EOM - Unit 4
EOM - Unit 4
Promotion Mix
(Marketing Communications Mix)
• The specific blend of promotion tools (advertising, public
relations, personal selling, sales promotion, and direct
marketing tools) that the company uses to convincingly
communicate customer value and build customer
relationships.
Advertising
• Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified
sponsor via
– print media (newspapers and magazines),
– broadcast media (radio and television),
– network media (telephone, cable, satellite, wireless),
– electronic media (audiotape, videotape, videodisk, CD-
ROM, Web page),
– Mobile media,
– display media (billboards, signs, posters).
Sales promotion
• Short-term incentives to encourage the purchase or sale of a
product or a service.
– consumer promotions
– trade promotions
– business and sales force promotions
• includes discounts, coupons, displays, demonstrations, and
events.
Personal Selling
• Face to face personal interactions with the customer by the
firm’s sales force for the purpose of engaging customers,
making sales, and building customer relationships.
• includes sales presentations, trade shows, and incentive
programs.
Direct marketing
• Direct marketing is the use of consumer-direct (CD)
channels to reach and deliver goods and services to customers
without using marketing middlemen.
• Helps to obtain an immediate response and build lasting
customer relationships.
• includes direct mail, email, telemarketing, catalogs, online and
social media, mobile marketing, and more
Public relations (PR) or Publicity
• Building good relations with the company’s various publics
by obtaining favorable publicity, building up a good
corporate image, and handling or heading off unfavorable
rumors, stories, and events.
• includes press releases, sponsorships, events, and webpages.
Communication Macro Model
• major parties—sender and receiver
• major tools—message and media
• major communication functions—encoding, decoding,
response, and feedback.
• Noise - random and competing messages that may interfere
with the intended communication.
Communication Macro Model
• Senders must know
– what audiences they want to reach
– what responses they want to get.
• They must encode their messages so the target audience can
successfully decode them.
• They must transmit the message through media that reach the
target audience and develop feedback channels to monitor the
responses.
Communication Micro Model
• Concentrate on consumers’ specific responses to communications.
Communication Micro Model
• Awareness. If most of the target audience is unaware of the object,
the communicator’s task is to build awareness.
• Knowledge. The target audience might have brand awareness but not
know much more.
• Liking. Given target members know the brand, how do they feel
about it?
• Preference. The target audience might like the product but not
prefer/ suggest it to others.
• Conviction. A target audience might prefer a particular product but
not develop a faith/belief about buying it.
• Purchase. Finally, some members of the target audience might have
conviction but not quite get around to making the purchase.
Developing Effective Communication Strategies:
1) Identify the Target Audience:
• Process must start with a clear target audience in mind
– potential buyers of the company’s products,
– current users, deciders, or influencers,
– and individuals, groups, particular public, or the general
public.
• The target audience influence on the communicator’s
decisions about what to say, how, when, where, and to whom.
2) Determine the Communications Objectives:
• Establish the Category Need— Ex - A new to the world
product such as electric cars will always begin with a
communications objective of establishing category need.
Suppose the company estimates it has 1,000 A accounts and 2,000 B accounts.
A accounts require 36 calls a year, and B accounts require 12, so the company
needs a sales force that can make 60,000 sales calls (36,000 + 24,000) a year.
If the average full-time rep can make 1,000 calls a year, the company needs
60 reps.
5) Sales Force Compensation:
• Fixed amount - salary
• Variable amount - commissions, bonus, or profit
sharing,
• Expense allowances - costs of travel
• Benefits - paid vacations, sickness or accident benefits,
pensions, and health and life insurance
Managing the Sales Force
1) Recruiting and Selecting
Representatives
• One survey revealed that the top 25 percent of the sales
force brought in more than 52 percent of the sales.
• It’s a great waste to hire the wrong people.
• The average annual turnover rate of sales reps for all
industries is almost 20 percent.
• Sales force turnover leads to lost sales, the expense of
finding and training replacements, and often pressure
on existing salespeople to pick up the slack.
2) Training Sales Representatives
• New reps may spend a few weeks to several
months in training.
• The median training period is
– 28 weeks in industrial-products companies,
– 12 weeks in service companies,
– 4 weeks in consumer-products companies.
3) Supervising Sales Representatives
Sales Quotas:
• Compensation is often tied to degree of quota fulfillment.
5) Evaluating Sales Representatives
• sales reports.
• personal observation,
• salesperson self-reports,
• customer letters and complaints,
• customer surveys,
• conversations with other sales reps.
Steps in Effective Personal Selling:
1. Prospecting And Qualifying:
2. Pre-approach:
3. Presentation And Demonstration:
4. Overcoming Objections:
5. Closing the Sale:
6. Follow-Up And Maintenance:
1.Prospecting And Qualifying:
• The first step in selling is to identify and
qualify prospects.
• More companies are taking responsibility for
finding and qualifying leads so salespeople can
use their expensive time doing what they do
best: selling.
• IBM qualifies leads according to the BANT
acronym:
– Does the customer have the necessary budget,
– the authority to buy,
– a compelling need for the product or service, and
– a timeline for delivery that aligns with what is
possible?
2. Pre-approach:
• The salesperson needs to learn as much as possible
about the prospect company (what it needs, who
takes part in the purchase decision) and its buyers
(personal characteristics and buying styles).
• How is the purchasing process conducted at the
company? How is it structured?
• Another task is to choose the best contact approach
—
– a personal visit, phone call, e-mail, or letter.
3. Presentation And Demonstration:
• The salesperson tells the product “story” to the buyer,
using a features, advantages, benefits, and value (FABV)
approach.
• Features describe physical characteristics of a market
offering
• Advantages describe why the features give the customer
an edge.
• Benefits describe the economic, technical, service, and
social pluses delivered.
• Value describes the offering’s worth (often in monetary
4. Overcoming Objections:
• Customers typically pose objections.
• Psychological resistance includes resistance to
interference, preference for established supply sources
or brands, laziness, unwillingness to give up
something, unpleasant associations created by the sales
rep, predetermined ideas, dislike of making decisions,
and a neurotic attitude toward money.
• Logical resistance might be objections to the price,
delivery schedule, or product or company
characteristics.
• To handle these objections, the salesperson maintains a
positive approach, asks the buyer to clarify the
objection, questions in such a way that the buyer
answers his own objection.
5. Closing the Sale:
• Closing signs from the buyer include physical
actions, statements or comments, and questions.
• Reps can ask for the order, recapitulate the points of
agreement, offer to help write up the order, ask
whether the buyer wants A or B, get the buyer to
make minor choices such as color or size, or indicate
what the buyer will lose by not placing the order now.
• The salesperson might offer specific inducements to
close, such as an additional service, an extra quantity,
or a token gift.
6. Follow-Up And Maintenance:
• Follow-up and maintenance are necessary to ensure customer
satisfaction and repeat business.
• Immediately after closing, the salesperson should cement any
necessary details about delivery time, purchase terms, and
other matters important to the customer.
• He or she should schedule a follow-up call after delivery to
ensure proper installation, instruction, and servicing and to
detect any problems, assure the buyer of his or her interest,
and reduce any cognitive dissonance.
• The salesperson should develop a maintenance and growth
plan for the account.
Direct Marketing:
• Direct marketing is the use of consumer-direct
(CD) channels to reach and deliver goods and
services to customers without using marketing
middlemen.
Methods of Direct Marketing:
Direct marketers can use a number of channels to reach individual
prospects and customers:
• direct mail,
• catalog marketing,
• telemarketing,
• interactive TV,
• kiosks,
• mobile devices.
Benefits of Direct Marketing:
• Customize and personalize messages (Market
demassification).
• builds a continuous relationship with each customer.
• It is convenient.
• It saves time to introduce more products.
Direct Mail:
• Direct-mail marketing means sending an offer, announcement,
reminder, or other item to an individual consumer.
• Using highly selective mailing lists, direct marketers send out
millions of mail pieces each year—letters, flyers, and
multimedia DVD’s.
• Direct mail is a popular medium because it permits target
market selectivity, can be personalized, is flexible, and allows
early testing and response measurement.
Catalog Marketing:
• Establishing Objectives
• Choosing Messages and Vehicles
• Implementing the Plan and
• Evaluating Results
Sponsorship or Events - Objectives
• 1. To identify with a particular target market —Customers can
be targeted geographically, demographically, psychographically,
or behaviorally according to events.
• 2. To increase salience of company or product name—
Sponsorship offers sustained exposure for a brand, a necessary
condition for reinforcing brand salience.
• 3. To create or reinforce key brand image associations—
Events themselves have associations that help to create or
reinforce brand associations.
Sponsorship or Events Objectives
• 4. To enhance corporate image—Sponsorship can improve
perceptions that the company is likable and prestigious.
• 5. To create experiences and evoke feelings—The feelings
engendered by an exciting or rewarding event may indirectly
link to the brand. Audi models featured prominently in the 2010
blockbuster Iron Man 2.
• 6. To express commitment to the community or on social
issues—Cause-related marketing sponsors nonprofit
organizations and charities.
Sponsorship or Events Objectives
• 7. To entertain key clients or reward key employees
—Many events include lavish hospitality tents and
other special services or activities only for sponsors
and their guests.
• 8. To permit merchandising or promotional
opportunities—Many marketers tie contests, in- store
merchandising, direct response, or other marketing
activities with an event.
Major Sponsorship Decisions