16: Chapter Developing and Implementing Customer-Oriented Marketing Plans I. Promotion and the Promotion Mix a. Promotion: a.i. an effort by marketers to inform and remind people in the target market about products and to persuade them to participate in an exchange b. tools of promotion b.i. advertising b.ii. personal selling b.iii. sale promotions b.iv. public relations b.v. all make up the promotional mix c. integrated marketing communication (IMC): c.i. combines all the promotional tools into one comprehensive, unified promotional strategy d. push strategies d.i. personal selling d.ii. sales incentives d.iii. trade promotions e. pull strategies e.i. advertising e.ii. consumer promotions e.iii. loyalty program Advertising: Fighting to keep consumer interest a. Advertising: a.i. Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the advertising message b. Propaganda: b.i. Non-personal communication that doesn't have an identified sponsor; often distributed by government in various countries c. How does public benefit from advertising? c.i. They're informative c.ii. Cover the major costs of producing newspapers and magazines d. Advantages and disadvantages of different media d.i. Newspapers d.i.1. good coverage of local markets; ads can be placed quickly; high consumer acceptance; ads can be clipped and saved d.i.2. ads compete with other feature sin paper; poor color; ads get thrown away with paper d.ii. Television d.ii.1. uses sight, sound, and motion; reaches all audiences; high attention with no competition from other material
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d.ii.2. high cost; short exposure time; takes time to prepare ads. Digital video recorders skip over ads d.iii. Radio d.iii.1. low cost; can target specific audiences; very flexible; good for local marketing d.iii.2. people may not listen to ad; depends on one sense (hearing); short exposure time; audience can't keep ad d.iv. Magazines d.iv.1. can target specific audiences; good use of color; long life of ad; ads can be clipped and saved d.iv.2. inflexible; ads often must be placed weeks before publication cost is relatively high d.v. Outdoor d.v.1. high visibility and repeat exposures; low cost; local market focus d.v.2. limited message; low selectivity of audience d.vi. Direct mail d.vi.1. best for targeting specific markets; very flexible; ad can be saved d.vi.2. high cost; consumers may reject ad as junk mail; must conform to post office regulations d.vii. Yellow pages advertising d.vii.1. great coverage of local markets; widely used by consumers; available at point of purchase d.vii.2. competition with other ads; cost may be too high for very small businesses d.viii. internet d.viii.1. inexpensive global coverage; available at any time; interactive d.viii.2. relatively low readership in the short term (but growing rapidly) e. product placement: e.i. paying to put products into TV shows and movies where they will be seen f. infomercial f.i. a full-length tv program devoted exclusively to promoting goods or services f.ii. good because they show the product in great detail g. interactive promotion: g.i. promotion process that allows marketers to go beyond a monologue where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships h. global advertising: h.i. developing a product and promotional strategy that can be implemented worldwide Personal selling: providing personal attention
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a. Personal selling: a.i. The face-to-face presentation and promotion of good sand services a.ii. also involves the search for new prospects and follow-up service after the sale a.iii. effective selling is now mostly about helping others satisfy their wants and needs a.iii.1. prospect and qualiy a.iii.1.a. prosepct: research potential buyers and choose those most likely to buy a.iii.1.b. qualify: in the selling process, make sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message a.iii.2. pre-approach a.iii.2.a. do further research before making a sales call-- learn as much as possible about customers and their wants/neds a.iii.2.b. **gathering information is critical a.iii.3. approach a.iii.3.a. only one chance to make a good first impression a.iii.4. make presentation a.iii.4.a. match the benefits of your value package to the client's needs a.iii.4.b. tailor your presentatoin accordingly a.iii.4.c. use testimonials to show potential buyers that they are joining leaders in other firms in trying this new product a.iii.5. respond to objections a.iii.5.a. anticipate any objecttiosn the prospect may raise and determine proper responses a.iii.6. make sale a.iii.6.a. trial close: a qustoin or statement that moves the selling process toward the actual close. Example: "Do you want to pay for that with your credit card?" a.iii.7. follow up a.iii.7.a. selling process isn't over until the order is approved and the customer is happy a.iii.7.b. sales relationship may for continue years the business-to-consumer (B2C) sales process a. both B2B and B2C require knowing the product first, but in B2C sales the salesperson doesn't have to do much prospecting or qualifying. b. B2C salespeople also don't need to go through a preapproach step c. First formal step in B2C sales is approach d. Just like B2B, important to make a trial cloe e. Whole process: e.i. Approach e.ii. Ask questions e.iii. Make presentation
e.iv. Close sale e.v. Follow up f. Business to business (B2B) versus business to consumer (B2C)
Market Structure Business to Business Relatively few potential customers Larger purchases Geographically concentrated technical, complex products Frequently require customization Frequently require technical advice, delivery, and after-sale service Buyer are trained Negotiate details of most purchases Follow objective standards Formal process involving specific employees Closer relationships between marketers and buyers Often buy from multiple sources Business to Consumer Any potential customers Smaller purchases Geographically dispersed
Products
Buying Procedures
Require less technical products Sometimes require customization Sometime require technical advice, delivery, and after-sale service No special training Accept standard terms for most purchases Use personal judgment Informal process involving household members Impersonal relationships between marketers and consumers Rarely buy from multiple sources
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Public Relations: Building Relationships a. Public Relations (PR): a.i. the management function that evaluate public attitudes, changes policies and procedure in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance b. 3 steps to a good public relations program b.i. Listen to the public b.ii. Change policies and procedures b.iii. Inform people that you're being responsive to their needs c. Publicity: the talking arm of PR c.i. Publicity: c.i.1. any information about an individual, product, or organization that' distributed to the public through the media and that's not paid for or controlled by the seller c.i.2. publicity works only if the media finds the material interesting or newsworthy c.ii. advantages over other promotional tools, like advertising
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c.ii.1. may reach people who wouldn't read an ad c.iii. disadvantages c.iii.1. no control over how, when, or if the media will use the story c.iii.2. there's good publicity and also bad publicity c.iii.3. once a story ha run, it's not likely to be repeated whereas ads can be repeated as much as needed sales promotion: getting a good deal a. sales promotion: the promotional tool that stimulate consumer purchasing and dealer interest by means of short-term activities b. B2B promotion techniques b.i. trade shows b.ii. portfolios for salespeople b.iii. deals (price reductions) b.iv. catalogs b.v. conventions c. Sales promotion strategies c.i. Designed to supplement personal selling, advertising, and public relations efforts by creating enthusiasm for the over-all promotional program d. Sales promotion can take place both internally and externally d.i. Often just a important to generate employee enthusiasm about a product as it is to attract potential customers d.ii. Internal sales promotion efforts include: d.ii.1. sales training d.ii.2. development of sales aids such as flip charts, portable audiovisual displays, & videotapes d.ii.3. participation in trade shows where salespeople can get leads e. techniques e.i. coupons e.ii. cents-of promotions e.iii. sampling e.iv. premiums e.v. sweepstakes e.vi. contests e.vii. bonuses (buy one, get one free) e.viii. catalogs e.ix. demonstrations e.x. special events e.xi. lotteries e.xii. in-store displays f. sampling f.i. a promotional tool in which a company lets consumers have a mall sample of a product for no charge g. word of mouth promotion:
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g.i. a promotional tool that involves people telling other people about the products they've purchased h. viral marketing: h.i. the term now used to describe everything from paying people to say positive things on the Internet to setting up multilevel selling scheme whereby consumers get commissions for directing friends to specific web sites i. blog: i.i. an online diary that looks like a web page but is easier to create and update by posting text, photos, or links to other sites j. podcasts j.i. a means of distributing audio and video programs via the internet that lets users subscribe to a number of files, also known as feeds, and then hear or view the material at the time they choose customer relationship management (CRM) a. the customer life cycle a.i. acquire, through differention, innovation, and conveience a.ii. enhance, through bundling, cost reduction and customer ervice a.iii. retain, through adaptability, communication and new products b. solutions b.i. direct marketing b.ii. cross-sell and up-sell b.iii. fulfillment b.iv. customer support b.v. proactive service, retention and loyalty programs b.vi. sales force automation