Week 9- 11-29-04Week 9- 11-29-04

Integrated Communication Integrated Communication Strategy and Promotion Strategy and Promotion

Tools Tools

Communication

The process by which we exchange or share meanings through a

common set of symbols.

The Communication Process

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

FeedbackFeedback

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

Marketing Communications Strategy

Let’s communicate with customers…

Steps to follow: Identify Target audience, Expected Response

(objectives),

Design the Message, Select the Media (importance of continuity: INTEGRATION of the COMMUNICATION MIX), Feedback.

One Main constraint: The budget. How much to spend?

Setting the Communication Budget

Wide possible rangeAffordable method - ignores promotion

impact on salesPercent of sales method - not

opportunity based Competitive parity method - company

needs are individualTask and Objective Method

Define specific promotion objectives Determine tasks needed to achieve Estimate costs of tasks Sum costs to set total promotion budget

The Need for Integrated Marketing Communications

Conflicting messages from different sources or promotional approaches

can confuse company or brand images

Integrated Marketing Communications

Marketing Communications Mix

AdvertisingAny paid form of non-personal presentation and

promotion of ideas, goods, or services by an identified sponsor.

Personal SellingPersonal presentation by a firm’s sales force for the

purpose of making sales and building customer relationships

Direct MarketingDirect Connections with carefully targeted individual

consumers to both obtain an immediate response and cultivating lasting customers relationships.

Marketing Communications Mix

Public Relations Building good relations with the company’s various

publics by obtaining favourable publicity, building a good corporate image and handling stories or events.

Sales PromotionShort-term incentives to encourage the

purchase or sale of a product or service

Most impact when coordinated with entire marketing mix.

Goals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

Goals and Tasks of Promotion

Informative Objective

Increase awareness

Explain how product works

Suggest new uses

Build company image

Goals and Tasks of Promotion

Persuasion Objective

Encourage brand switching

Change customers’ perception of product attributes

Influence buying decision

Persuade customers to call

Goals and Tasks of Promotion

Reminder Objective

Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

On Linehttp://www.tide.com

On Linehttp://www.tide.com

The AIDA Concept

Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.

AIDA and the Promotional Mix

AwarenessAwareness InterestInterest DesireDesire ActionAction

AdvertisingAdvertising Veryeffective

Veryeffective

Somewhateffective

Noteffective

PublicPublicRelationsRelations

Veryeffective

Veryeffective

Veryeffective

Noteffective

SalesSalesPromotionPromotion

Somewhateffective

Somewhateffective

Veryeffective

Somewhat effective

PersonalPersonalSellingSelling

Somewhateffective

Veryeffective

Veryeffective

Veryeffective

Product Life Cycle and thePromotional Mix

Light Advertising;

pre-introduction

publicity

Heavy use of Advertising;

PR forawareness;

sales promotion

for trial

AD/PRdecrease;

limited sales

promotion; personal selling for

distribution

Ads decrease;

sales promotion;

personal selling;

reminder & persuasive

Advertising’ PR, brand

loyalty;personal selling for

distribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sal

es (

$)S

ales

($)

TimeTime

Push and Pull Strategies

Push strategy: trade promotions and personal selling efforts push the product through the distribution channels.

Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.

Advertising

U.S. advertising spending exceeds $240 billion per year

Industry employs only 284,000

Ad budgets of some firms exceed over $2 billion per year—over $6 million per day!

Advertising Strategy:message strategy

Identify consumer benefits

Develop compelling creative concept (The Big Idea)

Appeals - meaningful credible & believable

Distinctively expressed

How to bring the message to Life: message execution

Choose style - how it is saidSlice of lifeFantasyMusical…

Set tone - humour - Sexual - Fear- other?

Select words - memorable and attention-getting

Format elements - copy headline - illustration

Selecting Advertising Media

Decide reach, frequency and impact.

Choose media type

Select specific media vehicles

Decide on media timing

Set timing pattern of ads

Advertising Evaluation

Communication effects

Sales effects

Evaluation difficult - especially salesSales vs. ad expenseExperiments

Sales-Promotion Objectives

ObjectivesMore short-term salesBuild long-term shareStimulate trialSwitch from

competitorsHold loyal customers Increase purchase

quantity

Consumer-Promotion Tools

Samples - trial amount of productCoupons - certificate to give buyer a

savingCash refund offers - reduction after

purchasePremiums - free or low-cost with

purchaseContests – Promotional events-chance to

win

Public Relations:potential activities

Press relationsPublic affairsLobbyingInvestor relationsDevelopment

Public Relations:major tools

Company news Speeches Special events Written materials Audiovisual production Corporate identity Public service activities Company web sites

Steps in Sales Force Management

Designing sales force strategy and structure

Recruiting and selecting

salespeople

Training sales people

Compensating salespeople

Supervising salespeople

Evaluating salespeople

Managing the Sales Force:sales-force structure

Organize by Territorydefines job - travel

By Productexpertise - overlap

Customer or Industry focus - one face

Complex structures

Managing the Sales Force:sales force size

One of the most productive assets

Also most expensiveSize impacts costsWorkload approach

Account classes (A-B)Sales calls (24-48)Compute size

Recruiting and Selecting Salespeople

Traits of the successful vary widely Enthusiasm, Persistence, Initiative,

Self-Confidence, Job Commitment.Selection procedures specific to

companiesTests -personal characteristics -

references - previous employment - interviewer’s views

Training Sales People

Training Goals

Learn company and assimilate culture

Technical information

Know customers and industry competitors

Average training period four months

Compensating Salespeople

Design to motivate and direct activitiesStraight salaryStraight commissionSalary plus bonusSalary & commissionSalary for stable

incomeVariable part for

results

Supervising Salespeople

Average face-to-face selling time 30%

Establish customer targets and call norms

Set time spent on prospecting

Annual call plan Time & duty analysis Salesforce

automation

Motivating Salespeople

Organizational ClimateOpportunitiesrewards - value

Sales Quotasachievablestretch goals

Incentivessales meetingsawards - contests

Evaluating Salespeople

Potential benefits of EvaluationExpectations clear Gather InformationHelpful feedbackMotivation

EvaluationComparison with PeersComparing with past salesQualitative Evaluation

ProspectingProspecting Salesperson Identifies Qualified Potential Customers.

Salesperson Identifies Qualified Potential Customers.

PreapproachPreapproachSalesperson Learns as Much as Possible About a Prospective

Customer Before Making a Sales Call.

Salesperson Learns as Much as Possible About a Prospective

Customer Before Making a Sales Call.

QualifyingQualifyingProcess of Identifying Good

Prospects and Screening Out Poor Ones.

Process of Identifying Good Prospects and Screening Out Poor

Ones.

Steps in the Selling Process

ApproachApproachSalesperson Meets the Buyer and

Gets the Relationship Off to a Good Start.

Salesperson Meets the Buyer and Gets the Relationship Off to a Good

Start.

PresentationPresentationSalesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.

Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.

ClosingClosing Salesperson Asks the Customer for an Order.

Salesperson Asks the Customer for an Order.

Handling ObjectionsHandling

ObjectionsSalesperson Seeks Out, Clarifies,

and Overcomes Customer Objections to Buying.

Salesperson Seeks Out, Clarifies, and Overcomes Customer

Objections to Buying.

Steps in the Selling Process

Follow-UpFollow-UpOccurs After the Sale and Ensures Customer Satisfaction and Repeat

Business.

Occurs After the Sale and Ensures Customer Satisfaction and Repeat

Business.