ROAD MAP: Sales promotion: Integrated marketing communications Five promotion tools and the factors that must be considered in shaping the overall promotion mix. Advertising: The major decisions involved in developing an advertising program. Sales promotion: How do sales promotion campaigns are developed and implemented? Public relations: How do companies use public relations to communicate with their publics? Personal selling: Role of a company’s salespeople, six major steps and process of sales force management Direct marketing: Major forms of direct marketing.

Sales Promotion Short-term incentives to encourage the purchase or sales of a product or service. To generate immediate sales. The major forms of sales promotion: consumer, business, trade, or sales force promotions. Rapid growth in the industry because: More pressure to increase their current sales More competition Declining advertising efficiency More deal oriented consumers

Sales Promotion Objectives Consumer Promotions: increase short-term sales or help build long-term market share. Trade Promotions: get retailers to: carry new items and more inventory advertise products give products more shelf space buy ahead Sales Force: getting more sales support. In general, sales promotion should build long-term customer relationships.

Consumer Sales Promotion Tools Sample Offers a trial amount of a product Coupons Savings when purchasing specified products Cash Refunds “Rebates” Refund of part of the purchase price by mail Price Packs “Cents-Off Deals” Reduced prices marked on the label or package by producer Premiums Goods offered free or low cost as an incentive to buy a product Advertising Specialties Articles imprinted with an advertiser’s name given as gifts

Consumer Sales Promotion Tools Patronage Rewards Cash or other award offered for regular use of a product or service Point-of-Purchase Promotions Displays or demonstrations at the point of purchase or sale Contest Consumers submit an entry to be judged by a panel Sweepstakes Consumers submit their names for a drawing Games Consumers receive something each time they buy which may help them win a prize

Trade Promotion Business Promotion O b j e c t i v e s T o o l s Persuade resellers to carry a brand Give a brand shelf space Promote brand in advertising Push brand to customers Generate business leads Stimulate purchases Reward customers Motivate salespeople T o o l s Discounts Allowances Free Goods Push Money Specialty Advertising Items Conventions Trade shows Sales contests

Developing the Sales Promotion Program Decide on the Size of the Incentive Set Conditions for Participation Developing the Sales Promotion Program Decide How to Promote and Distribute the Promotion Program Decide on the Length of the Program Evaluate the Program

Events and Experiences $11.14 billion spent on sponsorship in 2004 69% sports 10% tours 7% festivals, fairs 5% arts 9% causes

Why Sponsor Events? To identify with a particular target market or life style To increase brand awareness To create or reinforce consumer perceptions of key brand image associations To enhance corporate image To create experiences and evoke feelings To express commitment to community To entertain key clients or reward employees To permit merchandising or promotional opportunities

Using Sponsored Events Establish objectives Choose event opportunities Design program Implement and control Measure effectiveness

Ideal Events Audience closely matches target market Event generates media attention Event is unique with few sponsors Event lends itself to ancillary activities Event enhances brand image of sponsor

ROAD MAP: Public relations: Integrated marketing communications Five promotion tools and the factors that must be considered in shaping the overall promotion mix. Advertising: The major decisions involved in developing an advertising program. Sales promotion: How do sales promotion campaigns are developed and implemented? Public relations: How do companies use public relations to communicate with their publics? Personal selling: Role of a company’s salespeople, six major steps and process of sales force management Direct marketing: Major forms of direct marketing.

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

Public Relations Functions Press relations or press agency Product publicity Public affairs Lobbying Investor relations Development Public Relations Tools News Speeches Special events Buzz marketing Mobile marketing Written materials Audiovisual materials Corporate identity materials Public service activities Company Web site

Marketing Public Relations Functions Assist in product launches Assist in repositioning mature products Build interest in a product category Influence specific target groups Defend products Build corporate image

Major Tools in Marketing PR Publications Events Sponsorships News Speeches Public Service Activities Identity Media

ROAD MAP: Personal selling: Role of a company’s salespeople Integrated marketing communications Five promotion tools and the factors that must be considered in shaping the overall promotion mix. Advertising: The major decisions involved in developing an advertising program. Sales promotion: How do sales promotion campaigns are developed and implemented? Public relations: How do companies use public relations to communicate with their publics? Personal selling: Role of a company’s salespeople six major steps and process of sales force management Direct marketing: Major forms of direct marketing.

The Role of the Sales Force Personal selling is a paid, personal form of promotion. Involves two-way personal communication between salespeople and individual customers. Salespeople: Probe customers to learn about problems Adjust marketing offers to fit special needs Negotiate terms of sales Build long-term personal relationships Sales Force serves as critical link between company and its customers They represent the company to the customers They represent the customers to the company Goal = Customer Satisfaction and Company Profit

Major Steps in Sales Force Management

Sales Force Structure Territorial: Salesperson assigned to exclusive area and sells full line of products Product: Sales force sells only certain product lines Customer: Sales force organizes along customer or industry lines Complex: Combination of several types of structures

Recruiting and Selecting Salespeople Key talents of salespeople: Intrinsic motivation Disciplined work style Ability to close a sale Ability to build relationships with customers Recruiting Salespeople Web searches College students Recruit from other companies Recommendations from current sales force Employment agencies Classified ads

Sales Force Training Goals Learn about and identify with the company. Learn about the company’s products. Learn customers’ and competitors’ characteristics. Learn how to make effective presentations. Learn field procedures and responsibilities.

Compensating Salespeople Fixed amount-Salary Variable amount-Commissions or bonuses Expenses: Repays for job-related expenditures Fringe benefits: Vacations, sick leave, pension, etc. Supervising Salespeople Directing Salespeople Help them identify customers and set call norms. Specify time to be spent prospecting Motivating Salespeople Organizational climate Sales quotas Positive incentives

Major Steps in Effective Selling Identifying qualified potential customers Learning about a prospective customer before a sales call

ROAD MAP: Direct marketing: Major forms of direct marketing. Integrated marketing communications Five promotion tools and the factors that must be considered in shaping the overall promotion mix. Advertising: The major decisions involved in developing an advertising program. Sales promotion: How do sales promotion campaigns are developed and implemented? Public relations: How do companies use public relations to communicate with their publics? Personal selling: Role of a company’s salespeople, six major steps and process of sales force management Direct marketing: Major forms of direct marketing.

Direct Marketing The New Direct-Marketing Model Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. The New Direct-Marketing Model As a supplemental medium for some firms. As a new and complete model for doing business for many firms. As the only approach for some firms. As the new marketing model of the next millennium.

Benefits of Direct Marketing Benefits to Buyers: Convenient Easy to use Private Ready access to products and information Immediate and interactive Benefits to Sellers: Powerful tool for building customer relationships Can target small groups or individuals Can tailor offers to individual needs Can be timed to reach prospects at just the right moment Gives access to buyers they could not reach through other channels Offers a low-cost, efficient way to reach markets

Forms of Direct Marketing

Kiosk Marketing Information and ordering machines generally found in stores, airports, and other locations (versus vending machines which dispense actual products).

Elements of the Offer Strategy Product Offer Medium Distribution method Creative strategy

Components of the Mailing Outside envelope Sales letter Circular Reply form Reply envelope

Types of Telemarketing Telesales Telecoverage Teleprospecting Customer service and technical support

Other Media for Direct Response Television Direct Response Advertising At-home shopping channels Videotext Kiosks

Designing an Attractive Web Site Context Content Community Customization Communication Connection Commerce

Ease of Use and Attractiveness Downloads quickly First page is easy to understand Easy to navigate Attractiveness Clean looking Not overly crammed with content Readable fonts Good use of color and sound

Increasing Visits and Site Stickiness Deep information with links Changing news of interest Changing offers Contests and sweepstakes Humor and jokes Games

Online Ads Banner ads Microsites Sponsorships Interstitials Search-related ads Content-targeted advertising Alliances Affiliate programs

iTunes Affiliate Program

e-Marketing Guidelines Give the customer a reason to respond Personalize the content of your emails Offer something the customer could not get via direct mail Make it easy for customers to unsubscribe

Integrated Direct-Marketing Carefully coordinated multiple-media, multiple-stage campaigns.

Public Policy and Ethical Issues in Direct Marketing Irritation to Consumers Taking unfair advantage of impulsive or less sophisticated buyers Targeting TV-addicted shoppers Deception, Fraud Invasion of Privacy

Rest Stop: Reviewing the Concepts Discuss the process and advantages of integrated marketing communications. Define the five promotion tools and discuss factors that must be considered in shaping the overall promotion mix. Describe and discuss the major decisions involved in developing an advertising program. Explain how sales promotion campaigns are developed and implemented. Explain how companies use public relations to communicate with their publics. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. Identify and explain the six major sales force management steps. Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. Define direct marketing and discuss its benefits to customers and companies. Identify and discuss the major forms of direct marketing.