Chapter 16 – Using Effective Promotions
16-16
lecture enhancer 16-4
FANS PROPEL THE PORTLAND
TIMBERS DOMINANCE
Even before the Timbers’ name was announced to the people
of Portland, marketers were creating a brand with the fans.
(See the complete lecture enhancer on page 16.62 of this man-
ual.)
PPT 16-24
Monitoring Ad Effectiveness
MONITORING
AD EFFECTIVENESS
16-24
PhotoCredit:BrentMoore
LO 16-2
• Dr. Pepper posts messages
on Facebook and monitors
the results from their millions
of fans.
• Richard Branson and
Tony Hsieh all tweet their
customer base to maintain
two-way communication.
PPT 16-25
Social Scammers
SOCIAL SCAMMERS
How to Protect Yourself From Schemers
Source: Kiplinger’s Personal Finance, December 2010. 16-25
PhotoCredit:PaulKlintworth
LO 16-2
1. Be wary of requests for
money transfers — even
from friends’ accounts.
2. Be wary when you use
applications. Don’t give
unnecessary information.
3. Use URL expanders to see
the full address of links on
friends’ pages.
REACHING
BEYOND
our
borders
PPT 16-26
What’s in Your
Oreo?
• To Americans, an Oreo is the same cookie
we’ve been enjoying for over 100 years.
• But Kraft has taken Oreos global which has led
to different variations.
WHAT’S in YOUR OREO?
16-26
• In China they enjoy green
tea Oreos while Argentina
has banana with dulce de
leche.
PPT 16-27
Global Advertising
GLOBAL ADVERTISING
16-27
LO 16-2
• Requires marketers to
develop a single product
and promotional strategy to
implement worldwide.
• Problems can arise in global
markets with using one
advertising campaign in all
countries – especially bad
translations.
Chapter 16 – Using Effective Promotions
16-17
ing is critical, but tricky.
4. International advertising calls for researching
THE WANTS AND NEEDS OF PEOPLE in
each country.
5. Even in the U.S., selected groups are large
enough and different enough to call for specially
designed promotions.
6. Advertising today is evolving from GLOBALISM
(one ad for everyone in the world) to REGION-
ALISM (specific ads for each country or for spe-
cific groups within a country).
learning objective 3
Illustrate the steps of the B2B and B2C selling processes.
III. PERSONAL SELLING: PROVIDING PERSON-
AL ATTENTION
A. PERSONAL SELLING is the face-to-face presenta-
tion and promotion of products and services.
1. It also involves searching out prospects and
providing follow-up service after the sale.
2. Effective selling today is more than persuading
others to buy; it is helping them SATISFY
THEIR WANTS AND NEEDS.
3. Salespeople now use TECHNOLOGY, such as
the smartphones, tablets, and laptops to help
customers and to complete the sale.
4. The benefit of personal selling is having a per-
son help you complete a transaction.
5. Companies that retain salespeople must train
Chapter 16 – Using Effective Promotions
16-18
critical thinking
exercise 16-4
ETHICS IN ADVERTISING
The American Association of Advertising Agencies is the pro-
fessional organization representing the major advertising
agencies. Its website provides guidelines for ethical behavior
in advertising. (See the complete exercise on page 16.69 of
this manual.)
critical thinking
exercise 16-5
DESIGNING A WEBSITE
A well-designed website is a powerful promotional tool. This
exercise asks students to design a basic website—developing
an overall message, developing interesting visual features, and
building a basic page hierarchy. (See the complete exercise on
page 16.70 of this manual.)
PPT 16-28
Personal Selling
• Personal Selling — The face-to-face presentation
and promotion of a product, including the
salesperson
’
s search for new prospects and follow-
up service.
PERSONAL SELLING
16-28
LO 16-3
• Salespeople need to listen to
customer needs, help reach
a solution and do everything
possible to make the
transaction as simple as
possible.
Chapter 16 – Using Effective Promotions
16-19
them to be effective, efficient, and helpful.
6. The average cost of a single sales call to a po-
tential B2B buyer is about $500.
B. STEPS IN THE SELLING PROCESS
1. CUSTOMER RELATIONSHIP MANAGEMENT
(CRM) SOFTWARE is becoming critically im-
portant to establishing long-term relationships
with customers.
a. The text uses the example of a software
salesperson.
b. The selling process for B2B and for con-
sumer products is similar.
c. In both, it is critical for the salesperson to
know the product well and know how the
product compares to those of competitors.
2. STEP 1. PROSPECT AND QUALIFY
a. PROSPECTING involves researching poten-
tial buyers and choosing those most likely to
buy.
b. In the selling process, QUALIFYING is mak-
ing sure that people have the need for a
product, the authority to buy, and the willing-
ness to listen to a sales message.
c. A PROSPECT is a person with the means to
buy a product, the authority to buy, and the
willingness to listen to a sales message.
d. The best prospects are people recommend-
ed by existing customers.
Chapter 16 – Using Effective Promotions
16-20
PPT 16-29
Steps in the Selling Process
1. Prospect and qualify
2. Pre-approach
3. Approach
4. Make a presentation
5. Answer objections
6. Close the sale
• Trial Close — A statement or question that
moves the process toward the purchase.
7. Follow up
STEPS in the SELLING PROCESS
16-29
LO 16-3
PPT 16-30
Prospecting and Qualifying in Sell-
ing
• Prospecting — Researching potential buyers and
choosing those most likely to buy.
PROSPECTING and QUALIFYING
in SELLING
16-30
LO 16-3
• Qualifying — Making sure
customers have a need for a
product, the authority to buy
and the willingness to listen
to a sales message.
• Prospect — A customer
who meets the qualifying
criteria.
Chapter 16 – Using Effective Promotions
16-21
3. STEP 2. PREAPPROACH
a. Before making a sales call, sales repre-
sentatives must do further RESEARCH to
learn as much as possible about customers
and their wants and needs.
b. All this information should be in a DATA-
BASE.
c. Gathering information before the sale takes
place is critical.
4. STEP 3. APPROACH
a. You don’t have a second chance to make a
FIRST IMPRESSION.
b. The approach should give an impression of
friendly professionalism to create rapport, to
build credibility, and to start a relationship.
5. STEP 4. MAKE PRESENTATION
a. The idea is to match the benefits of your val-
ue package to the client’s needs.
b. Software tools help the salesperson tailor
the presentation.
c. This is a good time to use TESTIMONIALS.
6. STEP 5. ANSWER OBJECTIONS
a. A salesperson should anticipate potential ob-
jections and determine proper responses.
b. Questions should be viewed as opportunities
for creating better relationships.
7. STEP 6. CLOSE SALE
a. The TRIAL CLOSE is a step in the selling
Chapter 16 – Using Effective Promotions
16-22
PPT 16-31
Buy This!
BUY THIS!
Successful Selling Strategies
16-31
LO 16-3
• Know your competition
• Understand your customer’s business
• Differentiate your product or service
• Sell to the people most likely to buy
• Build relationships
• Put the right people in the right selling spots
PPT 16-32
Whoops!
WHOOPS!
Sales Slip-Ups
16-32
LO 16-3
• Not feeling the customer’s pain
• Making money is the only goal
• Seeing sales as just a job
• Getting upset during the presentation
• Failing to properly prepare or over-preparing
• Not being yourself
• Neglecting the relationship
Chapter 16 – Using Effective Promotions
16-23
process that consists of a question or state-
ment that moves the selling process toward
the actual close.
b. The final step is to ASK FOR THE ORDER.
c. Salespeople must close many times before a
long-term relationship is established.
8. STEP 7. FOLLOW UP
a. The selling process isn’t over until the order
is approved and the customer is happy.
b. Selling goes beyond simply sales—it in-
cludes ESTABLISHING RELATIONSHIPS,
not just selling goods and services.
c. FOLLOW-UP includes handling customer
complaints, making sure that the customer’s
questions are answered, and supplying what
the customer wants.
d. Often, customer SERVICE is as important to
the sale as the product itself.
9. The SELLING PROCESS VARIES somewhat
among different goods and services, but the
general idea is the same.
a. The goal is to help the buyer buy and make
sure the buyer is satisfied after the sale.
C. THE BUSINESS-TO-CONSUMER (B2C) SALES
PROCESS
1. B2C selling differs from B2B selling.
a. In B2C SALES, the salesperson does not
have to do as much prospecting or qualify-
ing.
Chapter 16 – Using Effective Promotions
16-24
PPT 16-33
Steps in the B2C Selling Process
TEXT FIGURE 16.6
Steps in the Business-to–Consumer
(B2C) Selling Process
STEPS in the B2C
SELLING PROCESS
16-33
LO 16-3
Chapter 16 – Using Effective Promotions
16-25
b. Retail salespeople don’t usually have to go
through a preapproach step.
2. The first formal step in the B2C process is the
APPROACH.
3. Don’t say “May I help you”; instead say “What
can I help you with?”
4. After the initial approach, a salesperson then
MAKES A PRESENTATION to show customers
how the company’s products meet their needs.
5. Next, the salesperson should answer customers’
questions to help them choose the products that
are right for them.
6. In B2C selling, it is important to make a TRIAL
CLOSE, walking a fine line between being help-
ful and being pushy.
7. AFTER-SALE FOLLOW-UP is an important but
often neglected step in B2C sales.
learning objective 4
Describe the role of the public relations department, and tell how publicity fits in
that role.
IV. PUBLIC RELATIONS: BUILDING RELATION-
SHIPS
A. PUBLIC RELATIONS
1. PUBLIC RELATIONS (PR) is the management
function that evaluates public attitudes, changes
policies and procedures in response to the pub-
lic’s requests, and executes a program of action
and information to earn public understanding
Chapter 16 – Using Effective Promotions
16-26
bonus case 16-1
RETAILERS KEEP TABS ON CUS-
TOMERS WITH BEACONS
There are many steps in making sales. Now retailers track
their customers to enhance their edge. (See the complete case,
discussion questions, and suggested answers beginning on
page 16.72 of this manual.)
test
prep
PPT 16-34
Test Prep
TEST PREP
16-34
• What are the four traditional elements of the
promotion mix?
• What are the three most important advertising
media in order of dollars spent?
• What are the seven steps in the B2B selling
process? How does it differ from the B2C selling
process?
PPT 16-35
Using Public Relations in Promo-
tion
USING PUBLIC RELATIONS in
PROMOTION
16-35
LO 16-4
• Public Relations (PR) — Evaluates public attitudes,
changes policies and procedures in response to the
public, and executes a program of action and
information to earn public understanding and
acceptance.
• 3 steps of a good PR program:
1) Listen to the public
2) Change policies and procedures
3) Inform people you’re responsive to their needs
Chapter 16 – Using Effective Promotions
16-27
and acceptance.
2. A GOOD PUBLIC RELATIONS PROGRAM
HAS THREE STEPS:
a. LISTEN TO THE PUBLIC: start with good
marketing research.
b. CHANGE POLICIES AND PROCEDURES:
listen, in different forums, to what customers
want.
c. INFORM PEOPLE that you’re being respon-
sive to their needs.
3. The public relations department has responsibil-
ity for MAINTAINING CLOSE RELATIONSHIPS
with the media, community leaders, government
officials, and other stakeholders.
B. PUBLICITY: THE TALKING ARM OF PR
1. PUBLICITY is any information about an individ-
ual, product, or an organization that is distribut-
ed to the public through the media, and that’s
not paid for or controlled by the sponsor.
a. PRESS RELEASES must be carefully writ-
ten so the media will publish them.
b. Publicity works only if the media find the ma-
terial interesting or newsworthy.
2. ADVANTAGES OF PUBLICITY:
a. Publicity is FREE.
b. Publicity may reach people who wouldn’t
read an ad.
c. The greatest advantage of publicity may be
Chapter 16 – Using Effective Promotions
16-28
lecture enhancer 16-5
UNDER ARMOUR WINS OLYMPIC
PR GOLD
How do you fix a PR problem ahead of the Olympics? Have
Olympians sing the company’s praises on social media. (See
the complete lecture enhancer on page 16.62 of this manual.)
PPT 16-36
Publicity
DISADVANTAGES of PUBLICITY
16-37
LO 16-4
• No control over whether the
media will use a story or when
they may release it.
• It can be good or bad.
• Once a story has been run, it is
not likely to run again.
Chapter 16 – Using Effective Promotions
16-29
its BELIEVABILITY.
3. DISADVANTAGES OF PUBLICITY include:
a. Marketers have no control over how, when,
or if the media will use the story.
b. Media do not have to publish it.
c. The story can be altered so it’s not positive.
d. There is good publicity and there is bad pub-
licity.
e. Stories are not likely to be repeated; adver-
tising can be repeated as often as needed.
4. To see that publicity is handled well by the me-
dia, the marketer should establish a FRIENDLY
RELATIONSHIP WITH THE MEDIA and coop-
erate with them.
learning objective 5
Assess the effectiveness of various forms of sales promotion, including sampling.
V. SALES PROMOTION: GIVING BUYERS IN-
CENTIVES
A. SALES PROMOTION
1. SALES PROMOTION is the promotional tool
that stimulates consumer purchasing and dealer
interest by means of short-term activities.
a. Sales promotion techniques include dis-
plays, trade shows and exhibitions, event
sponsorships, and contests.
b. Examples of consumer sales promotions in-
clude free samples, cents-off coupons, and
prizes.
Chapter 16 – Using Effective Promotions
16-30
PPT 16-37
Disadvantages of Publicity
DISADVANTAGES of PUBLICITY
16-37
LO 16-4
• No control over whether the
media will use a story or when
they may release it.
• It can be good or bad.
• Once a story has been run, it is
not likely to run again.
PPT 16-38
Sales Promotions
• Sales Promotion — The promotional tool that
stimulates consumer purchasing and dealer interest
by means of short-term activities.
SALES PROMOTIONS
16-38
LO 16-5
• Categories of Sales
Promotions:
1. B2B Sales
Promotions
2. Consumer Sales
Promotions
PPT 16-39
Sales Promotions
TEXT FIGURE 16.7
Sales Promotion Techniques
SALES PROMOTION TECHNIQUES
16-39
LO 16-5