intro to business 2 chapter 13 - Details

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The function of forming persuading and influencing a purchase decision

Promotion

The coordination of all promotional activities - media advertising, direct mail, personal selling, sales promotion, and public relations - to produce a unified, customer focused promotional strategy

Integrated Marketing communications (IMC)

- must take a broad view and plan for all form of customer contact - create a unified personality and message for the good, brand or service - elements include personal selling, advertising, sales promotion, publicity and public relations

Integrated marketing communications 2

The combination of the personal and non personal selling that marketers use to meet the needs of a firms target customers and to effectively and efficiently communicate its message to them

The Promotional Mix

The most basic form of promotion: a direct person to person promotional presentation to a potential buyer -many companies consider personal selling the key to marketing effectiveness - a seller matches a firms good or services to the needs of a particular client or customer - business often spend 5-10 times as much on personal selling as on advertising

Personal Selling

Forms of selling such as advertising, sales promotion, direct marketing, and public relations

Non personal selling

Promotion can also be used to differentiate a firm's offerings from the competition. by using a concept called positioning - marketers try to establish their products in the minds of consumers as different from other products in factors such as attributes, price, quality or of a good or service

Promotional strategies - Differentiate product

A major form of advertising is information oriented giving the consumers information on the product

Promotional Strategies - Providing information

Increasing sales volume is the most common objective of a promotional strategy. By targeting a specific audience to target your product too

Promotional Strategies - Increasing sales

Sales stabilizing is another goal of promotional strategies - during slow sales periods some firms use employee sales contests. these contests are meant to motivate sales people by offer prizes such as vacations tv smart phones and cash to those who meet certain sales goals

Promotional strategies - stabilizing sales

Same promotional strategies improve a products value by explaining the hidden benefits of ownership

Promotional strategy - highlight the product's value

A form of promotion where marketers pay placement fees to have their products featured in various media, from newspapers and magazines to televisions and movies

Promotional planning - Product placement

Innovative, low cost marketing efforts designed to get consumers attention in unusual ways

Guerilla Marketing

Paid non personal communication usually targeted at large numbers of potential buyers - advertising expenditures are great; automotive retail, and telecommunications firms spend the most on advertising in North America - carmekers spend $20 billion on advertising yearly - consumers are bombarded with many messages - firms needs to be more and more creative

Advertising

Messages designed to sell a particular good or service

Product advertising

Messages that promote concepts, ideas, or philosophies. It can also promote goodwill towards industries, companies, organizations, or government entities

Institutional advertising

A form of institutional advertising that promotes a specific viewpoint on a public issue as way to influence public opinion and the political process

Cause advertising

Is used to build initial demand for a product in its introductory phase

Informative advertising

Attempts to improve the competitive status of a product, institution, or concept, usually in its growth and maturity stages

Persuasive advertising

Compares products directly with their competitors, either by name or by inference

Comparative advertising

Maintains awareness of the importance and usefulness of a product in its late maturity or decline

Reminder-Oriented advertising

Outdoor - 7% radio - 7% newspapers - 17% 21% television - 40%

Advertising media

Television - easiest way to reach a large number of consumers - leading but most expensive advertising medium

Types of advertising - television

- dominate local advertising - relatively short life span

Types of advertising - newspapers

Commuters in cars are a captive audience - internet audio offers new opportunities

Types of advertising - Radio

Widgets or gadgets are small television scree images carrying marketing messages; contain embedded links to home sites

Online and interactive advertising

Providing funds for a sporting or cultural event in exchange for a direct association with the event - exposure to target audience - association with images of the event

Sponsorship

Forms of promotion such as coupons, product samples, and rebates that support advertising and personal selling

Sales promotion

- marketers generally choose free/reduced [rice premiums likely to get consumers thinking and caring about a brand and product - coupons attract new customers, but focus on price rather than brand loyalty - rebates increase purchase rates, promote multiple purchases, and reward product users three of every four consumers who receive a sample will try it

Premiums, coupons, rebates, samples

- introduction of new products -offer cash, merchandise, or travel as a prizes to participating winners subject to legal restrictions

Games, contests, sweepstakes

- promotional items that prominently display a firms name. logo or business slogan

Specialty advertising

- sales promotion geared to marketing intermediaries, note to final consumers - encourage retailers -to stock new products - to continue carrying existing products effectively to consumers - point of pruchase (pop) advertising - trade shows

Trade oriented promotions

1. few geographically concentrated customers 2. Product is technically complex, involves trade-ins. or requires special handling 3. product carries a relatively high price 4. product moves through direct-distribution channels

Firms focus on personal selling under four conditions

A form of selling used mostly at the wholesale and retail levels; involves identifying customer needs, and completing orders

Order processing - sales tasks

A persuasive type of promotional presentation - promotes a good or service whose benefits are not readily apparent or whose purchase decision requires a close analysis of alternatives

Creative selling - sales tasks

An indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to customer

Missionary selling - sales tasks

Personal selling by telephone, which provides a firms marketers with a high retirn on their expenditures an immediate response

Telemarketing - sales tasks

Step 1 - prospecting and qualifying step 2 - approach step 3 - presentation step 4 - demonstration step 5 - handling objections step 6 - closing ask for order step 7 - follow up

The sales process 7 steps

Prospecting: is identifying potential customers qualifying: is identifying potential customers who have financial ability and buying authority - done through direct mail responses, personal visits from sales representatives, email and social media

Prospecting and qualifying - sales process

Is analyzing available data about a prospective customer product lines and other pertinent information

Approaching - sales process

Salespeople communicate promotional messages. they may describe the major features of their products, highlights the advantaged and cite examples of satisfied consumers

Presentation - sales process

Reinforces the message salesperson has been communicating

Demonstation - sales process

Use objections as an opportunity to answer questions and explain how the product will benefit the customer

Objections - sales process

The closing is the critical point in the sales process; asking the customer to buy - even if the sale is not made, the salesperson should regard the interaction as the beginning of a potential relationship

The closing - sales process

- an important part of building a long-lasting relationship - may determine whether the customer will make another purchase

Follow-up - sales process

An organization communications and relationships with its various public audiences - this is an efficient, indirect communications channel for promoting products, It can be publicize products and help create and maintain a positive image of the company

Public realtions

The non personal stimulation of demand for a good, service, place, idea, event, person, or organization, by unpaid placement of information in print broadcast media

Publicity

Personal selling to market an item to wholesalers and retailers in a companies distribution channels - companies promote the product to members of the marketing channel, not to end users

Pushing strategy

Promote of a product by generating consumer demand for it, mainly through advertising and sales promotion appeals - potential buyers will request that their suppliers - retailers or local distributors - carry the product, thereby pulling it through the distribution channel most marketing situations require combinations of push and pull strategies

Pulling strategy

Allowances that marketers provide to share with channel partners the cost of local advertising o their firm's products

Cooperative advertising

The exchange value of a good or service

Price

Common goals that are included in the strategic plans of most firms - maximize profits by reducing costs maintain price while reducing costs

Profitability objectives

Pricing decisions that are based on market share, the percentage of a market controlled by a certain company or product

Volume objectives

Meet competitors price competitors cannot legally work together to set prices

Pricing to meet competition

- establishing a relatively high price to develop and maintain an image of quality and exclusiveness - recognitions of the role of price in communicating an overall image for the firm and its products - products that are limited in distribution or so popular that they become scarce generate their own prestige

Prestige Pricing

Calculating total costs per unit and then adding markups to cover overhead costs and generate profit - totals all costs associated with offering a product in the market, including research and development, production, transportation, and marketing expenses - markup is added to cover any unexpected or overlooked expenses and provides a profit - total is the selling price actual markup used caries by such factors as brand image and type of store

Cost based pricing

Breakeven analysis

A strategy that sets an intentionally high price relative to the prices of competing products - helps marketers set a price that distinguishes a firm's high-end product from those of competitors

Skimming pricing - alternative pricing

A strategy that sets a low price as a major marketing tactic - often used with new products

Penetration pricing - alternative pricing

A strategy of maintaining continuous low prices instead of using short term price-cutting tactics such as cents off coupons, rebates and special sales

Everyday low pricing (EDLP) - alternative pricing

Is used to attract customers by dropping prices for a set period of time

Discount pricing

A strategy that tries ro reduce the emphasis on price competition by matching other firm' prices and by focusing their own marketing efforts on the product, distribution, and promotional elements of the marketing mix

Competitive pricing

- consumers' perceptions and higher quality - high price = prestige and higher quality low price = less prestige and lower quality

Price-quality

A pricing method that uses uneven amounts to make prices appear to be less than really are - examples: 1.99; 9.95

Odd pricing:

Creates a message that is novel for entertaining enough for consumers to forward to others, spreading it like a virus. its cheaper then TV.

Virtual advertising

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