Professional Documents
Culture Documents
CHAPTER
IMPORTANCE OF TEAMWORK
Requires consistent, coordinated promotional effort at every stage of customer contact. Involves both in-house resources and outside vendors.
OBJECTIVES OF PROMOTION
PROVIDE INFORMATION
Goal is informing the market about the availability of a product.
INCREASE DEMAND
May increase primary demand, or desire for a particular product category. May increase selective demand, or desire for a specific brand.
STABILIZE SALES
Can help make demand more consistent throughout the year.
Personal selling, advertising, and sales promotion usually account for the bulk of a firms promotional expenditures.
PERSONAL SELLING
Oldest form of selling. A sellers promotional presentation conducted on a person-to-person basis with the buyer. More than 13 million people in U.S. have careers in personal sales.
NONPERSONAL SELLING
Advertising and product placement. Sales promotion Marketing activities other than personal selling, advertising, guerrilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness. Trade promotionincentives to encourage marketing intermediaries to sell more of certain items or product lines. Direct marketing Direct communications, other than personal sales contacts, between buyer and seller, designed to generate sales, information requests, or store or Web site visits. Public relations Communications and relationships with various publics. Publicitynonpersonal stimulation of demand unpaid placement of news about it or through a favorable presentation of it on the radio or television. Guerrilla marketing Unconventional, innovative, and low-cost marketing techniques designed to get consumers attention in unusual ways.
SPONSORSHIPS
$28 billion business worldwide. Sponsorship Relationship in which an organization provides funds or in-kind resources to an event or activity in exchange for a direct association with that event or activity. Sponsor purchases access to events audience and image associated with activity.
Sponsorship often more cost effective but usually offers less control over market coverage.
Audiences often view sponsorship more positively than advertising.
DIRECT MARKETING
Effectivefor every $1 spent, firms typically receive $11.49 in revenue. Opens large new international markets and promotes goals beyond creating product awareness. Databases are an important tool.
DIRECT MAIL
Allows narrow targeting, intensive coverage, and other benefits. Per reader cost is high and many consumer view it as junk.
CATALOGS
Catalog sales reached $160 billion in a recent year. Companies adding online catalogs to complement print catalogs.
TELEMARKETING
Most frequently used form of direct marketing. Provides a high return on expenditures, an immediate response, and the opportunity for personalized two-way conversations.
BUSINESS IMPORTANCE
Long-term increase in funds allocated to promotion indicates faith in its ability to encourage attitude changes, brand loyalty, and additional sales.
ECONOMIC IMPORTANCE
Provides employment for millions of people.
Increases units sold and allows economies of scale that mean lower prices, which make a product available to more people.