MGT301 Principles of Marketing Lecture-39

Summary of Lecture-38

Integrated Direct Marketing Public Relations Publicity

Public information about a company, good, or service appearing in the mass media as a news item.

Today’s Topics Review 4th P (Promotion)

Marketing Communications

Simple Marketing System Producer/SellerConsumer Communication Product/Service Money Feedback

Promotion and Its Goals

Promotion Marketing activities used to communicate positive, persuasive information about an organization, its products and its activities to a target audience Marketing activities used to communicate positive, persuasive information about an organization, its products and its activities to a target audience Purpose: to directly or indirectly create sales, influence consumers. Purpose: to directly or indirectly create sales, influence consumers.

Consumers/potential consumers Consumers/potential consumers Interest groups/regulatory agencies Interest groups/regulatory agencies Current/potential investors Current/potential investors Society in general Society in general Company employees Company employees To whom does promotion communicate?

Promotion Mix Advertising Advertising Personal Selling Personal Selling Sales Promotion Sales Promotion Public Relations Public Relations

Advertising Personal Selling Any Paid Form of Non-personal Presentation by an Identified Sponsor. Sales Promotion Short-term Incentives to Encourage Sales. Public Relations Building Good Relations with Various Publics by Obtaining Favorable Unpaid Publicity. Direct Marketing Direct Communications With Individuals to Obtain an Immediate Response. Personal Presentations by a Firm’s Sales Force. The Marketing Communications Mix

Percentage- of-Sales Method Affordable Method Competitive- Parity Method Objective- and-Task Method Setting the Total Promotion Budget

AIDA Model Attention Attention Interest Interest Desire Desire Action Action

Setting the Promotion Mix

Advertising A paid form of non-personal communication about an organization and/or its products to a target audience through a mass medium.

Personal selling The direct presentation of a product to a prospective customer by a representative of the selling organization.

Sales promotion Demand-stimulating activity designed to supplement advertising and facilitate personal selling.

Public relations A planned communication effort by an organization to contribute to generally favorable attitudes and opinions toward an organization and its products.

Direct Marketing Direct connections with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationship

Advertising

Any paid form of non-personal presentation by an identified sponsor.

Mission Sales goals Adver- tising objectives Message Message generation Message evaluation and selection Message execution Social-responsibility review Money Factors to consider: Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility Measure - ment Communi- cation impact Sales impact Media Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation The Five M’s of Advertising

Objectives Setting Budget Decisions Message Decisions Campaign Evaluation Media Decisions

Advertising Objective  Informative Advertising  Persuasive Advertising  Reminding Advertising

Choose the Media

Yellow Pages Outdoor Internet Magazine Television Direct Mail Radio Newspaper Major Kinds of Media

Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales? Evaluating Advertising Effectiveness

Sales Promotion is a Mass Communication Technique That Offers Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. Offers Reasons to Buy Now. Sales Promotion

Sample Coupons Cash Refunds Price Packs Premiums Advertising Specialties Advertising Specialties Trial amount of a product Savings when purchasing specified products Refund of part of the purchase price Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts Major Consumer Sales Promotion Tools

Consumer Promotions Samples Samples Coupons Coupons Premiums Premiums Contests and Sweepstakes Contests and Sweepstakes

Trade Promotions Trade allowances Trade allowances Dealer contest Dealer contest Co-operative advertising Co-operative advertising Trade shows Trade shows Training etc. Training etc.

Cannot Reverse Declining Sales Trend Cannot Overcome Inferior Product May Encourage Competitive Retaliation May Hurt Profit Limitations of Sales Promotion

Personal Selling

Personal selling The direct presentation of a product to a prospective customer by a representative of the selling organization.

Basic Sales Tasks

The customers come to the salespeople. The customers come to the salespeople. –Mostly involves retail-store selling. –Most salespeople fall into this category. The salespeople go to the customers. The salespeople go to the customers. –Usually represent producers or wholesaling middlemen and sell to business users. –Some outside selling is relying more on telemarketing. The two types of personal selling

Sales Force Management

Step 1. Prospecting andQualifying Step 1. Prospecting andQualifying Step 2. Preapproach Step 3. Approach Step 4. Presentation/Demonstration Step 4. Presentation/Demonstration Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. 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.

Managing the Sales force

Designing Sales force Strategy and Structure Recruiting and Selecting Salespeople Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople

Direct communications with carefully targeted individual consumers to obtain an immediate response. Direct Marketing

 Fastest growing promotional mix element  Easy to narrowly target a segment  Measure outcomes easier  Databases are extremely important

Factors Driving Direct Marketing Growth

Predictive Modeling Predictive Modeling Customized Products Customized Products Convenience Fragmented Markets Fragmented Markets Shrinking Media Audiences Shrinking Media Audiences Immediate Sales Immediate Sales Price Sensitivity Price Sensitivity

Forms of Direct Marketing

Direct Mail Kiosk Marketing Online Marketing Telemarketing Direct-Response TV Marketing Catalog Face-to-Face Selling

Customer Databases

Individualized Information-Intensive Customer-Based Long-Term Oriented Share of Customer With a Focus on... Database Technology Database Technology Direct Marketing is... Direct Marketing is... Through Use of...

Database Marketing

Identifying Prospects Deciding Which Customers Should Receive a Particular Offer Deciding Which Customers Should Receive a Particular Offer Deepening Customer Loyalty Reactivating Customer Purchases How Companies Use Their Databases ?

Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits. Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits. Marketers seek to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs. Marketers seek to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs. Integrated Direct Marketing

Building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events. Public Relations

Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance The Role of Public Relations The Role of Public Relations

Major Public Relations Tools

Special Events Special Events Written Materials Written Materials Corporate Identity Materials Corporate Identity Materials Speeches News Audiovisual Materials Audiovisual Materials Public Service Activities Public Service Activities Web Site

 New product publicity  Consumer education  Event sponsorship  Issue sponsorship  Company websites

Public information about a company, good, or service appearing in the mass media as a news item. Publicity

Enough for Promotion...

Summary

Next….  Creating Competitive Advantage