ntroduction to Business 2 BUS 102 Erlan Bakiev, Ph. D. Zirve University BUS 102 Promotional Strategies What Is Promotion? Promotional Strategy Promotional Goals Product Variables Promotional Mix Direct Interaction Indirect Communication Promotional Goals InformPersuadeRemind Attract New Customers Attract New Customers Differentiate the Product Differentiate the Product Influence Decision Makers Influence Decision Makers Aid Distributors Aid Distributors Stabilize Sales Sell to Existing Customers Sell to Existing Customers Boost Name Recognition Boost Name Recognition Create Sales Leads Create Sales Leads The Promotional Mix ActivityReachTimingFlexibility Cost/ Exposure Personal Selling Advertising Direct Marketing Sales Promotion Public Relations Direct Interaction Limited Reach Indirect Interaction Large Reach Direct Interaction Large Reach Indirect Interaction Large Reach Indirect Interaction Large Reach Regular Contact Intermittent Tailored Message Standard Message Customized Message Standard Message Standard Message Relatively High Low to Moderate Relatively High Varies No Direct Cost Elements of Promotion Personal selling Personal selling Advertising Advertising Direct marketing Direct marketing Sales promotion Sales promotion Public relations Public relations Product Variables ComplexityComplexity PricePrice FamiliarityFamiliarity Life Cycle Advertising Direct Marketing Personal Selling Sales Promotion Public Relations Market Variables Target Market Market Strategy Clustered Dispersed Personal Selling Personal Selling Product Advertising Product Advertising Intermediaries Customers Push Strategy Push Strategy Pull Strategy Pull Strategy Critical Thinking 1.Why should a company such as McDonalds, which is already well-known to virtually all consumers, continue to spend heavily on advertising? 2.Why does an entirely new sort of product need a different promotional strategy than a well-known product? 3.Would it be wise for a manufacturer that is new to a particular industry (and unknown within it) to invest most of its promotional resources in a pull strategy? Why or why not? Personal Selling Customer-Oriented Marketing Customer-Oriented Marketing Partnerships with Customers Partnerships with Customers Types of Sales Personnel Order Getters Sales Support Order Takers High Low CreativeSelling Low High OrderProcessing Support Functions Missionary Sales Missionary Sales Technical Sales Technical Sales Trade Sales Trade Sales Personal Selling Process Prospecting 1 Preparing 2 Approaching 3 Presenting 4 Handling Objections Handling Objections 5 Closing 6 Following Up 7 Critical Thinking 1.How should a salesperson take the time to qualify sales leads? 2.Why is the canned approach inadequate for may selling situations? 3.Why might some salespeople be reluctant to come right out and ask for an order? Product Awareness Product Image Consumer Demand Advertising and Direct Marketing Types of Advertising Product Institutional National and Local Word of Mouth Competitive Advertising, Comparative Advertising Green Marketing, Corporate or Advocacy Advertising Nationwide Coverage, Cooperative Advertising Repeat Customers, Buzz Marketing Advertising Appeals Logical Emotional Celebrity Sexual Target Market Audience Product Service Advertising Media Media Plan Media Mix Major Advertising Media NewspapersTelevision Direct Mail Internet Magazines Radio Developments inMarketing Legitimate Marketers Legitimate Marketers Permission Marketing Permission Marketing Opt-In Choices Opt-In Choices SPAM Marketers SPAM Marketers Harvested Addresses Harvested Addresses Address Guessing Address Guessing CAN-SPAM Act of 2003 Developments in Online Media Display Ads Search Engine Ads Blog Ads Critical Thinking 1.Should Zirve University advertise to attract new students? Why or why not? 2.Why have so many companies used celebrities in their ads? 3.Why has search engine advertising become such a popular way to reach audiences? Sales Promotion ConsumerPromotionConsumerPromotionTradePromotionTradePromotion Consumer Sales Promotions Coupons Rebates Point-of-Purchase Special-Event Advertising Samples Premiums Cross-Promotions Specialty Advertising Trade Sales Promotion Trade Allowances Display Premiums Dealer Contests Travel Bonus Programs Public Relations News Conferences News Releases Community Relations Press Relations Investor Relations Government Affairs Product Publicity Integrated Marketing Communications Prentice Hall, 2007 IMCIMCPublicRelationsPersonalSelling ProductAdvertisingDirectMarketing SalesPromotion Effectiveness Consistency Impact Clarity Critical Thinking 1.How can sales promotion reduce the uncertainty that buyers might feel about trying an unfamiliar product? 2.Why are press relations so critical to the launch of many new products? 3.Why does the integrated marketing communication philosophy place so much importance on delivering a consistent message through all communication channels?