1. Advertising, Sales Promotions, and Personal Selling
Chapter 15
Advertising, Sales Promotions, and Personal Selling
Chapter 15 will focus on Advertising, Sales Promotions, and Personal Selling.

2. Chapter 15: Advertising, Sales Promotions, and Personal Selling
LEARNING OBJECTIVES
LO1 Describe advertising and three objectives of advertising
LO2 Summarize the regulatory and ethical issues of concern to advertisers
LO3 Explain how sales promotions supplement a firm’s IMC strategy
LO4 Describe personal selling and how it adds value for customers
LO5 Identify the steps in the personal selling process
These questions are the learning objectives guiding the chapter and will be explored in more detail in the following slides.

3. Autotrader.ca – the most cars in one place
LO1
In the ‘old days’ – newsprint magazine displayed in convenience store racks
Set out to modernize & to change consumers perceptions of its brand
Moved into the online world
An advertising campaign helped them to transition
Per chapter introduction: the case study focuses on the reinvention of auto-TRADER from the old newsprint magazine version to the newer, world of on-line websites.
The company needed to increase awareness & drive traffic to the new website.
They created an advertising campaign to highlight the ease of using the new digital platform to buy & sell used cars.
They came up with a new tagline, ‘The Most Cars in One Place’.
They used an integrated campaign featuring TV, radio, online ads, social media, & public relations.
The result was a very successful campaign that now sees more than 3.5 million visitors to the site each month.
AutoTrader now needs to ensure it stays top of mind with reminder-oriented advertising. .

4. Advertising – the aida model
LO1
Advertising – the aida model
The AIDA model provides a basis for understanding how marketing communications works. Consumers move through a readiness continuum. At each stage they need information to help them progress to the next stage.
The objective of some IMC campaigns may primarily be to generate awareness (e.g. new technology such as BluRay) while other campaigns aim to have consumers buy a new product (e.g. iPod Touch.)
Each IMC tool can be used to move consumers through a buyer readiness continuum in different ways. For example, advertising may do a good job of creating awareness and even knowledge for a company that offers marketing consulting services but it may require a call from a sales person at that company to convince a small business, new start-up venture or entrepreneur to enlist the services of that consulting company.
Ask students to pick a product. The decision to buy this product must be somewhat complex. Then walk them through AIDA using the accompanying slides.

5. attention Senders first must gain the attention of the consumers
LO1
attention
Senders first must gain the attention of the consumers
A multichannel approach increases the likelihood the message will be received
Even the best marketing communication can be wasted if the sender doesn’t gain the attention of the consumer first.
There are a number of awareness metrics, from aided recall to top of mind awareness.

6. interest After the customer is aware, they must be persuaded
LO1
interest
After the customer is aware, they must be persuaded
The customer must want to further investigate the product/service
Once the consumer is aware that the company or product exists, communication must work to increase their interest level.
Consumers must be persuaded that it is a product worth investigating.
Ask students: Other than purchase, what can IMC prompt consumers to do?
Possible answers include behavioral changes (don’t drink and drive), attitude changes (that product is high quality), or physical actions (pick up the phone, log on to the Website, volunteer).

7. LO1
desire
After the firm has piqued the interest of its target market, the goal of subsequent IMC messages should move the consumer from “I like it” to “I want it.”

8. action Purchase is just one type of action.
LO1
action
Purchase is just one type of action.
What other actions can consumers be asked to take?
The ultimate goal of any marketing communication is to drive the receiver to action.
If the message has caught consumers’ attention & made them interested enough to consider the product as a means to satisfy a specific desire of theirs, they likely will act on that interest by making a purchase.
Ask students: provide examples of products that they had IMC exposure to, but did not purchase immediately. Then ask students: which IMC exposure moved you to purchase?

9. Lagged effect Advertising does not always have an immediate impact
LO1
Lagged effect
Advertising does not always have an immediate impact
Multiple exposures are often necessary
Difficult to determine which exposure led to purchase
Sometimes consumers don’t act immediately after receiving a marketing communication because of the lagged effect —a delayed response to a marketing communication campaign.

10. Aida model – an example Where is this ad in the AIDA model? LO1
Dogs and babies are very good at attracting attention in advertisements. .

11. advertising A paid form of communication From an identifiable source
LO1
advertising
A paid form of communication
From an identifiable source
Delivered through a communication channel
Designed to persuade to take action
Many things people call advertising are not advertising at all.
Word-of-mouth “advertising,” according to the definition, fails to meet several elements.

12. Advertising Objectives
LO1
Advertising Objectives
Inform
Persuade
Remind
An advertising campaign has three broad objectives: inform, persuade, or remind the target audience.

13. Informative advertising
LO1
Informative advertising
Early in the PLC, firms use informative advertising to educate consumers about the product/service
Communicates to create & build awareness, with the ultimate goal of moving the consumer through the buying cycle to purchase.
Group activity: List brands that might benefit from focusing on informative, persuasive, and reminder advertising. Next, list several brands that enjoy top-of-mind awareness for you (e.g., when you think of a cola, does Coke pop into your head unprompted?)

14. Persuasive advertising
LO1
Persuasive advertising
Generally occurs in the growth and early maturity stages of the PLC when competition is most intense
In the later stage of the PLC may be used to reposition an established brand
When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action.

15. reminder advertising After the products have gained market acceptance
LO1
reminder advertising
After the products have gained market acceptance
Top-of-the-mind-awareness
Reminder advertising is communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.

16. A) reminder advertising B) informative advertising
LO1
Quiznos comparing themselves against Subway and showing that their sandwiches have more meat is an example of _______________.
A) reminder advertising
B) informative advertising
C) top-of-the-mind awareness
D) persuasive advertising
Answer: D; see page 474

17. Focus of advertisements
LO1
Focus of advertisements
Product-focused
Institutional
The “Got Milk” campaign generates demand for the entire milk category; an advertisement for a single brand of milk tries to generate selective demand for that particular brand. The two are not mutually exclusive; when Coca-Cola introduced Diet Coke, it created both industry wide demand for diet soda and product specific demand for Diet Coke.
Companies like Exxon-Mobil advertise their commitment to the environment, not their products, to inform, persuade, and remind consumers of positive thoughts about the company, which can prompt the purchase of products and services.
Ask students: Why might Esso be particularly interested in institutional advertising? Oil and Gas companies are often accused of engaging in practices that are harmful to the environment. Therefore it is important for the firm to stress that they are an environmentally responsible firm to negate some of this criticism.

18. Product placement Product is included in non-traditional situations
LO1
Product placement
Product is included in non-traditional situations
Example: a scene in a movie, music videos
When marketers use product placement, they their product in non-traditional situations, such as a scene in a move or in a TV program.

19. Public service announcements
LO1
Public service announcements
A special class of demand advertising
Focus is on public welfare
Sponsored by non-profit organizations
A form of social marketing
PSA’s are a form of social marketing which is the application of marketing principles to a social issue to bring about attitudinal & behavioural change among the general public or a specific population segment.
Broadcasters must devote a specific amount of free airtime to them.

20. Regulatory & ethical issues in advertising
LO2
Regulatory & ethical issues in advertising
Regulation is a mix of formal laws & informal restrictions
Designed to protect consumers from deceptive practices
Many federal & provincial laws, self-regulatory agencies & agreements
Most marketing communications have an economic motivation, so they do not have the same level of protections as non-economically motivated communications. The first is regulated, meaning that the firm engaging in it is responsible for the contents of the message.
You might encourage students to discuss the implications of Charter of Rights and Freedoms rulings regarding what speech is regulated and what is not. What effects do these rulings have for marketing?
The next slide shows some of the agencies involved in regulating advertising.

21. LO2
puffery
Unlike in many European countries, puffery is legal in Canada. Generally these claims are so outrageous that no rational consumer would believe them.
Ask students: Could puffery ever be considered deceptive? If so, how should we draw the line between puffery and deception? The line between puffery and deception is a fine one. Obvious exaggerations are not the problem it is the more subtle issues that create the problem. The line is currently drawn which determines how many individuals hold a false belief as a result of an advertising. It is a very grey area of advertising law.  

22. Agencies that regulate advertising
LO2
Agencies that regulate advertising
Many federal & provincial laws, as well as a wide range of self-regulatory agencies & agreements affect advertising, as noted in the slide.

23. LO2
Ethical dilemma 15.1: when makeup companies really do make up models’ faces
Is Julia Roberts really that good looking?
More than likely a ‘photoshop fix’
Cosmetics firms claim that ‘fixing’ elements of appearance is expected by consumers
Is it wrong to brush away imperfections?
Many regulatory bodies consider touching up to be wrong.
They feel that doing so is misleading the public.
Do consumers really want realistic images & measured promises, or do they accept & even prefer exaggerated claims & unrealistic images of beauty?
Ask students: what do they think?

24. LO3
Sales promotion
Can be targeted at either the end user consumers or channel members
Can be used in either push or pull strategies
Remind students that as advertising has decreased as a portion of total marketing communications budgets, sales promotions have increased. Promotions can be used to stimulate sales by either the end user consumers or to stimulate channel members to sell more of a given product/service. If focused on the end user, the promotion is using a “pull strategy.” If focused on channel members , it is using a “push strategy.”
Ask Students: What form of sales promotion is represented in this ad? Is it an effective promotion?
This ad represents a deal. The promotion encourages consumers to increase their rate of purchasing by offering a free product.

25. Types of consumer sales promotions
LO3
Types of consumer sales promotions
Sales promotions occur either in conjunction with an advertising campaign or as a stand-alone component of a marketing communications plan. In either case, they must be consistent with the brand image.
The slide exhibits the many different types of tools used in consumer sales promotions, along with their advantages & disadvantages.

26. Trade channel sales promotions
LO3
Trade channel sales promotions
Discounts & allowances
Co-operative advertising
Sales force training
Far more money is spent on trade channel sales promotions than on consumer sales promotions.
Trade channel promotions help convince retailers & wholesalers to stock a new brand, give it eye-level shelf space, & promote it in their flyers & other advertisements.
Many types of consumer sales promotions can be used for channel members, as noted in the slide.

27. Using sales promotion tools
LO3
Using sales promotion tools
Marketers need to be careful in their use of promotions
Future sales are shifted to now
Short –run benefits at the expense of long-term sales stability
Tools: pop-up stores, cross- promoting
In recent years, firms have become more creative in the types of promotions used.
Ask students: How many of them as children collected promotions in Happy Meals or other children’s products? The Happy Meal for years was McDonald’s most successful product, primarily driven by the children’s desire for the toy inside. Many of the Happy Meal toys have become sought after collectibles. The Beanie Baby promotions a number of years ago was so successful that McDonald’s literally ran out of the featured item for the week within hours of its initial distribution.

28. A) be in the same price range B) appeal to the same target market
LO3
To achieve a successful cross-promotion, the two products must _______________.
A) be in the same price range
B) appeal to the same target market
C) cause an emotional customer response
D) not contain puffery
Answer: B; see page 488

29. Evaluating sales promotions by using marketing metrics
LO3
Evaluating sales promotions by using marketing metrics
Realized margin
Cost of additional inventory
Potential increase in sales
Long-term impact
Potential loss from switches from more profitable items
Additional sales by customers
Many sales promotion opportunities undertaken by retailers are initiated by manufacturers.
To evaluate a trade promotion, retailers will consider factors as noted in the slide.

30. Personal selling – scope & nature
LO4
Personal selling – scope & nature
Face to Face
Video Conferencing
Telephone
Internet
Personal selling is the two-way flow of communication between a buyer (s) & a seller that is designed to influence the buyer’s purchase decision.
Many people are shocked to learn how many employees hold sales positions. Your students may have had experience in retail sales and think that all sales jobs are like that. Remind them that though many retail positions exist, professional sales positions involve a more involved skill set and offer much higher rewards.

31. Professional selling as a career
LO4
Professional selling as a career
People love the lifestyle
There is a lot of flexibility
There is a lot of variety in the job
Can be very lucrative, among the highest–paying careers for college graduates
Very visible to management, good for promotions
Ask students: Do you want to plan your own schedule and decide how much money you will make? These are just two of the many benefits of professional selling. The visibility of sales positions also offers many opportunities for advancement.
Visit the sales jobs website as noted in the slide to get a flavour of what kinds of jobs are out there.
Sales Jobs Website

32. B) visibility to management C) job variety
LO4
What is the main feature that attracts college graduates to personal selling as a career?
A) flexibility
B) visibility to management
C) job variety
D) all of these choices are correct
Answer: D; see page 489

33. Unique contribution to the four p’s
LO4
Unique contribution to the four p’s
Can customize the message for a specific buyer
Assists in creating strong supply chain relationships
Increased customer loyalty through relationship selling
Gather research input from customers
Crucial to the success of CRM
Personal selling offers its own unique contribution to the four P’s.
Because of the one to one nature of sales, a salesperson is in a unique position to contribute more fully as noted in the slide.
Ask students: How does the sales force create value for the firm through relationship selling? Through relationship selling the sales force: focuses on building long term customer relationships, contributes to building customer loyalty, assists the firm in identifying new opportunities with existing customers.

34. The value added by personal selling
LO4
The value added by personal selling
Build relationships
Educate & provide advice
Save time & simplify buying
For many products, the sales force educates customers and advises them about the best products/services to meet their needs.
Ask students: For what kind of products/services do consumers most need the expertise of salespeople?
The sales force also simplifies buying by helping the customer understand and evaluate various choices.

35. The personal selling process
LO5
The personal selling process
Although selling may appear a rather straightforward process, successful salespeople follow several steps as noted in the slide.
This graph introduces the personal selling process, which the following slides cover in depth. It also may be used alone in a shortened lecture.

36. Step 1: generate & qualify leads
LO5
Step 1: generate & qualify leads
Two ways leads can be generated include cold calling and telemarketing.
Group activity: Often the best source of new customers are other people. Imagine you sell investment properties; list the people you know who might provide you with viable customer contacts. How else might you gather a list of potential customers to contact? Now role play a cold calling scenario, in which one group member “calls” the others. What challenges do you face? Would your task have been easier had you had some introduction to these “customers”?

37. Which of the following is not a source of leads? A) current customers
B) networking events
C) the Internet
D) competitors customers
Answer: D; see page 493

38. Step 2: preapproach Extends the qualification procedure
LO5
Step 2: preapproach
Extends the qualification procedure
Set goals for what is to be accomplished
A qualified lead requires a meeting. As the old saying goes, “You never get a second chance to make a first impression,” so salespeople must prepare carefully.
Ask students: What kinds of preparation can help ensure the first meeting goes well?
The sales person needs to have investigated the customer’s business and defined how the customer can benefit from the firm’s products/services. If possible the sales person should examine how the customer is currently addressing the needs it is wishing to fulfill.

39. Step 3: sales presentation & overcoming objections
LO5
Step 3: sales presentation & overcoming objections
The Presentation
Person-to-person
Ask questions, listen carefully
Handling Objections
Usually occurs during the presentation
Anticipate in advance
Relax, listen, ask questions
Once all the background information has been obtained & the objectives for the meeting are set, the salesperson is ready for a person to person meeting, the presentation.
To handle the most difficult part of the sales encounter, salespeople go through extensive training to learn how to deal with objections.

40. Aligning the personal selling process with b2b buying process
LO5
Aligning the personal selling process with b2b buying process
The beginning of the presentation may be the most important part of the entire selling process, because this is when the salesperson establishes exactly where the customer is in his or her buying process, as noted in the slide.
Group activity: Role play a salesperson and a potential customer during the presentation. The customer should express several reservations; as the salesperson, how will you deal with them? Discuss each group’s performance.
The B2B process must align closely with the selling process. A seller, for instance, shouldn’t be trying to close a deal when the buyer is just determining the product specifications.

41. Step 4: closing the sale Getting the order
Often most stressful part of sales process
A “no” one day may be the foundation for a “yes” another
The “ABCs” of selling suggest salespeople must “Always Be Closing,” but this difficult process requires far more extensive training than that.
Closing the sale means obtaining a commitment from the customer to make a purchase.
Group activity: Continue with the previous activity. Have students practice closing the sale.

42. Step 5: follow-up Five Service Quality Dimensions Reliability
Responsiveness
Assurance
Empathy
Tangibles
Salespeople must always remember that the sale is just the beginning of a customer relationship.
Ask students: What methods can salespeople use to ensure they follow up effectively with their customers? Does it differ for B2B versus B2C selling situations? Follow up involves ensuring that customers are satisfied with their purchases. The same techniques are used in both B2B and B2C selling. Most firms now have systems to ensure the after the sale communication is established, either by telephone, , or in person.