Advertising

Developing & managing the advertising program

Five Ms of advertising 1. Mission setting the advertising objectives 2. Money deciding the advertising budget 3. Message choosing the advertising message 4. Media deciding on media 5. Measurement measuring effectiveness

Specifying advertising objectives Sales goals Advertising objectives Informative advertising Persuasive advertising Reminder advertising Reinforcement advertising

Deciding the advertising budget Stages in the product life cycle Market share & consumer base Competition Advertising frequency Product substitutability

Choosing the advertising message Message generation Message evaluation & selection Message execution Social responsibility review

Deciding on media Reach Frequency Impact Target audience media habits Product characteristics Message characteristics cost

Evaluating effectiveness Communication- effect research Sales effect research

Objectives of advertising

To introduce new products To support personal selling To reach people inaccessible to salesmen To enter a new market To fight competition To enhance the goodwill To improve dealer relations To warn the public against imitation

Functions of advertising

Promotion of sales Introduction of new products Creation of good public image Mass production Research Education of public Support to press

Is advertising a social waste?

Multiplies the needs Makes the product more costly Increase in demand at the cost of another manufacturer Creates brand monopoly Every advertisement is not creative Undermines moral values Corrupt the minds of youngsters

Designing the sales force

Sales-force objectives Sales force strategy Sales force structure Sales force size Sales force compensation

Sales force objectives & strategy Prospecting Targeting Communicating Selling Servicing Information gathering Allocating

Major steps in selling

Prospecting & qualifying Preapproach Approach Presenting & demonstration Overcoming objections Closing Follow-up & maintenance

Prospecting &evaluating
Generating sales leads -people -events -published information -associations Identifying prospects Qualifying prospects

Presentation

Canned sales approach Formulated approach Need satisfaction approach

Handling objections

1.
2. 3. 4. 5. 6.

Reasons for objections No time No money Product may not suit No good experience To gain more information Habit

Ways to overcome objections

Listen Respond Clear & straight forward Anticipate the objections & counter them before it is raised Reassure the customer

Techniques of closing the sales

Silent close Direct close Assumptive close Alternate close Concession close Cautious close

Managing the sales force

Recruiting & selecting the sales force Training the sales force Supervising the sales force Motivating sales force Evaluating sales force

Improving sales force

Training in sales techniques & sales professionalism Negotiating skills Relationship building skills

Importance of salesmanship

Freedom to make adjustments Utmost precision Feedback Two-way flow of information Identify strengths & weakness of products Build & improve relationships

Sales promotion

Purpose of sales promotion -encourage customers to try a new product -attract new customers -to make customers repurchase -counter competitors promotion -reward loyal customers

Importance of sales promotion -spreads information -trigger the impulse buying behavior -greater cooperation from retailers -Recessionary phase -stimulate demand Criticism -no real incentives -shoddy products are passed-off -temporary nature of schemes

Types of sales promotion

Consumer sales promotion Dealer sales promotion

Consumer sales promotion

Price promotion Coupons Free gifts/samples Money refunds & rebates Frequent user incentives Point-of-purchase displays Installment offer Consumer contests Consumer sweepstakes Trade shows

Trade sales promotion methods

Buying allowance Buyback allowance Merchandise allowance Free merchandise Dealer loader Dealer listing Scan back allowance

Public relations
Role of public relations -identify the relevant public -influence the opinions of the public by 1. Reinforcing the favorable opinions 2. Transforming neutral opinions of the public into positive opinions 3. Changing or neutralizing hostile opinions

They perform five functions Press relations Product publicity Corporate communication Lobbying Counseling

Role of marketing PR

Assisting in the launch of new products Repositioning a mature products Building interest in a product category Influencing specific target groups Defending products that have encountered public problems Building a corporate image

Decisions in PR
Setting objectives -build awareness -build credibility -motivate sales force -cut down promotional cost Selecting the message &media vehicle Implement the plan

Major tools of PR
PR manager prepares brochures newsletters PR manager use publicity -news release -feature article -captioned photograph -press conference PR manager sponsors social events

Techniques of PR

Consumer communication Business communication Employee communication

Evaluating PR

Monitoring the amount of media coverage obtained Measuring attendance at meetings Measuring the number of inquiries or orders received

Direct marketing
Benefits Saves time Larger section of merchandise Comparative shopping Convenient buy for others Continuous relationship Personalized messages Can be timed Higher readership Strategy less visible to others

Major channels

Direct mail Fax mail E-mail Voice mail Catalogue marketing Telemarketing At home shopping channels HSN E-marketing

Permission marketing No permission Low permission Medium permission level High permission level Transaction level

Stages of direct marketing

Carpet bombing Database marketing Interactive marketing Real-time personalized marketing Life-time value marketing