© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

PowerPoint Presentation by Charlie Cook, The University of West Alabama

Promotional PlanningPromotional Planning

PART 4

Focusing on the Customer:

Marketing Growth Strategies

PART 4

Focusing on the Customer:

Marketing Growth Strategies

17–6

Promotional Mix

A blend of nonpersonal, personal, and special forms for communication techniques aimed at a target market over time

• Makeup of the mix is determined by:

�Geographical nature of target market

�Size of promotional budget

�Product characteristics

17–8

Promotional Messages

Put the “right message”, in front of the “right person” at the “right time”2 Types of messages (simplified)

“We Exist” (give them a “WHY”) or “Buy Now” (give them a “NOW”)

TASK TIMING FREQUENCY MESSAGE $ COST

INC. Magazine

Spring Monthly –2 months

“We Exist” 2,500/mth

LA Times Summer Weekly (Friday 4 weeks)

“Buy Now” Summer Promo

1,200/week

Content marketing (social media, Blogs)

Year round

Four times a week

“We Exist” AND

“Buy Now” (promo items)

1,500/week

Etc.

17–10

Gantt Chart for Promotion

Shows time layout with tasks listed -

helpful to determine coverage over time and

consistency of message

Download from my web page (in MS Excel) – Go to “Entrepreneurship Resources”

http://instruction2.mtsac.edu/rjagodka/Spreadsheets/free-gantt-chart-template.xls

Content Marketing

17–11

Gantt Chart – Visually Shift

Before analysis: Go FROM:

After analysis: Change TO:

Content Marketing

Content Marketing

17–13

Exhibit 17.2 Four-Step Method for Determining a Promotional Budget

17–14

Proceed to

develop

promotion at

WTDJ level

Comparing Alternative Promotion Expense Estimates

Compute WTDJ

Is WTDJ equal to

or less than others?

Compute average of

WTDJ, APS, WCS, and ACS

Compare WCS with

computed average

Is WCS equal to or

greater than average?

Proceed to

develop

promotion at

average level

Seek additional

funds to

supplement

promotion

YES

NO

NOYES

Key Terms:

WTDJ: What it will take to do the job

APS: A percentage of sales

WCS: What can be spared

ACS: As much as the competition spends

START

17–24

Compensation for Salespeople

• Nonfinancial Rewards

� Personal recognition of employees by the firm

� Plaques and “Employee of the Month” awards

� Providing “perks” to superior performers.

� Personal satisfaction drawn by salespersons from doing their work well.

17–25

Compensating Salespeople

• Commissions

� Compensation paid as percentage of

sales productivity.

� Strong sales motivator

• Straight salary

� Compensation paid regardless of sales made.

• Combination of commissions and salary

� Balance of two compensation forms is adjusted to provide an increasing proportion of commission as salesperson gains experience. - Most attractive for new salesperson

17–26

1. How to Promote a restaurant in tough times?

Short FILM

2. How to Get Customers With NO Ads? FILM

2. Promote your focus

3. FREE stuff

� Do you EXPECT free food at Costco?

� Magnets on refrigerator, T-shirts

“Advertising That Works”

Creative Advertising - BAGS

17–34

Creative Advertising

17–36

Creative Advertising

17–37

Creative Advertising

Old Ads The DON’T Work

Old Ads The DON’T Work

Old Ads The DON’T Work

17–52

Sales Promotion Tools

• Trade Show Exhibits�Provide hands-on experience with products at

less cost than personal selling.

• Making Trade Show Exhibits Effective� Check out the trade show’s history.

� Prepare a professional-looking display.

� Have a sufficient quantity of literature on hand.

� Make sure you have a good product.

� Do pre-show promotion.

� Have a giveaway or gimmick.

� Train booth personnel.

� Follow up!

� Freebies

17–56

17–57

Small Businesses as Global Enterprises

• Globalization

�The expansion of international business:

� Converging market preferences

� Falling trade barriers

� Integration of national economies.

• Born-global Firms

�Small companies launched with cross-border business activities in mind

• Size does not necessarily limit a firm’s international

activity,

17–59

Strategy Options for Global Enterprises17-4

17–60

Film: Expanding Internationally (20 min)

Open a McDonald’s in Russia

Answer these questions while watching:

1. What challenges did they face?

2. What were the keys to success?

3. What is your “take-away”?