SALES AND MARKET
MECHANISMS
Lecturer: FARIA, Sílvia
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SALES AND MARKET MECHANISMS
7 th CLASS
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THE PROMOTIONAL MIX
OK!
OK!
OK!
Merchandising
OK!
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REMEMBERING
- BUZZ MARKETING – TO COMPLETLY ALLOW YOU
TO DISTINGUISH FROM VIRAL MARKETING OR SIMPLE WORD OF MOUTH
–
Buzz marketing is something that is not directly presented as advertising, MAINLY
because it doesn’t have the direct objective of selling anything, just creating
comments and discussion about some topic or product.
For example, when an author places a scene in the soap opera especially to create
The idea
is that people start to discuss, comment on what
happened on social networks and, indirectly, result in a
controversy (like a nude scene) it is an example of buzz marketing.
greater audience for the soap opera.
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M
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WHAT IS MERCHANDISING?
Marketing area and techniques with the purpose to increase the
profitability of the Point of Sale.
ACTIVITIES TO STIMULATE BUYING at the point of sale.
GROUP OF MATERIALS AND COMERCIAL TECNHIQUES that allow a
brand to offer a Product or Service in the best conditions, catching the
attention of the Final Client.
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presenting a product, helping to
sell it and to increase profitability; it is THE GROUP PF
ACTIONS AND MATERIALS that are developed at
stores, putting the product in the right place, for a
specific period of time, with the most convenient
Price, Quantity and Quality.
A group of techniques concerned in
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MERCHANDISING WANTS TO:
a)
b)
c)
d)
GIVE MORE VISIBILITY
GIVE MORE VISIBILITY
GIVE MORE VISIBILITY
GIVE MORE VISIBILIT
POINT OF SALE.
TO A
TO A
TO A
AND
PRODUCT;
SERVICE;
BRAND;
PROMOTE GOOD PERCEPTIONS ABOUT THE
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THEREFORE…
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MERCHANDISING OBJECTIVES:
3 MAIN PURPOSES:
1. TO SELL MORE AND BETTER;
2. TO INCREASE THE NUMBER OF CONSUMERS;
3. TO REDUCE COSTS.
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MERCHANDISING AND THE STORES’AREAS -
The interior of a store is carefully
planned.
Main rule: make it easy to circulate.
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“Space responsible” also pays attention to:
- Buying frequency;
- Complementary products (to put them close to the “initial”
ones);
- Brands’ awareness;
- Products’ volume (so that the space on shelves is correctly
managed and products appear in a nice way).
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THE SHELF HEIGHT IS ALSO CAREFULLY PLANNED –
- IN THE LINE OF OUR EYES ARE THE MOST SELLED PRODUCTS;
-IN THE HIGHEST SHELVE ARE THE PRODUCTS FOR MARKET
NICHE (loyalty clients);
BOTTOM SHELVE ARE THOSE PRODUCTS WITH
MEDIUM SEARCH BUT THAT USUALLY HAVE A LOWER PRICE…
-IN
THE
Exception for rise, sugar, pasta…
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HOW TO PRESENT PRODUCTS INSIDE A STORE –
1. VERTICAL PRESENTATION;
2. HORIZONTAL PRESENTATION;
3. PALET’S PRESENTATION;
4. OTHER WAYS INSIDE THE STORE (EX.: Exhibitors).
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VERTICAL
PRESENTATION
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Horizontal Presentation
THE BIG ISSUE IS:
TO OFFER SOLUTIONS…
&
CREATE POSITIVE EMOTIONS, ASSOCIATED TO THE BUYING
PROCESS AT THE POINT OF SALE.
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ANIMATION THE POINT OF SALE
It is important to create animating moments at stores. This
can be done altogether with suppliers in punctual actions at the
distributor’ stores.
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IN PRACTICE…
Physical ways –Islands, Shelve’ Tops, Promoting Stands,
Tasting actions, Exhibitors along the stores, Chimneys,
Palletes, etc.
Psichological ways – Low prices, Coupons, Packs, Gifts…
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Media Stimulus – Thematic environments or personages
(ex.: Thematic trade shows; Popota; Rick & Rock).
Human resources – Promoter teams, etc.
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PROMOTIONS: can be done by:
Allowing free cost trying (SAMPLES);
Price temporary reductions:
 Rewards, Offers, Gifts;
 Contests;
 Games and Raffles (ex.: scratch card).
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MAIN MATERIALS –
PALETTES
Shelves Tops
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PALETTS/ISLANDS – IN THE MIDDLE OF THE MAIN
CORRIDOR (CENTRAL CORRIDOR)
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PROMOTERS WITH SAMPLES AND OR ALLOWING TO TOUCH,TRY
AND TASTE THE PRODUCTS.
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STICKERS ON THE FLOOR;
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STANDS;
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HIGH PROMOTIONAL STANDS;
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STOPPERS
(above the eyes’line)
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TAKE-ONE;
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Leaflets;
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BANNERS;
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MATERIALS TO DEVELOP CONTESTS;
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STICKERS/WOOBLERS
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Virtual Screens…
Augmented reality…
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TESTERS;
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CROSS-SELLING STICKERS
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DISPENSERS;
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DISPLAYS/EXHIBITORS:
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STICKERS FOR PRICES
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GONDOLA TOPS
SUMMARIZING…
❑THE STORE’S LAYOUT;
❑VARIOUS MATERIALS FOR SUPORT;
❑LIGHT;
❑DISPLAYS, PANNELS AND SINALETIC;
❑ MUSIC;
❑ GENERAL TEMPERATURE AND SMELLS;
❑ CATALOGS, LEAFLETS…
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And
WHY?
SIMILAR PRODUCTS…
SIMILAR PRICES…
APROX. THE SAME QUALITY…
ALL WANT AND NEED TO BE SEEN!
“THOSE WHO DO NOT SHOW
THEMSELES…ARE FORGOTEN!”
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A GOOD EXAMPLE:
INNOVATE
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AND NOTICE:
RULE N. 1: CREATE POSITIVE EMOTIONS;
RULE
N. 2: SHOW THE PRODUCTS AND/OR SERVICES BY
ORDER;
RULE N. 3: UNDERSTAND THE IMPORTANCE OF ON AND OFFLINE
STORES…
Rule N. 4: DON’T FALL ASLEEP… BE A CREATIVE… POLINIZE;
LISTEN TO YOUR B2B CLIENTS AND ADOPT PRETAIL;
Rule N. 5: DARE TO…
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PERSONAL SELLING – adding information –
Personal selling is
buyers
oral communication with potential
of a product or service, with the intention of making a sale.
It is one of the oldest form of promotion.
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Personal Selling- The interpersonal part of the Promotion Mix can inlude:
- Face-to-face communication;
- Telephone Communication;
- Vídeo or Web conferencing.
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WHEN IS IT MORE USEFULL?
- When a Company has
campaign;
small budgets
to carry on an advertising
market is mature and concentrated;
When the product demands for a high price (more perceived
risk);
When the product requires demonstration or specific
thecnic explanations;
When the product/service mus be fitted (cutomized) to the
- When the
-
-
-
individual needs.
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THE SALES PROCESS –
Following the AIDA concept:
Attention;
Interest;
Desire;
Action.
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ADVANTAGES OF USING PERSONAL SELLING –
- Personal selling is face to face
high degree of personal attention:
activity;
customers get a relatively
message can be customized;
It is a good way to gath and get across large amounts of
information about products/services;
Allows to demonstrate products/services;
Frequent meetings and/or personal visitis help in building long term
relationships.
- The sales
-
Ex.s: PROSSEGUR; SECURITAS DIRECT; VODAFONE…
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DISADVANTAGES OF USING PERSONAL SELLING –
- (High)
Costs of employing the sales force;
- Basic pay
motivated;
incentives
need
- A Sales person can only call on
to
be
provided
to keep
employees
one customer at a time.
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STEPS IN PERSONAL SELLING –
Source: Adapted from https://pt.slideshare.net/deepu2000/personal-selling69710870, retrieved in 05/11/2021
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STEPS IN THE PERSONAL SELLING PROCESS1- Prospecting.
Identification of qualified
-
potential clients
through:
Actual customers indications;
Suppliers information;
Distributors information;
Internet (Leads).
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2- Qualifying
identifying good customers and deciding on
which to “let go” through:
Consists in
-
Financial capacity;
Volume of business;
Needs;
Location;
Growth - potential;
Positioning.
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3- Preapproach
Learning and getting as much information as possible
about a prospect (or lead), including needs, who is involved in the buying
process + characteristics and Styles of the buyers through:
- Personal visit;
- Phone cal;
- Letter/E-mail.
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4- Approach
The salesperson
attention:
meets and greets the buyer, convincing him to pay
- Appearance;
- Explaining – company and products/services;
- Follow-up remarks.
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5- PRESENTATION
The salesperson tells everything about the products to the
buyer, presenting customer benefits and showing how the product
solves/can solve the customer’s problems.
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6- NEGOTIATION
Handling (possible) objections
(arguing… in a polite way).
7- CLOSING
The salespeople recognize signals from the buyer incljuding physical actions,
comments, questions… - to ask for a
order and finalize
the sale process.
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8- FOLLOW-UP
The last but not the least: the after sale follow-up to ensure
customer satisfaction and repeat business/comercial transactions, if that
is the case (according to the type of products and/or clients).
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PLACE – ANOTHER ELEMENT OF THE MKT.-MIX –
TO MAKE PRODUCTS AVAILABLE IN THE RIGTH PLACE AT THE
RIGHT TIME IN THE RIGHT QUANTITIES AND CONDITIONS.
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EACH MEMBER IN DISTRIBUTION CHANNEL IS CALLED AN
“INTERMEDIARY”
Producer
Producer
Wholesaler
Distributors/
Agents
Long
Channel
(indirect)
Producer
Short Channel
(Direct)
Retailer
Customer
Customer
Customer
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WHY IS THIS
P IMPORTANT?
Because Intermediaries have the following Functions,
helping Producers:
❖CHOOSING WHERE TO PUT OUR PRODUCTS OR SERVICES
AND, AS A CONSEQUENCE, “OUR PARTNERS” AS FAR AS DISTRIBUTION,
PROVIDES A LINK
CONSUMPTION;
BETWEEN
PRODUCTION
AND
“PARTNERS” ALLOW COMPANIES TO GET BETTER AND
MORE INFORMATION ABOU THE MARKET;
❖HAVING
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❖“PARTNERS” MAKE IT EASY AND LESS EXPENSIVE FOR
COMPANIES TO TRANSPORT AND STORE PRODUCTS
(“PARTNERS” WILL DIVIDE COSTS WITH THE COMPANY, SINCE THEY
ALSO STOCK PRODUCTS);
❖“PARTNERS” WILL ASSUME SOME RISK (eg.: NOT SALE…).
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MAIN CHANNEL STRATEGY DECISIONS –
❖THE CHANNEL LENGHT –
❖CHOICE OF
Exclusive.
Direct or Indirect?
THE INTERMEDIARY(IES) – Intensive, Selective or
❖USE ONE OR SEVERAL
VENDING; E-COMMERCE?);
CHANNELS
❖HOW TO MOVE THE GOODS
(ex.: HORECA; RETAIL;
THROUGH THE CHANNEL(S)?
❖HOW TO CONTROL THE CHANNEL – ex.: Who decides price? Who
decides Promotion? Who decides Packaging?
❖OMICHANNEL, MUST MORE THAN JUST MULTICHANNEL.
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1- DIRECT OR INDIRECT CHANNELS?
THE PRODUCER AND THE FINAL
CONSUMER DEAL DIRECTLY WITH EACH
OTHER, WITHOUT THE INVOLVEMENT OF AN INTERMEDIARY; EX.:
-DIRECT
-
ZARA.
-INDIRECT
–
INVOLVES
INTERMEDIARIES
WORKING
WITH
BETWEEN
PRODUCER
AND
CONSUMER;
EX.:
SKIP;
NIVEA;
DOVE...
THROUGH
SUPERMARKETS, CASH & CARRIES…).
- COMBINED
CONSUMERS
– YOU CAN
FINAL
HIPER,
SALE DIRECTLY TO THE FINAL
(HAVING AN ONLINE AND/OR OFFLINE STORE) AND
STILL ALLOW SOME OTHER “MULTIBRAND” STORES TO HAVE YOUR
PRODUCTS. EX.: LEVIS; SALSA; GUESS…).
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SHORT CHANNELS (less B2B Clients) ARE MORE
USED FOR…
•EXPENSIVE AND COMPLEX PRODUCTS;
•CUSTOMIZED PRODUCTS;
•PRODUCTS SOLD IN GEOGRAPHICALLY CONCENTRATED MARKETS.
&
•A NEW PRODUCT ENTERING THE MARKET – INTRODUCTION/PRODUCT LIFE
CYCLE… Remember?...
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LONG CHANNELS (more B2B Clients) ARE MORE
USED FOR…
•CONVENIENCE GOODS (MASS MARKET);
•INEXPENSIVE AND SIMPLE GOODS;
•STANDARDISED PRODUCTS;
•GOODS SOLD IN DISPERSED MARKETS.
&
•GOODS IN THE MATURE STAGE ☺
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PLACE (vs number of intermediaries)– in simple
words:
- Intensive;
- Selective
(Combined – eg. HORECA and RETAIL…);
- Exclusive.
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Only in One Intermediary… EX.: Toys are Us have some toys that
You can not find anywhere – ex.: Angry Birds Toy with “fixing” A.
Birds…
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- THE ACTUAL CONSUMER – 1ST
INSIGHTS –
BLENDED CONSUMER –
Consumers are naturally BLENDED, i.e., THEY SEARCH FOR INFORMATIONS
ONLINE AND BUY OFFLINE AND/OR SEARCH FOR INFORMATIONS OFFLINE
AND BUY ONLINE.
THEY TRY AND SEE PRODUCTS OFFLINE (PHYSICAL STORES), COMPARE
PRICES AND PROMOTIONS ONLINE AND THEY DECIDE WHERE TO BUY
ACCORDINGG TO THE BETTER CONDITIONS (Lendrevie et al, 2015).
ALL MOBILE SOLUTIONS THAT ALLOW CONSUMERS, EVEN INSIDE A PHYSICAL
STORE, TO HAVE COMPLETE INFORMATION ABOUT THE PRODUCTS AND
SERVICES, ARE ENHANCERS OF THIS TYPE OF BEHAVIOR).
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THE EXPRESSION OMNICHANNEL REFLECTS, PRECISELY, THE NEED FOR
BRANDS TO BE PRESENT IN “ALL” CHANNELS, THAT ARE CONECTED.
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Source: adapted from Sanderson
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OMNICHANNEL
• ADVANTAGES:
AN OMNYCHANNEL POSTURE INCREASES THE COMPANIES VISIBILITY
ABOUT CLIENTS AND PRODUCTS AND SERVICES’ PORTFOLIO, LEADING
CLIENTS TO BASE THEIR DECISIONS IN SOLID DATA, THEREFORE, WITH
LESS PERCEIVED RISK.
(More sales and More profit).
O NOVO CONSUMIDOR ESTÁ SEMPRE CONECTADO
OMNICHANNEL
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FUTURE STRATEGIES AND PERSPECTIVES
O NOVO CONSUMIDOR ESTÁ SEMPRE CONECTADO
OMNICHANNEL STRATEGY
Pushing to buy online
In-between
The consumer decides where to buy
WITH the same experience
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OMNICHANNEL: CHALLENGES FOR TODAYS BRANDS –
1- Unique Vision about the Client (CRM & Enterprise Resource Planning).
2- Coherence between channels (same experience, consensual information,
global Strategy).
3- Be present in non traditional touching points (ex.: Apps; Mobile…).
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UNIQUE VISION OF THE CLIENT (R.O.P.O.) –
SEARCH, COMPARES AND READS ABOUT PRODUCTS!
The “mobile generation” is having more purchasing
Power; Social Shopping = purchases precedded by a lot of
information: magazines, blogs, social media, Web sites, etc.
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IN AN OFFLINE STORE (Physical Store) LOOKS FOR
INFORMATION ON SMARTPHONES, establishing up to date
comparisons (prices; promotions; features…).
COEHERENCE BETWEEN CHANNELS
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CONSISTENT COMMUNICATION (The Brand’s Values (sms, apps, social media, traditional
media, web site…).
- PRODUCTS AND SERVICES (variety);
- PRICES (and Sales Promotions…);
- SERVICES;
- QUALITY;
- VALUE ADDED PROPOSITION.
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“Omni-channel
means seeing things from a consumer’s point of view, not from the comfort of
your own business boundaries.
It means interacting with customers via their three channels of exploration: social, mobile
and local, at every stage of the purchasing process”.
Darren Hitchcock - Econsultancy
NEW TRENDS –
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• RETAILTAINMENT =
IS ABOUT PROMOTING ENTERTAINMENT IN THE PHYSICAL STORES…
THE USE OF ENVIRONMENT, EMOTION, SOUND AND MOOVEMENT TO ENHANCE
CUSTOMER ATTENTION AND MAKE HIM CURIOUS, WILLING TO STAY LONGER
INSIDE THE STORE… IN CONTACT WITH ITS PRODUCTS AND SERVICES.
Eg.:
In October 2017, Apry Ivil was at a Tezennis Store – Colombo Shopping Center - presenting
her new CD and singing alive for clientes. It was a memorable day that created a lot of
positive word-of-mouth.
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• POP-UP STORE
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SMALL SHOPS (SMALLER THAN USUAL…) THAT APPEAR UNEXPECTEDELLY TO
CONSUMERS AND HAVE A LIMITED TIME OF EXISTENCE.
POP-UP RETAIL fits right in with the Entertainment Economy, the Experience Economy, the Surprise
Economy, and so on. It's about surprising consumers with temporary 'performances', guaranteeing
exclusivity because of the limited timespan. In http://trendwatching.com/
TO OFFER A ENTIRE NEW
EXPERIENCE TO THE
CLIENTS
• TO OFFER AN ENTIRE NEW EXPERIENCE TO CLIENTS
“A CHANGE IN PARADIGM – FROM POINT OF SALE TO POINT OF EXCITEMENT”!
(Stores as Show-rooms)
Examples
MERCADO DO BOM SUCESSO – You can go there and you will have concerts,
DJ’s, Musique alive… ex.: Next Hallowenn.
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A Rose Bike – Allows clients to have a “diferente” bycicle, by allowing mass
customization… you choose what you want, they ask you waite for 30-30 minutes
and after the product is finished, they allow you to try it in a virtual virtual track,
with simulation of various types of terrain and slopes, in order to realize the
performance of the bicycle.
• MOOVING FROM JUST ONLINE TO OFFLINE (ALSO)
Eg.s:
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• eBay have opened their 1st physical store recently;
• Warber Parker opens a Retail Store (Prescribed glasses and Sunglasses);
• Google opened first ever google Shop in London;
• Amazon is opening in 2018 its 1st cashier-less retail store (a cashier-less grocery store in Seatle).
• HYBRID SHOPS
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In the same space, stores combine several áreas with diferente business and not
exactly complementary products or services.
Ex.: a bookstore with a restaurant … a Barber Shop with furniture to sell.
a Jazz record store that also sells wines…
Eg: MISS PAVLOVA
Miss Pavlova Cake & Co. (CREATED IN 2015) at Rua do Almada, Porto – DREAM DESSERTS + SPACE FOE SELLING VINTAGE PRODUCTS,
SOUVENIRS AND ORIGINAL CLOTHES.
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Source: adapted from slides of Mkt do Ponto de Venda and MKT Dist., ISCAP
• SHOP IN SHOP
87is used when the owner of a brand takes up a space or a stand
This concept
inside another store or retail space.
There are innumerable benefits to both brand owners and the owner of the retail space
or store (eg shared costs, shared marketing and attracting new visitors, offering new
experiences, etc.)
EXERCISE
Women’Secret opens a new store
by Ana Rita Costa
Women’Secrt opened on the 20th of October a new
store at Alameda Shop & Spot, in Oporto.
The store has 150 square meters and presents a similar
layout to the last opened stores, with a dynamic
organization by sections – underwear, sleeping clothes
and home wear -; this layout allows an intuitive selection
of what to buy, says the brand.
This is the brands’ number 52 store in Portugal.
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1. Suggest a Retailtainement action to initiate Christmas Season at this Store. Show it also in images.
2. Suggest a POP UP Store (create the image…) for this brand and tell me where will you put it, for a
week presentation, from the 1st November, Untill the 26 of December. Show it also in images.
3. Suggest a shop in shop action: at which Shopping Centers and How? Show it also in images.
4. Suggest an Hybrid Store to become the number 53: where and how? Show it also in images.
5. Define Blended Consumer and explain what must the brand do in order to catch his attention – give
me practical exemples concerning Website and Social Media.
Thanks!
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SYLLABUS:
Chap. 4. Marketing-mix and Strategy: product, price, promotion, place, persons,
processes and physical evidences; PLC; BCG; Consumption Tendencies: the
Blended Consumer; Retailtainement; Shop in Shop; Hybrid Stores.
OK!
Chap. 5: Consumer Behavior - the 2021/22 consumer.
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SALES
&
MARKET
MECHANISMS
Lecturer: Sílvia Faria
Thanks for coming!
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SALES & MARKET
MECHANISMS – 7 TH CLASS
FARIA, SÍLVIA
ISCAP
3:00H
slvfaria@gmail.com
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