promotions 2010
TRANSCRIPT
Promotions
Managing Integrated Marketing Communications (Chapter 17)
Managing Mass Communications, Sales Promotions & Personal Selling (Chapter 18)
Designing and Managing Integrated Marketing Communications
• What is the role of marketing communications?
• How do marketing communications work?
• What are the major steps in developing effective communications?
• What is the communications mix and how should it be set?
What are Marketing Communications?
Marketing communications are the means by which firms attempt to inform, persuade, and remind
consumers, directly or indirectly, about the products and brands they sell.
Modes of Marketing Communications
• Advertising• Events and experiences• Sales promotion• Public relations and publicity
• Direct & Interactive marketing• Word-of-mouth marketing• Personal selling
Communication Tools
Advertising• Print and broadcast ads• Packaging inserts• Motion pictures• Brochures and booklets• Posters• Billboards• POP displays• Logos• Videotapes
Sales Promotion• Contests, games, sweepstakes• Premiums• Sampling• Trade shows, exhibits• Coupons• Rebates• Entertainment• Continuity programs
Communication Tools
Events/ Experiences• Sports• Entertainment• Festivals• Arts• Causes• Factory tours• Company museums• Street activities
Public Relations• Press kits• Speeches• Seminars• Annual reports• Charitable donations• Publications• Community relations• Lobbying• Identity media• Company magazine
Communication Tools
Personal Selling• Sales presentations• Sales meetings• Incentive programs• Samples• Fairs and trade shows
• Word of Mouth Marketing• Person-to-person• Chat rooms• Blogs
Direct Marketing• Catalogs• Mailings• Telemarketing• Electronic shopping• TV shopping• Fax mail• E-mail• Voice mail• Blogs• Websites
Elements in the Communications Process
Response Hierarchy Models
Steps in Developing Effective Communication
• Identify Target Audience• Determine Objectives• Design Communications• Select Channels• Establish Budget• Decide on media mix• Measure Results• Manage Integrated Marketing Communication
Characteristics of The Marketing Communications Mix
Advertising• Pervasiveness• Amplified expressiveness• Impersonality
Sales Promotion• Communication• Incentive• Invitation
Characteristics of the Marketing Communications Mix
Public Relations and Publicity
• High credibility• Ability to catch buyers off
guard
Events and Experiences• Relevant• Involving• Implicit
Characteristics of the Marketing Communications Mix
Direct Marketing• Customized• Up-to-date• Interactive
Personal Selling• Personal interaction• Cultivation• Response
Word-of-Mouth Marketing• Credible• Personal• Timely
Factors in Setting Communications Mix
• Type of product market• Buyer readiness stage• Product life cycle stage
Advertising
Advertising
Any paid form of nonpersonal presentationand promotion of ideas, goods, orservices by an identified sponsor.
The Five M’s of Advertising
• Mission• Money• Message• Media• Measurement
Advertising Objectives
• Informative advertising• Persuasive advertising• Reminder advertising• Reinforcement advertising
Factors to Consider in Setting an Advertising Budget
• Stage in the product life cycle• Market share and consumer base• Competition and clutter• Advertising frequency• Product substitutability
Developing the Advertising Campaign
• Message generation and evaluation• Creative development and execution• Social responsibility review
Creative Brief
• Positioning statement• Key message• Target market• Objectives
• Key brand benefits• Brand promise• Evidence of promise• Media
TelevisionAdvantages
• Reaches broad spectrum of consumers
• Low cost per exposure• Ability to demonstrate product
use• Ability to portray image and
brand personality
Disadvantages• Brief • Clutter• High cost of production• High cost of placement• Lack of attention by viewers
Print Ads
Advantages• Detailed product information• Ability to communicate user
imagery• Flexibility• Ability to segment
Disadvantages• Passive medium• Clutter• Unable to demonstrate product
use
Print Ad Evaluation Criteria
• Is the message clear at a glance?• Is the benefit in the headline?• Des the illustration support the headline?• Does the first line of the copy support or explain the
headline and illustration?• Is the ad easy to read and follow?• Is the product easily identified?• Is the brand or sponsor clearly identified?
Media Selection
• Reach (R) •No of people/household exposed to a particular media schedule atleast once during a specified period
• Frequency•The number of times within the specific period an average person / household is exposed to the message
• Impact•Qualitative value of an exposure through a given medium
• Total No of Exposures (E)•E= R*F (Gross rating points)•GRP: one exposure to 1% of the target population•80% of homes with freq 3- 240 GRP
Choosing Among Major Media Types
• Target audience and media habits• Product characteristics• Message characteristics• Cost
Major Media Types
• Newspapers• Television• Direct mail• Radio• Magazines
• Outdoor• Yellow pages• Newsletters• Brochures• Telephone• Internet
Place Advertising
• Billboards• Public spaces• Product placement• Point-of-purchase
Measures of Audience Size
• Circulation• Audience• Effective audience• Effective ad-exposed audience
Factors Affecting Timing Patterns
• Buyer turnover• Purchase frequency• Forgetting rate
Media Schedule Patterns
• Continuity• Concentration• Flighting• Pulsing
Evaluating Advertising Effectiveness
• Communication Effect Research– Consumer feedback method– Portfolio tests– Laboratory tests
• Sales-Effect Research
Sales Promotion
Sales Promotion
Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
Sales Promotion Tactics
Consumer-directed• Samples• Coupons• Cash refund offers• Price offs• Premiums• Prizes• Patronage rewards• Free trials• Tie-in promotions
Trade Sales Force-directed• Price offs• Allowances• Free goods• Sales contests• Trade shows• Specialty advertising
Using Sales Promotions
• Establish objectives
• Select tools
• Develop program
• Pretest
• Implement and control
• Evaluate results
Why Sponsor Events?
• To identify with a particular target market or life style
• To increase brand awareness
• To create or reinforce consumer perceptions of key brand image associations
• To enhance corporate image
• To create experiences and evoke feelings
• To express commitment to community
• To entertain key clients or reward employees
• To permit merchandising or promotional opportunities
Using Sponsored Events
• Establish objectives• Choose event opportunities• Design program• Implement and control• Measure effectiveness
Ideal Events
• Audience closely matches target market
• Event generates media attention
• Event is unique with few sponsors
• Event lends itself to ancillary activities
• Event reflects or enhances brand image of sponsor
Public Relations Functions
• Press relations• Product publicity• Corporate communications• Lobbying• Counseling
Marketing Public Relations Functions
• Assist in product launches
• Assist in repositioning mature products
• Build interest in a product category
• Influence specific target groups
• Defend products
• Build corporate image
Major Tools in Marketing PR
• Publications• Events• Sponsorships• News• Speeches• Public Service Activities• Identity Media
Steps in Marketing PR
• Establish objectives
• Choose messages
• Choose vehicles
• Implement and control
• Measure effectiveness
Direct Marketing
What is Direct Marketing?
Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to
customers without using market middlemen.
Direct Marketing
• Direct Mail• Catalog marketing• Interactive Marketing• Personal Selling
Types of Sales Representatives
• Deliverer• Order taker• Missionary• Technician• Demand creator• Solution vendor
Sales Tasks
• Prospecting• Targeting• Communicating• Selling• Servicing• Information gathering• Allocating
Managing the sales force
• Recruiting, selecting• Training• Supervising• Motivating • Evaluating
Principles of Personal Selling (SPIN)
• Situation questions• Problem questions• Implication questions• Need-payoff questions
Steps in Effective Selling
• Prospecting/Qualifying• Preapproach• Approach• Presentation• Overcoming objections• Closing• Follow-up
Prospecting FunnelKey Definitions
• Leads are names of possible clients that managers generate from databases.
• Inquiries are customer-initiated business contacts with a supplier firm.
• Prospects are leads and inquiries that the supplier firm has qualified as having significant sales and profit potential.
Prospecting Funnel
Loyal and Profitable Customer Base
Target Market Segments
Leads
Inquiries
Prospects
New Customers
Established Accounts
Prospecting FunnelIntensive Growth Strategies
Current NewOfferings Offerings
CurrentMarkets
NewMarkets
(Based on Ansoff 1957)
MarketPenetration
ProductDevelopment
MarketDevelopment Diversification
Transactional, Consultative, and Enterprise Selling
• Transactional Selling focuses on gaining the immediate order as quickly as possible.
• Consultative Selling entails gaining an in-depth understanding of customer requirements and operations, contributing analytical expertise to resolve pressing problems, and becoming a long-term, value-adding resource.
• Enterprise Selling requires senior managers to convincingly elaborate the benefits of combining and sharing complementary competencies andcapabilities across firms to form a strategic alliance.
(Rackham and DeVincentis 1999)(Rackham and DeVincentis 1999)
Transactional Selling1) 1) Call Preparation and Planning2) Opening (Complement, mystify, intrigue buyer; Opening
Statement)3) Selling Benefits (personalise)4) Handling Objections5) Managing the Presentation6) Closing
Gain the order as quickly as possible
Consultative SellingThe SPIN Selling Approach
1) Preliminaries2) Investigating3) Demonstrating Capabilities4) Obtaining Commitment
SR a long term trusted value added resource
(Rackham 1988)(Rackham 1988)
Consultative Selling
SPIN sequence of questions:1) Situation Questions -- data gathering questions about facts and
background.2) Problem Questions -- explore problems, difficulties, and
dissatisfaction areas which may be exploited.3) Implication Questions -- examine the consequences of customer
problems.4) Need-Payoff Questions -- get the customer to tell you the benefits
your product could offer.The purpose of questions in the larger sale is to uncover Implied Needs and to develop them into Explicit Needs.
(Rackham 1988)(Rackham 1988)
Types of Sales Commitments:1) Orders -- Where the customer makes a firm commitment to buy2) Advances -- Where an event takes place, either in the call or after
it, that moves the sale forward toward a decision3) Continuations -- Where the sale will continue but where no
specific action has been agreed upon by the customer to move it forward
4) No-Sales -- Where the customer actively refuses a commitment
Consultative SellingObtaining Commitment
(Rackham 1988)(Rackham 1988)
Thank You