1. Effective Promotional Techniques
Busn 101 Chapter 16
Effective Promotional Techniques

2. Goals Define Promotion Traditional tools in the Promotion Mix:
Advertising
Personal selling
Public Relations
Sales promotion
Define Advertising
Advantages and disadvantages of different advertising media
Steps for B2B and B2C selling process
Role of public relations department (including publicity)
Forms of sales promotion (including sampling)
Word of mouth, Viral marketing, Blogging, Podcasting
Guerrilla (not gorilla) marketing

3. Promotion Define Promotion Promotion Mix
An effort by marketers to inform and remind people in the target market about products and to persuade them to participate in an exchange
Promotion Mix
The combination of promotional tools an organization uses
IMC (Integrated Marketing Communication)
A technique that combines all the promotional tools into one comprehensive, unified promotional strategy

4. Traditional Promotional Mix
Personal Selling
Sales Promotion
Public Relations
Advertising
Product
See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix.
See text pages: 432

5. Steps In A Promotional Campaign
Identify the target market
Define the objectives for each element in promotion mix
Determine the promotional budget
Develop a unifying message
Implement the plan
Evaluate effectiveness
See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix.
See text pages: 432

6. Objectives of Integrated Marketing
Build Brand Equity
Provide Information
Manage Demand & Build Sales
Differentiate Products
Influence Perceptions, Attitudes, & Buyer Behavior
Also available on a Transparency Acetate
See Learning Goal 1: Define promotion and list the four traditional tools that make up the promotion mix.
Objectives of Integrated Marketing
This slide provides the students information regarding the goals of integrating the various marketing tools to reach the consumer.
All objectives within an integrated marketing strategy should include the following:
Significantly increase the number of people to experience the message at nominal incremental cost.
Leverage the media’s ability to deliver an integrated marketing message.
Deliver an entertaining segment that elicits emotional response.
Utilize all medium to effectively elicit a response to your promotion.
Demonstrate the importance of each and every person reached by your message.

7. Advertising
Paid nonpersonal communication through various media by organizations and individuals who are in some way indentified in the advertising message
Ads:
Inform us
eature=PlayList&p=9D48FA46A835E6FD&playnext_ from=PL&index=5&playnext=2
Sometimes they try to trick you
Provide free TV, Radio, print media, , news

8. Advertising
Advertising media: Newspaper, television, radio, magazines, outdoor, direct mail, yellow-pages, Internet
The growing use of Infomercials
Moving to the Internet
Global advertising
See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet.
See text pages:

9. Internet Ads and Promotion
High in search results (people are searching for item)
Paid ads at Google
ads
Banner ads
Pop-up banner ads
Yahoo , news sites have lots of ads
On-line coupons if you signup at web site:
Give you coupons
Send you s
Watch TV, but first you must watch ad
YouTube ads
Easy to navigate web site
Videos at web site
Facebook

10. Advertising

11. Infomercials Grossing Over 1 Billion
In Billions
See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet.
Source: Business 2.0, June 2005

12. U. S. Online Ad Spending Example: http://news. yahoo
U.S. Online Ad Spending Example:
Also available on a Transparency Acetate
See Learning Goal 2: Define advertising and describe the advantages and disadvantages of various advertising media, including the internet.
U.S. Online Ad Spending
This slide presents the US online spending on advertising.
Ask the student what pattern do they see?
There is a steady growth from 1998 to 2000 and then the spending declined for the next two year and started to revive again.
What rationale can explain this spending behavior of the advertisers?
The dot com era of the late nineties was peaking and everyone was jumping on the bandwagon. Hence, the increment in the Internet ad spending until the year 2000 when the bubble busted with dot com companies and the economy suffered for the next two years which correlated with the declining spending on advertisements. The economy, the business, and the consumer confidence started to revive in and is evidenced by the increased ad spending by the advertisers.
Source: Investors.com; Advertising Age, 2005

13. Interactive Promotion
Promotional process that allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships

14. Advantages And Disadvantages Of Different Advertising Media

15. Selling Personal Selling
The face-to-face presentation and promotion of goods and services
Helping others satisfy their wants and needs
About 10% of labor force does personal selling

16. Selling Prospecting Qualifying Prospect Trial Close
Researching potential buyers and choosing those most likely to buy
Qualifying
In the selling process, making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message
Prospect
A person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message
Trial Close
A step in the selling process that consists of a question or statement that moves the selling process toward actual close

17. Steps in the Selling Process (B2B)
Prospect and Qualify (wants it & can buy)
Preapproach (know customer)
Approach (first impressions are important)
Make Presentation (match benefits of product to needs of customer)
Answer Objections (truth builds trust)
Close Sale
Follow Up (key part to building relationships)
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
See text pages:

18. Steps in the Selling Process (B2C)
Follow up
See Learning Goal 3: Illustrate the steps of the B2B and B2C selling processes.
See text pages: 442
Close sale
Make presentation
Start
Ask questions
Approach

19. Public Relations Steps Publicity Listen to the public.
Change policies and procedures.
Inform people that you’re being responsive to their needs.
Publicity
Free
More Effective Than Advertising
Believable
No Control
No Repetition
See Learning Goal 4: Describe the role of the public relations department, and tell how publicity fits in that role.
See text pages:

20. Sales Promotion Techniques
B2B
Trade Shows
Portfolios
Deals
Catalogs
Conventions
B2C
Coupons
Cents-off Promotions
Sampling
Premiums
Sweepstakes
Contests
Bonuses
Catalogs
Demonstrations
Special Events
Lotteries
In-store Displays
See Learning Goal 5: Explain the importance of various forms of sales promotion, including sampling.
See text pages:

21. Coupon Statistics Average Face Value Amount saved in 2004
93 cents (2004); 46 cents (1990)
Amount saved in 2004
$2.9 billion
Number of coupons redeemed in America in 2004
3 billion
Coupons rank 2nd as purchase motivators (Largest: Free Samples)
Also available on a Transparency Acetate
See Learning Goal 5: Explain the importance of various forms of sales promotion, including sampling.
Coupon Statistics
This slide presents some interesting statistics on coupons.
First coupon was distributed in 1894 for Coca-cola.
Ask the students – how many of them have clipped and used the coupons? Where did they get the coupons used? Was that the motivation for trying the product? What was their experience? Would they have tried the product without the coupons?
This slide also goes well with the previous slide: Tips on Issuing Coupons.
The percentage of available coupons redeemed in 2004 was 1 percent only (which was 3 billion coupons).
Ask the students – Using coupons would be a Push or Pull strategy, according to the chapter? (Pull strategy)
Source: St. Louis Post-Dispatch Everyday, July 2005

22. Sales Promotion Internal & External Sampling Word-Of-Mouth
Viral Marketing
Blogging
Podcasting
See Learning Goal 6: Give examples of word of mouth, viral marketing, blogging, and podcasting.
See text pages:

23. Putting it all Together
Convince wholesalers and retailers to stock and sell
Producer uses advertising, personal selling, sales promotion to convince the intermediaries
Idea is to push the product through the distribution system to the stores
Heavy advertisements and sales promotion efforts
Directed at consumers so that they will request the products from retailers
Products are pulled down through the distribution system
See Learning Goal 6: Give examples of word of mouth, viral marketing, blogging, and podcasting.
See text pages:

24. Publicity
Any information about an individual, product, or organization that’s distributed to the public through media and that’s not paid for or controlled by the seller
“Talking part of sales promotion”
Greatest advantage is its believability

25. Sales Promotion
The promotional tool that stimulates consumer purchasing and dealer interest by means of short- term activities
Internal:
Keep employees enthusiastic and train well
External
Coupons
Sampling
Contests

26. Sampling
A promotional tool in which a company lets consumers have a small sample of a product for no charge

27. Word-of-mouth promotion
A promotional tool that involves people telling other people about products they have purchased

28. Guerrilla (Not Gorilla) Marketing
Studying market for your product very carefully, then going after that market using nontraditional (even outrageous) promotional means
Red Bull:
Extreme Sports events
College parties
Contests and award ceremonies
Obama:
YouTube videos
ed videos

29. Viral Marketing
The term now used to describe everything from paying people to say positive things on the internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific web sites
Does your viral video get 5 million hits at YouTube?

30. Blogging
Blog
On online diary (web log) that looks like a web page but is easier to create and update by posting text, photos, or links to other sites

31. Podcasting
A means of distributing audio and video programs via the internet that lets users subscribe to a number of files, also known as feeds, and then hear or view the material at the time they choose

32. Push Strategy
Promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise

33. Pull Strategy
Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they will request the products from the retailers