Marketing is AWESOME!!!

UNIT 2
*Promotional Concepts and
Strategies
and
*The Selling Process
1

The Promotional Mix (17.1)

Sales Promotion
Advertising
Social Media
Public Relations
Personal Selling

The purpose of any promotion is to persuade, inform or

remind and be directly related to a product (product
promotion) or to the image of a business. (institutional
promotion)
2

Sales Promotion

Sales promotion represents all marketing

activities, other than personal selling,
advertising, and public relations, that are
used to stimulate consumer purchasing
and sales effectiveness.
1. Increase Sales
2. Create Awareness of new products
3. Create Positive image of a company
3

Advertising
Any paid form of non-personal
presentation and promotion of ideas,
goods, or services by an identified
sponsor.
This is one-way communication that can
be found everywhere

Public Relations and Publicity

CREATING AN IMAGE
PR refers to any activity designed to create a
favorable image toward a business, product, or
a policy.
Publicity is a specific kind of PR that involves
placing positive and newsworthy information.
EX. A panda having a new baby is great
publicity for the zoo
Cost and Validity are huge advantages but lack
of control is the disadvantage
5

Personal Selling
Think back to the steps of the sale

Pre-approach
Approaching the Customer
Determining Needs
Presenting the Product
Overcoming Objections
Closing
Suggestive Selling
Relationship Building

Most expensive form of Promotion

6

Coordinating the Promotion

Most companies use a combination of types of
promotion
Advertising creates awareness
PR creates a good image
Sales Promotion encourages buying
Personal Selling closes the deal
Each promotion must tell the same story in order to have
an effective promotional mix

Sales Promotion (17.2)

A short term incentive offered to
encourage buying a good or service.
Sales promotions can be geared to
business-to-business or consumer
oriented.

Trade Promotions
Activities designed to gain manufactures,
wholesalers, and retailers support for a
product.
How can Coke get King Soopers to sell
and push Cokes sales?

Trade Promotions
Slotting allowance a cash premium paid
by the manufacturer to a retail chain for
costs involved in placing a new product on
its shelves. Ex. Coke Paying Wal-Mart
Buying Allowances a price discount
given by manufactures to wholesalers and
retailers to encourage the purchase of a
product. Ex. Coke giving a discount rate to
Wal-Mart to sell more Coke.
10

Trade Promotions
Trade Shows and Conventions designed
to reach wholesalers and retailers by
providing businesses with opportunities to
introduce new products, encourage sales
of existing products, and gain continual
support.

Sales incentives are awards given to

managers and employers who
successfully meet or exceed sales quota.
11

Consumer Sales Promotion

Sales Promotion efforts designed to
encourage customers to buy a product
1. Premiums low cost items given to
consumers at a discount or for a fee.
Coupons - newspaper, Factory Packs
toy in cereal boxes, Traffic builders
shirts at a college visit, Coupon Plans
Qdoba card
12

Consumer Sales Promotion

2. Sponsorship Involves the promotion of
a company in association of a property.

A property can be a physical site Invesco

Field, an event Fedex Orange Bowl, and a
group Ford Racing Team.

13

Consumer Sales Promotion

3. Incentives generally high priced
products given away through contests,
sweepstakes, and rebates.

Contests are activities that require participation to

demonstrate a skill. (Essay Contest)
Sweepstakes are a game of chance. No purchase
necessary. (McDonalds Monopoly)
Rebates are discounts offered by manufactures to
customers who purchase an item during a given
time period. (Cell Phones)
14

Consumer Sales Promotion

4. Product Samples a free trial size of a
product, great for new products
5. Promotional Tie-Ins involve sales
promotion arrangements between one or
more retailers or manufactures.
-Gum in baseball cards

6. Product Placement products featured

on television or movies. More popular
than ever. What type of cars are in
James Bond?
15

Consumer Sales Promotion

7. Visual Merchandising and Displays this
is in store advertising that displays the
image of the product
8. Loyalty Marketing Programs frequent
buyer programs that reward customers
for making multiple purchases. (Credit
Card rewards)

16

Public Relations (17.3)

IMAGE BUILDING
Businesses want to present a positive image to
their customers, employees, and the general
public.
Companies do this through actions, (ex.
helpfulness of customers gets them coming
back) through benefits, (ex. Tuition
reimbursement) and through print. (news
release of donating to a community service)
17

Quiz
What is marketing?

Four elements of the promotional mix

Goal or purpose of public relations

Trade promotion vs. consumer promotion

Slotting allowance vs. buying allowance
Contest vs. sweepstakes

Product placement

Loyalty Marketing
18

Chapter 19
Advertising

19

Advertising
TV, radio, magazines, newspapers, store,
World Wide Web, billboards, busses and
even humans
Can be controlled by the company
Allows large number of people to see the
message
The average person is exposed to more
than 2,000 ads per day
20

A Good Advertisement
Should
1. Attract Attention
2. Stimulate interest
3. Develop desire
4. Initiate action

21

Two Types of Advertising

1. Promotional Advertising
designed to increase sales

Introduces new products,

encourages interest in new products,
explains features

2. Institutional Advertising attempts to

create a favorable impression and
goodwill for a business
22

Advertising Drawbacks
Cannot focus on individual needs
Can be too expensive for some
businesses (TV)
Messages are often very short
Can be inefficient not all viewers are
potential customers (Sales Genie)
http://www.youtube.com/watch?v=inB4uInnf4
U&safety_mode=true&persist_safety_mode=1
&safe=active
23

Types of Media
Media: agencies, means, or instruments
used to convey advertising messages to
the public
Four categories
Print
Broadcast
Online
Specialty
24

Print Media
Print media: written advertising
1.
2.
3.
4.
5.

Newspaper
Magazines
Direct mail
Signs
Billboards
25

Print media - Newspaper Ads

Pros to advertising in
the newspaper:
Long Processing
Time
Can Choose
Publication/section
Reaches Large
Audience
Purchased to be
Read

Cons to advertising in
the newspaper:
Visual Message Only
Large Ad Volume
Limits Exposure
Lack of excitement
Hard to Target
Specific Market
Very short life

It is estimated that 55% of U.S. adults read the newspaper daily.

26

Print media - Magazine Ads

Pros to advertising in a
magazine:
Long Processing Time
Can Choose
Publication
Reaches Large
Audience
Purchased to be Read
Longer life span/often
read more than once

Cons to advertising in
a magazine :
Visual Message Only
Large Ad Volume
Limits Exposure
Lack of excitement
Hard to Target
Specific Market
Deadlines are
months before print
27

Print media - Direct Mail Ads

Sent by businesses directly to customers

Pros to direct mail ads:

Highly selective

Control the timing

Choose format

Cons to direct mail ads:

Low level or response
(less than 1%
Items sent to wrong
target audience
Cost is high

28

Print media - Outdoor Ads

Pros to outdoor ads:

Cons to outdoor ads:

Highly visible

More restrictions

Relatively inexpensive

Limited viewing time

24/7 advertising

Unknown audience

29

Print media - Transit (Mobile) Ads

Transit Ads: uses public transportation to advertise
Pros to transit ads:

Cons to Transit ads:

Reaches a wide and

captive audience

Unavailable is small
towns

Economical

Subject to defacement

30

Broadcast Media
Broadcast media: television and radio
1. Television: sound, color, and action
30 or 60 seconds, 30-minute infomercial
Pros to TV ads:
Demonstrate features

and benefits
Target market specific

Cons to TV ads:
Highest production cost

Audience is not
assured (noise)
31

Broadcast Media
Broadcast media: television and radio
2. Radio: reaches 96% of people 12 and older in
a given week

When is the best time to advertise on the Radio?

Pros to radio ads:

Cons to radio ads:

Demographically
Selective

Audio Only

Low Cost
Message can be
Changed Quickly

Listeners Not Fully

Engaged in Listening

Short Life of Message

32

http://www.mallinsongs.com/commercials.htm (Kids Kingdom)

Online Advertising
Online Advertising: placing a message on
the Internetfastest growing
Banner ad: takes the user to the advertisers
webpage if clicked
Pop-Up games that take you to sight
Pros to online ads:
Ease to measure
effectiveness by
counting clicks

Cons to online ads:

People find it annoying
Privacy issues
33

Specialty Advertising
Specialty Advertising: inexpensive, useful
items with advertisers name printed on
them
Pens, magnets, calendars, key chains
Pros to online ads:

Cons to online ads:

Longevity

Distribution is limited

Creates ownership

Size prevents much

info
34

Selection of Media
Advertisers must ask themselves three questions:
1. Does the medium have the ability to present
the product and appropriate business image?
2. Does the medium have the ability to target the
desired customers?
3. Does the medium have the ability to obtain the
desired response rate?
35

Random Funny Picture

36

Media Costs - Newspaper

Factors involved in newspaper rates
Type of ad: Classified or Display
Number or words or lines (classified)
Amount of space used (display)
Run-of-paper: the more you pay the better
spot you get
Use of color
Cost per Thousand (CPM) rate: media cost of
exposing 1,000 readers to the ad
37

Media Costs - Magazine

Factors involved in magazine rates
Circulation
Quality of readership
Production technique
Premium Position
Ceteris paribus, what is the best page to advertise
in a magazine?
Back cover or inside front page

Frequency discounts: the more ads you place,

the less you pay per ad
38

Media Costs - Television

Factors involved in television rates
Time of day
Packages
Viewership
http://www.nielsenmedia.com/nc/portal/site/Publ
ic/menuitem.43afce2fac27e890311ba0a347a
062a0/?show=%2FFilters%2FPublic%2Ftop_t
v_ratings%2Fbroadcast_tv&selOneIndex=0&v
gnextoid=9e4df9669fa14010VgnVCM100000
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39

Media Costs - Radio

Factors involved in radio rates
Type
Network radio adverting
National spot radio advertising
Local radio advertising

Time of day

40

Media Costs - Online

Factors involved in online rates
Type of format
Banner
Rich media enhanced (flash, games)
Button/text links

CPM cost per thousand

41

Cooperative Advertising
Cost sharing arrangement whereby both
suppler and local advertiser pay of
advertising
Pros to Cooperative ads: Cons to Cooperative ads:
Shared expense

Pre-prepared ads

Loss of control over

content
Guidelines each party has
to follow
42

Quiz 3
Four elements of the promotional mix.

Visual Merchandising
Promotional advertisement or an institutional
advertisement?

Four types of advertising media.

Pros and cons or different advertising types
Factors that play into the cost of advertisements

43

Preparing Print
Advertisements
Chapter 20

44

Essential Elements of Advertising

One Part of the Promotional Mix
1st step determine the target audience
you want to reach and how much money
you are willing to spend
2nd step develop an advertising
campaign which involves the creation and
coordination of a series of advertisements
around a particular theme to promote a
product of business.
45

Advertising Agencies

These agencies work jointly with business clients

to develop advertising campaigns.
Full Service Agencies vs. Limited Service
Agencies
Full Service offers advertising research, media
selection, copy development, and artwork
Limited Service offers specialize in one aspect of
the campaign

46

Advertising Agencies Departments

Client Services used to identify
advertising opportunities
Creative Services develops the message
and produces the ads
Research Services studies the target
market to determined the best message to
communicate
Media Service consult clients on their
media choices
47

Developing a Print Ad
1.
2.
3.
4.

Headline
Copy
Illustrations
Signature

Slogan

These 4 elements of a
print ad create a theme
and can be used in
other forms of
marketing media.
48

Headlines
Headline is a saying the gets the readers
attention, arouses their interest by
providing a benefit, and leads them to read
the rest of the ad.

49

Copy
Copy is the selling
message in a written
advertisement.
Expands on the
information from the
headline
Who, what, when, where,
why, and how
Written in an active voice
Ex. This item will save
your life!!!!
50

Illustration and Signature

Illustration is the
photograph or drawing
used in a print ad.
Signature, or logo, is
the distinctive
identification symbol for
a business.
Slogan supports the
signature and is a catch
phrase
51

ILLUSTRATION

HEADLINE

COPY

SIGNATURE
MISSING SLOGAN
52
WHAT IS IT?

Social Media Marketing Strategies

http://www.youtube.com/watch?v=lFZ0z5FmNg&safety_mode=true&persist_safety_mode=1&safe=active

Media Evolution
Social Media

Chat

Digital Media (TV, Internet..)

Print Media

Email

Why the need for Social media?

People love to communicate

Personalization
User Friendly: allows mixing of messages, photos, & videos
Inculcates Inquisitiveness

IDC's recent Social Business Survey indicates that the top 5 reasons end users are conducting social
business initiatives are to:
Acquire knowledge/ask questions
Share knowledge/contribute ideas
Communicate with customers
Create awareness about company product or service
Communicate with internal colleagues

Social Media impact on the business value

chain
Product
Research
Collaboration especially with
Operations/
distributed teams
Delivery
Innovation

Customer influenced offerings

Expert communities shape product
ideas

Marketing
Listening

Co-creation of brand
Insights from social
conversations

Sharing
Conversing

Employee engagement
Recruit through social
channels

HR

Responding

Customer
service
Real-time responses
New tools for customer connect

Sales

Mining social conversations

New tools for persuasion
Building stronger relationships

SOCIAL MEDIA TOOLS

Total Users (in Millions) (as

Sites & Services
on March 2011)
Average age of users
LinkedIn

100+

44

Facebook

640+

38

Twitter

175+

39

Social Media in IT sector

Sites & Services

For Work-Related Purposes

LinkedIn

62%

Facebook

18%

Twitter

13%

Facebook

Linkedin

Twitter

Employees

Followers

Followers

Follows

Accenture

40428

124179

225057

58%

24016

697

IBM news

48756

203507

325242

48%

12651

52

Cognizant

NA

55694

70319

54%

5406

592

L&T Infotech

1161

8141

10157

56%

841

124

Infosys

25645

63037

80917

55%

13595

482

Wipro

4201

52385

66384

44%

7545

253

TCS

3270

89690

103541

48%

8039

103

SOCIAL MEDIA ROI: EXAMPLES

ADIDAS: Used social networks to do guerrilla marketing on mobile (e.g. Facebook,
Twitter, SMS) in and around NBA All-Star Game and increased retail sales 20X goal in Las
Vegas (where All-Star Game occurred
COCA-COLA: Achieved strongest global marketing integration ever with Expedition 206, a
social media promotion where a small group of travel ambassadors went to 206 countries
over 365 days to generate happiness and published on social networks. It enabled
global promotion execution among 3,500 Coca-Cola marketers around the world.
GENERAL MOTORS: Launched FastLane, one of the first blogs personally written by
senior executives. Customer feedback given through a blog saved the company
$180,000/year versus traditional focus group research not to mention the enormous good
will of company executives responding to consumers, not a focus group moderator
EMC: B2B social media effort that achieved business transformation by creating a global
company-wide social community, EMC ONE. This connected and increased collaboration
resulting in double-digit revenue growth in more than 60 countries.
COLGATE: Launched Wisp, disposable toothpaste, through Be More Kissable social
media video campaign (+30 more involvement) that ran on YouTube, Twitter and
Facebook. It achieved reach of 10,000,000+ rivaling mass advertising at small fraction of
the cost.

A SUGGESTED well defined Social Media Policy:

Blogs Posts
Tweets
One-to-One conversation
through Direct messages
Polls
Participation on external Blogs
& Forums

Webinars
Periodic Update
CSR Activities

Reactive
(R)

Events & Media

Industry Events
News
Press Releases
Webinar

Collaborative
Blog Posts
Polls
Forums

Retweets
Thank you notes
Welcome messages
Clarification on queries

Thought Leadership
Case Studies
White Papers
Newsletters

Informative
Presentations
Photos
Audio/Video files
New launches
HR Content

Social Media: Gains & Cost

Gains
Sales Revenue
Consumer Insights
Brand Protection
Lead Generation
Contact Center Operations

Costs
Related to People
Related to Technology

Future roadmap.
Whats next?
Consolidation.

Preference for Single

platform.One for Business and
one for Personal

Social Media

DISCUSSION
What are/do you feel are the best features
of social networking sites such as Twitter,
YouTube, Wikipedia, Blogs, LinkedIn, and
Facebook?

http://www.youtube.com/watch?v=MpIOClX1jPE&safety_mode=true&persist
_safety_mode=1&safe=active

Please respond to the following

questions on our Marketing Blog:
Explain/define: Social Media.
What types of social media do you use on a personal level?
Give one example of how you have seen a company use
social media.
Discuss the advantages/disadvantages of social media.
Give one example of social media stories such as twitter in
the news
CNN/Oprah/Kutcher

Discuss social media as an opportunity to earn money.

Give one example of how new words enter the English
language with the new technology.
For example: Google is now a verb! Google it or google me for
more information about my background.

Examples
LHS Facebook Account!

Ashton Kutchers Twitter

Account

The Sales Process

Chapters 12 - 15

67

Selling
Selling providing customers with goods
and services they want.
Personal selling direct contact occurring
between a salesperson and a customer,
two-way communication sets it apart from
other promotion.

Examples clothing store, car lot

68

Selling
Business to business selling one
business selling to another (wholesale to
retail), (manufacture to wholesale)
Telemarketing selling over the phone,
bad rap lately, Give me your home phone
number and the time you eat dinner and
Ill call you back.

When good? Magazine subscriptions,

phone services, Business to business
69

Feature-Benefit Selling
Feature-benefit selling matching the
characteristics of a product to a
customers needs and wants
Product features attributes of the product
or purchase.
Customer benefits advantages or
personal satisfaction a customer will get
from a good or service
70

Where theres a feature theres a

benefit
My phone
Features: makes calls, displays time, stores phone
numbers
Benefits: can call from anywhere, anytime, do not
need my watch, do not need to carry a little black
book

iPhone features and benefits?

Kleenex
Features: soft/strong
Benefits: does not hurt your nose/does not explode in
hand
71

1. Rational conscious, logical reason for a

purchase, dependability,
time or monetary
Buying Motives
savings, health or safety service and quality
Examples Grocery store, insurance, Cars Buick,
Toyota, Ford

2. Emotional feeling experienced through

association, social approval, recognition,
power, love, prestige.
Examples Grill, $300 Bronco Jacket, Cars
Porsche, F-350 Power Stroke
72

Different Types of Decision Making

Routine decision making high degree of prior
experience, little info needed, low risk
Example groceries, shampoo, toothpaste, other?

Limited decision making item has been

purchased before but not regularly, moderate
risk, more info needed
Example: oil change, hotel, school supplies, others?

Extensive decision making little of no previous

experience with an item, high risk, expensive
Example: buying your first car, wedding, others?
73

What kind of toothpaste to you use?

Deodorant?
Toilet Paper?
Gas station?
Jeweler?
Hair stylist?

It is hard to talk people into change

that

is selling!
74

Preapproach
Preapproach getting ready for the faceto-face encounter
Study your product
Know your industry trends
Research potential customers
Know your companies policies and
procedures
75

Prospecting
Prospecting looking for customers
Prospect lead potential customer
Employer leads
Phone and trade directories
Newspapers and Commercial lists
Customer referrals
Cold Canvassing
Selected at random (door to door)
76

How Leads are Developed

Businesses Advertise
Prospective customers respond
Employers pass on leads
Salespeople act on leads
77

STEPS OF A SALE
1. Approaching the customer
2. Determining needs
3. Presenting the product
4. Overcoming objections
5. Closing the sale

6. Suggestion selling
7. Relationship building
78

Approaching the Customer

1st contact of with the customer
This is where the gate keeper normally
will be
You can make or break the sale in the first
few minutes
3 purposes: begin conversation, establish
a relationship, focus on the merchandise
Be ALERT to potential customers interest
79

Tips for Approaching the Potential

Customer
Treat customer as individual and always use
their name
Be energetic, courteous, respectful
Always sell to the next step
This critical!!! Sell an appointment, sell a suggestion,
sell knowledge, sell the merchandise

3 approach methods in retail

Service ask customer for assistance
Greeting simply welcomes the customer
Merchandise start talking about merchandise
without asking the customer if they want to waited on
80

Determining Needs in Sales

Needs are directly related to buying
motives
Ask questions, listen, ask questions
3 methods to Determine Needs
Observing nonverbal communication
Listening pick up clues to needs
Questioning Who, What, When, How
Always ask Open-ended questions
81

Presenting the Product/Service

This when you get to say, I am the
coolest because..
Always make a plan before you present:
What to show?
What price?
How many different products and services to
show?
What to say and look out for (laymans
terms)?
82

Presenting the Product/Service

Who should demonstrate?
Let your customer try it hands on

What sales aids would use?

Customer testimonials, samples, trials,
guarantees, visual of actual product

83

Objections and Rejections

These include: concerns, hesitations, doubts
These should be viewed as positives because it
gives sales people an opportunity to present
more info to the customer
Objections vs. Excuses objections are honest
and sincere; excuses are insincere reasons for
not buying
Ex. of an excuse: Im too busy to buy.

A true skill is to distinguish between an objection

and excuse.
Sometime when we hear an excuse it is better to
move on to an new potential customer. Do not
waste your valuable time.
84

Objections and Rejections

Answering objections
Repeat the objection to give yourself a
chance to think to answer the objection
tactfully
Think of yourself as consultant trying to help
your potential customers company
When price is objection
Is it worth the cost to change the current status
quo of the potential customer to help that
customers company
Next are you worth the cost compared to
competitors cost and worth if the potential
customer does decide to change

85

Methods to Handling more

Objections
Boomerang an objection can be returned
to the customer in the same way but as a
selling point
Be careful not to sound like the potential
customer is stupid

Question question the potential

customer to learn more about the
objection
Be careful not to ask questions in abrupt
manner, never ask Why not?
86

Methods to Handling more

Objections
Superior Point allows you to admit
disadvantages but then present superior points
to compensate (works good with high prices)
Denial objection is based on misinformation
Demonstration seeing is believing
Third Party involves using previous customers
and experts to help with the sale
87

CLOSING THE SALE

This is how you get paid and is the
ultimate goal
This is an agreement between you and
your new customer
Sales people must be flexible. Just
because there are steps to a sale, it does
not mean you cannot skip some steps to
close the deal
Key to closing the sale is customer
readiness, which can be at any moment 88

Customer Buying Signals

Look for things potential customers will do or say
to indicate readiness to buy
Nonverbal or with words of communication
For example That is exactly what I am looking for.

Trials are nice to get the customer to use the

product/service but a step not highly encourage,
why?
They get to think about it longer and use the
product/service for free.
89

General Rules to Closing the Sale

Begin closing the sale from the 1st moment
of interaction.
Use major objections that have been
resolved as opportunities of closing the
sale.
Create an ownership mentality
Dont talk too much
Ask for the business and then SHUT UP!
You will either get a Yes or an Objection
which is exactly what you are looking for!!!
90

Specialized Methods for Closing

the Sale
Which Close encourage a customer to
make a decision between 2 items
Standing-Room-Only-Close the product,
service, or special is about to run out soon
so buy now
Direct Close ask directly for business
Service Close - create a service that
overcomes an obstacle to close the deal
91

Remember, its a Number game

Keep in mind that even with all the work
and steps you put into the sales process,
closing a deal will not always happen
What to benefit/learn when a deal goes
unclosed. Look at the cup half full.
Learn about Product/service deficiencies
Knowledge of competition
EXPERIENCE
Customer now knows you exist
92

Suggestion Selling
This is selling additional goods or services to the
customer.
Once again consider your self a consultant trying
to help your customers company
The benefits include
Takes less time and effort than initial sale
Fixed costs remain the same despite the extra sale
activity. Its a win, win, win for all 3 parties.

Be careful to stay honest and only sell what the

customer needs.
93

5 Basic Rules for Suggestive

Selling
1. Do suggestion selling after the customer
has agreed to buy, but before payment is
made.
2. Make your recommendation from the
customers point of view and give at
least one reason for the suggestion.
3. Make the suggestion definite.
4. Show the item you are suggesting.
5. Make the suggestion positive.
94

Methods to Suggestion Selling

Offering related merchandise
Related items and accessories

Recommending larger quantities

Most of the time cheaper in long run and
saves an extra trip

Calling Attention to Special Sales

opportunities
Salespeople are obligated to communicate all
sales to customers
95

Relationship Marketing
Involves the strategies businesses use to stay
close to their customers
Customer service can be the most important part
in selling a deal, closing a deal, and keeping a
deal
What happens when something goes wrong?
Helping a customer through a problem often creates
customer loyalty and more business even when the
problem in the first place was your fault

Remember always to follow up

Keep competitors away

Maintain a great relationship
Keep customer updated to new products and features
96
Maybe a customer in the future