Transcript Document
MT 219 Marketing Unit Seven Advertising, Public Relations, Personal Selling and Sales Promotion Note: This seminar will be recorded by the instructor. Review of Unit 6 • How did Unit 6 go? Questions or concerns? • Additional questions? The Promotion Mix Four elements of the promotional mix: Advertising Public Relations Personal Selling Sales Promotion The fifth- Direct Marketing will be explored in Unit 8. Integrated Marketing Communications • Assuring consistent messages through the coordination of promotional efforts • The objective is to generate maximum informational and persuasive impact • Generally, all five of the promotional mix are used to get maximum effect- advertising, personal selling, sales promotion, direct marketing and publicity Promotion mix strategies- Push vs. Pull • Push - budgets are directed to resellers, often through personal selling • Pull – budgets are directed to the consumer, often through advertising and promotion Advertising • Paid non-personal communication through mass media • Advantages - Cost efficient on a per person reached basis - Highly flexible, and allows for repetition - Adds value - Lends legitimacy • Disadvantages - Out of pocket outlay is high - Hard to measure sales effect unless source coding is used - Feedback usually slow Types of Advertising • • • • Institutional Advocacy Product Pioneer • • • • Competitive Comparative Reminder Reinforcement Major Advertising Objectives • Inform • Persuade • Remind • Good way to remember this is R.I.P. Budget Decisions • Affordable • Percent of sales • Competitive parity • Objective and task Developing Advertising Strategy • Two major elements- Creating advertising messages and media selection • Key issues in developing advertising strategy - Breaking through the clutter - The need to make advertisements that break through clutter Message Strategy • Message should be -Relevant and important -Believable -Executable -Able to convey competitive advantage -Memorable -Undertake some effect to move consumer towards some action -Consistent with other parts of the promotional mix Media Decisions • Sets reach, frequency and impact objectives • Select major media types • Specific methods- media vehicles and schedule • Set media scheduling patterns Television Advantages Large audiences Low cost per person reached Sight and sound Visible Confers legitimacy Disadvantages High out of pocket cost Perishable Waste coverage The Internet Advantages Extremely selective Interactive Low cost Immediate feedback Disadvantages Viewers controls viewing Fairly low impact on viewer Newspapers Advantages Reaches large audiences Purchased to be read Short lead time Frequent publication Believable Good for comparison Can cover local areas Disadvantages Not selective socioeconomic ally Short life Poor reproduction Cluttered Not as popular as they once were Direct Mail Advantages Very selective Flexible and selectable segments Can be personalized Can arrive in solo package Disadvantages Considered as junk mail High cost per exposure Magazines Advantages Selectivity Good reproduction Long life Prestigious Full color ads Disadvantages High absolute dollar cost Long lead time Radio Advantages Inexpensive Flexible Targeted Disadvantages Audio only Background medium Short life Outdoor Advertising Advantages Flexible Can provide heavy exposure Low cost per exposure Good placement selectivity Disadvantages No good audience selectivity Creative limitations People may ignore Public Relations Communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Also called publicity. Individual brands generally have publicity/public relations done at the corporate level. Some people call this “free advertising,” but is can be expensive and must be done well to be effective. Examples? Personal Selling • Paid Personal Communication • Advantages - Provides significant impact on customers due to personal contact - Interactive- Allows for immediate impact and adjustment • Disadvantages - Costly- most costly part of promotion based on people reached • If it is so costly, why is it done? Steps in Managing the Sales Force • Designing sales force strategy and structure - Structure-Territory, Product or Customer-based - Size of sales force - Outside or inside sales force - Individual or team selling • Recruiting and selecting salespeople • Training salespeople Steps in Managing the Sales Force- cont. • Compensating salespeople - Commission - Salary - Combination • Supervising and motivating salespeople • Evaluating salespeople’s performance The Personal Selling Process • • • • • • • Prospecting Pre-approach- Research is important Approach Presentation Handling objections Closing the Sale Follow-up- To help ensure subsequent purchases Sales Promotion • Direct incentive to buy • Growing rapidly due to its effectiveness • May be directed at salespeople, resellers, and consumers- anywhere in the distribution chain • Examples include free samples, coupons, contests, premiums, rebates, buy one get one frees, frequent buyer programs, etc. Any Questions? Thank you for attending! See you next week!