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1、Promotion and Pricing Strategies,Chapter 14,Discuss how integrated marketing communications relates to a firms overall promotion strategy. Explain promotional mix and outline the objectives of promotion. Summarize the different types of advertising and advertising media. Outline the roles of sales p
2、romotion, personal selling, and public relations.,Describe pushing and pulling promotional strategies. Outline the different types of pricing strategies. Discuss how firms set prices in the marketplace, and describe the four alternative pricing strategies. Discuss consumer perceptions of price.,Lear
3、ning Goals,1,2,3,4,5,6,7,8,Promotion is the function of informing, persuading, and influencing a purchase decision. Integrated marketing communications (IMC) is the coordination of all promotional activitiesmedia advertising, direct mail, personal selling, sales promotion, and public relationsto pro
4、duce a unified customer-focused message.,Promotion,Must take a broad view and plan for all form of customer contact. Create unified personality and message for the good, service, or brand. Elements include personal selling, advertising, sales promotion, publicity, and public relations.,Integrated Ma
5、rketing Communications,Promotional mix - combination of personal and nonpersonal selling techniques designed to achieve promotional objectives. Personal selling - interpersonal promotional process involving a sellers face-to-face presentation to a prospective buyer. Nonpersonal selling - advertising
6、, sales promotion, direct marketing, and public relations.,Promotional Mix,Components of the Marketing Mix,Objectives of Promotional Strategies,Product placement - marketers pay placement fees to have their products showcased in various media, ranging from newspapers and magazines to television and
7、movies. Guerilla marketing - innovative, low-cost marketing efforts designed to get consumers attention in unusual ways.,Promotional Planning,Advertising - paid nonpersonal communication delivered through various media and designed to inform, persuade, or remind members of a particular audience. Con
8、sumers receive 5,000 marketing messages each day. Firms need to be more and more creative and efficient at getting consumers attention.,Advertising,Product advertising - messages designed to sell a particular good or service. Institutional advertising - messages that promote concepts, ideas, philoso
9、phies, or goodwill for industries, companies, organizations, or government entities. Cause advertising - institutional messaging that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process.,Types of Advertising,Informative advertising - used
10、to build initial demand for a product in the introductory phase. Persuasive advertising - attempts to improve the competitive status of a product, institution, or concept, usually in the growth and maturity stages. Comparative advertising - compares products directly with their competitors either by
11、 name or by inference. Reminder-oriented advertising - appears in the late maturity or decline stages to maintain awareness of the importance and usefulness of a product.,Advertising and The Product Life Cycle,Advertising Media Pie,Television Easiest way to reach a large number of consumers. Most ex
12、pensive advertising medium. Newspapers Dominate local advertising. Relatively short life span. Radio Commuters in cars are a captive audience. Satellite radio offers new opportunities.,Types of Advertising,Magazines Consumer publications and trade journals. Can customize message for different areas
13、of the country. Direct Mail Average American receives 550 pieces annually High per person cost, but can be carefully targeted and highly effective. Outdoor Advertising $3.2 billion annually Requires brief messages.,Online and Interactive Advertising Viral advertising creates a message that is novel
14、or entertaining enough for consumers to forward it to others, spreading it like a virus. Many consumers resent the intrusion of pop-up ads that suddenly appear on their computer screen. Sponsorship Providing funds for a sporting or cultural event in exchange for a direct association with the event.
15、Benefits: exposure to target audience and association with image of the event. Other Media Options Marketers look for novel ways to reach customers: infomercials, ATM receipts, directory advertising.,Types of Advertising,Sales promotion - nonpersonal marketing activities other than advertising, pers
16、onal selling, and public relations that stimulate consumer purchasing and dealer effectiveness.,Sales Promotion,Premiums, Coupons, Rebates, Samples Coupons attract new customers but focus on price rather than brand loyalty. Rebates increase purchase rates, promote multiple purchases, and reward prod
17、uct users. Three of every four consumers who receive a sample will try it. Games, Contests, and Sweepstakes Introduction of new products. Subject to legal restrictions. Specialty Advertising Gift of useful merchandise carrying the name, logo, or slogan of an organization.,Consumer-Oriented Promotion
18、s,Trade-Oriented Promotions,A person-to-person promotional presentation to a potential buyer. Customers are relatively few in number and geographically concentrated. The product is technically complex, involves trade-ins, and requires special handling. The product carries a relatively high price. It
19、 moves through direct-distribution channels. Example: Selling to the government or military.,Personal Selling,Order Processing Identifying customer needs, pointing out merchandise to meet them, and processing the order. Creative Selling Promoting a good or service whose benefits are not readily appa
20、rent or whose purchase decision requires a close analysis of alternatives. Missionary Selling Representative promotes goodwill for a company or provides technical or operational assistance to the customer. Telemarketing Personal selling conducted by telephone; regulated by the Federal Trade Commissi
21、ons 1996 Telemarketing Sales Rule.,Sales Tasks,The Sales Process,A good salesperson varies the sales process based on customers needs and responses. Prospecting - identifying potential customers. Qualifying - identifying potential customers. Approaching - analyzing available data about a prospective
22、 customers product lines and other pertinent information.,Prospecting, Qualifying, and Approaching,Presentation Salespeople communicate promotional messages. They may describe the major features of their products, highlight the advantages, and cite examples of satisfied consumers. Demonstration Rein
23、forces the message that the salesperson has been communicating.,Presentation & Demonstration,Use objections as an opportunity to answer questions and explain how the product will benefit the customer. The closing is the critical point in the sales process. Even if the sale is not made, the salespers
24、on should regard the interaction as the beginning of a potential relationship.,Handling Objections & Closing,An important part of building a long-lasting relationship. May determine whether the customer will make another purchase.,Follow-up,Public relations - a public organizations communications an
25、d relationships with its various audiences. Helps a firm establish awareness of goods and services and builds a positive image of them. Publicity - stimulation of demand for a good, service, place, idea, person, or organization by disseminating news or obtaining favorable unpaid media presentations.
26、 Good publicity can promote a firms positive image. Negative publicity can cause problems.,Public Relations,Pushing strategy - relies on personal selling to market an item to wholesalers and retailers in a companys distribution channels. Companies promote the product to members of the marketing chan
27、nel, not to end users. Pulling strategy - promote a product by generating consumer demand for it, primarily through advertising and sales promotion appeals. Potential buyers will request that their suppliersretailers or local distributorscarry the product, thereby pulling it through the distribution
28、 channel. Most marketing situations require combinations of push and pull strategies,Promotional Strategy,Pricing Objectives in the Marketing Mix,Profitability Objectives Maximize profits by reducing costs. Maintain price while reducing package size. Volume Objectives Base pricing decisions on marke
29、t share goals. Pricing to Meet Competition Meeting competitors price. Competitors cannot legally work together to set prices. Competition can result in a price war.,Pricing Objectives,Prestige Objectives Establishing a relatively high price to develop and maintain an image of quality and exclusivene
30、ss. Recognition of the role of price in communicating an overall image for the firm and its products. Pricing is influenced by people in different areas of a company.,Pricing Strategies,Break-even Analysis,Breakeven analysis -pricing technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.,Break-even Analysis,Skimm
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