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Week 9- 11-29-04Week 9- 11-29-04
Integrated Communication Integrated Communication Strategy and Promotion Strategy and Promotion
Tools Tools
The Communication Process
NoiseNoise
SenderSender EncodingMessage
EncodingMessage
FeedbackFeedback
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
Marketing Communications Strategy
Let’s communicate with customers…
Steps to follow: Identify Target audience, Expected Response
(objectives),
Design the Message, Select the Media (importance of continuity: INTEGRATION of the COMMUNICATION MIX), Feedback.
One Main constraint: The budget. How much to spend?
Setting the Communication Budget
Wide possible rangeAffordable method - ignores promotion
impact on salesPercent of sales method - not
opportunity based Competitive parity method - company
needs are individualTask and Objective Method
Define specific promotion objectives Determine tasks needed to achieve Estimate costs of tasks Sum costs to set total promotion budget
The Need for Integrated Marketing Communications
Conflicting messages from different sources or promotional approaches
can confuse company or brand images
Integrated Marketing Communications
Marketing Communications Mix
AdvertisingAny paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified sponsor.
Personal SellingPersonal presentation by a firm’s sales force for the
purpose of making sales and building customer relationships
Direct MarketingDirect Connections with carefully targeted individual
consumers to both obtain an immediate response and cultivating lasting customers relationships.
Marketing Communications Mix
Public Relations Building good relations with the company’s various
publics by obtaining favourable publicity, building a good corporate image and handling stories or events.
Sales PromotionShort-term incentives to encourage the
purchase or sale of a product or service
Most impact when coordinated with entire marketing mix.
Goals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
Goals and Tasks of Promotion
Informative Objective
Increase awareness
Explain how product works
Suggest new uses
Build company image
Goals and Tasks of Promotion
Persuasion Objective
Encourage brand switching
Change customers’ perception of product attributes
Influence buying decision
Persuade customers to call
Goals and Tasks of Promotion
Reminder Objective
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
On Linehttp://www.tide.com
On Linehttp://www.tide.com
The AIDA Concept
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
AIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
AdvertisingAdvertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
PublicPublicRelationsRelations
Veryeffective
Veryeffective
Veryeffective
Noteffective
SalesSalesPromotionPromotion
Somewhateffective
Somewhateffective
Veryeffective
Somewhat effective
PersonalPersonalSellingSelling
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
Product Life Cycle and thePromotional Mix
Light Advertising;
pre-introduction
publicity
Heavy use of Advertising;
PR forawareness;
sales promotion
for trial
AD/PRdecrease;
limited sales
promotion; personal selling for
distribution
Ads decrease;
sales promotion;
personal selling;
reminder & persuasive
Advertising’ PR, brand
loyalty;personal selling for
distribution
IntroductionIntroduction GrowthGrowth
MaturityMaturityDeclineDecline
Sal
es (
$)S
ales
($)
TimeTime
Push and Pull Strategies
Push strategy: trade promotions and personal selling efforts push the product through the distribution channels.
Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.
Advertising
U.S. advertising spending exceeds $240 billion per year
Industry employs only 284,000
Ad budgets of some firms exceed over $2 billion per year—over $6 million per day!
Advertising Strategy:message strategy
Identify consumer benefits
Develop compelling creative concept (The Big Idea)
Appeals - meaningful credible & believable
Distinctively expressed
How to bring the message to Life: message execution
Choose style - how it is saidSlice of lifeFantasyMusical…
Set tone - humour - Sexual - Fear- other?
Select words - memorable and attention-getting
Format elements - copy headline - illustration
Selecting Advertising Media
Decide reach, frequency and impact.
Choose media type
Select specific media vehicles
Decide on media timing
Set timing pattern of ads
Advertising Evaluation
Communication effects
Sales effects
Evaluation difficult - especially salesSales vs. ad expenseExperiments
Sales-Promotion Objectives
ObjectivesMore short-term salesBuild long-term shareStimulate trialSwitch from
competitorsHold loyal customers Increase purchase
quantity
Consumer-Promotion Tools
Samples - trial amount of productCoupons - certificate to give buyer a
savingCash refund offers - reduction after
purchasePremiums - free or low-cost with
purchaseContests – Promotional events-chance to
win
Public Relations:potential activities
Press relationsPublic affairsLobbyingInvestor relationsDevelopment
Public Relations:major tools
Company news Speeches Special events Written materials Audiovisual production Corporate identity Public service activities Company web sites
Steps in Sales Force Management
Designing sales force strategy and structure
Recruiting and selecting
salespeople
Training sales people
Compensating salespeople
Supervising salespeople
Evaluating salespeople
Managing the Sales Force:sales-force structure
Organize by Territorydefines job - travel
By Productexpertise - overlap
Customer or Industry focus - one face
Complex structures
Managing the Sales Force:sales force size
One of the most productive assets
Also most expensiveSize impacts costsWorkload approach
Account classes (A-B)Sales calls (24-48)Compute size
Recruiting and Selecting Salespeople
Traits of the successful vary widely Enthusiasm, Persistence, Initiative,
Self-Confidence, Job Commitment.Selection procedures specific to
companiesTests -personal characteristics -
references - previous employment - interviewer’s views
Training Sales People
Training Goals
Learn company and assimilate culture
Technical information
Know customers and industry competitors
Average training period four months
Compensating Salespeople
Design to motivate and direct activitiesStraight salaryStraight commissionSalary plus bonusSalary & commissionSalary for stable
incomeVariable part for
results
Supervising Salespeople
Average face-to-face selling time 30%
Establish customer targets and call norms
Set time spent on prospecting
Annual call plan Time & duty analysis Salesforce
automation
Motivating Salespeople
Organizational ClimateOpportunitiesrewards - value
Sales Quotasachievablestretch goals
Incentivessales meetingsawards - contests
Evaluating Salespeople
Potential benefits of EvaluationExpectations clear Gather InformationHelpful feedbackMotivation
EvaluationComparison with PeersComparing with past salesQualitative Evaluation
ProspectingProspecting Salesperson Identifies Qualified Potential Customers.
Salesperson Identifies Qualified Potential Customers.
PreapproachPreapproachSalesperson Learns as Much as Possible About a Prospective
Customer Before Making a Sales Call.
Salesperson Learns as Much as Possible About a Prospective
Customer Before Making a Sales Call.
QualifyingQualifyingProcess of Identifying Good
Prospects and Screening Out Poor Ones.
Process of Identifying Good Prospects and Screening Out Poor
Ones.
Steps in the Selling Process
ApproachApproachSalesperson Meets the Buyer and
Gets the Relationship Off to a Good Start.
Salesperson Meets the Buyer and Gets the Relationship Off to a Good
Start.
PresentationPresentationSalesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.
Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.
ClosingClosing Salesperson Asks the Customer for an Order.
Salesperson Asks the Customer for an Order.
Handling ObjectionsHandling
ObjectionsSalesperson Seeks Out, Clarifies,
and Overcomes Customer Objections to Buying.
Salesperson Seeks Out, Clarifies, and Overcomes Customer
Objections to Buying.
Steps in the Selling Process
Follow-UpFollow-UpOccurs After the Sale and Ensures Customer Satisfaction and Repeat
Business.
Occurs After the Sale and Ensures Customer Satisfaction and Repeat
Business.