Download Sales Promotion - McGraw Hill Higher Education

Chapter 16
Using
Effective
Promotions
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Sixteen
LEARNING GOALS
1.
Identify the new and traditional tools that make up the promotion mix.
2.
Contrast the advantages and disadvantages of various advertising media,
including the Internet and social media.
3.
Illustrate the steps of the B2B and B2C selling processes.
4.
Describe the role of the public relations department, and show how publicity
fits in that role.
5.
Assess the effectiveness of various forms of sales promotion, including
sampling.
6.
Show how word of mouth, e-mail marketing, viral marketing, blogging,
podcasting, and mobile marketing work.
16-2
Promotion and
the Promotion
Mix
LG1
PROMOTION
in an ORGANIZATION
• Promotion Mix -- The combination of promotional
tools an organization uses. The traditional mix
includes:
16-3
Promotion and
the Promotion
Mix
LG1
INTEGRATED MARKETING
COMMUNICATION (IMC)
• Integrated Marketing Communication (IMC) -Combines the promotional tools into one
comprehensive strategy. IMC is used to:
- Create a positive brand image.
- Meet the needs of consumers.
- Meet the strategic marketing and promotional
goals of the firm.
16-4
FRESH-BAKED PROMOTION
Spotlight on Small Business
• Amy Scherber of Amy’s Bread can’t afford to
outsource her promotions, so she needs to get
creative.
• She sends newspaper editors stories about her
company and has an assortment of company
shirts.
• She builds strong word-of-mouth by keeping in
touch with her community members.
16-5
Promotion and
the Promotion
Mix
LG1
STEPS in a
PROMOTIONAL CAMPAIGN
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate effectiveness
16-6
Advertising:
Informing,
Persuading and
Reminding
ADVERTISING in the FIRM
LG2
• Advertising -- Paid, nonpersonal communication
through various media by
organizations and individuals
who are in some way
indentified in the message.
• Major goals of advertising:
- Inform
- Persuade
- Remind
16-7
Advertising:
Informing,
Persuading and
Reminding
IMPACT of ADVERTISING
LG2
• Total advertising expenditures
exceed $241 billion yearly.
• Consumers benefit because
production costs of TV
programs, radio programs,
newspapers and magazines
are paid for by advertisers.
• Marketers choose ad media
that will reach the target
market.
16-8
Advertising:
Informing,
Persuading and
Reminding
SOCIAL ADVERTISING
LG2
• Social media advertising
is growing so fast,
marketers can’t keep up.
• Starbucks has over 12
million followers on
Twitter.
• McDonald’s has over 7
million fans on Facebook.
16-9
Advertising:
Informing,
Persuading and
Reminding
MAJOR CATEGORIES of
ADVERTISING
LG2
Category
What it is
Retail
From retail stores to consumers
Trade
From manufacturers to wholesalers and retailers
c
B2B
From manufacturers to other manufacturers
Institutional
Creates a desirable image for an organization
Product
Creates a desirable image for a product or service
16-10
Advertising:
Informing,
Persuading and
Reminding
MAJOR CATEGORIES of
ADVERTISING
LG2
(Continued)
Category
What it is
Advocacy
Supports a particular view of an issue
Comparative
Compares competing products
Interactive
Customer-oriented ads that allows customers to
choose information to receive
Online
Computer ads featured on different sites
Mobile
Ads that reach consumers on cell phones
16-11
Promotion and
the Promotion
Mix
DEAR MR. POSTMAN…
LG1
Steps in Launching a Direct-Mail Campaign
1. Plan: What should your mailing accomplish?
2. Get the Right List: The better the list, the better
your chance of success.
3. Stand Out: Make your ad like
no other.
4. Get Help: Contact a marketing
firm with direct mail experience.
5. Follow Up: One mailing is not
enough.
16-12
Television
Advertising
POPULAR ADVERTISING MEDIA
LG2
• TV advertising is still the dominant media.
• Digital Video Recorders (DVRs) challenge TV
advertising because viewers can skip ads.
• Product Placement -Advertisers pay to put
their products into TV
shows and movies where
the audience will see
them.
16-13
Infomercials
and Online
Advertising
LG2
INFOMERCIALS and
ONLINE ADVERTISING
• Infomercial -- A full length TV program devoted
exclusively to promote a particular product.
• Online ads are attempts to get potential customers to
a web site to learn about a product.
• Interactive Promotion -- Allows marketers to open
a dialogue between buyers and sellers and let them
work together to create a beneficial exchange.
16-14
Infomercials
and Online
Advertising
LG2
ONLINE EXPERIENCE
How to Avoid Losing Customers Over a Bad Web Site
1. Brand messaging is key.
2. Site must be easy to
navigate.
3. Make sure calls to action
are effective.
4. Users want fast, readable
sites.
5. Users with disabilities
should be able to navigate.
Source: Entrepreneur, October 2010.
16-15
SOCIAL SCAMMERS
How to Protect Yourself From Schemers
1. Be wary of requests for
money transfers -- even
from friends’ accounts.
2. Be wary when you use
applications. Don’t give
unnecessary information.
3. Use URL expanders to see
the full address of links on
friends’ pages.
Photo Courtesy of: Paul Klintworth
Source: Kiplinger’s Personal Finance, December 2010.
16-16
Using Social
Media to Monitor
Ad Effectiveness
LG2
MONITORING
AD EFFECTIVENESS
• Dr. Pepper posts messages
on Facebook and monitors
the results from their over
8.5 million fans.
• Richard Branson and Tony
Hsieh all tweet their
customer base to maintain
two-way communication.
Photo Courtesy of: Brent Moore
16-17
Using Social
Media to Monitor
Ad Effectiveness
SOCIALLY SUPERIOR
LG2
Lessons From the Wisdom of the Old Spice Man
1. Create a strong persona.
2. Have customers play along
through Twitter and
Facebook.
3. Engage bloggers.
4. Personalize the experience.
5. Keep your videos short and
sweet!
Photo Courtesy of: Dirk Houbrechts
Source: Entrepreneur, September 2010.
16-18
Global
Advertising
GLOBAL ADVERTISING
LG2
• Requires marketers to
develop a single product
and promotional strategy to
implement worldwide.
• Problems can arise in
global markets with using
one advertising campaign
in all countries - especially
bad translations.
16-19
PROMOTION in
RURAL INDIA
(Reaching Beyond Our Borders)
• India's 700 million rural consumers are spending
more than ever.
• International brands are sending salesmen to
reach these customers by giving free Castrol oil
changes for tractors, passing out bowls of Nestlé
noodles, and selling Unilever soaps.
• These salesmen must be aware of social
customs to be successful.
16-20
Personal Selling:
Providing
Personal Attention
PERSONAL SELLING
LG3
• Personal Selling -- The face-to-face presentation
and promotion of a product, including the
salesperson’s search for new prospects and followup service.
• Salespeople need to listen
to customer needs, help
reach a solution and do
everything possible to make
the transaction as simple as
possible.
16-21
The Businessto-Consumer
Sales Process
LG3
STEPS in the B2C
SELLING PROCESS
16-22
Steps in the
Selling
Process
LG3
PROSPECTING and QUALIFYING
in SELLING
• Prospecting -- Researching potential buyers and
choosing those most likely to buy.
• Qualifying -- Making sure
customers have a need for a
product, the authority to buy
and the willingness to listen to
a sales message.
• Prospect -- A customer who
meets the qualifying criteria.
16-23
Steps in the
Selling
Process
LG3
BUY THIS!
Successful Selling Strategies
• Know your competition
• Understand your customer’s business
• Differentiate your product or service
• Sell to the people most likely to buy
• Build relationships
• Put the right people in the right selling spots
16-24
Steps in the
Selling
Process
WHOOPS!
Sales Slip-Ups
LG3
• Not feeling the customer’s pain
• Making money is the only goal
• Seeing sales as just a job
• Getting upset during the presentation
• Failing to properly prepare or over-preparing
• Not being yourself
• Neglecting the relationship
Source: Fortune Magazine.
16-25
Public Relations:
Building
Relationships
LG4
USING PUBLIC RELATIONS in
PROMOTION
• Public Relations (PR) -- Evaluates public
attitudes, changes policies and procedures in
response to the public, and executes a program of
action and information to earn public understanding
and acceptance.
• 3 steps of a good PR program:
1) Listen to the public
2) Change policies and procedures
3) Inform people you’re responsive to their needs
16-26
Publicity: The
Talking Arm of
PR
PUBLICITY
LG4
• Publicity -- Any information about
an individual, product or
organization that’s distributed to
the public through the media and is
not paid for or controlled by the
seller.
• Advantages of Publicity:
- Free
- Reaches people who would not
look at an advertisement
- More believable than advertising
16-27
Publicity: The
Talking Arm of
PR
DISADVANTAGES of PUBLICITY
LG4
• No control over whether the
media will use a story or when
they may release it.
• It can be good or bad.
• Once a story has been run, it
isn’t likely to run again.
16-28
Sales Promotion:
Giving Buyers
Incentives
SALES PROMOTIONS
LG5
• Sales Promotion -- The promotional tool that
stimulates consumer purchasing and dealer interest
by means of short-term activities.
• Categories of Sales
Promotions:
1. B2B Sales
Promotions
2. Consumer Sales
Promotions
16-29
Sales Promotion:
Giving Buyers
Incentives
LG5
SOME KEY
CONSUMER PROMOTIONS
• Coupons
• Demonstrations
• Sampling
• Sweepstakes
• In-store Displays
• Contests
16-30
Sales Promotion:
Giving Buyers
Incentives
CLIP THESE
LG5
Most Visited U.S. Coupon Clearing Sites
• Coupons, Inc
• EverSave
• RetailMeNot
• CouponCabin
16-31
Word of Mouth
and Other
Promotional Tools
LG6
USING WORD-of-MOUTH
PROMOTION
• Word-of-Mouth Promotion -- People tell others
about products they have purchased.
• Word-of-Mouth is important for products like:
- Restaurants
- Daycare and Eldercare
- Car Repair Shops
- Hair Stylists
- Hotels
16-32
Viral Marketing
LG6
EMERGING
PROMOTIONAL TOOLS
• Viral Marketing -- Paying
customers to say positive things on
the Internet or setting up multiple
selling schemes whereby
consumers get commissions.
• People who promote through
viral marketing often receive
SWAG which can include free
tickets, shirts, and other
merchandise.
16-33
Blogging,
Podcasting and
E-mail
Promotions
Trends in Promotional Strategies
LG6
• Blog -- Short for web log; an online diary that looks like
a webpage, but is easier to create and update by
posting text, photos, videos, or links.
• Podcasting -- A way to distribute audio and video
programs via the Internet.
• Email promotions increase brand awareness among
commercial suppliers.
• Mobile Media -- Marketers make use of cell phones to
text customers about product offers and other company
information
16-34
Promotional
Strategies
LG6
PUSH, PULL, AND PICK
PROMOTIONAL STRATEGIES
• Push Strategy -- Producers use advertising,
personal selling, sales promotion, and other tools to
get their products stocked on shelves.
• Pull Strategy -- Directs heavy advertising and sales
promotions efforts towards consumers and gets the
public to request their products from retailers.
• Pick Economy -- Refers to consumers who pick out
their products from online outlets.
16-35