* * * Using Effective Promotional Techniques * CHAPTER ** 16 Nickels * McHugh McGraw-Hill/Irwin Understanding Business, 8e * McHugh 1-1 16-1 © 2008 The McGraw-Hill Companies, Inc., All Rights * * * Traditional Promotional Mix Advertising Personal Selling Product Public Relations Sales Promotion 16-2 * * * Steps In A Promotional Campaign Identify the target market Define the objectives Determine the promotional budget Develop a unifying message Implement the plan Evaluate effectiveness 16-3 * * * Objectives of Integrated Marketing • Build Brand Equity • Provide Information • Manage Demand & Build Sales • Differentiate Products • Influence Perceptions, Attitudes, & Buyer Behavior 16-4 * * * 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 * * * 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 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 * * * Do Blatantly Sexy Ads Turn You Off? Source: USA Today 16-7 * * * Total Direct Advertising Expenditures Source: The Direct Marketing Association, Advertising Age (accessed August 10, 2006) 16-8 * * * Money Spent to Place Products In Billions Source: PQ Media 16-9 * * * Total Advertising Expenditures By Media Expenditures of 100 Leading National Advertisers Source: Advertising Age, 2005 16-10 * * * Ad Spending Growth Source: Advertising Age, 2005 16-11 * * * Infomercials Grossing Over Billion In Billions Source: Business 2.0, June 2005 16-12 * * * U.S Online Ad Spending Source: Investors.com; Advertising Age, 2005 16-13 * * * Steps in the Selling Process (B2C) Follow up Close sale Make presentation Start Ask questions Approach 16-14 * * * Steps in the Selling Process (B2B) Prospect and Qualify Preapproach Approach Make Presentation Answer Objections Close Sale Follow Up 16-15 * * * 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 * * * 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 * * * 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 * * * 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 • billion Coupons rank 2nd as purchase motivators (Largest: Free Samples) Source: St Louis Post-Dispatch Everyday, July 2005 16-19 * * * Sales Promotion • Internal & External • Sampling • Word-Of-Mouth • Viral Marketing/Swag • Blogging • Podcasting 16-20 * * * 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 ... Advertising Age, 2005 16- 10 * * * Ad Spending Growth Source: Advertising Age, 2005 16- 11 * * * Infomercials Grossing Over Billion In Billions Source: Business 2.0, June 2005 16- 12 * * * U.S Online... Advertising Age (accessed August 10, 2006) 16- 8 * * * Money Spent to Place Products In Billions Source: PQ Media 16- 9 * * * Total Advertising Expenditures By Media Expenditures of 100 Leading National... the real thing” • • “Winston tastes good like a cigarette should” 16- 6 * * * Do Blatantly Sexy Ads Turn You Off? Source: USA Today 16- 7 * * * Total Direct Advertising Expenditures Source: The Direct