INTRODUCTION TO BUSINESS Subarjo Joyosumarto SE, MA, Ph.D 1 September 2016 Meeting 11: OVERVIEW OF MEETING 10 PROMOTING PRODUCTS (chapter 13)

OVERVIEW OF MEETING 10

WHAT IS PRODUCT Every product is a value package, which provide benefits to satisfy the needs and wants of customer VALUE PACKAGE Product marketed as a bundle of value adding attributes including reasonable cost Example of computer value package: choice of keyboard, monitors, capacities choice of color, attractive prices, protection of credit card purchasing assurance of speedy delivery internet chat room capability warranties

CLASSIFY PRODUCT ACCORDING TO EXPECTED BUYERS BUYERS OF CONSUMER PRODUCT Three categories that reflect buyer behavior Convenience goods and conveniences services. They are inexpensive and purchased often, with little time and effort E.g. milk, fast food restaurant Shopping goods and shopping services. More expensive, and purchased less often consumers compare brand and stores. E.g. tires, insurance, shoes Specialty goods and specialty services. There important and expensive, consumer decide on precisely what they want. E.g. catering for wedding receptions, luxurious lady bags

CLASSIFY PRODUCT ACCORDING TO EXPECTED BUYERS BUYERS OF INDUSTRIAL PRODUCT Depending on how much they cost and how much they will be used Expense items , are goods or services that are consumed within a year by firms supplying other goods and services E.g. buck loads of tea processed into tea bag Capital items, are permanent goods and services. They are expected lives of more than a year and several years E.g. buildings, baking ovens, computers, airplanes

THE SEVEN STEP DEVELOPMENT PROCESS Commercialization: full-scale production and marketing Product testing and test marketing: it sold in limited area Prototype development: produce prototype product Business analysis: company costs and benefits Concept testing: to get consumers input on benefits and prices Screening : eliminate ideas that do not match with abilities and objectives Product ideas: a search for ideas

VARIATIONS IN THE PROCESS OF SERVICES Steps 2,3,4,6 and 7 are the same Step 1: service ideas includes defining the service package, identifying the tangible and intangible features that characterize the service E.g. building interior will be cleaned by midnight Step 5: service process design, includes: Process selection Worker requirement Facility requirement

PROMOTING PRODUCTS

THE IMPORTANCE OF PROMOTION Is any technique designed to sell a product It is part of the communication mix, the total message any company sends to costumers about its product Promotional techniques, especially advertising, must communicate the uses, features, and benefit of products

FOUR GOALS OF PROMOTION Make potential costumers aware of products Made them knowledgeable about products Persuade them to like products Persuade them to purchase products

PROMOTIONAL OBJECTIVES The ultimate objective of any promotion is to increase sales Marketers use promotion to: Communicate information, advice customers that a product exists, and educate them about products feature Position products, establishing an easily identifiable product image in the minds of costumer Add value, communicate value added benefits. Control sales volume, keep production and distribution systems running evenly and stabilize sales volume

PROMOTION AND BUYER DECISION PROCESS

ADVERTISING PROMOTIONS Advertising is paid, nonpersonal communication, by which identified sponsor informs an audience about product. Advertising media Television, Direct mail, Newspaper, Magazines, Radio, Outdoor Advertising Internet Advertising Virtual Advertising Media mix

PREPARING THE CAMPAIGN WITH AN ADVERTISING AGENCY Advertising campaign is the arrangement of ads in selected media to reach target audiences A campaign includes six steps: Identify the target audience Establish the target audience Define the objectives of advertising messages Create advertising messages Select the appropriate media Evaluate the advertising effectiveness

PERSONAL SELLING Is promotional tool in which a salesperson communicates one on one with potential customers Telemarketing is using telephone solicitations to conduct personal selling process Personal selling is affected by the difference between: Retail selling, is selling a consumer product for the buyer’s personal or household use Industrial selling, is personal selling situation in which products are sold to business, either for manufacturing other products or for resale

SALES PROMOTIONS Are short-term promotional activities designed to stimulate either consumer buying or in cooperation from distributors, sales agents, or other members of the trade There are important because: Increase the likelihood that buyers will try products Enhance product recognition and can increase purchase size and amount Types of sales promotions: Coupon, Point-of-purchase displays Purchasing incentives, free samples Trade shows Contests to increase sales

PUBLICITY Promotional tool in which information about a company or product is transmitted by general mass media PUBLIC RELATION Company-influenced publicity directing at building goodwill with public or dealing with unfavorable events

QUESTION FOR DISCUSSION Which of the following Is not true about promotional methods for marketing? a) they are expensive b) business use them to communicate information c) they replace exchange relationship with customers d) they seek to persuade people to like and purchase products e) they are intended to make products more attractive True/false the position of a product cannot be accomplished until a specific market segment has been identified In regard to marketing promotion all of the following are correct except a) The Ultimate objective of any promotion is to provide information b) the promotional mix can provide value-added benefit c) some firms use a combination of push and pull strategies d) the choice of a promotional mix should consider the target audience e) personal selling can be effective when potential buyers are evaluating competing products Which of the following is true about advertising media? a) TV is the most used medium and reaches the most people b) TV ads are more effective than radio ads c) advertisers who want fast, immediate impact prefer magazines d) the success of an internet ad cannot be measured as easily as the success of ads in other media Which of the following is not true about internet advertising? a) the internet is the most recent advertising medium b) consumers like it because it provides electronic pages with lots of interesting and attractive ads c) marketers recognize it as having great promotional potential d) it is a source for volumes of data about consumer behavior Supposed your client personal selling strategy is to persuade buyers that there are benefits to your company’s product, especially buyers who are unfamiliar with its feature and uses. Which is the appropriate name for this type of selling? a) order extraction; b) missionary selling; c) prospecting; d) psychological selling; e) creative selling True/false the most critical stage in the personal selling process is the closing. In closing, the salesperson should ask the client indirectly to close the sale rather than ask directly. True/false even if it has done nothing to deserve bad publicity, a company can suffer adverse publicity because of the actions of other firms. Identify the important objectives of promotion and discuss the consideration entailed in selecting a promotional mix Outline the task involved in personal selling and list the steps in the personal selling process. Describes the various types of sales promotions and distinguish between publicity and public relations

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