Chpt 9 and Chpt 10 Product Chpt 11 Place Chpt 14, Chpt 15, Chpt 16 Promotion Chpt 17, Chpt 18 Price.

Chpt 9 and Chpt 10

Product

Chpt 11

Place

Chpt 14, Chpt 15, Chpt 16

Promotion

Chpt 17, Chpt 18

Price

Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Slide 2Chapter 14

• Promotion

• Personal Selling

• Mass Selling

• Advertising

• Publicity

• Sales Promotion


Slide 3Chapter 14

Promotion

• communication of information

• influence the buyer

3 methods

Personal Selling

Mass Selling

Sales Promotion


Slide 4Chapter 14

Personal Selling

• direct communication between seller and buyer

• face2face contact

•Usually used to sell industrial goods and services

•Also used to sell some expensive consumer items, eg. Cars, computer systems


Slide 5Chapter 14

Mass Selling

• communicating with large numbers of potential customers

• “non”-personal selling

• used when the target market is large and dispersed

•Advertising is a form of Mass Selling


Slide 6Chapter 14

Advertising

• the main form of mass selling

• any paid form of nonpersonal communication eg. Techniques include billboard ads and TV commercials


Slide 7Chapter 14

The The generation of awarenessgeneration of awareness about a product about a product beyond regular advertising methods.beyond regular advertising methods.

Usually less costly than advertising because Usually less costly than advertising because sometimes the message is spread for free by sometimes the message is spread for free by a newspaper article or TV story.a newspaper article or TV story.

Page 453

PublicityPublicity


Slide 8Chapter 14

Examples of Publicity

• famous person photographed using your product

• your product mentioned in National News in a positive way

• your product featured in a movie

• TV commentary about aspects of your product trade magazines carrying a storyeg. Road and Track doing a feature on the new Landrover

Publicity


Slide 9Chapter 14

Publicity can be negative

eg. If a famous movie star gets electrocuted using your product, this can cause people to NOT want to buy it - this would be a major problems

eg. If your product is sabotaged - this could include tampering with medical products ie. Tylenol

eg. If there are negative rumours about the ingredients in your product

eg. If there are negative ingredients about the moral aspects of your company

Publicity


Slide 10Chapter 14

Promotion PeoplePromotion People

• Sales ManagersSales Managers

• Advertising ManagersAdvertising Managers

• Sales Promotion ManagersSales Promotion Managers

•Page 369


Slide 11Chapter 14


Sales ManagersSales Managers

• Are concerned with managing Are concerned with managing personal sellingpersonal selling

• In small companies this person also In small companies this person also does the advertising and sales does the advertising and sales promotionpromotion

•Page 369


Slide 12Chapter 14

Promotion PeoplePromotion PeopleAdvertising ManagersAdvertising Managers

• They manage the mass selling activitiesThey manage the mass selling activities

• They chose the company to make the They chose the company to make the commercialscommercials

• Pick the billboard signs etc.Pick the billboard signs etc.

• If the company is big enough they hire an If the company is big enough they hire an outside agencyoutside agency

• They may also do publicity as wellThey may also do publicity as well•Page 369


Slide 13Chapter 14


Sales Promotion ManagersSales Promotion Managers

• They manage the Sales Promotion They manage the Sales Promotion activitiesactivities

• They decide about in-store coupons, They decide about in-store coupons, prizes, contests etc.prizes, contests etc.

• They spend a lot of time visiting the retail They spend a lot of time visiting the retail outlets where the product is soldoutlets where the product is sold

•Page 369


Slide 14Chapter 14

Sales Promotion Managers

- they deal with Point-of-purchase advertisingspecialty advertisingsamplescouponspremiumsloyalty points / air milesrebatescontests

People in Sales Promotion

Page 455


Slide 15Chapter 14

Sales Promotion includes:Sales Promotion includes:

• Point-of-purchase advertisingPoint-of-purchase advertising

• specialty advertisingspecialty advertising

• samplessamples

• couponscoupons

• premiumspremiums

• loyalty points / air milesloyalty points / air miles

• rebatesrebates

• contestscontests


Slide 16Chapter 14


Slide 17Chapter 14

Relationship between Advertising and the Product Life Cycle

Not mentioned in your textbook


Slide 18Chapter 14

Informing

• people have to know about it, in order to buy it

Advertising that seeks to develop demand through presenting factual information on the attributes of a product or service.

Tends to be used in promoting NEW products.

Use in the Introductory Stage of PLC

Page 458 - 459


Slide 19Chapter 14

PersuadingPersuading

• when competition offers similar product, you have to “persuade” them to try yours

Advertising that emphasizes using words and/or images to try to create an image for a product and to influence attitudes about it.

Used by Coke and Pepsi re: lifestyle ads.

Used after the Introductory Stage of the PLC

Page 458 - 459


Slide 20Chapter 14

RemindingReminding

• when new competition comes along, you have to “remind” customers of your greater experience, advantages etc.

Advertising whose goal is to reinforce previous promotional activity by keeping the product’s or service’s name in front of the public.

Used in the Maturity Period and the Decline Stage of the PLC. Page 458 -

459

Also Discussed in Chpt 16, page 520


Slide 21Chapter 14

•Page 372


Slide 22Chapter 14

Effective CommunicationEffective Communication

NoiseNoise

• distractions that reduce the distractions that reduce the effectiveness of the communicationeffectiveness of the communication

• things which make an ad, useless things which make an ad, useless because people don’t get the because people don’t get the message clearlymessage clearly

• eg. Competition from similar adseg. Competition from similar ads

Page 460


Slide 23Chapter 14


EncodingEncoding

• means to make a codemeans to make a code

• the process of making your the process of making your message, and hoping you do it so it message, and hoping you do it so it will be understoodwill be understood

Page 373


Slide 24Chapter 14


DecodingDecoding

• means to break a code into means to break a code into language you can understandlanguage you can understand

• the process of the customer the process of the customer listening to a message, and being listening to a message, and being able to correctly figure out what the able to correctly figure out what the advertiser wants you to know, or doadvertiser wants you to know, or do

Page 373


Slide 25Chapter 14

• Pushing through the promotion channelPushing through the promotion channel

ProducerProducer - - personal selling 2 wholesaler retailer personal selling 2 wholesaler retailer customercustomer

Promotion techniques usedPromotion techniques used

• run ads in trade magazines to make wholesalers aware of the run ads in trade magazines to make wholesalers aware of the productproduct

• provide incentives to retailers to carry the item provide incentives to retailers to carry the item “… free case of drinks “… free case of drinks with each 2 cases it buys…” page 466with each 2 cases it buys…” page 466

• run contests for salespeople to win prizes for selling the run contests for salespeople to win prizes for selling the productproduct

•Page 379


Slide 26Chapter 14

Potential Mail RecipientsPotential Mail Recipients

Once your name is on a list for a newspaper Once your name is on a list for a newspaper subscription, your name and address can subscription, your name and address can be “sold” to another company who will mail be “sold” to another company who will mail you information to try and convince you to you information to try and convince you to buy their product.buy their product.

Buying and selling lists (databases) of such Buying and selling lists (databases) of such names is big business.names is big business.


Slide 27Chapter 14

Comparison of Direct Marketing and General AdvertisingComparison of Direct Marketing and General Advertising

Direct MarketingDirect Marketing General AdvertisingGeneral Advertising

Selling to individuals. Customers areSelling to individuals. Customers are Mass selling. Buyers identified as broadMass selling. Buyers identified as broadoften identifiable by name, address, andoften identifiable by name, address, and groups sharing common demographic andgroups sharing common demographic andpurchase behaviour.purchase behaviour. psychographic characteristics.psychographic characteristics.

Products have added value or service.Products have added value or service. Product benefits do not always includeProduct benefits do not always includeDistribution is important product benefit.Distribution is important product benefit. convenient distribution channels.convenient distribution channels.

The medium is the marketplace.The medium is the marketplace. Retail outlet is the marketplace.Retail outlet is the marketplace.

Marketer controls product until delivery.Marketer controls product until delivery. Marketer may lose control as productMarketer may lose control as productenters distribution channel.enters distribution channel.

Advertising used to motivate anAdvertising used to motivate an Advertising used for cumulative effectAdvertising used for cumulative effectimmediate order or inquiry.immediate order or inquiry. over time to build image, awareness,over time to build image, awareness,

loyalty, benefit recall. Purchase actionloyalty, benefit recall. Purchase actiondeferred.deferred.

Repetition used within ad.Repetition used within ad. Repetition used over time.Repetition used over time.

Consumers feel high perceived risk – Consumers feel high perceived risk – Consumers feel less risk – have directConsumers feel less risk – have directproduct brought unseen. Recourse isproduct brought unseen. Recourse is contact with the product and directcontact with the product and directdistant.distant. recourse.recourse.

Not in your text


Slide 28Chapter 14

• Pulling through the promotion channelPulling through the promotion channel


Promotion techniques usedPromotion techniques used

• run TV commercials so customers directly learn about the run TV commercials so customers directly learn about the product - then they go to the store and ask for it, or call around product - then they go to the store and ask for it, or call around to find out where it is soldto find out where it is sold

• give free samples to potential customersgive free samples to potential customers

•Page 380


Slide 29Chapter 14

• Pulling through the promotion channelPulling through the promotion channel


Sometimes you do “pulling” when the Middlemen Sometimes you do “pulling” when the Middlemen cannot be pushed, that is they already have a cannot be pushed, that is they already have a competitors product, so the way to get Middlemen to competitors product, so the way to get Middlemen to WANT to carry the product, is to have customers ask WANT to carry the product, is to have customers ask for it. for it.


Slide 30Chapter 14

Adoption ProcessAdoption Process

• InnovatorsInnovators

• Early Adopters Early Adopters - sales people concentrate their - sales people concentrate their efforts hereefforts here

• Early majorityEarly majority

• Late majorityLate majority

• Laggards, or nonadoptersLaggards, or nonadopters

Page 384


Slide 31Chapter 14

Setting the promotion Setting the promotion budgetbudget

Most common method is based on using Most common method is based on using past percentagespast percentages- that is to say,,,,- that is to say,,,,

If you sold $ 1,000,000 and you spent 20% If you sold $ 1,000,000 and you spent 20% on advertising, which = $200,000on advertising, which = $200,000

then,then,

if you spend $400,000 you should sell $2 if you spend $400,000 you should sell $2 million!million!


Slide 32Chapter 14

Setting the promotion Setting the promotion budgetbudget

Other methods - used in real worldOther methods - used in real world

• Matching what competition spendsMatching what competition spends

• Based on what is required to get number Based on what is required to get number of customers that will meet corporate of customers that will meet corporate objectives - objectives - called the Task Methodcalled the Task Method- sometimes stated as a % of sales- sometimes stated as a % of sales•page 388page 388

Chpt 9 and Chpt 10 Product Chpt 11 Place Chpt 14, Chpt 15, Chpt 16 Promotion Chpt 17, Chpt 18 Price.

Documents

Transcript of Chpt 9 and Chpt 10 Product Chpt 11 Place Chpt 14, Chpt 15, Chpt 16 Promotion Chpt 17, Chpt 18 Price.