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1/56Promotion and the Promotion Mix2/56Promotion•Promotion•An effort by marketers to inform and remind people in the target market about products and to persuade them to participate in the exchange 3/56Promotion (cont.)•Promotion Mix•Advertising•Personal selling•Public relations•Sales promotion4/56Promotion (cont.)•Integrated Marketing Communication (IMC)•A technique that combines all the promotional tools into one comprehensive and unified promotional strategy5/56Promotion (cont.)•Advertising•Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message •$245 billion 6/56Promotion (cont.)Propaganda•Nonpersonal communication that does not have an identified sponsor 7/56Promotion (cont.)•Television •Direct Mail•Newspapers •Internet 8/56Promotion (cont.)•Public benefits of advertising•Informative products, prices, features •Free TV and Radio•Covers the major costs of producing newspapers and magazines9/56Promotion (cont.)•Local advertisers•Newspapers, radio, Yellow Pages •TV •Great impact •Expensive 10/56Promotion (cont.)•Product placement•Putting products into TV shows and movies where they will be seen•Radio Advertising•Less expensive than TV advertising•Reaches people when they have few distractions11/56Infomercials •Infomercial•A full-length TV program devoted exclusively to promoting goods and servicesthey show the product in great detail some products (work-out tapes) are hard to sell without showing testimonials 12/56Internet•Get customers and potential customers to a web site •Interactive Promotion•Buyers and sellers work together to create mutually beneficial exchange relationships13/56Internet (cont.)•Internet marketing•Build relationships with customers14/56Global Advertising •Global Advertising•Developing a product and promotional strategy that can be implemented worldwide •Because of differences in culture, language, and buying habits, promotional efforts designed specifically for individual countries may work best15/56Global Advertising (cont.)•International advertising•Calls for researching each country •US•Selected groups are sometimes large enough and different enough to call for specially designed promotions16/56Global Advertising (cont.)•Advertising•Evolving from Globalism (one ad for everyone in the world) to Regionalism (specific ads for each country or for specific groups within a country)17/56Personal Selling •Face-to-face presentation and promotion of products and services •Searching out prospects•Providing follow-up service after the sale18/56Personal Selling (cont.)•Effective selling is more than persuading others to buy; it is helping them to satisfy their wants and needs •Some companies are replacing sales people with the Internet19/56Personal Selling (cont.)•Some stats•7 million people employed in sales •77 % of companies are hiring more field sales representatives •Salespeople can make more than their supervisor •Average cost of a single sales call to a potential B2B buyer is about $40020/56Steps in the Selling Process •Customer Relationship Management (CRM)•Critically important to establisshin long-term relationships with customers•Critical for the salesperson to know the product well and know how the product compares to those of competitors 21/56Steps… (cont.)•Prospecting•Researching potential buyers•Choosing those most likely to buy•Qualifying•Making sure that people have the NEED for a productAUTHORITY to buyWILLINGNESS to listen to a sales message 22/56Steps… (cont.)•Prospect•The person who meets these criteria •The best prospects are people recommended by existing customers 23/56Steps… (cont.)•Preaproach•Research Database•Approach•Give impression of friendly professionalism to create rapport, to build credibility, and to start a relationship24/56Steps… (cont.)•Make Presentation•Match the benefits of your value package to the client’s needs•CRM software Testimonials25/56Steps… (cont.)•Answer objections•Anticipate potential objections•Questions should be viewed as opportunities26/56Steps… (cont.)•Close Sale•Trial CloseA step in the selling process that consists of a question or statement that moves the selling process toward the actual close•Ask for the Order 27/56Steps… (cont.)•Follow up•The selling process isn’t over until the order is approved and the customer is happyhandling customer complaintsmaking sure that the customer’s questions are answeredsupplying what the customer wants28/56Steps… (cont.)•Establishing Relationships •Customer service29/56Steps… (cont.)•Sales Force Automation (SFA)•software programs that help salespeople design products, close deals, tap into intranets, and more 30/56B2C Sales Process •The salesperson does not have to do as much prospecting or qualifying •Retail salespeople don’t usually have to go through a preapproach step 31/56B2C Sales Process (cont.)•APPROACH•“May I help you;” -“What can I help you with?” •Make a presentation •Answer customer’s questions•Trial close•After-Sale Follow-up•Important but often neglected step in B2C sales 32/56Public Relations •Public Relations (PR)•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 33/56Public Relations (cont.)•Public Relations Program Steps •Listen to the publicstart with good marketing research •Change policies and procedureslisten to what customers want •Inform peoplethat you’re being responsive to their needs34/56Public Relations (cont.)•Maintain close relationship•Media•Community leaders•Government officials•Other stakeholders 35/56Publicity •Publicity•Any information about an individual, product, or an organization that is distributed to the public through the media, and that’s not paid for or controlled by the sponsor •Press Releases 36/56Publicity (cont.)•Advantages •Free •May reach people who wouldn’t read ads •Believability•Disadvantages •No control•One time exposure37/56Sales Promotion •Sales Promotion•Promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities •Consumer sales promotionsfree samplescents-off couponsprizes 38/56Sales Promotion (cont.)•Sales promotion programs•Designed to supplement personal selling, advertising and public relations by creating enthusiasm for the overall promotional program 39/56Sales Promotion (cont.)•Internal Sales Promotion•Generate employee enthusiasm about a product sales training development of sales aids •flip charts, portable audiovisual displays, and videotapes40/56Sales Promotion (cont.)•External Sales Promotion •Get distributors and dealers involved (enthusiastic)trade shows virtual trade shows 41/56Sales Promotion (cont.)•Promote to final customers •Toolssamplescouponscents-off dealsdisplayscontestsrebates•Ongoing effort to maintain enthusiasm 42/56Sales Promotion (cont.)•Sampling•A promotional tool in which a company lets consumers have a small sample of a product for no charge •Event marketing43/56Word-of-Mouth •Word of Mouth Promotion•A promotional tool that involves people telling other people about products they have purchased 44/56Word-of-Mouth (cont.)•Viral Marketing•Creating word-of-mouth by paying people to go online and hype the productfree ticketsT-shirtsSWAG (Samples, Wearables and Gifts)45/56Word-of-Mouth (cont.)•Viral Marketing•Term used to describe everything from paying people to say positive things on the Internet to setting up multilevel selling schemes (consumers get commissions for directing friends to specific Web sites) 46/56Word-of-Mouth (cont.)•Send testimonials to current customers •Confirming customers’ belief that they chose the right company •Upset customers are now publishing their complaints on the Internet 47/56Word-of-Mouth (cont.)•Blog•Online diary (Web log) that is easier to create and update by posting text, photos, or links to other sites •9 million blogs •Business information is revolutionized by bloggers48/56Word-of-Mouth (cont.)•Podcasting•A means of distributing audio and video programs via the Internet that lets users subscribe to a number of files -feeds, and then hear or view the material at the time they choose 49/56Technologies and Promotion •Companies keep track of Internet purchases•Gather facts about customers •Design catalogs and brochures specifically to meet individual customer needs 50/56Technologies… (cont.)•Companies•Use traditional promotional tools less•Spend more on direct marketing•Continuous connection to the Internet•Marketers send video files•Marketers interact with consumers in real time 51/56Technologies… (cont.)•Customers can search the Net for the best prices and find product information •Promotion has become more interactive52/56Managing the Promotion Mix •Each target group calls for a separate promotion mix •Advertisinglarge, homogenous groups of consumers•Personal Sellinglarge organizations53/56Managing… (cont.)•Sales Promotion•Motivates people to buy now rather than later •Publicity•Adds support to the other efforts•Can create a good impression •Word of Mouth•Often the most powerful promotional tooBlogsPodcasting 54/56Promotion Strategies •Push Strategy•The producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise 55/56Promotion… (cont.)•Pull Strategy•Heavy advertising and sales promotion efforts are directed toward consumers so they will request the products from retailers56/56Promotion… (cont.)•Promotion•Part of a Total Systems Approach to marketing •Total Product Offer•Manufacturers•Distributors•Retailers•Consumers