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CHAPTER 13PROMOTION STRATEGY
PROMOTION STRATEGY
• Communication Process
• Promotion Objectives
• Major Promotion Areas
COMMUNICATION PROCESS
Process Marketing Application
Source Sender of message
Encode Design message
Message Personal or non-personal channel Decode Receiver interprets message
PROMOTION OBJECTIVES
• Communication Objectives- To inform- To remind
• Behavior Objectives- To sell- To take some action
BEHAVIOR OBJECTIVES IN ADVERTISING
• Don’t Mess With Texas
• Army ad
• Vote in next election
• Groupon objectives
MAJOR PROMOTION AREAS
• Sales Promotion
• Publicity
• Advertising
• Personal Selling
• Direct Marketing
SALES PROMOTION
•Consumer promotions
•Business promotions
Paid forms of promotion with quick stimuli results
CONSUMER SALES PROMOTION
• Frequent flyer points
• Coupons
• Rebates
BUSINESS SALES PROMOTION
• Sales contests
• Pens and pencils
• Special display in stores
TRADE SHOW PROMOTIONS
• T-shirts
• USB Drives
• Tossable Items
PUBLICITY
Non-paid form of promotion
• Publicity must be newsworthy to media
• Cannot be controlled by sponsor
• Technology is making newer forms of publicity available
PUBLICITY EXAMPLES
• BP oil spill
• Oprah’s giveaway
• World Cup soccer
• Exxon Disaster
ADVERTISING
Paid form of promotion with non-personal presentations
• Advertising Decision Process
• Media Decisions
ADVERTISING DECISION PROCESS
• Define target market(s)
• Set advertising objectives
• Make advertising decisions
• Measure advertising results (Effectiveness)
ADVERTISING OBJECTIVES
• Unawareness
• Awareness
• Comprehensive
• Conviction
• Action
CommunicationObjectives
Sales Objectives
MEDIA DECISIONS
• Traditional media
• Social media
TRADITIONAL MEDIA
• Newspapers
• Magazines
• Television
• Radio
MAGAZINE CIRCULATION
Magazine 2000 2010
Newsweek 3.1 million 1.6 million Time 4.1 million 3.3 million
SOCIAL MEDIA
• YouTube
SOCIAL MEDIA CHANGES
• Social Media vs. Traditional Media
• Smart Phones, Tablets, and iPads
U.S. MOBILE AD SALES
2011 $4.0 Billion
2012 $6.7 Billion
2013 $10.5 Billion
PERSONAL SELLING
Paid form of promotion withpersonal presentations
• Selling Objectives
• Selling Process
• Customer Relations Management
SELLING OBJECTIVES FOR BUYERS
Attention
Desire
Action
Interest
A
A
I
D
SELLING PROCESS• Prospecting
• Approach
• Presentation and Objections
• Closing the Sale
• Follow-up
PROSPECTING STAGE
Cold Calls Telemarketing
Leads Prospects with need
Qualified Leads Prospects with need and can afford your product
QUALIFYING BUSINESS LEADS AT TRADE SHOWS
Hot Wants to buy now
Sales Worth a sales call
Low Low sales priority
APPROACH STAGE
• Pre-approach- Actions before calling on prospect
• Approach- Meeting and greeting the buyer
PRESENTATION EXAMPLES
• Telemarketing
• Need Satisfaction
• Problem Solutions
TELEMARKETING
• Cemetery lots
• Vacation condos
• Non-profit organizations
• Senior Citizens
HANDLING OBJECTIONS
• Postpone
• Agree and Neutralize
• Ignore the Objection
CLOSING THE SALE
• Trial close
• Assumptive close
• Urgency close
FREE MEALS TO CLOSE THE SALES
• Condominiums
• Financial planning
• Medicare advantage
FOLLOW-UP
• Phone call
• Letter or card
CUSTOMER RELATIONS MANAGEMENT (CRM)
• Develop Customer Database
• Identify Individual Customer Preferences
• Contact Most Important Customers
CRM DATA MINING INFORMATION
• Identify high-value customers
• Sales force contacts
• Credit/debit information
• Number of website visits
CUSTOMER RELATIONSHIP MANAGEMENT EXAMPLES
• Business hotel regulars
• Heavy user customers on airlines
• Major university endowment sponsors
DIRECT MARKETING
• Kiosks sales
• Infomercial sales
• Network marketing
KIOSKS SALES
• Supermarkets
• Airports
• Shopping Centers
• Vending Machines
VENDING PRODUCTS
• Redbox
• Cupcakes
• Baby products
• Ramen noodles
INFOMERCIALS SALES
Person Product
George Foreman Lean Mean Grilling Machine
Ron Popeil Showtime Rotisserie Oven
Tom Vu Real Estate Seminars
RECENT INFOMERCIALS
Product Sales
Snuggie 18 million Bumpits 9 million
Ped Egg 30 million
INFOMERCIALS FOR SELLING DVDs
• Takes 5-6 weeks for delivery
• Seller stocks no inventory
• Contract supplier is drop shipper
• Revenue occurs when DVDs are ordered
NETWORK MARKETING COMPANIES
• Amway
• Stella & Dot
• Tupperware