Sales Promotion Objectives
-Cost are dramatically high during intro stage, especially in Promotion. Must get past diffusion curve.
Sales Promotion Objectives: Create Awareness
Sales Promotion Objectives: Stimulate Demand
Sales Promotion Objectives: Encourage Product Trial
Sales Promotion Objectives: Identify Prospects
Sales Promotion Objectives: Retain Loyal Customers
Example: Southwest Airlines
Sales Promotion Objectives: Facilitate Reseller Support
Wholesalers could say that they are already committed to my competitor
Sales Promotion Objectives: Combat Competitive Promotional Efforts
Sales Promotion Objectives: Reduce Sales Fluctuations
Certain products fluctuate during certain parts of the year. The goal is to level out that fluctuation and have great sales throughout the year.
Promotional Mix: Personal Selling
Promotional Mix: Public Relations
Kuwait Gov paid US add firm to get the US into the conflict faster. The add company made ads that showed the bad things that the iraquis were doing, like taking babies out of incubators and let them die. The ad company Hill and Nolton was later discovered to have used false info which the kuate gov produced and that none of the stories were true. The ad campaign worked as the US and allies entered the conflict in 7 days instead of 30 days.
PR can be great or terrible. PR can change history. To what degree is the news being altered for advertising dollars?
Promotional Mix: Sales Promotion
Promotional Mix: Advertising
Advantages and Disadvantages of Advertising
Advertising is the front line for ALL tactics. He said this at least 3 times.
Different ad campaigns reach different markets.
Actual ad cost is $400,000, but breaks down to be maybe $4000 per thousand people.
Ad company showed 150 ads during a month and i only saw 5. they paid 400k a pop and I only saw 5, so how does it work? If the ad company amortizes their costs over time, the people who bought the product as a result of the add will more than equal the money spent.
Another disadvantage is that it is impossible to convey an entire message during a 30 sec tv ad. The goal is to make the 30 seconds so appealing that you call the company and start a sales call.
Average cost of a sales call to be generated is 300$
Push & Pull Promotion Strategies
Comparing Push & Pull Promotional Strategies
Push Pull- MFGR pushes product to the Wholesaler with discounts for large purchases.
Know difference between push money and pull money.
Will ask questions like- mfgr sales money is pull money or push money?
MFGR will push product down and pull money up, want push at the top and pull at the bottom so that there is a force at the top and the bottom.
Comparing Push & Pull Promotional Strategies (Different Look)
The Communication Process
There is a lot that can fall outside our control.
Coded message- use celebrity and slogan and music- would work for TV, web, magazines, certain newspapers.
Use these mediums so that the customers can easily decode the message. Hopefully the agency that produced the ad has encoded it to be able to convey the information that the company wanted to be conveyed.
Example: Alcaselzer botched add for “I can’t believe I ate the whole thing” increased Pizza sales and not product sales.
Feedback and noise are problems. If the ad isn’t “loud” enough the ad companies create an even noisier ad.
Integrated Marketing Communications
Make sure all of your Marketing says the Same Message:
1st integrate all four of Advertising, sales promos, personal selling and public relations
2nd integration- Advertising, all types of media show the same slogan, shows same message. Even the secretary at the corp headquarters answers the phone using the slogan. Want people to hear and see promo as much as possible.
Actions intended to convince individuals to purchase a good or service. A typical business will only offer a consumer promotion like a reduced price, free sample or bonus offer for a short period in order to stimulate demand for and awareness of the product being promoted.
Marketing campaign directed at wholesalers or retailers rather than at final consumers. In a trade promotion, wholesalers and/or retailers are offered special price discounts (often in addition to a trade allowance), subsidized or free display racks, or stands, gifts, or other incentives.