1. CHAPTER 13 PROMOTION STRATEGY

2. Communication Process Promotion Objectives Major Promotion Areas

3. COMMUNICATION PROCESS Process Marketing Application Source Sender of message Encode Design message Message Personal or non-personal channel Decode Receiver interprets message

4. PROMOTION OBJECTIVES Communication Objectives - To inform - To remind Behavior Objectives - To sell - To take some action

5. BEHAVIOR OBJECTIVES IN ADVERTISING Don’t Mess With Texas Army ad Vote in next election Groupon objectives

6. MAJOR PROMOTION AREAS Sales Promotion Publicity Advertising Personal Selling Direct Marketing

7. SALES PROMOTION Consumer promotions Business promotions Paid forms of promotion with quick stimuli results

8. CONSUMER SALES PROMOTION Frequent flyer points Coupons Rebates

9. BUSINESS SALES PROMOTION Sales contests Pens and pencils Special display in stores

10. TRADE SHOW PROMOTIONS T-shirts USB Drives Tossable Items

11. PUBLICITY Non-paid form of promotion Publicity must be newsworthy to media Cannot be controlled by sponsor Technology is making newer forms of publicity available

12. PUBLICITY EXAMPLES BP oil spill Oprah’s giveaway World Cup soccer Exxon Disaster

13. ADVERTISING Paid form of promotion with non-personal presentations Advertising Decision Process Media Decisions

14. ADVERTISING DECISION PROCESS Define target market(s) Set advertising objectives Make advertising decisions Measure advertising results (Effectiveness)

15. ADVERTISING OBJECTIVES Unawareness Awareness Comprehensive Conviction Action Communication Objectives Sales Objectives

16. MEDIA DECISIONS Traditional media Social media

17. TRADITIONAL MEDIA Newspapers Magazines Television Radio

18. MAGAZINE CIRCULATION Magazine 2000 2010 Newsweek 3.1 million 1.6 million Time 4.1 million 3.3 million

19. SOCIAL MEDIA YouTube Facebook Twitter

20. SOCIAL MEDIA CHANGES Social Media vs. Traditional Media Smart Phones, Tablets, and iPads

21. U.S. MOBILE AD SALES 2011$4.0 Billion 2012$6.7 Billion 2013$10.5 Billion

22. PERSONAL SELLING Paid form of promotion with personal presentations Selling Objectives Selling Process Customer Relations Management

23. SELLING OBJECTIVES FOR BUYERS Attention Desire Action Interest A A I D

24. SELLING PROCESS Prospecting Approach Presentation and Objections Closing the Sale Follow-up

25. PROSPECTING STAGE Cold Calls Telemarketing Leads Prospects with need Qualified Leads Prospects with need and can afford your product

26. QUALIFYING BUSINESS LEADS AT TRADE SHOWS Hot Wants to buy now Sales Worth a sales call Low Low sales priority

27. APPROACH STAGE Pre-approach - Actions before calling on prospect Approach - Meeting and greeting the buyer

28. PRESENTATION EXAMPLES Telemarketing Need Satisfaction Problem Solutions

29. TELEMARKETING Cemetery lots Vacation condos Non-profit organizations Senior Citizens

30. HANDLING OBJECTIONS Postpone Agree and Neutralize Ignore the Objection

31. CLOSING THE SALE Trial close Assumptive close Urgency close

32. FREE MEALS TO CLOSE THE SALES Condominiums Financial planning Medicare advantage

33. FOLLOW-UP Phone call Letter or card E-mail

34. CUSTOMER RELATIONS MANAGEMENT (CRM) Develop Customer Database Identify Individual Customer Preferences Contact Most Important Customers

35. CRM DATA MINING INFORMATION Identify high-value customers Sales force contacts Credit/debit information Number of website visits

36. CUSTOMER RELATIONSHIP MANAGEMENT EXAMPLES Business hotel regulars Heavy user customers on airlines Major university endowment sponsors

37. DIRECT MARKETING Kiosks sales Infomercial sales Network marketing

38. KIOSKS SALES Supermarkets Airports Shopping Centers Vending Machines

39. VENDING PRODUCTS Redbox Cupcakes Baby products Ramen noodles

40. INFOMERCIALS SALES Person Product George Foreman Lean Mean Grilling Machine Ron Popeil Showtime Rotisserie Oven Tom Vu Real Estate Seminars

41. RECENT INFOMERCIALS Product Sales Snuggie 18 million Bumpits 9 million Ped Egg 30 million

42. INFOMERCIALS FOR SELLING DVDs Takes 5-6 weeks for delivery Seller stocks no inventory Contract supplier is drop shipper Revenue occurs when DVDs are ordered

43. NETWORK MARKETING COMPANIES Amway Stella & Dot Tupperware