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Marketing

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Lilia Duran

on 9 May 2016

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Transcript of Marketing

Marketing
Sistema de actividades ideadas
para planear productos o servicios
satisfactores de necesidades,
asignarles precios, promoverlos y
distribuirlos a los mercados meta.
La mercadotecnia se ocupa
de identificar y satisfacer necesidades humanas y
sociales de manera rentable.
Purpose
Conocer y comprender tan
bien al cliente, que el
producto o servicio
se le adecúe y se
venda por sí solo.

Marketing Concepts
Needs
Desires
Es la condición en que se percibe una carencia... se convierte en demanda cuando el poder adquisitivo respalda el deseo.
Product
Es todo aquello que se ofrece en el
mercado con el objeto de satisfacer

Bienes
Lugares
Servicio
Organizaciones
Personas
Ideas
Value
Exchange
Market
Capacidad general del
producto para satisfacer
las necesidades del cliente, según su propia evaluación.
Acto de obtener un objeto
deseado perteneciente
a otra persona ofreciéndole
algo a cambio.
Serie de todos los compradores reales y en potencia, de un producto o servicio.
Types of Marketing

- Social: Organización, conciencia social. Ej. Teleton
- Internal: Los empleados son los clientes.
- Policy
- Ecological: Greenpeace
- Relations: Una empresa con otra.
Consumer
Consumer roles

Iniciador - La primera persona que concibe o sugiere la idea de comprar un producto o servicio dado.

Influyente - La persona que ofrece opiniones o consejos que influyen en la decisión de comprar.

Resolutivo - La persona que en última instancia, toma la decisión o parte de ella de comprar o no: que comprar, como comprarlo y donde.

Comprador - Persona que efectúa la compra de hecho.

Usuario - Persona que consume o usa el producto o servicio.
Purchasing process
Reconocimiento de
una necesidad

El comprador presiente una diferencia entre su situación real e ideal. La necesidad puede ser activada por estímulos internos o externos
Búsqueda de información

Un cliente interesado puede buscar mayor cantidad de información o no hacerlo. Si el impulso del consumidor es fuerte y si tiene a la mano un producto que lo satisfaga es probable que el consumidor lo compre en ese momento. En caso contrario el consumidor quizá almacene la necesidad en la memoria o emprenda la búsqueda de información relativa a dicha necesidad.
Evaluación de alternativas

La manera en que el consumidor procesa la información para llegar a la elección de la marca. El consumidor clasifica las marcas y da forma a su intensión de comprar.
Beneficios, marca, función, utilidad.
El consumidor puede tener información de varias fuentes:

Fuentes personales
Fuentes comerciales
Fuentes públicas
Fuentes de experiencia
Decisión de compra

Adquirir la marca preferida. Pero hay dos factores que pueden intervenir entre la intensión y decisión de comprar:

Actitudes de los demás
Factores inesperados
Comportamiento post-compra

Lo que determina que un comprador quede satisfecho o insatisfecho con una compra, radica en la relación que exista entre las expectativas del consumidor y el rendimiento que perciba del producto.
Marketing Mix
Product

Cualquier cosa que sea posible ofrecer a un mercado para su atención, su adquisición o su consumo y que podría satisfacer un deseo o una necesidad.

Niveles de producto:
Fundamental: Beneficio esencial
Real: Marca, envase (caract. visibles)
Aumentado: prod. real más servicios.
Place

También conocida como posición o distribución, se refiere a las medidas que debe tomar para que el mercado meta pueda acceder al producto o servicio que se comercializa.
Price

Expresado en términos monetarios, incluye todos los costos, su margen de utilidad los cargos que se hacen por la entrega, garantía y otros.
Es la cantidad de dinero que los clientes pagarán para obtener el producto.

El precio es la única herramienta en el Marketing Mix que genera ingresos, el resto demanda egresos.
Promotion

Son todas las actividades de comunicación que tiene la finalidad de informar, persuadir, recordar al mercado meta los beneficios y la disponibilidad del producto o servicio.
These are tools marketing professionals or businesses use and control in order to influence potential customers.
The four elements of the marketing mix are interconnected.
The Product Life Cycle
Represents the stages that a product goes through during its life. There are 4 basic stages of the product life cycle. As each stage in the product life cycle is reached, marketers must adjust their product mix and their marketing strategies to ensure continued sales.
Introduction
Growth
Maturity
Decline
Periodo de crecimiento lento de las ventas, a medida que el producto ingresa al mercado. Las utilidades son inexistentes en esta etapa, debido a los considerables gastos de introducción del producto.
Periodo de rápida aceptación mercado y de crecientes utilidades.
Periodo de disminución en el crecimiento de las ventas, debido a que el producto ha logrado la aceptación de la mayoría de los compradores potenciales. las utilidades se nivelan o se disminuyen, debido a los crecientes gastos de mercadotecnia para defender al producto de la competencia.
Periodo en el cual las ventas bajan y disminuyen las utilidades.
Product Positioning
Es la forma en la cual los consumidores definen el producto en lo que concierne a sus atributos importantes.
El lugar que ocupa el producto en la mente del consumidor en relación con los productos de la competencia.


Positioning Strategies
- Positioning by price and quality
- Positioning by features and benefits
- Positioning in relation to the competition

Positioning process:

1. Identificación de las posibles ventajas competitivas.

2. Seleccionar las ventajas competitivas apropiadas. (importante, distintiva, superior, comunicable, costeable).

3. Comunicación y cumplimiento de la posición elegida.
Marketing Research
Involves the process and the methods used to gather information, analyze it, and report findings related to marketing goods and services.

Information obtained through marketing research is used to:
Identify marketing opportunities
Solve marketing problems
Implement marketing plans
Monitor marketing performance
Determine consumers attitudes and preferences
Determine market size and growth potential
Learn about competitive products
Understand how the company is perceived by the public
Why is Marketing Research important?
The information obtained from research helps businesses increase sales and profits.
Research answers questions about:

what products to produce
what price to sell the products
who will buy the products
how the products will be promoted.
Types of Marketing Research
The type of research businesses conduct depends on the problem that they are trying to solve.
- Quantitative research
answers questions that start with "how many" or "how much". This type of research usually gathers information from large numbers of people.
- Qualitative research
focuses on smaller numbers of people (usually fewer than 100) and tries to answer questions about "why" or "how". This type of resarch relies on interviews.

Most marketing research combines quantitative and qualitative methods.
Research is not limited to products; it is also conducted to answer questions about:

Attitudes and Opinion Research: How people feel about their products, services or ideas.

Market Intelligence: Information about an existing or potential market for market intelligence. It defines the size, location, and makeup of the market.

Media Research: Is used to determine the effectiveness of the various media to advertise a good or service.

Product Research: Is used to gather information about a product´s design, packaging, and usage.

Marketing Segmentation
The process of classifying people who form a given market into even smaller groups.
Let`s look at the market for jeans. A marketer might ask, "Who buys jeans? At what price? What special features do they want?" Depending for the answers to these questions, the market for jeans could be segmented:

By age: jeans for kids, teens and adults.
By price: marketers need to reach different income levels.
By desired features: tight fit, comfortable fit, newest fashion, or a unique design.
Demographics: Age, gender, income, marital status.

Geographics

Psychographics: Activities, attitudes, personality & values.

Behavioral

What is Selling?
Personal selling
Is any form of direct contact between a salesperson and a customer.
Business to business selling
May take place in a manufacturer´s or wholesaler´s showroom.
Telemarketing
Is the process of selling over the telephone.
Goals of selling
The purpose and goals of selling are to help customers make satisfying buying decisions, which create ongoing, profitable relationships between buyer and seller. This is important because repeat business is crucial to the success of any company. It is easier and less expensive to keep current customers happy than it i to generate new customers.
It describes a selling technique in which the salesperson acts as an expert consultant for his prospect, asking questions to determine the prospect's needs and then using that information to select the best product or service for those needs... ideally, the salesperson's own.
Consultative Selling
Feature-Benefit Selling
Many people believe that costumers do not buy products; rather, they buy what the products will do for them. Leather shoes are purchased for their appearance, easy care, comfort, and longevity
*Product features (basic, physical or extended)
*Customer benefits
Warm and dry. A feature-benefit chart combines product features with corresponding benefits, creating selling points. This chart shows the features and benefits for Columbia Sportswear´s Canyon Meadows Jacket.
Customer buying motives
Salespeople must know what motivates customer to buy and what decisions customers make before the final purchase.
Customers may have rational or emotional motives for making purchases.
Rational motive: is a conscious, logical reason for a purchase. Product dependability, time or monetary savings, health or safety considerations, service and quality.
Emotional motive: is a feeling experienced by a customer through association with a product. Social approval, recognition, power, love or prestige.
Customer decision making
Some customers need no help for a salespeople, and other require significant time and effort. This difference has its roots in three distinct types of decision making.

1 Extensive decision making
2 Limited decision making
3 Routine decision making


Getting ready to sell
The Pre-Approach
Is the preparation for the face to face encounter with the potential customers. In preparing to assist customers, salespeople study their products, keep abreast of industry trends and competitors, research potential customers, and develop familiarity with their company´s policies and procedures.
Product information
Salespeople can generally find all the product information they need through four main sources:
1. Direct experience
2. Written publications
3. Other people
4. Formal training.
Prospecting
Looking for a new customers.
A prospect is a potential customer.
The Sales Process
Is the process of matching customer needs and wants to the features and benefits of a product or service. The salesperson plays a vital role in this process by gathering information about the customer, then advising the customer about which products would best suit his or her needs and lead to a decision to buy.
There are seven steps to the selling process:


1. Approaching the customer

Greeting the customer face-to-face.
Have three purposes:
To begin conversation
To establish a relationship with the customer
To focus on the product.
2. Determining needs

Learning what the customer is looking for in order to decide what products to show and which product features to present first in the next step of the sale.
3. Presenting the product

Educating the customer about the product´s features and benefits.
4. Overcoming objections

Learning why the customer is reluctant to buy, providing information to remove that uncertainty, and helping the customer to make a satisfying buying decision.

5. Closing the sale

Getting the customer´s positive agreement to buy.
6. Suggestion selling

Suggesting additional merchandise or services that will save your customer money or help your customer enjoy the original purchase.
7. Relationship building

Creating a means of maintaining contact with the customer after the sale is completed.
The Selling Process: Determining Needs
In this step of the sale, your job is to uncover the customer´s problems or reasons for wanting to buy. In some instances, their motives or needs may be quite obvious, but that is not always the case. It is your job to determine those needs so you can offer alternative solutions. Discovering your customer´s motivation for buying will help you in the next step of the sale when you are helping the customer select the right product.
The Selling Process: Determining Needs
The salesperson´s focus should be to determine the customer´s needs as early in the sales process as possible.
When to determine needs
How to determine needs
There are three methods:

-Observing
-Listening
-Questioning and engaging the customer
The selling process: Product Presentation
When you sell, you analyze your customer´s needs and buying motives. Then you use that information to begin developing the parameters of your product presentation.

Your first decision in the product presentation step of the sale is what product or products to show your customer.
Then you must think about what you are going to say and how you are going to say it. This is the step of the sale where you have the opportunity to share your expertise with the customer.
Which product do you show?
What price range should you offer?
How many product should you show?
What do you say?
The selling process: Product Presentation
Tips for effective product presentation
- Display and handle the product
- Demonstrate
- Involve the customer

The selling process: Product Presentation
Make the presentation come alive
Planning is necessary for an effective product presentation to a customer. Consider how you will display and handle the merchandise. What will you do to demonstrate the product´s selling points? What sales aids will enhance your presentation? Finally, how will you involve the customer?
The selling process: Product Presentation
Displaying and handling the product
Creatively displaying the product is the first step in an eye-catching presentation.
Demonstrating the product
Demonstrating the product in use helps to build customer confidence. This is especially true if you are showing an item that requires manipulation or operation, such as a television, camera or a computer.
The selling process: Product Presentation
Using sales aids
When it is impractical to demonstrate the actual product.
Sales aids include samples, reprints of magazine and newspaper articles, audiovisual aids, models, photographs, drawings, graphs, customer testimonials, and warranty information.
A manufacturer of industrial ovens might show a video of how quickly and efficiently the oven performs.
The selling process: Product Presentation
Involving the customer
It is best to get the customer physically involved with the product as soon as possible in the sales presentation.
Holding the customer´s attention
When you involve a customer in the sale, you help the person make intelligent buying decisions.
The selling process: Product Presentation
Objections
Are concerns,hesitations, doubts or other honest reasons a customer has for not making a purchase.
Objections should be viewed as positive because they give you an opportunity to present more information to the customer.
Anticipating and planning answers to objections will help you feel confident in your responses to customers.
The selling process: Product Presentation
Plan for objections
Objections can guide you in the sales process by helping you redefine the customer´s need and determine when he customer wants more information. A customer may say, "This item is very expensive", what the person may really mean is, "Tell me why this product costs so much".

Common objections: Need, product, source, price and time.
The selling process: Product Presentation
Common objections on selling
Need: Objections related to need usually occur when the customer does not have an immediate need for the item or wants the item but does not truly need it.

A comment such as,"I really want to get these sandals, but I really don´t need another pair", is an objection based on a conflict between a need and a want.
The selling process: Product Presentation
Common objections on selling
Product: Objections based on the product itself are more common. They include concerns about things such as constructions, ease of use, quality, color, size, or style.

"I don´t buy 100 percent cotton shirts because you have to iron them" is such an objection.
The selling process: Product Presentation
Common objections on selling
Source: Objections based on source often occur because of negative past experiences with the firm or brand.

A customer might say, "The last time I placed an order with your company, I received it two weeks after the promised date"
The selling process: Product Presentation
Common objections on selling
Price: Objections based on price are more common with expensive merchandise.
You might hear statements like, "That´s more than I wanted to spend".

Time: Objections based on time reveal a hesitation to buy immediately. These objections are sometimes excuses. Customers usually have a real reason for not waiting to make a purchase on the spot.
The selling process: Product Presentation
Four-Step process for handling objections on selling.
1. Listen carefully
2. Acknowledge the objections
3. Restate the objections
4. Answer the objections
The selling process: Product Presentation
Methods of handling objections
1. Substitution: Sometimes a customer is looking for a specific brand or model of a product that you do not carry. Or maybe the product you show the customer is not to his or her liking. In any of those cases, you may want to use something called the substitution method, which involves recommending a different product that would satisfy the customer´s needs.
The selling process: Product Presentation
Methods of handling objections
2. Boomerang: An objection can be returned to the customer in the same way that a boomerang returns to the thrower.
This method brings the objection back to the customer as a selling point.

3. Question: You question the customer to learn more. While answering your inquires, the shopper may even come to realize that an objection may not be valid.
The selling process: Product Presentation
Methods of handling objections
4. Superior Point: is a technique that permits the salesperson to acknowledge objections as a valid yet sill off-set them with other features and benefits.
This method allows you to admit disadvantages in products but then present superior points to offset or compensate for them.
The selling process: Product Presentation
Methods of handling objections
5. Denial: Only when you have the proof and accurate facts.

6. Demonstration: "Seeing is believing".

7. Third Party: involves using a previous customer or another neutral person who can give a testimonial about the product.
The selling process: Closing the sale
How to close a Sale?
Closing the sale is obtaining an agreement to buy from the customer.
Recognize closing opportunities: Dramatic product presentations prove important selling points and get a customer excited about the product.

Help customers make a decision: When a customer is having difficulty making a buying decision, stop showing additional merchandise.
The selling process: Closing the sale
The selling process: Closing the sale
Help customers make a decision:You should also narrow the selection of items by removing those things that are no longer of interest to the customer. You can do this by asking, "Which of these items do you like the least?". Once you get the selection down to two, you can help a customer decide by summarizing the major features and benefits of each product.
The selling process: Closing the sale
Create an ownership mentality: use words that indicated ownership, such as you and your. When presenting selling points, say things such as, "When your children are hiking with you and the weather changes, you´ll be happy that they have waterproof shoes like these".

Do not talk too much and dont rush: Your primary interest is customer satisfaction.
The selling process: Closing the sale
Failure to close the sale
Do not assume that every sales presentation should result in a sale. Even the best salespeople can sell to only a fraction of the prospects they call on. Research suggests that perseverance is the way to succeed.
Every sales contact has the potential to become a successful sale in the future.
The selling process: Closing the sale
Failure to close the sale
Get feedback: Even a customer who does not make a purchase is still a prospect for future business. Be alert to what purchases today´s non-buyer might make in the future.

Maintain positive attitude: It is very important for the salesperson to smile and be friendly after failing to make a sale.
The selling process: Closing the sale
Failure to close the sale
Is not uncommon for a buyer to be convinced by a sales presentation but not yet already to buy.
In such a situation, it is extremely important that salesperson leave an opening for a return sales call. Return calls can increase sales costs, so consider the situation carefully before bowing out.
The selling process: Closing the sale
Failure to close the sale
Preparing for future sales calls: If your clearly sense an impending turn down, it is better to make a graceful exit, leaving the door open for a future sales call. Some businesses send questionnaires or call customers to check on how well they were treated by the sales and service staff.The results of these surveys are passed on to salespeople so they can improve their techniques.
The selling process: Closing the sale
Failure to close the sale
Success in sales: One popular misconception about selling is that salespeople are born, not made. It is true that effective salespeople possess certain behavioral characteristics, including confidence, problem-solving ability, honesty, and sincere desire to be helpful.
However, success in selling is the result of training, apprenticeship, and how to handle various situations comes with experience and hard work.
The selling process
Customer satisfaction and retention
Effective selling: Maintaining and building a clientele is crucial for a future sales. The actual sales is just the beginning of a relationship with a customer. To keep customers, it is important to make a good impression, get to know your customers, and provide excellent customer service.
The selling process
Customer satisfaction and retention
Suggestion selling: is selling additional goods or services to the customer. It involves selling customers other items that will ultimately save time and money or make the original purchase more appreciated.
Benefits the salesperson because the customer will want to do business with you again.
The selling process
Customer satisfaction and retention
Suggestion selling: benefits the customer, because he or she is more pleased with the original purchase. The firm benefits because the time and cost involved in suggestion selling is less than the costo of making the original sale.

The selling process
Customer satisfaction and retention
Rules for suggestion selling:

1. Use suggestion selling after the customer has made a commitment to buy but before payment is made or the order written.
2. Make your recommendation from the customer´s point of view and give at least one reason for your suggestion.
3. Make the suggestion definite.
4. Show the item you are suggesting.
5. Make the suggestion positive.
The selling process
Customer satisfaction and retention
Suggestion selling methods:

1. Offering related merchandise
2. Recommending larger quantities
3. Calling attention to special sales opportunities
The selling process
Maintaining and building a clientele
Making a sale is the first step in maintaining and building a clientele.
After-sales activities and the customer relationship management strategies, are two key factors in building a clientele.

The selling process
Maintaining and building a clientele
After-Sales
activities include order processing, departure, order fulfillment, follow-up, and customer service. All these activities need to be handled in such a way that it generates repeat business.
Order processing
: Bag the merchandise with care. Work quickly to bag your customer´s merchandise and complete the payment process.
Maintaining and building a clientele
Departure
: Before the customer departs or before you leave your client´s office, reassure the person of his or her wise buying choices. If an item needs special care or specific instructions, take the time to educate your customer.
Maintaining and building a clientele
Order fulfillment
: In a retail store, this is a simple process of the customer paying for merchandise and carrying it away. In e-commerce, mail order, or telemarketing sales, includes taking the order, financial processing (such as credit card information), picking the right product, packing it well, and shipping it according to the customer´s preference.
Maintaining and building a clientele
Follow up
: Includes making arrangements to follow through on all promises made to the customer during the sales process. It also includes checking on your customer´s satisfaction with his or her purchase. Here are a few follow-up ideas:
- Call the shipping department to confirm a special delivery date.
- Check to make sure that delivery occurs as promised.
- Call the customer and explain any delay.
- Phone the customer a week or two after the purchase to see if he or she is happy with the selection.
- Send a thank-you note with your business card attached.
Maintaining and building a clientele
Customer service
: Some firms have a customer service departments to handle customer inquires and complaints.

Keeping a client file
: You can use the time immediately after the sale to plan for your next encounter with the customer.
Take notes on your conversation with the customer. Keep this in a file for future reference.
Maintaining and building a clientele
Evaluate your sales efforts
: Even if your company has a formal method of reviewing your efforts, you should conduct your own evaluation. In your evaluation, consider the following:
- What were the strong points of your sales presentation?
- What did you do wrong?
- How could you have improved your performance?
- What can you do now to solidify your relationship with your customer if you made the sale?
The Selling Process
Customer Satisfaction and Retention
Customer Relationship Management (CRM)
Involves finding customers and keeping them satisfied. CRM provides companies with the means to develop and nurture customer relationships, including lead generation, sales support,customer service, and other after-sales activities.
Customer Satisfaction and Retention
Customer Relationship Management (CRM)
Technology and CRM: Technology can play a role in this endeavor. Some companies purchase software that can be customized for their business. Others may subscribe to the services of Web-based companies for similar CRM services.

The value of a good relationship is not a new idea. Marketers have long recognized that identify the needs of customers and satisfying them can be profitable. However, only recently have firms made dedicated effort to use CRM.
Customer Satisfaction and Retention
Customer Relationship Management (CRM)
Maintaining contact: To maintain sales accounts, it is important to offer solutions to problems and to stay in contact, acting as a partner or consultant for your customers.
Maintain relationships: Harley Davidson, the motorcycle manufacturer, established a club for its members, and it markets services such as motorcycle insurance and travel assistance to those members. Amazon.com, collect information about customers and then e-mailing personalized information about promotions.
Customer Satisfaction and Retention
Customer Relationship Management (CRM)
Develop customer loyalty: customer loyalty cannot be taken for granted. A company can stay close to its customers and keep them happy by having the sale be the first step in developing a relationship, not the final one.

Customer Loyalty and reward programs: Some companies also reward their regular customers through loyalty programs such as frequent flier programs.
Promotion
Promotion and promotional mix
Promotion is persuasive communication. Companies rely on promotion to inform people about their products and services. Companies also use promotional techniques to enhance their public image and reputation and persuade people that their products are valuable.
The goals of promotional activities are summarized by the phrase AIDA: first attract Attention, then build Interest and Desire, and finally ask for Action.
Promotion and promotional mix
A business use
product promotion
to convince prospects to select its products or services instead of a competitor´s brands.
Promotional activities explain the major features and benefits of the product or service, identify where it is sold, advertise sales, answer customer questions, and introduce new offerings.
Promotion and promotional mix
Institutional promotion is used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issues. As a part of its institutional promotional efforts, for example, businesses maintain Web sites to provide news, product and general information, and to answer questions. Although institutional promotions do not directly sell a product, these activities do foster a favorable image for the company.
Types of promotion in the promotional mix
The combination of advertising, selling, sales promotion, direct marketing, and public relations makes up the promotional mix. There are five basic categories in the promotion mix and each plays a vital role in promoting businesses and their products:

1. Personal selling
2. Advertising
3. Direct marketing
4. Sales promotion
5. Public relations
Types of promotion
Personal selling: requires that a company employ sales representatives who generate and maintain direct contact with prospects and customers. It is one of the costliest forms of promotion. Direct contact can take the form of personal meetings, telemarketing, email contact, and correspondence. Typically, personal selling takes place after other promotional activities.
Types of promotion
Advertising: is a form of nonpersonal promotion. Companies pay to promote ideas, goods, or services in a variety of media outlets. Advertising can be found everywhere, from magazines, newspapers, TV, and web sites to gymnasiums and city buses.
Types of promotion
Direct marketing: is a type of advertising directed to a targeted group of prospects and customer rather than to a mass audience. The two forms are: via regular mail to a home or business and electronic mail.

Types of promotion
Sales promotion: are incentives that encourage customers to buy products or services.
Try a new product, build awareness, increase purchases by current customers, or reward loyalty.
Are usually supported by advertising activities.
Types of promotion
Public relations: activities enable an organization to influence a target audience. Often, public relations campaigns try to create a favorable image for company, its products, or its policies.
One of the goals of a public relations program is to cultivate media relations with reporters who cover a specific industry.
The concept of promotional mix
To reach its promotional goals, an organization develops an effective promotional mix (a combination of strategies and a cost-effective allocation of resources) most businesses use more than one type of promotion to achieve their promotional goals. How do companies decide which mix will be most effective?
A business establishes a promotional mix by following a series of steps that range from identifying the target market to measuring the results.
The concept of promotional mix
The strategies of promotional mix are designed to complement one another. Advertising and direct marketing create awareness of a business´s product, while public relations help cultivate a favorable image and brand recognition. Sales promotional activities stimulate sales, reinforce advertising, and support selling efforts. Finally, personal selling builds on all of these previous effort by complementing the sale.
Trade promotions: are sales promotion activities designed to get support for a product from manufacturers, wholesalers, and retailers. More money is actually spent on promoting to businesses than to consumers.

-Promotional Allowances.
-Cooperative Advertising.
-Slotting Allowances.
-Sales Force Promotion.
-Trade Shows and Conventions.


Sales Promotion
Sales Promotion
Consumer promotions: are sales strategies that encourage customers and prospects to buy a product or service. Support advertising, personal selling and public relations efforts.

-Coupons.
-Premiums.
-Deals.
-Incentives.
-Product Samples
-Sponsorship.
-Promotional Tie-Ins, Cross-Promotion, Cross-Selling.

Sales Promotion
Customer Promotions:

-Product Placement.
-Loyalty Marketing Programs
-Online Loyalty Marketing.
-Point of Purchase Displays.
Visual Merchandising and Display
Visual Merchandising encompasses all of the physical elements and merchandisers use to project an image to customers. Promotes interest in merchandise or services, encourages purchasing, and reinforces customer satisfaction.
Display is a much narrower concept, and makes up only one element of visual merchandising. Refers to the visual and artistic aspects of presenting a product to a target group of customers.
Visual Merchandising, by contrast, encompasses the visual and artistic aspects of the entire business environment.
Visual Merchandising and Display
One goal of visual merchandising is to create a positive shopping experience that will compel customers to return. Merchandisers consider four elements key to achieving this goal:
1. Storefront: The exterior of a business, encompasses a store´s sign or logo, marquee, banners, awnings, windows, and the exterior design, ambiance, and landscaping. The convenient location.
2. Store Layout: The ways that stores use floor space to facilitate and promote sales and serve customers.
A typical store layout divides a store in: Selling space, Storage space, Personnel space and Customer space.
3. Store Interior: The selection of floor and wall coverings, lighting, colors, store fixtures, interior signage, and graphics powerfully impact the customer´s shopping experience and their image of the store.
4. Interior Displays:
Visual Merchandising and Display
... Merchandisers consider four elements key to achieving this goal: to create a positive shopping experience that will compel customers to return:
Architectural displays: Consist of model rooms that allow customers to see how merchandise might look in their homes.
Types of Interior Displays
Types of Interior Displays
Store Decorations: Are displays that often coincide with seasons or holidays. Banners, signs, props, and similar items are used to create the appropriate atmosphere.
Types of Interior Displays
Open Displays: Allow customers to handle and examine merchandise without the help of a salesperson. Tables and shelves for groceries or counter top and shelf displays for cosmetics are examples
Types of Interior Displays
Closed displays: Allow customers to see but not handle merchandise. They are typical display in places like jewelry stores, where security or breakage is a concern.
Types of Interior Displays
Point of purchase displays: Are designed to promote impulse purchases. They are usually more effective at supporting new products than established ones.
Visual Merchandising and Display
Artistic Design

Display design and preparation: In the retail environment, a display has about four six seconds to attract a customer´s attention, create a desire, and sell a product. This limited time frame means that a business must target its displays carefully to appeal to its customers.
When planning and preparing displays, retailers and merchandisers must carefully consider many differences in cultural and ethnic perceptions among their target markets.
Display design and preparation
Step 1:
Selecting Merchandise for Display.
The merchandise selected will determine the theme and all other supporting elements of the display. Display merchandise must also be visually appealing as well as contemporary to attract customers. Must be appropriate for the season.
Step 2:
Selecting the Display. The merchandise selected largely determines the type of display to equip. There are 4 basic kinds of displays: those that feature just one item, similar products, related products, and aprons.
Display design and preparation
Step 3:
Choosing a Setting. Displays can be presented in a number of different settings. The setting a business selects will depend largely on the image it wants to project.

- Realistic setting
- Semirealistic setting
- Abstract setting
Step 4:
Manipulating Artistic Elements. Include line, color, shape, direction, texture, proportion, motion and lighting. These principles of a display subtly influence your perception.
Display design and preparation
Step 5:
Evaluating completed displays. Do displays enhance the store´s image, appeal to customers, and promote the product in the best possible way? Was a theme creatively applied? Were the color and signage appropriate? Was the result pleasing?
These are just some of the factors that visual merchandisers consider when evaluating the effectiveness of displays.
Display design and preparation
Display Maintenance: Once display has been constructed, it needs to be maintained and eventually dismantled. Individual Businesses have different policies regarding the duration of displays. Most businesses check displays daily for damage, displacements, or missing items caused by customers.
Poor maintenance can create a negative image.
Advertising
Advertising is everywhere (TV, radio, magazines, newspapers, stores, the World Wide Web, billboards, theaters, sports arenas, and even on highway road signs). The average person is exposed to more than 2,000 advertisements every week.
Promotional and Institutional Advertising
Promotional advertising
is when the goal is to increase sales. The targets of promotional advertising are consumers or business to business customers.
Can introduce a new business, change a company image, promote a new product, advertise an existing one, or encourage the use of a particular service.
Is an effective way to support direct selling efforts, sales promotion activities, visual merchandising, and display efforts.
Institutional advertising
tries to create a favorable image for a company and foster goodwill in the marketplace. There are many institutional advertising techniques used today. Connecting its name to a worthy cause helps a company make a good impression on customers.
Promotional and Institutional Advertising
Types of Media
Media are the agencies, means, or instruments used to convey advertising messages to the public.
Types of Media
Print Media:
Includes advertising in newspapers, magazines, direct mail, signs, and billboards. This is one of the oldest and most effective type of advertising.
Broadcast Media:
Encompass radio and TV.
Online Advertising:
Is a form of advertising that uses e-mail, social media, web sites.
Specialty Media:
Hats, calendars, pens and pencils. Specialty items carry identity of the business sponsoring them and an advertising message.
Media Planning and Selection
Is the process of selecting the advertising media and deciding the time or space in which the ads should appear to accomplish a marketing objective.
To select and compare different types of media, companies use media-planning software, media-cost data, and audience information.

To establish the media plan and select the right medium to use, advertisers address three basic questions:

1. Can the medium present the product and the appropriate business image?
2. Can the desired customers be targeted with the medium?
3. Will the medium get the desired response rate?
Media Measurement and Rates
Media planners must concern themselves with the correct medium to use and its costs as well as how to measure overall advertising effectiveness.
Media Measurement
To understand media measurement, you need to become familiar with several key terms. First, the number of homes or people exposed to an ad is called the
audience.

A single exposure to an advertising message is called an
impression.
Frequency
is the number of times an audience sees or hears an advertisement.
Cost per thousand (CPM)
is the media cost of exposing 1,000 readers or viewers to an advertising impression.
Media Rates
To each customers, advertising uses a set format that is defined in terms of time (a 30 second television commercial) or space (a half page newspaper ad).
Media rates
Media costs vary greatly, not just with type of media but also with geographical location and audience.

Newspaper rates are depending the size, the color and the position.

Magazine rates are based on circulation, the type of readership, and production techniques.

Online rates vary based on the volume of monthly views.

Radio rates are depending the duration, the geographical area, the time.

Television rates vary the time of day, the duration of the spot.
Distribution
How do you get somebody to buy your product? By marketing it! Now the question is how does that product get to your customers? This is the place decision, one of the four Ps of the Marketing Mix.

To make a place decision, marketers must decide on their channel of distribution.

Channel of distribution
Is the path a product takes from its producer or manufacturer to the final user. When the product is purchased for use in a business, the final user is classified as an industrial user. When the product is purchased for personal use, the final user is classified as a consumer.
Distribution: Channel Members
Businesses involved in sales transactions that move products from the manufacturer to the final user are called intermediaries or middlemen. Intermediaries reduce the number of contacts required to reach the final user of the product.
Wholesalers: Businesses that buy large quantities of goods from manufacturers, store the goods, and then resell them to other business. Their customers are retailers.
Wholesalers may be called distributors.
Distribution: Channel Members
Retailers: sell goods to the final consumer for personal use.
Agents: unlike wholesalers and retailers, agents do not own the goods they sell. Agents act as intermediaries.
Direct and Indirect Channels of Distribution
Direct Distribution occurs when the product sells goods or services directly to the customer, with no intermediaries.
Indirect distribution involves one or more intermediaries.
Distribution Planing
Involves decisions about a product´s physical movement and transfer of ownership from producer to consumer.
Multiple Channels:
A producer uses multiple channel when its product fits the needs of both industrial and consumer markets.
Distribution Planning
Control Versus Costs:
All manufacturers and producers must weight the control they want to keep over the distribution of their products against costs and profitability.
Distribution Planning
Distribution Intensity: There are three levels of this, exclusive, selective an intensive.
Exclusive distribution
involves protected territories for distribution of a product in a given geographic area. Franchised operations are examples of this.
Selective distribution
means that a limited number of outlets in a given geographic area are used to sell the product.
Intensive distribution
involves the use of all suitable outlets to sell a product.
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