PowerPoint Presentation by Charlie Cook

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

Copyright Copyright © © 2006 Thomson Business & Professional Publishing.2006 Thomson Business & Professional Publishing.All rights reserved.All rights reserved.

Part 4 Focusing on the Customer: Part 4 Focusing on the Customer: Marketing Growth StrategiesMarketing Growth Strategies

Promotional Promotional PlanningPlanning

Copyright © 2006 Thomson Business & Professional Publishing. All rights reserved. 16–4

Exhibit 16-1

A PersonalCommunication

Channel

Parents XYZ Company

"We love you" "Buy my product"

E-mailmessage

Personal visitto campus

Flowers and a "carepackage" sent

Daughterat college

Newspaperadvertisement

Personal sales call

Business gift

Customers

Source

Message

ChannelOptions

Receiver

(a) (b)

A Small BusinessCommunication

Channel

Similarity of Personal and Similarity of Personal and Small Business Small Business

Communication ProcessesCommunication Processes

Similarity of Personal and Similarity of Personal and Small Business Small Business

Communication ProcessesCommunication Processes


Promotional CommunicationsPromotional CommunicationsPromotional CommunicationsPromotional Communications

• Promotional Mix

–A blend of nonpersonal, personal, and special forms for communication techniques aimed at a target market

–Makeup of the mix is determined by:

• Geographical nature of target market

• Size of promotional budget

• Product’s characteristics


Determining the Promotional BudgetDetermining the Promotional BudgetDetermining the Promotional BudgetDetermining the Promotional Budget

• “How much should a small business spend on promotion?”–Allocating a percentage of sales

–Deciding how much can be spared

–Spending as much as the competition

–Determining what it takes to do the job


Personal Selling in the Small FirmPersonal Selling in the Small FirmPersonal Selling in the Small FirmPersonal Selling in the Small Firm

• Personal Selling

–A sales presentation (promotion) delivered in a one-on-one manner

–Requires:

• Product knowledge

• Well-prepared sales presentation

• Ability to build good will


The Sales Presentation: ProspectingThe Sales Presentation: ProspectingThe Sales Presentation: ProspectingThe Sales Presentation: Prospecting

• Prospecting–A systematic process of continually looking for new

customers

• Prospecting Techniques–Personal referrals

• Salesperson initiates customer contact through referral by another party known to the customer

–Impersonal referrals• Information on potential new

customers developed from public records and published sources


The Sales Presentation: ProspectingThe Sales Presentation: ProspectingThe Sales Presentation: ProspectingThe Sales Presentation: Prospecting

• Prospecting Techniques (cont’d.)–Marketer-initiated contacts

• Market surveys are used to identify prospects.

–Customer-initiated contacts• Potential customers are identified

through their contacts with the firm.


Customer Goodwill andCustomer Goodwill andRelationship SellingRelationship Selling

Customer Goodwill andCustomer Goodwill andRelationship SellingRelationship Selling

• Relationship Selling

–Building customer goodwill for future sales to satisfied customers through:

• Maintaining a good personal appearance

• Having a pleasant personality

• Using professional etiquette in all customer contacts

• Understanding the customer’s point of view

• Maintaining high ethical standards in the customer relationship


Advertising Practices for Small FirmsAdvertising Practices for Small FirmsAdvertising Practices for Small FirmsAdvertising Practices for Small Firms

• Advertising–The impersonal presentation of a business idea

through mass media

• Advertising Objectives–To sell by informing, persuading, and reminding–To serve as a complement to product quality and

efficient service–To properly reflect changes in customer needs and

preferences


Types of AdvertisingTypes of AdvertisingTypes of AdvertisingTypes of Advertising

• Product Advertising–The presentation of a business idea designed to make

potential customers aware of a specific product or service and create a desire for it

• Institutional Advertising–The presentation of information about a particular firm,

designed to enhance the firm’s image


Advantages and Disadvantages of Traditional Advertising MediaAdvantages and Disadvantages of Traditional Advertising MediaAdvantages and Disadvantages of Traditional Advertising MediaAdvantages and Disadvantages of Traditional Advertising Media

Medium Advantages Disadvantages

Newspapers Geographic selectivity and flexibility; short-term commitments; short lead time; immediacy; year-round readership

Little demographic selectivity; limited color capabilities; low pass-along rate; may be expensive

Magazines Good reproduction; demographic and regional selectivity; relatively long life; high pass-along rate

Long-term commitments; slow audience buildup; long lead time

Radio Low cost; immediacy; highly port able; short-term commitments; entertainment carryover

No visual treatment; short message life; commercial clutter

Television Wide, diverse audience; creative opportunities for demonstration; immediacy; entertainment carry-over

Short message life; high campaign cost; long-term commitments; long lead times; commercial clutter

Outdoor media Repetition; moderate cost; flexibility; geographic selectivity

Short message; lack of demo-graphic selectivity; distracting noise levels

Source: Charles W. Lamb, Jr., Joseph F. Hair, Jr., and Carl McDaniel, Marketing (Cincinnati: South-Western, 2004), p. 505. Exhibit 16.3


Web AdvertisingWeb AdvertisingWeb AdvertisingWeb Advertising

• Basic Web Promotions–Banner ads

• Advertisements that appear across a Web page, often as moving rectangular strips

–Pop-up ads• Advertisements that burst open

on computer screens

–E-mail promotion• Advertising delivered by means

of electronic mail• Spam: unsolicited e-mail


Sales Promotional ToolsSales Promotional ToolsSales Promotional ToolsSales Promotional Tools

• Sales Promotion–An inclusive term for any promotional techniques that

are neither personal selling or advertising• Used in combination with personal selling and

advertising

• Specialties–Tangible and enduring functional items of worth

distributed personally to recipients that serve as reminders of the firm• Pens, key chains, magnets, and clothing imprinted

with the name, logo, or slogan of the firm


Sales Promotion Tools (cont’d.)Sales Promotion Tools (cont’d.)Sales Promotion Tools (cont’d.)Sales Promotion Tools (cont’d.)

• Trade Show Exhibits–Provide hands-on experience with products–Are less costly than personal selling

• Making Trade Show Exhibits Effective– Check out the trade show’s history.– Prepare a professional-looking display.– Have a sufficient quantity of literature on hand.– Make sure you have a good product.– Do pre-show promotion.– Have a giveaway or gimmick.– Train booth personnel.– Follow up!



• Publicity–Information about a firm and its products or services

that appears as a news item, usually free of charge• Provides visibility for the firm• Requires regular contacts with

the news media



• When to Use Sales Promotion–For manufacturers

• To stimulate channel members—retailers and wholesalers—to market a firm’s products

–For wholesalers• To induce retailers to buy inventories earlier than they

normally would

–For retailers• To persuade customers to make a purchase

• Strategic Alliances and Sales Promotion–Joining with another firm to promote products by

sharing marketing resources and customers