road map: integrated marketing communications five promotion tools and the factors that must be...
TRANSCRIPT
ROAD MAP:
• Integrated marketing communicationsFive promotion tools and the factors that must be considered in shaping the
overall promotion mix.
– Advertising:
The major decisions involved in developing an advertising program.
– Sales promotion: How do sales promotion campaigns are developed
and implemented?– Public relations:
How do companies use public relations to communicate with their publics?– Personal selling:
Role of a company’s salespeople, six major steps and process of sales force management
– Direct marketing:Major forms of direct marketing.
Sales Promotion
• Short-term incentives to encourage the purchase or sales of a product or service.
• To generate immediate sales.• The major forms of sales promotion:
– consumer, business, trade, or sales force promotions.
• Rapid growth in the industry because:– More pressure to increase their current sales– More competition– Declining advertising efficiency– More deal oriented consumers
Sales Promotion Objectives
• Consumer Promotions: increase short-term sales or help build long-term market share.
• Trade Promotions: get retailers to:– carry new items and more inventory– advertise products– give products more shelf space– buy ahead
• Sales Force: getting more sales support.• In general, sales promotion should build
long-term customer relationships.
SampleSample
CouponsCoupons
Cash Refunds“Rebates”
Cash Refunds“Rebates”
Price Packs“Cents-Off Deals”
Price Packs“Cents-Off Deals”
PremiumsPremiums
Advertising Specialties
Advertising Specialties
Offers a trial amount of a productOffers a trial amount of a product
Savings when purchasing specified products
Savings when purchasing specified products
Refund of part of the purchase price by mail
Refund of part of the purchase price by mail
Reduced prices marked on the label or package by producer
Reduced prices marked on the label or package by producer
Goods offered free or low cost as an incentive to buy a product
Goods offered free or low cost as an incentive to buy a product
Articles imprinted with an advertiser’s name given as gifts
Articles imprinted with an advertiser’s name given as gifts
Consumer Sales Promotion Tools
Patronage RewardsPatronage Rewards
Point-of-Purchase Promotions
Point-of-Purchase Promotions
ContestContest
SweepstakesSweepstakes
GamesGames
Cash or other award offered for regular use of a product or serviceCash or other award offered for
regular use of a product or service
Displays or demonstrations at the point of purchase or sale
Displays or demonstrations at the point of purchase or sale
Consumers submit an entry to be judged by a panel
Consumers submit an entry to be judged by a panel
Consumers submit their names for a drawing
Consumers submit their names for a drawing
Consumers receive something each time they buy which may
help them win a prize
Consumers receive something each time they buy which may
help them win a prize
Consumer Sales Promotion Tools
Trade Promotion
Persuade resellers to carry a brand
Give a brand shelf space
Promote brand in advertising
Push brand to customers
Discounts
Allowances
Free Goods
Push Money
Specialty Advertising Items
T o o l s
Business Promotion
Generate business leads
Stimulate purchases
Reward customers
Motivate salespeople
Conventions
Trade shows
Sales contests
O b j e c t i v e s
Decide on the Size of the IncentiveDecide on the Size of the Incentive
Set Conditions for ParticipationSet Conditions for Participation
Evaluate the ProgramEvaluate the Program
Decide How to Promote andDistribute the Promotion Program
Decide How to Promote andDistribute the Promotion Program
Decide on the Length of the ProgramDecide on the Length of the Program
Developing the Sales Promotion Program
Events and Experiences
• $11.14 billion spent on sponsorship in 2004– 69% sports– 10% tours– 7% festivals, fairs– 5% arts– 9% causes
Why Sponsor Events?• To identify with a particular target market or life style• To increase brand awareness• To create or reinforce consumer perceptions of key
brand image associations• To enhance corporate image• To create experiences and evoke feelings• To express commitment to community• To entertain key clients or reward employees• To permit merchandising or promotional
opportunities
Using Sponsored Events
Establish objectives
Choose event opportunities
Design program
Implement and control
Measure effectiveness
Ideal Events
Audience closely matches target market
Event generates media attention
Event is unique with few sponsors
Event lends itself to ancillary activities
Event enhances brand image of sponsor
ROAD MAP:
• Integrated marketing communicationsFive promotion tools and the factors that must be considered in shaping the
overall promotion mix.– Advertising:
The major decisions involved in developing an advertising program.
– Sales promotion: How do sales promotion campaigns are developed and implemented?
– Public relations: How do companies use public relations to communicate with their publics?
– Personal selling:Role of a company’s salespeople, six major steps and process of sales force management
– Direct marketing:Major forms of direct marketing.
Public Relations
• Building good relations with the company’s various publics by obtaining favorable publicity
• Building up a good corporate image
• Handling or heading off unfavorable rumors, stories, and events.
Public Relations Functions
• Press relations or press agency• Product publicity• Public affairs
• Lobbying• Investor relations• Development
Public Relations Tools
• NewsNews
• SpeechesSpeeches
• Special eventsSpecial events
• Buzz marketingBuzz marketing
• Mobile marketing Mobile marketing
• Written materialsWritten materials
• Audiovisual materials• Corporate identity materials• Public service activities• Company Web site
Marketing Public Relations Functions
• Assist in product launches• Assist in repositioning mature products• Build interest in a product category• Influence specific target groups• Defend products• Build corporate image
Major Tools in Marketing PR
• Publications• Events• Sponsorships• News• Speeches• Public Service
Activities• Identity Media
ROAD MAP:
• Integrated marketing communicationsFive promotion tools and the factors that must be considered in shaping the
overall promotion mix.– Advertising:
The major decisions involved in developing an advertising program.
– Sales promotion: How do sales promotion campaigns are developed and implemented?
– Public relations: How do companies use public relations to communicate with their publics?
– Personal selling:Role of a company’s salespeople six major steps and process of sales force
management – Direct marketing:
Major forms of direct marketing.
The Role of the Sales Force• Personal selling is a paid, personal form of promotion.
• Involves two-way personal communication between salespeople and individual customers.
• Salespeople:– Probe customers to learn about problems
• Adjust marketing offers to fit special needs– Negotiate terms of sales– Build long-term personal relationships
Sales Force serves as critical link between company and its customers
They represent the company to the customers
They represent the customers to the company
Goal = Customer Satisfaction and Company Profit
Major Steps in Sales Force Management
Sales Force Structure
Territorial: Salesperson assigned to exclusive area and sells full line of products
Product: Sales force sells only certain product lines
Customer: Sales force organizes along customer or industry lines
Complex: Combination of several types of structures
Recruiting and Selecting Salespeople
• Key talents of salespeople:– Intrinsic motivation
– Disciplined work style
– Ability to close a sale
– Ability to build relationships with customers
Recruiting Salespeople
• Recommendations from Recommendations from current sales forcecurrent sales force
• Employment agenciesEmployment agencies
• Classified adsClassified ads
• Web searches• College students• Recruit from other companies
Sales Force Training Goals
Learn about and identify with the company.
Learn about the company’s products.
Learn customers’ and competitors’ characteristics.
Learn how to make effective presentations.
Learn field procedures and responsibilities.
Compensating Salespeople
• Fixed amount-Salary • Variable amount-Commissions or bonuses• Expenses: Repays for job-related expenditures• Fringe benefits: Vacations, sick leave, pension, etc.
Supervising Salespeople
• Directing SalespeopleDirecting Salespeople– Help them identify customers and set call norms.Help them identify customers and set call norms.– Specify time to be spent prospectingSpecify time to be spent prospecting
• Motivating SalespeopleMotivating Salespeople– Organizational climateOrganizational climate– Sales quotasSales quotas– Positive incentivesPositive incentives
Major Steps in Effective Selling
Identifying qualified potential
customers
Identifying qualified potential
customers
Learning about a prospective
customer before a sales call
Learning about a prospective
customer before a sales call
ROAD MAP:
• Integrated marketing communicationsFive promotion tools and the factors that must be considered in shaping the
overall promotion mix.– Advertising:
The major decisions involved in developing an advertising program.
– Sales promotion: How do sales promotion campaigns are developed and implemented?
– Public relations: How do companies use public relations to communicate with their publics?
– Personal selling:Role of a company’s salespeople, six major steps and process of sales force management
– Direct marketing:Major forms of direct marketing.
Direct Marketing
• Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
The New Direct-Marketing Model
• As a supplemental medium for some firms.As a supplemental medium for some firms.
• As a new and complete model for doing business for many As a new and complete model for doing business for many firms.firms.
• As the As the onlyonly approach for some firms. approach for some firms.
• As the new marketing model of the next millennium.As the new marketing model of the next millennium.
Benefits of Direct Marketing
• Benefits to Buyers:– Convenient
– Easy to use
– Private
– Ready access to products and information
– Immediate and interactive
• Benefits to Sellers:Benefits to Sellers:– Powerful tool for building customer relationshipsPowerful tool for building customer relationships– Can target small groups or individualsCan target small groups or individuals– Can tailor offers to individual needsCan tailor offers to individual needs– Can be timed to reach prospects at just the right momentCan be timed to reach prospects at just the right moment– Gives access to buyers they could not reach through other Gives access to buyers they could not reach through other
channelschannels– Offers a low-cost, efficient way to reach marketsOffers a low-cost, efficient way to reach markets
Forms of Direct Marketing
Kiosk Marketing
• Information and ordering machines generally found in stores, airports, and other locations (versus vending machines which dispense actual products).
Elements of the Offer Strategy
• Product• Offer• Medium• Distribution method• Creative strategy
Components of the Mailing
• Outside envelope
• Sales letter
• Circular
• Reply form
• Reply envelope
Types of Telemarketing
• Telesales
• Telecoverage
• Teleprospecting
• Customer service and technical support
Other Media for Direct Response
Television
• Direct Response Advertising
• At-home shopping channels
• Videotext
Kiosks
Designing an Attractive Web Site
• Context• Content
• Community• Customization
• Communication• Connection• Commerce
Ease of Use and Attractiveness
• Ease of Use– Downloads quickly– First page is easy to understand– Easy to navigate
• Attractiveness– Clean looking– Not overly crammed with content– Readable fonts– Good use of color and sound
Increasing Visits and Site Stickiness
• Deep information with links
• Changing news of interest
• Changing offers • Contests and
sweepstakes• Humor and jokes• Games
Online Ads
• Banner ads• Microsites• Sponsorships• Interstitials• Search-related ads• Content-targeted advertisi
ng• Alliances• Affiliate programs
iTunes Affiliate Program
e-Marketing Guidelines
• Give the customer a reason to respond
• Personalize the content of your emails
• Offer something the customer could not get via direct mail
• Make it easy for customers to unsubscribe
Integrated Direct-Marketing
• Carefully coordinated multiple-media, multiple-stage campaigns.
Public Policy and Ethical Issues in Direct Marketing
Irritation to Consumers
Taking unfair advantage of impulsive or less sophisticated buyers
Targeting TV-addicted shoppers
Deception, Fraud
Invasion of Privacy
Rest Stop: Reviewing the Concepts
1. Discuss the process and advantages of integrated marketing communications.
2. Define the five promotion tools and discuss factors that must be considered in shaping the overall promotion mix.
3. Describe and discuss the major decisions involved in developing an advertising program.
4. Explain how sales promotion campaigns are developed and implemented.
5. Explain how companies use public relations to communicate with their publics.
6. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.
7. Identify and explain the six major sales force management steps.8. Discuss the personal selling process, distinguishing between
transaction-oriented marketing and relationship marketing.9. Define direct marketing and discuss its benefits to customers and
companies.10. Identify and discuss the major forms of direct marketing.