chapter 10

DHD2009 MKT243 Fundamental Of Marketing

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Fundamental Of Fundamental Of MarketingMarketingMKT243MKT243

Chapter 10Chapter 10Advertising, Sales Promotion, Advertising, Sales Promotion,

Public Relation, Personal Public Relation, Personal Selling and Direct MarketingSelling and Direct Marketing


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Slide OutlineSlide 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 Process2. Sales Management


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AdvertisingAdvertising


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Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor



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Objectives

• Inform• Persuade• Remind

Setting Advertising Objectives

An advertising objective is a specific communication task to be accomplished with a specific target

audience during a specific time

http://www.youtube.com/watch?v=JwGsDbPgBrE


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Major Types of AdvertisingMajor Types of Advertising

InstitutionalAdvertising

ProductAdvertising

Designed to enhance a company’s image rather than promote a

particular product.

Designed to tout the benefits of a specific good or service.


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Major Types of AdvertisingMajor Types of Advertisinga) 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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Major Types of AdvertisingMajor Types of Advertisingb) Product Advertising

-A form of advertising that touts the benefits of specific good or service-Consist of 4 types of Product Advertising:

i. Pioneering Advertisingii. Competitive Advertisingiii. Comparative Advertisingiv. Reminder Advertising


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Product AdvertisingProduct Advertisingi. Pioneering/ Informative Advertising

To stimulate primary demand for a new product or product category (introductory stage)

ii. Competitive AdvertisingTo influence demand for a specific brand to compete with other competitors’ brands (Growth stage)

iii. Comparative AdvertisingCompares between two or more competing brands on one or more specific attributes (Maturity stage)

iv. Remainder AdvertisingAdvertising 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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Creative DecisionsCreative Decisions

Develop and evaluateadvertising appeals

Execute the message

Evaluate thecampaign’s effectiveness

Identify product benefits


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Creative Decisions in Advertising Creative Decisions in Advertising (McDaniel, Lamb, Hair)(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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2. Developing & Evaluating Advertising Appeals-Advertising appeal-A reason for a person to buy a product


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Common Advertising AppealsCommon Advertising Appeals

Vanity/Egotism

Other

Environ-mental

conscious-ness

Profit

Fun/Pleasure

Admiration

Health

Love/Romance

Convenience

CommonCommonAppealsAppeals Fear


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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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Executing the MessageExecuting the Message

Mood or Image

Musical

Demon-stration

Scientific

Real/AnimatedProductSymbols

Fantasy

LifestyleSlice-of-Life

Humorous

CommonCommonExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial


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Listerine Uses a Slice-of-Life ExecutionListerine Uses a Slice-of-Life Execution


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Apple Uses a TestimonialApple Uses a Testimonial


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Mentadent Uses a DemonstrationMentadent Uses a Demonstration


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Jeep Uses Imagery/ fantasy for the WranglerJeep Uses Imagery/ fantasy for the Wrangler


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4. Post-campaign Evaluation-Have to review the impact of the ad in term of sales, market share or awareness.


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Major Types of Advertising Major Types of Advertising MediaMediaNewspapers

Magazines

Radio

Television

Outdoor Media

Internet

Alternative Media


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Short message life

High production cost

Low selectivity

High absolute cost

Clutter

Mass coverage

High reach

Impact of sight, sound and motion

High prestige

Low cost per exposure

Attention getting

Favorable image

High production cost

High absolute cost

Short message life

Low selectivity

Favorable image

Attention getting

Low cost per exposure

High prestige

Impact of sight, sound and motion

High reach

Mass coverage

Television Pros and ConsTelevision Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages


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Clutter

Fleeting message

Audio only

Low attention getting

Local coverage

Low cost

High frequency

Flexible

Low production cost

Well-segmented audience


Clutter

Audio only

Well-segmented audience

Low production cost

Flexible

High frequency

Low cost

Local coverage

Radio Pros and ConsRadio Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages


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Visual only

Long lead time for ad placement

Lack of flexibility

Segmentation potential

Quality reproduction

High information content

Longevity

Multiple readers

Visual only

Long lead time for ad placement

Multiple readers

Longevity

High information content

Quality reproduction

Segmentation potential

Magazine Pros and ConsMagazine Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages


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Clutter

Poor reproduction quality

Short life


High coverage

Low cost

Short lead time for placing ads

Ads can be placed in interest sections

Timely (current ads)

Reader controls exposure

Can be used for coupons

Selective reader exposure

Poor reproduction quality


Clutter

Short life

Can be used for coupons

Reader controls exposure

Timely (current ads)

Ads can be placed in interest sections

Short lead time for placing ads

Low cost

High coverage

Newspaper Pros and ConsNewspaper Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages


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Short ads

Local restrictions

Short exposure time

Poor image

Location specific

High repetition

Easily noticed Poor image

Short ads

Short exposure time

Easily noticed

High repetition

Location specific

Outdoor Pros and ConsOutdoor Pros and Cons

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

AdvantagesAdvantages DisadvantagesDisadvantages


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Websnarl (crowded access)

Few valid measurement techniques

Limited creative capabilities

Technology limitations

Limited reach

User selects product information

User attention and involvement

Interactive relationship

Direct selling potential

Flexible message platform

Few valid measurement techniques

Technology limitations

Websnarl (crowded access)

Limited creative capabilities

Flexible message platform

Direct selling potential

Interactive relationship

User attention and involvement

User selects product information

Internet Pros and ConsInternet Pros and Cons


AdvantagesAdvantages DisadvantagesDisadvantages


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Public RelationPublic Relation


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PRPR• 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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The Role of Public RelationsThe Role of Public RelationsEvaluates public attitudes

Identifies issues of public concern

Executes programs to gain public acceptance


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• Press relations or press agency

• Product publicity• Public affairs• Lobbying• Investor and Employee

relations• Development• Crisis Management

Public Relations functionsPublic Relations functions


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Public RelationsPublic RelationsPress 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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Public RelationsPublic RelationsLobbying 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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Public Relation Can Shape Corporate ImagesPublic Relation Can Shape Corporate Images



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Major PRs ToolsMajor PRs Tools1. New product publicity2. Product placement3. Consumer Education4. Event sponsorship5. Issue Sponsorship6. Internet Web sites


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Sales PromotionSales Promotion


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Sales PromotionSales PromotionSales 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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Sales PromotionSales Promotion• Consumer Sales promotion

Targeted to the consumer market or final users

• Trade Sales promotionDirected to members of the marketing channel members, retailers and wholesalers


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Uses of Sales PromotionUses of Sales PromotionImmediate purchases

Increase trial

Boost consumer inventory

Encourage repurchase

Increase ad effectiveness

Encourage brand loyalty


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Tools for Sales PromotionTools for Sales Promotion

Coupons and Rebates

Premiums

Loyalty Marketing Programs

Contests & Sweepstakes

Sampling

Point-of-Purchase Promotion

Trade Allowances

Push Money

Training

Free Merchandise

Store Demonstration

Conventions & Trade Shows

CONSUMER TRADE


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Tools for Sales PromotionTools 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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Tools for Sales PromotionTools 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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Samples are often distributed with local Samples are often distributed with local newspapersnewspapers


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Armor All Uses an On-Package Armor All Uses an On-Package SampleSample


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Tools for Sales PromotionTools for Sales PromotionContests, 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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Contests and SweepstakesContests and Sweepstakes


Contest: a promotion where consumers compete for prizes or money on the basis of skills or ability. Winners are determined by judging entries or ascertaining which entry comes closes to some predetermined criteria

Sweepstakes/games: a promotion where winners are determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are chosen by random selection from a pool of entries or generation of a number to match those held by game entrants.

Illegal in Malaysia!!!


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Trade Sales PromotionTrade Sales Promotion• Trade Allowance• Push money• Training• Free merchandise• Store demonstrations• Business meetings, conventions, and

trade shows


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Personal SellingPersonal Selling


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Personal SellingPersonal Selling

Personal selling is the interpersonal part of the promotion mix and can include:

• Face-to-face communication• Telephone communication• Video or Web conferencing

The Role of the Sales Force

http://www.navsp.com/


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Personal SellingPersonal SellingSalespeople 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

The Nature of Personal Selling


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Advantages of Personal Advantages of Personal SellingSelling

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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The Personal Selling The Personal Selling ProcessProcess

The goal of the personal selling process is to get new customers and obtain orders from them


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The Personal Selling ProcessThe Personal Selling ProcessGenerating Leads Qualifying leads

Approaching The customerand probing

needs

Developing andProposingsolutions

Following up Closing thesale

Handling objection


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The Personal Selling ProcessThe Personal Selling Process1) Prospecting identifies qualified potential

customers through referrals from:• Customers• Suppliers• Dealers• InternetIt also can be done by networking using friends and

business contactCurrent 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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The Personal Selling ProcessThe Personal Selling Process2) 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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The Personal Selling ProcessThe Personal Selling Process3) 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 remarksPre-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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The Personal Selling ProcessThe Personal Selling Process4) Developing and Proposing solutionPresentation 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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The Personal Selling The Personal Selling ProcessProcess

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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Handling ObjectionsHandling Objections

Use the objection to close the sale

Anticipate specific objections

View objections as requests for information


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The Personal Selling ProcessThe 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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The Personal Selling ProcessThe Personal Selling Process• 7) Following upFollow-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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Following UpFollowing Up

Employees are trained

Goods or service performas promised

Ensure delivery schedules are met


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Sales Management Sales Management ResponsibilitiesResponsibilities

Evaluate sales force

Compensate and motivate sales force

Recruit and train sales force

Determine sales force structure

Define sales goals and sales process


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Direct MarketingDirect Marketing• Connecting directly with carefully

targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationship

chapter 10

Documents

mkt243 fundamental

hillirwinadvantagesdisadvantagesmkt243

good potential

corporate

marketingcreative

complete evaluation

future slides

crowded access