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1) informs

2) reminds

1) Advertising
2) PR
3) Sales Promotion
4) Personal Selling

1. Generate Leads
2. Qualify leads
3. Probe customer needs
4. Develop solutions
5. Handle objections
6. Close the sale
7. Follow up

1. Formula selling - scripted

2. Stimulus Response - ask the right question at the right time, for example: "Would you like a tie with your suit?"

3. Successive Commitment - ask a series of yes questions, making it illogical to say no to the last question.

4. Need Satisfaction - have a conversation with a customer to find their needs

1. Look for customer signals
2. Begin negotiations
3. Provide incentives
4. Trial/Presumptive close

Company tours
Sponsorship
Product Placement

Sales promotion

Trade Sales Promotion

More specifically, it is called a spiff.

Trade Sales Promotion

Push money

the manufacturer and the retailer split the cost of an ad for the manufacturer's product

to move the consumer through the AIDA concept

It is the four step process for achieving promotional goals.

The steps are:
Attention
Interest
Desire
Action

Institutional Advertising

Product Advertising

designed to enhance image

1. Corporate Identity
2. Advocacy advertising - take a stand on a social issue

1. Pioneering/Informative - educate and create buzz

2. Competitive/Comparative - focuses on features and directly compares to competitors

3. Reminder - keep brand name in front of consumer

1. Develop Goals and Objectives
2. Identify Product benefits
3. Develop and evaluate advertising appeals
4. Execute the message
5. Evaluate the campaign

1. Budget objectives - How much will be spent?
% of Sales method
Competitive Parity - match your competitor's budget
Average advertising cost: 3%

2. Message - What is to be accomplished?  AIDA!

3. Sample Advertising objective - create a realistic goal
-Educate 15% of 18-30 yr old men about benefits within next 12 months.
-MUST HAVE DEADLINE

It means: sell the products benefits, not its attributes.

Benefit - What will I achieve by using the product?  "What's in it for me?"

product's theme

emotional reason to buy

Examples:
Profit
health
love or sex
admiration
convenience
egoism

Portray information that attracts interest without distracting from the content.

Examples:
Scientific
Musical
Demonstration
humor
fantasy

Pretest:
-Are consumers likely to respond positively to the ad?

Posttest:
-Do consumers understand the ad?
-Did the ad meet its objectives/goals?

Adv: local

Dis: not selective, short life

Adv: color, informative, selective

Dis: expensive, takes a long time

Adv: local, cheap

Dis: split-attention

Adv: cheap per person

Dis: most expensive

Dis: highly regulated

Reach - number of different consumers exposed at least once in a specific period

Frequency - number of times an individual is exposed during a specific period

Audience selectivity - ability to reach a precisely defined market

Cost - commonly referred to in "Cost per contact" or "Cost per thousand" abbreviated CPM

Pull - manufacturer promotes to consumer, consumer demands from retailer...etc.

Push - Man. promotes to wholesales, wholesaler promotes to retailer, retailer promotes to consumer, consumer buys

Pull

1. Establish price goals
2. Estimate demand, cost, and profits
3. Choose a price strategy
4. Fine-tune base price

Do you want to:
-increase sales
-meet a target profit
-meet-beet a competitor

cost - all variable and fixed costs

profit - amount added above the break even cost

mark-up - amount added above the purchasing cost to cover expenses and profit (cost+profit)

keystoning - marking up prices by 100%

Incremental costing - covering all of VC and some of FC
used when you have excess capacity or no better offer

the quantity of a product that will be sold in the market at various prices for a certain period

EoD= % change in Qd/ % change in Price

Demand is price elastic if you dec Price and Demand increases more.

Psychological Price Point - price at which the majority of consumers will drop out of the market

1. income
2. tastes
3. substitutes

a system to maximize profit by adjusting prices frequently based upon short-term changes in demand and price elasticity

ex: airline tickets

Price strategy - basic, long-term philosophy about pricing

Price Skimming - firm charges  a high intro price with heavy promotion

Penetration Pricing - firm charges a low price to extend its reach

Status Quo Pricing - charges a price close to current price or close to competitor's price

Price bundling - combing two or more different products in a single package

Loss leader pricing - sell a product at near or below cost to generate traffic

Odd-even Pricing - odd=bargain, even=quality

Bait and Switch Pricing - lure customers through false or misleading price advertising, ILLEGAL

Unfair trade practices are laws the prohibit wholesales from selling below cost.

Price fixing is an agreement b/w two or more firms to set a certain price.

Predatory Pricing is setting a low price to drive competitors out of the market.

Price discrimination is charging two different customers a product for different prices. 

Defense:
Cost - added costs of serving different customer
Market conditions - vary
Competition

Food
People
Cows
Influence

an intangible task

81% for both

1. Services are intangible - makes eval. of quality difficult
2. Services are inseparable - consumer generally must be present
3. Services are perishable - cannot be produced ahead of time; production and consumption occur at the same time; you cannot inspect out defects
4. Services are heterogeneous - different each time, so you must set standards and use scripts

Reliability, responsiveness, assurance, empathy, tangibles

People, Physical evidence, and Processes

People - employees, customer, other customers (all influence quality of experience

Physical Evidence - tangible part of the service, "service scape"

Processes - activities which lead up to and are a part of the service

-emphasize service process
-build brand image

-convenience is important

-prices harder to justify to customers for many services
-use price to adjust demand to supply

-make good seem tangible
-share good performance ratings
-focus on "core" service
-use a logo that reflects service