Chapter 9 PROMOTION

Objectives
 Developing & Managing an Advertising
Program
 Deciding on Media & Measuring
Effectiveness
 Sales Promotion
 Public Relation
 Principles of Personal Selling
 Major Decisions in Advertising

Objectives Setting

Budget Decisions

Message Decisions Media Decisions

Campaign Evaluation
 Advertising Objectives
 Specific Communication Task
 Accomplished with a Specific Target Audience
 During a Specific Period of Time

Informative Advertising Persuasive Advertising

Build Primary Demand Build Selective Demand

Comparison Advertising Reminder Advertising

Compares One Brand to Keeps Consumers Thinking
Another About a Product.
 The Five Ms of Advertising
Message
Money Message generation
Factors to Message evaluation
consider: and selection
Mission Message execution Measure-
Stage in PLC
ment
Sales Social-responsibility
goals Market share review
and con- Communi-
sumer base cation
Adver- Media impact
tising Competition
objectives Reach, frequency, Sales
and clutter impact
impact
Advertising Major media types
frequency Specific media
vehicles
Product
substituta- Media timing
bility Geographical
media allocation
 Advertising Budget Factors

Market Share &

Consumer Base

Stage in the Competition &

Clutter
Product Life Cycle

Product Advertising
Substitutability Frequency
 Profiles of Major Media
Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability
Limitations: Short life; poor reproduction quality; small
pass-along audience

Television
Advantages: Combines sight, sound, motion; high attention;
high reach; appealing to senses
Limitations: High absolute costs; high clutter; fleeting exposure;
less audience selectivity

Direct Mail
Advantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization
Limitations: Relative high cost; “junk mail” image
 Profiles of Major Media
Types
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost
Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized rates; fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life; good pass-along readership
Limitations: Long ad purchase lead time; waste circulation;
no guarantee of position

Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition
Limitations: Little audience selectivity; creative limitations
 Classification of
Advertising Timing Patterns
Level Rising Falling Alternating
(1) (2) (3) (4)
Concen-
trated

(5) (6) (7) (8)

Continuous

(9)
(9) (10) (11) (12) Number of
Inter- messages
mittent per month

Month
Advertising Strategy
Message Execution
Turning the “Big Idea” Into an Actual Ad to Capture the
Target Market’s Attention and Interest.
Testimonial
Slice of Life
Evidence

Scientific Lifestyle
Evidence Typical
Technical Message Fantasy
Expertise Execution
Styles Mood or
Personality
Symbol Image

Musical
 Advertising Evaluation
Advertising Program Evaluation

Communication Effects Sales Effects

Is the Ad Communicating Well? Is the Ad Increasing Sales?

Why the increase in Sales
Promotion?
 Growing retailer power
 Declining brand loyalty
 Increased promotional sensitivity
 Brand proliferation
 Fragmentation of consumer market
 Short-term focus
 Increased managerial accountability
 Competition
 Clutter
 Long-Term Promotional
Allocation

60
%t of total - 3 yr.MA

50
40 Trade Promo
30 Media Adv
20 Cons. Promo
10
0
1986 88 90 92 94 1996
Year
Cox Direct 19th Annual Survey of Promotional Practices
 Channels of Sales Promotions
MANUFACTURER

Trade
Push
Promotions

RETAILER Consumer
Promotions
Retail Pull
Push
Promotions

CONSUMER
 Consumer Promotion

Consumer-Promotion Consumer-Promotion
Objectives Tools
Entice Consumers to
Try a New Product Samples Advertising
Specialties
Lure Customers Away Coupons
From Competitors’ Products Patronage
Patronage
Rewards
Rewards
Get Consumers to “Load Up’ Cash Refunds
on a Mature Product Contests
Hold & Reward Loyal Price Packs
Customers Sweepstakes
Consumer Relationship
Building Premiums Games

Point-of-Purchase
Displays
“Deal Proneness,”
Liechtenstein, Burton, & Netemeyer,
Journal of Retailing, Summer 1997

 Examination of “deal proneness” among

consumers in a supermarket setting
 Surveys & Grocery Receipts used
 Eight types of deals:
 Cent-off, One-free, Gift, Display, Rebate,
Contest, Sale, & Coupon
 “Deal Proneness,”
Liechtenstein, Burton, & Netemeyer
Cluster analysis yielded two interpretable results:
 49% are “deal prone,” 51% not

 24% High “Deal prone,” 50% intermediate,

26% deal insensitive

 “Deal-proneness” a generalized construct -

(crosses type of promotion)

 Younger & Less educated more likely to be

deal prone
 Trade Promotions
Trade-Promotion
Trade-Promotion Tools
Objectives
Persuade Retailers or Price-Offs Premiums
Wholesalers to Carry a Brand
Give a Brand Shelf Space Allowances Patronage
Displays
Rewards
Promote a Brand in Buy-Back
Advertising Guarantees Discounts

Push a Brand to Consumers Push Money

Free Goods
Specialty
Advertising
Contests
Items
 Business-to-Business
Promotion
Business-Promotion
Objectives Business-Promotion
Generate Business Leads Tools
Conventions
Stimulate Purchases
Trade Shows
Reward Customers

Motivate Salespeople Sales Contests

 Major Public Relations Tools

Web Site
Public News
Service
Activities

Speeches
Corporate
Identity
Materials

Special
Audiovisual Events
Materials Written
Materials
 When might you decide to use
Personal Selling?
 Tight budget (straight commission)
 Concentrated Market
 Few buyers
 High value product
 Product must be customized
 Personal contact important
 Must demonstrate product
 Product involves trade-in/up
Designing the Sales Force

Sales force objectives

Sales force strategy

Sales force structure

Sales force size

Sales force compensation

 Sales Force Structures

Territorial Product

Market Complexity
Workload Approach to Sales
Force Size
 Classify customers by size
 Determine desirable call frequencies
 Determine total sales calls needed per
year
 Determine average number of sales
calls per sales representative per year
 Divide total by number per rep
Sales Force Compensation
 Fixed
 Variable
 Expense Allowances
 Benefits
 Managing the Sales Force

Recruiting & selecting sales

representatives

Training sales representatives

Supervising sales representatives

Motivating sales representatives

Evaluating sales representatives

Time and Duty Analysis
Preparation

Administration Travel

Selling Food & Breaks

Waiting
 Sales Representative
Motivation
Motivation

Effort

Performance

Rewards

Satisfaction
 Evaluating Salespeople

Call Work
Reports Plan
Sources of
Information
Annual
Territory
Marketing Plan
 Improving Sales Force
Effectiveness

Training in sales techniques &

professionalism

Negotiation skills

Relationship-building skills
 The Zone of Agreement

Zone of agreement

Seller’s surplus Buyer’s surplus

$
s x b
Seller’s reservation Final Buyer’s reservation
price (seller wants price (buyer wants
s or more) contract b or less)
Seller wants to move Buyer wants to move
x to the right x to the left
Performance Evaluation
 Current-to-Past
 Customer Satisfaction
 Qualitative Evaluation
 Steps in the Selling Process

Step 1. Prospecting and Identifying and Screening For

Qualifying Qualified Potential Customers.

Learning As Much As Possible

Step 2. Pre-approach About a Prospective Customer
Before Making a Sales Call.

Knowing How to Meet the Buyer

Step 3. Approach to Get the Relationship Off
to a Good Start.

Step 4. Presentation/ Telling the Product “Story”

to the Buyer, and Showing the
Demonstration
Product Benefits.
 Steps in the Selling Process

Seeking Out, Clarifying,

Step 5. Handling Objections and Overcoming
Customer Objections to
Buying.

Step 6. Closing Asking the Customer

for the Order.

Step 7. Follow-Up Following Up After the Sale to

Ensure Customer Satisfaction
and Repeat Business.
 Alternative Steps:

Find ’em
Grab ‘em

Show ‘em

Answer ‘em

Sell ‘em
Keep ‘em