Bài giảng Understanding Business - Chapter 16 Using Effective Promotions

Using Effective PromotionsChapter 16McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.Identify the new and traditional tools that make up the promotion mix.Contrast the advantages and disadvantages of various advertising media, including the Internet and social media.Illustrate the steps of the B2B and B2C selling processes.Describe the role of the public relations department, and show how publicity fits in that role.Assess the effectiveness of various forms of sales promotion, including sampling.Show how word of mouth, e-mail marketing, viral marketing, blogging, podcasting, and mobile marketing work. LEARNING GOALSChapter Sixteen16-2Promotion and the Promotion MixPromotion Mix -- The combination of promotional tools an organization uses. The traditional mix includes:PROMOTION in an ORGANIZATIONLG116-3Integrated Marketing Communication (IMC) -- Combines the promotional tools into one comprehensive strategy. IMC is used to:Create a positive brand image.Meet the needs of consumers.Meet the strategic marketing and promotional goals of the firm.INTEGRATED MARKETING COMMUNICATION (IMC)LG1Promotion and the Promotion Mix16-4Amy Scherber of Amy’s Bread can’t afford to outsource her promotions, so she needs to get creative.She sends newspaper editors stories about her company and has an assortment of company shirts.She builds strong word-of-mouth by keeping in touch with her community members.FRESH-BAKED PROMOTIONSpotlight on Small Business16-5Identify a target marketDefine objectivesDetermine a promotional budgetDevelop a unifying messageImplement the planEvaluate effectivenessSTEPS in a PROMOTIONAL CAMPAIGNLG1Promotion and the Promotion Mix16-6Advertising: Informing, Persuading and Reminding Advertising -- Paid, non-personal communication through various media by organizations and individuals who are in some way indentified in the message.Major goals of advertising:InformPersuadeRemindADVERTISING in the FIRMLG216-7Total advertising expenditures exceed $241 billion yearly.Consumers benefit because production costs of TV programs, radio programs, newspapers and magazines are paid for by advertisers.Marketers choose ad media that will reach the target market.IMPACT of ADVERTISINGLG2Advertising: Informing, Persuading and Reminding 16-8Social media advertising is growing so fast, marketers can’t keep up.Starbucks has over 12 million followers on Twitter.McDonald’s has over 7 million fans on Facebook.SOCIAL ADVERTISINGLG2Advertising: Informing, Persuading and Reminding 16-9cMAJOR CATEGORIES of ADVERTISINGCategoryWhat it isRetailFrom retail stores to consumersTradeFrom manufacturers to wholesalers and retailersB2BFrom manufacturers to other manufacturersInstitutionalCreates a desirable image for an organizationProductCreates a desirable image for a product or serviceLG2Advertising: Informing, Persuading and Reminding 16-10MAJOR CATEGORIES of ADVERTISING(Continued)CategoryWhat it isAdvocacy Supports a particular view of an issueComparativeCompares competing productsInteractiveCustomer-oriented ads that allows customers to choose information to receiveOnlineComputer ads featured on different sitesMobileAds that reach consumers on cell phonesLG2Advertising: Informing, Persuading and Reminding 16-11Plan: What should your mailing accomplish?Get the Right List: The better the list, the better your chance of success.DEAR MR. POSTMANSteps in Launching a Direct-Mail CampaignStand Out: Make your ad like no other.Get Help: Contact a marketing firm with direct mail experience.Follow Up: One mailing is not enough.LG1Promotion and the Promotion Mix16-12Television Advertising TV advertising is still the dominant media.Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip ads.POPULAR ADVERTISING MEDIALG2Product Placement -- Advertisers pay to put their products into TV shows and movies where the audience will see them.16-13Infomercials and Online Advertising Infomercial -- A full length TV program devoted exclusively to promote a particular product.Online ads are attempts to get potential customers to a web site to learn about a product.Interactive Promotion -- Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange.INFOMERCIALS and ONLINE ADVERTISINGLG216-14Brand messaging is key.Site must be easy to navigate.Make sure calls to action are effective.Users want fast, readable sites.Users with disabilities should be able to navigate.ONLINE EXPERIENCEHow to Avoid Losing Customers Over a Bad Web SiteSource: Entrepreneur, October 2010.LG2Infomercials and Online Advertising 16-15Be wary of requests for money transfers -- even from friends’ accounts.Be wary when you use applications. Don’t give unnecessary information.Use URL expanders to see the full address of links on friends’ pages.SOCIAL SCAMMERSHow to Protect Yourself From SchemersSource: Kiplinger’s Personal Finance, December 2010.Photo Courtesy of: Paul Klintworth16-16Using Social Media to Monitor Ad EffectivenessDr. Pepper posts messages on Facebook and monitors the results from their over 8.5 million fans.Richard Branson and Tony Hsieh all tweet their customer base to maintain two-way communication.MONITORING AD EFFECTIVENESSLG2Photo Courtesy of: Brent Moore16-17Create a strong persona.Have customers play along through Twitter and Facebook.Engage bloggers.Personalize the experience.Keep your videos short and sweet!SOCIALLY SUPERIOR Lessons From the Wisdom of the Old Spice ManSource: Entrepreneur, September 2010.Using Social Media to Monitor Ad EffectivenessLG2Photo Courtesy of: Dirk Houbrechts16-18Global AdvertisingRequires marketers to develop a single product and promotional strategy to implement worldwide.Problems can arise in global markets with using one advertising campaign in all countries - especially bad translations.GLOBAL ADVERTISINGLG216-19India's 700 million rural consumers are spending more than ever. International brands are sending salesmen to reach these customers by giving free Castrol oil changes for tractors, passing out bowls of Nestlé noodles, and selling Unilever soaps.These salesmen must be aware of social customs to be successful. PROMOTION in RURAL INDIA(Reaching Beyond Our Borders)16-20Personal Selling: Providing Personal AttentionPersonal Selling -- The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow-up service.PERSONAL SELLINGSalespeople need to listen to customer needs, help reach a solution and do everything possible to make the transaction as simple as possible.LG316-21STEPS in the B2C SELLING PROCESSLG3The Business-to-Consumer Sales Process16-22Steps in the Selling Process Prospecting -- Researching potential buyers and choosing those most likely to buy.PROSPECTING and QUALIFYING in SELLINGQualifying -- Making sure customers have a need for a product, the authority to buy and the willingness to listen to a sales message.Prospect -- A customer who meets the qualifying criteria. LG316-23Know your competitionUnderstand your customer’s businessDifferentiate your product or serviceSell to the people most likely to buyBuild relationshipsPut the right people in the right selling spotsBUY THIS!Successful Selling StrategiesLG3Steps in the Selling Process 16-24Not feeling the customer’s painMaking money is the only goalSeeing sales as just a jobGetting upset during the presentationFailing to properly prepare or over-preparing Not being yourselfNeglecting the relationshipWHOOPS!Sales Slip-UpsSource: Fortune Magazine.LG3Steps in the Selling Process 16-25Public Relations: Building RelationshipsPublic Relations (PR) -- Evaluates public attitudes, changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance.3 steps of a good PR program:Listen to the publicChange policies and proceduresInform people you’re responsive to their needsUSING PUBLIC RELATIONS in PROMOTIONLG416-26Publicity: The Talking Arm of PRPublicity -- Any information about an individual, product or organization that’s distributed to the public through the media and is not paid for or controlled by the seller.Advantages of Publicity:FreeReaches people who would not look at an advertisementMore believable than advertisingPUBLICITYLG416-27No control over whether the media will use a story or when they may release it.It can be good or bad.Once a story has been run, it isn’t likely to run again.DISADVANTAGES of PUBLICITYLG4Publicity: The Talking Arm of PR16-28Sales Promotion -- The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.SALES PROMOTIONSSales Promotion: Giving Buyers IncentivesCategories of Sales Promotions:B2B Sales PromotionsConsumer Sales PromotionsLG516-29CouponsDemonstrationsSamplingSweepstakesIn-store DisplaysContestsSOME KEY CONSUMER PROMOTIONSLG5Sales Promotion: Giving Buyers Incentives16-30Coupons, IncEverSaveRetailMeNotCouponCabinCLIP THESEMost Visited U.S. Coupon Clearing SitesLG5Sales Promotion: Giving Buyers Incentives16-31Word of Mouth and Other Promotional ToolsWord-of-Mouth Promotion -- People tell others about products they have purchased.Word-of-Mouth is important for products like:RestaurantsDaycare and EldercareCar Repair ShopsHair StylistsHotelsUSING WORD-of-MOUTH PROMOTIONLG616-32Viral MarketingViral Marketing -- Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions.People who promote through viral marketing often receive SWAG which can include free tickets, shirts, and other merchandise.EMERGING PROMOTIONAL TOOLSLG616-33Blogging, Podcasting and E-mail PromotionsBlog -- Short for web log; an online diary that looks like a webpage, but is easier to create and update by posting text, photos, videos, or links.Podcasting -- A way to distribute audio and video programs via the Internet.Email promotions increase brand awareness among commercial suppliers.Mobile Media -- Marketers make use of cell phones to text customers about product offers and other company information Trends in Promotional Strategies LG616-34Promotional StrategiesPush Strategy -- Producers use advertising, personal selling, sales promotion, and other tools to get their products stocked on shelves.Pull Strategy -- Directs heavy advertising and sales promotions efforts towards consumers and gets the public to request their products from retailers.Pick Economy -- Refers to consumers who pick out their products from online outlets.PUSH, PULL, AND PICK PROMOTIONAL STRATEGIESLG616-35