Week 9- 11-29-04

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Week 9- 11-29-04

• Integrated Communication Strategy and Promotion
  Tools

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Communication
The process by which we exchange or share
meanings through a common set of symbols.
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The Communication Process
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Marketing Communications Strategy

• Lets 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?

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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

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Integrated Marketing Communications

• The Need for Integrated Marketing Communications
• Conflicting messages from different sources or
  promotional approaches can confuse company or
  brand images

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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 firms 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.

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Marketing Communications Mix

• Public Relations
• Building good relations with the companys
  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.

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Goals and Tasks of Promotion
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Goals and Tasks of Promotion

• Informative Objective
• Increase awareness
• Explain how product works
• Suggest new uses
• Build company image

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Goals and Tasks of Promotion

• Persuasion Objective
• Encourage brand switching
• Change customers perception of product
  attributes
• Influence buying decision
• Persuade customers to call

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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
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The AIDA Concept
Model that outlines the process for achieving
promotional goals in terms of stages of consumer
involvement with the message.
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AIDA and the Promotional Mix
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Product Life Cycle and thePromotional Mix
Light Advertising pre- introduction publicity
Heavy use of Advertising PR for awareness sales
promotion for trial
AD/PR decrease limited sales promotion
personal selling for distribution
Ads decrease sales promotion personal
sellingreminder persuasive
Advertising PR, brand loyalty personal
selling for distribution
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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.
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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 yearover 6 million per day!

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Advertising Strategymessage strategy

• Identify consumer benefits
• Develop compelling creative concept (The Big
  Idea)
• Appeals - meaningful credible believable
• Distinctively expressed

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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

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Selecting Advertising Media

• Decide reach, frequency and impact.
• Choose media type
• Select specific media vehicles
• Decide on media timing
• Set timing pattern of ads

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Advertising Evaluation

• Communication effects
• Sales effects
• Evaluation difficult - especially sales
• Sales vs. ad expense
• Experiments

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Sales-Promotion Objectives

• Objectives
• More short-term sales
• Build long-term share
• Stimulate trial
• Switch from competitors
• Hold loyal customers
• Increase purchase quantity

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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

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Public Relationspotential activities

• Press relations
• Public affairs
• Lobbying
• Investor relations
• Development

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Public Relationsmajor tools

• Company news
• Speeches
• Special events
• Written materials
• Audiovisual production
• Corporate identity
• Public service activities
• Company web sites

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Steps in Sales Force Management
Designing sales force strategy and structure
Recruiting and selecting salespeople
Training sales people
Compensating salespeople
Supervising salespeople
Evaluating salespeople
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Managing the Sales Forcesales-force structure

• Organize by Territory
• defines job - travel
• By Product
• expertise - overlap
• Customer or Industry
• focus - one face
• Complex structures

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Managing the Sales Forcesales 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

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Recruiting and Selecting Salespeople

• Traits of the successful vary widely
• Enthusiasm, Persistence, Initiative,
  Self-Confidence, Job Commitment.
• Selection procedures specific to companies
• Tests -personal characteristics - references -
  previous employment - interviewers views

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Training Sales People

• Training Goals
• Learn company and assimilate culture
• Technical information
• Know customers and industry competitors
• Average training period four months

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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

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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

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Motivating Salespeople

• Organizational Climate
• Opportunities
• rewards - value
• Sales Quotas
• achievable
• stretch goals
• Incentives
• sales meetings
• awards - contests

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Evaluating Salespeople

• Potential benefits of Evaluation
• Expectations clear
• Gather Information
• Helpful feedback
• Motivation
• Evaluation
• Comparison with Peers
• Comparing with past sales
• Qualitative Evaluation

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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.
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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.