promotion strategy. promotion any form of communication a business/organization uses to inform,…
DESCRIPTION
Advertising Paid form of non-personal presentation of ideas, goods, or services directed toward a mass audience by an identified sponsor Two Types: o Print Media: Newspapers, magazines, direct mail, outdoor (billboards), transit (ads on buses or subways) o Broadcast Media: Radio, television, Internet web sitesTRANSCRIPT
Promotion Strategy
Promotion Any form of communication a
business/organization uses to inform, persuade, or remind people about its products or services.
Types of Promotion:o Advertisingo Public Relations (PR) & Publicityo Sales Promotiono Personal Selling
Advertising Paid form of non-personal presentation of ideas,
goods, or services directed toward a mass audience by an identified sponsor
Two Types:o Print Media:
• Newspapers, magazines, direct mail, outdoor (billboards), transit (ads on buses or subways)
o Broadcast Media:• Radio, television, Internet web sites
Public Relations & Publicity
PR: any activity designed to create a favorable image toward a business, its products, or its policieso News release, press kits
Publicity: The placement of newsworthy items about a business, new products, or employees in the media
Sales Promotion Use of short-term incentives or interest-building marketing
activities to stimulate traffic and encourage the buying of a product or serviceo Increase sales
Business to Businesso Slotting Allowances: manufacturer pays retailer for costs involved in
placing a new product on shelves
o Buying Allowances: price discount given by manufacturers to wholesalers and retailers to encourage the purchase of a product
o Trade Shows & Conventions: designed to reach wholesalers and retailers• Introduce new products or increase sales of existing products
o Sales Incentives: financial awards given to managers or employees who reach or exceed sales quotas
Sales Promotion Cont. Business to Consumer:
o Premiums: low-cost items given to consumers at a discount or for free.• Designed to increase sales, attract
new customers, and persuade nonusers to switch brands
o Sponsorship: promotion of a company in association with a property, event, or group
o Incentives: create customer excitement and increase sales.• Include sweepstakes, contests,
and rebates
o Product Samples: free trial size of a product
o Promotional Tie-Ins: involve sales promotional arrangements between one or more retailers
o Product Placement: the strategic placement of an item will increase or enhance public knowledge
o Visual Merchandising/Displays: coordination of all physical elements in a place of business so that it projects the right image to its customers
o Loyalty Marketing Programs: reward customers for making multiple purchases
Promotion Cont. Personal Selling: Consists of oral presentations
to one or more potential buyers with the intent of making a sale
Promotional Mix: refers to the combination of different types of promotiono A business decides on the promotional mix that will be
most effective in persuading potential customers to purchase and support its products• Wholesalers, retailers, and/or consumers
Promotion Policy Push Policy: when a manufacturer is trying to
“push” a product through a channel of distributiono Main purpose: to convince a retailer to stock a producto Relies heavily on personal selling and sales promotion,
esp. at trade shows
Pull Policy: designed to create consumer interesto Consumer demand can “pull” or encourage retailers to
carry a producto Relies heavily on advertising
geared towards consumers in addition to premiums, samples, and demonstrations
Promotion Plan Process
o Keep in mind your Target Market and the 4PsDetermine marketing objectives
Determine your promotional budget
Determine your promotional mix (what)
Create your plan (who, when)
Execute your promotional plan
Evaluate your plan & readjust accordingly
Example Marketing Objective
o Create awareness of baby care products among mothers of newborns
Promotional Budgeto $100,000.00
Promotional Mixo Advertise in national baby care and motherhood
magazineso Distribute product samples to major obstetricians’
offices in major urban areaso Offer free baby care seminars to expectant mothers at
major hospitalso Provide free samples to maternity wards at major
hospitals
Publicity Placement of newsworthy items about a business,
new products, or employees in the mediao An act designed to attract public interesto Information with news value issued as a means of
gaining public attention or support
o Involves creating demand for a business or product by placing news about it in publications, radio, television, or another form of media
o It is not paid for
Publicity The principal function of publicity is “building an
image”o Image: the way a business or organization is defined in
people’s minds
Publicity can be positive or negative
Advantages vs. Disadvantages
Major Advantages of Publicity:o People are more likely to pay attention to news stories
than to advertisements• News reporters and newspapers are viewed as more
objective than advertisers
Major Disadvantages of Publicity:o A business gives up control over their
message• The content and how it is presented
Public Relations The business of inducing the public to have
understanding for and goodwill toward a person, firm, or institutiono An individual or group of people who serve as public
spokespeople for an individual or an organization• They relate information to the public
The right kind of public relations can create a positive image for a company and maintain or improve that image within the communityo Example: sponsoring cultural events (concerts or art
exhibits)o Awarding scholarships to a local high schoolo Donating equipment for public use
Public Relations Refers to any activity designed to create goodwill
towards a business
The goodwill benefits a business by:o Increasing sales
o Reinforcing the firm’s good reputation
o Increasing the receptivity of consumers to the firm’s advertising
o Conditioning customers to expect quality products from the firm
Public Relations Specialists
These specialists attempt to get good publicity for their companies by creating news events
Examples:o The opening of a new storeo An interview with a company officialo Launching of a new producto Presentation of an award to an employeeo A community activity that is sponsored by the businesso A charitable activity that the business participates in
What Advertising Can Do for your Business
Remind customers and prospects about the benefits of your product or service
Establish and maintain your distinct identity
Enhance your reputation
Encourage existing customers to buy more of what you sell
Attract new customers and replace lost ones
Build sales slowly
Promote your business to customers, investors, and others
What Advertising Can’t do for your
Business Create an instant customer base
Solve cash flow or profit problems
Substitute for poor or indifferent customer base
Sell useless or unwanted products/services
Advertising Pros You have complete control.
o You determine exactly where, when, and how often your message will appear, how it will look, and what it will say
o You can target your audience more readilyo You can aim at very specific geographic areas
You can be consistent, presenting your image and sales message repeatedly to build awareness and trusto A distinctive identity will eventually become clearly
associated with your companyo Customers will recognize you quickly and easily
Advertising Cons It takes planning
o Advertising works best and costs less when planned and prepared in advanced
It takes time and persistenceo The effectiveness of your advertising improves gradually
over time• Customers don’t see every one of your ads
o You must repeatedly remind prospects and customers about the benefits of doing business with you• The long-term effort triggers recognition and helps special
offers or direct marketing pay off
Advertising vs. Public Relations
Advertising Public Relations Space or time in the mass
media must be paid for
You determine the message
You control the timing
One-way communicationo Using the mass media does
not allow feedback
Coverage in mass media, if any, is not paid for
Interpretation of the message is in the hands of the media
Timing is in the hands of the media
Two-way communicationo The company should be
listening as well as talking & the various PR venues often provide immediate feedback
Advertising vs. PR Cont.
Advertising Public Relations Message sponsor is
identified
The intention of most messages is to inform, persuade, or remindo With the intent of making a
sale
The public may view the message negatively, recognizing advertising as an attempt to persuade or manipulate
Message sponsor is not overtly identified
The intention is often to create good will, keep company in front of the public, or to humanize a company
The public often sees PR messages that have been covered by the media as more neutral or believable
Advertising vs. PR Cont.
Advertising Public Relations Very powerful at creating
an image
Writing style is usually persuasive, can be creative, often taking a conversational toneo May even be grammatically
incorrect
Can also create image, but sometimes stray from how it was originally intended
Writing style relies heavily on journalism talentso Any persuasion is artfully
inserted in the fact-based content
Effective Selling Selling: helping customers make satisfying
buying decisions by communicating how products and their features match customers’ needs and wants
Goals of selling:o Help customers decide on purchases
• Sometimes educating customers on products
o Ensure customer satisfactions• Happy customers mean repeat business
Selling is a broad concept and can take place inside or outside a firm
Inside vs Outside Selling
Inside Saleso Selling efforts that take place at the salesperson’s place
of business (i.e. retailers)
Outside Saleso Selling efforts that take place outside the salesperson’s
place of business (i.e. door-to-door salespeople)
Insurance agents or real estate agents may sell their consumer services through inside or outside sales efforts
The Selling ProcessProspecting (finding potential
customers)The pre-approach (gathering info about potential
customers)The approach (why would a potential customer want to listen
to you?)The sales presentation (presenting to the potential
customer)Handling objections (responding to
concerns)The close (the handshake &
agreement)The departure and follow-up (how you deal with the potential
customers next)
The Selling Process Prospecting: the process of finding potential
customers who could benefit from and buy a good/serviceo Potential customers are prospects
Gathering and analyzing information about the prospect and using it to construct the sales presentation is the pre-approach
The Selling Process The way the salesperson enlists the prospect’s
willingness to hear more about a product is the approach. o The approach is made to gain an interview and make the
sales presentationo Examples:
• Telephone call to a business at a time, day, week, etc.• Using a business card• Direct mail• Personal visit
During the sales presentation, the salesperson demonstrates or explains the product and attempts to build a desire for ownership within the prospect
The Selling Process An objection is an honest difference between the
customer and the salesperson
Example of an objection:o “I like your product, but I don’t think the school can
afford it right now”
o Salesperson could respond by stressing the benefits of immediate ownership, while also explaining the various credit plans offered
The Selling Process The close is the completion of the sale
o Avoid pressureo Call againo Suggest additional purchases (of same item or
related/additional items)
The departure and follow-upo thank prospecto Show appreciation for prospect’s time and attentiono A good salesperson is always interested in future
business and sales
After each sales call—examine reasons for success or failure.
Follow a Product—Promotion Strategy
Discuss the different aspects of your promotion strategy:o What forms of advertising will you use:
• Print media• Broadcast media
o Will there be any form of publicity or PR?
o What types of sales promotions will be used?