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Promotional Mix

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Methods used to engage Consumers

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Types of Promotional Tools

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-Adverising -Sales Promotion -Personal Selling -Public Relations -Direct & Digital Marketing

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Advertising

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Paid, non-personal presentation & Promotion of ideas, goods & services

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Types of Advertising

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Broadcast Print Internet Mobile Outdoor

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Pros and Cons of Advertising

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Reach masses of consumers at low cost per exposure Builds long-term image for a product Can trigger quick sales Has a public Nature, Seen as Legit Impersonal and lacks the direct persuasiveness of company salespeople.

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Pros and Cons of Personal Selling

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Face to Face engagement Builds customer relationships Buyer feels need to listen to pitch Most expensive

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Pros and Cons of Sales Promotion

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Effective short-run sales tool Wide assortment of tools Attracts consumer attention Offers strong incentives to purchase Used to dramatize product offers and boost sales Invites and rewards quick response Short-lived effects: less effective than advertising and personal selling in building relationships advertising efficiency has declined

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Pros and Cons of Public Relations

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Very believable Can dramatize a company product Reaches many prospects effective and economical when thought out Marketers tend to underuse public relations or use it as an afterthought.

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Pros and Cons of Direct & Digital Marketing

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More targeted and interactive immediate and personalized Messages can be prepared quickly—even in real time—and tailored to appeal to specific consumers or brand groups. W ell suited to highly targeted marketing efforts, creating customer engagement, and building one-to-one customer relationships.

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3 Factors that shape new marketing model

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1. Changing Consumers 2. Changing Market Strategies 3. Advancements in Communications

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Traditional Marketing Model

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Force-feed message to the masses, interrupt consumers.

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New Marketing Model

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More Specialized form of marketing.Highly Targeted. Reach smaller groups.

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Brand Content Managers

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Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.

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Integrated marketing communications (IMC)

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Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

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IMC Functions

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Mixing Advertising, Sales Promotion, Direct & Digital Marketing, PR, and Personal Selling to deliver a clear message.

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Push strategy

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A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members, which in turn promote it to final consumers.

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Pull strategy

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A promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel.

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Pros and Cons of Television

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Good mass-marketing coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses high absolute costs; high clutter; fleeting exposure; less audience selectivity

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Pros/Cons: online, mobile, and social media

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focus on individuals and customer communities; immediacy; personalization, interaction, and engagement capabilities; social sharing power; low cost Potentially narrow impact; difficult to administer and control; the audience often controls content and exposure

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Pros/Cons: newspapers

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flexibility; timeliness; good local market coverage; broad acceptability; high believability short life; poor reproduction quality; small pass-along audience

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Pros/Cons: Direct mail

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high audience selectivity; flexibility; no ad competition within the same medium; allows personalization relatively high cost per exposure; "junk mail" image

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Pros/Cons: Magazines

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high geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life and good pass-along readership long ad purchase lead time; high cost; no guarantee of position

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Pros/Cons: radio

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good local acceptance; high geographic and demographic selectivity; low cost audio only; fleeting exposure; low attention ("the half-heard" medium); fragmented audiences

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Pros/Cons: outdoor media

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flexibility; high repeat exposure; low cost; low message competition; good positional selectivity little audience selectivity; creative limitations

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Advertising strategy

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The strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating advertising messages and selecting advertising media.

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Slice of life:

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This style shows one or more "typical" people using the product in a normal setting. For example, a Silk Soymilk "Rise and Shine" ad shows a young professional starting the day with a healthier breakfast and high hopes.

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Lifestyle:

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This style shows how a product fits in with a particular lifestyle. For example, an ad for Athleta active wear shows a woman in a complex yoga pose and states: "If your body is your temple, build it one piece at a time."

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Fantasy:

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This style creates a fantasy around the product or its use. For example, recent IKEA ads show consumers creating fanciful room designs with IKEA furniture, such as "a bedroom for a queen made by Bree and her sister, designed by IKEA."

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Mood or image:

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This style builds a mood or image around the product or service, such as beauty, love, intrigue, or serenity. Few claims are made about the product or service except through suggestion. For example, a Nestlé Toll House ad shows a daughter hugging her mother after surprising her with an unexpected weekend home from college. The mother responds, "So I baked her the cookies she's loved since she was little."

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Musical:

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This style shows people or cartoon characters singing about the product. For example, M&Ms "Love Ballad" ad, part of the Better with M campaign, featured Red singing Meatloaf's "I would do anything for love," showcasing his commitment to actress Naya Rivera. Red has second thoughts, however, when Rivera can't resist adding Red to some of her favorite treats, including cookies, cake, and ice cream. To all of that, Red answers with the lyric "But I won't do that . . . or that . . . or that . . . or that."

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Personality symbol:

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This style creates a character that represents the product. The character might be animated (Mr. Clean, the GEICO Gecko, or the Michelin Man) or real (perky Progressive Insurance spokeswoman Flo, Allstate's Mayhem, Ronald McDonald).

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Technical expertise:

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This style shows the company's expertise in making the product. Thus, natural foods maker Kashi shows its buyers carefully selecting ingredients for its products, and Jim Koch of the Boston Beer Company tells about his many years of experience in brewing Samuel Adams beer.

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Scientific evidence:

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This style presents survey or scientific evidence that the brand is better or better liked than one or more other brands. For years, Crest toothpaste has used scientific evidence to convince buyers that Crest is better than other brands at fighting cavities.

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Testimonial evidence or endorsement:

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This style features a highly believable or likable source endorsing the product. It could be ordinary people saying how much they like a given product. For example, Subway's spokesman Jared is a customer who lost 245 pounds on a diet of Subway sandwiches. Or it might be a celebrity presenting the product, such as Beyoncé speaking for Pepsi.

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salesperson

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An individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

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sales force management

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Analyzing, planning, implementing, and controlling sales force activities.

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territorial sales force structure

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A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line.

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Product sales force structure

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A sales force organization in which salespeople specialize in selling only a portion of the company's products or lines.

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customer (or market) sales force structure

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A sales force organization in which salespeople specialize in selling only to certain customers or industries.

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Outside sales force (or field sales force)

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Salespeople who travel to call on customers in the field.

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inside sales force

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Salespeople who conduct business from their offices via telephone, online and social media interactions, or visits from prospective buyers.

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6 Steps in Salesforce Management

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1. Designing sales force strategy and structure 2. Recruiting and selecting salespeople 3. Training salespeople 4. Compensating salespeople 5. Supervising salespeople 6. Evaluating salespeople

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selling process

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The steps that salespeople follow when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up.

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Prospecting

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The sales step in which a salesperson or company identifies qualified potential customers.

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Preapproach

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The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call.

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approach

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The sales step in which a salesperson meets the customer for the first time.

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Presentation

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The sales step in which a salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems.

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handling objections

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The sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying.

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closing

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The sales step in which a salesperson asks the customer for an order.

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Follow-up

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The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business.

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consumer promotions

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Sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships.

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Price packs (also called cents-off deals)

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Offer consumers savings off the regular price of a product. The producer marks the reduced prices directly on the label or package. They can be single packages sold at a reduced price (BOGO) or two related products banded together. More effective than coupons in stimulating short-term sales.

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Premiums

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Are goods offered either free or at low cost as an incentive to buy a product, ranging from toys included with kids' products to phone cards and DVDs. They may come inside the package (in-pack), outside the package (on-pack), or through the mail.

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Advertising specialties, also called promotional products

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Are useful articles imprinted with an advertiser's name, logo, or message that are given as gifts to consumers. Typical items include T-shirts and other apparel, pens, coffee mugs, calendars, key rings, mouse pads, tote bags, coolers, golf balls, and caps.

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trade promotions

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Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, and promote it in advertising. *contests, premiums, displays, straight discount, allowance, free goods, , push money—cash or gifts to dealers or their sales forces to "push" the manufacturer's goods*

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business promotions

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Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.Major Tools: conventions & trade shows and sales contests.

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Joint venturing

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Entering foreign markets by joining with foreign companies to produce or market a product or service.

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Global Firm Problems

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Highly unstable governments and currencies restrictive government policies and regulations high trade barriers and corruption

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Major International Marketing Decision Steps

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1. Look at the global marketing environment 2. Deciding whether to go global 3. Deciding which Markets to enter 4. Deciding how to enter the market 5. Deciding on the global Marketing Program 6. Deciding on the global marketing Organization

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Trade Barriers

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-Tariffs or duties -quotas and exchange controls

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nontariff trade barriers

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Biases against a firms bids, restrictive product standards, or excessive host-country regulations or enforcement.

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quotas

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Limits on the amount of foreign imports that a country will accept in certain product categories.

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exchange controls

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Limit the amount of foreign exchange and the exchange rate against other currencies.

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tariffs or duties

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Taxes on certain imported products designed to raise revenue or protect domestic firms. They are often used to force favorable trade behaviors from other nations.

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Demographic Characteristics

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education Population size and growth Population age composition

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geographic Characteristics

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climate country size Population density—urban, rural transportation structure and market accessibility

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Economic Factors

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GDP size and growth income distribution industrial infrastructure natural resources financial and human resources

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sociocultural Factors

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Consumer lifestyles, beliefs, and values Business norms and approaches cultural and social norms languages

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Political and Legal Factors

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National priorities Political stability government attitudes toward global trade government bureaucracy Monetary and trade regulations

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Licensing

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Entering foreign markets through developing an agreement with a licensee in the foreign market.

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Indirect exporting

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Working through independent international marketing intermediaries. Involves: less investment less risk Allows fewer mistakes.

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direct exporting

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Firm handles its own exports. Greater Risk and Investment Greater potential profits

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Once a company has decided to sell in a foreign country, it must determine the best mode of entry. Its choices are exporting

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Joint venturing, and direct investment.

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Exporting

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Simplest way to enter a country. Entering foreign markets by selling goods produced in the company's home country, often with little modification.

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Contract manufacturing

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A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its service. The drawbacks: decreased control over the manufacturing process and loss of potential profits on manufacturing. The benefits are the chance to start faster, with less risk, and the later opportunity either to form a partnership with or buy out the local manufacturer.

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Management contracting

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A joint venture in which the domestic firm supplies the management knowhow to a foreign company that supplies the capital; the domestic firm exports management services rather than products. Benefits: A low-risk method of getting into a foreign market Yields income from the beginning. Attractive if the contracting firm has an option to buy some share in the managed company later on. prevents the company from setting up its own operations for a period of time. Drawbacks: If the company can put its scarce management talent to better uses or if it can make greater profits by undertaking the whole venture.

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Joint ownership

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A cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control. Often, companies form these ventures to merge their complementary strengths in developing a global marketing opportunity. Drawbacks: The partners may disagree over investment, marketing, or other policies.

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adapted global marketing

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An international marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return.

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Product adaptation

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Adapting a product to meet local conditions or wants in foreign markets.

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Product invention

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Creating new products or services for foreign markets. I.e. Ford developed the economical, low-priced Figo model especially for entry-level consumers in India;

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Communication adaptation

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A global communication strategy of fully adapting advertising messages to local markets.

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Whole-channel view

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Designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.

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straight product extension

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Marketing a product in a foreign market without making any changes to the product.

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