PROMOTION STRATEGY

1
CHAPTER 13

• PROMOTION STRATEGY

2
PROMOTION STRATEGY

• 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

• Dont Mess With Texas
• Army ad
• Vote in next election
• Groupon objectives

6
MAJOR PROMOTION AREAS

• Sales Promotion
• Publicity
• Advertising
• Personal Selling
• Direct Marketing

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SALES PROMOTION
Paid forms of promotion with quick stimuli
results

• Consumer promotions
• Business promotions

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

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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

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PUBLICITY EXAMPLES

• BP oil spill
• Oprahs giveaway
• World Cup soccer
• Exxon Disaster

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ADVERTISING

• Paid form of promotion with
• non-personal presentations

• Advertising Decision Process
• Media Decisions

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ADVERTISING DECISION PROCESS

• Define target market(s)
• Set advertising objectives
• Make advertising decisions
• Measure advertising results
• (Effectiveness)

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ADVERTISING OBJECTIVES

• Unawareness
• Awareness
• Comprehensive
• Conviction
• Action

Communication Objectives
Sales Objectives
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MEDIA DECISIONS

• Traditional media
• Social media

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TRADITIONAL MEDIA

• Newspapers
• Magazines
• Television
• Radio

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MAGAZINE CIRCULATION

• Magazine 2000
  2010
• Newsweek 3.1 million 1.6
  million
• Time 4.1 million
  3.3 million

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SOCIAL MEDIA

• YouTube
• Facebook
• Twitter

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SOCIAL MEDIA CHANGES

• Social Media vs. Traditional Media
• Smart Phones, Tablets, and iPads

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U.S. MOBILE AD SALES

• 2011 4.0 Billion
• 2012 6.7 Billion
• 2013 10.5 Billion

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PERSONAL SELLING

• Paid form of promotion with
• personal presentations

• Selling Objectives
• Selling Process
• Customer Relations Management

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SELLING OBJECTIVES FOR BUYERS
Attention
A
I
Interest
D
Desire
A
Action
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SELLING PROCESS

• Prospecting
• Approach
• Presentation and Objections
• Closing the Sale
• Follow-up

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PROSPECTING STAGE

• Cold Calls Telemarketing
• Leads Prospects with
  need
• Qualified Leads Prospects with need
  and
• can
  afford your product

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QUALIFYING BUSINESS LEADS AT TRADE SHOWS

• Hot Wants to buy now
• Sales Worth a sales call
• Low Low sales priority

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APPROACH STAGE

• Pre-approach
• - Actions before calling on prospect
• Approach
• - Meeting and greeting the buyer

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PRESENTATION EXAMPLES

• Telemarketing
• Need Satisfaction
• Problem Solutions

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TELEMARKETING

• Cemetery lots
• Vacation condos
• Non-profit organizations
• Senior Citizens

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HANDLING OBJECTIONS

• Postpone
• Agree and Neutralize
• Ignore the Objection

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CLOSING THE SALE

• Trial close
• Assumptive close
• Urgency close

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FREE MEALS TO CLOSE THE SALES

• Condominiums
• Financial planning
• Medicare advantage

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FOLLOW-UP

• Phone call
• Letter or card
• E-mail

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CUSTOMER RELATIONS MANAGEMENT (CRM)

• Develop Customer Database
• Identify Individual Customer Preferences
• Contact Most Important Customers

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CRM DATA MINING INFORMATION

• Identify high-value customers
• Sales force contacts
• Credit/debit information
• Number of website visits

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CUSTOMER RELATIONSHIP MANAGEMENT EXAMPLES

• Business hotel regulars
• Heavy user customers on airlines
• Major university endowment sponsors

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DIRECT MARKETING

• Kiosks sales
• Infomercial sales
• Network marketing

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KIOSKS SALES

• Supermarkets
• Airports
• Shopping Centers
• Vending Machines

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VENDING PRODUCTS

• Redbox
• Cupcakes
• Baby products
• Ramen noodles

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INFOMERCIALS SALES

• Person Product
• George Foreman Lean Mean Grilling Machine
• Ron Popeil Showtime Rotisserie
  Oven
• Tom Vu Real Estate Seminars

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RECENT INFOMERCIALS

• Product Sales
• Snuggie 18 million
• Bumpits 9 million
• Ped Egg 30 million

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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