The communication process

Slide 18-7

THE COMMUNICATION PROCESS Encoding and Decoding

Encoding
Decoding

Field of Experience

Slide 18-8

THE COMMUNICATION PROCESS Feedback

Feedback Loop
Response

Feedback
Pretesting

Noise

Slide 18-10

THE COMMUNICATION PROCESS Encoding and Decoding

Encoding
Decoding

Field of Experience

Slide 18-8

AIDA and the Hierarchy of Effects

Purchase Conviction

Preference Liking

Knowledge Awareness

Attention

Interest

Desire

Action

Elements of the Promotional Mix

Promotional mix: blend of all the promotional mix elements designed to achieve promotional objectives.
Personal selling: interpersonal promotional process involving a sellers person-to-person presentation to a prospective buyer Nonpersonal selling includes: Advertising, Product placement, Sales promotion, Direct marketing, Public relations

Elements of the Promotion Mix

Advertising

Ingredients of the Promotion Mix

Public Relations

Personal Selling

Sales Promotion

FIGURE 18-2 The promotional mix

Slide 18-15

Goals and Tasks of Promotion

Informing Reminding

Target Audience

Persuading

Objectives of Promotion
Provide Information
Inform the market about the availability of a particular good or service

Increase Demand
Some promotions are aimed at increasing primary demand, the desire for a general product category More promotions are aimed at increasing selective demand, the desire for a specific brand

 Differentiate the Product

Homogenous demand for many products results when consumers regard the firms output as virtually identical to its competitors then, the firm has virtually no control over marketing variables

Accentuate the Products Value

Promotion can explain the greater ownership utility of a product to buyers, thereby accentuating its value and justifying a higher price

When Elements of Promotion Are Most Useful

Advertising Effectiveness Personal selling Sales promotion

Public relations
Awareness Knowledge Liking Preference Conviction Purchase

Very effective Somewhat effective Either not effective or inefficient

Factors that Affect the Promotion Mix

Nature of the Product

Stage in the Product Life Cycle

Target Market Characteristics

Type of Buying Decision

Available Funds

$$$

PushandPull Strategies

Creating a Promotion Plan

Analyze the Marketplace

Identify Target Market

Set Promotion Objectives

Develop Promotion Budget

Choose Promotion Mix

Criteria for Setting Promotion Objectives

Promotion objectives should:

be measurable, concrete

be based on sound research, with a well-defined target audience

be realistic

reinforce the overall marketing plan and relate to specific marketing objectives

Examples of Promotion Objectives

Objective: To Inform (Awareness)
To increase the top-of-mind awareness level for Peter Pan peanut 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 the best peanut butter for their children from 22 percent to 35 percent

Objective: To Remind
To remind consumers that Peter Pan peanut butter is the creamiest peanut butter and is available at their nearest grocery and convenience stores

Regulation of Promotion

Self-Regulation
National Advertising Division (NAD) National Advertising Review Board (NARB)

Federal Regulation
Federal Trade Commission (FTC)

Major Types of Advertising

Corporate Image Institutional Advertising Advocacy Advertising Types of Advertising Pioneering Product Advertising

Competitive

Comparative

Executional Styles for Advertising

Scientific Musical

Slice-of-Life Lifestyle

Demonstration

Common Executional Styles

Spokesperson/ Testimonial

Mood or Image

Fantasy Real/ Animated Product Symbols

Humorous

The Tools of Public Relations

New Product Publicity Product Placement

Major Tools Used By PR Professionals

Customer Satisfaction Phone Lines Consumer Education Event Sponsorship Issue Sponsorship Web Sites

Tools for Consumer Sales Promotion

Coupons

Premiums

Six Categories of Consumer Sales Promotions

Frequent Buyer Programs

Contests and Sweepstakes Samples Point-of-Purchase Displays

Tools for Trade Sales Promotion

Trade Allowances

Push Money

Training

Free Merchandise

Six Categories of Trade Sales Promotions

Store Demonstrations Business Meetings, Conventions, Trade-Shows

Advantages of Personal Selling

Detailed Information

Message Control

Targeted

Cost Control Closing Sales

Advertising Versus Personal Selling

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.

Differences Between Traditional & Relationship Selling

Traditional Personal Selling
Sell products (goods and services) Focus on closing sales Limited sales planning Spend most contact time telling customers about product Conduct product-specific needs assessment Lone-wolf approach to the account Proposals and presentations based on pricing and product features Sales follow-up focused on product delivery

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 a problem-solving environment with the customer Conduct discovery in the full scope of the customers operations Team approach to the account Proposals and presentations based on profit impact and strategic benefits to the customer Sales follow-up is long term, focused on long-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.

Steps in the Selling Process

Generating Sales Leads Qualifying Sales Leads

Basic Steps in the Selling Process

Making the Sales Approach Making the Sales Presentation Handling Objections Closing the Sale Following Up

Functions of Sales Management

Evaluate Sales Force

Set Sales Objectives

Structure Sales Force

Manage Turnover

Major Tasks of Sales Management

Determine Sales Force Size

Motivate Sales Force

Develop Compensation Plan

Train Sales Force

Recruit Sales Force