* * chapter sixteen using effective promotions copyright © 2010 by the mcgraw-hill companies, inc....
TRANSCRIPT
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*Chapter Sixteen
Using Effective
Promotions
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
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*Profile
• Joined the Girl Scouts after developing campaigns for American Express and Campbell’s Soup.
• Her biggest challenge is to communicate with girls through channels unheard of when the organization was formed.
LAUREL RICHIEGirl Scouts of America
16-2
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*Promotion and the Promotion Mix
• Promotion Mix -- The combination of promotional tools an organization uses; the traditional mix includes:
PROMOTION in an ORGANIZATION
LG1
16-3
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*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.
INTEGRATED MARKETING COMMUNICATION (IMC)
LG1
16-4
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*Promotion and the Promotion Mix
1. Identify a target market
2. Define objectives
3. Determine a promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate the plan
STEPS in a PROMOTIONAL CAMPAIGN
LG1
16-5
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1. Plan: What should your mailing accomplish?
2. Get the Right List: The better the list, the better your chance of success.
DEAR MR. POSTMAN…Steps in Launching a Direct-Mail Campaign
LG1
Promotion and the Promotion Mix
3. Stand Out: Make your ad like no other.
4. Get Help: Contact a marketing firm with direct mail experience.
5. Follow Up: One mailing is not enough.
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*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:
- Inform
- Persuade
- Remind
ADVERTISING in the FIRM
LG2
16-7
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*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.
IMPACT of ADVERTISING
LG2
16-8
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*I’LL SPONSOR YOUThe Price of Sports Endorsements
LG2
Source: Conde Nast Portfolio.
Athlete SportAmount per
DealCompanies
Tiger Woods Golf $ Several MillionNike, Gatorade,
AT&T
Yao Ming Basketball $1 - $4 MillionMcDonald’s Visa,
Apple
Michael Phelps Swimming $1 - $4 Million AT&T, PowerBar
Lebron James Basketball $ Several MillionCoca-Cola,
Microsoft, Nike
Shawn Johnson Gymnastics$100,000 - $500,000
Adidas, McDonalds, Longines
Advertising: Informing, Persuading and Reminding
16-9
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*MAJOR CATEGORIES of
ADVERTISINGLG2
Advertising: Informing, Persuading and Reminding
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
16-10
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*MAJOR CATEGORIES of
ADVERTISING(Continued) LG2
Advertising: Informing, Persuading and Reminding
Category What it is
Advocacy Supports a particular view of an issue
Comparative Compares competing products
InteractiveCustomer-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
16-11
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*Advertising: Informing, Persuading and Reminding
ADVERTISING EXPENDITURE by MEDIA in $ MILLIONS
LG2
Rank MediaProjected 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 294,376 100.016-12
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• “Everybody doesn’t like something, but nobody doesn’t like ___________.”
• “We bring good things to life.”
• “It takes a licking and keeps on ticking.”
• “With a name like _________, it has to be good.”
• “Good to the last drop.”
• “Betcha can’t eat just one!”
• “Because you’re worth it.”
MATCH GAMEMatch the Company with the Slogan
LG2
Advertising: Informing, Persuading and Reminding
16-13
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*IT’S a DOG’S LIFE
Famous and Not-so-Famous Dogs in AdvertisingLG2
Pooch Company
Nipper RCA
Tige Buster Brown Shoes
Chihuahua Taco Bell
Spuds McKenzie Bud Light
McGruff The Crime Dog
Duke Bush’s Beans
Bullseye Target
Advertising: Informing, Persuading and Reminding
16-14
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*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.
POPULAR ADVERTISING MEDIA
LG2
16-15
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*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.
INFOMERCIALS and ONLINE ADVERTISING
LG2
• Interactive Promotion -- Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange.
16-16
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• Veg-O-Matic
• Ginsu Knives
• The Clapper
• Thigh Master
• George Foreman Grill
• Bowflex
INFOMERCIAL HALL of FAMEThe Biggest Hits Over the Past 40 Years
LG2
Infomercials
Source: Fortune Magazine, April 13, 2009.
16-17
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*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.
GLOBAL ADVERTISING
LG2
16-18
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• Marketers are gaining a competitive advantage by touting their efforts for the environment.
• Mars Drinks promotes its efforts to use less water, send less waste to landfills and help customers reduce their own energy waste.
• First Global Direct competes with large rivals because of their efforts to make operations more eco-friendly.
FINDING a COMPETITIVE ADVANTAGE in SUSTAINABILITY
Thinking Green
16-19
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*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.
PERSONAL SELLING
LG3
• Salespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible.
16-20
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*Steps in the Selling Process
• Prospecting -- Researching potential buyers and choosing those most likely to buy.
PROSPECTING and QUALIFYING in B2B SELLING
LG3
• 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.
16-21
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*Steps in the Selling Process
1. Pre-approach
2. Approach
3. Make a presentation
4. Answer objections
5. Close the sale• Trial Close -- A statement or question that
moves the process toward the purchase.
6. Follow up
STEPS in the B2B SELLING PROCESS
LG3
16-22
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• Know your competition
• Understand your customer’s business
• Differentiate your product or service
• Sell to the people most likely to buy
• Build relationships
• Put the right people in the right selling spots
BUY THIS!Successful Selling Strategies
LG3
Steps in the Selling Process
16-23
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• 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
WHOOPS!Sales Slip-Ups
LG3
Steps in the Selling Process
Source: Fortune Magazine.16-24
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*STEPS in the B2C
SELLING PROCESSLG3
Steps in the Selling Process
16-25
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*Progress Assessment
• What are the four traditional elements of the promotion mix?
• What are the three most important advertising media in order of dollars spent?
• What are the seven steps in the B2B selling process?
PROGRESS ASSESSMENT
16-26
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*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:
1. Listen to the public
2. Change policies and procedures
3. Inform people you’re responsive to their needs
USING PUBLIC RELATIONS in PROMOTION
LG4
16-27
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*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:
• Free
• Reaches people who would not look at an advertisement
• More believable than advertising
PUBLICITY
LG4
16-28
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*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.
DISADVANTAGES of PUBLICITY
LG4
16-29
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• Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
SALES PROMOTIONS
LG5
Sales Promotion: Giving Buyers Incentives
• Categories of Sales Promotions:
1. B2B Sales Promotions
2. Consumer Sales Promotions
16-30
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• Coupons
• Demonstrations
• Sampling
• Sweepstakes
• In-store Displays
• Contests
SOME KEY CONSUMER PROMOTIONS
LG5
Sales Promotion: Giving Buyers Incentives
16-31
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• Coupons, Inc
• EverSave
• RetailMeNot
• CouponCabin
CLIP THESEMost Visited U.S. Coupon Clearing Sites
LG5
Sales Promotion: Giving Buyers Incentives
16-32
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*Progress Assessment
• What are the three steps in setting up a public relations program?
• What are the sales promotion programs used to reach consumers?
• What sales promotion programs are used to reach businesses?
PROGRESS ASSESSMENT
16-33
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*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:
- Restaurants
- Daycare and Eldercare
- Car Repair Shops
- Hair Stylists
- Hotels
USING WORD-of-MOUTH PROMOTION
LG6
16-34
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*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.
EMERGING PROMOTIONAL TOOLS
LG6
16-35
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*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.
BLOGS, PODCASTS, and E-MAILSLG6
16-36
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• Amy Scherber of Amy’s Bread can’t afford to outsource her promotions, so she needs to get creative.
• She sends newspaper editors stories about her company and has an assortment of company shirts.
• She builds strong word-of-mouth by keeping in touch with her community members.
FRESH-BAKED PROMOTIONSpotlight on Small Business
16-37
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*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.
PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES
LG6
16-38
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• Agencies like Publicis Groupe knew they had to move forward into the digital age.
• Publicis bought Digitas, an interactive ad agency, and tried to blend the firms.
• Publicis created the Global Marketing Navigator and simplifies masses of data from clients and measures the program’s effectiveness.
GOING DIGITALReaching Beyond Our Borders
16-39
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*Progress Assessment
• What’s viral marketing?
• What are blogging and podcasting?
• Describe a push strategy, a pull strategy and the pick strategy.
PROGRESS ASSESSMENT
16-40