chapter 13 promotion strategy. communication process promotion objectives major promotion areas

CHAPTER 13CHAPTER 13PROMOTION STRATEGYPROMOTION 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

• Facebook

• Twitter

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

• E-mail

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