2 Objectives Developing & Managing an Advertising Program Deciding on Media & Measuring EffectivenessSales PromotionPublic RelationPrinciples of Personal Selling
3 Major Decisions in Advertising Objectives SettingMajor Decisions in AdvertisingBudget DecisionsMessage DecisionsMedia DecisionsCampaign Evaluation
4 Advertising Objectives Specific Communication TaskAccomplished with a Specific Target AudienceDuring a Specific Period of TimeInformative AdvertisingBuild Primary DemandPersuasive AdvertisingBuild Selective DemandComparison AdvertisingCompares One Brand to AnotherReminder AdvertisingKeeps Consumers ThinkingAbout a Product.
5 The Five Ms of Advertising MessageMessage generationMessage evaluationand selectionMessage executionSocial-responsibilityreviewMediaReach, frequency,impactMajor media typesSpecific mediavehiclesMedia timingGeographicalmedia allocationMoneyFactors toconsider:Stage in PLCMarket shareand con-sumer baseCompetitionand clutterAdvertisingfrequencyProductsubstituta-bilityMissionSalesgoalsAdver-tisingobjectivesMeasure-mentCommuni-cationimpactSales
6 Advertising Budget Factors Market Share &Consumer BaseCompetition &ClutterStage in theProduct Life CycleAdvertisingFrequencyProductSubstitutability
7 Profiles of Major Media Types NewspapersAdvantages: Flexibility, timeliness; good local market coverage;broad acceptance, high believabilityLimitations: Short life; poor reproduction quality; smallpass-along audienceTelevisionAdvantages: Combines sight, sound, motion; high attention;high reach; appealing to sensesLimitations: High absolute costs; high clutter; fleeting exposure;less audience selectivityDirect MailAdvantages: Audience selectivity; flexibility, no ad compe-tition within same medium; allows personalizationLimitations: Relative high cost; “junk mail” image
8 Profiles of Major Media Types RadioAdvantages: Mass use; high geographic and demographicselectivity; low costLimitations: Audio only; fleeting exposure; lower attention;nonstandardized rates; fragmented audiencesMagazinesAdvantages: High geographic and demographic selectivity;credibility and prestige; high-quality reproduction;long life; good pass-along readershipLimitations: Long ad purchase lead time; waste circulation;no guarantee of positionOutdoorAdvantages: Flexibility; high repeat exposure; low cost;low message competitionLimitations: Little audience selectivity; creative limitations
9 Classification of Advertising Timing Patterns Concen-trated(1)(2)(3)LevelRisingFallingAlternating(4)Continuous(8)(7)(6)(5)(9)Inter-mittent(10)(11)(12)Number ofmessagesper monthMonth
10 Advertising Strategy Message Execution TestimonialEvidenceSlice of LifeTurning the “Big Idea” Into an Actual Ad to Capture the Target Market’s Attention and Interest.LifestyleTypicalMessageExecutionStylesScientificEvidenceFantasyTechnicalExpertiseMood orImagePersonalitySymbolMusical
11 Advertising Evaluation Advertising Program EvaluationAdvertising EvaluationCommunication EffectsIs the Ad Communicating Well?Sales EffectsIs the Ad Increasing Sales?
12 Why the increase in Sales Promotion? Growing retailer powerDeclining brand loyaltyIncreased promotional sensitivityBrand proliferationFragmentation of consumer marketShort-term focusIncreased managerial accountabilityCompetitionClutterRetailer - scanner data, industry consolidation -MFGs want to break throughLoyalty & Sensitivity & proliferation - we did thatFrag - more media, more targetedShort-term&Account - US Business, stock mkt, not BE
13 Long-Term Promotional Allocation 1020304050601986889092941996Year%t of total - 3 yr.MATrade PromoMedia AdvCons. PromoCox Direct 19th Annual Survey of Promotional Practices
14 Channels of Sales Promotions MANUFACTURERCONSUMERConsumerPromotionsRETAILERTradePromotionsPushPullRetailPromotions
15 Consumer Promotion Consumer-Promotion Objectives Consumer-Promotion ToolsEntice Consumers toTry a New ProductPoint-of-PurchaseDisplaysPremiumsPrice PacksCash RefundsCouponsSamplesPatronage RewardsGamesSweepstakesContestsAdvertisingSpecialtiesLure Customers AwayFrom Competitors’ ProductsGet Consumers to “Load Up’on a Mature ProductHold & Reward LoyalCustomersConsumer RelationshipBuilding
16 “Deal Proneness,” Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997 Examination of “deal proneness” among consumers in a supermarket settingSurveys & Grocery Receipts usedEight types of deals:Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon
17 “Deal Proneness,” Liechtenstein, Burton, & Netemeyer Cluster analysis yielded two interpretable results:49% are “deal prone,” 51% not24% High “Deal prone,” 50% intermediate, 26% deal insensitive“Deal-proneness” a generalized construct - (crosses type of promotion)Younger & Less educated more likely to be deal prone
18 Trade Promotions Trade-Promotion Tools Trade-Promotion Objectives SpecialtyAdvertisingItemsContestsFree GoodsBuy-BackGuaranteesAllowancesPrice-OffsPatronage RewardsPush MoneyDiscountsPremiumsDisplaysPersuade Retailers orWholesalers to Carry a BrandGive a Brand Shelf SpacePromote a Brand inAdvertisingPush a Brand to Consumers
20 Major Public Relations Tools Web SiteNewsPublicServiceActivitiesSpeechesCorporateIdentityMaterialsFather of PR was Edward Bernays, turns out he was Freud’s nephew! Value of some good brand publicity/movie placements:SPECIAL EVENTS:Reeses Pieces sales jumped 85% after E.T.Mumford High sold $1M in school shirts afterBeverly Hills CopCA. Raisin Board paid $25K for bus-stop sign and raisin eating scene in Back to the future.Coke and Pepsi scout out roles full time.SpecialEventsAudiovisualMaterialsWrittenMaterials
21 When might you decide to use Personal Selling? Tight budget (straight commission)Concentrated MarketFew buyersHigh value productProduct must be customizedPersonal contact importantMust demonstrate productProduct involves trade-in/up
22 Designing the Sales Force Sales force objectives Sales force strategySales force structureSales force sizeSales force compensation
23 Sales Force Structures TerritorialProductComplexityMarket
24 Workload Approach to Sales Force Size Classify customers by sizeDetermine desirable call frequenciesDetermine total sales calls needed per yearDetermine average number of sales calls per sales representative per yearDivide total by number per rep
25 Sales Force Compensation FixedVariableExpense AllowancesBenefits
26 Recruiting & selecting sales representatives Managing the Sales Force Training sales representativesSupervising sales representativesMotivating sales representativesEvaluating sales representatives
27 Time and Duty Analysis Preparation Travel Administration Selling Food & BreaksWaiting
29 Sources of Information Evaluating SalespeopleCallReportsWorkPlanSources ofInformationAnnualTerritoryMarketing Plan
30 Improving Sales Force Effectiveness Training in sales techniques & professionalismNegotiation skillsRelationship-building skills
31 The Zone of Agreement $ Final contract Zone of agreement Seller’s surplusBuyer’s surplusxFinalcontract$Seller’s reservationprice (seller wantss or more)Seller wants to movex to the rightsBuyer’s reservationprice (buyer wantsb or less)Buyer wants to movex to the leftb
33 Steps in the Selling Process Step 1. Prospecting and QualifyingSteps in the Selling ProcessStep 2. Pre-approachIdentifying and Screening For Qualified Potential Customers.Step 3. ApproachLearning As Much As PossibleAbout a Prospective CustomerBefore Making a Sales Call.Step 4. Presentation/ DemonstrationKnowing How to Meet the Buyerto Get the Relationship Offto a Good Start.Telling the Product “Story”to the Buyer, and Showing theProduct Benefits.
34 Steps in the Selling Process Step 5. Handling ObjectionsSteps in the Selling ProcessStep 6. ClosingSeeking Out, Clarifying, and Overcoming Customer Objections to Buying.Asking the Customerfor the Order.Step 7. Follow-UpFollowing Up After the Sale toEnsure Customer Satisfactionand Repeat Business.
35 Alternative Steps: Find ’em Sell ‘em Keep ‘em Grab ‘em Show ‘em Answer ‘emSell ‘emKeep ‘em