国际商务导论 Fundamentals of Business

Lecture 5: Promotion

What to cover today ：

1. Promotion and promotion mix

2. Advertising

3. Personal selling

4. Sales promotion

5. Public relations

Exercises

1. Promotion and promotion mix

Promotion 促销 is:

-- the act of informing or reminding customers about a specific product or brand

-- a way of attracting new customers, and building brand loyalty among existing customers

How important is promotion? Over 75% of the price of a box of washing powder

goes to pay for the costs of promoting the product. $300 to $6,000 of the price of a new car is used to tell

customers how excellent it is. “Our leading brands begin with world-class product

technology, but it’s advertising that gets consumers’ attention and persuade them to use our products again and again. Advertising is the lifeblood of our brands. … Advertising is the key driver in all our businesses, but it’s especially important for health care products – because consumers want a brand they know and trust. Advertising helps establish the trust.” -- P&G annual report

Promotion mix 促销组合 is:

-- the combination of various promotion methods that a firm uses to persuade customers to buy its products

advertising 广告 personal selling 个人推销 sales promotion 促销活动 public relations 公共关系

2. Advertising Advertising slogans: Connecting people. – Nokia Take time to indulge. – Nestle ice cr

eam Think different. – Apple computer Show your true colors. – Kodak film Impossible is nothing. – Nike Quality never goes out of style. – Le

vi’s Cleans your breath while it cleans y

our teeth. – Colgate i’m lovin’ it. – McDonald’s Where can you find ads of the

above brands in your daily life?

Advertising is:

-- the paid, nonpersonal promotion of goods and services by a company using mass media to persuade or influence consumers.

Costs of advertising:

Frito-Lay: more than $50 million per year

GNC: more than $80 million per year

GM: more than $100 million per year

P&G: more than $3 billion per year

2.1 Types of advertising Brand/product advertising 品牌 / 产品广告 : about a sp

ecific brand or product Comparative advertising: to demonstrate a brand’s sup

eriority over other competing brands Reminder advertising: to remind consumers of a produc

t’s existence Institutional advertising 厂商整体形象广告 : to enhanc

e the overall image of a specific institution, without focusing on any particular product, e.g. cigarette company in China

Industry advertising 行业整体形象广告 : to enhance the overall image of a specific industry (usu. by industry associations), e.g. “I love milk” by Jet Lee

刘翔鹤舞白沙广告被停播

2.2 Media of advertising

View: A new product ad campaign

Brian Wood, the Head of the Marketing Department

Robert Wilson, the Advertising Manager

Tasks:

1. Note down the various kinds of advertising media mentioned in the discussion

2. Choose the correct answer to each question.

1. The company is going to do some promotion on ______A. new products B. old stock C. both of the above2. The advertising campaign for the major new products is ai

med at ______A. businessmen B. young people C. children3. What is the weakness of ads on radio according to the co

nversation?A. The time is limited. B. The audience is limited C. It’s too expensive. 4. Which of the following method will be used to promote the

old product lines?A. TV commercials B. posters C. discounts5. What is not mentioned as a promotional method?A. flyers B. sponsorship C. radio

C

B

A

C

A

Newspaper: local or national Magazines: national or international TV: national or local, commercials vs. infomercials

(30 mins, televised separately) http://www.tudou.com/programs/view/POgcTnhWVqA Radio: local Internet: international Direct mail: national or local Yellow Pages: local Outdoor ads: local, stationary Transportation ads: local, moving, e.g. bus sides, ta

xicab roofs and doors Specialty ads: national or local, e.g. T-shirts, hats, sh

opping bags, cups, umbrellas, calendars

more than 50%of total ad

expenditures

3. Personal selling Personal selling is:

-- direct, face-to-face communication by salespeople with existing or potential customers to promote a company’s products

sales VP

sales director/supervisor

regional sales manager

sales rep

large commissions

and/or bonuses

3.1 Stages of personal selling

Prospecting forcustomers

Making theinitial contact

Making the salespresentation

Handling objections

Closing the sale

Doing after-sales service, follow-up, and

information gathering

3.2 Personal selling and CRM Customer Relationship Management (CRM)

system: an IT-based knowledge management system designed to track information about a company’s customers

Implementing a CRM system starts at the salesperson level:

the nature and size of customers’ purchase their changing needs their specific demands for price discounts or fast

delivery why or why not the prospect seems willing to

purchase

Functions of CRM systems track individual sales performance identify the star salespeople calculate the profitability of each sale build up a detailed case history about each

customer share the information among salespeople to

create the mentoring environment, and brainstorm solutions to common customer problems

educate the entire sales force and more …

3.3 Approaches to personal selling

Complex products

are sold using:

Standardizedproducts

are sold using:

Technicalselling

Missionaryselling

Creativeselling

Trade selling

Retailselling

Tele-marketing

Complex products: goods or services with characteristics that make them difficult for customers to evaluate

Technical selling: requires sales reps to impart detailed technical information to their customers, e.g. X-ray machines, advanced scanners

Missionary selling: involves a salesperson educating customers, building goodwill, and performing promotional activities such as offering product samples and literature so that the customer (agent) may purchase at a later date, e.g. pharmaceutical companies visiting doctors

Creative selling: requires salespeople to combine their technical knowledge and personal selling experience to craft creative ways to better meet their customers’ needs, e.g. IBM software sales reps selling a multimillion-dollar ERP system, a real estate broker selling luxury houses, auctioneer selling works of art

Standardized products: goods or services that customers have less problems evaluating them

Trade selling: (1) B2B in related industries, industrial goods; (2) consumer goods, but through intermediaries, such as wholesalers and retailers; principal task – negotiation

Retail selling: B2C, consumer goods; principal task – provide the product information customers need

Telemarketing: contact prospects exclusively by phone; either have own telemarketing dept., or use outsourcing service offered by call centers; increasingly ineffective

Organizational structure of a typical call center

Case study: When the sales call gets very personal (Jones, p294)

Questions: 1. Why did some companies revert back to door-

to-door sales?2. Which approach works better in the Chinese

context do you think, phone selling or door-to-door selling?

View: How a salesman works

Pam Gordon, a salesman from Good Life Company

Joe Wilson, the Manager of a furniture company

Tasks:

1. Watch the video, and note down the questions of the microwave oven salesman, and the answers from his customer as shown in the flowchart.

2. Would you call Pam Gordon a good salesman? What do you think that makes a successful salesperson?

Q: Your factory is located in the suburbs, so you’re a long way from town, aren’t you?A: _Yes._

Q: Are there any restaurants nearby?A: ____

Q: ____?A: _About 200._

Q: ____?A: _In a small canteen._

Q: Are your staff happy with the food served here in the canteen?A: _Not really._

Q: Why is that?A: ____

Q: If you had a choice of several more dishes, you and your staff would be happy to eat more often in the canteen. Is that right?A: ____

Our microwave oven can help!

No.

How many staff members do you have?

Where do they eat at noon?

A limited selection of dishes.

Yes.

4. Sales promotion -- nonpersonal, persuasive efforts designed to bo

ost a company’s sales immediately Point-of-sale displays 销售点演示 Sampling 试用 Contests 竞赛 Lotteries and sweepstakes 抽奖 Coupons and trade stamps 优惠券，印花 Premiums 赠品 Trade shows 行业展 Rebate 现金返还 : a potential refund by the ma

nufacturer (not by the retailer, vs. discount) to the consumer, e.g. 购车送现金礼包

5. Public relations

-- actions taken with the goal of creating or maintaining a favorable public image of the firm

Special events/sponsorship: Olympic Games, F1, Tour de France, FIFA World Cup

Publicity/news release: free ad, often prepared by the firm

Press conference: usu. for crisis management

ExercisesExercises

1. Translation

(1) 促销组合　　 (2) 传销(3) 公共关系　　 (4) 专业杂志(5) 艺术设计　　 (6) 厂商整体形象广告(7) 传单 　　 (8) 户外广告牌(9) 潜在客户　　 (10) 佣金(11) 赞助 　　 (12) 销售点演示

2. Three-min mini talk Review the major media of advertising, and for

each of the methods, give at least one example. Show photos, newspaper clips, or even the ad itself if possible. You may talk about:

product promoted promotion method(s) adopted apparent advantages and/or disadvantages of th

at method product categories that most suit such a promoti

on method

3. Group project:

The Karma Coffee House was recently opened in downtown Boston. The owner, Jen Allen, wants to attract many of the people who work in major office complexes nearby. She is hoping that they will stop at Karma for coffee before they start work, after they leave work in the evening, or during breaks or for informal business meetings. Jen decides that the local businesspeople represent her target market.

Karma is within a few blocks of large office buildings where thousands of people work, but it is not directly on their path to or from the metro station. Thus, those people will not be aware of the coffee house unless Jen uses promotion strategies. However, she cannot afford to spend a lot of money on promotion, so she needs to develop an inexpensive and effective promotion mix. The success or survival of Karma is highly dependent on the effectiveness of her promotion mix.

Based on the above background, plan a promotion mix (effective, and inexpensive) for Jen and her Karma.

4. Supplementary reading

(1) The World of Advertising

(2) Stages in the Selling Process (Jones, p294)

(3) Creative Selling: Going, Going, Gone … at Sotheby’s (Jones, p291)

(4) Telemarketing: When the Sales Call Gets Very Personal (Jones, p294)

Online resources for promotion methods used in China 超市促销活动指南 http://wenku.baidu.com/view/8d8cd038376baf1ffc4fad45.html 超市、购物中心、百货商场促销指南

http://wenku.baidu.com/view/138986d63186bceb19e8bb49.html 26 种常见促销策略

http://wenku.baidu.com/view/51eb620203d8ce2f00662367.html 13 种最有效的促销方法

http://wenku.baidu.com/view/e96e896648d7c1c708a1450f.html 杭州国大雷迪森广场酒店餐饮部 2004 年工作计划 http://wenku.baidu.com/view/c09f8aeb6294dd88d0d26b49.html 肯德基秒杀门的营销分析 http://www.aimishu.com/observe/Commentary/27158.shtml 中国移动（南京）品牌管理及推广方案 http://wenku.baidu.com/view/32e8876a561252d380eb6e04.html