promoting a personal service business - wa...

+

Promoting a Personal Service Business

+Last week

n  What is marketing? More than just advertising!

n  Current situation and SWOT analysis

n  Who is your target market?

n  The marketing mix (4Ps) n  Product – what services and products will you offer?

n  Price – at what price?

n  Distribution – where will your salon(s) be located?

n  Promotion – how will you promote your business or a new service?

2

+This week

n Recap on the Promotional Mix

n Plan a promotional campaign

n Implement a promotional campaign and marketing strategies/tactics

n Evaluate marketing performance

3

+The Promotional Mix

4

+What is promotion?

Communication by marketers/business owners that informs, persuades and

reminds potential clients of your services and products in order to

influence their purchasing/usage, their opinion or get some type of response

from them.

5

+Promotion mix/tools

PROMOTION

Advertising Public

Relations

Sales Promotion

Direct Marketing/

Digital

Personal Selling

Viral/Buzz Sponsorship SMS Website/

Blogs Experiential

/Event

+Planning a Promotional Campaign

7

+ Brand level marketing

n  Most marketing communications occurs at the brand level.

n  A well known and respected brand is an invaluable asset.

n  A successful brand can create barriers to entry for competitors.

n  This is the key means for differentiating one company’s offering from competitive brands.

+Campaign

n  Your promotional activities should be coordinated into a CAMPAIGN

n  You may aim the campaign at different groups of customers

n  You may have different campaigns running in different locations e.g. different salons

n  Begins with a CAMPAIGN OBJECTIVE n  To launch a new service successfully e.g. Acrylic nails n  To attract a different group of customers e.g. Men

n  Next work out the BUYING MOTIVE – what motivates this purchase? E.g. Adding nail services to the salon n  Convenience of all of your beauty needs in one place n  Save time, have a manicure/pedicure while your colour sets n  Get the same quality of service for your nails as your hair/body

9

+Campaign theme

n  A central idea for your campaign

n  The promotional appeal dressed up in a distinctive, attention-getting form

n  It expresses your service’s benefits

n  Sometimes in the form of a slogan e.g. “Oh! What a feeling!” or “The Spirit of Australia”

EXERCISE: What are some possible themes/slogans for our nail services campaign?

10

+Setting your promotion budget

Four common methods used to set the total budget for promotions:

1.  All available funds (what’s affordable)

2.  Percentage-of-sales

3.  Matching the competition – do they know what they’re doing?

4.  Task or objective - set a specific objective and then set your budget e.g. set up a salon in a new suburb, how much will it cost for each item e.g. staff for personal selling, advertising in the local newspaper etc. (much harder for small businesses to do this)

+Promotion legislation

n  Trade Practices Act n  Deceptive and misleading advertising

n  Certain marketing schemes e.g. multilevel/pyramid

n  Offensive/discriminatory advertising

n  Media and Communications Authority n  Do not call register

n  Industry bodies e.g. Advertising Standards Bureau

n  Specific rules by media

12

+Integrated Marketing Communications (IMC)

n  Each promotional mix element (advertising, sales promotions etc.) must be carefully coordinated – this is called INTEGRATED MARKETING COMMUNICATION

n  IMC: The process of planning, creation, integration, and implementation of diverse forms of marketing communications that are delivered over time to a brand’s targeted customers and prospects.

n  If a business uses different touch points it doesn’t mean that they’re sending different messages.

One Look • One Feel • One Voice

+ Different target markets means…

n  Different Advertising

n  Different Sales Promotions

n  Different In-store Promotions

n  Different Website Offers

+ Steps in developing IMC 1.  Identifying the target audience – who?

2.  Determine response sought – what do we want that audience to do or think? – based on the Buyer Readiness Stages •  Awareness (Advertising, PR) •  Knowledge (Advertising, experiential marketing, PR) •  Liking (Advertising, sponsorship, viral) •  Preference (Sales Promotion, Personal Selling) •  Conviction (Sales Promotion) •  Purchase (Sales Promotion, POP Advertising, in-store

displays)

3.  Selecting a message that we wish to send

4.  Selecting media that we wish to use

5.  Selecting a message source e.g. trusted/credible, celebrity

6.  Collecting feedback – how much impact did we have? did it result in sales or leads

+

Message Content

n Rational appeals, emotional appeals (fear, humour), Moral appeals (fear, guilt) n  Awareness: rational appeals n  Liking: fun, fantasy, feeling

Message Structure

n Draw conclusions or leave that to the audience?

n Present strongest arguments first or last?

Message Format

n Headline, copy, illustration, colour

Selecting a message

+ Buyer readiness stage: Awareness

+ Rational appeal

+ Emotional appeal

+ Moral appeal

+ Message format

Headline

Illustration

Copy

Sub-headings

+Implementing promotions

22

+

Promotion

Advertising

Public Relations

Personal Selling

Sales Promotion

Direct Marketing

/Digital

Traditional promotion mix

+ New IMC tools

PROMOTION

Advertising Public

Relations

Sales Promotion

Direct Marketing/

Digital

Personal Selling

Viral/Buzz Sponsorship SMS Social

Media/ Blogs

Experiential /Event

+ Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

n  Set objective: inform, persuade or remind

n  Set the advertising budget

n  How to execute your ad message

n  Select your media Advertising

+Message execution

26

Slice-of-life One or more people using the product in an everyday setting

Lifestyle Shows how a product fits in with a lifestyle

Fantasy Creates a fantasy around the product or its use

Mood or image Builds a mood or image around the product, such as beauty, love or serenity

Musical Shows one or more people or cartoon characters singing a song about the product

Personality symbol Creates a character that represents the product

Technical expertise Shows the company’s expertise in making the product

Scientific evidence Presents survey or scientific evidence that the brand is better or better liked than one or more other brands

Testimonial evidence Features a highly believable or likeable source endorsing the product

27

http://www.youtube.com/embed/sPM7gvzonqY

EXERCISE: Which type of execution is used here?

+

Media Attributes When to Use

Newspaper §  Mass audience §  Excellent at reaching

local market §  Short lead time §  Current §  Short life span

§  Local retail §  Target specific

geographic market §  Temporary offer §  Brand appearance not

important §  Quick distribution of

information needed

Choose your media

+


Magazines §  Segmented audience §  Long life span; §  Pass-along readership §  Excellent reproduction §  Long lead times §  Not frequent

§  Information intensive product

§  Rely on‘look’ to create image

§  Desire transfer of image from editorial content to product

Television §  Combination of sight & sound allows more complex messages to be delivered

§  Short duration & ads often ignored

§  Cost efficient §  Market coverage flexibility

§  Want to build brand awareness

§  Require product demo §  Want to use peripheral cues §  Have adequate financial

resources

Choose your media

+


Radio §  Immediate delivery §  Short duration §  Good for reaching local

market §  No visuals = eliminating

complex messages/demos §  Mobile - able to reach TA

anywhere

§  Want to stimulate impulse purchase

§  Reminder advertising §  Want to advertise offerings

that change frequently §  Product is simple to

understand §  Low advertising budget

Outdoor §  Excellent reach potential §  Offers exposure near/at point

of purchase §  Fleeting message delivery

§  Want to create traffic for local business

§  Segmenting audience based on geography

§  Want to reach mass community audience

Choose your media

+ Building good relations with the company’s various publics (shareholders, consumers, employees, suppliers etc.) by obtaining favourable publicity, building up a good corporate image and handling or heading off unfavourable rumours, stories or events.

n  Tools:

n  News

n  Speeches

n  Special events

n  Written materials

n  Audiovisual materials

n  Corporate identity materials

n  Community service activities

Public Relations

+ All the marketing activities that attempt to promote immediate sales of a product – creates urgency! n  Tools:

n  Samples n  Coupons n  Contests/competitions n  Refunds n  Price-packs n  Loyalty programs Sales Promotions

+Purpose of Sales Promotions

n  Use sales promotions to: n  attract new triers

n  reward brand-loyal customers and thereby retain them

n  reduce the time between purchases

n  turn light users into medium or heavy users

n  lure consumers away from competitors

n  get rid of an old/mature product or service

n  The aim might also be to regain past purchasers who have stopped using your services.

33

1.  Samples

2.  Redeemable coupons

3.  Cash-back offers

4.  Cents-off deals or price packs

5.  Premium offers – give something for free

6.  Patronage rewards – reward points

7.  Point-of-purchase (POP) promotions

8.  Contests and games of chance (sweepstakes) and skill (contests)

Tools for Sales Promotions

9/04/13 Confidential

35

+Group coupon deals

36

The Iconic vs

http://www.bloomberg.com/video/82832894-cupcakes-offer-on-groupon-

turns-into-nightmare.html

+ Personal Selling involves two-way, personal communication between salespeople and individual customers.

n  Can be more effective than advertising due to two-way communication!

Personal Selling

+

n  The sales-force serves as a critical link between your business and your customers

n  The sales-force represents the business to the customers

n  The sales-force represents the customers to the business

n  Sales people are concerned with producing sales but should also be concerned with customer satisfaction and profit

The role of sales people

+The personal selling process

Prospecting and qualifying Identify qualified potential customers

Pre-approach Learn as much as possible about the prospective customer

Approach Meet and greet the customer

Presentation and demonstration

Tell the product story; sell the product benefits

Handling objections Clarifies and overcomes customer objections to buying

Closing Ask for the order

Follow-up To build customer satisfaction and repeat business

+

A sales practice that involves building, maintaining and enhancing interactions with

customers in order to develop long-term satisfaction through mutually beneficial

partnerships.

Relationship selling

+Relationship vs traditional selling

Traditional personal selling •  Sell products/services •  Focus on closing sales •  Limited sales planning •  Discuss product •  Assess ‘product-specific’

needs •  ‘Lone wolf’ approach •  Pricing/product focus •  Short-term sales follow-up

Relationship selling •  Sell advice, assistance, counsel •  Focus on customer’s bottom line •  Sales planning is top priority •  Build problem-solving

environment •  Conduct discovery in scope of

operations •  Team approach •  Profit impact and strategic

benefit focus •  Long-term sales follow-up

+

Exercise:

How can you and your “sales force” build relationships with your clients?

Relationship selling

+ Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. Digital marketing entails interaction with known customers and others in the marketing channel, on a one-to-one basis, often in real time, to maintain value-laden relationships and to generate a measurable response and/or transactions using electronic network tools and technologies.

Direct & Digital Marketing

+

1.  Direct Print and Reproduction •  this involves mail-outs of letters, product lists, samples

and paper-based and digital catalogues to a list or a known database of customers, or to a targeted group that the marketer wishes to convert to a database entry.

2.  Direct Mail •  Printed materials sent by mail and conveying offers to

consumers, whether targeted to the recipient by name, or to the business or household by a broader targeting method

3.  Catalogues •  A printed listing of products, often featuring high

quality reproduction of the items on sale

Direct and online tools and techniques

+

4.  Direct Response television, radio and print marketing

•  Use of mass promotion media combined with a direct response offer, usually involving telemarketing

5.  Telemarketing •  The use of telephone operators in a variety of ways to attract

new customers, to contact existing customers to ascertain satisfaction levels, or to take orders

6.  Telesales •  Routine order taking by telephone operators


+

7.  Electronic Dispensing and Kiosks •  Machines that dispense products (food) and

services (ticket), usually by inserting cash or stored value cash

8.  Direct Selling •  Selling directly to consumers or to businesses rather

than using reseller, such as agent or retailer

9.  Electronic Shopping •  Purchasing via an electronic bulletin board, network

or via interactive cable television


+Website

+

Hits

Visits

Origin

Page Views

Location

Online performance measurement

+Type of non traditional marketing

1.  Viral marketing (1996)

2.  Blogs (1995)

3.  Brand pushers – paid actors

4.  Overt celebrity marketing/sponsorships

5.  Product placements

6.  Marketing inside pop and rap music

7.  Cross promotions (control through cooperation) – e.g. magazines with cosmetic giveaways

8.  Place based promotions – communicating in audience captive environments such as schools, hospitals, airports e.g. – communications/adverts on meal trays in hospitals, napkins on airlines, ads on airline videos

9.  Sponsorships – celebrity seeding, gifting the talent control through patronage (not overt)

+ New Communications: Viral

n Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence.

n Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, to millions.

n WOM/brand pushers or can be via an electronic platform (SMS, email)

+Blendtec

Will it blend?

http://www.youtube.com/watch?annotation_id=annotation_401075&feature=iv&src_vid=fLreo24

WYeQ&v=_S8sxpK4_iA

51

+

n  Should capture the imagination – be intriguing or fun

n  Should be attached to a product that is easy to use of highly visible

n  Should be well targeted

n  Should be associated with a credible source

n  Should combine technologies

Viral communications

+Critique viral communications

n  Incurs little expense as it harnesses personal recommendation

n The act of passing on the referral message is voluntary rather than paid testimonial or mass ad – so more favourably received

n The message is passed to friend, family members and work colleagues that have similar interests to more likely to be interested in the message

n Limited control over receipt

n Measurement challenges

54

What every car salesman dreads!

http://www.youtube.com/watch?v=Q5mHPo2yDG8

+Blogging

n Blogs can be used as part of an integrated communication strategy to enhance and complement the rest of an organisation’s communications activities.

n Blogs need to be regularly updated – daily or several times a week – and tend to be produced outside the corporate marketing loop.

+ Blogging

n Blogs provide a bottom-up, grassroots method of sharing information about organisations through the web.

n Build buzz and positive word of mouth promotion for the company and/or its products and services

n Spark informal conversations about the organisation and/or its products and services

n Offer an outlet for news and information not important enough, or even suitable for a press release, but still worthy of being communicated

+Product placement

n  Product placement

n  Celebrity product placement

n  Marketing in rap and pop music: n  Run DMC song ‘My Adidas’

n  Mercedes 112 song mentions

n  Lexus 48 song mentions

n  Gucci 47 song mentions

n  Cadillac 47 song mentions

n  Burberry (42 mentions)

+Have you heard of Brand Pushers?

n  Hired novice actors who approach unsuspecting people in real life situations and slip them commercial message

n  Sony Ericsson – used ‘fake tourists’ sent to major tourist attractions to show new T68i phone with camera

n  Music Industry – cool actors

n  Piaggio (vespa) – paid good looking actors to ride around on their Vespas

+

n Operates on a low budget and is ‘shocking’ in order to get publicity e.g. Vodafone Streaking incident at International Rugby game

n Results in worldwide media coverage with no outlay

Guerrilla Marketing

+Others?

+Measuring marketing perfomance

62

+Evaluating marketing activities

n  Which promotions worked? Which didn’t work? n  Coupons returned

n  Website visits

n  Social media followers

n  Customer visits and feedback

n  Cost of acquisition (cost of marketing/number of customers attracted)

n  Leads (phone calls/emails)

n  Did you achieve your objectives?

n  Did you meet sales and profit targets?

n  Did you stick to your budget?

n  What’s the recall for your business? Prompted/unprompted awareness.

n  Did you have the right people involved in marketing? Do you need to get more resources/get help?

n  What’s the feedback from your customers?

Revisit your marketing plan and SWOT!

64

+Good luck! Enjoy the rest of your course J

promoting a personal service business - wa...

Documents