Chapter 16 - Understanding Business PDF

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This is the summary for the materials from chapter 16 in book, including main contents and key words definition....

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Chapter 16 Using Effective Promotions 16-1 Promotion and the promotion mix - Promotion consists of all the techniques sellers use to motivate people to buy their products or services - Promotion mix – the combination of promotional tools an organization uses - Integrated marketing communication (IMC) – a technique that combines all the promotional tools into one comprehensive and unified promotional strategy 16-2 Advertising: informing, persuading, and reminding - Advertising – paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message *Television advertising - Television offers many advantages to national advertisers, but it’s expensive - Marketers are demanding better and more accurate measurements of the effectiveness of Tv advertising, and many are switching to social media as a result. *Product placement - Product placement – putting products into TV shows and movies where they will be seen - Put the products into shows and movies where audience will see them *Informercials - Informercial – a full-length TV program devoted exclusively to promoting goods or services *Online advertising - One goal of online advertising is to push potential customers to a website where they can learn more about the company and its products and the company can learn more about them - Interactive promotion – promotion process that allows marketers to go beyond a monologue, where sellers try to persuade buys to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships *Social media advertising - Social media make it possible for organizations to test ads and other promotions before bringing them to traditional media, like TV, and to learn why people like and dislike messages *Global advertising - Global advertising requires the marketer to develop a single product and promotional strategy it can implement worldwide - Promotions tailored to specific countries and regions may be more successful since each country or region has its own culture, language, and buying habits

16-3 Personal selling: providing personal attention - Personal selling – the face-to-face presentation and promotion of goods or services *Steps in the selling process 1. Prospect and qualify - Prospecting – researching potential buyers and choosing those most likely to buy - Qualifying – in the selling process, making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sale message - A prospect – a person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message 2. Preapproach - Gathering information before you approach the customer is crucial 3. Approach - “You don’t have a second chance to make a good first impression” - You want to give an impression of friendly professionalism, create rapport, build credibility, and start a business relationship 4. Make a presentation 5. Answer objections 6. Close the sale - Trial close – a step in the selling process that consists of a question or statement that moves the selling process toward the actual close 7. Follow up *The business to consumer sales process - The steps are the approach, which includes asking questions, the presentation, which includes answering questions, the close, and the follow up 16-4 Public relations: building relationships - Public relations (PR) – the management function that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance - A goof public relations program has 3 steps: + Listen to the public + Change policies and procedures + Inform people you’re responsive to their needs *Publicity: The talking arm of PR - Publicity – any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller

16-5 Sales promotion: giving buyers incentives - Sale promotion – the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.

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Sampling – a promotional tool that letting consumers have a small sample of the product for no charge

16-6 Word of mouth and other promotional tools - Word-of mouth – the promotion tool that people telling other people about products they have purchased - Viral marketing – the term now used to describe everything from paying customers to say positive things on the Internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific websites *Social networking - One of the greatest advantages of social media platforms is that they offer easier 2 ways communication between business and customers *Blogging - Businesses can attract new customers when they coordinate their social media profiles with their blogs *Podcasting - A means of disturbing multimedia digital files on the Internet for downloading to a portable media player *Email promotions - Increase brand awareness and update subscribers on various deals or promotions *Mobile marketing - Text messages Managing the promotion mix: putting it all together *Promotional strategies

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Push strategy – promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise Pull strategy – heavy advertising and sales promotions efforts are directed toward consumers so that they’ll request the products from retailers...