BUSI 406 PRINCIPLES OF MARKETING: ADVERTISING, PUBLICITY, AND SALES PROMOTION

Today’s Agenda  Any questions?  Chapter 14: “Personal Selling” Guest Speaker – KFBS Professor Dave Roberts for Wednesday’s class in Koury Auditorium at 12:30-1:45 and at 5:00-6:15 -- (our sections will not meet Wednesday at our regular times)  Let’s Review  Cover material from Ch. 15

Personal Selling Preview for Wednesday  What is personal selling? Why is it important?  Types of personal selling  Order Getting, Order Taking and Supporting  What role does the internet play in sales?  Hiring & Training salespeople  Importance of effective listening  Compensating and motivating salespeople  Personal selling process  Sales presentation approaches  Prepared, Consultative & Selling Formula  Importance of asking the right question and effective listening

Not very effective listening… 

Active Listening Source: Mind Tools Pay attention. Give the speaker your undivided attention, and acknowledge the message. Recognize that non-verbal communication also "speaks" loudly. Look at the speaker directly. Put aside distracting thoughts. Don't mentally prepare a rebuttal! Avoid being distracted by environmental factors. "Listen" to the speaker's body language. Refrain from side conversations when listening in a group setting.

Show that you are listening. Use your own body language and gestures to convey your attention.  Nod occasionally.  Smile and use other facial expressions.  Note your posture and make sure it is open and inviting.  Encourage the speaker to continue with small verbal comments like “yes” and “uh huh.”

Provide feedback. Our personal filters, assumptions, judgments, and beliefs can distort what we hear. As a listener, your role is to understand what is being said. This may require you to reflect what is being said and ask questions. Reflect what has been said by paraphrasing. "What I'm hearing is…" and "Sounds like you are saying..." are great ways to reflect back. Ask questions to clarify certain points. "What do you mean when you say..." "Is this what you mean?" Summarize the speaker's comments periodically.

Defer judgment. Interrupting is a waste of time. It frustrates the speaker and limits full understanding of the message.  Allow the speaker to finish.  Don't interrupt with counter arguments.  Empathize with their point of view  Understand what is important to them

Respond Appropriately. Active listening is a model for respect and understanding. You are gaining information and perspective. You add nothing by attacking the speaker or otherwise putting him or her down.  Be candid, open, and honest in your response.  Assert your opinions respectfully.  Treat the other person as he or she – or you -- would want to be treated.

Strategy Planning, Advertising, Publicity & Sales Promotion CH 15: Advertising, Publicity & Sales Promotion Advertising spending Advertising strategy decisions Advertising & the law Sales promotion decisions CH 14: Personal Selling and Customer Service CH 13: Promotion Intro. To Integrated Marketing Communications Publicity & communic- ation

Today’s Goals  What is Advertising?  Major decisions in advertising  Advertising objectives  Choosing the “best” medium  Measuring Advertising effectiveness  Publicity  Sales Promotions

What Is Advertising? Advertising is a paid, mass attempt to persuade Advertising is a paid, mass attempt to persuade

Advertising  The total spending on advertising is big, and growing internationally.  In the US, advertising expenditures have passed the $271billion mark— over 43% of the total amount spent worldwide. Advertising only accounts for a small percentage of what people pay for goods and services. U.S. corporations spend an average of only about 2.5 percent of sales dollars on advertising….Worldwide it is even less… Advertising spending varies greatly across product categories » In the US, ~460,000 people work directly in advertising. » Only about half of these people work for advertising agencies. » The rest work in media and other related functions.

Advertising Objectives Obtain Outlets Ongoing Contact Support Sales Force Get Immediate Action Introduce New Products AdvertisingObjectives Should be Specific Maintain Relationships Position Brands

Objectives Determine the Kinds Of Advertising Institutional Advertising Pioneering Advertising Product Advertising Competitive Advertising Reminder Advertising Types of Advertising

Competitive Advertising Emphasizes Selective Demand

Competitive Ads That Are Comparative

Reminder Advertising

Choosing The “Best” Medium - How To Deliver The Message Promotion Objectives Target Market Characteristics Funds Available Nature of the Media

Advertising and the Internet Click Fraud Pay per click advertising Pay per click advertising Behavioral Targeting Behavioral Targeting Key Issues Key Issues Direct Response Desired Direct Response Desired

Planning The “Best” Message - What To Communicate  Specifying the copy thrust - what words and illustrations should we communicate

AIDA Obtain Action Arouse Desire Hold Interest Get Attention

Measuring Advertising Effectiveness Is Not Easy  Success depends on the total marketing mix, not just advertising.  Research and testing may improve success.  Advertising evaluation  Measuring the communication effect (pretest, split cable, etc.)  Measuring the sales effect  Most consumers (B2C and B2B) can’t recall or discount the role and effect of advertising on their subsequent behavior

How to Avoid Unfair Advertising Standards Are Changing Standards Are Changing Government May Say What’s Fair Support for Claims Is Fuzzy Support for Claims Is Fuzzy FTC Controls Unfair Practices FTC Controls Unfair Practices

Publicity Getting attention & holding interest Viral videos Direct-to-consumer press releases Articles in the press Managing ongoing customer relationships Social media like Facebook Blogs Online communities Podcasts, webcasts, webinars Arousing desire & obtaining action Customer reviews Case studies Webinars Developing a desired positioning Viral videos Games Branded services Commercial white papers

How to Get Your Messages Retweeted (from Professor Claudia Kubowicz-Malhotra)  Don’ts Asking Questions, Hashtags, Links, Contests  Dos 1. Size matters: Leave room. 2. Grab their attention: Make them read your message. 3. Just ask to be retweeted: There is nothing simpler. 4. Make it personal: Humanize your brand. 5. Share: Validate yourself. 6. Make it practical: Provide news people can use. 7. Save people money: Offer a deal. 8. Engagement matters: Make it relevant and topical. 9. Act now: Create a sense of anticipation.

Sales Promotion Tries to Spark Immediate Interest Contests Coupos Aisle displays Samples Trade shows Point-of-purchase materials Banners & streamers Frequent buyer programs Sponsored events Contests Coupos Aisle displays Samples Trade shows Point-of-purchase materials Banners & streamers Frequent buyer programs Sponsored events Aimed at consumers or users Price deals Promotion allowances Sales constests Calendars & gifts Trade shows Meetings Catalogs Merchandising aids Videos Price deals Promotion allowances Sales constests Calendars & gifts Trade shows Meetings Catalogs Merchandising aids Videos Aimed at wholesalers or retailers Contests & Bonuses Meetings Portfolios & Displays Sales aids Training materials Contests & Bonuses Meetings Portfolios & Displays Sales aids Training materials Aimed at company’s own sales force

Sales Promotions

Today’s Take-Aways  Advertising is paid mass marketing.  Managers must set advertising objectives because these objectives drive which advertising methods should be used.  Measuring effectiveness is difficult!  Be sure you have strong claim substantiation before using comparative advertising  There are lots opportunities in creating positive publicity, but must be aware of the risks.  Sales promotions are popular, but need to manage trade-off between attractive offers and brand equity.  Blending all promotional efforts is essential in creating a successful IMC!