week9-communication - University of San Diego Home Pages
Download
Report
Transcript week9-communication - University of San Diego Home Pages
Week 9- 11-29-04
Integrated
Communication Strategy
and Promotion Tools
Communication
The process by which we
exchange or share
meanings through a common
set of symbols.
The Communication
Process
Noise
Sender
Encoding
Message
Message
Channel
Feedback
Decoding
Message
Receiver
Marketing Communications
Strategy
Let’s communicate with customers…
Steps to follow:
Identify Target audience, Expected Response (objectives),
Design the Message, Select the Media (importance of
continuity: INTEGRATION of the COMMUNICATION MIX),
Feedback.
One Main constraint: The budget.
How much to spend?
Setting the Communication
Budget
Wide possible range
Affordable method - ignores promotion
impact on sales
Percent of sales method - not opportunity
based
Competitive parity method - company needs
are individual
Task and Objective Method
Define specific promotion objectives
Determine tasks needed to achieve
Estimate costs of tasks
Sum costs to set total promotion budget
Integrated Marketing
Communications
The Need for Integrated Marketing
Communications
Conflicting messages from different sources or
promotional approaches can confuse
company or brand images
Marketing Communications
Mix
Advertising
Any paid form of non-personal presentation and promotion
of ideas, goods, or services by an identified sponsor.
Personal Selling
Personal presentation by a firm’s sales force for the purpose
of making sales and building customer relationships
Direct Marketing
Direct Connections with carefully targeted individual
consumers to both obtain an immediate response and
cultivating lasting customers relationships.
Marketing Communications
Mix
Public Relations
Building good relations with the company’s various publics by
obtaining favourable publicity, building a good corporate image
and handling stories or events.
Sales Promotion
Short-term incentives to encourage the purchase
or sale of a
product or service
Most impact when coordinated with
entire marketing mix.
Goals and Tasks of
Promotion
Informing
Reminding
Target
Audience
Persuading
Goals and Tasks of
Promotion
Informative Objective
Increase awareness
Explain how product works
Suggest new uses
Build company image
Goals and Tasks of
Promotion
Persuasion Objective
Encourage brand switching
Change customers’ perception of
product attributes
Influence buying decision
Persuade customers to call
Goals and Tasks of
Promotion
Reminder Objective
Remind customers that product
may be needed
Remind customers where to buy product
Maintain customer awareness
On Line
http://www.tide.com
The AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message.
AIDA and the Promotional
Mix
Awareness Interest
Desire
Action
Advertising
Very
effective
Very
effective
Somewhat
effective
Not
effective
Public
Relations
Very
effective
Very
effective
Very
effective
Not
effective
Sales
Promotion
Somewhat
effective
Somewhat
effective
Very
effective
Somewhat
effective
Personal
Selling
Somewhat
effective
Very
effective
Very
effective
Very
effective
Sales ($)
Product Life Cycle and the
Promotional Mix
Maturity
Introduction
Growth
Decline
Time
Light
Heavy use of
Advertising; Advertising;
prePR for
introduction awareness;
publicity
sales
promotion
for trial
Advertising’
PR, brand
loyalty;
personal
selling for
distribution
Ads
decrease;
sales
promotion;
personal
selling;
reminder &
persuasive
AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
Push and Pull Strategies
Push strategy: trade promotions and
personal selling efforts push the product
through the distribution channels.
Pull strategy: producers use
advertising and consumer sales
promotions to generate strong
consumer demand for products.
Advertising
U.S. advertising spending exceeds $240
billion per year
Industry employs only 284,000
Ad budgets of some firms exceed over $2
billion per year—over
$6 million per day!
Advertising Strategy:
message strategy
Identify consumer benefits
Develop compelling creative
concept (The Big Idea)
Appeals - meaningful
credible & believable
Distinctively expressed
How to bring the message to Life:
message execution
Choose style - how it is said
Slice of life
Fantasy
Musical…
Set tone - humour - Sexual Fear- other?
Select words - memorable and
attention-getting
Format elements - copy headline
- illustration
Selecting Advertising Media
Decide reach, frequency and
impact.
Choose media type
Select specific media vehicles
Decide on media timing
Set timing pattern of ads
Advertising Evaluation
Communication effects
Sales effects
Evaluation difficult especially sales
Sales vs. ad expense
Experiments
Sales-Promotion Objectives
Objectives
More short-term sales
Build long-term share
Stimulate trial
Switch from competitors
Hold loyal customers
Increase purchase
quantity
Consumer-Promotion Tools
Samples - trial amount of product
Coupons - certificate to give buyer a saving
Cash refund offers - reduction after purchase
Premiums - free or low-cost with purchase
Contests – Promotional events-chance to win
Public Relations:
potential activities
Press relations
Public affairs
Lobbying
Investor relations
Development
Public Relations:
major tools
Company news
Speeches
Special events
Written materials
Audiovisual production
Corporate identity
Public service activities
Company web sites
Steps in Sales Force
Management
Designing sales
force strategy
and structure
Recruiting and
selecting
salespeople
Training sales
people
Compensating
salespeople
Supervising
salespeople
Evaluating
salespeople
Managing the Sales Force:
sales-force structure
Organize by Territory
defines job - travel
By Product
expertise - overlap
Customer or Industry
focus - one face
Complex structures
Managing the Sales Force:
sales force size
One of the most
productive assets
Also most expensive
Size impacts costs
Workload approach
Account classes (A-B)
Sales calls (24-48)
Compute size
Recruiting and Selecting
Salespeople
Traits of the successful vary widely
Enthusiasm, Persistence, Initiative, SelfConfidence, Job Commitment.
Selection procedures specific to
companies
Tests -personal characteristics references - previous employment interviewer’s views
Training Sales People
Training Goals
Learn company and
assimilate culture
Technical information
Know customers and
industry competitors
Average training
period four months
Compensating Salespeople
Design to motivate and
direct activities
Straight salary
Straight commission
Salary plus bonus
Salary & commission
Salary for stable income
Variable part for results
Supervising Salespeople
Average face-to-face
selling time 30%
Establish customer
targets and call norms
Set time spent on
prospecting
Annual call plan
Time & duty analysis
Salesforce automation
Motivating Salespeople
Organizational
Climate
Opportunities
rewards - value
Sales Quotas
achievable
stretch goals
Incentives
sales meetings
awards - contests
Evaluating Salespeople
Potential benefits of Evaluation
Expectations clear
Gather Information
Helpful feedback
Motivation
Evaluation
Comparison with Peers
Comparing with past sales
Qualitative Evaluation
Steps in the Selling
Process
Prospecting
Salesperson Identifies Qualified Potential
Customers.
Qualifying
Process of Identifying Good Prospects
and Screening Out Poor Ones.
Preapproach
Salesperson Learns as Much as Possible
About a Prospective Customer Before
Making a Sales Call.
Approach
Salesperson Meets the Buyer and Gets
the Relationship Off to a Good Start.
Steps in the Selling
Process
Presentation
Salesperson Tells the Product “Story” to
the Buyer Using the Need-Satisfaction
Approach.
Handling
Objections
Salesperson Seeks Out, Clarifies, and
Overcomes Customer Objections to
Buying.
Closing
Salesperson Asks the Customer for an
Order.
Follow-Up
Occurs After the Sale and Ensures
Customer Satisfaction and Repeat
Business.