BA 101: Module 11 Promotion Mix: Tools, Goals, Strategy

promotion

inform/persuade customers of relative merits of the product, service, brands, or issue (motivate people to buy the product)

promotion mix

The combination of promotional tools an organization uses.

advertising

paid non personal communication about an organization and its products transmitted to a target audience through mass media

public relations

unpaid, nonpersonal communication

the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance

personal selling

in-person, face-to-face communication between a seller and a customer

sales promotion

Short-term incentives to encourage the purchase or sale of a product or service (ex: coupons, rebates, trade shows)

advertising media

communication channels, such as newspapers, radio, television, and the World Wide Web; communicate seller's message to buyers

reach

number of people an ad will reach at least once within a given population; the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks

frequency

the average number of times a person in the target audience is exposed to a message or advertisement

continuity

the timing of ads, how often they appear, or how heavily concentrated they are within a certain time period

cost per thousand (CPM)

the cost that a particular medium charges to reach 1000 people with an ad; the cost of reaching 1,000 individuals or households with the advertising message in a given medium

media planning

the process of choosing the exact kinds of media to be used for an ad campaign (select target audience and determine the best media by which to reach them); the process of selecting advertising media and deciding the time and space in which the ads should appear

push promotional strategy

Aimed at wholesalers and retailers, to encourage them to market the product to consumers.

pull promotional strategy

Aimed directly at consumers, to get them to demand the product from retailers.

informational

straightforward knowledge about the features of a product

reminder

remind consumer about/of the existence of a product

persuasive

try to make consumers desire the product

competitive

promote the product by comparing it more favorably to rival products

direct action

stimulate immediate purchase of a product through things like one day sales, one time promotions, or announcements of special events

fear appeal

stimulate purchase of product by motivate consumer through fear of loss or harm

creative selling

(active task) personal-selling task in which salespeople try to persuade buyers to purchase products by providing information about their benefits; determine customer needs and explain product benefits in order to persuade buyers to buy the product

order processing

(passive) the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door; receive orders and make sure they are handled correctly and that the product gets delivered

sales support

facilitating the sale of a product/service by providing supportive services

prospecting

the sales step in which a salesperson or company identifies qualified potential customers (called prospects)

referral sales

(part of prospecting) Acquiring new customers who are suggested or referred to by existing customers.

endless chain sales

(part of prospecting) ask the sales prospect to provide the salesperson with names of other prospects who may be interested

cold call sales

(part of prospecting) call prospects you haven't previously contacted or had an introduction to

qualifying

In the selling process, making sure that people have a need for the product, the authority to buy and ability to pay, and the willingness to listen to a sales message.

approaching

the sales step of initial contact with the customer (in most B2C sales, like at a retail store, don't need to do much qualifying and prospecting)

presenting

in a sales presenation, cover the product features use and advantages over other products and it's price; a salesperson's effort to make a sale or address a customer's problem

canned presentation

fixed, memorized selling approach; Refers to a standard set of steps that ignores the unique needs of each customer, and is presented in the form of a repetitive speech given to all customers interested in a particular item.

need satisfaction presentation

Tailoring your presentation based on customer needs (the more preferred approach); A sales presentation format that emphasizes probing and listening by the salesperson to identify the needs and interests of prospective buyers.

handling objections

the sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying; some objections can be handled by referring the customer to others in the company

making sale

trial close and actual close

trial close

a question or statement that tests the prospect's willingness to buy

actual close

the salesperson concludes the presentation by asking the prospect to purchase the product

following up

In the final step of the selling process the salesperson must ensure:

delivery schedules are met

goods or services perform as promised

buyers' employees are properly trained to use the products; thank the customer for their order, and stay in touch to make sure they are happy with the product, solve any problems, and show that you care about the long-term relationship

B2B sales promotion

trade promotion (intended to stimulate dealer interest, devices include conventions, catalogs, special printed materials, and trade shows (gathering of manufacturers in the same industry who display their products to their distributors and dealers)) `

B2C sales promotion

varies, some more common devices are bonuses, cents-off promotions, games, lotteries (coupons and rebates, demonstrations, event marketing, free samples, contests and sweepstakes) or things like premiums, promotional tie-ins, product placement, visual merchandising

digital marketing

online marketing that can deliver content immediately to consumers through digital channels, devices, and platforms to build or promote a company's marketing message

geotracking

A mobile device routinely reports its position to Apple, Google, or Microsoft at least twice a day, which makes it possible for these companies to track your device's whereabouts; use of a consumer's geographic location to determine what goods will come up in a search and at what price

bots

electronic shopping agents or robots that comb websites to compare prices and product or service features`

mobile marketing

a set of practices that enables organizations to communicate and engage with their audiences in an interactive and relevant manner through any mobile device or network; marketing messages, promotions, and other content delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices

native advertising

Digital advertising that matches the appearance and purpose of the content in which it is embedded; contains marketers advertising message, integrated with the content and look of website