Session 1

Session 7 (25 Jan 2010): Create a Promotional Brief. To be handed in. 2 hours. Pair discussion and written. Individual submission. Session 8 (27 Jan 2010): Role Play. 15 mins. Session 8 (27 Jan 2010): Oral Questions. 10 mins.

1) The consumer buying process

Recognition of the need (eg. A new PC) Choice of involvement level/time & effort justified (eg. 2 weekends) Identification of alternatives (Eg. Sony or challenger) Evaluation of alternatives (price, customer, service, software support, after sales service) Decision / choice made (Eg. Acer) Action (Eg. Buy Acer model from challenger) Post purchase behavior (use, breakdowns etc)

Value = Cost / Benefits 2) Defining Marketing Marketing consists of individual and organizational activities that facilitate & expedite satisfying exchange relationship in a dynamic environment through creation, distribution, promotion and pricing. 3) Marketing - It is getting the product & services known in the market. - Bringing the product and services to the market place to fulfill demand. - Focuses on the needs of the buyer - Satisfy needs of the buyer - A specify function in the organization that has the customer in mind. It is all about the customers.

Needs: Daily necessities. Wants: Luxuries Demand: Needs or wants backup by purchasing power

Ideas is an example of intellectual property 4) What is marketing? - Personal Selling? - Advertising? -

5) Basic purpose of commercial company - Create the customer - Keep the customer 6) Selling - Focus on the needs of the seller - Convert product to cash 7) Marketing Mix is also known as positioning. Brand reflects positioning. 8) The 3 levels of a product

9) Pricing Strategies a. Premium pricing - Uses a high price where there is uniqueness about the product or service (Eg. 5 Stat hotel, luxury goods.) b. Penetration pricing - Sets a low price artificially to gain new market, then increases price once achieved (Eg. Service providers) c. Economy pricing - Placed at no frills low price. (Eg. Groceries House brands) d. Skimming pricing - Charges a high price because of a substantial competitive advantage, but price will eventually fall due to increase supply. (Eg. Technology products) e. Psychological pricing - To get customer to respond on an emotional, rather than rational basis. (Eg. S$49.90 instead of S$50) f. Optional product pricing

Optional extras to increase the overall price (Eg. cars)

g. Captive product pricing - Product that complement others (Eg. Low priced printers but high priced ink cartridges) h. Product bundled pricing - Sellers combine several products at the same price (Eg. software, books, CDs) i. Promotional pricing - Limited time discounts (Eg. Buy one get one free)

10) Product - To define the characteristics (features of your product or service that meet the needs of your customers (benefits)) - Appearance, function, quality, brand, support warranty. - Aesthetics & Design - Variety & Assortment - Seasonality 11) Place To determine the price appropriate for the product. To derive the channel of distribution to sell the product.

Distribution channel Wholesalers (provides storage facilities, reduces contact between producers and consumers) Agents (mainly used in international market, either secure orders or hold consignment goods.)

Retailers (Storage relationship with the consumer, build brand) Internet (focus on specific segments, not yet build up) TV or direct selling.

12) What is promotion? - WOM (Word of mouth), that we offer the best value. (Additional points in notes) - Attractive prices is not good enough - Products must generate sales and profit - Benefits of product have to be communicated to customers.

13) Are customers more interested in cheap goods/products? According to survey, customers are more interested in value than lower price.

~ END ~

Session 2
1. Advertisement Any paid form of non-personal presentation and promotion of ideas, goods, or services by organization. Aims to remind, stimulate and to convince the customer. - TV Ads, radios ads, printed ads Advantages Official - Public & visible - Persuasive Class - Mass reach, field reach - Favorable messaging - Subliminal (Attack you until you believe it) Disadvantages Official Not personal, one way communication Costly Class - High cost - Short Exposure - Does it reach target market?

2. Personal Selling Personal selling is a process of persuading one or more prospects to purchase a good and service though the use of individual and direct contact emphasis on oral presentations. Advantages Official - 2-way communication - Foster long term communication - More convincing through demonstration 3. Publicity Any non-personal form of public notations that is transmitted through the mass media and unpaid by the organization. Not controllable and need to be managed. Disadvantages Official - Expensive & time consuming to train - Requires human support

Advantages Official - Credible advertising - Less costly - Achieve long term brand image

Disadvantages Official - Impersonal - Less control over communicated message.

4. Sales promotion To stimulate immediate buying through a wide variety of short term incentives

Advantages Official - Forces consumer to make immediate buying decision Class - Increase $ sales - Increase customer database - Clear stock

Disadvantages Official - Set doubts on product quality - Customer may be spoiled Class -

Less credibility Low profit margin Set doubts on product quality Customer may be spoiled.

5. Purpose of the promotion What is the objective for the promotion? Some promotions have more than 1 objective. - Increase sales - Stimulates impulse buying - Raise customer traffic - Obtain leads for sales staff. - Present and/or reinforce retailers image - Educate customers - Maintain customers loyalty (CRM: Customer Relationship Management) - To inform goods and services - Inform and remind of new development (new stores/websites) 6. What products ad services are you promoting? - Event - Brand - New product - Re-launching of old products

7. Promotion Strategies Who are you targeting? o Customer Profile Demographics (where people live, age group, income) Psychographics (preferences, leisure, interest) What advertising medium are being selected? o Traditional (Newspaper, radio, magazine, TV) o New (Internet, social network, telecommunications (sms, mms)) Sales Target

8. Schedule for the programme - How long is the promotion? - When should the organization plan for the promotion? 9. Dynamics of the promotion - Theme Eg. Tiger Beer: Celebrate together - Location. Eg. Roadshow When a product is desperate to sell, credibility dropped. Customer must have the impression that the company is doing you a service by selling you the product. 10. Types of promotions - Seasonal - Special Event - Store Opening 11. Tactics - Joint activities - Display in empty stores - Sponsorship & community events. Eg Seng Song - Advertisements - Childrens activities - Fact & tips sheets - Loyalty programs - Customer-Get-Customer - Buy one get one free

Samples Discount Special preview nights

12. Promotional materials What the chosen materials are and why?

Direct Mailing Email Invitation Card

Promotion activities Target market

13. Framework

14. Learning activity (Page 15)

a. Effectiveness - Ability to achieve - Set objectives (with given resources) b. Things to include - objectives define in SMART format - product / brand - promotion activity o theme o mechanics - 3 reasons the objectives were achieved.

~ END ~

Session 3
1. To attract customers attention Mechanics o Advertise products in newspaper, magazines o Issue flyer with response Example Aspects to know you have attracted customer attention o 50 % increase in sales. o 70% with survey knows about it.

2. Learning activities Your partner & you will discuss the following. Think of some marketing & promotional activities, either If you have come across or Your company has implemented.

Write down the details in the following space provided, including: Details of products or services involved, Timing, period & duration of promotions Your involvement in the promotion. Promotion details such as marketing & promotion mechanism, venues, pricing, any vouchers, couponsetc

~ END ~

Session 4
1. Brief staff on the details a. Purpose of the promotion. What are some of the other purpose for a promotional brief? 2. Details of the products & services on promotions. a. Important information for the staff to know. b. If training is needed. 3. Product & service details a. Product info & guidelines (including colour, coordination, style, size & range) Features of the product Benefits of the product Product & service warranties Price lists Promotional leaflets Advertisement from the various media Gifts & gift wrapping Service logs (under utility) Complementary Products Presenting products & services to customers Identification of expired merchandise Providing after-sales delivery service b. Product Knowledge Features & Benefits Design & Aesthetics Variety & Assortment (Color coordination) Seasonality (Eg. Apparel) Utility (How to use. Assorted with usage. Eg. What kind of detergent work best for this brand of washing machine.) Price is not constant, hence not under major product knowledge. 4. Demonstration a. Powerful promotion tool b. Demonstrate benefits of the products c. Eg. TANGS do demo in house hold product. Some vendor use DVD player instead of demo.

5. Effective Demonstration a. Learn everything about the product & service b. Use visual aids. 6. Why do we demonstrate? a. Draw customers attention. b. Makes the store environment feel more dynamic. Both these effects will boost sales.

7 9 are for Robinson Ad 7. Staff briefing for Promotion a. Show staff the advertisement b. Define objective of the promotion. Product, services and trainingetc c. Mechanics to be used. d. Support Requirement Roster Logistics e. Roles & Responsibilities 8. Preparing the Store a. Layout / Plan (5 areas) Cosmetics Ladies Shoes & handbag Bedroom Household Children b. VM/Display/Demo Household need demo c. POS Auto deduct vouchers & discounts Vouchers to be at POS d. Staff deployment Household & children may need additional manpower. Additional staff may be needed at promotional area. e. Security Personnel Facilities Safety Fire Crowd control 9. Promotion materials

a. Pamphlets / Handouts b. Site Collaterals i. Signage ii. Standees iii. Audi / Visual c. Packaging 10. Inventory a. Quantity b. Price tags c. Delivery d. Storage

~ END ~

Session 5
1. RASCI Accountability Model

Activity 1 Activity 2 Activity 3 Activity 4 Activity 5

Sales Assistant RA A RA RA RA

Supervisor R RC RI R RC

Manager S S S S C

Area Manager SC SC I I I

Head of Sales I I I R SC

The RACI Grid A system that brings structure & clarity to assigning the roles people play within a team A simple grip system that defines & clarifies various peoples responsibilities & ensure that everything the team needs to do is taken care of.

(R)esponsible these people are the doers of the work. They must complete the task or objective or make the decision. Several people can be jointly responsible. (A)ccountability this person is the owner of the work. He or she must sign off or approve when the task, objective or decision is complete. This person must make sure that responsibilities are assigned in the matrix for all related activities. There is only 1 person accountable, which means that the buck stops there. (S)upervise this person is the one whom the R&A may have to report to the next level. (C)onsulted these are the people who need to give input before the work can be done & signed off on. These people are in the loop and active participants. (I)nformed these people need to be kept in the picture. They need updates on progress or decision, but they do not need to be formally consulted, nor do they contribute directly to the task or decision. 2. Sample of Schedule

Week 1 Activity 1 Activity 2 Activity 3 Activity 4

Week 2

Week 3

Week 4

Grid consists of: Time and activity. Matrix consists of: Time, Activity, People (Responsible) Project Tools: RASCI & Schedule. 3. Prepare the store for promotion Location of the promotion o Atrium of a mall, a little space in the store, atrium at common space (Eg. HDB Hub) Store interior o How merchandise should be displayed. o Hot spots Visible from the door Well lit areas Areas with other mechadise Cashier counters Entrance & Exits Well signed areas

Class assignment; identify hot spot of floor plan. Notes, page 41. Display the merchandise (Notes, page 39) o How the selected promotional merchandise are displayed at the store. o Stock level. Preparing adequate supply of products during the promos. Stock level of complimentary products, or a while stock last situation. o Price tags & signage. Staff matters o Extra staff o Uniform, transport, meal Implement promotional activities o Ensure all activates are carried out as planned.

4. Floor Plan for Electronic Fair Issues to consider: Location of Entrance / Exit o If entrance & exit different, need to have different hotspot dissipated. Cashier / POS location Hot Spots STAR product / category (product you want to push) Complementary product / category Storage / Staff Room o Storage is to support sales, not to hamper the sales. Testing facilities. (For product demo)

Show stage Redemption counter Others? Traffic Flow. How the traffic going to move. May not want to have hotspot concentrated at one location. As it exists the possibility there will be crowd at a specific spot only.

Floor plan template

* Written assignment will need to include floor plan, schedule and sales target.

~ END ~

Session 6
1. Handle enquires a. Positive indication b. Receive with enthusiasm 2. Enquires on product & services (FAQ). Notes, page 51 a. Product features b. Product usage c. Product range d. Color image, availability e. Pricing f. Further discount g. Bulk purchase (If any) Good way to built up FAQ from various promotions. Common FAQs: . How long is this promotion run for? . Can I mix & match the colors of the promotion items? Enquires on company policies: . Refund policies . Exchange policies 3. Provide accurate details a. Details regarding the promotion, product & service & company services. 4. Details a. Information on the products b. Price of the products c. Product usage d. Frequency of purchase e. Delivery services f. Service of the staff during the promotion 5. Prepare & communicate sales performance a. Measurement of sales Daily record of floor sales Against projected sales Against actual sales 6. Supervise & monitor with relevant Singapore legislation in industry practice. a. GST b. CASE c. SRA (People from major retailers & departmental stores)

 To give confident to consumer Singapore tourism board (STB) & SRA are working together to reward retailers. 7. Recognized service frameworks in Singapore a. Excellent Service Award (EXSA) b. Singapore Service Star (Goods) c. Singapore Quality Class d. Singapore Experience Awards 8. GST a. Local vs. exported goods b. Price inclusive of tax 9. What constitute an unfair practice under the Act? a. To do or say anything, or omit to do or say anything, if as a result consumer may reasonably be deceived or misled, to make a false claim. b. To take advantage of a consumer if the trader knows or ought reasonably to know that the consumer Is not in a position to protect his own interest Is not reasonably able to understand the character, nature, language or effect of the transaction or any matter related to the transaction, c. To do any of the 20 unfair practices listed in the second schedule of the Act SRAs code of practice. Notes, page 57 10. Written Assignment (Promotion Brief) a. Advertisement medium used b. Objectives/purpose of the promotion c. Details of the products or services involved To demonstrate features & benefits of one product to the customer. (Choose product that has information there) Handle at least 2 enquires from the customer regarding the product & promotion. d. Timing, period & duration of promotion e. The involvement of the team in the promotion f. Promotional details such as marketing and promotion mechanism, venues, pricing, any vouchers, coupons involved etc. g. Merchandise display instructions & floor plan h. Store policies 3 policies; exchange, return & refund. i. Sales targets Projected sales, actual sales by day 1, day 1.etc, Notes, page 55.

Other points to note: Use RASCI for roles & responsibilities No need to come up with the schedule Advertisement from 1 of the major retailer Expected hand-ins. o Promotion brief (2 pages) o Floor plan o Sales Target. Notes, Pg 55 o Roles & responsibilities (RASCI) Suggested activity 1 & 2 All items must have price tag Merchandise to be display according to floor plan ~ END ~