Getting the promotions right is key to building a successful campaign - this presentation covers the basics of promotion tactics and strategy and is part of a series at the Bizface UK business forum

1. Dr. Stephanie J. Morgan Marketing Principles and Practice Marketing Mix 3 (Promotion) Download at www.bizface.co.uk

3. Key Promotional Mix Tools Advertising Personal Selling Direct Marketing Sales Promotion Internet & Online Marketing Publicity D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill 2

5. The communication process 4 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Noise Noise Receiver Encoded message Decoded message Transmission Source Feedback

8. Strong and weak theories of how advertising works 5 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Strong (AIDA ) Weak (ATR) Weaknesses? Do all customers desire? Where do they apply – low/high involvement? Desire (or conviction) Interest Awareness Action Reinforcement Trial Awareness

9. Developing advertising strategy 6 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Identify and understand target audience Marketing strategy Define advertising objectives Set the advertising budget Execute campaign Evaluate advertising effectiveness Message decisions Media decisions

10. Setting the Advertising Budget 11 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Percentage of Sales Affordability Matching Competition Objective & Task Stimulate Sales

12. How brand personality is used by consumers 14 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Self-expression – acts as a bridge Reassurance Communicates the brand’s functional characteristics Trustworthiness Brand personality

16. 3 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Types of selling The selling function There are many types of selling jobs Selling varies according to the nature of the selling task Order-takers Order creators Order-getters

17. 4 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Types of selling The selling function Order-takers Order creators Order-getters Inside order-takers Delivery salespeople Outside order-takers

18. 5 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Types of selling The selling function Order creators Missionary salespeople Order-takers Order-getters

19. 6 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Types of selling The selling function Order-getters Front-line salespeople Sales support salespeople New business salespeople Order-takers Order creators Organizational salespeople Consumer salespeople Technical support salespeople Merchandisers

20. 7 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Sales responsibilities Profitable sales Prospecting Providing service Maintaining customer records and information feedback Relationship management Self-management Handling complaints

21. 8 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill The selling process Preparation The opening Need and problem identification Presentation and demonstration Dealing with objections Closing the sale The follow-up

23. Key account relational development model Complex Simple Transactional Collaborative 11 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Nature of Customer Relationship Level of Involvement With Customers Synergistic-KAM Partnership-KAM Mid-KAM Early-KAM

24. Marketing strategy and the management of the sales-force 12 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Setting objectives Recruitment and selection Training Motivation and compensation Evaluation of salespeople Salesforce size Salesforce organization Personal selling objectives and strategies Marketing strategy Designing the salesforce Managing the salesforce Evaluation and control of total sales operation

25. The cycle of motivation 13 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Source: Churchill Jr, G.A., N.M. Ford & O. C. Walker Jr (1995) Sales Force Management: Planning, Implementation and Control Motivation Effort Performance Satisfaction Rewards

26. A marketing database 4 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Marketing database Product information Transactional information Geodemographic information Promotional information Customer and prospect information

27. Managing a direct marketing campaign 5 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Identify and understand target audience Marketing strategy Campaign objectives Media decisions Creative decisions Execute and evaluate campaign

28. A multiple-medium, multiple-stage campaign 9 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Direct response advertising Outbound telemarketing Salesforce Inbound telemarketing/direct/mail/e-mail Direct mail

29. Creative decisions 10 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Communication objectives Product benefits (and weaknesses) Target market analysis Development of the offer Communication of the message Action plan

30. 11 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Execute and evaluate the campaign Cost per enquiry Conversion rate from enquiry to sale Number of enquiries Sales rate (% purchasing) Number of contacts purchasing Total sales Campaign Performance Renewal rate Cost per contact Cost per sale Repeat purchase rate Response rate Average order value Enquiry rate

31. The effect of a sales promotion on sales 2 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Prior to promotion Promotion period Short-run post-promotion period Long-run post-promotion period Time Sales 1 = positive effect 2 = no effect 3 = negative effect 1 2 3

32. Consumer and trade promotions 3 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Consumer promotions Trade promotions Money off Free samples Prize promotions Loyalty cards Free goods Allowances Bonus packs Premiums Coupons Price discounts Competitions

34. Values transferred from sponsorship categories Healthy Young Energetic Fast Vibrant Masculine Sophisticated Elite Discriminating Up-market Serious Pretentious Young Accessible Friendly Current Innovative Commercial Admirable Concerned Caring Intelligent Explosive Caring Concerned Explosive Sports High-brow arts Mass arts Social causes Environmental programs 13 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill

35. Exhibition objectives Maintain relationship Transmit benefits Remedy service problems Stimulate extra sales Maintain image Demonstrate products Gather competitive intelligence Widen experience Contact prospects Determine needs Transmit benefits Commit to follow-up or sale Contact prospects Foster image building Demonstrate products Gather competitive intelligence Selling objectives 4 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Current customers Non-selling objectives Potential Customers (prospects)