1. Fundamental Of
Marketing
MKT243
Chapter 10
Advertising, Sales Promotion,
Public Relation, Personal
Selling and Direct Marketing
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2. Slide Outline
• Effects of advertising
• Major types of advertising
• Steps in creating an advertising
campaign
• Media decisions
• Public Relations
• Sales Promotion
• Personal Selling
1. Steps in Selling Process
2. Sales Management
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4. Advertising
Advertising is any paid form of non-
personal presentation and promotion of
ideas, goods, or services by an identified
sponsor
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5. Advertising
Setting Advertising Objectives
An advertising objective is a specific communication
task to be accomplished with a specific target
audience during a specific time
Objectives
• Inform
• Persuade
• Remind
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6. Major Types of Advertising
Designed to enhance a company’s
Designed to enhance a company’s
Institutional
Institutional image rather than promote a
image rather than promote a
Advertising
Advertising particular product.
particular product.
Product
Product Designed to tout the benefits of a
Designed to tout the benefits of a
Advertising
Advertising specific good or service.
specific good or service.
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7. Major Types of Advertising
a) Institutional Advertising
-A form of advertising designed to
enhance a company’s image rather
than promote a particular product.
-a.k.a Corporate Advertising
-To maintain favorable attitude and
image towards the company
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8. Major Types of Advertising
b) Product Advertising
-A form of advertising that touts
the benefits of specific good or
service
-Consist of 4 types of Product
Advertising:
i. Pioneering Advertising
ii. Competitive Advertising
iii. Comparative Advertising
iv. Reminder Advertising
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9. Product Advertising
i. Pioneering/ Informative Advertising
To stimulate primary demand for a new product or
product category (introductory stage)
ii. Competitive Advertising
To influence demand for a specific brand to compete with
other competitors’ brands (Growth stage)
iii. Comparative Advertising
Compares between two or more competing brands on
one or more specific attributes (Maturity stage)
iv. Remainder Advertising
Advertising that are aim to help maintain customer
relationships and keep customers thinking about the
product. It is important with mature products.
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10. Creative Decisions
Identify
Identify
product benefits
product benefits
Develop and evaluate
Develop and evaluate
advertising appeals
advertising appeals
Execute
Execute
the message
the message
Evaluate the
Evaluate the
campaign’s effectiveness
campaign’s effectiveness
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11. Creative Decisions in Advertising
(McDaniel, Lamb, Hair)
1. Identifying Product Benefits
-The goal of advertising is to sell the
benefits of the product, not its attributes.
-An attributes is simple feature of the
product e.g: easy-open package or
special formulation
-Product benefit is what the consumer
will achieve by using the product.
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12. Creative Decisions in Advertising
(McDaniel, Lamb, Hair)
2. Developing & Evaluating Advertising
Appeals
-Advertising appeal-A reason for a
person to buy a product
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13. Common Advertising Appeals
Love/
Love/
Profit
Profit Romance
Romance
Other
Other Health
Health
Environ-
Environ-
mental
Common
Common
mental Fear
conscious-
conscious- Appeals
Appeals Fear
ness
ness
Vanity/
Vanity/ Admiration
Admiration
Egotism
Egotism
Fun/
Fun/ Convenience
Convenience
Pleasure
Pleasure
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14. Creative Decisions in Advertising
(McDaniel, Lamb, Hair)
3. Executing the Message.
-Is the way the advertisement
portrays its information
-AIDA plan is a good blueprint for
executing advertising massage
-An Ad must immediately draw the
reader’s, viewer’s, or listener’s
attention.
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15. Executing the Message
Scientific
Scientific Slice-of-Life
Slice-of-Life
Musical
Musical Lifestyle
Lifestyle
Demon-
Common
Common Spokes-
Spokes-
Demon- person/
stration
stration Executional
Executional person/
Testimonial
Testimonial
Styles
Styles
Mood or
Mood or Fantasy
Fantasy
Image
Image Real/
Real/
Animated
Animated Humorous
Humorous
Product
Product
Symbols
Symbols
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16. Listerine Uses a Slice-of-Life Execution
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17. Apple Uses a Testimonial
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18. Mentadent Uses a Demonstration
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19. Jeep Uses Imagery/ fantasy for the Wrangler
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20. Creative Decisions in Advertising
(McDaniel, Lamb, Hair)
4. Post-campaign Evaluation
-Have to review the impact of the
ad in term of sales, market share or
awareness.
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21. Major Types of Advertising
Media
Newspapers
Newspapers
Magazines
Magazines
Radio
Radio
Television
Television
Outdoor Media
Outdoor Media
Internet
Internet
Alternative Media
Alternative Media
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22. Television Pros and Cons
Advantages Disadvantages
Mass coverage
Mass coverage Low selectivity
Low selectivity
High reach
High reach Short message life
Short message life
Impact of sight, sound
Impact of sight, sound High absolute cost
and motion High absolute cost
and motion
High prestige
High prestige High production cost
High production cost
High production cost
High production cost
Low cost per exposure
Low cost per exposure Clutter
Clutter
Attention getting
Attention getting
Favorable image
Favorable image
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23. Radio Pros and Cons
Advantages Disadvantages
Local coverage
Local coverage
Local coverage
Local Audio only
Audio only
Low cost
Low cost Clutter
Clutter
High frequency
High frequency Low attention getting
Low attention getting
Flexible
Flexible Fleeting message
Fleeting message
Low production cost
Low production cost
Well-segmented audience
Well-segmented audience
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24. Magazine Pros and Cons
Advantages Disadvantages
Long lead time for
Long lead time for
Segmentation potential
Segmentation potential ad placement
ad placement
Quality reproduction
Quality reproduction Visual only
Visual only
High information content
High information content Lack of flexibility
Lack of flexibility
Longevity
Longevity
Multiple readers
Multiple readers
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25. Newspaper Pros and Cons
Advantages Disadvantages
High coverage
High coverage Short life
Short life
Low cost
Low cost Clutter
Clutter
Short lead time for
Short lead time for Low attention getting
Low attention getting
placing ads
placing ads
Ads can be placed in
Ads can be placed in Poor reproduction quality
interest sections Poor reproduction quality
interest sections
Timely (current ads)
Timely (current ads) Selective reader exposure
Selective reader exposure
Reader controls exposure
Reader controls exposure
Can be used for coupons
Can be used for coupons
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29. PR
• Is the element in the promotional mix that
evaluating public attitudes, identifies issues that
may elicit public concern, and executes programs
to gain public understanding and acceptance
(McDaniel, Lamb, Hair)
• Building good relations with the company’s
various publics by obtaining favorable publicity,
building up a good corporate image, and handling
or heading off unfavorable rumors, stories and
events (Kotler and Armstrong)
• Public relations is used to promote product,
people, ideas, and activities
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30. The Role of Public Relations
Evaluates public attitudes
Evaluates public attitudes
Identifies issues of public concern
Identifies issues of public concern
Executes programs to gain public acceptance
Executes programs to gain public acceptance
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31. Public Relations functions
• Press relations or press
agency
• Product publicity
• Public affairs
• Lobbying
• Investor and Employee
relations
• Development
• Crisis Management
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32. Public Relations
Press relations or press agency
involves the creation and placing of
newsworthy information to attract
attention to a person, product, or
service
Product publicity involves publicizing
specific products
Public affairs involves building and
maintaining national or local
community relations
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33. Public Relations
Lobbying involves building and maintaining
relations with legislators and government
officials to influence legislation and regulation
Investor relations involves maintaining
relationships with shareholders and others in the
financial community
Development involves public relations with donors
or members of nonprofit organizations to gain
financial or volunteer support
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35. Major PRs Tools
1. New product publicity
2. Product placement
3. Consumer Education
4. Event sponsorship
5. Issue Sponsorship
6. Internet Web sites
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37. Sales Promotion
Sales promotion refers to the
short-term incentives to encourage
purchases or sales of a product or
service:
– Consumer promotions
– Trade promotions
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38. Sales Promotion
• Consumer Sales promotion
Targeted to the consumer market or
final users
• Trade Sales promotion
Directed to members of the
marketing channel members,
retailers and wholesalers
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39. Uses of Sales Promotion
Immediate purchases
Immediate purchases
Increase trial
Increase trial
Boost consumer inventory
Boost consumer inventory
Encourage repurchase
Encourage repurchase
Increase ad effectiveness
Increase ad effectiveness
Encourage brand loyalty
Encourage brand loyalty
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40. Tools for Sales Promotion
CONSUMER TRADE
Coupons and Rebates
Coupons and Rebates Trade Allowances
Trade Allowances
Premiums
Premiums Push Money
Push Money
Loyalty Marketing Programs
Loyalty Marketing Programs Training
Training
Contests & Sweepstakes
Contests & Sweepstakes Free Merchandise
Free Merchandise
Sampling
Sampling Store Demonstration
Store Demonstration
Point-of-Purchase Promotion
Point-of-Purchase Promotion Conventions & Trade Shows
Conventions & Trade Shows
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41. Tools for Sales Promotion
• Samples offer a trial amount of a
product
• Coupons are certificates that give
buyers a saving when they purchase
specified products
• Cash refunds are similar to coupons
except that the price reduction occurs
after the purchase
• Price packs offer consumers savings off
the regular price of a product
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42. Tools for Sales Promotion
• Premiums are goods offered either for free or
at low price
• Advertising specialties are useful articles
imprinted with the advertiser’s name, logo, or
message that are given as gifts to consumers
• Point-of-purchase promotions include
displays and demonstrations that take place at
the point of sales
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43. Samples are often distributed with local
newspapers
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44. Armor All Uses an On-Package
Sample
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45. Tools for Sales Promotion
Contests, sweepstakes, and games
give consumers the chance to win
something—such as cash, trips, or
goods—by luck or through extra effort
• Contests require an entry by a consumer
• Sweepstakes require consumers to submit
their names for a drawing
• Games present consumers with something
that may or may not help them win a prize
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49. Personal Selling
The Role of the Sales Force
Personal selling is the interpersonal
part of the promotion mix and can
include:
• Face-to-face communication
• Telephone communication
• Video or Web conferencing
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50. Personal Selling
The Nature of Personal Selling
Salespeople are an effective link
between the company and its
customers to produce customer
value and company profit by:
• Representing the company to customers
• Representing customers to the company
• Working closely with marketing
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51. Advantages of Personal
Selling
Detailed explanation or
demonstration
Variable sales message
Directed at qualified prospects
Controllable adjustable selling
costs
Effective at obtaining sale and
gaining customer satisfaction
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52. The Personal Selling
Process
The goal of the personal selling
process is to get new customers
and obtain orders from them
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53. The Personal Selling Process
Approaching
Developing and
The customer
Generating Leads Qualifying leads Proposing
and probing
solutions
needs
Closing the Handling
Following up
sale objection
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54. The Personal Selling Process
1) Prospecting identifies qualified potential
customers through referrals from:
• Customers
• Suppliers
• Dealers
• Internet
It also can be done by networking using friends and
business contact
Current way-Telemarketing
-Cold marketing- a form of lead
generation which the salesperson approaches
potential buyers without any prior knowledge of
the prospects’ needs or financial status
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55. The Personal Selling Process
2) Qualifying is identifying good
customers and screening out poor
ones by looking at:
• Financial ability
• Volume of business
• Needs
• Location
• Growth potential
• Receptivity and accessibility
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56. The Personal Selling Process
3) Approach is the process where the
salesperson meets and greets the buyer
and gets the relationship off to a good
start and involves the salesperson’s:
• Appearance
• Opening lines
• Follow-up remarks
Pre-approach-A process that describes the
“homework” that must be done by a sales
person before he or she contact a person
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57. The Personal Selling Process
4) Developing and Proposing solution
Presentation is when the salesperson
tells the product story to the buyer,
presenting customer benefits and
showing how the product solves the
customer’s problems
• Need-satisfaction approach: Buyers
want solutions and salespeople should
listen and respond with the right
products and services to solve customer
problems
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58. The Personal Selling
Process
5)Handling objections is the process
where salespeople resolve problems that
are logical, psychological, or unspoken.
Use fundamentals of FEEL, FELT, FOUND
e.g: “I see how you FEEL! Other have FELT
the same way too until they FOUND….”
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59. Handling Objections
View objections as
View objections as
requests for information
requests for information
Anticipate
Anticipate
specific objections
specific objections
Use the objection
Use the objection
to close the sale
to close the sale
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60. The Personal Selling Process
5) Closing the sale
- Process where salespeople should
recognize signals from the buyer—
including physical actions,
comments, and questions—to close
the sale
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61. The Personal Selling Process
• 7) Following up
Follow-up is the last step in which the
salesperson follows up after the sale
to ensure customer satisfaction and
repeat business
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62. Following Up
Ensure delivery
Ensure delivery
schedules are met
schedules are met
Goods or service perform
Goods or service perform
as promised
as promised
Employees are trained
Employees are trained
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63. Sales Management
Responsibilities
Define sales goals and sales process
Define sales goals and sales process
Determine sales force structure
Determine sales force structure
Recruit and train sales force
Recruit and train sales force
Compensate and motivate sales force
Compensate and motivate sales force
Evaluate sales force
Evaluate sales force
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64. Direct Marketing
• Connecting directly with carefully
targeted individual consumers to
both obtain an immediate response
and cultivate lasting customer
relationship
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Notas do Editor
Note to Instructor This YouTube ad is a bit of a blonde joke ad. It is a persuading ad for Mercedes.
Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using television as a medium. Some of the more noteworthy advantages are the fact that it is a mass medium with high reach and it is provides a combination of sight, sound, and motion. The major disadvantages of TV as an advertising medium are that it has a high absolute cost, potentially high production costs for commercials, and has become very cluttered. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using television as an advertising medium. Chapter 11 provides a more complete evaluation of television as a medium.
Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using radio as a medium. Some of the more noteworthy advantages are the fact that radio has local coverage, is low cost, and may result in high frequency of exposures. The major disadvantages of radio advertising is that it has high clutter, low attention getting ability, and provides only an audio message. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using radio as an advertising medium. Chapter 11 provides a more complete evaluation of broadcast media including radio.
Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using magazines as an advertising medium. Some of the more noteworthy advantages of magazines as advertising media vehicles are the fact that they have good potential for segmentation, provide quality reproduction, and have longevity. The major disadvantages are it they have long lead times, provide only a visual message, and often lack flexibility. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using magazines. Chapter 12 provides a more complete evaluation of print media including magazines.
Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using newspapers as a medium. Some of the more noteworthy advantages are the fact that they have good potential for high coverage, the cost is relatively low, and they have short lead times. The major disadvantages of newspapers are that they have a short reading life, high levels of advertising clutter, and may have low attention getting ability. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using newspapers as an advertising medium. Chapter 12 provides a more complete evaluation of newspapers.
Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using outdoor as an advertising medium. Some of the more noteworthy advantages are the fact that outdoor ads are location specific, easily noticed, and allow for high repetition. The major disadvantages are that outdoor has a short exposure time, can accommodate only short messages, and may have a poor image. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using outdoor advertising. Chapter 13 provides a more complete evaluation of outdoor media.
Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using the Internet as an advertising medium. Some of the advantages of the Internet are the fact the user selects the information, is usually attentive and involved, and the medium is interactive. The major disadvantages of the Internet are limited creative capabilities, web snarl, and a lack of valid measurement techniques. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using the Internet as an advertising medium. Chapter 15 provides a more complete evaluation of the Internet.
Relation to text This slide relates to the material on pp. 193-94 Summary Overview This slide shows an ad for Ford that is designed to inform readers of the efforts the company takes in the fight against breast cancer. Use of this slide This ad can be used to demonstrate how companies have different objectives for their advertisements. The objective of corporate advertising for companies such as Ford Motor Company is to enhance their image and generate goodwill rather than to directly generate sales.
Note to Instructor This is a Web link to promomagazine.com. It is worth exploring with the students as it give excellent current examples of promotions.
Note to Instructor Event marketing is on the rise. The text gives an example of Charmin: P&G recently sponsored a holiday event promotion for its Charmin brand in New York’s Times Square, where it can be very difficult to find a public restroom. For the second year running, P&G set up 20 sparkling clean Charmin-themed mini-bathrooms, each with its own sink and a bountiful supply of Charmin. The event turned out to be the ultimate in experiential marketing—touching people in places advertising wouldn’t dare to go. More than 420,000 people gratefully used the facilities and privately voted for the Charmin they preferred (Charmin Ultra Soft or Ultra Strong).
Relation to text This slide relates to material on pp. 518-519 of the text. Summary Overview Contests and sweepstakes are an increasingly popular consumer-oriented promotion. There are differences between contests and sweepstakes as stated. Contest – consumers compete for prizes or money on the basis of skill or ability, proof of purchase is generally required to enter or an entry form must be used Sweepstake – winners are determined purely by chance and no proof of purchase is required to enter Use of this slide This slide can be used to discuss the use of contests and sweepstakes. They are increasing in popularity as these promotions have appeal and glamour that other sales promotion tools such as cents-off coupons lack. Marketers like these type of promotions because they are perceived to be exciting and attract large numbers of consumers.
Note to Instructor This Web link is to one of many professional sales organizations—it is important to mention what a well respected field sales is as students often think of in-store retail sales only. Discussion Question Who has held a sales position? What were your responsibilities? You can the ask them to describe the job so you can use it as an example in future slides. Many students will have worked at inside sales positions and many of them have cold called extensively as part of their jobs. You can also ask them how they were paid—salary, commission, bonus? This will tie into future slides.
Note to Instructor Examples of people who do the selling include: Salespeople Sales representatives District managers Account executives Sales engineers Agents Account development reps
Note to Instructor When handling objections from buyers, salespeople should: Be positive Seek out hidden objections Ask the buyer to clarify any objections Take objections as opportunities to provide more information Turn objections into reasons for buying
Note to Instructor Discussion Question How does a salesperson can close a sale? Closing techniques can include: Asking for the order Reviewing points of agreement Offering to help write up the order Asking if the buyer wants this model or another one Making note that the buyer will lose out if the order is not placed now Offering incentives to buy, including lower price or additional quantity