The term ’promotion’ is very broad

SALES PROMOTION

• a., internal: to generate enthusiasm amongst salespeople and other customer-contact staff

For most organizations, staff are the key to success – the most important tool for the organization’s success – and they can be motivated to promote their company’s product or service. Motivation marketing engages staffand gets them interested by using events or incentives. It also aims to recognize and reward staff efforts by offering prizes or rewards for good performance – for example, with a monthly incentive. Other benefits of motivation marketing include:

• increased job satisfaction
• improved productivity
• improved performance
• encouraging behaviour changes
• increased sales force effectiveness
• improved product launches: boost market penetration and gain market share more quickly

Staff incentive schemes / incentive programmes (cash substitutes, noncash awards):

• Prizes, rewards, gifts, big ticket giveaways (cars, very expensive holidays) can boost morale
• Building staff loyalty will result in lower straff turnover or churn
• Reduced staff absenteeism
• Increasing effective teamwork (team building)

• b., consumer products:
  • special offer: 10% off for a limitied time
  • bonus: buy one, get one free (BOGOF)
  • coupons: to cut out of a magazine
  • free samples
  • in-store displays
  • catalogues / brochures
  • games and contests
  • promotional items with an imprinted logo
  • special events

• c., B2B products:
  • trade shows (= trade fairs / exhibitons): A trade show, trade exhibition or trade fair is an industry-specific business event. Companies attend the events so that they can showcase, or display, the best of their products, service sor expertise. (lobbysquatters). Trade shows help to generate leads and can offer great opportunities to network – to chat and socialize with attendees and other exhibitors.

                               Types:

                               a., public trade show

                               b., trade only

                               c., vertical trade show: specializes in everything for a specific sector

                               d., horizontal trade show: is for a certain industry

  • portfolios of products for salespeople
  • deals (e.g. price reductions)
  • catalogues / brochures    

PERSONAL SELLING (SALES): this is the direct face-to-face communication between salesperson and customer. The sales process has various stages:

1. prospecting: identifying a potential customer (= a prospect) who has the ability and authority to buy
2. approach: contacting the prospect and preparing for the sales interview
3. presentation: describing the features of the product, highlighting the advantages over competing products, and giving examples of satisfied customers
4. demonstration: if possible, the customer is given a chance to see the product in use
5. answering objections: customers should be given a chance to express their doubts, as they are unlikely to buy unless these are dealt with. At this stage, the salesperson stresses benefits rather than features.
6. closing: the salesperson askes the prospect to buy. If the customer still has doubts then options include offering an alternative product, offering a special incentive, or restating the product benefits.
7. follow-up: processing the order quickly and efficiently, and reassuring the customer about their purchase decision during further conversation
8. long-term relationship: going on to establish regular contact with the customers

• A salesperson (inside or outside / field / travelling salesperson plus exclusive territory – to reach or target their sales quota) needs to be:

a., knowledgeable (of the customer and needs, of the products being sold, and of the industry and technical area)

b., visibly well-prepared, organized and well-presented to inspire confidence in the other person: marketing collateral (sales literature, product samples, price lists, order forms)

c., reliable

d., flexible

• Telemarketing is a form of direct marketing: the messages are delivered individually to potential customers. It requires immediate response.
  • It provides a company with immediate feedback
  • It also provides a captive audience
  • The telemarketing campaigns is measured in the cost per acquisition, cost per inquiry (CPI) or cost per order.

a., Outbound marketing: telemarketing operators call prospects from a list. Lists can be bought t brokers. (cold calls)

Common reasons for cold calling include:

• lead generation – contacting cold prospects to create hot contacts
• phone sales – selling services over the phone
• appointment setting

Follow-up calls may take place after a mailshot. Telemarketers try to convert these leads into sales. This is called lead conversion.

Voice broadcasting is a cheaper form of outbound telemarketing. Instead of having a live operator – that is, an actual person – a recorded message is played to the prospect or left on their answering machine.

b., Inbound marketing: Clients call the telemarketing firm, perhaps in response to an advert, to place an order, make a reservation or contact customer services.

ADVERTISING: the use of different media such as television commercials, advertisements in newspapers and magazines, direct mail, outdoor (billboards, posters on bus-stops), flyers given to people on the street, Internet.

• Advertising agency:

a., account manager: works with the client to develop the strategy

b., creative team: generate ideas and the initial concept through the final advertisement

c., market researchers: assess the client’s market situation and test creative ideas

d., media planners: actually place the ads in the various media and negotiate deals with them

• Trends in advertising:

a., changing media choices: cellphone screens, social networking sites, podcasting (audio and video)

b., digital convergence: everything will connect to the network (e.g. fridges, cars)

c., audience monitoring: tracking and measuring how consumers respons to advertisements is becoming easier and more important

d., GPS in personal mobile devices: this allows businesses to push targeted, location-specific ads (restaurants, speciality shops)

• Advertising techniques:

a., Pester power: it encourages children to ask their parents to buy a specific brand or product

b., Beauty appeal or sex appeal

c., Peer approval: associates the product with social acceptance by friends or peers

d., Scientific claim or statistical claim

e., Lifestyle advertising: the product will give access to an inspirational or more attractive lifestyle

f., Rebel advertising: goes against social norms and may appeal to teenagers

g., Excape advertising: makes the consumer imagine he or she is living a very different life

h., Celebrity endorsement

i., Puffing: uses the message that is so exaggerated that consumers will not believe it to be true

• Types:

a., above-the-line (ATL): a commission / fee is paid to an agency working for its clients.

• The commission represents a percentage of the media investment (adcertising campaign)
• ATL campaigns appear, orr un, in mainstreams or mass media.
• Examples include commercials on tv, and display ads on billboards.
• ATL advertising is interruptive.

b., below-the-line (BTL): any non-media advertising or promotion.

• Examples include: direct mail, exhibitions, point-of-sale, street marketing
• Direct mail: targeted, personal, flexible, tangible, measurable, cost-effective – you must encourage or entice people to respond
• Reasons for that: ad avoidance (ad avoider change channels / zipping) and media fragmentation
• Emerging media must now find new ways to tap into, or exploit, the advertising opportunities in the Long Tail (Chris Anderson: Wired magazine: the growing number of sites on the internet with a small number of visitors)

c., through-the-line (TTL): full services – blended / holistic / 360 degree marketing (multi channels)

• Aim: to build brands or drawing attention to your brand

Terms to remember

a., Media strategy: is part of the marketing plan. It recommends how to deliever brand messages to the customer in a way that best serves the brand’s communication objectives, such as building loyalty, encouraging purchase or aiding brand recognition. (target audience, media mix, media split, touchpoints, media consumption habits)

b., Media planning: recommends communication channels with the names of specific publications (media vehicles, media schedule, media planner, flighting patterns, continutiy / drip strategies, media objectives, time span, frequency)

c., Media buying: When the plan is approved by the client, the media buyer makes the media bookings and produces a media schedule. Cost per thousand (CPM) is a standard measure for media efficiency.

• TV, radio:
  • advertising agency, to produce the ad, communication strategy
  • advetising copy for an advert, catchy jingle, memorable slogan
  • commercial / ad, commercial break
  • ident: a short film with the brand name and logo shown before a programme
  • a sponsored programme / AFP: is financed by the sponsor or brand
  • interactive ads
• Outdoor advertising / out-of-home (OOH): it can really grab your attention or get in your face

a., roadside panels : billboards, giant banner / wallscapes, lightboxes, tri-face billboards, scrollers

b., street furniture: bus shelters, pedestrian panels are backlit

c., transit advertising: means of transport can be wrapped in vinyl

d., ambient media: e.g. travel ticket, receipt, floor graphics

e., digital outdoor advertising: LED screens, digital video billboards

Eye-catching ads: sonic posters, smelly posters, lenticular posters

• Street marketing:

Originally, a street team was a grassroots organization (an informal group of unpaid volunteers). The teams are not normally paid for their grassroots promotional efforts but are rewarded with free tickets and merchandise (or swag), such as CDs and T-shirts. Professional street team management firms have now adopted the concept. These professsional street teamers are often called street marketing groups. They can help get the word out about an upcomning event or new products and services.

Aims of street marketing:

• to build awareness / knowledge of a product amongst a specific demographic
• to increase the purchase consideration
• to create buzz
• to establish a dialogue with potential customers
• to turn consumers into brand ambassadors who will relay or pass on the brand messages
• to build the credibility of a brand by convincing influential and truested peer members of the advertiser’s target market to use the brand.

Street teams operate in high traffic areas where the target audience work or relax, such as festivals, concerts, trade fairs and shopping centres. (in-your-face marketing: aggressive marketing)

Street marketing tactics:

a., product sampling

b., posting, or putting up, stickers and posters

c., collateral distribution – hand-to-hand distribution of flyers, postcards, leaflets, small gifts / giveaways / goodies

d., Costumed actors and wrapped vehicles to create a brand experience

• Blogging: weblogs / blogosphere tips
• Write valuable content – to showcase your expertise
• Reagular posting
• Submit to blog directories and ping
• Build traffic
• Track and monitor your visitor stats (counter, sticky posts)
• Link the landing pages
• Ensure the anchor text contains keywords

PUBLIC RELATIONS: managing ’publicity’ (information that makes people notice a company). The PR function in a company needs to establish good relations with the news media in order to control this information, and PR people issue press releases and hold press conferences.

Public relations involves establishing and maintaining goodwill and understanding between an organization and its publics. Public relations firms are experts in media relations, public affairs and advising on strategy towards public authorities.

Public relations firms and agencies can:

a., advise clients on media relations

b., provdie media training

c., design media kits

d., organize press conferences and media briefings

e., write fact sheets

f., prepare new releases or press releases

Lobbying: Lobbying is the process of seeking to influence policy-makers, the people who decide government legislation, and to influence voting. Lobbying is the business of professional lobbyists or public affairs consultants. Many private sector companies, non-profit organizations or even overseas governments employ public relations firms to lobby on their behalf – that is, to promote their interests – to maintain relationship with policy-makers and to influence the decision-making process.

• a., inside lobbying: making a direct appeal to legislators to support your cause. The objective is to convince policy-makers to speak on your behalf or to be an advocate for your cause – that is, a supporter of your cause. Inside lobbying tools include influencing politicians through campaign contributions, supplying research and information to support your arguments and giving testimony. Critics argue that lobbying seeks to corrupt the political process by putting private interests abouve the public interest.
• b., outside lobbying: aims to influence policy by mobilizing public opinion or getting activists to put pressure on legislators through letter-writing campaigns or rallies.

EVENTS: memorable occasions (in-store, on the street, in an unusual location).

SPONSORSHIP: of sports teams, music groups, theatre / opera / ballet, etc. / partnership

Corporate sponsors provide financial support and other resources in exchange for the right to associate their brand with the event.

a., Sponsorship provide effective targeting.

b., Sponsorship associate a brand with culture, image and attitude of an event, team or personality (often referred to as a property). The sponsor can leverage, or use to maximum advantage, the qualities and characteristics of the property.

c., Sponsorships are interactive – the brand and the consumer can meet. Official sponsors can set up hospitality packages (e.g. VIP reception sin the hospitality tent).

The success of the sponsorship depends on the strengt and integrity of the sponsored organization, or sponsee. There are some risk factors, such as the potential negative impact on your brand. For example, sponsoring a football event could have a negative impact on the brand image if fans behave badly. You may need to sever relationships with the sponsee.

(exclusive or joint sponsor)

Types of sponsorship:

• art sponsorship: patrons of the art
• educational sponsorship
• sports sponsorship: wordwide events (e.g. the Olympic Games) have often been victims of ambush marketing, where a company that is not an official sponspor or partner tries to associate itself in the consumers’ minds with the event. They can then give the impression of being a worldwide partner, without paying sponsorship fees.
• cause related sponsorship: sponsorship deal between a company and a good cause or charity

ENDORSEMENTS BY CELEBRITIES (e.g. ’the face of the L’Oreal’, rap artists wearing a clothing brand)

TRADE PROMOTIONS to retailers, e.g. financial incentives to stock a new product or to give more space / visibility to existing products (e.g. shelp height and aisle position)

OTHER: product placement in films, word-of-mouth (= personal recommendations), viral marketing (online through social networking websites and friends emailing video clips). The term ’guerilla marketing’ covers all unconventional techniques – from viral marketing to the distribution of free products on the beach.

• Buzz marketing: uses existing networks, often social networks to increase brand awareness. Social networking relies on the idea that people will pass along and share cool and entertaining content. Unlike word of mouth, buzz is generated by the brand itself, looking to build awareness of a product or service. A buzz marketing campaign hope that the message will spread quickly, thanks to buzz agents, people who pass along messages.
• Electronic buzz marketing campaign / viral marketing: viral commercials (video clips, interactive Flash games – chat rooms, discussion boards, peer to peer sites, clickable link)
• Stealth marketing: consumers are not aware that they are being marketed to.

• Generating buzz: Although the catchphrase is contemporary, the idea of “generating buzz” is a long-standing concept in sales. In a sophisticated market populated by savvy consumers who no longer trust most of the messages presented by advertisers, word-ofmouth marketing, or WOMM, has become a vital tool for anyone in business. The strategy is to use the consumer’s own voice—the words of the ordinary person—to do the selling, rather than the voice of the big brand or the omnipotent mass communicator. Back in 1973, Madison Avenue advertising legend David Ogilvy recognized that ad campaign jingles, catchphrases, and fashions could “catch on” and become part of social culture. “Nobody knows how to do it on purpose,” he believed, though he was certain that word-of-mouth marketing was valuable, calling it “manna from heaven.” He also knew the power of a good laugh. “The best ideas come as jokes,” he mused. “Make your thinking as funny as possible.” In the 21st century, WOMM strategies are predominantly used online via social media. Modern marketers are able to purposefully spark word-of-mouth campaigns within online communities, but they also understand the impact of Ogilvy’s advice about using humorous, quirky, and offbeat ideas to get a reaction. Today, people still share their firsthand experiences with friends, but they also share pictures and videos online, so information is easily spread. Tactics to manipulate this trend include guerrilla marketing, which uses low-cost unconventional methods with a surprise element to provoke comment, and viral marketing, which typically employs social media to spread a brandsponsored video, or encourages influential bloggers and others to recommend products. In The Tipping Point (2000), British social commentator Malcolm Gladwell outlines the power of social epidemics and how the smallest impetus can trigger a mass phenomenon. According to Gladwell, the title of his book refers to a “magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire.” This describes modern “word-of-mouth” marketing, though it originates in broader ideas about how ideas replicate in human culture. As Gladwell explains, “ideas and products ... messages and behaviors spread just like viruses do.”

Case study: Nike: Sneaker brand Nike has been at the forefront of the trend, producing videos with enough “wow” factor to send them viral. The two-minute “Touch of Gold” video (2008) featured soccer player Ronaldinho showing off his skills wearing Nike cleats.

Case study: The Blair Witch Project: One of the movie hits of 1999, The Blair Witch Project, had an innovative approach to AIDA that made use of new viral marketing techniques. Before the movie’s first showing, the filmmakers created a website that offered an intriguing insight into the background to the movie. It presented snippets of movie as “found film footage,” and left viewers wondering whether the story of the movie was fiction or reality. The website grabbed attention, and continued to gain interest as more video clips and audio files were added. The buzz around the “myth” of the Blair Witch grew, creating further desire to see the movie. The call to action came in the form of a very limited release; moviegoers were urged to buy tickets before those few showings sold out. The movie cost just $35,000 to make, but generated revenues of more than $280 million worldwide.

• Memes: In 1976 evolutionary biologist Richard Dawkins put forward the theory that, just as genes are responsible for replicating physical characteristics, cultural information such as ideas, behavior, or style, can also be transferred from person to person. Dawkins referred to this cultural data as “memes.” These memes, like genes, can spread, mutate, or die out in society. As Dawkins describes it, “Just as genes propagate themselves in the gene pool by leaping from body to body via sperm or eggs, so memes propagate themselves in the meme pool by leaping from brain to brain via a process which, in the broad sense, can be called imitation.” Marketers have applied the theory to online behavior. An Internet meme can be a photo, image, video, website, word, or symbol, which originates from a single user or group of users and builds momentum when it is imitated by other Internet users. By piggybacking on existing memes, brands can gain massive exposure for relatively little cost.

  Exercise 1: Complete each explanation with a pair of words from the box.

  Exercise 2: Find the synonyms from the text! 

  Exercise 3: Select the correct word! 

 Exercise 4: Read Elon Musk’s reminder regarding Tesla same fair price to all principle! What does the e-mail reveal about Elon Musk’s leadership skills?

 Video 1: Boiler Room

What's the difference between a bad and a great sales pitch? Explore it! 

Some Sales Pitch Techniques for Analysis:

 Video 2: BMW Viral Movie - The Hostage

How would you evaluate the effects of this viral movie?

 Video 3: Marketing and Social Media: Emily in Paris 

 Video 4: Investopedia: MLM Marketing

What are the three differences between MLM Marketing and Pyramid Scheme?

1.

2.

3.

 Video 5: Thank You for Smoking

1. Senator Finisterre introduces a bill intended to discourage smoking. Nick Naylor says that this type of action is an attempt to restrain personal freedom. Discuss the role of government in public health. Do politicians have a duty to discourage legal activity that is detrimental to public health?
2. Is Nick Naylor a trusting individual? His vocation is dependent upon deception, but he is easily deceived by his coworkers. He is a critical thinker, but he strays often when faced with women that express interest in him.
3. Examine the reasoning people involved in the tobacco-lobbying industry are motivated by. Compare the objectives of Nick, the Captain, and Gomez O'Neal.                                       

 Video 6: Aviator

  Video 7: Miss Sloane