Marketing 300- ch. 13

Communication between a buyer and seller to influence attitude and behavior.

1) Personal Selling
2) Mass Selling
- Advertising
- P.R.
3) Sales Promotion

Other activities aside from advertising, publicity or personal selling. Aimed at customers, middlemen, and employees, produces immediate results. Use during maturity.

a. Aimed at Customers- coupons, samples, contests.

b. Aimed at Middlemen- allowances, price deals, gifts

c. Aimed at employees- Bonuses, raises, contests, company meetings at resorts

We need managers (specialists) to develop and implement the detailed
plans for the promotional blend. They must weigh the pros and cons of each method and devise and effective blend of each strategy. They typically do not work well as partners.

1) Sales managers- Use personal selling, builds a good distribution channel and implements place policies. May also act as the other marketing functions in smaller firms

2) Advertising Managers- Mass selling effort, choose the right media and develop ads. May handle publicity as well, or it could be outsourced to a PR firm.

3) Sales Promotion Managers- Sales promotion effort, may be handled by advertising or sales departments. Could be left to be handled by individual brand managers as well, many firms use both in house and out of house resources.

Source trying to reach a receiver with a message, customers evaluate
the source and the message for trust worthiness. Personal selling is advantageous in this realm since you get an immediate response from the consumer.

a. Encoding- the source deciding what its going to say, translating it into words or symbols. The advertisement itself, example Sham WOW TV ad

b. Decoding- The receiver translating the message
- Can be tricky as words/ symbols can mean different things between two groups
- May be even harder for international advertising
- Most effective when we have a common frame of reference

c. Channel- The carrier of the message
- Ex) Salesperson’s voice, TV, print

- Going only for people in your target. For example, say you are selling a Bass Boat. Great design for them.

Instead of putting an ad on TV, maybe instead you should send emails out to people who have competed in bass fishing tourneys.

Innovators

Early Adopters

Early Majority

Late Majority

Laggards/Non-adopters

Push strategy:
• Pushing a product through a channel means using normal promotion effort to help sell the whole marketing mix to possible channel members.
o This approach emphasizes the importance of securing the wholehearted cooperation of channel members to promote the product in the channel to the final user.
o Producers usually take on much of the responsibility for the pushing effort, but wholesalers handle at least some of the promotion to retailers, and retailers handle some of the promotion to their local markets.

Pull strategy:
• Pulling means getting customers to ask middlemen for the product.
o Customer demand pulls the product through the channel.
o If a middleman won‘t work with a producer, then a highly aggressive promotion to final consumers like – coupons or samples – is used to temporarily bypass the middlemen.
o If the promotion works, then middlemen are forced to carry the product to satisfy customer requests.
o This is a risky approach because customers may loose interest by the time reluctant middlemen come around.

1) Informing- must inform customers of your products existence, Introduction and
Growth stages
2) Persuading- Develop favorable attitudes, demonstrate superiority, growth and
maturity stages
3) Reminding- Remind customers of their positive experiences with the product,
maturity, straight re-buy decisions

Remember AIDA model:
Attention,
Interest,
Desire,
Action

Basing the budget on the job to be done. Determine which promotions are most important and which are most economical and effective.
- Use detailed plans, not historical patterns
- Eliminates budget fights
- Promotes cooperation