Download GETTING TO KNOW MEG WHITMAN FROM EBAY

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GETTING TO KNOW DAN WIEDEN of WIEDEN AND KENNEDY. The profile at the beginning of the chapter focuses on
DAN WIEDEN. Wieden’s company is known as one of the
most creative advertising agencies in the U.S.
I.
PROMOTION AND THE PROMOTION MIX.
LEARNING GOAL 1
Define promotion and list the four traditional tools that make up the promotion
mix.
A. PROMOTION is an effort by marketers to inform and
remind people in the target market and about products
and to persuade them to participate in the exchange.
1. These tools include advertising, personal selling,
public relations, and sales promotion.
2. The combination of promotional tools an organization uses is called its PROMOTION MIX.
B. INTEGRATED MARKETING COMMUNICATION
(IMC) is a technique that combines all the promotional
tools into one comprehensive and unified promotional
strategy.
1. Lately companies have added INTERNET PROMOTIONS to the mix.
2. All the promotional tools and company resources
are used to create a positive brand image and
meet company goals.
II.
ADVERTISING: PERSUASIVE COMMUNICATION.
LEARNING GOAL 2
Define advertising and describe the advantages and disadvantages of various
advertising media, including the Internet.
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A. ADVERTISING is paid, nonpersonal communication
through various media by organizations and individuals who are in some way identified in the advertising
message.
1. The TOTAL AD VOLUME exceeds $231 billion
yearly.
a. TELEVISION is the number one advertising
medium in terms of total dollars spent (23% of
total.)
b. DIRECT MAIL is number two, with 19.3%.
c. NEWSPAPERS are a close third, with 19.2%
of the total.
d. INTERNET ADVERTISING still takes less than
2.5% of total expenditures.
2. The public BENEFITS FROM ADVERTISING in
the following ways:
a. Advertising is INFORMATIVE–it provides information about products, prices, features, and
so on.
b. Advertising provides us with FREE TV AND
RADIO PROGRAMS, because advertisers
cover most of the production costs.
c. Advertising costs cover the major costs of producing newspapers and magazines.
3. Newspapers, radio, and the Yellow Pages are especially attractive to LOCAL ADVERTISERS.
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4. TV has many advantages to national advertisers,
but it is expensive.
a. However, there are few other media that
REACH AS MANY PEOPLE with such impact.
b. PRODUCT PLACEMENT is putting products
into TV shows and movies where they will be
seen.
c. Marketers must choose which media and
which programs can best be used to reach the
audience they desire.
d. RADIO ADVERTISING is less expensive than
TV advertising and often reaches people when
they have few distractions.
B. THE GROWING USE OF INFOMERCIALS.
1. An INFOMERCIAL is a full-length TV program devoted exclusively to promoting goods and services.
2. They are so successful because they show the
product in great detail.
3. Some products, such as work-out tapes, are hard
to sell without showing testimonials.
C. ADVERTISING AND PROMOTION ON THE INTERNET.
1. Advertising on the Internet is a relatively new phenomenon in marketing.
a. Although most people tend to IGNORE INTERNET ADS, companies continue to use
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them hoping to tap into the huge online marketing potential.
b. The goal is to GET CUSTOMERS AND POTENTIAL CUSTOMERS TO A WEBSITE
where they can learn more about the company
and its products.
2. INTERACTIVE PROMOTION is a promotion process that allows marketers to go beyond a monologue, where sellers tried to persuade buyers to
buy things, to a dialogue in which buyers and
sellers can work together to create mutually beneficial exchange relationships.
3. The text uses the example of Garden.com’s interactive website.
4. TECHNOLOGY has improved the speed and potential of Internet dialogues.
5. The current trend in Internet marketing is to build
relationships with customers over time.
D. GLOBAL ADVERTISING.
1. GLOBAL ADVERTISING refers to developing a
product and promotional strategy that can be implemented worldwide.
2. Promotion TARGETED AT SPECIFIC COUNTRIES may be more successful since each has its
own culture, language, and buying habits.
3. Because of cultural differences, promotional efforts designed specifically for individual countries
may work best.
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4. Getting the words right in international advertising
is critical, but tricky.
5. International advertising calls for researching THE
WANTS AND NEEDS OF PEOPLE in each country.
6. Even in the U.S., selected groups are large
enough and different enough to call for specially
designed promotions.
7. Advertising today is moving from GLOBALISM
(one ad for everyone in the world) to REGIONALISM (specific ads for each country or for specific
groups within a country.)
III.
PERSONAL SELLING: PROVIDING PERSONAL
ATTENTION.
LEARNING GOAL 3
Illustrate the steps of B2B and B2C selling process, and discuss the role of a
consultative salesperson.
A. PERSONAL SELLING is the face-to-face presentation
and promotion of products and services
1. It also involves searching out prospects and
providing follow-up service after the sale.
2. Effective selling today is more than persuading
others to buy; it is helping them to SATISFY
THEIR WANTS AND NEEDS.
3. Salespeople now use TECHNOLOGY, such as
the Internet, portable computers, and fax machines, to help customers and to complete the
sale.
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4. It is costly to provide personal attention for customers, so some companies are REPLACING
SALESPEOPLE WITH INTERNET SERVICES.
5. Nearly 10% of the total labor force is employed in
personal selling.
6. The average cost of a single sales call to a potential B2B buyer is about $400.
B. STEPS IN THE SELLING PROCESS.
1. CONSUMER RELATIONSHIP MANAGEMENT
(CRM) is becoming critically important to establishing long-term relationships with customers.
a. The selling process is similar for B2B and for
consumer products.
b. In both, it is critical for the salesperson to know
the product well and know how the product
compares to those of competitors.
2. STEP 1: PROSPECT AND QUALIFY.
a. PROSPECTING involves researching potential
buyers and choosing those most likely to buy.
b. QUALIFYING means making sure that people
have the NEED for a product, the AUTHORITY to buy, and the WILLINGNESS to listen to
a sales message (the PROSPECT).
c. The best prospects are people at companies
who were recommended to you by others who
use your product.
3. STEP 2: PREAPPROACH.
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a. Before making a sales call, sales representatives must do further RESEARCH.
b. Salespeople should learn as much as possible
about customers and their wants and needs.
c. All this information should be in a DATABASE.
d. Gathering information before the sale takes
place is critical.
4. STEP 3: APPROACH.
a. You don’t have a second chance to make a
FIRST IMPRESSION.
b. Try to give an impression of friendly professionalism to create rapport, to build credibility,
and to start a relationship.
5. STEP 4: MAKE PRESENTATION.
a. The idea is to match the benefits of your value
package to the client’s needs.
b. CRM software provides technical tools to tailor
the presentation.
c. This is a good time to use TESTIMONIALS.
6. STEP 5: ANSWER OBJECTIONS.
a. A salesperson should ANTICIPATE POTENTIAL OBJECTIONS and determine proper responses.
b. Questions should be viewed as opportunities
for creating better relationships.
7. STEP 6: CLOSE SALE.
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a. The TRIAL CLOSE is a step in the selling process that consists of a question or statement
that moves the selling process toward the actual close.
b. The final step is to ASK FOR THE ORDER.
c. Salespeople must close many times before a
long-term relationship is established.
8. STEP 7: FOLLOW UP.
a. Selling is more than simply sales, it is a matter
of ESTABLISHING RELATIONSHIPS, not just
selling goods and services.
b. FOLLOW-UP includes handling customer
complaints, making sure that the customer’s
questions are answered, and supplying what
the customer wants.
c. Often customer SERVICE is as important to
the sale as the product itself.
9. The SELLING PROCESS VARIES somewhat
among different goods and services, but the general idea is the same.
a. The goal is to help the buyer buy and make
sure the buyer is satisfied after the sale.
b. SALES FORCE AUTOMATION (SFA) includes software programs that help salespeople design products, close deals, tap into intranets, and more.
C. USING TECHNOLOGY TO PRACTICE CONSULTATIVE SELLING.
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1. B2B customers are buying more goods over the
INTERNET.
2. B2B salespeople will have new roles to play in the
future.
3. A CONSULTATIVE SALESPERSON is a salesperson who begins by analyzing customer needs
and then comes up with solutions to those needs.
4. Selling to the consumer market will change as
dramatically as selling to the B2B market has.
5. Customers will often have already RESEARCHED
THE PRODUCT ON THE INTERNET.
6. Consumer market salespeople also must function
as consultants.
7. Salespeople need to be COMPUTER PROFICIENT.
8. There is still a need for traditional salespeople, but
such agents will be fewer and will be paid less
than consultative salespeople.
D. THE BUSINESS-TO-CONSUMER (B2C) SALES
PROCESS.
1. B2C selling differs from B2B selling.
a. In B2C sales the salesperson does not have to
do much prospecting or qualifying.
b. Retail salespeople don’t usually have to go
through a preapproach step.
2. The first formal step in the B2C process is the
APPROACH.
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3. After the initial approach, a salesperson then
MAKES A PRESENTATION to show customers
how the company’s products meet their needs.
4. In B2C selling, it is important to make a TRIAL
CLOSE, walking a fine line between being helpful
and being pushy.
5. AFTER-SALE FOLLOW-UP is an important but
often neglected step in B2C sales.
IV.
PUBLIC RELATIONS: BUILDING RELATIONSHIPS WITH ALL PUBLICS.
LEARNING GOAL 4
Describe the role of the public relations department, and tell how publicity fits in
that role.
A. PUBLIC RELATIONS.
1. PUBLIC RELATIONS (PR) is the management
function that evaluates public attitudes, changes
policies and procedures in response to the public’s
requests, and executes a program of action and
information to earn public understanding and acceptance.
2. A GOOD PUBLIC RELATIONS PROGRAM HAS
THREE STEPS:
a. LISTEN TO THE PUBLIC; start with good
marketing research.
b. CHANGE POLICIES AND PROCEDURES to
have practices in the public interest.
c. INFORM PEOPLE of the fact that you’re being
responsive to their needs.
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3. Public relations demands a DIALOGUE with customers so that information can be exchanged over
time.
a. PR is taking a more ACTIVE ROLE IN LISTENING to consumers and working with them
to handle problems.
b. PR must establish good relationships with production and service people so they can answer
customer questions quickly.
4. It is hard to find a PR firm to work with–PR has
become one of the three fastest-growing industries
in the country.
5. The text uses the example of Yahoo, whose success is directly attributable to its long-term PR
strategy.
6. The public relations department has responsibility
for MAINTAINING CLOSE RELATIONSHIPS with
the media, community leaders, government officials, and other stakeholders.
B. PUBLICITY: THE TALKING ARM OF PR.
1. PUBLICITY is any information about an individual,
product, or an organization that is distributed to
the public through the media, and that is not paid
for or controlled by the sponsor.
a. Publicity works only if the media finds the material interesting or newsworthy.
b. The text uses the example of the use of PR in
the introduction of the Segway.
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2. DISADVANTAGES OF PUBLICITY include:
a. Marketers HAVE NO CONTROL over how,
when, or if the media will use the story.
b. Media DOES NOT HAVE TO PUBLISH IT.
c. The story can be ALTERED so it’s not positive.
d. There IS such a thing as BAD PUBLICITY.
e. Stories are NOT LIKELY TO BE REPEATED;
advertising can be repeated as often as needed.
3. To see that publicity is handled well by the media,
the marketer should establish a FRIENDLY RELATIONSHIP WITH THE MEDIA and cooperate
with them.
V.
SALES PROMOTION: GETTING A GOOD DEAL
LEARNING GOAL 5
Explain the importance of various forms of sales promotion, including sampling,
word of mouth, and viral marketing, and tell how they are affected by new technologies.
A. SALES PROMOTION.
1. SALES PROMOTION is the promotional tool that
stimulates consumer purchasing and dealer interest by means of short-term activities.
a. Examples of consumer sales promotions include free samples, cents-off coupons, and
prizes.
b. Sales promotion programs are designed to
SUPPLEMENT personal selling, advertising,
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and public relations by creating enthusiasm for
the overall promotional program.
2. INTERNAL SALES PROMOTION (within company) generate employee enthusiasm about a product, including:
a. Sales training.
b. Development of sales aids such as flip charts,
portable audiovisual displays, and videotapes.
c. Participation in trade shows.
3. EXTERNAL SALES PROMOTION (outside company, including distributors and dealers):
a. It is important to get distributors and dealers
involved so they too are enthusiastic.
b. Trade shows are important because buyers
are able to see products from many different
sellers.
c. Virtual trade shows—trade shows on the Internet—enable buyers to see many products
without leaving the office.
4. The next step is to PROMOTE TO FINAL CONSUMERS.
a. Techniques include samples, coupons, centsoff deals, displays, contests, rebates, and so
on.
b. Sales promotion is an ongoing effort to maintain enthusiasm.
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B. SAMPLING IS A POWERFUL SALES PROMOTION
TOOL.
1. SAMPLING is a promotional tool in which a company lets consumers have a small sample of a
product for no charge.
2. Using sampling in GROCERY STORES is a quick,
effective way of demonstrating a product’s superiority at the time consumers are making a purchase
decision.
3. Companies use sampling in conjunction with other
techniques such as event marketing.
4. The text uses the example of Pepsi’s introduction
of Fruit Works.
C. WORD-OF-MOUTH is one of the most effective promotional tools.
1. WORD-OF-MOUTH PROMOTION is a promotional tool that involves people telling other people
about products they have purchased.
2. Anything that encourages people to talk favorably
about an organization is effective word of mouth.
3. Clever commercials and samples can generate
word of mouth.
D. VIRAL MARKETING AND OTHER WORD-OFMOUTH STRATEGIES.
1. Some companies have begun creating word-ofmouth by paying people to go online and hype the
product in chat rooms.
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2. These people get free tickets, T-shirts, and other
merchandise that the industry calls SWAG.
3. VIRAL MARKETING is the term now used to describe everything from paying people to say positive things on the Internet to setting up multilevel
selling schemes whereby consumers get commissions for directing friends to specific websites.
4. Websites such as Barnes & Nobles pay a COMMISSION for customer recommendations.
5. An effective strategy for spreading word of mouth
is to send TESTIMONIALS to current customers.
a. These are effective in confirming customers’
belief that they chose the right company.
b. Some companies make it a habit to ask customers for referrals.
c. However, negative word of mouth can hurt a
firm.
d. Upset customers are now going on the Internet
and publishing their complaints.
E. HOW NEW TECHNOLOGIES ARE AFFECTING
PROMOTION.
1. As people purchase goods and services on the Internet, companies keep track of these purchases
and GATHER FACTS about these customers.
2. Using this information companies are able to design catalogs and brochures specifically to MEET
INDIVIDUAL CUSTOMER NEEDS.
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3. Companies are using traditional promotional tools
less and putting more money into direct marketing.
4. NEW TECHNOLOGIES offer consumers a continuous connection to the Internet and enable marketers to send video files and to interact with consumers in real time.
5. You can also search the Net for the best prices
and find product information.
6. Promotion has become more INTERACTIVE.
VI.
MANAGING THE PROMOTION MIX: PUTTING IT
ALL TOGETHER.
LEARNING GOAL 6
Describe integrated marketing communication and the role of interactive communications within it.
A. Each target group calls for a separate promotion mix.
1. Large, homogenous groups of consumers are
most efficiently reached through ADVERTISING.
2. Large organizations are best reached through
PERSONAL SELLING.
3. SALES PROMOTION motivates people to buy
now rather than later.
4. PUBLICITY adds support to the other efforts and
can create a good impression.
5. WORD OF MOUTH is often the most powerful
promotional tool.
B. PROMOTION STRATEGIES.
1. In a PUSH STRATEGY the producer uses advertising, personal selling, sales promotion, and all
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other promotional tools to convince wholesalers
and retailer to stock and sell merchandise.
2. In a PULL STRATEGY heavy advertising and
sales promotion efforts are directed toward consumers so they will request the products from retailers.
3. A company can use BOTH push and pull strategies at the same time.
4. The latest in pull and push strategies are being
conducted on the INTERNET.
5. It is important to make promotion part of a TOTAL
SYSTEMS APPROACH to marketing.
a. Thus promotion would be an integral part of
supply chain efforts.
b. The idea would be to develop a VALUE
PACKAGE to appeal to everyone: manufacturers, distributors, retailers, and consumers.
C. CREATING AN INTEGRATED MARKETING COMMUNICATION (IMC) SYSTEMS.
1. An INTEGRATED MARKETING COMMUNICATION SYSTEM (IMC) is a formal mechanism for
uniting all the promotional efforts in an organization to make it more responsive to its customers
and other stakeholders.
a. In the past, advertising was created by ad
agencies, public relations by PR firms, and so
forth, with little coordination.
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b. Customers could receive CONFLICTING
MESSAGES about products.
2. Today companies are trying to create an integrated approach.
a. To implement an IMC system, you start with
customers and stakeholders and their information needs.
b. All messages should be consistent and coordinated.
D. BUILDING INTERACTIVE MARKETING PROGRAMS.
1. An INTEGRATED MARKETING PROGRAM is a
system in which consumers can access company
information on their own and supply information
about themselves in an ongoing dialogue; the
basic steps are as follows.
2. Constantly GATHER DATA about the groups affected by the organization (including customers,
potential customers, and other stakeholders.)
a. An INFORMATION DATABASE is critical to
any successful program.
b. A company can gather such data from sales
transactions, letters, e-mail, and faxes–or hire
companies that specialize in gathering such
data.
3. RESPOND QUICKLY to customer and other
stakeholder information by adjusting company
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policies and practices and by designing wanted
products.
a. A responsive firm adapts to changing wants
and needs quickly.
b. It is important for the marketing department to
WORK CLOSELY WITH THE INFORMATION
SYSTEM DEPARTMENT to make the process
of ordering fast and smooth.
4. Make it possible for customers to OBTAIN INFORMATION that they need to make a purchase.
5. The ADVANTAGES of interactive marketing include:
a. Information is available 24/7.
b. Ads and catalogs can be updated continually.
c. Buyers and sellers can engage in a dialogue
over time.
d. It can be used by small as well as large businesses.
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