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1、copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved. copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved. promotion and pricing strategies copyright 2005 by south-western, a division of thomson learning, inc. all rights rese
2、rved.14-3 1.discuss how integrated marketing communications relates to a firms promotional strategy. 2.explain the concept of a promotional mix and outline the objectives of promotion. 3.summarize the different types of advertising and advertising media. 4.describe the role of sales promotion, perso
3、nal selling, and public relations in promotional strategy. 5.identify the profitabilitynfluence the selection of a promotional mix. 6.discuss the major ethical issues involved in promotion. 7.outline the different types of pricing objectives and discuss how firms set prices in the marketplace. 8.sum
4、marize the four alternative pricing strategies. 9.discuss consumer perceptions of price. copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-4 n promotioncommunication link between buyer and seller that performs the function of informing, persuading, and infl
5、uencing a purchase decision. focusing on primary demand focusing on selective demand copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-5 n coordination of all promotional activities media advertising, direct mail, personal selling, sales promotion, and publ
6、ic relations to produce a unified customer-focused message. focuses on customer needs to create a unified promotional message firms need a broad view of promotion to implement imc copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-6 n promotional mixcombinat
7、ion of personal and nonpersonal selling techniques designed to achieve promotional objectives. n personal sellinginterpersonal promotional process involving a sellers face-to-face presentation to a prospective buyer. n nonpersonal sellingconsists of advertising, sales promotion, direct marketing, an
8、d public relations copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-7 n comparing the components of the promotional mix copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-8 n objectives of promotional strategy prov
9、iding information differentiating a product increasing sales stabilizing sales accentuating the products value copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-9 n five major promotional objectives copyright 2005 by south-western, a division of thomson lea
10、rning, inc. all rights reserved.14-10 n objectives of promotional strategy providing information wmajor portion of u.s. advertising is information-oriented differentiating a product wpositioning: establishing a place in the minds of customers by communicating meaningful distinctions about the attrib
11、utes, price, quality, or use of a good or service copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-11 n objectives of promotional strategy increasing sales wmost common objective of a promotional strategy stabilizing sales wsales contests often used during
12、 slack periods wsales promotion materials often distributed to customers to stimulate sales during off-seasons copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-12 n objectives of promotional strategy accentuating the products value wpromotional strategies
13、can enhance product values by explaining often unrecognized ownership benefits copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-13 n promotional planning increasing complexity and sophistication of marketing communications requires careful planning to coor
14、dinate imc strategies product placement guerrilla marketing copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-14 n advertisingpaid nonpersonal communication delivered through various media and designed to inform, persuade, or remind members of a particular
15、audience. copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-15 n the 15 largest advertisers in the united states copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-16 n types of advertising product advertisingconsis
16、ts of messages designed to sell a particular good or service institutional advertisinginvolves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities copyright 2005 by south-western, a division of thomson learning, inc. all r
17、ights reserved.14-17 n advocacy advertising (cause advertising): promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-18 n advertising and the prod
18、uct cycle product and institutional advertising fall into one of three categories, based on whether the ads intend to inform, persuade, or remind informative advertisingused to build initial demand for a product in the introductory phase of the product life cycle copyright 2005 by south-western, a d
19、ivision of thomson learning, inc. all rights reserved.14-19 n advertising and the product cycle persuasive advertisingattempts to improve the competitive status of a product, institution, or concept, usually in the growth and maturity stages of the product life cycle wcomparative advertisingform of
20、persuasive product advertising that compares products directly with their competitors copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-20 n advertising and the product cycle reminder-oriented advertisingoften appears in the late maturity or decline stages
21、of the product life cycle to maintain awareness of the importance and usefulness of a product, concept, or institution copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-21 n advertising media must choose how to allocate advertising budget all media offer ad
22、vantages and disadvantages must consider cost and which media is best suited for communication copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-22 n advertising media copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved
23、.14-23 n advertising media newspaper wcontinue to dominate local advertising wads easily tailored for local tastes and preferences wcan coordinate newspaper messages with other promotional efforts wdisadvantage: relatively short life span copyright 2005 by south-western, a division of thomson learni
24、ng, inc. all rights reserved.14-24 n advertising media television wamericas leading national advertising medium wan expensive advertising medium wprice for a 30-second ad during weeknight prime time on network television generally ranges from $100,000 to more than $500,000 copyright 2005 by south-we
25、stern, a division of thomson learning, inc. all rights reserved.14-25 n advertising media radio waverage u.s. household owns five radios wcaptive audience of listeners as they commute to and from work win major markets, many stations serve different demographic groups with targeted programming copyr
26、ight 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-26 n advertising media magazines wincludes consumer publications and trade journals wcan often customize their publications and target advertising messages to different regions of the country wa natural choice fo
27、r targeted advertising copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-27 n advertising media direct mail waverage american household receives about 550 pieces of direct mail each year, including 100 catalogs we-mail another option wmust overcome junk-mai
28、l and spam classification copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-28 n advertising media outdoor advertising wjust over 2 percent of total advertising spending wshare is growing wmajority of spending is for billboards wother types include: signs i
29、n transit stations, stores, airports, and sports stadiums wdisadvantages include: brief messages are required mounting concern for aesthetic and environmental issues copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-29 n advertising media online and interac
30、tive advertising wrange from web sites and cds to information kiosks wcurrently commands only 3 percent of media spending, but is the fastest- growing media segment copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-30 n advertising media sponsorshipinvolves
31、 providing funds for a sporting or cultural event in exchange for a direct association with the event sports sponsorships attract two-thirds of total sponsorship dollars primary benefits: exposure to the events audience and association with the image of the activity copyright 2005 by south-western,
32、a division of thomson learning, inc. all rights reserved.14-31 n advertising media other media options winfomercials: 30-minute programs that resemble regular tv programs, but are devoted to selling goods or services wother media options include: ads in movie theaters ads on airline movie screens pr
33、inted programs, subway tickets turnpike toll receipts automated teller machines copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-32 n sales promotionnonpersonal marketing activities other than advertising, personal selling and public relations that stimula
34、te consumer purchasing and dealer effectiveness. potential advantages: wshort-term increased sales wincreased brand equity wenhanced customer relationships copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-33 n consumer-oriented promotions goals of a consum
35、er-oriented sales promotion include: wgetting new and existing customers to try or buy products wencouraging repeat purchases by rewarding current users wincreasing sales of complementary products wboosting impulse purchases copyright 2005 by south-western, a division of thomson learning, inc. all r
36、ights reserved.14-34 n spending on consumer-oriented promotions copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-35 n consumer-oriented promotions premiumsitems given free or at a reduced price with the purchase of another product. coupons offer small pric
37、e discounts rebates offer cash back to consumers samplea gift of a product distributed by mail, door-to-door, in a demonstration, or inside packages of another product copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-36 n consumer-oriented promotions games
38、, contests, and sweepstakes woffering cash, merchandise or travel as prizes to participating winners woften used to introduce new goods and services and to attract additional customers wcourt rulings and legal restrictions have limited the use of contests copyright 2005 by south-western, a division
39、of thomson learning, inc. all rights reserved.14-37 n consumer-oriented promotions promotional products (specialty advertising) wbecause these specialty advertising products are useful, people tend to keep and use them wgives advertisers repeated exposure woriginally designed to identify and create
40、goodwill for advertisers wnow generates sales leads and develops traffic for stores and trade show exhibitors. copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-38 n trade-oriented promotions trade promotionsales promotion geared to marketing intermediaries
41、 used to encourage retailers to: wstock new products wcontinue carrying existing ones wpromote products effectively to consumers. copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-39 n trade-oriented promotions point-of-purchase (pop) advertising displays o
42、r demonstrations that promote products when and where consumers buy them wtakes advantage of many shoppers tendencies to make purchase decisions in the store trade showspromote goods or services to intermediaries copyright 2005 by south-western, a division of thomson learning, inc. all rights reserv
43、ed.14-40 n personal sellinginterpersonal promotional process involving a sellers face-to-face presentation to a prospective buyer. used most often when: customers are relatively few in number and geographically concentrated product is technically complex, involves trade-ins, and requires special han
44、dling product is high in price product moves through direct-distribution channels copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-41 n sales tasks order processingselling, mostly at the wholesale and retail levels, that involves identifying customer needs
45、, pointing them out to customers, and completing orders creative sellingpersonal selling involving situations in which a considerable degree of analytical decision making on the buyers part results in the need for skillful proposals of solutions for the customers needs copyright 2005 by south-wester
46、n, a division of thomson learning, inc. all rights reserved.14-42 n sales tasks missionary sellingindirect form of selling in which specialized salespeople promote goodwill among indirect customers, often by assisting customers in product use copyright 2005 by south-western, a division of thomson le
47、arning, inc. all rights reserved.14-43 n the sales process seven steps in the sales process copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-44 n the sales process prospecting, qualifying, and approaching wprospecting involves identifying potential custome
48、rs wqualifying involves identifying potential customers who have the financial ability and authority to buy. wbefore making the initial contact: careful preparations are made available data about a prospective customer and other pertinent information is analyzed copyright 2005 by south-western, a di
49、vision of thomson learning, inc. all rights reserved.14-45 n the sales process presentation and demonstration winvolves communicating promotional messages wmajor features of the product, highlights of the advantages, and examples of satisfied consumers are typically presented winvolves the prospect
50、in the sales presentation wreinforces the message that the salesperson has been communicating copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-46 n the sales process handling objections wallows sales personnel to remove obstacles and complete the sale wcan
51、 become a positive part of the sales process wallows the salesperson to present additional information copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-47 n the sales process closing wcritical point in a selling relationship the time at which the salespers
52、on actually asks the prospect to buy wif the presentation effectively matches product features to customer needs, the closing should be a natural conclusion. copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-48 n the sales process follow-up wsalespersons ac
53、tions after the sale may well determine whether the customer will make another purchase wbuilding a long-term relationship wby calling soon after a purchase, the salesperson provides psychological reinforcement for the customers decision to buy walso gives the seller a chance to correct any problems
54、 copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-49 n recent trends in personal selling telemarketing woutbound telemarketingwhen a sales representative calls you at your place of business winbound telemarketingwhen the customer calls a toll-free phone nu
55、mber to get information or place an order. copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-50 n recent trends in personal selling relationship sellingwhen a salesperson builds a mutually beneficial relationship with a customer through regular contacts ove
56、r an extended period consultative sellingmeeting customers needs by listening to them, understanding and caring about their problems, paying attention to details, suggesting solutions, and following through after the sale copyright 2005 by south-western, a division of thomson learning, inc. all righ
57、ts reserved.14-51 n recent trends in personal selling team sellingjoins salespeople with specialists from other functional areas of the firm to complete the selling process sales force automation (sfa) incorporates a broad range of tools, from e- mail, telecommunications devices like pagers and cell
58、 phones, and laptop computers to increasingly sophisticated software systems that automate the sales process copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-52 n public relationsorganizations communication and relationships with its various audiences. n p
59、ublicitystimulation of demand for a good, service, place, idea, person, or organization by disseminating news or obtaining favorable unpaid media presentations. copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-53 n selecting a promotional mix guidelines fo
60、r allocating promotional efforts and expenditures among personal selling and advertising: wwhat is your target market? wwhat is the value of the product? wwhat time frame is involved? copyright 2005 by south-western, a division of thomson learning, inc. all rights reserved.14-54 n pushing and pullin
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