Using Effective Promotions

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1 Chapter 16: Using Effective Promotions Product Place Price Promotion 48 slides 12 slides 4 slides 2 slides 2 3 1

2 Any of a variety of methods used to communicate with the people in your target market and persuade them to participate in an exchange with your company. Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message. 4 5 ($millions) RANK MEDIUM Broadcast TV $ 49,628 2 Direct mail $ 48,305 3 Cable TV $ 24,373 4 Magazines (incl. B2B) $ 23,825 5 Internet, excl. search $ 21,576 6 Newspaper (incl. FSI) $ 18,878 7 Internet Search $ 14,994 8 Yellow Pages (print) $ 9,036 9 Radio $ 8,361 All other $ 30,323 Total $ 251,311 FSI means Free Standing Inserts. They look like this: 2

3 Advertisers (the customers) Advertising agencies Production companies Media placement firms National TV networks Local TV stations Cable TV channels Top U.S. Advertisers 2012 Ad Spending ($Millions) Procter & Gamble $4,830 General Motors $3,067 Comcast $2,989 AT&T $2,910 Verizon $2,381 Ford $2,277 L Oreal $2,240 JP Morgan Chase $2,087 American Express $2,071 Toyota $2,008 Research, strategy, and message development Creative Production Media placement Measurement of effectiveness (analytics)

4 Who is in our target market? What benefits does our product offer them? What distinguishes us from the competition? What is our unique value proposition? Given the target market, its characteristics, and the product s unique value proposition, how can we best reach the customer? How can we make it memorable? What set of messages and media will make the most favorable and lasting impression? Video and TV production (average 30 second spot costs $350,000) Print production Still Image production Design (logos and other design elements) Website development

5 Most 30 minute TV shows run 22 minutes, leaving 8 minutes for advertising 6 minutes for national advertising 2 minutes for local advertising 30 national seconds during: the Superbowl costs $4 million The Simpsons costs $231,532 Elementary costs $127,700 Hawaii Five-O costs $61,160 America s Next Top Model costs $25, local seconds will cost you: $100 to $1,500 Other possibilities 10 second, 15 second Banner ads, a.k.a. overlay ads Online video directories Infomercials

6 Infomercials Anything that calls for a specific measurable response from individual customers. Examples: A TV ad that says call this 800-number right now! A direct mail ad that contains a special coupon developed just for this direct mail campaign. They can track response. A bus shelter poster that invites you to scan a QR code

7 Almost 100% direct response advertising (trackable response) Care is often taken in purchasing/developing the mailing list to send it only to persons with an above-average likelihood of interest. Search Mobile Banner Digital video Classifieds

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13 Outdoor Product placement Venue or event naming rights Trade promotion Rack cards, booklets, programs, and leaflets Billboards Buses and bus shelters Subway stations and trains Sports venues (excl. naming) Human Directionals

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16 Product Placement 46 Levi s Stadium (Santa Clara) AT&T Park Most NASCAR Races (e.g. Sprint Cup Series, XFINITY Series) 16

17 In business and marketing, trade refers to the relationship between manufacturers and their wholesale and retail distribution partners. Trade promotion refers to marketing activities that are executed by the channel partners but with the guidance, cooperation, and/or financial assistance of the manufacturer. Payments from manufacturer to retailers Slotting Fees Cooperative advertising dollars Merchandise Allowances Other elements of B2C Trade Promotions In-store signage and displays In-store coupons 17

18 The promotion of goods and services to an individual sales prospect by a live human being. Mr. Lilly says: There is no better way to sell anything, including yourself, than in a face-toface meeting. A job interview is personal selling. Your goal when you craft your resume should not be to get the job, it should be to get the job interview. In B2B selling, the sales presentation is the main event in the selling process. 53 The single biggest component of the promotion budget for most B2B manufacturers. Advantages over other promotional techniques: 1. Customized to an audience of one. 2. A two-way communication flow. Opportunity to customize the offering. Pitch can be adjusted on the fly. 3. Opportunity to trigger the reciprocity response

19 1. Prospecting and Qualifying 2. The Preapproach 3. The Approach & the Needs Identification Phase 4. Making the Sales Presentation 5. Answering Objections 6. Closing the Sale 7. Following Up 55 Prospecting: Finding sales leads. Qualifying: Figuring out which leads are sales prospects, and which are not. A sales prospect: Someone with the budget, authority, and a present need for your product. A sales lead: Someone who might be a sales prospect, but you don t know. 56 All the research you do before you first contact a sales lead or sales prospect. Read the company s latest annual report Read the prospect s Linked-In profile Do a Google search on both the company and the sales prospect Check your company s CRM system 57 19

20 The salesperson s initial contact with the sales prospect. Introduce yourself Offer a benefit Seek permission to continue the sales process Do a needs identification 58 Act like a doctor. Try to find out where it hurts. In consultative selling, it s used to craft the actual solution to the customer s problem. In needs-satisfaction selling, it s mostly used to craft the selling message. 59 This is the main event in the B2B sales process. Typically 2 hours in length The last minutes of that 2 hours is set aside for questions Shows how the offering satisfies the needs identified during the needs identification phase 60 20

21 Objection: A concern or reason not to continue raised by the buyer. Can occur at any time, but it s especially important to be prepared for them at the end of the sales presentation. Try to establish if it s a misunderstanding or a need. If a need, might be able to meet the need if the customer can be flexible on another expressed need. 61 A request for a decision or commitment from the buyer. You are more likely to win the business if you ask for it. You re trying to trigger the customer s reciprocity response. Never try to close until all objections have been addressed! Takes many forms. 62 Direct request: Should we place this order? Minor point of clarification: Would you prefer red, green, or blue? Summary of where we re at: It sounds like what you want is the model 2122 with the one year service contract. Was there anything else? 63 21

22 Professional salespeople have valuable and unique skills. To some degree, you want them to move on to the next sales prospect as soon as possible. On the other hand, the sales person is the person the customer has trusted in placing the order. Some follow up by the sales person to make sure everything is satisfactory is therefore appropriate and wise Anticipating, analyzing and interpreting public opinion about the company and its actions and products. 2. Developing and executing a program to improve or manage public opinion about the company, its actions, its policies, and its products. 65 Press releases and the development of a trust relationship with media contacts. Charitable giving Executive Blogs (B2B) Presentations and participation in panel discussions at user groups and trade shows (B2B) Some Guerilla marketing (B2C) 66 22

23 Publicity stunts Flash mobs Graffiti Street performances The strategic use of Twitter and Flickr by certain food trucks beginning in Los Angeles in To gain favorable publicity for the company, and its products by writing press releases with content that will be picked up, syndicated, and discussed by the press and the public. 2. To lead the damage control effort when and if the company or one of its employees makes an embarrassing public mistake. 3. To use all other available means to cultivate both awareness of, and the desired image in the mind of the public of, the company and its brands. 68 The wise and synergistic use of owned, paid, and earned media exposure to achieve your marketing communication objectives. Owned media: Your company s website, brochures, pamphlets, technical whitepapers, product pages on Facebook, distribution lists, and Twitter account. Paid media: Television, radio, print, and digital advertising on or in other peoples TV or radio stations, periodicals, or websites. Earned media: E.g. newspaper, third-party blog notpaid-for, retweet, and trade magazine articles about your company, its events and actions, or its products

24 A promotion process that allows marketers to go beyond the traditional broadcast monologue model. Old-style mass media advertising is push advertising. The company pushes or broadcasts its message out to the public, and except for changes in sales volume or information gathered by the company s salespeople, the company cannot tell how the public is reacting. The new model is responsive marketing communication. This is generally managed through a process called sales lead nurturing, a key part of inbound marketing. 70 Any system that allows you to send an automated series of s to an early-stage lead to: Inform them about and interest them in your product offerings Increase the depth and specificity of the information you provide them as their level of interest and your increasing knowledge of their areas of interest both grow. ( Depth on demand ) Begin, and possibly make extensive progress on, the needs identification and lead qualification processes. 71 An assortment of miscellaneous techniques used to reach current and prospective customers or channel partners with a marketing message. Often used to produce a short-term spike in demand. Examples: Operating a booth or giving a presentation at a trade show Sending a catalog to past customers and inviting them to place orders online, or through an 800- number, or through your dealer network Coupons and rebates 72 24

25 Sampling Offering cooperative advertising dollars to your wholesale or retail distribution partners (B2C) Offering special training for a limited time to your wholesale or retail distribution partners (B2B) Offering temporary price discounts to your distribution partners Upgrade programs: Opportunities for customers to upgrade their older equipment to newer equipment at a special discount. Contests and sweepstakes 73 25