Chapter 9 PROMOTION
Objectives
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Developing & Managing an Advertising
Program
Deciding on Media & Measuring
Effectiveness
Sales Promotion
Public Relation
Principles of Personal Selling
Major Decisions in Advertising
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
Advertising Objectives
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Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Informative Advertising
Persuasive Advertising
Build Primary Demand
Build Selective Demand
Comparison Advertising
Reminder Advertising
Compares One Brand to
Another
Keeps Consumers Thinking
About a Product.
The Five Ms of Advertising
Message
Mission
Sales
goals
Advertising
objectives
Money
Message generation
Factors to
consider:
Message evaluation
and selection
Stage in PLC
Message execution
Market share
and consumer base
Competition
and clutter
Advertising
frequency
Product
substitutability
Social-responsibility
review
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles
Media timing
Geographical
media allocation
Measurement
Communication
impact
Sales
impact
Advertising Budget Factors
Market Share &
Consumer Base
Stage in the
Product Life Cycle
Product
Substitutability
Competition &
Clutter
Advertising
Frequency
Profiles of Major Media
Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; small
pass-along audience
Television
Advantages: Combines sight, sound, motion; high attention;
high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;
less audience selectivity
Direct Mail
Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
Profiles of Major Media
Types
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized rates; fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation;
no guarantee of position
Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition
Limitations: Little audience selectivity; creative limitations
Classification of
Advertising Timing Patterns
Concentrated
Level
(1)
Rising
(2)
Falling Alternating
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(9)
(10)
(11)
(12)
Continuous
Intermittent
Month
Number of
messages
per month
Advertising Strategy
Message Execution
Turning the “Big Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.
Testimonial
Evidence
Scientific
Evidence
Technical
Expertise
Personality
Symbol
Slice of Life
Lifestyle
Typical
Message
Execution
Styles
Musical
Fantasy
Mood or
Image
Advertising Evaluation
Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
Why the increase in Sales
Promotion?
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Growing retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Increased managerial accountability
Competition
Clutter
%t of total - 3 yr.MA
Long-Term Promotional
Allocation
60
50
40
30
20
10
0
Trade Promo
Media Adv
Cons. Promo
1986
88
90
92
94
1996
Year
Cox Direct 19th Annual Survey of Promotional Practices
Channels of Sales Promotions
MANUFACTURER
Push
Trade
Promotions
RETAILER
Push
Retail
Promotions
CONSUMER
Consumer
Promotions
Pull
Consumer Promotion
Consumer-Promotion
Objectives
Entice Consumers to
Try a New Product
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building
Consumer-Promotion
Tools
Samples
Coupons
Cash Refunds
Advertising
Specialties
Patronage
Patronage
Rewards
Rewards
Contests
Price Packs
Premiums
Sweepstakes
Games
Point-of-Purchase
Displays
“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer,
Journal of Retailing, Summer 1997
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Examination of “deal proneness” among
consumers in a supermarket setting
Surveys & Grocery Receipts used
Eight types of deals:
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Cent-off, One-free, Gift, Display, Rebate,
Contest, Sale, & Coupon
“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer
Cluster analysis yielded two interpretable results:
 49% are “deal prone,” 51% not
 24% High “Deal prone,” 50% intermediate,
26% deal insensitive
 “Deal-proneness” a generalized construct (crosses type of promotion)
 Younger & Less educated more likely to be
deal prone
Trade Promotions
Trade-Promotion
Objectives
Trade-Promotion
Tools
Persuade Retailers or
Wholesalers to Carry a Brand
Price-Offs
Premiums
Give a Brand Shelf Space
Allowances
Patronage
Displays
Rewards
Promote a Brand in
Advertising
Buy-Back
Guarantees
Discounts
Push a Brand to Consumers
Free Goods
Contests
Push Money
Specialty
Advertising
Items
Business-to-Business
Promotion
Business-Promotion
Objectives
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Business-Promotion
Tools
Conventions
Trade Shows
Sales Contests
Major Public Relations Tools
Web Site
Public
Service
Activities
News
Speeches
Corporate
Identity
Materials
Audiovisual
Materials
Written
Materials
Special
Events
When might you decide to use
Personal Selling?
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Tight budget (straight commission)
Concentrated Market
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Few buyers
High value product
Product must be customized
Personal contact important
Must demonstrate product
Product involves trade-in/up
Designing the Sales Force
Sales force objectives
Sales force strategy
Sales force structure
Sales force size
Sales force compensation
Sales Force Structures
Territorial
Market
Product
Complexity
Workload Approach to Sales
Force Size
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Classify customers by size
Determine desirable call frequencies
Determine total sales calls needed per
year
Determine average number of sales
calls per sales representative per year
Divide total by number per rep
Sales Force Compensation
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Fixed
Variable
Expense Allowances
Benefits
Managing the Sales Force
Recruiting & selecting sales
representatives
Training sales representatives
Supervising sales representatives
Motivating sales representatives
Evaluating sales representatives
Time and Duty Analysis
Preparation
Administration
Travel
Selling
Food & Breaks
Waiting
Sales Representative
Motivation
Motivation
Effort
Performance
Rewards
Satisfaction
Evaluating Salespeople
Call
Reports
Work
Plan
Sources of
Information
Annual
Territory
Marketing Plan
Improving Sales Force
Effectiveness
Training in sales techniques &
professionalism
Negotiation skills
Relationship-building skills
The Zone of Agreement
Zone of agreement
Seller’s surplus
s
Seller’s reservation
price (seller wants
s or more)
Seller wants to move
x to the right
Buyer’s surplus
x
Final
contract
$
b
Buyer’s reservation
price (buyer wants
b or less)
Buyer wants to move
x to the left
Performance Evaluation
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Current-to-Past
Customer Satisfaction
Qualitative Evaluation
Steps in the Selling Process
Step 1. Prospecting and
Qualifying
Identifying and Screening For
Qualified Potential Customers.
Step 2. Pre-approach
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step 3. Approach
Knowing How to Meet the Buyer
to Get the Relationship Off
to a Good Start.
Step 4. Presentation/
Demonstration
Telling the Product “Story”
to the Buyer, and Showing the
Product Benefits.
Steps in the Selling Process
Step 5. Handling Objections
Step 6. Closing
Step 7. Follow-Up
Seeking Out, Clarifying,
and Overcoming
Customer Objections to
Buying.
Asking the Customer
for the Order.
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.
Alternative Steps:
Find ’em
Grab ‘em
Show ‘em
Answer ‘em
Sell ‘em
Keep ‘em