PROMOTION in an ORGANIZATION * * Promotion and the Promotion Mix
Promotion Mix -- The combination of promotional tools an organization uses; the traditional mix includes:
INTEGRATED MARKETING COMMUNICATION (IMC) * * Promotion and the Promotion Mix
Integrated Marketing Communication (IMC) -- Combines the promotional tools into one comprehensive strategy. IMC is used to:
Create a positive brand image.
Meet the needs of consumers.
Meet the strategic marketing and promotional goals of the firm.
STEPS in a PROMOTIONAL CAMPAIGN * * Promotion and the Promotion Mix
Identify a target market
Determine a promotional budget
Develop a unifying message
Implement the plan
Evaluate the plan
DEAR MR. POSTMAN… Steps in Launching a Direct-Mail Campaign * *
Plan: What should your mailing accomplish?
Get the Right List: The better the list, the better your chance of success.
LG1 Promotion and the Promotion Mix
Stand Out: Make your ad like no other.
Get Help: Contact a marketing firm with direct mail experience.
Follow Up: One mailing is not enough.
ADVERTISING in the FIRM * * Advertising: Informing, Persuading and Reminding
Advertising -- Paid, non-personal communication through various media by organizations and individuals who are in some way indentified in the message.
Major goals of advertising:
IMPACT of ADVERTISING * * Advertising: Informing, Persuading and Reminding
Total advertising expenditures exceed $294 billion yearly.
Consumers benefit because production costs of TV programs, radio programs, newspapers and magazines are paid for by advertisers.
Marketers choose ad media that will reach the target market.
MAJOR CATEGORIES of ADVERTISING c * * LG2 Advertising: Informing, Persuading and Reminding 16- Category What it is Retail From retail stores to consumers Trade From manufacturers to wholesalers and retailers B2B From manufacturers to other manufacturers Institutional Creates a desirable image for an organization Product Creates a desirable image for a product or service
MAJOR CATEGORIES of ADVERTISING (Continued) * * LG2 Advertising: Informing, Persuading and Reminding 16- Category What it is Advocacy Supports a particular view of an issue Comparative Compares competing products Interactive Customer-oriented ads that allows customers to choose information to receive Online Computer ads featured on different sites Mobile Ads that reach consumers on cell phones
ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS * * Advertising: Informing, Persuading and Reminding LG2 16- Rank Media Projected 2008 Spending % of Total Ad Spending 1 Direct Mail $63,732 21.6 2 Broadcast TV 48,300 16.4 3 Newspaper 42,147 14.3 4 Cable TV 21,718 7.4 5 Radio 18,635 6.3 6 Yellow Pages 14,705 5.0 7 Consumer Magazine 14,106 4.8 8 Internet 12,722 4.3 Other 58,311 19.8 Total 294,376 100.0
POPULAR ADVERTISING MEDIA * * Television Advertising
TV advertising is still the dominant media.
Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip them.
Product Placement -- Advertisers pay to put their products into TV shows and movies where the audience will see them.
INFOMERCIALS and ONLINE ADVERTISING * * Infomercials and Online Advertising
Infomercial -- A full length TV program devoted exclusively to promote a particular product .
Online ads are attempts to get potential customers to a website to learn about a product.
Interactive Promotion -- Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange.
GLOBAL ADVERTISING * * Global Advertising
Requires marketers to develop a single product and promotional strategy to implement worldwide.
Problems can arise in global markets with using one advertising campaign in all countries - especially bad translations.
PERSONAL SELLING * * Personal Selling: Providing Personal Attention
Personal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow-up service.
Salespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible.
PROSPECTING and QUALIFYING in B2B SELLING * * Steps in the Selling Process
Prospecting -- Researching potential buyers and choosing those most likely to buy.
Qualifying -- Making sure customers have a need for a product, the authority to buy and the willingness to listen to a sales message.
Prospect -- A customer who meets the qualifying criteria.
STEPS in the B2B SELLING PROCESS * * Steps in the Selling Process
Make a presentation
Close the sale
Trial Close -- A statement or question that moves the process toward the purchase.
BUY THIS! Successful Selling Strategies * *
Know your competition
Understand your customer’s business
Differentiate your product or service
Sell to the people most likely to buy
Put the right people in the right selling spots
LG3 Steps in the Selling Process 16-
WHOOPS! Sales Slip-Ups * *
Not feeling the customer’s pain
Making money is the only goal
Seeing sales as just a job
Getting upset during the presentation
Failing to properly prepare or over-preparing
Not being yourself
Neglecting the relationship
LG3 Steps in the Selling Process Source: Fortune Magazine. 16-
USING PUBLIC RELATIONS in PROMOTION * * Public Relations: Building Relationships
Public Relations (PR) -- Evaluates public attitudes, changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance.
3 steps of a good PR program:
Listen to the public
Change policies and procedures
Inform people you’re responsive to their needs
PUBLICITY * * Publicity: The Talking Arm of PR
Publicity -- Any information about an individual, product or organization that’s distributed to the public through the media and is not paid for or controlled by the seller.
Advantages of Publicity:
Reaches people who would not look at an advertisement
More believable than advertising
DISADVANTAGES of PUBLICITY * * Publicity: The Talking Arm of PR
No control over whether the media will use a story or when they may release it.
It can be good or bad.
Once a story has been run, it isn’t likely to run again.
SALES PROMOTIONS * *
Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
LG5 Sales Promotion: Giving Buyers Incentives
Categories of Sales Promotions:
B2B Sales Promotions
Consumer Sales Promotions
SOME KEY CONSUMER PROMOTIONS * *
LG5 Sales Promotion: Giving Buyers Incentives 16-
USING WORD-of-MOUTH PROMOTION * * Word of Mouth and Other Promotional Tools
Word-of-Mouth Promotion -- People tell others about products they have purchased.
Word-of-Mouth is important for products like:
Daycare and Eldercare
Car Repair Shops
EMERGING PROMOTIONAL TOOLS * * Viral Marketing
Viral Marketing -- Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions.
People who promote through viral marketing often receive SWAG which can include free tickets, shirts, and other merchandise.
BLOGS, PODCASTS, and E-MAILS * * Blogging, Podcasting and E-mail Promotions
Blog -- Short for web log; an online diary that looks like a webpage but is easier to create and update by posting text, photos, videos, or links.
Podcasting -- A way to distribute audio and video programs via the Internet.
Email promotions increase brand awareness among commercial suppliers.
PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES * * Managing the Promotion Mix: Putting it All Together
Push Strategy -- Producers use advertising, personal selling, sales promotion, and other tools to get their products stocked on shelves.
Pull Strategy -- Directs heavy advertising and sales promotions efforts towards consumers and gets the public to request their products from retailers.
Pick Strategy -- Refers to consumers who pick out their products from online outlets.