Using Effective Promotions
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1 Chapter 16 Using Effective s McGraw-Hill/Irwin Copyright 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
2 Chapter Sixteen NAME that COMPANY This beverage company has 8.5 million Facebook fans. It posts two daily messages and then monitors how many times each message is reviewed, how many times it is shared, and what the fan response to the messages is. It also uses Facebook to test potential ads before airing them on traditional media like TV. Name that company! Dr. Pepper 16-5
3 and the Mix LG1 PROMOTION in an ORGANIZATION Mix Combination of four promotional tools 16-6
4 the Mix LG1 INTEGRATED MARKETING Integrated Marketing Communication (IMC) Combines the promotional tools into one strategy Creates positive brand image Meet the needs of consumers Meet the strategic goals Steps in a al Campaign 1. Identify a target market 2. Define objectives 3. Determine budget 4. Develop unifying message 5. Implement the plan 6. Evaluate effectiveness
5 : Informing, Persuading and Reminding LG2 ADVERTISING in the FIRM -- Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message. Major goals of advertising: - Inform - Persuade - Remind 16-12
6 : Informing, Persuading and Reminding LG2 SOCIAL MEDIA ADVERTISING Social media advertising is growing so fast, marketers can t keep up. Starbucks has over 12 million followers on Twitter McDonald s has over 7 million fans on Facebook Do you follow any companies on Twitter or Facebook?
7 Television LG2 POPULAR ADVERTISING MEDIA TV advertising is still the dominant media Digital Video Recorders (DVRs) challenge TV advertising because viewers can skip ads. Product Placement -- Advertisers pay to put their products into TV shows and movies where the audience will see them.
8 Television LG2 WHAT IF BUDGET IS SMALL? VIDEO oxo (7 min) Brand Management & Budget Paper: 1. Rather than print/tv, how do they communicate with their market? 2. Would you consider brand management or advertising as a career? Why?
9 Making Ethical Decisions PAY-PER-TWEET Celebrities can earn large sums of money just buy mentioning a product or site in their tweets Do you think it s ethical for celebrities to get paid to tweet prewritten ads that appear to be their own personal comments? 16-26
10 Personal : Providing Personal Attention LG3 PERSONAL SELLING Personal -- The face-to-face presentation and promotion of a product, including the salesperson s search for new prospects and follow-up service. Listen to customer needs Help reach a solution Do everything possible to make the transaction as simple as possible
11 Steps in the Process LG3 RELATIONSHIP-BASED SELLING PROCESS VIDEO Medtronic (6 min) hip-based Paper: 1. What barriers did they face in sales? 2. How did they build relationships? 3. Would you consider sales as a career? Why? 16-33
12 : Building hips LG4 PUBLIC RELATIONS (PR) Evaluates public attitudes, then changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance 3 steps of a good PR program: 1) Listen to the public 2) Change policies and procedures 3) Inform people you re responsive to their needs
13 ity: The Talking Arm of PR LG4 PUBLICITY ity Information about an individual, product or organization that s distributed to the public through the media and is not paid for or controlled by the seller (Press Releases) Advantages of ity: - Free - Reaches people who would not look at an advertisement - More believable than advertising
14 : Giving Buyers Incentives LG5 SALES PROMOTIONS Stimulate consumer purchasing and dealer interest by means of short-term activities Categories of s B2B Trade shows, Contests Consumer Costco free food, Coupons
15 Viral Marketing LG6 EMERGING PROMOTIONAL TOOLS Viral Marketing Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions. People who promote through viral marketing often receive SWAG which can include free tickets, shirts, and other merchandise
16 Mobile Media LG6 MOBILE MEDIA Marketers make use of cell phones to text customers about product offers and other company information
17 al Strategies LG6 PUSH, PULL, AND PICK PROMOTIONAL STRATEGIES Push Strategy (work with intermediaries), personal selling, sales promotion, and other tools to get their products stocked on shelves Sell out your existing supply of product Pull Strategy (work with end users) Heavy advertising and sales promotions efforts towards consumers and gets the public to request their products from retailers Generate interest so customers seek out your product
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