Chapter 9 PROMOTION

Objectives
Developing & Managing an Advertising
Program
Deciding on Media & Measuring
Effectiveness
Sales Promotion
Public Relation
Principles of Personal Selling

Major Decisions in Advertising
Objectives Setting
Budget Decisions
Message Decisions Media Decisions
Campaign Evaluation

Informative Advertising
Build Primary Demand

Persuasive Advertising
Build Selective Demand
Comparison Advertising
Compares One Brand to
Another
Reminder Advertising
Keeps Consumers Thinking
About a Product.
Advertising Objectives
Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time
The Five Ms of Advertising
Mission

Sales
goals

Adver-
tising
objectives
Money

Factors to
consider:

Stage in PLC

Market share
and con-
sumer base

Competition
and clutter

Advertising
frequency

Product
substituta-
bility
Message

Message generation

Message evaluation
and selection

Message execution

Social-responsibility
review
Media
Reach, frequency,
impact
Major media types
Specific media
vehicles

Media timing
Geographical
media allocation
Measure-
ment

Communi-
cation
impact

Sales
impact
Advertising Budget Factors
Stage in the
Product Life Cycle
Market Share &
Consumer Base
Competition &
Clutter
Advertising
Frequency
Product
Substitutability
Profiles of Major Media
Types
Newspapers
Advantages: Flexibility, timeliness; good local market coverage;
broad acceptance, high believability

Limitations: Short life; poor reproduction quality; small
pass-along audience
Television
Advantages: Combines sight, sound, motion; high attention;
high reach; appealing to senses

Limitations: High absolute costs; high clutter; fleeting exposure;
less audience selectivity
Direct Mail
Advantages: Audience selectivity; flexibility, no ad compe-
tition within same medium; allows personalization

Limitations: Relative high cost; junk mail image
Radio
Advantages: Mass use; high geographic and demographic
selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention;
nonstandardized rates; fragmented audiences
Magazines
Advantages: High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life; good pass-along readership

Limitations: Long ad purchase lead time; waste circulation;
no guarantee of position
Outdoor
Advantages: Flexibility; high repeat exposure; low cost;
low message competition

Limitations: Little audience selectivity; creative limitations
Profiles of Major Media
Types
Classification of
Advertising Timing Patterns
Month
Number of
messages
per month
Concen-
trated
(1) (2) (3)
Level Rising Falling Alternating
(4)
Continuous
(8) (7) (6) (5)
(9)
Inter-
mittent
(10) (11) (12) (9)
Advertising Strategy
Message Execution
Typical
Message
Execution
Styles
Testimonial
Evidence
Slice of Life
Scientific
Evidence
Lifestyle
Technical
Expertise
Fantasy
Musical
Personality
Symbol
Mood or
Image
Turning the Big Idea Into an Actual Ad to Capture the
Target Markets Attention and Interest.
Advertising Program Evaluation
Communication Effects

Is the Ad Communicating Well?
Advertising Evaluation
Sales Effects

Is the Ad Increasing Sales?


Why the increase in Sales
Promotion?
Growing retailer power
Declining brand loyalty
Increased promotional sensitivity
Brand proliferation
Fragmentation of consumer market
Short-term focus
Increased managerial accountability
Competition
Clutter
Long-Term Promotional
Allocation
0
10
20
30
40
50
60
1986 88 90 92 94 1996
Year
%
t

o
f

t
o
t
a
l

-

3

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r
.
M
A

Trade Promo
Media Adv
Cons. Promo
Cox Direct 19th Annual Survey of Promotional Practices
Channels of Sales Promotions
MANUFACTURER
RETAILER
Trade
Promotions
CONSUMER
Consumer
Promotions
Push
Push
Pull
Retail
Promotions
Consumer Promotion
Consumer-Promotion
Objectives
Consumer-Promotion
Tools
Point-of-Purchase
Displays
Premiums
Price Packs
Cash Refunds
Coupons
Samples
Patronage
Rewards
Games
Sweepstakes
Contests
Advertising
Specialties
Patronage
Rewards
Entice Consumers to
Try a New Product
Lure Customers Away
From Competitors Products
Get Consumers to Load Up
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building
Deal Proneness,
Liechtenstein, Burton, & Netemeyer,
Journal of Retailing, Summer 1997
Examination of deal proneness among
consumers in a supermarket setting
Surveys & Grocery Receipts used
Eight types of deals:
Cent-off, One-free, Gift, Display, Rebate,
Contest, Sale, & Coupon
Deal Proneness,
Liechtenstein, Burton, & Netemeyer
Cluster analysis yielded two interpretable results:
49% are deal prone, 51% not
24% High Deal prone, 50% intermediate,
26% deal insensitive
Deal-proneness a generalized construct -
(crosses type of promotion)
Younger & Less educated more likely to be
deal prone
Trade-Promotion
Objectives
Trade-Promotion
Tools
Specialty
Advertising
Items
Contests
Free Goods
Buy-Back
Guarantees
Allowances
Price-Offs
Patronage
Rewards
Push Money
Discounts
Premiums
Displays
Persuade Retailers or
Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in
Advertising
Push a Brand to Consumers
Trade Promotions
Business-Promotion
Objectives
Business-Promotion
Tools
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Conventions
Trade Shows
Sales Contests
Business-to-Business
Promotion
Special
Events
Written
Materials
Corporate
Identity
Materials
Speeches
News
Audiovisual
Materials
Major Public Relations Tools
Public
Service
Activities
Web Site
When might you decide to use
Personal Selling?
Tight budget (straight commission)
Concentrated Market
Few buyers
High value product
Product must be customized
Personal contact important
Must demonstrate product
Product involves trade-in/up
Sales force objectives
Sales force strategy
Sales force structure
Sales force size
Sales force compensation
Designing the Sales Force
Sales Force Structures
Complexity
Territorial
Product
Market
Workload Approach to Sales
Force Size
Classify customers by size
Determine desirable call frequencies
Determine total sales calls needed per
year
Determine average number of sales
calls per sales representative per year
Divide total by number per rep
Sales Force Compensation
Fixed
Variable
Expense Allowances
Benefits
Recruiting & selecting sales
representatives
Training sales representatives
Supervising sales representatives
Motivating sales representatives
Managing the Sales Force
Evaluating sales representatives
Time and Duty Analysis
Preparation
Travel
Food & Breaks
Waiting
Selling
Administration
Satisfaction
Rewards
Performance
Effort
Motivation
Sales Representative
Motivation
Evaluating Salespeople
Sources of
Information
Annual
Territory
Marketing Plan
Work
Plan
Call
Reports
Training in sales techniques &
professionalism
Negotiation skills
Relationship-building skills
Improving Sales Force
Effectiveness
The Zone of Agreement
Zone of agreement
Sellers surplus
Sellers reservation
price (seller wants
s or more)

Seller wants to move
x to the right
s
Buyers reservation
price (buyer wants
b or less)

Buyer wants to move
x to the left
b x
Final
contract
$
Buyers surplus
Performance Evaluation
Current-to-Past
Customer Satisfaction
Qualitative Evaluation

Step 1. Prospecting and
Qualifying
Identifying and Screening For
Qualified Potential Customers.


Steps in the Selling Process
Learning As Much As Possible
About a Prospective Customer
Before Making a Sales Call.
Step 2. Pre-approach
Step 3. Approach
Knowing How to Meet the Buyer
to Get the Relationship Off
to a Good Start.
Step 4. Presentation/
Demonstration
Telling 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-Up
Seeking Out, Clarifying,
and Overcoming
Customer Objections to
Buying.
Asking the Customer
for the Order.
Following Up After the Sale to
Ensure Customer Satisfaction
and Repeat Business.
Alternative Steps:
Find em
Grab em
Show em
Answer em
Sell em
Keep em