1. Chapter 9 PROMOTION

2. Objectives Developing & Managing an Advertising Program
Deciding on Media & Measuring Effectiveness
Sales Promotion
Public Relation
Principles of Personal Selling

3. Major Decisions in Advertising
Objectives Setting
Major Decisions in Advertising
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation

4. Advertising Objectives
Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
Informative Advertising
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Comparison Advertising
Compares One Brand to Another
Reminder Advertising
Keeps Consumers Thinking
About a Product.

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

6. Advertising Budget Factors
Market Share &
Consumer Base
Competition &
Clutter
Stage in the
Product Life Cycle
Advertising
Frequency
Product
Substitutability

7. 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 compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image

8. 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

9. Classification of Advertising Timing Patterns
Concen-
trated
(1)
(2)
(3)
Level
Rising
Falling
Alternating
(4)
Continuous
(8)
(7)
(6)
(5)
(9)
Inter-
mittent
(10)
(11)
(12)
Number of
messages
per month
Month

10. Advertising Strategy Message Execution
Testimonial
Evidence
Slice of Life
Turning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.
Lifestyle
Typical
Message
Execution
Styles
Scientific
Evidence
Fantasy
Technical
Expertise
Mood or
Image
Personality
Symbol
Musical

11. Advertising Evaluation
Advertising Program Evaluation
Advertising Evaluation
Communication Effects
Is the Ad Communicating Well?
Sales Effects
Is the Ad Increasing Sales?

12. Why the increase in Sales Promotion?
Growing retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Increased managerial accountability
Competition
Clutter
Retailer - scanner data, industry consolidation -MFGs want to break through
Loyalty & Sensitivity & proliferation - we did that
Frag - more media, more targeted
Short-term&Account - US Business, stock mkt, not BE

13. Long-Term Promotional Allocation10 20 30 40 50 60
1986 88 90 92 94
1996
Year
%t of total - 3 yr.MA
Trade Promo
Media Adv
Cons. Promo
Cox Direct 19th Annual Survey of Promotional Practices

14. Channels of Sales Promotions
MANUFACTURER
CONSUMER
Consumer
Promotions
RETAILER
Trade
Promotions
Push
Pull
Retail
Promotions

15. Consumer Promotion Consumer-Promotion Objectives
Consumer-Promotion Tools
Entice Consumers to
Try a New Product
Point-of-Purchase
Displays
Premiums
Price Packs
Cash Refunds
Coupons
Samples
Patronage Rewards
Games
Sweepstakes
Contests
Advertising
Specialties
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building

16. “Deal Proneness,” Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997
Examination of “deal proneness” among consumers in a supermarket setting
Surveys & Grocery Receipts used
Eight types of deals:
Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon

17. “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

18. Trade Promotions Trade-Promotion Tools Trade-Promotion Objectives
Specialty
Advertising
Items
Contests
Free Goods
Buy-Back
Guarantees
Allowances
Price-Offs
Patronage Rewards
Push Money
Discounts
Premiums
Displays
Persuade Retailers or
Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in
Advertising
Push a Brand to Consumers

19. Business-to-Business Promotion
Business-Promotion Objectives
Business-Promotion Tools
Generate Business Leads
Conventions
Trade Shows
Sales Contests
Stimulate Purchases
Reward Customers
Motivate Salespeople

20. Major Public Relations Tools
Web Site
News
Public
Service
Activities
Speeches
Corporate
Identity
Materials
Father of PR was Edward Bernays, turns out he was Freud’s nephew! Value of some good brand publicity/movie placements:
SPECIAL EVENTS:
Reeses Pieces sales jumped 85% after E.T.
Mumford High sold $1M in school shirts after
Beverly Hills Cop
CA. Raisin Board paid $25K for bus-stop sign and raisin eating scene in Back to the future.
Coke and Pepsi scout out roles full time.
Special
Events
Audiovisual
Materials
Written
Materials

21. When might you decide to use Personal Selling?
Tight budget (straight commission)
Concentrated Market
Few buyers
High value product
Product must be customized
Personal contact important
Must demonstrate product
Product involves trade-in/up

22. Designing the Sales Force Sales force objectives
Sales force strategy
Sales force structure
Sales force size
Sales force compensation

23. Sales Force Structures
Territorial
Product
Complexity
Market

24. Workload Approach to Sales Force Size
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

25. Sales Force Compensation
Fixed
Variable
Expense Allowances
Benefits

26. Recruiting & selecting sales representatives Managing the Sales Force
Training sales representatives
Supervising sales representatives
Motivating sales representatives
Evaluating sales representatives

27. Time and Duty Analysis Preparation Travel Administration Selling
Food & Breaks
Waiting

28. Sales Representative Motivation
Effort
Performance
Rewards
Satisfaction

29. Sources of Information
Evaluating Salespeople
Call
Reports
Work
Plan
Sources of
Information
Annual
Territory
Marketing Plan

30. Improving Sales Force Effectiveness
Training in sales techniques & professionalism
Negotiation skills
Relationship-building skills

31. The Zone of Agreement $ Final contract Zone of agreement
Seller’s surplus
Buyer’s surplus x
Final
contract $
Seller’s reservation
price (seller wants
s or more)
Seller wants to move
x to the right s
Buyer’s reservation
price (buyer wants
b or less)
Buyer wants to move
x to the left b

32. Performance Evaluation
Current-to-Past
Customer Satisfaction
Qualitative Evaluation

33. Steps in the Selling Process
Step 1. Prospecting and Qualifying
Steps in the Selling Process
Step 2. Pre-approach
Identifying and Screening For Qualified Potential Customers.
Step 3. Approach
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step 4. Presentation/ Demonstration
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.

34. Steps in the Selling Process
Step 5. Handling Objections
Steps in the Selling Process
Step 6. Closing
Seeking Out, Clarifying, and Overcoming Customer Objections to Buying.
Asking the Customer
for the Order.
Step 7. Follow-Up
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.

35. Alternative Steps: Find ’em Sell ‘em Keep ‘em Grab ‘em Show ‘em
Answer ‘em
Sell ‘em
Keep ‘em