Chapter 9 PROMOTION

Objectives

Developing & Managing an Advertising Program Deciding on Media & Meas ring !""ectiveness #ales Promotion P blic Relation Principles o" Personal #elling

Major Decisions in Advertising

Objectives Objectives Setting Setting Budget Budget Decisions Decisions Message Message Decisions Decisions Media Media Decisions Decisions

Campaign Campaign Evaluation Evaluation

Advertising Objectives

Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time
Build BuildPrimary PrimaryDemand Demand

Informative Informative Advertising Advertising

Persuasive Persuasive Advertising Advertising

Build BuildSelective SelectiveDemand Demand

Comparison Comparison Advertising Advertising

Compares ComparesOne OneBrand Brandto to Anot Anot er er

"eeps "eepsConsumers Consumers# # in$ing in$ing About About a aProduct% Product%

!eminder !eminder Advertising Advertising

The $ive Ms o" Advertising

Message Money
'actors to consider(
Message generation Message evaluation and selection Message e+ecution Social&responsibility revie,

Mission
Sales goals Adver& tising objectives

Stage in P)C Mar$et s are and con& sumer base Competition and clutter Advertising fre*uency Product substituta& bility

Measure& ment
Communi& cation impact Sales impact

Media
!eac - fre*uencyimpact Major media types Specific media ve icles Media timing .eograp ical media allocation

Advertising % dget $actors

Mar$et S are / Consumer Base Stage in t e Product )ife Cycle Competition / Clutter

Product Substitutability

Advertising 're*uency

Profiles of Major Media Types

0e,spapers
Advantages( 'le+ibility- timeliness1 good local mar$et coverage1 broad acceptance- ig believability )imitations( S ort life1 poor reproduction *uality1 small pass&along audience

#elevision

Advantages( Combines sig t- sound- motion1 ig attention1 ig reac 1 appealing to senses )imitations( 2ig absolute costs1 ig clutter1 fleeting e+posure1 less audience selectivity

Direct Mail

Advantages( Audience selectivity1 fle+ibility- no ad compe& tition ,it in same medium1 allo,s personali3ation )imitations( !elative ig cost1 4jun$ mail5 image

Profiles of Major Media Types

!adio
Advantages( Mass use1 ig geograp ic and demograp ic selectivity1 lo, cost )imitations( Audio only1 fleeting e+posure1 lo,er attention1 nonstandardi3ed rates1 fragmented audiences

Maga3ines

Advantages( 2ig geograp ic and demograp ic selectivity1 credibility and prestige1 ig &*uality reproduction1 long life1 good pass&along readers ip )imitations( )ong ad purc ase lead time1 ,aste circulation1 no guarantee of position

Outdoor

Advantages( 'le+ibility1 ig repeat e+posure1 lo, cost1 lo, message competition )imitations( )ittle audience selectivity1 creative limitations

Classi"ication o" Advertising Timing Patterns

Concen& trated

)evel 678

!ising 698

'alling 6:8

Alternating 6;8

6?8
Continuous

6>8

6=8

6<8

Inter& mittent

6@8 6@8

67A8

6778

6798

0umber of messages per mont

Mont

Advertising Strategy
Message E+ecution
#urning t e 4Big Idea5 Into an Actual Ad to Capture t e #arget Mar$etBs Attention and Interest%
#estimonial #estimonial Evidence Evidence Scientific Scientific Evidence Evidence #ec #ec nical nical E+pertise E+pertise Personality Personality Symbol Symbol Slice Sliceof of)ife )ife )ifestyle )ifestyle 'antasy 'antasy Mood Moodor or Image Image

Typical Typical Message Message Execution Execution Styles Styles

Musical Musical

Advertising Evaluation
Advertising Advertising Program Program Evaluation Evaluation

Communication Communication Effects Effects

Is Istt e eAd AdCommunicating CommunicatingCellD CellD

Sales Sales Effects Effects

Is Istt e eAd Ad Increasing IncreasingSalesD SalesD

&h' the increase in #ales Promotion(

)ro*ing retailer po*er Declining brand lo'alt' Increased promotional sensitivit' %rand proli"eration $ragmentation o" cons mer mar+et #hort,term "oc s Increased managerial acco ntabilit' Competition Cl tter

)ong&#erm Promotional Allocation

Ft of total & : yr%MA >A ?A ;A :A 9A 7A A 7@<> << @A @9 @; 7@@>

#rade Promo Media Adv Cons% Promo

Eear Cox Direct 19th Annual Survey of Promotional Practices

Channels o" #ales Promotions

MANUFACTURER Push Trade Promotions RETAILER Push Retail Promotions CONSUMER Consumer Promotions Pull

Consumer Promotion
Consumer&Promotion Objectives
Entice EnticeConsumers Consumersto to #ry #rya a0e, 0e,Product Product )ure )ureCustomers CustomersA,ay A,ay 'rom 'romCompetitorsB CompetitorsBProducts Products .et .etConsumers Consumersto to4)oad 4)oadGpB GpB on ona aMature MatureProduct Product 2old 2old/ /!e,ard !e,ard )oyal )oyal Customers Customers Consumer Consumer!elations !elations ip ip Building Building

Consumer&Promotion #ools
Samples Samples Coupons Coupons Cas Cas !efunds !efunds Price PricePac$s Pac$s Premiums Premiums Advertising Advertising Specialties Specialties Patronage Patronage !e,ards !e,ards Contests Contests S,eepsta$es S,eepsta$es .ames .ames

Point&of&Purc Point&of&Purc ase ase Displays Displays

Deal Proneness-
.iechtenstein- % rton- & Neteme'erJournal of Retailing- # mmer /990

!1amination o" deal proneness among cons mers in a s permar+et setting # rve's & )rocer' Receipts sed !ight t'pes o" deals2

Cent,o""- One,"ree- )i"t- Displa'Rebate- Contest- #ale- & Co pon

Deal Proneness-
.iechtenstein- % rton- & Neteme'er
Cl ster anal'sis 'ielded t*o interpretable res lts2 394 are deal prone- 5/4 not 634 7igh Deal prone- 584 intermediate- 694 deal insensitive Deal,proneness a generali:ed constr ct , ;crosses t'pe o" promotion< =o nger & .ess ed cated more li+el' to be deal prone

Trade Promotions
#rade&Promotion Objectives
Persuade Persuade!etailers !etailersor or C C olesalers olesalersto toCarry Carrya aBrand Brand .ive .ivea aBrand BrandS S elf elfSpace Space Promote Promotea aBrand Brandin in Advertising Advertising Pus Pus a aBrand Brandto toConsumers Consumers

#rade&Promotion #ools
Price&Offs Price&Offs Allo,ances Allo,ances Buy&Bac$ Buy&Bac$ .uarantees .uarantees 'ree 'ree.oods .oods Contests Contests Premiums Premiums Patronage Displays !e,ards Discounts Discounts Pus Pus Money Money Specialty Specialty Advertising Advertising Items Items

% siness,to,% siness Promotion

Business&Promotion Objectives
.enerate .enerateBusiness Business)eads )eads Stimulate StimulatePurc Purc ases ases !e,ard !e,ardCustomers Customers Motivate MotivateSalespeople Salespeople

Business&Promotion #ools
Conventions Conventions #rade #radeS S o,s o,s Sales SalesContests Contests

Major Public Relations Tools

Public Public Service Service Activities Activities Ceb CebSite Site 0e,s 0e,s

Corporate Corporate Identity Identity Materials Materials Audiovisual Audiovisual Materials Materials

Speec Speec es es

Critten Critten Materials Materials

Special Special Events Events

&hen might 'o decide to se Personal #elling(

Tight b dget ;straight commission< Concentrated Mar+et

$e* b 'ers 7igh val e prod ct

Prod ct m st be c stomi:ed Personal contact important M st demonstrate prod ct Prod ct involves trade,in> p

Designing t e Sales 'orce

Sales Sales force force objectives objectives Sales Sales force force strategy strategy Sales Sales force force structure structure Sales Sales force force si3e si3e Sales Sales force force compensation compensation

#ales $orce #tr ct res

Territorial Product

Market

Complexity

Workload Approach to Sales orce Si!e

Classi"' c stomers b' si:e Determine desirable call "re? encies Determine total sales calls needed per 'ear Determine average n mber o" sales calls per sales representative per 'ear Divide total b' n mber per rep

#ales $orce Compensation

$i1ed @ariable !1pense Allo*ances %ene"its

Managing t e Sales 'orce

!ecruiting !ecruiting / / selecting selecting sales sales representatives representatives #raining #raining sales sales representatives representatives Supervising Supervising sales sales representatives representatives Motivating Motivating sales sales representatives representatives Evaluating Evaluating sales sales representatives representatives

Time and D t' Anal'sis

Preparation Preparation Administration Administration Travel Travel

Selling Selling Waiting Waiting

Food & & Breaks Breaks Food

#ales Representative Motivation

Motivation # ort Per ormance !e"ards Satis action

#valuating Salespeople

Call Call !eports !eports

Cor$ Cor$ Plan Plan

Sources Sources of of Information Information

Annual Annual #erritory #erritory Mar$eting Mar$eting Plan Plan

Improving Sales 'orce Effectiveness

#raining #raining in in sales sales tec tec ni*ues ni*ues / / professionalism professionalism 0egotiation 0egotiation s$ills s$ills !elations !elations ip&building ip&building s$ills s$ills

The Aone o" Agreement

Hone of agreement SellerBs surplus BuyerBs surplus

s SellerBs reservation price 6seller ,ants s or more8 Seller ,ants to move x to t e rig t

'inal contract

b BuyerBs reservation price 6buyer ,ants b or less8

Buyer ,ants to move x to t e left

Per"ormance !val ation

C rrent,to,Past C stomer #atis"action B alitative !val ation

Ste s in t!e Sellin" Process

Step Step7% 7% Prospecting Prospectingand and Jualifying Jualifying
Identifying and Screening 'or Jualified Potential Customers% )earning )earningAs AsMuc Muc As AsPossible Possible About Abouta aProspective ProspectiveCustomer Customer Before BeforeMa$ing Ma$inga aSales SalesCall% Call% "no,ing "no,ing2o, 2o,to toMeet Meettt e eBuyer Buyer to to.et .ettt e e!elations !elations ip ipOff Off to toa a.ood .oodStart% Start% #elling #ellingtt e eProduct Product4Story5 4Story5 to tott e eBuyerBuyer-and andS S o,ing o,ingtt e e Product ProductBenefits% Benefits%

Step Step 9% 9% Pre&approac Pre&approac

Step Step:% :% Approac Approac

Step Step;% ;%PresentationK PresentationK Demonstration Demonstration

Ste s in t!e Sellin" Process

Step Step?% ?% 2andling 2andlingObjections Objections
See$ing Out- Clarifyingand Overcoming Customer Objections to Buying%

Step Step >% >% Closing Closing

As$ing t e Customer for t e Order%

Step Step=% =% 'ollo,&Gp 'ollo,&Gp

'ollo,ing Gp After t e Sale to Ensure Customer Satisfaction and !epeat Business%

Alternative #teps2
'ind Bem Bem 'ind
.rab Lem Lem .rab S o, o, Lem Lem S Ans,er Lem Lem Ans,er

Sell Lem Lem Sell "eep Lem Lem "eep