Chapter 16 Revised

7/27/2019 Chapter 16 Revised

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PowerPoint Presentation by Charlie Cook

The University of West Alabama

Copyright 2006 Thomson Business & Professional Publishing.

All rights reserved.

Part 4 Focusing on the Customer:

Marketing Growth Strategies

PromotionalPlanning


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Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 164Exhibit 16-1

A PersonalCommunicationChannel

Parents XYZ Company

"We love you" "Buy my product"

E-mailmessage

Personal visitto campus

Flowers and a "carepackage" sent

Daughterat college

Newspaperadvertisement

Personal sales call

Business gift

Customers

Source

Message

ChannelOptions

Receiver

(a) (b)

A Small BusinessCommunication

Channel

Similarity of Personal and

Small Business

Communication Processes


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Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 165

Promotional Communications

Promotional MixA blend of nonpersonal, personal, and special forms

for communication techniques aimed at a target

market

Makeup of the mix is determined by:

Geographical nature of target market

Size of promotional budget

Products characteristics


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Determining the Promotional Budget

How much should a small business spend onpromotion?

Allocating a percentage of sales

Deciding how much can be spared

Spending as much as the competition

Determining what it takes to do the job


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Personal Selling in the Small Firm

Personal SellingA sales presentation (promotion) delivered in a one-

on-one manner

Requires:

Product knowledge

Well-prepared salespresentation

Ability to build good will


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The Sales Presentation: Prospecting

ProspectingA systematic process of continually looking for new

customers

Prospecting Techniques

Personal referrals Salesperson initiates customer contact through referral by

another party known to the customer

Impersonal referrals

Information on potential newcustomers developed from publicrecords and published sources


7/16Copyright 2006 Thomson Business & Professional Publishing. All rights reserved. 1612

The Sales Presentation: Prospecting

Prospecting Techniques (contd.)Marketer-initiated contacts

Market surveys are used to identify prospects.

Customer-initiated contacts

Potential customers are identifiedthrough their contacts withthe firm.



Customer Goodwill and

Relationship Selling

Relationship Selling

Building customer goodwill for future sales to satisfied

customers through:

Maintaining a good personal appearance

Having a pleasant personality

Using professional etiquette in all customer contacts

Understanding the customers point of view

Maintaining high ethical standards in the customer relationship



Advertising Practices for Small Firms

AdvertisingThe impersonal presentation of a business idea

through mass media

Advertising Objectives

To sell by informing, persuading, and reminding

To serve as a complement to product quality and

efficient service

To properly reflect changes in customer needs and

preferences



Types of Advertising

Product AdvertisingThe presentation of a business idea designed to make

potential customers aware of a specific product or

service and create a desire for it

Institutional AdvertisingThe presentation of information about a particular firm,

designed to enhance the firms image


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Advantages and Disadvantages of Traditional Advertising Media

Medium Advantages Disadvantages

Newspapers Geographic selectivity and flexibility;short-term commitments; short leadtime; immediacy; year-roundreadership

Little demographic selectivity;limited color capabilities; low pass-along rate; may be expensive

Magazines Good reproduction; demographic andregional selectivity; relatively longlife; high pass-along rate

Long-term commitments; slowaudience buildup; long lead time

Radio Low cost; immediacy; highly portable; short-term commitments;entertainment carryover

No visual treatment; short messagelife; commercial clutter

TelevisionWide, diverse audience; creativeopportunities for demonstration;immediacy; entertainment carry-over

Short message life; high campaigncost; long-term commitments; longlead times; commercial clutter

Outdoor media Repetition; moderate cost; flexibility;geographic selectivity

Short message; lack of demo-graphic selectivity; distracting noiselevels

Source: Charles W. Lamb, Jr., Joseph F. Hair, Jr., and Carl McDaniel, Marketing(Cincinnati: South-Western, 2004), p. 505. Exhibit 16.3


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Web Advertising

Basic Web PromotionsBanner ads

Advertisements that appear across a Web page, often asmoving rectangular strips

Pop-up ads Advertisements that burst openon computer screens

E-mail promotion

Advertising delivered by means

of electronic mail Spam: unsolicited e-mail


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Sales Promotional Tools

Sales PromotionAn inclusive term for any promotional techniques that

are neither personal selling or advertising

Used in combination with personal selling and advertising

SpecialtiesTangible and enduring functional items of worth

distributed personally to recipients that serve as

reminders of the firm

Pens, key chains, magnets, and clothing imprinted with thename, logo, or slogan of the firm


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Sales Promotion Tools (contd.)

Trade Show ExhibitsProvide hands-on experience with products

Are less costly than personal selling

Making Trade Show Exhibits Effective Check out the trade shows history.

Prepare a professional-looking display.

Have a sufficient quantity of literature on hand.

Make sure you have a good product.

Do pre-show promotion. Have a giveaway or gimmick.

Train booth personnel.

Follow up!


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PublicityInformation about a firm and its products or services

that appears as a news item, usually free of charge

Provides visibility for the firm

Requires regular contacts withthe news media


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When to Use Sales PromotionFor manufacturers

To stimulate channel membersretailers and wholesalerstomarket a firms products

For wholesalers

To induce retailers to buy inventories earlier than theynormally would

For retailers

To persuade customers to make a purchase

Strategic Alliances and Sales Promotion

Joining with another firm to promote products by

sharing marketing resources and customers

Documents

Chapter 16 Revised