Communicating Customer Value: Integrated

Review: Promotional
Marketing Mix Strategies:
Communications Strategy
Communicating Customer Value

• Promotion Mix and Major Promotional Tools

• Integrated Marketing Communications
• Effective Marketing Communication
• Advertising
• Public Relations

1
Music Marketing quiz

Open link:
https://kahoot.it

https://www.facebook.com/watch/?v=700700947022039
 Principles of Marketing
LOGO
BS 931111

Promotion Part 2:
Sales Promotion, Personal
Selling and Direct Marketing

AJ. AJ.
Narissara
NarissaraPalusuk
Palusuk
Adapted
Adapted fromfrom Kotler,
Kotler, P. and
P. and Armstrong,
Armstrong, th ed.
G.15e.
G.16
Principles AJ.
of
Principles ofNarissara
Marketing.
Marketing.Pearson Palusuk
Education
Pearson Inc..
Education
 Topic Outline

❖ Sales Promotion

❖ Personal Selling

❖ Direct Marketing
LOGO
 Sales Promotion

Sales promotion refers to the short-term

incentives to encourage purchases or sales
of a product or service:

6
 Sales Promotion
Rapid Growth of Sales Promotions
❖ Product managers are under pressure to
increase current sales
❖ Companies face more competition
❖ Competing brands offer less
differentiation
❖ Advertising efficiency has declined due to
rising costs, clutter, and legal constraints
❖ Consumers have become more deal-
oriented
7
 Sales Promotion Objectives
▪ 1. Consumer promotions
Sales promotion tools used to boost short-term customer
buying and involvement or enhance long-term customer
relationships
▪ 2. Trade promotions
▪ Sales promotion tools used to persuade resellers to carry a
brand, give it shelf space, promote it in advertising, and push
it to consumers
▪ 3. Sales force promotions
Sales promotion tools used to generate business
leads, stimulate purchases, reward customers,
and motivate salespeople.
8
 Consumer Sales Promotion

Major Consumer Sales Promotion Tools

Samples Coupons Cash refunds Price packs

Point-of-
Advertising Patronage
Premiums purchase
specialties rewards
displays

Demonstrations Contests Sweepstakes Games

9
 Consumer Sales Promotion
Sales Promotion
Major Consumer Sales Promotion Tools
➢ Samples offer a trial amount of a product
➢ Coupons are certificates that give buyers a
saving when they purchase specified products
➢ Cash refunds are similar to coupons except
that the price reduction occurs after the
purchase
➢ Price packs offer consumers savings off the
regular price of a product

10
 Consumer Sales Promotion
Major Consumer Sales Promotion Tools (Cont.)

➢ Premiums are goods offered either for free or at

a low price
➢ Advertising specialties are useful articles
imprinted with the advertiser’s name, logo, or
message that are given as gifts to consumers
➢ Point-of-purchase promotions include
displays and demonstrations that take place
at the point of sales
11
 Consumer Sales Promotion
Major Consumer Sales Promotion Tools (Cont.)
➢ Contests, sweepstakes, and games give consumers
the chance to win something—such as cash, trips, or
goods—by luck or through extra effort
❖ Contests require an entry by a consumer
❖ Sweepstakes require consumers to submit their
names for a drawing
❖ Games present consumers with something that
may or may not help them win a prize
❖ Event marketing

12
Consumer Sales Promotion

15
 Trade Sales Promotion
Major Trade Sales Promotion Tools

Discount Allowance

Specialty
Free goods
advertising
16
 Sales Force Promotion
Major Sales Force Promotion Tools

Conventions and trade shows are effective to

reach many customers not reached with the
regular sales force
Sales contests are effective in motivating
salespeople or dealers to increase performance
over a given period

17
 Sales Promotion

Sales Promotion Program Development

❖ Size of the incentive

❖ Conditions for participation
❖ Promote and distribute the program
❖ Length of the program
❖ Evaluation of the program

18
LOGO
 Personal Selling

Personal selling is personal presentations by

the firm’s sales force for the purpose of
making sales and building customer
relationships including:
❖ Face-to-face communication
❖ Telephone communication
❖ Video or Web conferencing
❖ etc.
20
 Personal Selling
Personal Selling
Salespeople are an effective link between the company
and its customers to produce customer value and
company profit by:
❖ Representing the company to customers and
customers to the company
❖ Linking the company with its customers
❖ Coordinating marketing and sales
❖ Working closely with marketing
“Salespeople are one of the company’s most
productive and expensive assets.”

21
 Design sales force Sales
strategy and structure Management
Recruiting & Selecting

Training

Compensation plan

Supervising

Evaluating
22
 Sales Management
1. Design Sales Force Strategy & Structure

Territorial sales force structure

Product sales force structure

Customer sales force structure

Complex sales force structure

23
 Sales Management
Managing the Sales Force
Other Sales Force Strategies and Structure Issues
Outside salespeople call on customers in the
field
Inside salespeople conduct business from
their offices and often provide support for
the outside salespeople
•Technical sales support people
•Sales assistants
Team selling is used to service large,
complex accounts
24
 Sales Management
Managing the Sales Force
2. Recruiting and Selecting of Salespeople

❖ Careful selection and training increases

sales performance
❖ Poor selection
❖ Increases recruiting and training costs
▪ Lost sales
▪ Disrupts customer relationships

25
 Sales Management
Managing the Sales Force
3. Training
❖ Goals of training
▪ Customer knowledge
▪ Selling process
▪ Knowledge of products, company, &
competitors

26
 Sales Management
Managing the Sales Force
4. Salespeople Compensation Plan

Fixed Variable
amounts amounts

Fringe
Expenses
benefits

27
 Sales Management
Managing the Sales Force
5. Supervising and Motivating of Salespeople
❖ The goal of supervision is to
help salespeople work smart
by doing the right things in
the right ways
❖ The goal of motivation is to
encourage salespeople to
work hard, work smart and
energetically toward sales
force goals
28
 Sales Management
Managing the Sales Force
6. Evaluating of Sales Force Performance

Sales reports

Call reports

Expense
reports

29
 The Personal Selling Process
The goal of the personal selling process is to get
new customers and obtain orders from them

30
 The Personal Selling Process

Personal Selling and

Customer Relationships Management

Personal selling is transaction-oriented to

close a specific sale with a specific
customer
❖The long-term goal is to develop a mutually
profitable relationship

31
LOGO
 The New Direct
Direct Marketing
Marketing Model

Direct marketing
❖Connecting directly with carefully
targeted segments or individual
consumers, often on a
one-to-one, interactive basis.
❖An element of the promotion mix
❖ Fastest-growing form of
marketing

33
 Benefits of Direct Marketing

Benefits to Buyers
Benefit to Buyers Benefit to Sellers
- Convenience - Tool to build customer
- Ready access to many relationships
products - Low-cost, efficient, fast
- Access to comparative alternative to reach
information about markets
companies, products, and - Flexible
competitors - Access to buyers not
- Interactive and reachable through other
immediate channels
34
Customer Databases and Direct Marketing

Customer database is an organized

collection of comprehensive data
about individual customers or
prospects, including geographic,
demographic, psychographic, and
behavioral data

35
 Forms of Direct Marketing

Personal selling direct marketing (Face to Face)

Direct-mail marketing
Catalog marketing

Telephone marketing (Telemarketing)

Direct-response television marketing (DRTV)

Kiosk marketing

Online marketing

36
 Forms of Direct Marketing

Direct-mail marketing involves an offer,

announcement, reminder, or other item
to a person at a particular address
❖ Personalized
❖ Easy-to-measure results

37
 Forms of Direct Marketing
Forms of Direct Marketing
Catalog marketing involves printed and web-
based catalogs

Benefits of Web-based catalogs

• Lower cost than printed catalogs

• Unlimited amount of merchandise
• Real-time merchandising
• Interactive content
• Promotional features

38
 Forms ofDirect
Forms of DirectMarketing
Marketing

Telephone direct marketing (Telemarketing)

involves using the telephone to sell directly to
consumers and business customers
❖ Outbound telephone marketing sells
directly to consumers and businesses
❖ Inbound telephone marketing uses toll-
free numbers to receive orders from
television and print ads, direct mail, and
catalogs
39
 Forms ofDirect
Forms of DirectMarketing
Marketing
Direct-Response Television
(DRTV) marketing involves 60- to
120-second advertisements that
describe products or give
customers a toll-free number or
web site to purchase and 30-
minute infomercials such as
home shopping channels
❖ Less expensive than other forms of
promotion and easier to track results
40
 Forms ofDirect
Forms of DirectMarketing
Marketing
❖ Kiosk marketing
❖ Digital marketing/ Online
marketing
•Mobile marketing
•Podcasts
•Vodcasts
•Social media
•Interactive TV
• etc. 41
 Online
Online Marketing
Marketing
Online Marketing Domains

Business to Business to
consumer business
(B2C) (B2B)

Consumer Consumer
to consumer to business
(C2C) (C2B)

42
 Online
Online Marketing
Marketing
Setting Up an Online Presence
❖ Creating a Web site requires designing an
attractive site and developing ways to get
consumers to visit the site, remain on the site,
and return to the site

43
 Online
Online Marketing
Marketing
Setting Up an Online Presence

Types of sites;
❖ Corporate Web site
❖ Marketing Web site

44
 Online
Online Marketing
Marketing
Effective Web Sites Design
The Seven C’s

Context Content Community

Customization Communication Connection

Commerce
45
 Online Marketing
❖ Forms of online advertising
▪ Display ads
▪ Search-related ads
▪ Online classifieds

46
 Online
Online Marketing
Marketing

❖ Banners are banner-shaped ads found on a Web

site
❖ Interstitials are ads that appear between screen
changes
❖ Pop-ups are ads that suddenly appear in a new
window in front of the window being viewed
❖ Rich media ads incorporate animation,
video, sound, and interactivity

47
 Online
Online Marketing
Marketing

❖ Content sponsorships provide companies with

name exposure through the sponsorship of special
content such as news or financial information

❖ Viral marketing is the Internet version of word-

of-mouth marketing and involves the creation of a
Web site, e-mail message, or other marketing event
that customers pass along to friends

48
 Online
Online Marketing
Marketing

❖ Social Networks (web communities) allow members to

congregate online and exchange views on issues of common
interest e.g. Facebook, IG, Twitter, Tiktok, LinkedIn etc.
❖ Email has been developed and enriched messages that
include animation, interactivity, and personal messages with
streaming audio and video to compete with the cluttered
e-mail environment
- -Permission-based marketing allows users to opt in or
opt out of e-mail marketing

49
Public
PublicPolicy
Policy Issues inDirect
Issues in DirectMarketing
Marketing
A Need for Action

❖ Can Spam
❖ California Online Privacy Protection
Act (OPPA)
❖ Children’s Online Privacy Protection
Act (COPPA)
❖ TRUSTe

50
 Buddha Bless _/|\_
Wish Good Wind..Aj. Narissara PALUSUK (AJ. Baitong)