Elements of the PromotionMixAdvertisingIngredientsof thePromotionMixIngredientsof thePromotionMixPublic RelationsPersonal SellingSales Promotion
Goals and Tasks ofPromotionInforming RemindingPersuadingTargetAudience
AIDA and the Hierarchy ofEffectsAttention Interest Desire ActionAwarenessKnowledgeLikingPreferenceConvictionPurchase
When Elements of Promotion Are MostUsefulAdvertisingPersonalsellingSalespromotionPublicrelationsEither not effective or inefficientVery effectiveSomewhat effectiveAwareness Knowledge Liking Preference ConvictionEffectivenessPurchase
Factors that Affect the PromotionMixPush–and–Pull StrategiesNature of the ProductStage in the ProductLife CycleTarget Market CharacteristicsType of Buying DecisionAvailable Funds$ $ $
Creating a PromotionPlanChoose Promotion MixDevelop Promotion BudgetSet Promotion ObjectivesIdentify Target MarketAnalyze the Marketplace
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
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
Techniques for Setting PromotionBudgets• Arbitrary Allocation• All - You - Can - Afford• Competitive Parity• Percent of Sales• Market Share• Objective and Task
Regulation ofPromotionSelf-Regulation• National Advertising Division (NAD)• National Advertising Review Board (NARB)Federal Regulation• Federal Trade Commission (FTC)
Effects ofAdvertisingAdvertising SpendingReturnonAdvertisingExpendituresIncreasing efficiencyas ad budget becomessufficientDiminishingreturnson additionalspending
Major Types ofAdvertisingCorporate ImageAdvocacy AdvertisingTypesofAdvertisingTypesofAdvertisingPioneeringCompetitiveComparativeProductAdvertisingInstitutionalAdvertising
Advertising Campaign DecisionProcessDetermine the campaign objectives.Make creative decisions. Make media decisions.Evaluate the campaign.
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
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
The Tools of PublicRelationsMajorToolsUsed ByPRProfessionalsMajorToolsUsed ByPRProfessionalsNew Product PublicityProduct PlacementCustomer SatisfactionPhone LinesConsumer EducationEvent SponsorshipIssue SponsorshipWeb Sites
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.
Tools for Consumer SalesPromotionCouponsPremiumsFrequent Buyer ProgramsContests andSweepstakesSamplesPoint-of-PurchaseDisplaysSixCategoriesofConsumerSalesPromotionsSixCategoriesofConsumerSalesPromotions
Advantages of PersonalSellingCost ControlCost ControlMessage ControlMessage ControlTargetedTargetedDetailedInformationDetailedInformationClosing SalesClosing Sales
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.
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.
Steps in the SellingProcessBasicSteps intheSellingProcessBasicSteps intheSellingProcessGenerating Sales LeadsQualifying Sales LeadsMaking the Sales ApproachMaking the SalesPresentationHandling ObjectionsClosing the SaleFollowing Up
Special PricingTacticsOdd-EvenPricingTwo-PartPricingBundlePricingBaitPricingPriceLiningFlexiblePricingProfessionalServicesLeaderPricingSinglePriceCommonSpecial PricingTacticsCommonSpecial PricingTactics