MKTG 409 Exam 3 (Chp 16,17,18,10)
Possible objectives of promotion
*create awareness* -Stimulate demand -encourage product trial -Identify prospects *Retain Loyal customers* -Facilitate reseller support -Combat competitive promotional efforts -reduce sales fluctuations
Social Technographics
*creators* -Publish a blog -Publish personal webpages -Upload original video -Upload original audio/music -Write articles or stories and post them *Conversationalists* -Update status on social networking sites -Post updates on Twitter *Critics* -Post ratings/reviews of -products or services -Comment on someone else's blog -Contribute to online forums -Contribute to/edit articles in a wiki Collectors -Use RSS feeds -Add tags to webpages or photos -Vote" for websites online Joiners -Maintain profile on a social networking site -Visit social networking sites Spectators -Read blogs -Watch video from other users -Listen to podcasts -Read online forums -Read customer ratings/reviews
Controlling and Evaluating Sales Force Performance
- Objectives/Performance Indicators Calls per day and cost per call Average sales/profit Actual sales vs. sales potential
Disadvantages of Advertising
-Absolute dollar outlay high -Rarely provides rapid feedback -Difficult to measure effect on sales -Less persuasive than personal selling -Limited time exposure
What makes good social media strategy?
-Be real -Be focused -Be consistent -Content is king
Media plan scheduling methods
-Continuity - continuous pattern of advertising; every day, every week, or every month -Flighting - intermittent periods of advertising and no advertising -Pulsing - combination of the first two; continuity is maintained but at certain periods advertising is increased. -A continuity schedule can be appropriate with food products, household products and products consumed on an ongoing basis. -A flighting schedule is well suited to seasonal or other products that are consumed mostly during certain time periods. -A pulsing schedule may be used for products that have little sales variation from period to period, but might see some increase in certain times, such as cold beverages in the hot summer months.
Public Relations
-Create/maintain favorable relationships between organization and stakeholders. -May focus on stakeholders rather than customers -Affects short-term sales/profits and long-term survival -Can be unfavorable --Handling is key! -Publicity: Nonpaid, Nonpersonal form of communication -Annual reports -Brochures -Event sponsorships -Sponsorship of socially responsible programs -Press releases/Conferences/Feature articles -Social media is a key tool Publicity is not free!
Managing sales territories
-Creating sales territories -Routing and scheduling salespeople
Motivating Salespeople
-Effort beyond compensation. -Achieved through an organized set of activities. -Identify needs and goals and strive to create a positive organizational climate
L'Oréal's Integrated Marketing Communicates a Decades-Old Story
-French cosmetics division of parent company L'Oréal SA, is an effective architect of integrated marketing communications -success is evidenced by long-term customer relationships, customer loyalty, and influential brand ambassadors over the years - slogan, "Because We're Worth It, -logan has since been translated into 40 languages. -the purpose of this change was to refresh their image while remaining loyal to the original message of creating a sense of self-worth and confidence among women. -Ambassadors such as Aimee Mullins, Beyoncé Knowles, and Jennifer Lopez inspire word-of-mouth communication among customers through advertisements, interviews in which they explain what the brand means to them, and advocacy efforts. -L'Oréal is the largest cosmetics company worldwide, selling an estimated 50 products per second, sales have slipped in recent years - In 2010 the company hired their first chief marketing officer, Marc Speichert, to launch all of the company's brands into the digital realm -Speichert's first contribution was to build a media team to work closely with a consumer insights team to determine what channels and content are appropriate for their different audiences. -L'Oréal became the seventh biggest advertiser in the United States -*content marketing is based on three pillars: education, empowerment, and aspiration*
Facilitating Reseller Support
-Maintain sound working relationships -Resellers view promotions as form of support -Share promotional expense -Special offers/buying allowances
The Challenges of Intellectual Property in Digital Marketing
-Marketers are well aware of the strong presence on these sites, as 93 percent of them state they use social media for business purposes. Facebook is most influential -ntellectual property (IP) refers to any creation that is both tangible and intangible and used in commerce Media such as videos, artwork, music, movies, and writings are often copyrighted, or protected from being used except by the owner's permission. -he music industry has taken a much larger hit from file sharing because of the simplicity of downloading a 5-minute song compared to a video or movie -t might seem relatively simple for an organization's marketers to ensure that employees do not place content on social media sites that violate another's copyright or trademark. However, the interactive nature of the Internet complicates this issue. -Additionally, many digital marketing campaigns make use of user-generated content, such as videos or postings -A system called Content ID allows rights holders to run against user uploads on YouTube to detect possible copyrighted material -companies can protect themselves is through browse wrap agreements, which is the part of the website that informs users about the conditions of using the site. -penalties are not often enforced when users violate the agreement because courts have determined that many of the links for these agreements are not conspicuous enough for users to notice.
Nederlander Organization Rewards the Audience
-Nederlander Organization is in its 100th year of managing Broadway-type theaters in several states and the United Kingdom. -Nederlander Organization has leveraged these relationships with their Audience Rewards program, a type of sales promotion that has allowed them to build strong relationships with customers by enhancing their experience. -unique nature of the industry and smaller size of their target market allow Nederlander to create a valuable experience for customers through personal selling and sales promotion activities -buy tickets and go to shows, they collect points and are able to redeem them for free or discounted tickets and other rewards. -Sean Free, vice president of Sales and Ticketing, comments on the types of technologies used by businesses for marketing and business strategies. -sales promotion has provided Nederlander Organization with a competitive advantage over other companies
Scripps networks Interactive: An Expert at Connecting Advertisers with Programming
-People tend to watch fewer television shows at the time of airing or choose to watch them on Internet platforms such as Netflix or Hulu -digital video recorders (DVRs) has also contributed to this challenge as viewers can fast-forward through commercials while watching their favorite shows -unique in that their programming appeals to similar target markets with similar interests -Product placement and integration work well with the lifestyle content of the company's programming because viewers are interested in the content being provided -Advertisers seek out Scripps Networks not only for placement in their shows but also for integration into their social media space -Another benefit of this integration is that the company and the advertiser *become cooperative marketing partners*, where both are working from different directions to promote both the show and the product simultaneously -A digital marketer for Scripps Networks describes the effectiveness of promotions
The four possible elements of a promotion mix
-Personal Selling -Public relations -Sales promotion -Advertising
Word-of-mouth communication
-Personal informal exchanges of communication that customers share with one another about products, brands, and companies -non-paid, personal
Product Placement and Advergaming
-Static Advertising --Virtual Billboards --Product Placement -Dynamic Advertising --Change for timing/geographical --Track data -AdverGaming
Greenwashing in advertising hurts consumers and companies
-The green industry has an estimated value of $40 billion dollars as of 2012. This includes organic food, electric and hybrid vehicles, energy-efficient light bulbs, and green cleaning products. -Greenwashing occurs when companies deceptively market products as environmentally-friendly. -Greenwashing does not have to be completely untrue. -Greenwashing has decreased consumer trust in the claims that companies are making about their environmentally-friendly products -consumers' willingness to pay more for green products has dropped between 5 and 12 percentage points from 2008 to 2012. -California sued three companies for labeling plastic bottles as biodegradable, a violation of a California labeling law - as many as 95 percent of products marketed as green were guilty of at least one form of greenwashing -European Union (EU) takes these matters so seriously that it requires advertisers to state their carbon emissions on their advertisements -Friends of the Earth Europe who engage consumers in taking a stand against companies who make false green claims -Pinocchio Awards, where people can place votes and expose companies involved in greenwashing or other misleading environmental or socially responsible activities - Each year nine companies are nominated in three different categories. The first is *Greener than Green8, which includes companies with the most egregious violations; *Dirty Hands, Full Wallet* encapsulates companies with vague financial, political, and supply-chain policies; and the final category, *One for All and All for Me*, includes those who hold the most aggressive policies regarding allocation, use, and destruction of natural resources -Greenwashing hurts all businesses in the industry, even those whose claims are accurate and honest - the best way for consumers to be informed about eco-friendly products is to do some research before going shopping
Combating Competitive Promotional Efforts
-Typically defensive -Designed to hold market share or positioning.
Building mental Associations
-brand elements, characters, etc. -Employees -Price -Partners (e.g., distributors) -Product/service quality -Integrated Marketing Communications
Indy Racing League (IRL) Focuses on Integrated Marketing Communications
-championship Auto Racing Teams (known as CART, and later as Champ Car) dominated auto racing in the United States. -One person with major concerns about the direction of CART was Tony George, president of the Indianapolis Motor Speedway and founder of the Indianapolis 500. -Indy Racing League (IRL) -Only IRL members would be allowed to race in the Indianapolis 500—the world's largest spectator sport and the premiere open-wheeled racing competition. -challenge for the new IRL was developing an integrated marketing communications program to ensure maximum informational and persuasive impact on potential fans (customers) -the temporary loss of the brand name created a challenge for promoting the new league. -three major partners left CART, including two partners (Honda and Toyota) that provided engines and technical support to CART and its teams. -In response to declining interest in IRL, marketing initiatives were taken to reverse the trend by recognizing the various promotional tools available -IRL launched a new ad campaign that targeted 18- to 34-year-old males. -two developments can be noted. First, IRL has followed a trend observed in NASCAR and has involved several celebrities in the sport through team ownership. Second, driver personalities began to give the IRL some visibility 0 Public relations for the drivers is important in television talk-show appearances and various other word-of-mouth communication that is created when spectators start discussing the drivers -2008 the IRL and Champ Car decided to reunify. -One major development for the IndyCar Series was a new television broadcast partner -televised by VERSUS, a cable channel that replaced ESPN -biggest development for IRL in recent years is its acquisition of a title sponsorship - Izod decided to become the official title sponsor of the IRL for six years -Auto racing is the fastest-growing spectator sport in the United States -The loss of Danica Patrick as a full-time driver to NASCAR also created a challenge for the IRL
Salesforce management case study
-changes: use of internet, technological advantages diminishing -client issues: improved market coverage was essential, sales force was spending to much time on wrong customers ZS insight: allowed to see customer base in totally new light -Top mistakes -- role pollution (sales people often do too much service/support work, focus should be on selling) --pursuing small opportunities ( chasing small customers can be costly, Companies should considers different channels to pursue smaller opportunities) -- an inconsistent approach to key account management (fragmented approaches can limit growth with a company's most valuable customers) --Ignoring the power of analytics --poorly designed sales territories (too many accounts are leaving dollars on table, not engaged in territories with too few opportunities)
Frank Pepe's Pizzeria Napoletana
-established after WWI founded 1925 -Francis rossetti -Frank pepe "old reliable" -was primarily for bread -Ken Berry (Ceo), places high emphasis upon delivering the promise and guarantee of quality within their product every day. -strives to retain brand equity and rely upon feedback from loyal customers -loyal customer basis built up -Challenge: customer basis has high customer expectations -replicated newhaven location, uniforms, training in newhaven -relied upon word of mouth to retain and gain new customers -Marketed on pizza box -marketing broken down into --public relations (charities, good neighbor night- donate 15% proceeds) --typical marketing/advertising -Grand opening, informational (print, direct mailing) -use social media (FB and Twitter) -*white clam pizza* most notable recipe since development
guidelines for developing body copy systematically:
-identify a specific desire or problem, -recommend the product as the best way to satisfy that desire or solve that problem, -state product benefits and indicate why the product is best for the buyer's particular situation, -substantiate advertising claims, and -ask the buyer to take action.
Major steps in creating an advertising campaign (in order)
-identifying and analyzing the target audience, -defining the advertising objectives, -creating the advertising platform, -determining the advertising appropriation, -developing the media plan, -creating the advertising message, -executing the campaign, and -evaluating advertising effectiveness.
types of sales people
-order getters -order takers -support personnel
Advertising
-paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media, including television, radio, the Internet, newspapers, magazines, video games, direct mail, outdoor displays, and signs on mass transit vehicles -Is expensive overall but cost efficient in reaching large number of consumers.
Two major trends have caused consumer-generated information to gain importance:
-the increased tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions through blogs or digital media. -Consumers' tendencies to trust other consumers over corporations. Consumers often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions.
Trade promotion planning
-timely and accurate promotion planning is key -SAP Hana, enabling real time promotion planning on massive data volumes -highly tailored planning, on any level of detail, accurate promotion spend allocation, uncovering viable promotion opportunities
Branding as Storytelling (Steven colbert)
-wheat thins -role of wheat thins wheat thins are perfect sidekick, whenever, wherever
General Steps in the Personal Selling Process
1) Prospecting 2) Preapproach 3) approach 4) Making the presentation 5) Overcoming objections 6) closing the Sale 7) Following up
General steps in developing and implementing an advertising campaign
1) identify and analyze target audience 2) define advertising objectives 3) create advertising platform 4) determine advertising appropriation 5) Develop media plan 6) advertising message 7) execute campaign 8) evaluate advertising effectiveness
Promotional Products Study
71% of people surveyed had received a promo product within the last year 34%... still had the item 76%... recalled advertiser's name 52%... improved impression of company 73%... used item at least once a week 55%... kept it more than a year
storyboard
A blueprint that combines copy and visual material to show the sequence of major scenes in a commercial
Promotion Mix
A combination of promotional methods used to promote a specific product
dealer loader
A gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise
merchandise allowance
A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display
free merchandise
A manufacturer's reward given to resellers that purchase a stated quantity of products
scan-back allowance
A manufacturer's reward to retailers based on the number of pieces scanned
feature article
A manuscript of up to 3,000 words prepared for a specific publication
press conference
A meeting used to announce major news events
brand (lower case b)
A name, term, design, symbol, or other feature that identifies the product as distinct from those of other marketers.
publicity
A news story type of communication about an organization and/or its products transmitted through a mass medium at no charge -Communication about the organization and/or its products transmitted through mass media at no charge. News release Feature article Captioned photograph Press conference
consumer jury
A panel of a product's existing or potential buyers who pretest ads
Source
A person, group, or organization with a meaning it tries to share with a receiver or an audience
captioned photograph
A photograph with a brief description of its contents
Media plan
A plan that specifies the media vehicles to be used and the schedule for running advertisements
unaided recall test
A posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues
recognition test
A posttest in which respondents are shown the actual ad and are asked if they recognize it
aided recall test
A posttest that asks respondents to identify recent ads and provides clues to jog their memories
consumer sweepstakes
A sales promotion in which entrants submit their names for inclusion in a drawing for prizes
sales contest
A sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements
Brand (uppercase "B")
A set of mental associations held by a consumer, which add to the perceived value of the product (Kevin Keller)
Communication
A sharing of meaning through the transmission of information
news release
A short piece of copy publicizing an event or a product
viral marketing
A strategy to get consumers to share a marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly
buy-back allowance
A sum of money given to a reseller for each unit bought after an initial promotion deal is over
buying allowance
A temporary price reduction to resellers for purchasing specified quantities of a product
Social network
A website where users can create a profile and interact with other users, post information, and engage in other forms of web-based communication
Key Characteristics of Online media
Addressability Interactivity Accessibility Connectivity Control
Dealer listings
Advertisements that promote a product and identify the names of participating retailers that sell the product
which Ad pulled best?
Advertising research to investigate ad effectiveness -2 ads run in magazines or on TV -Which is more effective and why? --Recall (remember) --Persuasion (interest increased) --Liking (ad itself) Watch for generalizations of good/bad techniques
advocacy advertising
Advertising that promotes a company's position on a public issue
Institutional advertising
Advertising that promotes organizational images, ideas, and political issues
product advertising
Advertising that promotes the uses, features, and benefits of products
Pioneer advertising
Advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product -used in introductory stage
_______ offers the potential benefits of cost efficiency, repetition, and adding product value, while _____ is one of its disadvantages.
Advertising; Slow feedback
Sales promotion
An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it -Induces purchase, trial, patronage
artwork
An advertisement's illustrations and layout
animatic
An animated storyboard
Cooperative advertising
An arrangement in which a manufacturer agrees to pay a certain amount of a retailer's media costs for advertising the manufacturer's products
buzz marketing and guerilla tactics
An attempt to incite publicity and public excitement surrounding a product through a creative event -Attempts to incite publicity and public excitement surrounding a product though a creative event and get people talking about it
Overcoming objections
Anticipate and counter Think on your feet
Online fraud
Any attempt to conduct fraudulent activities online, including deceiving consumers into releasing personal information
Noise
Anything that reduces a communication's clarity and accuracy
Reinforcement Advertising
Assures current users that they have made the right choice or shows how to get the most satisfaction from the brand
Making the presentation
Attract and hold attention Stimulate interest and desire Enthusiasm!
Podcasts
Audio or video file that can be downloaded from the Internet with a subscription that automatically delivers new content to listening devices or personal computers; podcasts offer the benefit of convenience, giving users the ability to listen to or view content when and where they choose
advertising platform
Basic issues or selling points to be included in an advertising campaign -selling point must be important to the customer
preapproach
Before contacting prospects: -Identify key decision makers -Review accounts -Identify product needs -Prepare sales presentations --Know your own products! --Strengthsquest at TAMU which involves identifying key decision makers, reviewing account histories and problems, contacting other clients for information, assessing credit histories and problems, preparing sales presentations, identifying product needs, and obtaining relevant literature.
guest speakers Krista smith, Michael green
Brand Look of brand Feel of brand
Branding as Storytelling Video
Branding is?? -like life -is story telling - what people think company is about
arbitrary approach
Budgeting for an advertising campaign as specified by a high-level executive in the firm
objective-and-task approach
Budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them
percent-of-sales approach
Budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage
Proxemic communication
Communicating by varying the physical distance in face-to-face interactions
Kinesic communication
Communicating through the movement of head, eyes, arms, hands, legs, or torso
tactile communication
Communicating through touching -handshaking most common form
public relations
Communication efforts used to create and maintain favorable relations between an organization and its stakeholders
Public relations
Communication efforts used to create and maintain favorable relations between an organization and its stakeholders.
Promotion
Communication to build and maintain relationships by informing and persuading one or more audiences -General term encompassing all communications AKA "marketing communications" Not the same as sales promotion
creating the advertising message
Considerations: -Product's features, uses and benefits -Target audience characteristics. -Campaign objectives -Advertising platform -Choice of media -Regional issues Must tie to Creative Brief!
Coding Process
Converting meaning into a series of signs or symbols
decoding process
Converting signs or symbols into concepts and ideas
Integrated marketing communications
Coordination of promotion and other marketing efforts for maximum informational and persuasive impact on customers
Primary demand
Demand for a product category rather than for a specific brand
Selective demand
Demand for a specific brand - marketer employs promotional efforts that point out the strengths and benefits of a specific brand. -can also be stimulated by increasing the number of product uses and promoting them through advertising campaigns, as well as through price discounts, free samples, coupons, consumer contests and games, and sweepstakes
competition-matching approach
Determining an advertising budget by trying to match competitors' advertising outlays
Prospecting
Developing a database of potential customers -Advertising can generate leads -Referrals are a key source -Prospecting is not selling! -Companies often engage in prospecting at trade shows, which allow representatives to demonstrate the latest company products and collect information on consumers who might be interested in the firm's offerings
recruiting
Developing a list of qualified applicants for sales positions
Which of the following is the best example of a well-stated sales objective?
Each salesperson should bring in $25,000 in new sales by November 15.
Digital Media
Electronic media that function using digital codes; when we refer to digital media, we are referring to media available via computers, cellular phones, smartphones, and other digital devices that have been released in recent years
pretest
Evaluation of advertisements performed before a campaign begins
Posttest
Evaluation of advertising effectiveness after the campaign Recognition Unaided Recall Aided Recall
The Creative Brief
Expanded Advertising Platform -Actual document of who, what, when, where, why -"Contract" -Not a brand brief -Guides campaign development
Premium money (push money)
Extra compensation to salespeople for pushing a line of goods
Comparative Advertising
Form of competitive advertising that compares 2 or more brands directly
Benefits of social media marketing
Increased exposure increased traffic developed loyal fans provided marketplace insight generated leads improved search rankings grown business partnerships reduced marketing expenses improved sales
who develops the advertising campaign?
Internal to the Firm In smaller firms--individuals In larger firms there maybe an advertising group. External to the firm Advertising agencies
Premiums
Items offered free or at a minimal cost as a bonus for purchasing a product
Identifying prospects
Locating and identifying customers who are interested in the firm's products and will most likely buy. Techniques Include: -Direct-response forms, customer information blanks -Contests and activities -Recommendations
Trade sales promotion methods
Methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively -Attempt to persuade wholesalers and retailers to carry a producer's products and market them more aggressively. -Trade allowances --Rewards, money, or price reductions to encourage resellers to carry a product. -Cooperative advertising and dealer listings --Manufacturer helps pay retailer's costs for advertising the product -Free merchandise and gifts Sales contests
Reducing Sales Fluctuations
Minimize seasonal variations in: -Sales -Production -Inventory levels -Personnel needs -Financial resources
Managing the sales force
Motivate Manage Territories Create Route/Schedule Control/Evaluate Establish Objectives Determine Size Recruit/Select Train Compensate
Define the Advertising Objectives
Objectives guide campaign development. Objectives should: -Be stated clearly -Be precise and measurable -Specify a target audience Have a benchmark Specify a time period JCPenney Example: Increase number of visits of current female shoppers age 25-44 from 4 times per year to 6 times per year within 12 months
advertising
Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media
Personal selling
Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation -Nature -Greatest freedom to adjust message -Large employment industry -Varies from firm to firm
combination compensation plan
Paying salespeople a fixed salary plus a commission based on sales volume -advantages: Provides certain level of financial security; provides some incentive; can move sales force efforts in profitable direction -disadvantages: Selling expenses less predictable; may be difficult to administer
straight salary compensation plan
Paying salespeople a specific amount per time period, regardless of selling effort -advantages: Gives salespeople security; gives sales managers control over salespeople; easy to administer; yields more predictable selling expenses -disadvantages: Provides no incentive; necessitates closer supervision of salespeople; during sales declines, selling expenses remain constant
straight commission compensation plan
Paying salespeople according to the amount of their sales in a given time period -advantages: Provides maximum amount of incentive; by increasing commission rate, sales managers can encourage salespeople to sell certain items; selling expenses relate directly to sales resources -disadvantages: Salespeople have little financial security; sales managers have minimum control over sales force; may cause salespeople to give inadequate service to smaller accounts; selling costs less predictable
Illustrations
Photos, drawings, graphs, charts, and tables used to spark audience interest in an advertisement
When Blue-ray disc players were first introduced to the market, what would the logical choice for promotion have been?
Pioneer Promotion
Dealing with unfavorable PR
Prevent Negative Incidents Establish Policies & Procedures Expedite Coverage Be Forthright Take Prompt Action
You are the marketing manager for a company that makes and markets designer sunglasses. Recently, your boss suggested to you that the company should try to get its sunglasses worn by more actors and actresses in movies. He asked you to look into what it would take to make that happen. Which of following promotion activities is your boss referring to with this idea?
Product Placement
pull policy
Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel
push policy
Promoting a product only to the next institution down the marketing channel -normally stresses personal selling
Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization more positively and to accept its product is the role of
Promotion
Pioneer Promotion
Promotion that informs consumers about a new product -no competing brands
cents-off offers
Promotions that allow buyers to pay less than the regular price to encourage purchase
Scenario 18.1 Use the following to answer the questions. Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by adding new customers. Sean's current compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His salary last year totaled $42,000. Management has given Sean the choice of going to a compensation plan where he will earn 15% of all sales, but no draw. Refer to Scenario 18.1. Sean is developing his list of potential new retail customers by accessing the yellow pages online. Here he finds the contact information for every motorcycle store in the 48 contiguous states, and eliminates those who currently are his customers. Sean is involved in which step of the personal selling process?
Prospecting
Developing the Media Plan
Reach -Number or % of the target audience exposed to a particular advertisement in a stated period Frequency -Number of times the target audience is exposed to the advertisement
Reminder Advertising
Reminds customers of an established brand's characteristics and benefits
Execute the campaign
Requires extensive planning and coordination. There is a diverse group involved Requires detailed schedule for the various phases to ensure completion.
Common mobile marketing tools
SMS messages: SMS messages are text messages of 160 words or less. SMS messages have been an effective way to send coupons to prospective customers.Footnote Multimedia messages: Multimedia messaging takes SMS messaging a step further by allowing companies to send video, audio, photos, and other types of media over mobile devices. It is estimated that 98 percent of SMS and MMS messages are viewed, making this an effective way of getting consumers' attention.Footnote Mobile advertisements: Mobile advertisements are visual advertisements that appear on mobile devices. Companies might choose to advertise through search engines, websites, or even games accessed on mobile devices. Marketers spend approximately $3 billion on mobile advertising.Footnote Mobile websites: Mobile websites are websites designed for mobile devices. Approximately 28 percent of Web traffic comes from mobile devices.Footnote Location-based networks: Location-based networks are built for mobile devices. One of the most popular location-based networks is Foursquare, which lets users check in and share their location with others. Foursquare partnered with Visa and MasterCard to offer discounts at participating retailers, including Dunkin' Donuts and Burger King.Footnote
Albott Laboratories offers ceramic coffee mugs to its physician customers when it promotes a new drug. This example illustrates Albott's use of which one of the following elements of the promotion mix?
Sales promotion
Hunt's decided to put a much larger share of its promotion budget into ____ because of the heavy reliance it will be placing on coupons in the second quarter.
Sales promotion
Demonstrations
Sales promotion methods a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works
consumer contests
Sales promotion methods in which individuals compete for prizes based on their analytical or creative skills
rebates
Sales promotion techniques in which a consumer receives a specified amount of money for making a single product purchase
Consumer sales promotion methods
Sales promotion techniques that encourage consumers to patronize specific stores or try particular products
money refunds
Sales promotion techniques that offer consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases
support personnel
Sales staff members who facilitate selling but usually are not involved solely with making sales
Trade salespeople
Salespeople involved mainly in helping a producer's customers promote a product
order takers
Salespeople who primarily seek repeat sales
order getters
Salespeople who sell to new customers and increase sales to current customers
free samples
Samples of a product given out to encourage trial and purchase
point-of-purchase (POP) materials
Signs, window displays, display racks, and similar devices used to attract customers
Mobile applications
Software programs that run on mobile devices and give users access to certain content
Video Case 10.1 Zappos Drives Sales through Relationship Building on Social Media
Steven hill= VP -Zappos focuses on building customer relationships through human interaction and emphasizes comments related to service and fun -Zappos does not maintain a specific strategy for marketing on social media, nor do they have a policy for responding to customers -marketing is guided by the company's core values, including creating "WOW" customer experiences and a culture characterized by fun and a little weirdness. -Rob Siefker, Director of the Customer Loyalty Team, emphasizes the importance of using Twitter -They want to forge a real connection with customers and describe themselves as a human company, requiring strong interactions between customers and the organization. -rapid growth through their use of values -large company with a small business feel, presence on social media and the way they cross-promote their activities across platforms. -Zappos also generates interest by encouraging customers to share promotions and purchases with friends. -Another tactic they use on Facebook is to ask people to like their page. It reads, "Let's be in a Like-Like relationship." -Fan of the Week Contest," where people are encouraged to take and post photos of themselves with Zappos products - Marketing for Zappos is an authentic and human activity that is not about selling products but building relationships
Technical salespeople
Support salespeople who give technical assistance to a firm's current customers
Missionary salespeople
Support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers
Encouraging Product Trial
Techniques: -Free samples -Coupons -Test drives -Limited free-use offers -Contests -Games Inform and Persuade Key to stimulating product adoption process Especially important for new products
Connectivity
The ability for consumers to be connected with marketers along with other consumers
Accessibility
The ability for marketers to obtain digital information
Interactivity
The ability of customers to express their needs and wants directly to the firm in response to its marketing communications
Addressability
The ability of the marketer to identify customers before they make a purchase
advertising appropriation
The advertising budget for a specific time period -Objective-and-Task -Percent-of-Sales -Competition-Matching -Arbitrary or Judgment
relationship selling
The building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time -Studies show that firms spend six times longer on finding new customers than in keeping current customers.
advertising campaign
The creation and execution of a series of advertisements to communicate with a particular target audience
Control
The customer's ability to regulate the information they view as well as the rate and exposure to that information
target audience
The group of people at whom advertisements are aimed
Receiver
The individual, group, or organization that decodes a coded message -Audience: two or more receivers
Channel Capacity
The limit on the volume of information a communication channel can handle effectively
approach
The manner in which a salesperson contacts a potential customer -First impressions -Referral --Current customers -Cold Canvassing -Creative Resumes
Communications Channel
The medium of transmission that carries the coded message from the source to the receiver
layout
The physical arrangement of an advertisement's illustration and copy -Illustrations, photos, drawings, graphs, charts, and tables can be used to spark audience interest in an advertisement
feedback
The receiver's response to a decoded message
Closing
The stage in the personal selling process when the salesperson asks the prospect to buy the product -Ask them to buy Closing Tactics Trial close
product placement
The strategic location of products or product promotions within entertainment media content to reach the product's target market
electronic marketing (e-marketing)
The strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing - most important benefits of e-marketing is the ability of marketers and customers to share information.
Team selling
The use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process -becoming popular, especially in companies where the selling process is complex and requires a variety of specialized skills.
copy
The verbal portion of advertisements
directions for Attracting and Retaining a Top Sales Force
Training and development -On-the-job training -Online individual instruction -Seminars -On-site classroom instruction Compensation -Make sure pay mix isn't too risky (high commission, low base) for sales role -Mix base salary with commission, bonus, or both -Base bonuses/commission on reaching sales goals rather than on individual sales dollars -Maintain competitive benefits and expense reimbursement practices Work/life autonomy -Offer flexible hours -Consider telecommuting/work-at-home options Product quality and service -ensure goods and services meet customer needs -Provide the appropriate service after the sale
competitive advertising
Tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands -Promotes features, uses, advantages through indirect or direct comparisons with competitive brands
Wiki
Type of software that creates an interface that enables users to add or edit the content of some types of websites
Digital marketing
Uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers -The use of all digital media to develop communications and exchanges with customers.
regional issues
Versions of a magazine that differ across geographic regions
Blogs
Web-based journals (short for "weblogs") in which writers editorialize and interact with other Internet users
Social media
Websites and applications that enable users to create and share content or to participate in social networking
coupons
Written price reductions used to encourage consumers to buy a specific product -Advantages Brand awareness Can reward current customers Win back former customers Encourage quantity purchase Traceable to target market Disadvantages Fraud Customers redeem for products they normally buy anyway Stockouts Opportunities in technology
Sales promotion
activity or material that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or consumers. Examples include free samples, games, rebates, sweepstakes, contests, premiums, and coupons
In the ______________, signs or symbols are converted by the receiver into concepts and ideas.
decoding process
When Hamburger Helper introduced its Oven Varieties, it gave special offers to supermarkets to purchase the new product and supplemented these offers with consumer advertising. Hamburger Helper's primary objective is to
facilitate Reseller support
Victor antonio on sales excellence
how to be good at selling -understanding product -know who target audience is -do we have process or sequence -always assume doesn't have training program. -get info from customers/outside
Environmental monitoring
identifies changes in public opinion affecting an organization
public relations audit
is used to assess an organization's image among the public or to evaluate the effect of a specific public relations program
communications audit
may include a content analysis of messages, a readability study, or a readership survey.
Personal Selling
paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation. -expensive, personal selling is especially useful in high-risk business-to-business transactions requiring a large amount of investment. -Advantages --Has greater impact on consumers --Provides immediate feedback and flexibility -Limitations --Is expensive per person --Is labor intensive and time consuming
By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate
primary demand
consumer games
sales promotion methods in which individuals compete for prizes based primarily on chance
Following up
the salesperson must follow up the sale. In the follow-up stage, the salesperson determines whether the order was delivered on time and installed properly, if installation was required -Following up also aids the salesperson in creating a solid relationship with the customer
Which of the following is a reason integrated marketing communication is increasingly being accepted?
More precisely targeted promotional tools, like the Internet, are available