advertising Decision Factors • Frequency of Advertising With regularity for effectiveness and continuity Introduction of new uses for established products Introduction of new products and services • Where to Advertise Appropriate media mix determined by: Geographical area for target market coverage Customer type targeted by advertising campaign Advertising media customarily used by industry Type of business Web advertising on the World Wide Web (Internet) © 2008 Cengage Learning. All rights reserved. 16–22 16-3 Advantages and Disadvantages of Major Advertising Media Source: Charles W. Lamb, Jr., Joseph F. Hair, Jr., and Carl McDaniel, Marketing, 9th ed. (Cincinnati: South-Western, 2008), p. 475. © 2008 Cengage Learning. All rights reserved. 16–23 Web Advertising • Basic Web Promotions Banner ads Advertisements that appear across a Web page, often as moving rectangular strips Pop-up ads Advertisements that burst open on computer screens Direct e-mail promotion Advertising delivered by means of electronic mail Spam: unsolicited e-mail © 2008 Cengage Learning. All rights reserved. 16–24 Web Advertising (cont’d) • Basic Web Promotions (cont’d) Web sponsorships A type of advertising in which the firm pays another organization for the right to be part of that organization’s Web page. Linkages One firm pays another to include a click-on (clickthrough) advertising link on its Web site. A corporate Web site on the Internet Creating and registering a site name Building a user-friendly Web site Promoting the Web site © 2008 Cengage Learning. All rights reserved. 16–25 16-4 Website Design Tips Tip 1: Make It Easy to Buy Tip 2: Make a Strong First Impression Tip 3: Minimize Distractions: Advertising Isn’t Always Necessary Tip 4: Make It Personal Tip 5: Avoid Long Instructions Tip 6: Provide Visual Clues to Location Tip 7: Show Off Products Tip 8: Encourage Spontaneous Purchases Tip 9: Alternate Background Colors in Long Lists Tip 10: Allow Users to Collect Items Source: Nadja Vol Ochs, “Easy-to-Buy E-Commerce Site Design Tips,” http://www.microsoft.com/technet/prodtechnol/sscomm/reskit/sitedes.mspx, accessed July 13, 2007. © 2008 Cengage Learning. All rights reserved. 16–26 16-5 Options for Getting Your Website Listed in Search Engines 1. Use a Free Submission Service 2. Use a Low-Cost, Automated Submission Service 3. Do It Yourself by Manually Submitting Your Website to Individual Search Engines 4. Use a Professional Search Engine Consultant 5. Use Submission Software Source: Adapted from the Internet Marketing Center’s website, http://www.marketingtips.com/newsletters/search-engines/search-engine_strategies.html, accessed July 13, 2007. © 2008 Cengage Learning. All rights reserved. 16–27 Sales Promotional Tools • Sales Promotion An inclusive term for any promotional techniques that are neither personal selling or advertising Used in combination with personal selling and advertising. • Specialties Tangible 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 the name, logo, or slogan of the firm. © 2008 Cengage Learning. All rights reserved. 16–28 Sales Promotion Tools (cont’d) • Trade Show Exhibits Provide hands-on experience with products. Are less costly than personal selling. • Making Trade Show Exhibits Effective Check out the trade show’s 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! © 2008 Cengage Learning. All rights reserved. 16–29 Sales Promotion Tools (cont’d) • Publicity Information 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 with the news media © 2008 Cengage Learning. All rights reserved. 16–30 Sales Promotion Tools (cont’d) • When to Use Sales Promotion For manufacturers To stimulate channel members—retailers and wholesalers—to market a firm’s products. For wholesalers To induce retailers to buy inventories earlier than they normally 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 © 2008 Cengage Learning. All rights reserved. 16–31 Key TERMS • • • • • • • promotion promotional mix personal selling prospecting advertising product advertising institutional advertising © 2008 Cengage Learning. All rights reserved. • • • • • • • banner ads pop-up ads e-mail promotion Web sponsorship linkage sales promotion publicity 16–32