Wednesday, October 30, 2013

Chapter 17 - Personal Selling and Sales Management


               A Sales Promotion is marketing communication activities, other than advertising, personal selling, and public relations. It is basically the purpose of a short-term incentive that motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or adding value to a product. TRESemmé would usually lower the price of their hair care products to attract their target market, which is known as consumer sales promotion. Another thing they would do to attract their consumers is to add more benefits to their hair care product which will make their consumers wonder if the benefits of the product is good, making them buy the hair care product out of wonder. TRESemmé's products for trade sales promotion would be targeted to their wholesaler's and retailers. There are several types of consumers that TRESemmé's consumer sales promotion must know of because of the competition  the price buyers (people who consistently buy the least expensive brand), brand switchers (people who buy a variety of products in the category), competitor's customers (people who buy a competitor's product most or all of the time), and loyal customers (people who buy your product most or all of the time). 


                      In order for a sales to be a success, TRESemmé must know how to make it more convenient for consumers to buy their hair products. Using coupons and rebates is a great idea because coupons will attract the consumer to buy a hair product from TRESemmé since it is on sale; also if a consumer buys one of TRESemmé's products and realizes that they don't want it anymore, they can return it back if they haven't opened it or used it. TRESemmé uses a premium for some of their products for example, if a consumer buys a shampoo, there are deals where they can get a free conditioner along with it. Who wouldn't buy a shampoo if they can get free conditioner with it too? Sampling is another thing that TRESemmé does with its products. They have small bottle of their gels, shampoos, conditioners, etc. and they give it to customers that are willing to try them out. If the customers ends up liking it, then they are more likely to buy the product from TRESemmé. Point-of-Purchase Promotion is used when TRESemmé wants to advertise their products in the most effective ways. They usually display the most attracting products in front of a shelf to attract their consumers. Online sales promotion is what TRESemmé does in their website. When a customer buys something online, puts it in their shopping cart and is almost ready for checkout, they can first put in a promotion code to get some percentage off of the products they want to buy.



                 Personal Selling is a situation involving a personal, paid-for communication between two people in an attempt to influence each other. TRESemmé uses this sales technique for their new goods and services. In order for TRESemmé to make this work, they must live up to their customer's needs of the product that they are looking for, and explain to them the product's basic advantages, and propose the exact features and accessories that will meet the client's needs. Lying is not a good option for this situation because if the customer wants to return the product, the retailer's commission will go down.


                   
                 TRESemmé must be aware of relationship selling to sell their products easily. They must focus on the key ingredients in identifying prospects and developing them as long-term satisfied customers. TRESemmé would need to build long-term branded relationships with consumers and buyers so that they can build mutual trust between the buyer and the seller.  If the consumer is planning on buying one of TRESemmé's product, they most likely will if they have a sense of relationship with the company. It costs businesses six times more to gain a new customer than to retain a current one, which counts for TRESemmé too. TRESemmé would need to let their customers know as much as they want about the product without lying about anything.



                   Of course, there are several steps needed in the Selling Process knows as the sales cycleTRESemmé needs to:

  1. Generate Leads
  2. Qualify Leads
  3. Approach the customer and probe needs
  4. Develop and Propose Solutions
  5. Handle objections
  6. Close the sale
  7. Follow up
There 7 steps are very important because they lead to the final purchase of a consumer buying a product from TRESemmé. TRESemmé must have all these 7 steps in order to be able to sell their products efficiently to their customers.

Wednesday, October 23, 2013

Chapter 16 - Advertising, Public Relations and Sales Promotion



             Advertising helps a company sell their products easily. TRESemmé has their products advertised all over the place such as the internet, television, newspapers, billboards, department stores, etc. Since TRESemmé uses advertising a lot in order to sell their products, their marketers have to choose their budgets wisely since advertising can cost a lot and it is definitely not for free. TRESemmé actually spends less than other new incoming brands like Jergen's since TRESemmé has already captured a majority of their target market and they only need to basically remind customers of its products by advertising new things they make in the future. Advertising effects consumers' daily lives by informing them about the products and services that (for example) TRESemmé has and having it influence their attitudes, beliefs, and most importantly their purchases. 




            There are several major types of advertising which determines the type of advertising a firm uses. TRESemmé uses product advertising which is basically a form of advertising that promotes the benefits of a specific good or service. For example, TRESemmé's Split Ends Remedy shampoo helps cure the unwanted disaster of split ends! No one wants split ends because it is a sign of dry and damaged hair, which leads having to cut your hair so new, healthy hair can grow back. Not everyone wants to go through that and they would rather find a cure for their split ends, which will make them choose a type of shampoo to help cure them. This is one of TRESemmé's most famous shampoos because it actually helps and it is advertised a lot on television since the majority of people in our society suffer from split ends. It is also one of the cheapest split end remedy shampoos that you can get from your local department store, drug store, etc. Consumers will automatically try to look for the cheapest and more effective shampoo so they will turn to TRESemmé's Split Ends Remedy shampoo. This can also lead to competition for other hair product companies.



              If a company wants to advertise, they will need to have a creative decision. An example of a creative decision by TRESemmé would be the way they design their advertisements online. They show a woman in a picture or video and exaggerate how glowy and healthy their hair looks which will have the consumer believe it will be a benefit to them. It is obviously photoshopped, but it catches the eye of consumers because of the perfection the video or picture holds, in which a consumer might have an ideal-image of themselves. TRESemmé is actually on the trend of making an online advertising banner that really will stand out to their customers, consumers, and target markets. 



           If TRESemmé has their products advertised on the internet or television for it's benefits, then that will be an example of having media decisions. Having focus on the targeted audience is a source of gaining a public relation with them. TRESemmé will most likely engage with a consumer who is very interested in their products, which will lead them to buying more and more from them since the consumer will be gaining a relationship with the retailer of TRESemmé.



               Having a sales promotion is a MUST for any company. This promotion targets the consumer or members of the distribution channel to purchase a good or service immediately, either by lowering the price or adding value. Since Advertising offers the consumer to buy; sales promotion offers an incentive to buy. For example, you may see many of TRESemmé's products in drugstores such as Rite Aid and Duane Reade. Both of these drugstores have sales on their items and sell TRESemmé products because they are multi-channeled. The only difference is that Rite Aid sells TRESemmés' products at a more considerate price and they have better sales with discounts other than Duane Reade. Rite Aid also has a reward card and so does Duane Reade and you get points each time you make a purchase in those stores, but it is easier to get rewards with your points in Rite Aid other than Duane Reade because it takes longer to get up to the points you need in Duane Reade.



               There are several type of tools you will have to use in order to get a consumer sales promotion. Having a coupon or a rebate is a great way of saving money to buy a product you want for a cheaper price. TRESemmé gives out coupons and rebates for their products so that consumers will have the idea of purchasing them more. Who doesn't like to save money anyways? Premiums are a smart choice to make. TRESemmé sells their products in Rite Aid and usually they have the saying of "buy one, get one free" or "buy one get one half off". This actually encourages consumers to buy that certain product because it's like getting a 2 of them for buying it at one price or it's like getting 2 of them with one of them having a half price off. Loyalty Marketing Programs reward loyal consumers for making multiple purchases, which actually builds long-term relationships with the company and its key customers. TRESemmé performs this when you buy their products a lot, they may give you a free item of theirs. This is why consumers usually join reward programs, for its benefits. Contests and Sweepstakes are promotions in which participants use some skill or ability to compete for the prizes. For example, there is a group on facebook that is called 'Free Samples and Freebies', sometimes TRESemmé puts up one of their product that they will be giving out for free to whoever wins it, it can be a shampoo, conditioner, gel, hairspray, etc. Sampling is a very wise choice to make when a company is willing to sell their products even more. Usually, TRESemmé would send samples to consumers' homes of their shampoos and conditioners and consumers would try them. If the consumer actually ends up liking the shampoos and conditioners  chances are that they will buy this product at the drugstore themselves. If it weren't for that sample, that consumer will probably never have known about TRESemmé's products! Onlines Sales Promotion is when a company has a product up for sale online. TRESemmé has sales on their websites and many other TRESemmé-advertising sites, and since they are on sale, there is more of a chance for consumers to buy them. It may say "20% off every TRESemmé shampoo" or "50% of entire gel and hairspray section", it really just depends on what TRESemmé wants to put on sale for consumers to purchase.


                      In order to actually be in the selling process, there are required steps that the salesperson will have to take first.
  • Step 1: Generating Leads: There must be communication between the potential buyer and the salesperson. The salesperson of TRESemmé will have to build a relationship with the buyer which is how the buyer will be encouraged to buy their products.
  • Step 2: Qualifying Leads: This is when a prospect shows interest in learning more about a product, the salesperson has the opportunity to follow up, or qualify, the lead. When a consumer is interested in a product, the salesperson of TRESemmé will have to keep them informed more on the product and influence them to purchase it at the SAME TIME.
  • Step 3: Approaching the Customer and Probing Needs: Before approaching customers, the salesperson should learn as much as possible about the prospect's organization and its buyers. This is where TRESemmé will have to satisfy their customer's needs at the right time and at the right place. The salesperson of TRESemmé will have to do their own research and be prepared for any question from their customers.
  • Step 4: Developing and Proposing Solutions: Once the salesperson has gathered all the information, the next steps is to determine whether his or her company's products or services match the needs of the prospective customer. TRESemmé will have to ask questions to their customer to see if the product they want is right for them, as if they need it or not or if they need something else.
  • Step 5: Handling Objections: This is when the prospect often raises objections or asks questions about the proposal and the product. TRESemmé will have to be ready to answer of of the prospect's questions.
  • Step 6: Closing the Sale: At the end of the presentation, the salesperson should ask the customer how he or she would like to proceed. When the customer is sure of buying the TRESemmé product and all their expectations are met, the salesperson can go ahead and close the sale.
  • Step 7: Following Up: The final step of the sales process where they must make sure that the delivery schedules are met, goods or services perform as promised, and buyers' employees are properly trained to use the products. TRESemmé will build a relationship with this customer if this final step is made because it will keep the customer happy and satisfied and it will make them keep coming back for more.

Saturday, October 19, 2013

Chapter 14 - Marketing Channels and Retailing

               A Marketing Channel is a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer. This basically means that it:
  • Links producers to buyers.
  • Performs sales, advertising and promotion.
  • Influences the firm's pricing strategy.
  • Affecting product strategy through branding, policies, willingness to stock.
  • Customizes profits, install, maintain, offer credit, etc.
TRESemmé has its own set of a marketing channel since they perform sales on their hair products so consumers will most likely buy it more, they make sure that their prices are reasonable so consumers won't have to question themselves as to if buying the product is worth their money, and they have their hair products stocked all the time and make sure they never run out.



                 Having Channel Members helps the company determine the goods and services that goes to the customer. In order to do this, the company needs main members which are retailerswholesalers, and industrial distributorsTRESemmé has these main members to help distribute their hair products in the hands of their consumers, attracting more of them to buy TRESemmé's products. For example, if there is no intermediary, companies will have more transactions and if a company has intermediaries, then there will be less transactions. The retailers for TRESemmé sell mainly to the consumers, the merchant wholesalers facilitate the movement of TRESemmé's products and services from the manufacturer to producers, resellers, governments, institutions, and retailers. The agents and brokers of  TRESemmé facilitate the sale of a product from producer to end user by representing retailers, wholesales, or manufacturers.
                   The Channel Structures of  TRESemmé for consumer products is different from the industrial products. They each have their own way of determining who the products go to. In the end, TRESemmé's products from consumers will always go to the consumers and in the end, industrial products will either go to the industrial users or government buyers.



                Making Channel Strategy Decisions for TRESemmé is pretty easy. TRESemmé's managers must answer these following questions:

  • Who are the potential customers?
  • What do they buy?
  • Where do they buy?
  • When do they buy?
  • How do they buy?
These answers will help them sell their hair products in a much simpler way. It is also important for TRESemmé to have a reasonable size for their market. The product's life cycle is an important factor too, TRESemmé can do this by upgrading the hair products that they have and putting the word "New" on their shampoo bottles, conditioner bottles, hairspray, gel, etc. Otherwise, consumers will look for other alternatives.
                TRESemmé's Global Marketing Channels allow the company to sell their products in different countries allowing more sales to occur. It is a good idea for TRESemmé to manufacture abroad because this way they will be able to make more money. Since people are going to be using TRESemmé's products all over the world, then their products will become more popular and be used more.


                 Retailing is basically all the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. When a person goes to the store to buy a hair styling product and buy the brand TRESemmé, they are then involved in retailing. In United States society, TRESemmé is the 2nd top brand for consumers so it fulfills their needs and styles.



                TRESemmé's Classification of Retail Operations would be a drugstore or a supermarket. Stores such a Rite Aid, Duane Reade, Costco, Pathmark, etc. all sell TRESemmé products where consumers can purchase them at anytime. They have a section of beauty products for hair and there will be a whole section of TRESemmé's shampoos, conditioners, hairsprays, gels, etc. This makes it easier for consumers to buy TRESemmé's products since these drugstores and supermarkets are not hard to find. There are also nonstore retailing options that consumers have when buying a TRESemmé product. Instead of going to the store, they can just order TRESemmé's products online with no hassle. This technique also makes it easy for consumers to buy and it is a smart way of retailing. 


                 There is also a Retail Marketing Strategy which allows TRESemmé to select a target market and to develop the retailing mix to successfully meet the needs of the chosen target market. They must know what the consumer wants and expects of their product in order to sell it to them successfully. The price for their products should be affordable and reasonable to the consumer. Also, the atmosphere should have a good impression for the consumers to attract them more. Odor is also very important for consumers because the better the smell of the place, the more people there will be to buy the products since it is another sense of attraction like the atmosphere. TRESemmé's retailers must always adopt new strategies to serve their customers and attract new ones at the same time. This is how they stay ahead of the game in any competition.
             

Wednesday, October 9, 2013

Chapter 6 - Consumer Decision Making


              Consumer Behavior is one of the most important topics a marketing manager must understand. This determines how consumers make purchase decisions and how they use and dispose of the purchased goods and services. TRESemmé achieves this by choosing the most common problems that people have with their hair and making products that can fix these problems. For example, one of the most common hair problem is frizziness; TRESemmé has products that helps tame frizziness in their gels, shampoos, hairsprays, and conditioners  This influences consumers to buy these products if they have problems with frizzy hair.

               There are 5 basic steps on how a consumer determines which product they should buy by making decisions; This process is called the Consumer Decision-Making Process. The 5 steps are: need recognition, information search, evaluation of alternatives, purchase, and postpurchase behavior. A great example will be a product from TRESemmé which are their hairsprays and gels. As a recognition, the consumer will decide to buy this product if they WANT it, it certainly is not a need but this want triggers the mind of consumers and makes them want to buy the product. It's like seeing an advertisement and wanting that certain product even if it isn't important. As an information search when the consumer recognizes their need or want, for example if a consumer sees a hair product that is very cheap but have not heard of the product before, chances are they will not buy it. TRESemmé is by far one of the most popular hair brand so if a consumer sees this product, they will most likely buy it, especially since it is a salon stylist brand. After getting information and recognition of the product, a consumer will use this information stored in their memory and obtained outside sources to develop a set criteria; This is called evaluation of alternatives and purchases. The consumer will look for more reasons to buy a certain product from TRESemmé making it as logical as possible by comparing the product to other products that are being sold. When a buyer is buying products, consumers expect certain outcomes from the purchase, this is known as the postpurchase behavior. The way these expectations are met all depends on the consumer if they are satisfied of dissatisfied by the purchase. If the consumer uses one of TRESemmé's gel products and it doesn't do what it says it does such as hold the hair throughout the whole day, then the consumers will be dissatisfied which will make them not buy this product again. The person who used this product may also pass on to their friends and families that the product doesn't do as it says, which will cause the product to have less sales. This is a type of situation that a company like TRESemmé must avoid as much as possible by giving their customers a reliable product.


                There are many Factors Influencing Consumer Buying Decisions. They are cultural, social, individual,  and psychological factors that strongly influence the decision process which has an effect on a consumer's stimulus. Cultural factors are one of the broadest and deepest influence. Marketers must understand the way people's culture and its accompanying values, as well as their subculture and social class, influence their buying behavior. TRESemmé will have to find out a consumer's culture of foreign countries and know what is more popular over there. For example, long hair is something that the Asian countries like Pakistan and India most likely strive for. TRESemmé sells a shampoo product that grows your hair faster than usual which looks like this: 

TRESemmé would most likely sell most of these products in Pakistan and India since it is most wanted there. The Social factors are mostly influenced by go social class systems. The upper class is more wealthy and are most likely going to buy more expensive products, maybe not even from TRESemmé because they may be able to afford something more expensive and better. The middle class will most likely buy products from TRESemmé because the prices for their products are very reasonable. The lower class may buy products from TRESemmé is they are able to afford it. It also depends on how each class's lifestyle is like and how each class is influenced. Also, if a family member uses products from TRESemmé, then it is most likely to pass on throughout the whole family. A consumer's buying decisions are also influenced individually, such as gender, age, and life cycle stage; Which also leads to personality, self-concept, and lifestyle. For example, a baby will most likely nice use a TRESemmé product since it is not healthy for their hair. Their products are for teens and older. There are TRESemmé products for both males and females so that is not a problem. Choosing a TRESemmé product also depends on a person's lifestyle or personality if they like their products and the smell of it is important too since it attracts buyers. Psychologically, a consumer will most likely buy a product if they hear that it is great from other people. They can also check online to see the reviews of certain products. TRESemmé has a lot of their products on the internet with reviews from people like us. You just have to be careful because not every product with reviews are a fact.

Thursday, October 3, 2013

Chapter 5 - Developing a Global Vision


           Global Marketing is the process of marketing that targets markets throughout the world and has become an imperative for business. Having a Global Vision is important for a company because it's the process of recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets. TRESemmé is already on track with their global vision. They sell their products all around the world and have gained revenue from their international sales. TRESemmé has higher aspirations compared to other salon-brand companies. The owner of TRESemmé Casey Keller says, "Our positioning of professional performance at an affordable price is really hitting a sweet spot right now for women.", which is a great way of attracting more sales. TRESemmé, according to market research firm Symphony IRI, had sales of $211 million, only $10 million behind premium brand Garnier Fructis (made by L'Oreal), for a one year period from July 11, 2009 to July 11, 2010.

Citation: http://www.brandchannel.com/home/post/2010/09/01/Tresemme-Growth-Plans.aspx


              Multinational Corporations are heavily engaged in international trade, beyond exporting and importing. They move resources, goods, services, and skills across national boundaries without regard to the country in which its headquarters is located. TRESemmé is known as a multinational corporation. In fact, the company Unilever in general sells their products all around the world. They also make their products in other countries. TRESemmé's products are used in hair salons across the United States, Canada, United Kingdom, and Asia in particular to hair repair treatment that usually forms from heat damage caused by hair ironing and blowdrying. TRESemmé is actually one of the most well-known multinational corporations around the world.

           


           In order for TRESemmé to achieve a good External Environment Facing Global Market, they would need to understand what is going on around their surroundings outside of the company. This includes good customer service and competition.




           There are various ways on entering the Global Marketplace. The number one reason why companies "go global" is to earn additional profits from their products. TRESemmé is part of this technique. They are engaged in exporting, licensing, contract manufacturing, joint venture, and direct investment of their products. The least risky is the exporting of their products to different countries and the most risky is the direct investment. Since TRESemmé does all of this, they are known for entering the global marketplace.



           Being involved in a Global Marketing Mix is a must to succeed. The three P's are very important to keep in mind: Price, Place, Promotion, ProductTRESemmé sells their items in foreign countries having the prices vary depending one where the product is being sold. For example, one of TRESemmé's shampoos will cost less in the United States compared to it being sold in the United Kingdom since their currency level is higher. The place in which their selling their item effects the marketing mix too. TRESemmé will need to go through a study on what the country is most likely interested in and the type of hair problems people in the country most likely have so they can sell the right product there. If TRESemmé gets their studies on individuals right, then they will most likely get a promotion for their hard work and achievements.



            The Internet has a impact on global marketing. Just by going online, you may see ads of certain types of things which is a normal thing. This is known as internet advertisement that the company pays for their ads to go viral on the internet. They know that billions of people surf the web everyday and many will see their products posted on ads. TRESemmé has done a lot of this advertising with their hair products in several websites. This is one of the best ways to get their products to sell.