Using Effective Promotional Techniques CHAPTER 16 Nickels Mc

* * * Using Effective Promotional Techniques * CHAPTER ** 16 Nickels Mc. Graw-Hill/Irwin Understanding Business, 8 e * Mc. Hugh 1© 2008 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.

* * * Traditional Promotional Mix Advertising Personal Selling Product Public Relations Sales Promotion

* * * Steps In A Promotional Campaign 1. Identify the target market 2. Define the objectives 3. Determine the promotional budget 4. Develop a unifying message 5. Implement the plan 6. Evaluate effectiveness 3

* * * Objectives of Integrated Marketing • Build Brand Equity • Provide Information • Manage Demand & Build Sales • Differentiate Products • Influence Perceptions, Attitudes, & Buyer Behavior

* * * Advertising • Advertising media: Newspaper, television, radio, magazines, outdoor, direct mail, yellow-pages, Internet • The growing use of Infomercials • Moving to the Internet • Global advertising

* * * Century’s Top Ad Jingles • “You deserve a • • • “I wish I were an Oscar break today” “Be all you can be” • “Pepsi-Cola hits the • spot” “Mm Mm good!” • “See the USA in • your Chevrolet” Source: Advertising Age Mayer wiener” “A little dab’ll do ya” “Double your pleasure, double your fun” “It’s the real thing” “Winston tastes good like a cigarette should” 6

* * * Do Blatantly Sexy Ads Turn You Off? Source: USA Today

* * * Total Direct Advertising Expenditures Source: The Direct Marketing Association, Advertising Age (accessed August 10, 2006)

* * * Money Spent to Place Products In Billions Source: PQ Media

* * * Total Advertising Expenditures By Media Expenditures of 100 Leading National Advertisers Source: Advertising Age, 2005

* * * Ad Spending Growth Source: Advertising Age, 2005

* * * Infomercials Grossing Over 1 Billion In Billions Source: Business 2. 0, June 2005

* * * U. S. Online Ad Spending Source: Investors. com; Advertising Age, 2005

* * * Steps in the Selling Process (B 2 C) Follow up Close sale Make presentation Start Ask questions Approach

* * * Steps in the Selling Process (B 2 B) 1. Prospect and Qualify 2. Preapproach 3. Approach 4. Make Presentation 5. Answer Objections 6. Close Sale 7. Follow Up

* * * Public Relations Steps • • Listen to the public. • Inform people that you’re being responsive to their needs. Change policies and procedures. Publicity • Free • More Effective Than Advertising • Believable • No Control • No Repetition 16

* * * Sales Promotion Techniques B 2 B • • • Trade Shows Portfolios Deals Catalogs Conventions B 2 C • • • Coupons Cents-off Promotions Sampling Premiums Sweepstakes Contests Bonuses Catalogs Demonstrations Special Events Lotteries In-store Displays 17

* * * Tips on Issuing Coupons • Coupons can be used as a “Thank you for buying” or a “Stop and try us. ” • The value must be enough to attract customers. • Use coupon promotions sparingly. • Get professional help to get maximum exposure. • Color-code your coupons for different groups that use them. 18

* * * Coupon Statistics Average Face Value • 93 cents (2004); 46 cents (1990) Amount saved in 2004 • $2. 9 billion Number of coupons redeemed in America in 2004 • 3 billion Coupons rank 2 nd as purchase motivators (Largest: Free Samples) Source: St. Louis Post-Dispatch Everyday, July 2005

* * * Sales Promotion • Internal & External • Sampling • Word-Of-Mouth • Viral Marketing/Swag • Blogging • Podcasting

* * * Putting it all Together • • • Convince wholesalers and retailers to stock and sell Producer uses advertising, personal selling, sales promotion to convince the intermediaries Idea is to push the product through the distribution system to the stores • • • Heavy advertisements and sales promotion efforts Directed at consumers so that they will request the products from retailers Products are pulled down through the distribution system 21