Elements of the PromotionMixAdvertisingIngredientsof thePromotionMixIngredientsof thePromotionMixPublic RelationsPersonal ...
The CommunicationProcessReceiverDecodingChannelEncodingSenderNoiseChannel
Goals and Tasks ofPromotionInforming RemindingPersuadingTargetAudience
AIDA and the Hierarchy ofEffectsAttention Interest Desire ActionAwarenessKnowledgeLikingPreferenceConvictionPurchase
When Elements of Promotion Are MostUsefulAdvertisingPersonalsellingSalespromotionPublicrelationsEither not effective or in...
Factors that Affect the PromotionMixPush–and–Pull StrategiesNature of the ProductStage in the ProductLife CycleTarget Mark...
Creating a PromotionPlanChoose Promotion MixDevelop Promotion BudgetSet Promotion ObjectivesIdentify Target MarketAnalyze ...
Criteria for Setting PromotionObjectivesPromotion objectives should:be measurable, concretebe based on sound research, wit...
Examples of PromotionObjectivesObjective: To RemindTo remind consumers that Peter Pan peanut butter is thecreamiest peanut...
Techniques for Setting PromotionBudgets• Arbitrary Allocation• All - You - Can - Afford• Competitive Parity• Percent of Sa...
Regulation ofPromotionSelf-Regulation• National Advertising Division (NAD)• National Advertising Review Board (NARB)Federa...
Effects ofAdvertisingAdvertising SpendingReturnonAdvertisingExpendituresIncreasing efficiencyas ad budget becomessufficien...
Major Types ofAdvertisingCorporate ImageAdvocacy AdvertisingTypesofAdvertisingTypesofAdvertisingPioneeringCompetitiveCompa...
Advertising Campaign DecisionProcessDetermine the campaign objectives.Make creative decisions. Make media decisions.Evalua...
Common AdvertisingAppealsProfitProfitHealthHealthLove or RomanceLove or RomanceFearFearAdmirationAdmirationConvenienceConv...
Executional Styles forAdvertisingMood orImageMusicalDemon-strationScientificReal/AnimatedProductSymbolsFantasyLifestyleSpo...
Methods Used to Evaluate AdvertisingCampaignsPretestsExamples:• Consumer jury tests• Portfolio or unfinished rough tests• ...
The Tools of PublicRelationsMajorToolsUsed ByPRProfessionalsMajorToolsUsed ByPRProfessionalsNew Product PublicityProduct P...
Types of Consumer & Sales PromotionGoalsType of buyer Desired results Sales promotion examplesLoyal customers Reinforce be...
Tools for Consumer SalesPromotionCouponsPremiumsFrequent Buyer ProgramsContests andSweepstakesSamplesPoint-of-PurchaseDisp...
Tools for Trade SalesPromotionTrade AllowancesPush MoneyTrainingFree MerchandiseStore DemonstrationsBusiness Meetings,Conv...
Advantages of PersonalSellingCost ControlCost ControlMessage ControlMessage ControlTargetedTargetedDetailedInformationDeta...
Advertising Versus PersonalSellingPersonal Selling is more important if...The product has a high value.It is a custom-made...
Differences Between Traditional & Relationship SellingTraditional Personal SellingSell products (goods and services)Focus ...
Steps in the SellingProcessBasicSteps intheSellingProcessBasicSteps intheSellingProcessGenerating Sales LeadsQualifying Sa...
Functions of SalesManagementMotivateSales ForceEvaluateSales ForceManageTurnoverTrain SalesForceDevelopCompen-sation PlanS...
Cost Determinants ofPrice01 2 3 4 5 6 7 8 9 1050100150200DollarsQuantityMCATCAVCAFC
Break-EvenAnalysisQuantity (units)Price($)Fixed CostsTotal RevenueTotal CostsProfitsLossesBreak Even
Steps in Setting the RightPrice$ $ $ $ $ $ $ $$ $ $ $ $ $ $ $Fine-Tune Base PriceChoose StrategyEstimate Demand, Costs,and...
Legal and Ethical Issues inPricingUnfair Trade PracticesKey Legaland EthicalIssuesRelated toPriceKey Legaland EthicalIssue...
CashDiscountQuantityDiscountFunctionalDiscountTrade LoadingEDLPSeasonalDiscountsPromotionalAllowancesRebatesDiscounts, All...
GeographicPricingBasing-PointFreight-AbsorptionZone PricingUniform DeliveredFOB OriginPricingTacticsBased onGeographyPrici...
Special PricingTacticsOdd-EvenPricingTwo-PartPricingBundlePricingBaitPricingPriceLiningFlexiblePricingProfessionalServices...
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Promo selling pricing

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Promo selling pricing

  1. 1. Elements of the PromotionMixAdvertisingIngredientsof thePromotionMixIngredientsof thePromotionMixPublic RelationsPersonal SellingSales Promotion
  2. 2. The CommunicationProcessReceiverDecodingChannelEncodingSenderNoiseChannel
  3. 3. Goals and Tasks ofPromotionInforming RemindingPersuadingTargetAudience
  4. 4. AIDA and the Hierarchy ofEffectsAttention Interest Desire ActionAwarenessKnowledgeLikingPreferenceConvictionPurchase
  5. 5. When Elements of Promotion Are MostUsefulAdvertisingPersonalsellingSalespromotionPublicrelationsEither not effective or inefficientVery effectiveSomewhat effectiveAwareness Knowledge Liking Preference ConvictionEffectivenessPurchase
  6. 6. Factors that Affect the PromotionMixPush–and–Pull StrategiesNature of the ProductStage in the ProductLife CycleTarget Market CharacteristicsType of Buying DecisionAvailable Funds$ $ $
  7. 7. Creating a PromotionPlanChoose Promotion MixDevelop Promotion BudgetSet Promotion ObjectivesIdentify Target MarketAnalyze the Marketplace
  8. 8. Criteria for Setting PromotionObjectivesPromotion objectives should:be measurable, concretebe based on sound research, with awell-defined target audiencebe realisticreinforce the overall marketing plan andrelate to specific marketing objectives
  9. 9. Examples of PromotionObjectivesObjective: To RemindTo remind consumers that Peter Pan peanut butter is thecreamiest peanut butter and is available at their nearest groceryand convenience storesObjective: To Inform (Awareness)To increase the top-of-mind awareness level for Peter Panpeanut butter from 16 percent to 24 percentObjective: To Persuade (Attitudinal)To increase the percentage of parents who feel that Peter Panpeanut butter is the best peanut butter for their children from22 percent to 35 percent
  10. 10. Techniques for Setting PromotionBudgets• Arbitrary Allocation• All - You - Can - Afford• Competitive Parity• Percent of Sales• Market Share• Objective and Task
  11. 11. Regulation ofPromotionSelf-Regulation• National Advertising Division (NAD)• National Advertising Review Board (NARB)Federal Regulation• Federal Trade Commission (FTC)
  12. 12. Effects ofAdvertisingAdvertising SpendingReturnonAdvertisingExpendituresIncreasing efficiencyas ad budget becomessufficientDiminishingreturnson additionalspending
  13. 13. Major Types ofAdvertisingCorporate ImageAdvocacy AdvertisingTypesofAdvertisingTypesofAdvertisingPioneeringCompetitiveComparativeProductAdvertisingInstitutionalAdvertising
  14. 14. Advertising Campaign DecisionProcessDetermine the campaign objectives.Make creative decisions. Make media decisions.Evaluate the campaign.
  15. 15. Common AdvertisingAppealsProfitProfitHealthHealthLove or RomanceLove or RomanceFearFearAdmirationAdmirationConvenienceConvenienceFun and PleasureFun and PleasureVanity and EgotismVanity and EgotismSave money, keep from losing moneySave money, keep from losing moneyBody-conscious, healthyBody-conscious, healthySell cosmetics and perfumesSell cosmetics and perfumesSocial embarrassment, growing old, losinghealth, powerSocial embarrassment, growing old, losinghealth, powerCelebrity endorsement effectiveCelebrity endorsement effectiveFast-food and microwave productsFast-food and microwave productsVacations, beer, amusement parksVacations, beer, amusement parksExpensive, conspicuous itemsExpensive, conspicuous items
  16. 16. Executional Styles forAdvertisingMood orImageMusicalDemon-strationScientificReal/AnimatedProductSymbolsFantasyLifestyleSpokes-person/TestimonialSlice-of-LifeHumorousCommonExecutionalStylesCommonExecutionalStyles
  17. 17. Methods Used to Evaluate AdvertisingCampaignsPretestsExamples:• Consumer jury tests• Portfolio or unfinished rough tests• Physiological testsPost-testsExamples:• Recognition tests• Recall tests• Attitude measures• Audience size measurement
  18. 18. The Tools of PublicRelationsMajorToolsUsed ByPRProfessionalsMajorToolsUsed ByPRProfessionalsNew Product PublicityProduct PlacementCustomer SatisfactionPhone LinesConsumer EducationEvent SponsorshipIssue SponsorshipWeb Sites
  19. 19. Types of Consumer & Sales PromotionGoalsType of buyer Desired results Sales promotion examplesLoyal customers Reinforce behavior, • Loyalty marketing programs,People who buy your increase consumption, such as frequent-buyer cardsproduct most or all change purchase timing or frequent-shopper clubsof the time • Bonus packs that give loyalconsumers an incentive tostock up or premiums offeredin return for proofs-of-purchaseCompetitor’s Break loyalty, persuade •Sampling to introduce yourcustomers to switch to your brand product’s superior qualitiesPeople who buy a compared to their brandcompetitor’s product • Sweepstakes, contests, ormost or all of the time premiums that create interestin the productBrand switchers Persuade to buy your • Any promotion that lowers thePeople who buy a brand more often price of the product, such asvariety of products coupons, price-off packages,in the category and bonus packs• Trade deals that help make theproduct more readily availablethan competing productsPrice buyers Appeal with low prices • Coupons, price-off packages,People who or supply added value refunds, or trade deals thatconsistently buy the that makes price less reduce the price of brand toleast expensive brand important match that of the brand thatwould have been purchasedSource: From Sales Promotion Essentials, 2E by Don. E. Schultz, William A. Robinson, and Lisa A. Petrison. Reprinted by permission of NTC Publishing Group, Lincolnwood, IL.
  20. 20. Tools for Consumer SalesPromotionCouponsPremiumsFrequent Buyer ProgramsContests andSweepstakesSamplesPoint-of-PurchaseDisplaysSixCategoriesofConsumerSalesPromotionsSixCategoriesofConsumerSalesPromotions
  21. 21. Tools for Trade SalesPromotionTrade AllowancesPush MoneyTrainingFree MerchandiseStore DemonstrationsBusiness Meetings,Conventions, Trade-ShowsSixCategoriesofTradeSalesPromotionsSixCategoriesofTradeSalesPromotions
  22. 22. Advantages of PersonalSellingCost ControlCost ControlMessage ControlMessage ControlTargetedTargetedDetailedInformationDetailedInformationClosing SalesClosing Sales
  23. 23. Advertising Versus PersonalSellingPersonal Selling is more important if...The product has a high value.It is a custom-made product.There are few customers.The product is technically complex.Customers are geographically concentrated.Advertising/Sales Promotion is more important if...The product has a low value.It is a standardized product.There are many customers.The product is simple to understand.Customers are geographically dispersed.
  24. 24. Differences Between Traditional & Relationship SellingTraditional Personal SellingSell products (goods and services)Focus on closing salesLimited sales planningSpend most contact time tellingcustomers about productConduct “product-specific” needsassessment“Lone-wolf” approach to the accountProposals and presentations basedon pricing and product featuresSales follow-up focused on productdeliveryRelationship SellingSell advice, assistance, and counselFocus on improving the customer’s bottom lineConsiders sales planning as top prioritySpend most contact time attempting to build aproblem-solving environment with the customerConduct discovery in the full scope of thecustomer’s operationsTeam approach to the accountProposals and presentations based on profitimpact and strategic benefits to the customerSales follow-up is long term, focused onlong-term relationship enhancementSource: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,”National Conference on Sales Management, Proceedings, March 1996.
  25. 25. Steps in the SellingProcessBasicSteps intheSellingProcessBasicSteps intheSellingProcessGenerating Sales LeadsQualifying Sales LeadsMaking the Sales ApproachMaking the SalesPresentationHandling ObjectionsClosing the SaleFollowing Up
  26. 26. Functions of SalesManagementMotivateSales ForceEvaluateSales ForceManageTurnoverTrain SalesForceDevelopCompen-sation PlanStructureSales ForceDetermineSales ForceSizeRecruit SalesForceSet SalesObjectivesMajor Tasks ofSalesManagementMajor Tasks ofSalesManagement
  27. 27. Cost Determinants ofPrice01 2 3 4 5 6 7 8 9 1050100150200DollarsQuantityMCATCAVCAFC
  28. 28. Break-EvenAnalysisQuantity (units)Price($)Fixed CostsTotal RevenueTotal CostsProfitsLossesBreak Even
  29. 29. Steps in Setting the RightPrice$ $ $ $ $ $ $ $$ $ $ $ $ $ $ $Fine-Tune Base PriceChoose StrategyEstimate Demand, Costs,and ProfitsEstablish Pricing GoalsRight Price
  30. 30. Legal and Ethical Issues inPricingUnfair Trade PracticesKey Legaland EthicalIssuesRelated toPriceKey Legaland EthicalIssuesRelated toPricePrice FixingPrice DiscriminationPredatory Pricing
  31. 31. CashDiscountQuantityDiscountFunctionalDiscountTrade LoadingEDLPSeasonalDiscountsPromotionalAllowancesRebatesDiscounts, Allowances, andRebatesPriceReductionsPriceReductions
  32. 32. GeographicPricingBasing-PointFreight-AbsorptionZone PricingUniform DeliveredFOB OriginPricingTacticsBased onGeographyPricingTacticsBased onGeography
  33. 33. Special PricingTacticsOdd-EvenPricingTwo-PartPricingBundlePricingBaitPricingPriceLiningFlexiblePricingProfessionalServicesLeaderPricingSinglePriceCommonSpecial PricingTacticsCommonSpecial PricingTactics

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