Lecture 26. Chapter 13 PromotingProducts Chapter Outline Importance Of Promotion Importance Of...
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Transcript of Lecture 26. Chapter 13 PromotingProducts Chapter Outline Importance Of Promotion Importance Of...
Lecture 26
ChapterChapter 1313
PromotingPromotingProductsProducts
Chapter OutlineChapter Outline
Importance Of PromotionImportance Of PromotionAdvertising PromotionsAdvertising PromotionsPersonal SellingPersonal SellingSales PromotionsSales PromotionsPublicity & Public RelationsPublicity & Public RelationsPromotional Practices In Small Promotional Practices In Small
BusinessBusinessInternational Promotional StrategiesInternational Promotional Strategies
PromotionPromotion
Part Of Marketing Mix Concerned Part Of Marketing Mix Concerned
With Most Effective Techniques With Most Effective Techniques
for Selling Product.for Selling Product.
Information &Information &Exchange ValuesExchange Values
• Notify Potential CustomersNotify Potential Customers• Educate Potential CustomersEducate Potential Customers• Persuade Customers to Like ProductPersuade Customers to Like Product• Persuade Customers To BuyPersuade Customers To Buy• Create Exchange That Satisfies All PartiesCreate Exchange That Satisfies All Parties
Promotional ObjectivesPromotional Objectives
1)1) Communicate InformationCommunicate Information
2)2) Position ProductsPosition Products
3)3) Add ValueAdd Value1)1)Communicate value added benefitsCommunicate value added benefits
4)4) Control Sales Volume Control Sales Volume
Communicate InformationCommunicate Information
• Advise Customer Product ExistsAdvise Customer Product Exists
• Educate Customer About Product Educate Customer About Product Features Features
Positioning ProductPositioning Product
• How Product Is Positioned In Customer’s How Product Is Positioned In Customer’s Mind Compared to CompetitionMind Compared to Competition
• IdentifyIdentify– Target SegmentsTarget Segments– CompetitorsCompetitors
Value-Adding BenefitsValue-Adding Benefits
• WarrantiesWarranties
• Repair ContractsRepair Contracts
• After-Purchase ServiceAfter-Purchase Service
ControllingControllingSales VolumeSales Volume
• Increase Promotion During Slow PeriodsIncrease Promotion During Slow Periods
• A Measure Promotional Campaign Allows A Measure Promotional Campaign Allows For Controlled Growth So Promises Do For Controlled Growth So Promises Do Not Exceed Ability To DeliverNot Exceed Ability To Deliver
Promotional StrategiesPromotional Strategies
• PullPull– Appeal Directly To Consumer To Create Appeal Directly To Consumer To Create
DemandDemand
• PushPush– Encourage Wholesalers & Retailers To Encourage Wholesalers & Retailers To
Market To ConsumersMarket To Consumers
Push vs. PullPush vs. Pull
PushPushProductProduct
PullPull
ProductProduct
Promotional MixPromotional Mix
• AdvertisingAdvertising
• Personal SellingPersonal Selling
• Sales PromotionSales Promotion
• Publicity & Public RelationsPublicity & Public Relations
Promotion &Promotion &The Buying DecisionThe Buying Decision
AdvertisingAdvertising
Promotional Tool Consisting Of Paid, Promotional Tool Consisting Of Paid, Non-Personal Communication Used Non-Personal Communication Used By An Identified Sponsor To Inform By An Identified Sponsor To Inform An Audience About A Product. An Audience About A Product.
Advertising StrategiesAdvertising Strategies
• Depends upon product lifecycleDepends upon product lifecycle• PersuasivePersuasive
– Stress QualityStress Quality– Influence consumers to buy a company’s product rather than the Influence consumers to buy a company’s product rather than the
rivalsrivals
• ComparativeComparative– Maturity StageMaturity Stage– Two ore more products are directly comparedTwo ore more products are directly compared– Goal is to take sales from competitionGoal is to take sales from competition
• ReminderReminder– Decline StageDecline Stage– Keeps products names in consumer mindsKeeps products names in consumer minds
Advertising MediaAdvertising Media
• TelevisionTelevision
• Direct MailDirect Mail
• NewspapersNewspapers
• MagazinesMagazines
• RadioRadio
• OutdoorOutdoor
• InternetInternet
• Data Mining & Data Mining & WarehousingWarehousing
• VirtualVirtual
• Media MixMedia Mix
Media Mix By IndustryMedia Mix By Industry
Advertising CampaignAdvertising Campaign
ID TargetID Target
Set BudgetSet Budget
Define Define ObjectivesObjectives
Create Create MessageMessage
ID MediaID Media
EvaluateEvaluate
Personal SellingPersonal Selling
• Personal SellingPersonal Selling
• TelemarketingTelemarketing
• SituationsSituations– RetailRetail– IndustrialIndustrial
Sales Force ManagementSales Force Management
• Top Management- Sets GoalsTop Management- Sets Goals• Salespeople- Set Realistic ObjectivesSalespeople- Set Realistic Objectives• Organize Sales Force To Meet GoalsOrganize Sales Force To Meet Goals• Implement/Evaluate Success Of Overall Implement/Evaluate Success Of Overall
Sales PlanSales Plan
Personal Selling TasksPersonal Selling Tasks
• Order ProcessingOrder Processing– Receives an order and sees to its handling Receives an order and sees to its handling
and deliveryand delivery
• Creative SellingCreative Selling
• Missionary SellingMissionary Selling– Promote company and the product rather than Promote company and the product rather than
make salemake sale
Personal Selling ProcessPersonal Selling Process
Prospect Prospect & Qualify& Qualify
ApproachApproach
PresentPresent
Handle Handle ObjectionsObjections
ClosingClosing
Follow-UpFollow-Up
Sales PromotionSales Promotion
• Important because enhance Important because enhance recognition, increase sales and recognition, increase sales and motivates the customer to trymotivates the customer to try– CouponsCoupons– Point-Of-PurchasePoint-Of-Purchase– Purchasing IncentivesPurchasing Incentives– Trade ShowsTrade Shows– ContestsContests
Sales PromotionSales Promotion
– CouponsCoupons• Certificates entitling bearers to savings off regular Certificates entitling bearers to savings off regular
pricesprices– Point-Of-PurchasePoint-Of-Purchase
• Located at the end of aisles or at checkout countersLocated at the end of aisles or at checkout counters• Easier to find product and eliminate competitionEasier to find product and eliminate competition
– Purchasing IncentivesPurchasing Incentives• Free samples or premium (free or reduced price items)Free samples or premium (free or reduced price items)
– Trade ShowsTrade Shows• Companies have booth in which they display productsCompanies have booth in which they display products
– ContestsContests
Publicity & PRPublicity & PR
• PublicityPublicity– FreeFree– Little ControlLittle Control
• Public RelationsPublic Relations– Company-InfluencedCompany-Influenced– Create GoodwillCreate Goodwill
Small Business AdvertisingSmall Business Advertising
• InternetInternet
• Non-Prime TimeNon-Prime Time
• Yellow PagesYellow Pages
• Direct MailDirect Mail
• Targeted Magazine AdsTargeted Magazine Ads
• Sales ForceSales Force
• Sales AgenciesSales Agencies
• TelemarketingTelemarketing
Small BusinessSmall BusinessPersonal SellingPersonal Selling
Global AdvertisingGlobal Advertising
• Product VariationsProduct Variations
• Language DifferencesLanguage Differences
• Cultural ReceptivenessCultural Receptiveness
• Image DifferencesImage Differences