Chapter 16 Advertising Public Relations and Sales Promotion 1 Major Types of Advertising a firms promotional objectives determine the type of advertising it uses a Firms promotional objectives determine the type of advertising it a Advertising response function a phenomenon in which spending for advertising and sale promotion increases sales or marketing up to a certain level but then produces diminishing returns uses i ii Product advertising Institutional advertising 2 Advertising and Market Share 3 Effects of Advertising on Consumers 4 Creative Decisions in Advertising a Identifying Product Benefits i Attribute ii Benefit 5 Unique selling proposition a desirable exclusive and believable advertising appeal selected as the theme for campaign 6 Media Types a Newspapers b Coop Advertising arrangement in which the manufacturer and the retailer split the costs of advertising the manufactures brand c Magazine d Radio e Television infomercial f g Adver gaming placing advertising messages in video games h Outdoor Media i Alternative Media 7 Media Selection Considerations Internet a Media Mix the combination of media to be used for a promotional b Cost per Contact the cost of reaching one member of the target c Cost per click cost associated with a consumer clicking on a display or campaign market banner ad d Frequency number of times an individual is exposed to a given message during a specific period e Audience selectivity ability of an advertising medium to reach a precisely defined market 8 Media Scheduling a Continuous media schedule used for products in the later stage of the product life cycle b Flighted Media schedule ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times c Pulsing media schedule combines continuous scheduling with flighted scheduling during the best sales periods d Seasonal media schedule advertising only during times of the year the product will be used 9 Public relations element in the promotional mix that evaluates public attitudes identifies issues that may elicit public concern and executes programs to gain public understanding and acceptance a Publicity 10 Major Public Relations Tools a New product publicity b Product placement c Consumer education d Sponsorship e Company Websites f Company Social Media Sites 11 Managing unfavorable Publicity a Crisis management coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event 12 Sales Promotion a Trade Sales promotion b Consumer Sales Promotion c Types of Consumers and Sales Promotion Goals see table pg 283 i Loyal customers ii Competitors customers iii Brand switchers iv Price buyers Chapter 17 Personal Selling Sales Management 1 Identify customer relationships a Customer centric an internal management philosophy similar to the marketing concept b Learning informal process of collecting customer data c Knowledge Management customer info is centralized and shared in order to enhance relationships between customers and organization i VP in seafood industry collected data about industry everyday and kept active in the industry current events d Interaction customer and organization interact and exchange info 2 Understand Interactions of the Current Customer Base a Touch points areas of a business where customers have contact with the company and data might be gathered b Point of sale interactions touch point in stores or info kiosks that use software to enable customers to easily provide info about themselves without feeling violated 3 Capture Customer Data 4 Leverage Customer info a Campaign management developing product or service offerings customized for the appropriate customer segment and then pricing and communicating theses offerings for the purpose of enhancing customer relationships b Retaining loyal customers c Cross selling other products and services 5 Common CRM Marketing Database Applications a Campaign Management b Retaining loyal customers c Cross selling other products or services d Designing targeted marketing communications e Reinforcing customer purchase decisions Inducing product trail by new customers f Increasing effectiveness of distribution channel marketing g Improving customer service h 6 7 Steps in the Personal Selling Process a Generating Leads i Lead generation or prospecting identification of those firms and people most likely to buy the sellers offerings ii Referral recommendation to a salesperson from a customer or business associate iii Networking finding potential clients from friends business contacts coworkers and acquaintances c Pre approach learn how to say customers last name learn about b Qualifying Leads i Determination of a sales prospects 1 Recognized need 2 Buying power 3 Receptivity and accessibility them from knowledge management Dumbass commercial i d Approaching the customers and probing needs e Developing and proposing solutions f Handling objections i Copier sales monthly maintenance fee from IBM lifetime maintenance is included with Professor s company i Boeing Jet engines prices sometimes are negotiated g Closing the Sale h Following up i Check with shipping company before asking Walmart if they 7 Sales Management have received order a Defining sales goals and the sales process b Determining the sales force structure c Recruiting and training the sales force d Compensating and motivating the sales force e Evaluating the sales force f Defining Sales Goals and Sales process i Quota sales goals usually based on sales volume alone but sometimes including key accounts new accounts repeat sales and specific products g Determine the Sales force structure h Recruiting and training the sales force i Risk takers 1 Professors story and grocery people timed sales pitch set his alarm and took his risk sorry buyer your time is up 8 Compensating and Motivating the Sales Force a You want your sales force to have an ego Chapter 18 Social Media and Marketing 1 How consumers use social media a Provides a more sophisticated method for marketers to interact 2 Social Media any tool or service that uses the internet to facilitate with consumers conversations 3 Social commerce a subset of e commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services 4 Crowdsourcing describes how the input of many people can be leveraged to make decisions that used to be based on