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

2. OVERVIEW OF MEETING 10

3. 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

4. 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

5. 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

6. 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

7. 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

8. PROMOTING PRODUCTS

9. 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

10. 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

11. 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

12. PROMOTION AND BUYER DECISION PROCESS

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. Thank You