12/2/20151 PROMOTION Identify the components of the promotional
mix. Slide 2 12/2/20152 Promotion: The communication with customers
about products (goods and services) to create demand and encourage
purchases. Slide 3 12/2/20153 Promotion may be done locally,
regionally, nationally, or internationally. The goal of promotion
is to communicate with the largest target audience possible.
Promotion helps to attract new customers, increase sales to
existing customers, and stimulate brand name recognition. Slide 4
12/2/20154 Promotion should be designed to Create an awareness and
understanding of companies and/or products and to introduce new
products, inform consumers or changing prices, and explain new
services. Convince consumers about the benefits or using certain
products or patronizing particular businesses. Remind consumers
where to purchase certain products, to encourage purchases, and to
stimulate additional purchases. Slide 5
12/2/2015www.brainybetty.com5 Promotion is one of the four major
elements of the marketing mix. Product Place Price Promotion Slide
6 12/2/2015www.brainybetty.com6 Promotional activities affect how
customers view a company. Deceptive or misleading promotion
practices can harm a business. Slide 7
12/2/2015www.brainybetty.com7 Promotional mix: The combination of
all types of communication used by a business to inform, persuade,
or remind consumers about a company and/or its products. Slide 8
12/2/20158 Promotional mix elements Personal selling Advertising
Public Relations Publicity Sales promotion Remember PAPS PAPS Slide
9 12/2/20159 Advertising Any PAID form of NONPERSONAL presentation
of ideas, goods, or services made by an IDENTIFIED SPONSOR. Slide
10 12/2/201510 Personal selling PERSONALIZED, TWO-WAY COMMUNICATION
with a customer in the process of exchanging merchandise for money
or credit. Slide 11 12/2/2015www.brainybetty.com11 Personal Selling
Major form of promotion Very expensive because it requires
individuals to make contact with potential customers Designed to
complete the sale once a customer has been attracted to a business
by advertising, publicity/public relations, or special events Slide
12 12/2/201512 Activities designed to build positive relations with
the customers, employees, and the community. Participation in
community programs Effective PR can help build a positive image for
a company, but cannot cover up bad news. Slide 13
12/2/2015www.brainybetty.com13 Publicity NEWSWORTHY INFORMATION
about a company, product, or person placed in the media AT NO
CHARGE with the purpose of creating a desired image. Slide 14
12/2/2015www.brainybetty.com14 Promotional information packages
that contain press releases and photographs. Help create awareness
of products or designers latest fashions and apparel items Serve as
free advertising for the business if pictures are published by the
media Slide 15 12/2/201515 Free Carried by mass media. Mass media
are those instruments of communication designed to reach the mass
of the people. Must be newsworthy to earn media space and time Must
be timely, have local interest, and appeal to mediums audience
Seems more credible to consumers than advertising Company has
little control over content of message or how it is presented to
the public Can have a good or bad result Helps make styles,
manufacturers, retailers, trends, or designers better known to the
public Slide 16 12/2/2015www.brainybetty.com16 A written news story
sent as publicity to a newspaper or magazine. Used to create public
awareness of store openings, civic events at store locations, or
announce employee promotions Used to create a positive image and
awareness about a company, designer, or product Slide 17 12/2/2015
17 Sales Promotions Sales promotions are the set of marketing
activities undertaken to boost sales of the product or service. The
purpose of Sales Promotions is to STIMULATE DEALER EFFECTIVENESS or
to INDUCE PURCHASES during a specific time period. Slide 18
12/2/201518 Example of sales promotions Coupons, contests, coupons,
freebies, loss leaders, point of purchase displays, premiums,
prizes, product samples, and rebates. Slide 19 12/2/201519
Coordinating the promotional mix elements Most businesses rely on
more than one form of promotion to achieve promotional goals. The
promotional mix is based on product characteristics and the
existing market for the product. The promotional mix changes over
time, just as products and consumers change. Slide 20 12/2/201520
Coordinating the promotional mix elements (cont.) Each promotional
activity should be designed to complement the other types of
promotion being used by the business. National advertising should
be coordinated with local promotional activities. Sales staff
should be informed of promotional activities taking place. Slide 21
* Advertising: * Any paid form of non-personal communication * Has
an identified sponsor * Used to inform, persuade, and remind
consumers about a good or service * Media: * The form of
communication * Examples: TV, Radio, Newspaper, Online Slide 22 *
Institutional Promotion: Institutional Promotion: * Designed to
sell the reputation of the company or organization. Not to sell a
specific product. * Product Promotion: * Designed to sell a
specific product or service. Slide 23 * Endorsement: * A celebrity
or athlete is a paid spokesman for a product or company. *
Testimonial: * Typically a non-celebrity, that explains the
advantages and positive experience they have had with a product or
company. Slide 24 * 1. Publication Media * 2. Broadcast Media * 3.
Direct-Mail * 4. Online (Web) Media * 5. Out-of-Home Media * 6.
Specialty Media * 7. Other Promotional Media Slide 25 * Publication
(Print) Media * Written form of communication * Types: * Newspapers
* Magazines * Journals Slide 26 Newspapers come in many varieties
such as National, Regional, City, and Local * Coupon Ad * Sale Ad *
Informational Ad Slide 27 Advantages: Low cost, quick, and easy to
produce Visual and Verbal communication Variety of advertisement
size and pricing Reaches customers daily Target a specific
geographic market. Ex: Charlotte Observer and South Charlotte
Weekly Slide 28 Disadvantages: Wasted circulation. Short lifespan.
Discarded shortly after reading. Poorer color and print quality
Slide 29 * Sports * News * Special Interest * Fashion *
Entertainment * Travel and Leisure * Educational * Regional * Comic
* Home and Garden * Animals * Shopping * Fitness * Health Slide 30
Disadvantages: * Professional Preparation needed - raising the
costs * Lengthy preparation times - information is less timely *
Expensive Slide 31 Advantages: * Wider circulation. * Readers tend
to keep magazines for a long time. * High quality color and
pictures * Target market based on demographics. Ex: Sports
Illustrated for Kids * Target market based on interests.
(Psychographic) Ex: Golf Digest Slide 32 Broadcast Media is any
visual or auditory form of communication. Types: - Radio -
Television - Satellite Radio Slide 33 Advantages: * Consumers
listen in cars, home and at work * Low costs * Short preparation
time * Target specific geographic markets * Target specific
demographic markets Ex: Spanish-speaking stations * Target specific
psychographic markets Ex: Sports, Country, Top 40 Slide 34
Disadvantages: * Does not provide a visual impact * Message has
short lifespan * Commercial Clutter * I-pods, I-pads, E-books, Cell
phones... Who is listening to radio? Slide 35 Advantages: *
Consumers are reading less, and watching more. * TV Ad show
accurate color and details in HD! * The product is seen in action.
* National Ads reach an extremely large audience. * Ex: During the
Super Bowl * Local and Regional channels allow for target
marketing. * Ex: Fox Sports South, Charlottes News Channel 14 *
Interest specific channels allow for target marketing. * Ex: The
Big10 Network, NFL Network, Food Network Slide 36 Disadvantages: *
Very High Costs * Message has short lifespan * Lengthy productions
times Slide 37 * Personalized Letters * Catalogs * Brochures *
Coupon Mailers * Company Newsletters * Postcards * Invitation
Letters * Awards and Prize Letters * Bill Enclosures * Offers and
Sales Direct Mail: Advertising that is distributed directly to the
potential consumer through the mail. Types: Slide 38 Advantages: *
Little wasted circulation * Can be very cost effective * Target
market can be segmented in many ways * Customer Specific *
Personally address the customer * Results are easy to measure
Disadvantages: * Can be considered junk mail * Increasing cost of
postage Slide 39 Any type of message that reaches the customer
outside of their home. Types: * Signs * Billboards * Public Transit
* Airplane Banners * Stadium Signage Slide 40 Advertising messages
that appear on the internet. * Banner Ads * Pop-up Ads * Email Ads
* Commercials (Before watching a video online) * Roll-over * Social
Media Slide 41 Advantages: * Repetitive Viewing. * Target specific
geographic area. * Exposure 24/7. Disadvantages: * Only a short
message. - Due to low exposure time. * Limited segmentation. Slide
42 Promotional messages on everyday items. - Typically inexpensive.
* Wide Variety of forms: * Pens/Pencils * Coffee Mugs * Key Chains
* Hats * T-shirts * Bags * Calendars Slide 43 * Grocery store carts
* Hot air balloons Slide 44 * Reach target market in a friendly,
casual manner * Low cost per contact * Market segmentation use is
very good * Customization * Message is ignored * Consumers are not
focused on your subject matter * May not be your target market
consumers * Lack of good method to measure effectiveness Slide 45 *
Social Media * Twitter and Facebook advertising * Advertising on
sports uniforms * NBA just approved for 2012-13 season *
Commercials before YouTube Video Slide 46 Source Encoding Message
Channel Decoding Receiver FEEDBACK NOISE Slide 47 BRAND IGNORANCE
AWARENESS KNOWLEDGE LIKING PREFERENCE CONVICTION PURCHASE The
Objectives of Advertising Slide 48 Selling is O Part of the
Promotional Mix O Communication between the salesperson and the
customer O Consultative selling For example: A salesperson
suggesting a wireless network to a customer who travels frequently
O Feature-benefit selling - Product Features -Customer Benefits
Slide 49 Advantages of Selling O Information O Flexibility O
Feedback O Persuasion O Follow-up Slide 50 Disadvantages of Selling
O Cost per customer O Time O Control of sales people O Lack of
Skills Slide 51 Buying Motives O Rational For example: Purchasing a
hybrid car due to increased gas mileage O Emotional For example:
Purchasing a Valentines gift for a loved one Slide 52 Types of
Customer Decision Making O Extensive For example: An expensive,
luxury car O Limited For example: A summer vacation to Disney World
O Routine For example: Pizza on a Friday night Slide 53
Characteristics of a good salesperson O Communication Skills O
Emotional Intelligence Skills O Computer and Technical Skills O
Positive Attitude O Goal Orientated O Empathy O Honesty O
Enthusiasm Slide 54 Understand preliminary activities associated
with selling Slide 55 Employee training and development O Product
knowledge -Training- formal and informal -Research on your own O
Sales techniques O Ethical behavior Slide 56 Summarize the sales
process Slide 57 The approach is O The first encounter with a
potential customer O Service approach O Greeting approach O
Merchandise approach O Combination approach Slide 58 How to
determine consumer needs O Determine customers reasons for buying O
Observing O Listening O Questioning and Engaging Slide 59 Product
presentation time! O What products do you show? O How they will use
the product? O Show a medium-priced product first! O Highlight the
features and benefits Slide 60 Product presentation time! O Display
and handle the product O Demonstrate the product O Use sales aids O
Involve the customer O Hold the customers attention Slide 61 How to
handle objections O Objection vs. Excuse O Objection based on:
-Need -Product -Source -Price -Time Slide 62 Methods to handle
objections O Substitution O Boomerang O Question O Superior-point O
Denial O Demonstration O Third party Slide 63 Methods for closing
the sale O Which O Standing-room only O Direct O Service Slide 64
Suggestion selling is O Selling additional goods to enhance the
original purchase O Cross selling O Upselling O Special sales
opportunities Slide 65 How to maintain a relationship with the
customer O Order processing O Departure O Order fulfillment O
Follow-up O Customer service O Keeping a client file O Evaluate
sales efforts Slide 66 What is CRM? O Customer Relationship
Management O Implement technology and CRM O Maintain contacts O
Maintain relationships O Develop customer loyalty O Implement
rewards program Slide 67 Execute sales transactions Slide 68 Sales
transactions include: O Cash or sales check O Debit card sales O
Credit card sales O Layaway sales O On approval sale O
Cash-on-delivery (COD) O PayPal Slide 69 How much do I owe? O
Multiply unit price times the quantity purchased. O Add the totals
together to determine the subtotal. O Calculate sales tax. O
Calculate shipping charges if applicable. O Add the subtotal, tax
and shipping charges. ItemQty.PriceExtension Socks2$2.99$5.98
T-shirt1$7.99$7.99 Subtotal:$ 13.97 Tax $1.05 Shipping $2.00 TOTAL
$17.02 Slide 70 How much does the retailer owe? O Debit sales For
example: CeMours Hair Studio is charged a nominal fee regardless of
the amount purchased O Credit sales For example: Paynet Systems
charges are based on a sliding scale Slide 71 Prospecting O
Preapproach O Prospect (lead) O Endless chain method O Cold
canvassing Slide 72 B2B/Retail Preparation O Preapproach O
Straightening/cleaning O Adjusting price tickets O Stock
information O Arranging displays
