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