1. Lecture 26

2. Chapter 13 PromotingProducts

3. Chapter Outline Importance Of Promotion Importance Of Promotion Advertising Promotions Advertising Promotions Personal Selling Personal Selling Sales Promotions Sales Promotions Publicity & Public Relations Publicity & Public Relations Promotional Practices In Small Business Promotional Practices In Small Business International Promotional Strategies International Promotional Strategies

4. Promotion Part Of Marketing Mix Concerned With Most Effective Techniques for Selling Product.

5. Information & Exchange Values Notify Potential CustomersNotify Potential Customers Educate Potential CustomersEducate Potential Customers Persuade Customers to Like ProductPersuade Customers to Like Product Persuade Customers To BuyPersuade Customers To Buy Create Exchange That Satisfies All PartiesCreate Exchange That Satisfies All Parties

6. Promotional Objectives 1)Communicate Information 2)Position Products 3)Add Value 1)Communicate value added benefits 4)Control Sales Volume

7. Communicate Information Advise Customer Product ExistsAdvise Customer Product Exists Educate Customer About Product FeaturesEducate Customer About Product Features

8. Positioning Product How Product Is Positioned In Customer’s Mind Compared to CompetitionHow Product Is Positioned In Customer’s Mind Compared to Competition IdentifyIdentify –Target Segments –Competitors

9. Value-Adding Benefits WarrantiesWarranties Repair ContractsRepair Contracts After-Purchase ServiceAfter-Purchase Service

10. Controlling Sales Volume Increase Promotion During Slow PeriodsIncrease Promotion During Slow Periods A Measure Promotional Campaign Allows For Controlled Growth So Promises Do Not Exceed Ability To DeliverA Measure Promotional Campaign Allows For Controlled Growth So Promises Do Not Exceed Ability To Deliver

11. Promotional Strategies PullPull –Appeal Directly To Consumer To Create Demand PushPush –Encourage Wholesalers & Retailers To Market To Consumers

12. Push vs. Pull Push Product Pull Product

13. Promotional Mix AdvertisingAdvertising Personal SellingPersonal Selling Sales PromotionSales Promotion Publicity & Public RelationsPublicity & Public Relations

14. Promotion & The Buying Decision

15. Advertising Promotional Tool Consisting Of Paid, Non-Personal Communication Used By An Identified Sponsor To Inform An Audience About A Product.

16. Advertising Strategies Depends upon product lifecycleDepends upon product lifecycle PersuasivePersuasive – Stress Quality –Influence consumers to buy a company’s product rather than the rivals ComparativeComparative –Maturity Stage –Two ore more products are directly compared –Goal is to take sales from competition ReminderReminder –Decline Stage –Keeps products names in consumer minds

17. Advertising Media TelevisionTelevision Direct MailDirect Mail NewspapersNewspapers MagazinesMagazines RadioRadio OutdoorOutdoor InternetInternet Data Mining & WarehousingData Mining & Warehousing VirtualVirtual Media MixMedia Mix

18. Media Mix By Industry

19. Advertising Campaign ID Target Set Budget Define Objectives Create Message ID Media Evaluate

20. Personal Selling Personal SellingPersonal Selling TelemarketingTelemarketing SituationsSituations –Retail –Industrial

21. Sales Force Management Top Management- Sets GoalsTop Management- Sets Goals Salespeople- Set Realistic ObjectivesSalespeople- Set Realistic Objectives Organize Sales Force To Meet GoalsOrganize Sales Force To Meet Goals Implement/Evaluate Success Of Overall Sales PlanImplement/Evaluate Success Of Overall Sales Plan

22. Personal Selling Tasks Order ProcessingOrder Processing –Receives an order and sees to its handling and delivery Creative SellingCreative Selling Missionary SellingMissionary Selling –Promote company and the product rather than make sale

23. Personal Selling Process Prospect & Qualify Approach Present Handle Objections Closing Follow-Up

24. Sales Promotion Important because enhance recognition, increase sales and motivates the customer to tryImportant because enhance recognition, increase sales and motivates the customer to try –Coupons –Point-Of-Purchase –Purchasing Incentives –Trade Shows –Contests

25. Sales Promotion –Coupons Certificates entitling bearers to savings off regular pricesCertificates entitling bearers to savings off regular prices –Point-Of-Purchase Located at the end of aisles or at checkout countersLocated at the end of aisles or at checkout counters Easier to find product and eliminate competitionEasier to find product and eliminate competition –Purchasing Incentives Free samples or premium (free or reduced price items)Free samples or premium (free or reduced price items) –Trade Shows Companies have booth in which they display productsCompanies have booth in which they display products –Contests

26. Publicity & PR PublicityPublicity –Free –Little Control Public RelationsPublic Relations –Company-Influenced –Create Goodwill

27. Small Business Advertising InternetInternet Non-Prime TimeNon-Prime Time Yellow PagesYellow Pages Direct MailDirect Mail Targeted Magazine AdsTargeted Magazine Ads

28. Sales ForceSales Force Sales AgenciesSales Agencies TelemarketingTelemarketing Small Business Personal Selling

29. Global Advertising Product VariationsProduct Variations Language DifferencesLanguage Differences Cultural ReceptivenessCultural Receptiveness Image DifferencesImage Differences