CHAPTER 13 PROMOTION STRATEGY PROMOTION STRATEGY Communication Process

CHAPTER 13 PROMOTION STRATEGY

PROMOTION STRATEGY • Communication Process • Promotion Objectives • Major Promotion Areas

COMMUNICATION PROCESS Process Marketing Application Source Sender of message Encode Design message Message Personal or non-personal channel Decode Receiver interprets message

PROMOTION OBJECTIVES • Communication Objectives - To inform - To remind • Behavior Objectives - To sell - To take some action

BEHAVIOR OBJECTIVES IN ADVERTISING • Don’t Mess With Texas • Army ad • Vote in next election • Groupon objectives

MAJOR PROMOTION AREAS • Sales Promotion • Publicity • Advertising • Personal Selling • Direct Marketing

SALES PROMOTION Paid forms of promotion with quick stimuli results • Consumer promotions • Business promotions

CONSUMER SALES PROMOTION • Frequent flyer points • Coupons • Rebates

BUSINESS SALES PROMOTION • Sales contests • Pens and pencils • Special display in stores

TRADE SHOW PROMOTIONS • T-shirts • USB Drives • Tossable Items

PUBLICITY Non-paid form of promotion • Publicity must be newsworthy to media • Cannot be controlled by sponsor • Technology is making newer forms of publicity available

PUBLICITY EXAMPLES • BP oil spill • Oprah’s giveaway • World Cup soccer • Exxon Disaster

ADVERTISING Paid form of promotion with non-personal presentations • Advertising Decision Process • Media Decisions

ADVERTISING DECISION PROCESS • Define target market(s) • Set advertising objectives • Make advertising decisions • Measure advertising results (Effectiveness)

ADVERTISING OBJECTIVES • Unawareness • Awareness • Comprehensive Communication Objectives • Conviction • Action Sales Objectives

MEDIA DECISIONS • Traditional media • Social media

TRADITIONAL MEDIA • Newspapers • Magazines • Television • Radio

MAGAZINE CIRCULATION Magazine 2000 2010 Newsweek 3. 1 million 1. 6 million Time 4. 1 million 3. 3 million

SOCIAL MEDIA • You. Tube • Facebook • Twitter

SOCIAL MEDIA CHANGES • Social Media vs. Traditional Media • Smart Phones, Tablets, and i. Pads

U. S. MOBILE AD SALES 2011 $4. 0 Billion 2012 $6. 7 Billion 2013 $10. 5 Billion

PERSONAL SELLING Paid form of promotion with personal presentations • Selling Objectives • Selling Process • Customer Relations Management

SELLING OBJECTIVES FOR BUYERS A Attention I Interest D Desire A Action

SELLING PROCESS • Prospecting • Approach • Presentation and Objections • Closing the Sale • Follow-up

PROSPECTING STAGE Cold Calls Telemarketing Leads Prospects with need Qualified Leads Prospects with need and can afford your product

QUALIFYING BUSINESS LEADS AT TRADE SHOWS Hot Wants to buy now Sales Worth a sales call Low sales priority

APPROACH STAGE • Pre-approach - Actions before calling on prospect • Approach - Meeting and greeting the buyer

PRESENTATION EXAMPLES • Telemarketing • Need Satisfaction • Problem Solutions

TELEMARKETING • Cemetery lots • Vacation condos • Non-profit organizations • Senior Citizens

HANDLING OBJECTIONS • Postpone • Agree and Neutralize • Ignore the Objection

CLOSING THE SALE • Trial close • Assumptive close • Urgency close

FREE MEALS TO CLOSE THE SALES • Condominiums • Financial planning • Medicare advantage

FOLLOW-UP • Phone call • Letter or card • E-mail

CUSTOMER RELATIONS MANAGEMENT (CRM) • Develop Customer Database • Identify Individual Customer Preferences • Contact Most Important Customers

CRM DATA MINING INFORMATION • Identify high-value customers • Sales force contacts • Credit/debit information • Number of website visits

CUSTOMER RELATIONSHIP MANAGEMENT EXAMPLES • Business hotel regulars • Heavy user customers on airlines • Major university endowment sponsors

DIRECT MARKETING • Kiosks sales • Infomercial sales • Network marketing

KIOSKS SALES • Supermarkets • Airports • Shopping Centers • Vending Machines

VENDING PRODUCTS • Redbox • Cupcakes • Baby products • Ramen noodles

INFOMERCIALS SALES Person Product George Foreman Lean Mean Grilling Machine Ron Popeil Showtime Rotisserie Oven Tom Vu Real Estate Seminars

RECENT INFOMERCIALS Product Sales Snuggie 18 million Bumpits 9 million Ped Egg 30 million

INFOMERCIALS FOR SELLING DVDs • Takes 5 -6 weeks for delivery • Seller stocks no inventory • Contract supplier is drop shipper • Revenue occurs when DVDs are ordered

NETWORK MARKETING COMPANIES • Amway • Stella & Dot • Tupperware