Marketing-Mix-Marketing-Mix-PromotionPromotionLearning ObjectivesDefine PromotionPromotional MixAdvantages and disadvantages of each element of the promotional mix Factors that determine the type of promotional tools used 1. Define PromotionPromotion is generally thought of as a sequence of activities designed to inform and convince individuals to purchase a product, subscribe to a belief, or support a cause. Promotion is best viewed as the communication function of marketing. 2. Promotional Mixincorporates the combination and types of non-personal and personal communication the organization employs during a specified periodCategories:Non-personal communicationPersonal communication2.1 Advertising Advertising is often thought of as the paid, non-personal communication used in the promotion of a cause, idea, product, or service by an identified sponsor. various advertising delivery methods Cooperative Advertising A system by which ad costs are divided between two or more parties. Usually, such programs are offered by manufacturers to their wholesalers or retailers, as a means of encouraging those parties to advertise the product. Institutional AdvertisingAdvertising whose purpose is to promote the image of a corporation rather than the sale of a product or service. This advertising is also used to create public awareness of a corporation or to improve its reputation in the marketplace.Specialty AdvertisingThe placement of advertising messages on a wide variety of items of interest to the target markets such as Product PlacementExamples of Ad.:Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. Discuss: Advantages and limitations of using Newspaper, Magazine, radio, TV, Internet as advertising media.Profiles of Major Media TypesNewspapersAdvantages: Flexibility, timeliness; good local market coverage;broad acceptance Limitations: Short life; poor reproduction quality MagazinesAdvantages: High geographic and demographic selectivity;credibility and prestige; high-quality reproduction;long life; good pass-along readership(传阅率传阅率) Limitations:Long ad purchase lead time(广告购买前置时间广告购买前置时间 ) RadioAdvantages: Mass use; high geographic and demographic selectivity; low costLimitations: Audio only; fleeting exposure; lower attention; fragmented audiences OutdoorAdvantages: Flexibility; high repeat exposure; low cost; low message competitionLimitations:Little audience selectivity Profiles of Major Media TypesTelevisionAdvantages: Combines sight, sound, motion; high attention; high reach; appealing to sensesLimitations:High absolute costs; fleeting exposure;less audience selectivityPromotional mix advertising mediaEasily ignored, low readershipLow cost, interactive, 24-hourLong ad-purchase lead time, high other-ad competitionLow cost, excellent local coverage, wide consumer useHigh cost, junk mail image, need accurate mailing listVery flexible, targets specific audience, complete informationBrief exposure, limited audience selectivityHigh repeat exposure, low cost, local market focusLong ad-purchase lead time, lack of flexibilityLong life, quality reproduction, high demographic selectivityFleeting exposure, audio presentation onlyLow cost, high geographic & demographic selectivityHigh cost, fleeting exposure, limited audience selectivityMass coverage, high attention with sight, sound,& motionCompetition from other features, limited selectivityGood local coverage, broad acceptance, believableWeaknesses Strengths InternetYellow pagesDirect mailOutdoorMagazinesRadioTelevisionNewspaperMedia2.2 Personal Selling direct persontoperson communication whereby a seller attempts to assist and/or persuade prospective buyers to purchase a companys product or service. Examples of Personal SellingSales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone. 2.3 Public Relations It has been described as building goodwill with a companys various publics, including The overall goal of any public relations effort is to project a positive company image. Examples of Public RelationsNewspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches and seminars. SpecialEventsWritten MaterialsCorporate Identity MaterialsSpeechesNewsAudiovisualMaterialsMajor Public Relations ToolsPublic ServiceActivitiesWeb SiteIncreasingly, companies are utilizing interactive social media outlets, such as blogs, Microblogging and social media. Unlike the traditional tools which allowed for only one-way communication, social media outlets allow the organization to engage in two-way communication, and receive immediate feedback from various stakeholders. The development of social media increased the speed of breaking news, so public relations professionals no longer have the luxury of time to construct a news statement after a daily news deadline. The viral effect of social networks require adequate training and real-time social media monitoring in order to detect the early signs of breaking news. Public Relations in Crisis5s麦当劳15日晚则在其官方微博上称，央视“315”晚会所报道的北京三里屯餐厅违规操作的情况，麦当劳中国对此非常重视。我们将就这一个别事件立即进行调查，坚决严肃处理，以实际行动向消费者表示歉意。我们将由此事深化管理，确保营运标准切实执行，为消费者提供安全、卫生的美食。欢迎和感谢政府相关部门、媒体及消费者对我们的监督。2.4 Sales Promotion marketing activities that provide extra value or incentive to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales. Usu. in the short term. Examples of Sales PromotionsCoupons, free gifts, sweepstakes抽奖活动 , contests, product samples, rebates, tie-ins搭售 , trade shows商品发布/展销会 , trade-ins抵价购物, and exhibitions. 3. Strengths and Weaknesses AdvertisinglStrengthsEfficient for reaching many buyers simultaneouslyEffective way to create image of the brandFlexible Variety of media to choose fromlWeaknessesReaches many people who are not potential buyersAds are subject to criticismExposure time is shortTotal cost is highPersonal sellinglStrengthsSalespeople can be persuasive and influentialTwo-way communication Message can be targeted to specific individuals lWeaknessesCost per contact is highSalespeople may be hard to recruit and motivatePresentation skills may vary between salespeoplePublic relationslStrengthsTotal cost may be lowMedia-generated stories seen as more credible than marketer-sponsored messageslWeaknessesMedia may not cooperateHeavy competition for media attentionMarketer has little control over the messageSales promotionlStrengthsSupports short-term price reductions Variety of sales promotion tools availableEffective in changing short-term behaviorlWeaknessesImpact may be limited to short-termPrice-related sales promotion may hurt brand imageEasy for competitors to copy4. Factors that determine the type of promotional tools used There are several factors that should be taken into account in deciding which, and how much of each tool to use in a promotional marketing campaign. Resource availability and the cost of each promotional tool Market size and concentration Customer information needs Promotional mix comparisonToolStrengthsWeaknessesAdvertisingLarge audience, low cost per contact, can modify messageOverall expensive, difficult to measure effectivenessDirect mailEffective when using targeted and current mailing listReaches disinterested parties and considered “junk”Personal sellingTailored to each buyer, immediate buyer responseExpensiveTelemarketingImmediate feedback and immediate buyer responseOften seen as intrusiveWord of mouthInexpensive, has high credibilityDifficult to manageSales promotionInexpensive, short-term sales increasesNon-personal appealPublic relationsCreates positive attitude about product/firmNon-personal appeal, hard to measure effectivenessPush vs. PullPushConvince retailers and wholesalers to market the products PullConvince consumers to ask intermediaries for the productsConsumersRetailersWholesalersWhy the increase in Sales Promotion?Growing retailer powerDeclining brand loyaltyIncreased promotional sensitivityBrand proliferationFragmentation of consumer marketShort-term focusIncreased managerial accountabilityCompetitionClutterStep 1. Prospecting and QualifyingIdentifying and Screening For Qualified Potential Customers.Steps in the Selling ProcessStep 2. Pre-approachStep 3. ApproachKnowing How to Meet the Buyerto Get the Relationship Off to a Good Start.Step 4. Presentation/ DemonstrationTelling the Product “Story” to the Buyer, and Showing the Product Benefits.Steps in the Selling Process Step 5. Handling Objections Step 6. Closing Step 7. Follow-UpSeeking Out, Clarifying, and Overcoming Customer Objections to Buying.Asking the Customerfor the Order.Following Up After the Sale toEnsure Customer Satisfactionand Repeat Business.Alternative Steps:Find emGrab emShow emAnswer emSell emKeep em