1. CONSTANT CHANGE AND THE PROMOTION MIX
    1. PROMOTION is an attempt by marketers to inform people about products and to persuade them to participate in an exchange.
      1. The combination of promotional tools an organization uses is called its PROMOTION MIX.
      2. INTEGRATED MARKETING COMMUNICATION (IMC) combines all the promotional tools into one comprehensive promotional strategy.
      3. All the promotional tools and company resources are used to create a positive brand image.
    2. HOW CONSTANT CHANGE IS AFFECTING PROMOTION.
      1. TECHNOLOGY has dramatically changed the role and activities of salespeople.
      2. For example, advertisers must be more creative in trying to reach large audiences because of the increase in the number of television channels available to consumers.
      3. The latest trend is to BUILD RELATIONSHIPS with customers over time.
      4. INTERACTIVE PROMOTION changes the promotion process from a monologue, where sellers tried to persuade buyers to buy thins, to a dialogue in which buyers and sellers can work together to create mutually beneficial exchange relationships.
      5. The text uses the example of Garden.com.
  2. ADVERTISING: PERSUASIVE COMMUNICATION.
    1. ADVERTISING is paid, nonpersonal communication through

various media by organizations and individuals who are in some

way identified in the advertising message.

    1. IMPORTANCE OF ADVERTISING.
      1. The total ad volume exceeds $215 billion yearly.
        1. The number one advertising medium in terms of total dollars spent is TV (23% of total.)
        2. NEWSPAPERS are now number two, with 21% of the total.
        3. DIRECT MAIL is number three, with 19%.
        4. INTERNET ADVERTISING, now less than 2% of total expenditures, is growing by 85% a year.
      2. The PUBLIC BENEFITS FROM ADVERTISING in the following ways:
        1. Advertising is INFORMATIVE.
        2. Advertising provides us with FREE TV AND RADIO PROGRAMS, because advertisers cover most of the production costs.
      3. Newspapers, radio, and the Yellow Pages are especially attractive to LOCAL ADVERTISERS.
      4. TV has many advantages to national advertisers, but it is expensive.
        1. However, there are few ways to reach as many people with such impact.
        2. Marketers must choose which media and which programs can best be used to reach the audience they desire.
      5. RADIO ADVERTISING is less expensive than TV advertising and often reaches people when they have few distractions.
    2. THE GROWING USE OF INFOMERCIALS.
      1. INFOMERCIALS are TV programs devoted exclusively to promoting goods and services.
      2. They are so successful because they show the product in great detail.
      3. Some products, such as work-out tapes, are hard to sell without showing testimonials.
    3. ADVERTISING AND PROMOTION ON THE INTERNET.
      1. Advertising on the Internet is a relatively new phenomenon.
      2. Most people tend to ignore Internet ads, but companies continue to use them hoping to tap into the huge online marketing potential.
      3. Companies like Wal-Mart have turned to outside professionals to help then crate online promotion systems.
      4. Customer relationship management software makes it possible to track customersí purchases and answer their questions online.
      5. New technologies such as high-speed connections will improve the speed and potential of Internet dialogues.
      6. Using palm-sized computers, consumers are able to CYBERSHOP at the same time they are shopping in a mall.
    4. GLOBAL ADVERTISING.
      1. GLOBAL ADVERTISING refers to developing a product and promotional strategy that can be used worldwide.
      2. Promotion targeted at specific countries is more successful since each country has its own culture, language, and buying habits.
      3. Because of cultural differences, promotional efforts designed specifically for individual countries may work best.
      4. Getting the words right in international advertising is tricky and critical.
      5. Even in the U.S., selected groups are large enough and different enough to call for specially designed promotions.
  1. PERSONAL SELLING: PROVIDING PERSONAL ATTENTION.
    1. PERSONAL SELLING is the face-to-face presentation and promotion of products and services plus searching out prospects and providing follow-up service.
      1. Effective selling today is more than persuading others to buy; it is helping them to satisfy their wants and needs.
      2. The benefit of personal selling is that there is a person there to help you complete a transaction.
      3. The Internet is changing the way salespeople operate.
      4. Nearly 10% of the total labor force is employed in personal selling.
      5. The average cost of a single sales call to a potential B2B buyer is about $400.
    2. STEPS IN THE SELLING PROCESS.
      1. PROSPECT AND QUALIFY.
        1. PROSPECTING involves researching potential buyers and choosing those most likely to buy.
        2. QUALIFYING means making sure that prospects have the NEED for a product, the AUTHORITY to buy, and the WILLINGNESS to listen to a sales message.
        3. The best prospects are people at companies who were recommended to you by others who use your product.
      2. PREAPPROACH.
        1. Before making a sales call, sales reps must do further research.
        2. Sales people should learn as much as possible about customers and their wants and needs.
        3. Gathering information before the sale takes place is critical.
      3. APPROACH.
        1. You donít have a second chance to make a first impression.
        2. Try to give an impression of friendly professionalism, to create rapport, and to build credibility.
      4. MAKE PRESENTATION.
        1. The idea is to match the benefits of your value package to the clientís needs.
        2. This is a good time to use testimonials.
      5. ANSWER OBJECTIONS.
        1. A salesperson should anticipate potential objections and determine proper responses.
        2. Questions should be viewed as opportunities for creating better relationships.
      6. CLOSE SALE.
        1. You have to "ask for the sale" to finalize the sales process.
        2. CLOSING TECHNIQUES include getting a series of small commitments and then asking for the order and showing the client where to sign.
        3. Salespeople must close many times before a long-term relationship is established.
      7. FOLLOW UP.
        1. Selling is more than simply sales, it is a matter of establishing relationships.
        2. Follow-up includes handling customer complaints, making sure that the customerís questions are answered, and supplying what the customer wants.
        3. Often customer service is as important to the sale as the product itself.
      8. The selling process varies somewhat among different goods and services, but the general idea is the same.
        1. Companies today provide many high-tech aids to help salespeople.
        2. SALES FORCE AUTOMATION (SFA) includes software programs that help salespeople design products, close deals, tap into intranets, and more.
    3. USING TECHNOLOGY TO PRACTICE CONSULTATIVE SELLING.
      1. B2B customers are buying more goods over the Internet.
      2. B2B salespeople will have new roles to play in the future.
      3. A CONSULTATIVE SALESPERSON begins by analyzing customer needs and then comes up with solutions to those needs.
      4. Selling to the consumer market will change as dramatically as selling to the B2B market has.
      5. Consumer market salespeople also must function as consultants.
      6. There is still a need for traditional salespeople, but such agents will be fewer and will be paid less.
  2. PUBLIC RELATIONS: BUILDING RELATIONSHIPS WITH ALL PUBLICS
    1. PUBLIC RELATIONS.
      1. PUBLIC RELATIONS (PR) is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with the public interest, and executes a program of action to earn public understanding and acceptance.
      2. A GOOD PUBLIC RELATIONS PROGRAM HAS THREE STEPS
        1. Listen to the public.
        2. Develop policies and procedures in the public interest.
        3. Inform people of the fact that youíre being responsive to their needs.
      3. PR has become one of the three fastest-growing industries in the country.
      4. The text uses the example of Yahoo, whose success is directly attributable to its long-term PR strategy.
      5. The public relations department has responsibility for maintaining close relationships with the media, community leaders, government officials, and other stakeholders.
    2. PUBLICITY.
      1. PUBLICITY is any information about an individual, a product, or an organization that is distributed to the public through the media, and that is not paid for, or controlled by, the sponsor.
      2. ADVANTAGES OF PUBLICITY include:
        1. ITíS FREE, if the material is newsworthy.
        2. IT REACHES PEOPLE WHO DO NOT READ ADVERTISING MESSAGES.
        3. IT CAN BE PLACED IN A PROMINENT PLACE (like the front page.)
        4. A story in the newspaper is treated as news, and NEWS IS MORE BELIEVABLE THAN ADVERTISING.
      3. DISADVANTAGES OF PUBLICITY include:
        1. YOU HAVE NO CONTROL over how, when, or if the media will use the story.
        2. Media DOES NOT HAVE TO PUBLISH IT.
        3. The story can be ALTERED so itís not positive.
        4. There IS such a thing as BAD publicity.
        5. Stories are NOT LIKELY TO BE REPEATED; advertising can be repeated as often as needed.
      4. To see that publicity is handled well by the media, establish a friendly relationship with the media and cooperate with them.
      5. Certain ethical questions arise about the use of publicity as it has the power to change public opinion.
  3. SALES PROMOTION: GETTING A GOOD DEAL
    1. SALES PROMOTION.
      1. SALES PROMOTION is the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
        1. Examples of consumer sales include free samples. cents-off coupons, and prizes.
        2. Sales promotion programs are designed to supplement personal selling, advertising, and public relations by creating enthusiasm.
      2. INTERNAL SALES PROMOTION (within company):
        1. Sales training.
        2. Development of sales aids such as flip charts, portable audiovisual displays, and movies.
        3. Participation in trade shows.
      3. EXTERNAL SALES PROMOTION (outside company, including distributors and dealers):
        1. It is important to get distributors and dealers involved so they too are enthusiastic.
        2. Trade shows are important because buyers are able to see products from many different sellers.
        3. Virtual trade shows, trade shows on the Internet, enable buyers to see many products without leaving the office.
      4. The next step is to PROMOTE TO FINAL CONSUMERS.
        1. Sales promotion is an ongoing effort to maintain enthusiasm.
        2. Techniques include samples, coupons, cents-off deals, displays, contests, etc.
    2. SAMPLING IS A POWERFUL SALES PROMOTION TOOL.
      1. SAMPLING is a promotional tool in which a company lets consumers have a small sample of a product for no charge.
      2. It is a quick, effective way of demonstrating a productís superiority at the time consumers are making a purchase decision.
      3. Companies use sampling in conjunction with other techniques such as event marketing.
      4. The text uses the example of Kiehlís skin care products; the company uses no advertising, only sampling.
    3. WORD-OF-MOUTH PROMOTION encourages people to tell other people about products they have enjoyed.
      1. Word-of-mouth is one of the most effective promotional tools.
      2. Anything that encourages people to talk favorably about an organization is effective word of mouth.
        1. Clever commercials and samples can generate word of mouth.
        2. The best way, however, is to have a good product, provide good services, and keep customers happy.
    4. VIRAL MARKETING AND OTHER WORD-OF-MOUTH STRATEGIES.
      1. Some companies have begun creating word of mouth by paying people to go online and hype the product in chat rooms.
      2. These people get free tickets, T-shirts, and other merchandise that the industry calls SWAG.
      3. VIRAL MARKETING is the term now used to describe these Internet promotions.
      4. Websites such as Barnes & Nobles pay a commission for customer recommendations.
      5. An effective strategy for spreading word of mouth is to send TESTIMONIALS to current customers.
        1. These are effective in confirming customersí belief that they chose the right company.
        2. Some companies make it a habit to ask customers for referrals.
        3. However, negative word of mouth can be very destructive to a firm.
        4. Upset customers are now getting on the Internet and publishing their complaints.
    5. OTHER WAYS THAT NEW TECHNOLOGIES ARE AFFECTING PROMOTION.
      1. As people purchase goods and services on the Internet, companies keep track of these purchases and gather facts about these customers.
      2. Using this information companies are able to design catalogs and brochures specifically to meet individual customer needs.
      3. Companies are using traditional promotional tools less and are putting more money into direct marketing.
      4. New high-speed Internet connections enable marketers to send video files and to interact with consumers in real time.
      5. You can also search the Net for the best prices and find product information.
      6. Promotion has become more INTERACTIVE.
  4. MANAGING THE PROMOTION MIX: PUTTING IT ALL TOGETHER.
    1. Each target group calls for a separate promotion mix.
      1. Large, homogenous groups of consumers are most efficiently reached through ADVERTISING.
      2. Large organizations are best reached through PERSONAL SELLING.
      3. SALES PROMOTION motivates people to buy now rather than later.
      4. PUBLICITY adds support to the other efforts and can create a good impression.
      5. WORD OF MOUTH is often the most powerful promotional tool.
    2. PROMOTION STRATEGIES.
      1. PUSH STRATEGY involves the producer using promotional tools such as advertising and personal selling to convince wholesalers and retailers to stock and sell merchandise.
      2. PULL STRATEGY involves heavy advertising and sales promotion efforts directed toward consumers so they will request the products from retailers.
      3. A company can use both push and pull strategies at the same time.
      4. The latest in pull and push strategies are being conducted on the Internet.
      5. It is important to make promotion part of a total systems approach to marketing.
        1. Thus promotion would be an integral part of supply chain efforts.
        2. The idea would be to develop a value package to appeal to everyone: manufacturers, distributors, retailers, and consumers.
    3. CREATING AN INTEGRATED MARKETING COMMUNICATION (IMC) SYSTEMS
      1. An INTEGRATED MARKETING COMMUNICATION SYSTEM (IMC) is a formal mechanism for uniting all the promotional efforts in an organization to make it more responsive to its customers and other stakeholders.
      2. In the past, advertising was created by ad agencies, public relations by PR firms, and so forth, with little coordination.
      3. Customers could receive conflicting messages.
      4. To implement an IMC system, you start with customers and stakeholders and their information needs.
      5. All messages must be consistent and coordinated.
    4. BUILDING INTERACTIVE MARKETING PROGRAMS.

An INTEGRATED MARKETING SYSTEM is one where consumers can access company information on their own and supply information about themselves in an ongoing dialogue. The basic steps:

      1. Constantly GATHER DATA about the groups affected by the organization (including customers, potential customers, and other stakeholders.)
        1. An information database is critical to any successful program.
        2. A company can gather such data from sales transactions, letters, e-mail, and companies that specialize in gathering such data.
      2. RESPOND QUICKLY to customer and other stakeholder information by adjusting company policies and by designing wanted products.
        1. A responsive firm adapts to changing wants and needs quickly.
        2. It is important for the marketing department to work closely with the information system department to make the process of ordering fast and smooth.
      3. Make it possible for customers to OBTAIN INFORMATION that they need to make a purchase.
      4. The advantages of interactive marketing include:
        1. Information is available 24/7.
        2. Ads and catalogs can be updated continually.
        3. Buyers and sellers can engage in a dialogue over time.
        4. It can be used by small as well as large businesses.