İntroduction to Business 2BUS 102

Erlan Bakiev, Ph. D.

Zirve UniversityBUS 102

Promotional Strategies

What Is Promotion?What Is Promotion?Promotional Strategy

PromotionalGoals

ProductVariables

PromotionalMix

DirectInteraction

IndirectCommunication

Promotional GoalsPromotional Goals

Inform Persuade Remind

Attract NewCustomers

Attract NewCustomers

Differentiate theProduct

Differentiate theProduct

InfluenceDecision Makers

InfluenceDecision Makers

AidDistributors

AidDistributors Stabilize SalesStabilize SalesSell to Existing

Customers

Sell to Existing Customers

Boost NameRecognition

Boost NameRecognition

Create SalesLeads

Create SalesLeads

The Promotional MixThe Promotional MixActivity Reach Timing Flexibility

Cost/Exposure

Personal Selling

Advertising

DirectMarketing

SalesPromotion

PublicRelations

Direct InteractionLimited Reach

Indirect InteractionLarge Reach

Direct InteractionLarge Reach

Indirect InteractionLarge Reach

Indirect InteractionLarge Reach

Regular Contact

Regular Contact

Intermittent

Intermittent

Intermittent

TailoredMessage

Standard Message

CustomizedMessage

StandardMessage

StandardMessage

Relatively High

Low to Moderate

Relatively High

Varies

No Direct Cost

Elements of PromotionElements of Promotion Personal sellingPersonal selling

AdvertisingAdvertising

Direct marketingDirect marketing

Sales promotionSales promotion

Public relationsPublic relations

Product VariablesProduct VariablesProduct VariablesProduct Variables

ComplexityComplexityComplexityComplexity

PricePricePricePrice

FamiliarityFamiliarityFamiliarityFamiliarity

Life CycleLife CycleLife CycleLife Cycle

Advertising

Direct MarketingPe

rson

al S

ellin

g

Sales PromotionPublic Relations

Market VariablesMarket Variables

Target MarketTarget Market Market StrategyMarket Strategy

ClusteredClustered DispersedDispersed

PersonalSelling

PersonalSelling

ProductAdvertisingProduct

Advertising

IntermediariesIntermediaries CustomersCustomers

PushStrategyPush

StrategyPull

StrategyPull

Strategy

Critical Thinking

1. Why should a company such as McDonald’s, which is already well-known to virtually all consumers , continue to spend heavily on advertising?

2. Why does an entirely new sort of product need a different promotional strategy than a well-known product?

3. Would it be wise for a manufacturer that is new to a particular industry (and unknown within it) to invest most of its promotional resources in a pull strategy? Why or why not?

Personal SellingPersonal Selling

Customer-OrientedMarketing

Customer-OrientedMarketing

Partnerships withCustomers

Partnerships withCustomers

Types of Sales PersonnelTypes of Sales Personnel

Order GettersOrder GettersOrder GettersOrder Getters

Sales SupportSales SupportSales SupportSales Support

Order TakersOrder TakersOrder TakersOrder Takers

HighHigh

LowLow

Creative Creative SellingSelling

LowLow

HighHigh

Order Order ProcessingProcessing

Support FunctionsSupport FunctionsMissionary SalesMissionary Sales

Technical SalesTechnical Sales

Trade SalesTrade Sales

Personal Selling ProcessPersonal Selling Process

ProspectingProspecting1

PreparingPreparing2

ApproachingApproaching3

PresentingPresenting4

HandlingObjectionsHandling

Objections

5

ClosingClosing6

Following UpFollowing Up7

Critical Thinking

1. How should a salesperson take the time to qualify sales leads?

2. Why is the canned approach inadequate for may selling situations?

3. Why might some salespeople be reluctant to come right out and ask for an order?

Product AwarenessProduct AwarenessProduct AwarenessProduct Awareness

Product ImageProduct ImageProduct ImageProduct Image

Consumer DemandConsumer DemandConsumer DemandConsumer Demand

Advertising and Direct Marketing

Types of AdvertisingTypes of AdvertisingProduct

Institutional

National and Local

Word of Mouth

Competitive Advertising, Comparative Advertising

Green Marketing, Corporate or Advocacy Advertising

Nationwide Coverage, Cooperative Advertising

Repeat Customers, Buzz Marketing

Advertising AppealsAdvertising Appeals

LogicalLogical EmotionalEmotional

CelebrityCelebrity SexualSexual

Target Market

Audience

Pro

du

ctS

erv

ice

Advertising MediaAdvertising Media

Media Plan Media Plan

Media Mix Media Mix

Major Advertising MediaMajor Advertising Media

NewspapersNewspapers

E-mailE-mail

TelevisionTelevision Direct MailDirect Mail

InternetInternetMagazinesMagazinesRadioRadio

Developments Developments in E-Mail Marketingin E-Mail Marketing

Legitimate Marketers

Legitimate Marketers

PermissionMarketing

PermissionMarketing

“Opt-In”Choices

“Opt-In”Choices

SPAM Marketers

SPAM Marketers

“Harvested”Addresses

“Harvested”Addresses

“AddressGuessing”

“AddressGuessing”

CAN-SPAM Act of 2003

Developments Developments in Online Mediain Online Media

Display Ads

Search Engine Ads

Blog Ads

Critical Thinking

1. Should Zirve University advertise to attract new students? Why or why not?

2. Why have so many companies used celebrities in their ads?

3. Why has search engine advertising become such a popular way to reach audiences?

Sales PromotionSales Promotion

ConsumerConsumerPromotionPromotionConsumerConsumerPromotionPromotion

TradeTradePromotionPromotion

TradeTradePromotionPromotion

Consumer Consumer Sales PromotionsSales Promotions

CouponsCoupons

RebatesRebates

Point-of-PurchasePoint-of-Purchase

Special-Event AdvertisingSpecial-Event Advertising

SamplesSamples

PremiumsPremiums

Cross-PromotionsCross-Promotions

Specialty AdvertisingSpecialty Advertising

Trade SalesTrade SalesPromotionPromotion

Trade AllowancesTrade Allowances

Display PremiumsDisplay Premiums

Dealer ContestsDealer Contests

Travel Bonus ProgramsTravel Bonus Programs

Public RelationsPublic Relations

NewsConferences

NewsReleases

CommunityRelations

PressRelations

InvestorRelations

GovernmentAffairs

Product Publicity

Integrated Marketing CommunicationsIntegrated Marketing CommunicationsIntegrated Marketing CommunicationsIntegrated Marketing Communications

© Prentice Hall, 2007

IMCIMCIMCIMC

PublicPublicRelationsRelations

PersonalPersonalSellingSelling

ProductProductAdvertisingAdvertising

DirectDirectMarketingMarketing

SalesSalesPromotionPromotion

EffectivenessEffectiveness

ConsistencyConsistency

Imp

act

Imp

actC

lari

tyC

lari

ty

Critical Thinking

1. How can sales promotion reduce the uncertainty that buyers might feel about trying an unfamiliar product?

2. Why are press relations so critical to the launch of many new products?

3. Why does the integrated marketing communication philosophy place so much importance on delivering a consistent message through all communication channels?