Buying & Merchandising Performance Indicators

role of promotion as a marketing function

the communication process used to inform, persuade, or remind customers about business’s products or services (the “voice” of the company)

• brand awareness

• competitive advantage

types of promotion

• product promotion - convincing customers to buy a specific good/service

• institutional promotion - creating a favorable image for the business itself

elements of promotional mix

the combination of strategies used to reach a target market: advertising, personal selling, sales promotion, public relations, and direct marketing

promotional mix: personal selling

direct person to person communication between a salesperson and a potential buyer to build relationships and understand needs

promotional mix: sales promotion

using short term incentives like coupons, discounts, samples, or contests to drive immediate sales

promotional mix: direct marketing

where businesses communicate promotional messages directly to specific, targeted individuals

nature of direct marketing channels

selling directly to the public without retailers/wholesalers, or communicating directly with a specific customer segment to provoke a response
- ex: telemarketing

communication channels used in public relations

methods used to build a positive relationship with the public and stakeholders - often “earned” media rather than “paid”

• press releases, sponsorships, community relations

word of mouth channels used to communicate with targeted audiences

communication between consumers about a product
- businesses may use things such as a refer-a-friend discount

nature and scope of the selling function

selling is the personalized communication that influences purchase decisions (need is matched with a product)

• nature: customer centric, goal oriented dynamic that focuses on satisfying a customers needs (product)

• scope: the broad range of activities (market research, product development, pricing, promotion, and distribution) that achieve these goals creating value for both consumers and businesses

role of customer service as a component of selling relations

the support provided before, during, and after a purchase

• customer lifetime value, retention, loyalty

key factors in building clientele

involves consistent effort to maintain a loyal customer base who returns specifically for your service/product (going beyond just the sale)

the use of technology in the selling function

leveraging digital tools to streamline sales, manage relationships, and enhance the customer experience

• ex: ai chatbots, virtual try ons, mobile payment

use of information for use in selling

gathering data about products, industry trends, and customer demographics to make informed sales presentations

• product knowledge, marketing research

analyze product information to identify product features and benefits

translating “what a product is” into “what it does for the customer” - features into benefits (the “whats in it for me”)

motivational theories that impact buying behavior

understanding the psychological reasons people buy things

• maslow’s hierarchy of needs: physiological, safety, love/belonging, esteem, self-actualization

• rational vs. emotional motives

maslow’s hierarchy of needs

• physiological - food, water, shelter, clothing

• safety - security, employment, health

• love and belonging - friends, family, connection

• esteem - respect, self esteem, status, recognition, freedom

• self-actualization - desire to become the most that one can be