AB219 Marketing Unit Seven Tonight’s Focus: Advertising, Public Relations, Personal Selling and Sales Promotion

What do I have to do this week? Reading: Chapters 12 & 13. Discussion: Focus on Ad Campaigns! Quiz (Review): On Unit 6 & 7 material. Research Project: Continue work & submit it with “Promotion” piece completed! Professor’s Tip: Time to continue working on your Research Project and related research! Not intended to be completed in a few days, but over at least 2 weeks! Remember: 11:59 pm is the weekly deadline.

U7 Research Project Submission

Major Component of U7 R.P. Submission Promotion (U7 & U8) Advertising Public Relations Personal Selling Sales Promotion Online and Direct Marketing Discuss what is needed for an IMC (Integrated Marketing Communications) plan. How is an IMC strategy evident in the Promotional Component of your brand? Analyze advertising plans in terms of message and/or execution.

AB219 Marketing U8 Research Project Need Help ………….. Contact Me! :: :: :: ::

Discussion “Best Practices” Major Discussion Requirements include: 1st detailed original response (answers discussion questions) no later than Saturday of unit. EXCEED minimum 100 word initial post (usually will have to exceed this minimum to adequately respond to the question(s) asked.) Post on at least 3 different days. Respond least 2 of your classmates (These posts must also include the substance from our weekly focus and demonstrate your application of the material we are learning.) Minimum 3 total posts for each unit (1 st detailed original response, 2 peer responses). Remember: Relate Discussion to Reading & Weekly Focus. Interactive discussions, so please answer any questions that I or classmates may ask.

Let’s Test our Knowledge!

U7.1: Supply Chain Management is defined as long term partnerships among marketing channel members to do which of the following: a)reduce inefficiencies b)reduce costs c)reduce redundancies d)develop innovative approaches to satisfy customers. e)All of the above

U7.2: Wrigley’s Gum is a product sold nationwide through multiple retail outlets and chains. This is an example of what type of distribution coverage intensity: a)Aggressive b)Selective c)Adaptive d)Exclusive e)Intensive

Review of Unit 6 Just reviewed! Questions or concerns? How is the 2nd Research Project coming along? Lets start discussing Unit 7!

The Promotion Mix Four elements of the promotional mix : (out of 5 total elements) Advertising Public Relations Personal Selling Sales Promotion The fifth element: Direct Marketing will be explored in Unit 8.

Integrated Marketing Communications Assuring consistent messages through the coordination of promotional efforts The objective is to generate maximum informational and persuasive impact Generally, all five of the promotional mix are used to get maximum effect- advertising, personal selling, sales promotion, direct marketing and publicity

Promotion mix strategies: Push vs. Pull A “Push” strategy is when budgets are directed to resellers, often through personal selling A “Pull” strategy is when budgets are directed to the consumer, often through advertising and promotion

Advertising Paid non-personal communication through mass media Advantages -Cost efficient on a per person reached basis -Highly flexible, and allows for repetition -Adds value -Lends legitimacy Disadvantages -Out of pocket outlay is high -Hard to measure sales effect unless source coding is used -Feedback usually slow

Types of Advertising Institutional Advertising Institutional Advocacy Product Advertising Product Pioneer Competitive Comparative Reminder Reinforcement Often, you will see a combination of Institutional & Product Advertising in an advertisement. You also see the different types, under each, combined as well.

Major Advertising Objectives Inform Persuade Remind Good way to remember this is R.I.P.

Key Ingredients of a Strong Ad Campaign Meaning Believability Distinctiveness

Budget Decisions Objective and task Percent of sales Competitive parity Affordable Arbitrary Historical with adjusting for inflation

Developing Advertising Strategy Two major elements: Creating advertising messages & Media selection Key issues in developing advertising strategy: Breaking through the clutter The need to make advertisements that break through clutter

Message Strategy Message should be: Relevant and important Believable Executable Able to convey competitive advantage Memorable Undertake some effect to move consumer towards some action Consistent with other parts of the promotional mix

Media Decisions Sets Reach, Frequency and Impact Objectives Select Major Media Types Specific methods: Media Vehicles and Schedule Set Media Scheduling Patterns

Television Advantages Large audiences Low cost per person reached Sight and sound Visible Confers legitimacy Disadvantages High out of pocket cost Perishable Waste coverage

The Internet Advantages Extremely selective Interactive Low cost Immediate feedback Disadvantages Viewers controls viewing Fairly low impact on viewer

Newspapers Advantages Reaches large audiences Purchased to be read Short lead time Frequent publication Believable Good for comparison Can cover local areas Disadvantages Not selective socioeconomic ally Short life Poor reproduction Cluttered Not as popular as they once were

Direct Mail Advantages Very selective Flexible and selectable segments Can be personalized Can arrive in solo package Disadvantages Considered as junk mail High cost per exposure

Magazines Advantages Selectivity Good reproduction Long life Prestigious Full color ads Disadvantages High absolute dollar cost Long lead time

Radio Advantages Inexpensive Flexible Targeted Disadvantages Audio only Background medium Short life

Outdoor Advertising Advantages Flexible Can provide heavy exposure Low cost per exposure Good placement selectivity Disadvantages No good audience selectivity Creative limitations People may ignore

Measuring Advertising Effectiveness A critical part of every advertising campaign. Provides feedback on whether the campaign objectives were fulfilled. The effectiveness is difficult to measure, except for direct mail

Let’s Test our Knowledge!

U7.3: A major goal of integrated marketing communications (IMC) is to a)decentralize promotional efforts so that regions may address their specific customers’ needs appropriately. b)make better use of mass media advertising to reach its target audience. c)strive to use promotional resources efficiently. d)send a consistent message to customers. e)utilize more precisely targeted promotional tools to reach different customers.

U7.4: The five primary categories or tools in the promotion mix include all of the following except: a)Personal Selling b)Public Relations/Publicity c)Audience Segmentation d)Sales Promotion & Direct Marketing e)Advertising

Public Relations Communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. - Also called publicity. Individual brands generally have publicity/public relations done at the corporate level. Some people call this “free advertising,” but is can be expensive and must be done well to be effective. Examples?

Personal Selling Paid Personal Communication Advantages -Provides significant impact on customers due to personal contact -Interactive - Allows for immediate impact and adjustment Disadvantages -Costly - most costly part of promotion based on people reached If it is so costly, why is it done?

Steps in Managing the Sales Force Designing sales force strategy and structure - Structure: Territory, Product or Customer-based - Size of sales force - Outside or inside sales force - Individual or team selling Recruiting and selecting salespeople Training salespeople

Steps in Managing the Sales Force (cont.) Compensating salespeople - Commission - Salary - Combination Supervising and motivating salespeople Evaluating salespeople’s performance

The Personal Selling Process Prospecting Pre-approach - Research is important Approach Presentation Handling objections Closing the Sale Follow-up - To help ensure subsequent purchases

Sales Promotion Direct incentive to buy Growing rapidly due to its effectiveness May be directed at salespeople, resellers, and consumers. - So, anywhere in the distribution chain that we focused on last week. Examples include: free samples, coupons, contests, premiums, rebates, buy one get one frees, frequent buyer programs, etc.

What do I have to do this week? Reading: Chapters 12 & 13. Discussion: Focus on Ad Campaigns! Quiz (Review): On Unit 6 & 7 material. Research Project: Continue work & submit it with “Promotion” piece completed! Professor’s Tip: Time to continue working on your Research Project and related research! Not intended to be completed in a few days, but over at least 2 weeks! Remember: 11:59 pm is the weekly deadline.

Any Questions? Thank you for attending! See you next week.... Same Place, Same Time!