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69 Cards in this Set
- Front
- Back
What is sales promotion
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Short term activity to motivate buying
-Usually by lowering price or adding value |
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List some consumer sales promotion tools
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1. Coupons
2. Rebates 3. Premiums 4. Contests and sweepstakes 5. Point of purchase |
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Coupons
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Certificate that entitles consumer to immediate proce reduction when they buy
This is a declining sales promotion tool |
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Rebates
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Most consumers don't take advantage
Redemption rates are as low as 2% |
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Premiums
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An extra item offered with purchase
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Contests and sweepstakes
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Contests involve skill, sweepstakes involve luck only
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point of purchase
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Displays set up at retail locations
End aisle displays, shelf talkers, extenders |
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How many purchase decisions are made in the store
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70% - 80%
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Trade sales promotion
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Used to help push product through distribution channel
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Aspects of trade sales promotion
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- Trade allowances
- Push money - Training or store demonstrations - Free merchandise - Conventions and trade shows |
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Contests and sweepstakes
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Contests involve skill, sweepstakes involve luck only
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point of purchase
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Displays set up at retail locations
End aisle displays, shelf talkers, extenders |
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How many purchase decisions are made in the store
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70% - 80%
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Trade sales promotion
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Used to help push product through distribution channel
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Aspects of trade sales promotion
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- Trade allowances
- Push money - Training or store demonstrations - Free merchandise - Conventions and trade shows |
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Consumer sales promotion tools
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Sampling -
-Allowing consumer to try a product with no risk -Use is growing because of effectiveness -Distribution is key Jack Daniels Girls, at bars etc |
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Publicity
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Efforts to capture public attention
Includes: - press relations - product publicity |
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Managing unfavorable publicity
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Have plans in place
-Have support of top management Have good media relations Tell truth and address problem directly Johnson and Johnson dealt with tylenol issue flawlessly Work with your CEO directly on this! |
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Event sponsorship
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Ford, Wrangler sponsor PBR tour
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Issue sponsorship
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Education, health care and social program investment
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Everybody sells!
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Each of us develops communication techniques for trying to get our way in life
You are selling when you want someone to do something You use persuasion skills to persuade someone to act |
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Types of sales jobs
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- Retail selling
- Direct selling - Selling for a wholesaler - Selling for a manufacturer |
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Retail selling
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A retail salesperson sells goods or services to consumers for their personal, non-business use
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Direct selling
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Face to face sales to consumers, typically in their homes, who use the products for their non business, personal use
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Selling for a wholesaler
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-For resale
-For use in producing other goods -For use within an organization |
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Selling for a manufacturer
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-Working for the firm who manufacturers the product
-Usually one of the most prestigious jobs to hold |
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Relationship selling
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- Non adversarial
- Non manipulative - Consultive - Partnering - Problem solving - Goal: Long term relationship |
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what are the three levels of relationship marketing
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- 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 with the buyer to improve operations, sales and profits |
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Consultative sellling
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The process of helping the customer achieve strategic short and long term goals through the use of the seller's goods and or services
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What are the three goals of consultative selling
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1. Team leader: Coordinates all of he info, resources, and activities needed to support customers before, during and after the sale
2. Business consultant: Gives advice and service. Uses internal and external resources to gain an understanding of the customer's business 3. Long term ally: Creates a "win-win" situation. As the customer's sales and profits grow, so do the sales persons. |
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The customer - seller relationship gap
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-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 sale is so important |
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The key to success
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1. Knowing and satisfying target customers with competitively superior products and service
2. Marketing is the company function that defines customer targets and the best way to satisfy their needs and wants competitively and profitably 3. Marketing's main customer contacts are salespeople |
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List the 10 important steps in the customer relationship selling process
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1. Prospecting
2. Preapproach 3. Approach 4. Presentation 5. Trial close 6. Objections 7. Meet objections 8. Trial close 9. Close 10. Follow up and service |
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Prospecting
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Locating and qualifying prospective customers.
Are they the right person? Authority? Funds? |
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Preapproach
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Obtaining interview. Planning: determining sales call objective, developing customer profile, customer benefit program, and sales presentation strategies.
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Approach
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Meeting prospect and beginning customized sales presentation
Gain attention of the client |
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Presentation
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Further uncovering needs, relating product benefits to needs using demonstration, dramatization, visuals and proof statements
Find depth of needs, collect more info |
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Trial close
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Asking Prospect's opinions during and after presentation
Lead the customer along |
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Objections
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Uncover objections
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Meet objections
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Satisfactorily answering objections.
Price too high? Our product is that much better, foo |
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Close
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Bringing prospect to the logical conclusion to buy
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Follow up and service
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Serving customer after the sale
Most important! |
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Informative advertising
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Build primary demand about the product itself
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Persuasive advertising
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Build selective demand for a brand
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Comparison advertising
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Compares one brand to another
Cable and satellite Some car ads Mastercraft... |
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Sales objective advertising
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Running an ad will directly increase sales
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Communication objective advertising
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A specific message will be brought across
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Reminder advertising
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Keeps the consumers thinking about a product
For mature products |
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What are the 5 M's of advertising
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1. Mission
2. Money 3. Message 4. Media 5. Measurement |
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Mission
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Sales goals
Advertising objectives |
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Money
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Factors to consider:
Stage in PLC Market share and consumer base Competition and clutter Advertising frequency Product substitutability |
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Message
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Message generation
Message eval and selection Message execution Social responsibility review |
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Media
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Reach, frequency, impact
Major media types Specific media types Media timing Geographical media allocation |
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Measurement
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Communication impact
Sales impact |
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Reach
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# of households exposed to ad
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Frequency
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# of times a household sees the ad
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Gross rating point
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Reach X Frequency
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Newpapers:
advantages and limitations |
+: Flexibility, timeliness, good local market coverage, broad acceptance, high believability
-: Short life, poor reproduction quality, small pass along audience |
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TV:
advantages and limitations |
+: Combines sight, sound, motion, high attention, high reach, appealing to senses
-: High absolute costs, high clutter, fleeting exposure, less audience selectivity |
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Direct mail:
advantages and limitations |
+: Audience selectivity, flexibility, no ad competition within the same medium, allows personalization
-: Relative high costs, junk mail image |
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Radio:
advantages and limitations |
+: Mass use, high geographic and demographic selectivity, low costs
-: Audio only, fleeting exposure, lower attention, non standardized rates, fragmented audiences |
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Magazine:
advantages and limitations |
+: High geographic and demographic selectivity, credibility and prestige, high quality reproduction, long life, good pass along readership
-: Long ad purchase lead time, waste circulation, no guarantee of position |
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Outdoor:
advantages and limitations |
+: Flexibility, high repeat exposure, low cost, low message competition
-: Little audience selectivity, creative limitations |
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What is the most effective advertising pattern?
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Bursts!
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What are some barriers to communication?
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1. Selective perception
2. Psychological noise tendency to distort messages to assimilate what you want to believe Happy ads tend to be better. Safe car ads shouldn't be happy |
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Issues in credibility
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1. Credibility of informal sources (actors in tv ads)
2. Credibility of formal sources (Doctors in ads) 3. Credibility of spokespersons and endorsers (Michael Jordan) 4. Message credibility |
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Issues in designing persuasive communications
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1. Communications strategy
2. Media strategy 3. Message strategies How will you create your message |
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Issues in message presentation
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1. Message framing
2. One side versus two sided messages 3. Comparative advertising 4. Order effects 5. Repetition |
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Advertising appeals
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1. Fear
2. Humor 3. Abrasive ads 4. Sex 5. Audience participation |