Busn 101 Chapter 16

1. Busn 101 Chapter 16 Effective Promotional Techniques

2. Goals • Define Promotion • Traditional tools in the Promotion Mix: • Advertising • Personal selling • Public Relations • Sales promotion • Define Advertising • Advantages and disadvantages of different advertising media • Steps for B2B and B2C selling process • Role of public relations department (including publicity) • Forms of sales promotion (including sampling) • Word of mouth, Viral marketing, Blogging, Podcasting • Guerrilla (not gorilla) marketing

3. Promotion • Define Promotion • An effort by marketers to inform and remind people in the target market about products and to persuade them to participate in an exchange • Promotion Mix • The combination of promotional tools an organization uses • IMC (Integrated Marketing Communication) • A technique that combines all the promotional tools into one comprehensive, unified promotional strategy

4. Personal Selling Advertising Product Sales Promotion Public Relations Traditional Promotional Mix

5. Identify the target market Define the objectives for each element in promotion mix Determine the promotional budget Develop a unifying message Implement the plan Evaluate effectiveness Steps In A Promotional Campaign

6. Objectives ofIntegrated Marketing • Build Brand Equity • Provide Information • Manage Demand & Build Sales • Differentiate Products • Influence Perceptions, Attitudes, & Buyer Behavior

7. Advertising • Paid nonpersonal communication through various media by organizations and individuals who are in some way indentified in the advertising message • Ads: • Inform us • http://www.youtube.com/watch?v=TVKcTiPWtMQ&feature=PlayList&p=9D48FA46A835E6FD&playnext_from=PL&index=5&playnext=2 • Sometimes they try to trick you • http://www.youtube.com/watch?v=Br3gdKguUx0 • Provide free TV, Radio, print media, e-mail, news

8. Advertising • Advertising media: Newspaper, television, radio, magazines, outdoor, direct mail, yellow-pages, Internet • The growing use of Infomercials • Moving to the Internet • Global advertising

9. Internet Ads and Promotion • High in search results (people are searching for item) • Paid ads at Google • E-mail ads • Banner ads • Pop-up banner ads • Yahoo e-mail, news sites have lots of ads • On-line coupons if you signup at web site: • Give you coupons • Send you e-mails • Watch TV, but first you must watch ad • YouTube ads • Easy to navigate web site • Videos at web site • Facebook

10. Advertising

11. Infomercials GrossingOver 1 Billion In Billions Source: Business 2.0, June 2005

12. U.S. Online Ad SpendingExample: http://news.yahoo.com/s/nm/20081111/bs_nm/us_gm_shares;_ylt=Ar3fSc.gwgrrVyixsrhkRw7Cw5R4 http://hk.youtube.com/results?search_query=TRUCKS+BULLDOZERS&search_type=&aq=f WWW.GOOGLE.COM Source: Investors.com; Advertising Age, 2005

13. Interactive Promotion • Promotional process that allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships • WWW.MREXCEL.COM

14. Advantages And Disadvantages Of Different Advertising Media

15. Selling • Personal Selling • The face-to-face presentation and promotion of goods and services • Helping others satisfy their wants and needs • About 10% of labor force does personal selling

16. Selling • Prospecting • Researching potential buyers and choosing those most likely to buy • Qualifying • In the selling process, making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message • Prospect • A person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message • Trial Close • A step in the selling process that consists of a question or statement that moves the selling process toward actual close

17. Steps in the Selling Process (B2B) • Prospect and Qualify (wants it & can buy) • Preapproach (know customer) • Approach (first impressions are important) • Make Presentation (match benefits of product to needs of customer) • Answer Objections (truth builds trust) • Close Sale • Follow Up (key part to building relationships)

18. Steps in the Selling Process (B2C) Follow up Close sale Make presentation Start Ask questions Approach

19. Steps Listen to the public. Change policies and procedures. Inform people that you’re being responsive to their needs. Publicity Free More Effective Than Advertising Believable No Control No Repetition Public Relations

20. B2B Trade Shows Portfolios Deals Catalogs Conventions B2C Coupons Cents-off Promotions Sampling Premiums Sweepstakes Contests Bonuses Catalogs Demonstrations Special Events Lotteries In-store Displays Sales Promotion Techniques

21. Coupon Statistics Average Face Value • 93 cents (2004); 46 cents (1990) Amount saved in 2004 • $2.9 billion Number of coupons redeemed in America in 2004 • 3 billion Coupons rank 2nd as purchase motivators (Largest: Free Samples) Source: St. Louis Post-Dispatch Everyday, July 2005

22. Sales Promotion • Internal & External • Sampling • Word-Of-Mouth • Viral Marketing • Blogging • Podcasting

23. Convince wholesalers and retailers to stock and sell Producer uses advertising, personal selling, sales promotion to convince the intermediaries Idea is to push the product through the distribution system to the stores Heavy advertisements and sales promotion efforts Directed at consumers so that they will request the products from retailers Products are pulled down through the distribution system Putting it all Together

24. Publicity • Any information about an individual, product, or organization that’s distributed to the public through media and that’s not paid for or controlled by the seller • “Talking part of sales promotion” • Greatest advantage is its believability

25. Sales Promotion • The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities • Internal: • Keep employees enthusiastic and train well • External • Coupons • Sampling • Contests

26. Sampling • A promotional tool in which a company lets consumers have a small sample of a product for no charge

27. Word-of-mouth promotion • A promotional tool that involves people telling other people about products they have purchased

28. Guerrilla (Not Gorilla) Marketing • Studying market for your product very carefully, then going after that market using nontraditional (even outrageous) promotional means • Red Bull: • Extreme Sports events • College parties • Contests and award ceremonies • Obama: • YouTube videos • E-mailed videos

29. Viral Marketing • The term now used to describe everything from paying people to say positive things on the internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific web sites • Does your viral video get 5 million hits at YouTube?

30. Blogging • Blog • On online diary (web log) that looks like a web page but is easier to create and update by posting text, photos, or links to other sites

31. Podcasting • A means of distributing audio and video programs via the internet that lets users subscribe to a number of files, also known as feeds, and then hear or view the material at the time they choose

32. Push Strategy • Promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise

33. Pull Strategy • Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from the retailers