Select Comfort Corporation

A mattress is a mattress, or is it? We have heard of waterbeds. Now Select Comfort offers an "air bed ' ine mattress is air-inflated, and. sleepers, can adus? Firmness by changing the air level. TVrt siceoers can even call for dillerear degrees of firmness on itieir respective sides oF the mattress. ^ market ihe mattresses Select Comfort, headquartered in Minneapolis, has pat together a strong combination of channels and promotion initiatives: 300 retail stores where prospects can lake 3 "Test Rest on Air; demonstration videos and collateral material discussing "Sleep Science"; a company Wab site (v.mv.selectconnlci cum) describing the products and offering advice en how to sleep better; a lale-nitjlil mlomerciaf; celebrity endorsements: and giviity customers rtlio rec-■ ornmend others who buy me mattress a merchandise certificate«

Within the same industry, companies can differ considerably in their media and Channel choices. Avon concentrates its promotional funds on personal selling, whereas llevlon spends heavily on advertising. Elect ralux Spends heavily on a door-to-door sales force, whereas 1 loover relies more nn advertising.

Companies art: always searching for ways lo gain efficiency by replacing one communications tool with others. Many companies ¿ire replacing some field sales activity with ads, direei mail and telemarketing, one auto dealer dismissed his five salespeople and cut his prices. and sales exploded. Companies are shifting advertising funds into sales promotion. The substitiiiability among communications idbjs explains why marketing functions need to he coordinated, 1'or example, a new Web site and a coordinated TV ad campaign targeting tile greater l.os Angeles area sparked record sales for Hawaii's Aloha Airlines, selling over SI million VvOrth of tickets On one day. Hie IV ads were designed to err ale awareness for Aloha and drive traffic to the Web site, where the sale would be closed,™

Characteristics of the Marketing Communications Mix

Each communication tonl lias its own unique characteristicsphd costs.

DVE ■ I SING Advertising can he Used to build up a long-term image for a product (CocaCola ads} nr trigger quick sales (a Sears ad for a weekend sale). Advertising can efficiently reach geographically dispersed buyers. Certain forms of advertising (TV) can require a large budget, whereas other forms (newspaper) tit} not, Just the presence of advertising might have an effect on sales: Consumers might believe thai a heavily advertised brand must offer "good vaIue.11111 Because of the many forms and uses of advertising, ii is difficult to mako generali/ations.nCl Vet tile following qualities can be noted:

1. Pen'cisiy&ttess -Advertising permits the seller to repeat a message many times. It also allows the buyer to receive and compare the messages of various competitors. Lar^e-scale advertising says something po<Siljve about the seller's size, power, and success.

2. Amplified expressiveness - Advertising provides nppori urn ties for dramatizing the company and its products through ihe attful use of print, sound, and color.

3. impersonality - The audience does nm feel obligated to pay attention or respond to advertising. Advertising is a monologue in front of, not a dialogue with, Ihe audience.

SALES promotion Companies use sales promotion tools—coupons, contests, premiums, ¡iiid the like to draw a stronger and quicker buyer response. Sales promotion can be used for short-run effects such as to highlight product offers and boost sagging sales, Sales promotion lools offer three distinctive bene fits:

1. Communication -They gain attention and may lead the consumer to the product.

2. iiiceniiiv - They incorporate some concession, inducement, or contribution that gives value to the consumer.

3. invitation - They include a distinct invitation to engage in the transaction now,

PUBLIC REl IONS :,U -..v.- Marketers tend to undemse public relations, yet a well-thought-out program coordinated with the other communications-mix elements can be extremely effective. The appeal of public relations and publicity is based on three distinctive qualities:

t. High credibility - Mews stories and features are more autheiuii: and credible to readers than ads.

2. Ability to catch buyers off guard - Public relations can reach prospects who prefer Lo avoid salespeople and advertisements.

3. fyramatizatipn- Public relations lias the potential for dramatizing $ company or product.

There are many advantages lo even Is and experiences:

1. Relevant-A wait-chosen event or expe pence can be seen as highly relevant as the consumer gets personally involved.

2. Involving^ Given their live, real-time quality, consumers can find events and experiences more actively engaging.

3. Im/tlicit - Events are more oí an indirect "soft-sell."

The ntaity forms of direct markedttg—direct mail, telemarketing, Internet marketing share three distinctive characteristics. Direct marketing is:

1. Customized - The message tan be prepared to appeal to the addressed individual.

2. Up-to-date- A message can be prepare«! very quickly.

3. /nrtmeffiw-The message can he changed depending pri the persons response.

personal sel Personal selling is i hémosr effective tool at later stages of the buying process, particularly in building up buyer preference, conviction, and action. Personal selling has three distinctive qualities:

1j Personal interaction - Personal selling involves an immediate and interactive relationship between two or mow persons. Each party is able to observe the other's reactions.

2. Cultivation - Personal selling permits all kinds of relationships to spring up, ranging from a matter-of-fact selling relationship to a deep personal friendship.

3. Response - Personal selling makes the buyer feel under Some obligation for having listened to the sales talk.

Factors in Setting the Marketing Communications IVlix

Companies must consider several factors in developing their communications mis: type of prothici market, consumer readiness to make a purchase, and stage in the product life cycle, Also important is the company's market rank.

i i Communications mix allocations vary between consumer and business markets. Consumer marketers tend 10 spend comparatively more on sales promotion and advertising; business marketers tend to spend comparatively more on personal selling, in general, personal stilling is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers (hence, business markets).

Although advertising is used less than sales calls in business markets, it stitl plays a significant role:

■ Advertising can provide an introduction to lhe com party and its products, c If the product has new features, advert is ing can explain them.

■ Reminder advertising is more economical than sales calls.

b Advertisements offering brochures and carrying the company's phone number are an effective way to generate leads for sales representatives.

— Sales representatives can use tear sheets of die company's ads to legitimise their company and products.

p Advertising can remind customers of how tu use the product and re;issure them about their purchase.

i\ number of studies have underscored advertising's role in business markets, Advertising Combined with personal selling can increase sales over what would have resulied if there had been no advertising.111. Corporate advertising can improve a company's reputation and improve the sales force's chances of getting a favorable first hearing and early adoption of the product,52

Personal selling can also make a strong contribution in consumer-goods marketing. Some consumer marketers use the sales force mainly to collect weekly orders from dealers

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Stages of liuyi r Headings tovsfiness CiWDrisiHisim Catuiction Otfl« Rtotdir

Stages of liuyi r Headings

■ AiJverUsing jnd publicity □ Sales pramoligd ■ Picrsonst sill n®

and 1« see that sufficient stock ¡son the shelf. Yet an effectively trained company sales force can make four important contributions:

I - increased slock position- Sales reps can persuade dealers to take more stock anil devote more shelf space 10 the Company's brand,

2, Enthusiasm (niihliitg - Soles reps can build dealer enthusiasm hy dramatizing planned advertising and stiles promotion back tip,

3. Missionary setting - Sales reps can sign up more dealers.

4 , Key account management-Sales reps can take responsibility f&r growing business with the must important accounts.

¡EADIN . .■ ■'. . Conmiuuicatiun tools vary in cost-effectiveness at different stages (if buyer readiness. Hgtire 17.0 shows tile relative cost-effectiveness of three communication tools. Advertising and publicity play (be most important roles in I he awareness-building stage. (Customer comprehension is primarily affected by advertising and personal selling. Customer conviction is influenced mostly by personal selling. Closing the sale is influenced mostly by persona] selling and sales promotion. He-ordering is also affected mostly by personal selling and sales promotion, and somewhat by reminder advertising.

.'■'." STAGE Communication tools also vary in CoSt-cffeCtivencss ai di f-feretit stages of ihe product life cycle. In lhe introduction stage, advertising, events and experiences, and publicity have the highest cost effectiveness. followed by personal selling to gain distribution coverage and sales promotion and direct marketing to induce trial. In the growth stage, demand htisits own momentum through word of mouth, in (he maturity stage, advertising, events and experiences, and personal selling all grow more important In the decline si age, sales promotion continues strong, oilier communication tools are reduced, and salespeople give the product only minimal attention.

Continue reading here: Chapter 1b Sm

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