promo selling pricing.ppt I.ppt II

8/7/2019 promo selling pricing.ppt I.ppt II

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Advertising

Ingredientsof thePromotion

Mix

Ingredientsof thePromotion

Mix

Public Relations

Personal Selling

Sales Promotion


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Slide 18-15

FIGURE 18-2FIGURE 18-2 The promotional mix


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ReceiverDecodingChannelEncodingSender

Noise

Channel


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Informing Reminding

Persuading

TargetAudience


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Attention Interest Desire Action

Awareness

Knowledge

Liking

Preference

Conviction

Purchase


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Advertising

Personalselling

Sales

promotion

Publicrelations

Either not effective or inefficient

Very effective

Somewhat effective

Awareness Knowledge Liking Preference Conviction

Effectiv

eness

Purchase


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PushandPull Strategies

Nature of the Product

Stage in the ProductLife Cycle

Target Market Characteristics

Type of Buying Decision

Available Funds$ $ $


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Choose Promotion Mix

Develop Promotion Budget

Set Promotion Objectives

Identify Target Market

Analyze the Marketplace


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Promotion objectives should:

be measurable, concrete

be based on sound research, with awell-defined target audience

be realistic

reinforce the overall marketing plan andrelate to specific marketing objectives


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Objective: To RemindTo remind consumers that Peter Pan peanut butter is thecreamiest peanut butter and is available at their nearest groceryand convenience stores

Objective: ToInform (Awareness)To increase the top-of-mind awareness level for Peter Panpeanut butter from 16 percent to 24 percent

Objective: To Persuade (Attitudinal)To increase the percentage of parents who feel that Peter Pan peanut butter is thebest peanut butter for their children from22 percent to 35 percent


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Arbitrary Allocation

All - You - Can - Afford

Competitive Parity

Percent of Sales

Market Share Objective and Task


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Self-Regulation

National Advertising Division (NAD)

National Advertising Review Board (NARB)

Federal Regulation Federal Trade Commission (FTC)


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Advertising Spending

Return

o

nA

dvertising

Expenditures

Increasing efficiencyas ad budget becomessufficient

Diminishing

returnson additionalspending


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Corporate Image

Advocacy Advertising

Typesof

Advertising

TypesofAdvertising

Pioneering

Competitive

Comparative

ProductAdvertising

InstitutionalAdvertising


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Determine the campaign objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.


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ProfitProfit

HealthHealth

Love or RomanceLove or Romance

FearFear

AdmirationAdmiration

ConvenienceConvenience

Fun and PleasureFun and Pleasure

Vanity and EgotismVanity and Egotism

Save money, keep from losing moneySave money, keep from losing money

Body-conscious, healthyBody-conscious, healthy

Sell cosmetics and perfumesSell cosmetics and perfumes

Social embarrassment, growing old, losinghealth, powerSocial embarrassment, growing old, losinghealth, power

Celebrity endorsement effectiveCelebrity endorsement effective

Fast-food and microwave productsFast-food and microwave products

Vacations, beer, amusement parksVacations, beer, amusement parks

Expensive, conspicuous itemsExpensive, conspicuous items


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Mood orImage

Musical

Demon-stration

Scientific

Real/AnimatedProduct

Symbols

Fantasy

Lifestyle

Spokes-person/

Testimonial

Slice-of-Life

Humorous

Common

Executional

Styles

Common

Executional

Styles


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Pretests

Examples:

Consumer jury tests

Portfolio or unfinished rough tests

Physiological tests

Post-testsExamples:

Recognition tests

Recall tests

Attitude measures

Audience size measurement


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MajorTools

Used ByPR

Professionals

Major

ToolsUsed By

PRProfessionals

New Product Publicity

Product Placement

Customer SatisfactionPhone Lines

Consumer Education

Event Sponsorship

Issue Sponsorship

Web Sites


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Type of buyer Desired results Sales promotion examples

Loyal customers Reinforce behavior, Loyalty marketing programs,

People who buy your increase consumption, such as frequent-buyer cardsproduct most or all change purchase timing or frequent-shopper clubsof the time Bonus packs that give loyal

consumers an incentive tostock up or premiums offeredin return for proofs-of-purchase

Competitors Break loyalty, persuade Sampling to introduce yourcustomers to switch to your brand products superior qualities

People who buy a compared to their brandcompetitors product Sweepstakes, contests, or most or all of the time premiums that create interest

in the productBrand switchers Persuade to buy your Any promotion that lowers thePeople who buy a brand more often price of the product, such asvariety of products coupons, price-off packages,in the category and bonus packs

Trade deals that help make theproduct more readily availablethan competing products

Price buyers Appeal with low prices Coupons, price-off packages,People who or supply added value refunds, or trade deals thatconsistently buy the that makes price less reduce the price of brand toleast expensive brand important match that of the brand that

would have been purchased

Source: From Sales Promotion Essentials, 2E by Don. E. Schultz, William A. Robinson, and Lisa A. Petrison. Reprinted by permission of NTC Publishing Group, Lincolnwood, IL.


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Coupons

Premiums

Frequent Buyer Programs

Contests andSweepstakes

Samples

Point-of-PurchaseDisplays

Six

CategoriesofConsumer

Sales

Promotions

Six

CategoriesofConsumer

Sales

Promotions


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Trade Allowances

Push Money

Training

Free Merchandise

Store Demonstrations

Business Meetings,Conventions, Trade-Shows

Six

CategoriesofTradeSales

Promotions

Six

CategoriesofTradeSales

Promotions


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Cost ControlCost Control

Message ControlMessage Control

TargetedTargeted

DetailedInformation

DetailedInformation

Closing SalesClosing Sales


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Personal Selling is more important if...

The product has a high value.

It is a custom-made product.

There are few customers.

The product is technically complex.

Customers are geographically concentrated.

Advertising/Sales Promotion is more important if...

The product has a low value.

It is a standardized product.

There are many customers.

The product is simple to understand.

Customers are geographically dispersed.


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Traditional Personal Selling

Sell products (goods and services)

Focus on closing sales

Limited sales planning

Spend most contact time tellingcustomers about product

Conduct product-specific needsassessment

Lone-wolf approach to the account

Proposals and presentations basedon pricing and product features

Sales follow-up focused on productdelivery

Relationship Selling

Sell advice, assistance, and counsel

Focus on improving the customers bottom line

Considers sales planning as top priority

Spend most contact time attempting to build aproblem-solving environment with the customer

Conduct discovery in the full scope of thecustomers operations

Team approach to the account

Proposals and presentations based on profitimpact and strategic benefits to the customer

Sales follow-up is long term, focused onlong-term relationship enhancement

Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., Consultative Selling: Walking the Walk in the New Selling Environment,National Conference on Sales Management,Proceedings, March 1996.


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BasicSteps in

theSelling

Process

Basic

Steps inthe

SellingProcess

Generating Sales Leads

Qualifying Sales Leads

Making the Sales Approach

Making the SalesPresentation

Handling Objections

Closing the Sale

Following Up


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MotivateSales Force

EvaluateSales Force

ManageTurnover

Train SalesForce

DevelopCompen-

sation Plan

StructureSales Force

DetermineSales Force

Size

Recruit SalesForce

Set SalesObjectives

Major Tasks ofSales

Management

Major Tasks ofSales

Management


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01 2 3 4 5 6 7 8 9 10

50

100

150

200

Dollars

Quantity

MC

ATCAVC

AFC


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Quantity (units)

Price(

$)

Fixed Costs

Total Revenue

Total Costs

Profits

Losses

Break Even


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$ $ $ $ $ $ $ $$ $ $ $ $ $ $ $

Fine-Tune Base Price

Choose Strategy

Estimate Demand, Costs,and Profits

Establish Pricing Goals

Right Price


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Unfair Trade Practices

Key Legal

and EthicalIssues

Related toPrice

Key Legal

and EthicalIssues

Related toPrice

Price Fixing

Price Discrimination

Predatory Pricing


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CashDiscount

Quantity

Discount

FunctionalDiscount

Trade Loading

EDLP

Seasonal

Discounts

PromotionalAllowances

Rebates

PriceReductions

PriceReductions


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Basing-Point

Freight-Absorption

Zone Pricing

Uniform Delivered

FOB Origin

PricingTacticsBased on

Geography

PricingTactics

Based onGeography


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Odd-EvenPricing

Two-PartPricing

BundlePricing

BaitPricing

PriceLining

FlexiblePricing

ProfessionalServices

LeaderPricing

SinglePrice

Common

Special Pricing

Tactics

Common

Special Pricing

Tactics

Documents

promo selling pricing.ppt I.ppt II