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Understanding business 8th by mcchugh nickels chapter 16

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Using Effective
Promotional
Techniques

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CHAPTER

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16

Nickels

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McHugh


McGraw-Hill/Irwin
Understanding Business, 8e

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McHugh
1-1

16-1

© 2008 The McGraw-Hill Companies, Inc., All Rights


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Traditional Promotional Mix

Advertising

Personal
Selling

Product

Public
Relations

Sales
Promotion

16-2


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Steps In A


Promotional Campaign
1. Identify the target market
2. Define the objectives
3. Determine the promotional budget
4. Develop a unifying message
5. Implement the plan
6. Evaluate effectiveness
16-3


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Objectives of
Integrated Marketing

• Build Brand Equity
• Provide Information
• Manage Demand & Build Sales
• Differentiate Products
• Influence Perceptions, Attitudes, &
Buyer Behavior

16-4


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Advertising

• Advertising media: Newspaper,

television, radio, magazines,
outdoor, direct mail, yellow-pages,
Internet
• The growing use of Infomercials
• Moving to the Internet
• Global advertising
16-5


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Century’s
Top Ad Jingles

• “You deserve a

break today”
“Be all you can be”

• “I wish I were an Oscar
Mayer wiener”
“A little dab’ll do ya”



• “Pepsi-Cola hits the • “Double your pleasure,
spot”
“Mm Mm good!”


• “See the USA in
your Chevrolet”

Source: Advertising Age

double your fun”
“It’s the real thing”


• “Winston tastes good

like a cigarette should”
16-6


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Do Blatantly Sexy
Ads Turn You Off?

Source: USA Today

16-7


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Total Direct
Advertising Expenditures

Source: The Direct Marketing Association, Advertising Age (accessed August 10, 2006)

16-8


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Money Spent to
Place Products

In Billions

Source: PQ Media

16-9


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Total Advertising
Expenditures By Media

Expenditures of 100 Leading
National Advertisers

Source: Advertising Age, 2005

16-10


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Ad Spending Growth

Source: Advertising Age, 2005

16-11


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Infomercials Grossing
Over 1 Billion
In Billions

Source: Business 2.0, June 2005

16-12


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U.S. Online
Ad Spending

Source: Investors.com; Advertising Age, 2005

16-13


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Steps in the
Selling Process (B2C)
Follow up
Close sale
Make presentation
Start

Ask questions
Approach
16-14


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Steps in the Selling
Process (B2B)

1. Prospect and Qualify
2. Preapproach
3. Approach
4. Make Presentation
5. Answer Objections
6. Close Sale
7. Follow Up

16-15


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Public Relations
Steps




Listen to the public.



Inform people that
you’re being
responsive to their
needs.

Change policies and
procedures.

Publicity




Free



Believable



No Control



No Repetition

More Effective Than
Advertising

16-16


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Sales Promotion Techniques
B2B






Trade Shows
Portfolios
Deals
Catalogs
Conventions

B2C













Coupons
Cents-off Promotions
Sampling
Premiums
Sweepstakes
Contests
Bonuses
Catalogs
Demonstrations
Special Events
Lotteries
In-store Displays

16-17


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Tips on
Issuing Coupons


Coupons can be used as a “Thank you for
buying” or a “Stop and try us.”



The value must be enough to attract customers.



Use coupon promotions sparingly.



Get professional help to get maximum
exposure.



Color-code your coupons for different groups
that use them.
16-18


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Coupon Statistics
Average Face Value

• 93 cents (2004); 46 cents (1990)
Amount saved in 2004

• $2.9 billion
Number of coupons redeemed in America
in 2004

• 3 billion
Coupons rank 2nd as purchase motivators
(Largest: Free Samples)
Source: St. Louis Post-Dispatch Everyday, July 2005

16-19


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Sales Promotion

• Internal & External
• Sampling
• Word-Of-Mouth
• Viral Marketing/Swag
• Blogging
• Podcasting
16-20


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Putting it all Together






Convince wholesalers and
retailers to stock and sell
Producer uses advertising,
personal selling, sales
promotion to convince the
intermediaries
Idea is to push the product
through the distribution
system to the stores





Heavy advertisements and
sales promotion efforts
Directed at consumers so
that they will request the
products from retailers
Products are pulled down
through the distribution
system

16-21



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