EOM - Unit 4
EOM - Unit 4
PROMOTION
Promotion Mix
(Marketing Communications Mix)
• The specific blend of promotion tools (advertising,
public relations, personal selling, sales promotion,
and direct marketing tools) that the company uses to
convincingly communicate customer value and
build customer relationships
Advertising
• Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified
sponsor via
– print media (newspapers and magazines),
– broadcast media (radio and television),
– network media (telephone, cable, satellite, wireless),
– electronic media (audiotape, videotape, videodisk,
CD-ROM, Web page),
– mobile media, (advertising via mobile (wireless)
phones or other mobile devices),
– display media (billboards, signs, posters).
Sales promotion
• Short-term incentives to encourage the purchase or
sale of a product or a service.
– consumer promotions
– trade promotions
– business and sales force promotions
Suppose the company estimates it has 1,000 A accounts and 2,000 B accounts.
A accounts require 36 calls a year, and B accounts require 12, so the company
needs a sales force that can make 60,000 sales calls (36,000 + 24,000) a year.
If the average full-time rep can make 1,000 calls a year, the company needs 60
reps.
5) Sales Force Compensation
• Fixed amount - salary
• Variable amount - commissions, bonus, or profit sharing
• Expense allowances - costs of travel
• Benefits - paid vacations, sickness or accident benefits,
pensions, and health and life insurance
Managing the Sales Force
1) Recruiting and Selecting
Representatives
• One survey revealed that the top 27% of the sales force
brought in more than 52% of the sales.
• It’s a great waste to hire the wrong people.
• The average annual turnover rate of sales reps for all
industries is almost 20%.
• Sales force turnover leads to lost sales, the expense of
finding and training replacements, and often pressure on
existing salespeople to pick up the slack.
2) Training Sales Representatives
• It is convenient.
• Deception and fraud: Some direct marketers design mailers and write copy
intended to mislead or exaggerate product size, performance claims, or the
―retail price.‖ The Federal Trade Commission receives thousands of complaints
each year about fraudulent investment scams and phony charities.
• Invasion of privacy: It seems that almost every time consumers order products
by mail or telephone, apply for a credit card, or take out a magazine
subscription, their names, addresses, and purchasing behavior may be added
to several company databases. Critics worry that marketers may know too
much about consumers’ lives and that they may use this knowledge to take
unfair advantage.
Public Relation / Publicity
Public Relation / Publicity
• Public relations (PR) includes a variety of programs to
promote or protect a company’s image or individual
products and handling or heading off unfavorable rumors,
stories, and events.
• Establishing Objectives
• Evaluating Results
Sponsorship or Events – Objectives
1. To identify with a particular target market: Customers
can be targeted geographically, demographically,
psychographically, or behaviorally according to events.
2. To increase salience of company or product name:
Sponsorship offers sustained exposure for a brand, a
necessary condition for reinforcing brand salience.
3. To create or reinforce key brand image associations:
Events themselves have associations that help to create or
reinforce brand associations.
Sponsorship or Events – Objectives
4. To enhance corporate image: Sponsorship can improve
perceptions that the company is likable and prestigious.
5. To create experiences and evoke feelings: The feelings
engendered by an exciting or rewarding event may indirectly
link to the brand.
6. To express commitment to the community or on social issues:
Cause-related marketing sponsors nonprofit organizations and
charities.
Sponsorship or Events Objectives
7. To entertain key clients or reward key employees: Many
events include lavish hospitality tents and other special
services or activities only for sponsors and their guests.