Transcript Mass Selling - felemarket.sk

PROMOTION
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EARN: ENTREPRENEURSHIP – A RICHNESS
FROM NATURE
PROMOTION
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Personal Selling
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Mass Selling
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Advertising
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Publicity
Sales Promotion
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PROMOTION
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Communication of information
influence the buyer
3 methods
Personal Selling
Mass Selling
Sales Promotion
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PERSONAL SELLING
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Direct communication between seller and buyer
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Face to face contact
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Usually used to sell industrial goods and services
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Also used to sell some expensive consumer items,
eg. Cars, computer systems
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PROMOTION
Mass Selling
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communicating with large numbers of potential
customers
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“non”-personal selling
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used when the target market is large and dispersed
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Advertising is a form of Mass Selling
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PROMOTION
Advertising
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the main form of mass selling
any paid form of nonpersonal communication
eg. Techniques include billboard ads and TV
commercials
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PROMOTION
 Publicity
The generation of awareness about a
product beyond regular advertising
methods.
Usually less costly than advertising
because sometimes the message is
spread for free by a newspaper article or
TV story.
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PROMOTION
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Publicity
Examples of Publicity
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famous person photographed using your product
your product mentioned in National News in a
positive way
your product featured in a movie
TV commentary about aspects of your product
trade magazines carrying a story
eg. Road and Track doing a feature on the new
Landrover
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PROMOTION
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Publicity
Publicity can be negative
eg. If a famous movie star gets electrocuted using
your product, this can cause people to NOT want
to buy it - this would be a major problems
eg. If your product is sabotaged - this could include
tampering with medical products ie. Tylenol
eg. If there are negative rumours about the
ingredients in your product
eg. If there are negative ingredients about the
moral aspects of your company
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PROMOTION PEOPLE
Sales Managers
 Advertising Managers
 Sales Promotion Managers
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PROMOTION PEOPLE
Sales Managers
 Are concerned with managing personal selling
 In small companies this person also does the
advertising and sales promotion
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PROMOTION PEOPLE
Advertising Managers
 They manage the mass selling activities
 They chose the company to make the
commercials
 Pick the billboard signs etc.
 If the company is big enough they hire an outside
agency
 They may also do publicity as well
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PROMOTION PEOPLE
Sales Promotion Managers
 They manage the Sales Promotion activities
 They decide about in-store coupons, prizes, contests
etc.
 They spend a lot of time visiting the retail outlets
where the product is sold
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PEOPLE IN SALES PROMOTION
Sales Promotion Managers
- They deal with
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Point-of-purchase advertising
Specialty advertising
Samples
Coupons
Premiums
Loyalty points / air miles
Rebates
Contests
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RELATIONSHIP BETWEEN ADVERTISING AND THE PRODUCT LIFE
CYCLE (PLC)
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PROMOTION OBJECTIVES
1-Informing
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people have to know about it, in
order to buy it
Advertising that seeks to develop demand through
presenting factual information on the attributes of a
product or service.
Tends to be used in promoting NEW products.
Use in the Introductory Stage of Product Life Cycle (PLC)
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PROMOTION OBJECTIVES
2- Persuading
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when competition offers similar
product, you have to “persuade”
them to try yours
Advertising that emphasizes using words and/or images to
try to create an image for a product and to influence
attitudes about it.
Used by Coke and Pepsi: lifestyle ads.
Used after the Introductory Stage of the PLC
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PROMOTION OBJECTIVES
3-Reminding
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when new competition comes along,
you have to “remind” customers of
your greater experience, advantages
etc.
Advertising whose goal is to reinforce previous promotional
activity by keeping the product’s or service’s name in front of
the public.
Used in the Maturity Period and the Decline Stage of the PLC.
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4 PROMOTION JOBS
ATTENTION
 INTEREST
 DESIRE
 ACTION
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PROMOTION
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Pushing through the promotion channel
Producer
retailer
personal selling
customer
wholesaler
Promotion techniques used
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run ads in trade magazines to make wholesalers
aware of the product
provide incentives to retailers to carry the item
run contests for salespeople to win prizes for selling
the product
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PROMOTION
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Pulling through the promotion channel
Producer
retailer
personal selling
customer
To wholesaler
Promotion techniques used
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run TV commercials so customers directly learn
about the product - then they go to the store and
ask for it, or call around to find out where it is
sold
give free samples to potential customers
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PROMOTION
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Pulling through the promotion channel
Producer
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personal selling
To wholesaler
retailer
customer
Sometimes you do “pulling” when the
Middlemen cannot be pushed, that is they
already have a competitors product, so the
way to get Middlemen to WANT to carry
the product, is to have customers ask for
it.
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DIRECT MARKETING
 Potential
Mail Recipients
Once your name is on a list for a
newspaper subscription, your name and
address can be “sold” to another
company who will mail you information to
try and convince you to buy their product.
Buying and selling lists (databases) of
such names is big business.
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COMPARISON OF DIRECT MARKETING AND GENERAL ADVERTISING
Direct Marketing
General Advertising
-Selling to individuals. Customers are
-Mass selling. Buyers identified as
broad
often identifiable by name, address, and groups sharing common demographic
and
purchase behavior.
psychographic characteristics.
-Products have added value or service. -Product benefits do not always
include
-Distribution is important product benefit. convenient distribution channels.
-The medium is the marketplace.
-Retail outlet is the marketplace.
-Marketer controls product until delivery. -Marketer may lose control as product
enters distribution channel.
-Advertising used to motivate an
immediate order or inquiry.
-Advertising used for cumulative effect
over time to build image, awareness,
loyalty, benefit recall. Purchase action
deferred.
- Repetition used within ad.
-Repetition used over time.
- Consumers feel high perceived risk –
product brought unseen. Recourse is
distant.
-Consumers feel less risk – have direct
contact with the product and direct
recourse.
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ADOPTION PROCESS
Innovators
 Early Adopters - sales people concentrate their
efforts here
 Early majority
 Late majority
 Laggards, or nonadopters
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SETTING THE PROMOTION BUDGET
Most common method is based on using past
percentages
- that is to say,,,,
If you sold 1,000,000€ and you spent 20% on
advertising, which = 200,000€
then,
if you spend 400,000€ you should sell 2€ million!
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SETTING THE PROMOTION BUDGET
Other methods - used in real world
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Matching what competition spends
Based on what is required to get number of
customers that will meet corporate objectives called the Task Method
- sometimes stated as a % of sales
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