Four Elements of the Marketing Mix and Four Promotion ActivitiesMarketing Mix – what is the goal?ProductProduct – it’s more than you think.Price - it’s important to successPlace - it has to be availableProducts are Often Distributed Through Resellers.Wholesaler/DistributorPromotion – you have to tell peoplePromotion ActivitiesSlide 11Slide 12Example – Crest ToothpasteSlide 14Slide 15Slide 16Slide 17Relationship MarketingThree Levels of Relationship MarketingPartnering with CustomersConsultative SellingThe Role of Consultative SellingAvoid The Customer-Seller Relationship GapThe Key to SuccessSlide 25Slide 26Slide 27Slide 28Slide 29Slide 302-1Four Elements of the Marketing Mix and Four Promotion Activities2-2Marketing MixMarketing Mix – what is the goal?– what is the goal?The goal is to create a marketing mix that contains the right product, at the right price, at the right place and time, with the right promotional effort to create awareness and demand.2-3ProductProductA product is a bundle of tangible and intangible attributes, including package, color, and brand, plus the services and even the reputation of the seller2-4Product – it’s more than you think.2-5 Price Price - - it’s important to successPrice refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the productBased on costBased on market2-6PlacePlace - it has to be availableManufacturer > Wholesaler > Retailer > Customer2-7Products are Often Distributed Through Resellers.What are Resellers?Resellers, such as wholesalers or retailers, purchase products and then sell to organizations and/or individuals2-8Wholesaler/DistributorPrimarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods, usually in smaller quantities toRetailersWholesalersManufacturers2-9PromotionPromotion – you have to tell peoplePromotion increases sales by communicating product information to potential customersThe four basic components of a firm’s promotional effort are: (PAPs)Personal sellingAdvertisingPublicitySales promotion2-10Promotion ActivitiesPersonal SellingPersonal communication of information to persuadeAdvertisingNon-personal communication of information paid for by an identified sponsor such as an individual or an organization. Methods include TV, newspapers, catalogs and the radio2-11Promotion ActivitiesPublicityNon-personal communication of information that is not paid for by an individual organization. Information appears in media such as television, radio and newspapersSales promotionInvolves activities or materials used to create sales for goods or services2-12Promotion ActivitiesTwo types of sales promotionConsumer - includes free samples, coupons, contests, and demonstrations to consumers (“pull”)Trade - encourages wholesalers and retailers to purchase and to sell aggressively using devices such as sales contests, displays, special purchase prices, and free merchandise (“push”)2-13Example – Crest ToothpastePrior to the 1960s tooth cleaners were in the form of powder, then paste. They contained cleaners, polishers, and eventually some mouth freshener (mint oil).By the 1960s dental care had reached a high level, and a main enemy was identified – dental caries.Salespeople were asking customers (retail drug stores) what could be done to improve the product, and cavity prevention emerged.2-14Example – Crest ToothpasteProcter and Gamble scientists developed a way to incorporate a known enamel hardener – fluoride – into toothpaste.Studies were done to confirm the positive effects, and the product went to market.2-15Example – Crest ToothpasteProduct:“Crest” toothpaste with flouride.Price:Comparable with market – “penetration pricing”Promotion:Publicity – news articles about “new cavity fighter”Sales Promotions – “pull” using samples sent to households2-16Example – Crest ToothpasteSales Follow UpSalespeople followed up to insure sales commitments were being met (if they weren’t = How can I help?)Salespeople trained retail sales force in stores.Salespeople continued to provide feedback.Salespeople sought new markets (grocery stores, supermarkets)2-17Example – Crest ToothpasteThis is what is meant by “Relationship Marketing”2-18 Relationship MarketingRelationship marketing is the creation of customer loyaltyTargets a major customer that you want to sell to now and in the futureEstablishes a long-term collaborative relationship2-19 Three Levels of Relationship MarketingTransaction selling: customers are sold to and not contacted againRelationship selling: the seller contacts customers after the purchase to determine if they are satisfied and have future needsPartnering: the seller works continually to improve its customers’ operations, sales, and profits2-20 Partnering with CustomersEncourages both the buyer and seller to share informationTwo companies work toward the same objective2-21 Consultative SellingThe process of helping the customer achieve strategic short and long-term goals through the use of the seller’s goods and/or servicesA highly interactive dialogue between a salesperson and a customerA balanced exchange of information2-22 The Role of Consultative SellingThe Long-Term AllyCreates a “win–win” situation. As the customer’s sales and profits grow, so do the salesperson’sThe ability of a salesperson to fulfill the role of long-term ally is a pivotal factor in determining whether a sales transaction is just a transaction or the beginning of a relationship2-23Avoid The Customer-Seller Relationship GapMay occur when the salesperson’s interest in the customer declinesUsually after the saleYet the customer’s interest increases after the saleThis is one reason why service after the sales is so important2-24 The Key to SuccessKnowing target customersInforming target customers of competitively superior products Guiding target customers towards good purchase decisions Following up afterward to insure that goals of both parties were met Looking ahead and anticipating the next possible benefits to the customer2-252-26Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin1. A car salesman