1. CHAPTER: 15: Advertising and Public Relations
MKT 322
CHAPTER: 15: Advertising and Public Relations

4. Setting the Advertising Budget
Developing Advertising Strategy
Advertising strategy: The strategy by which the company accomplishes its advertising objectives.
It consists of two major elements:
Creating advertising messages
Selecting advertising media.
Creating the Advertising Message
Breaking through the Clutter
Merging Advertising and Entertainment

5. Message Strategy:
Creative concept: The compelling “big idea” that will bring the advertising message strategy to life in a distinctive and memorable way.
Message Execution
execution styles
Slice of life
Lifestyle
Fantasy
Mood or image
Musical
Personality symbol
Technical expertise
Scientific evidence
Testimonial evidence or endorsement

6. The major steps in advertising media selection are
(1) Determining reach, frequency, and impact
(2) Choosing among major media types
(3) Selecting specific media vehicles
(4) Choosing media timing
Advertising media: The vehicles through which advertising messages are delivered to their intended audiences.
Determining Reach, Frequency, and Impact
Choosing Among Major Media Types

7. Good mass-marketing coverage; low cost per exposure;
Medium
Advantages
Limitations
Television
Good mass-marketing coverage; low cost per exposure;
combines sight, sound , and motion; appealing to the senses
High absolute costs; high clutter; fleeting exposure; less audience selectivity
The Internet
High selectivity; low cost; immediacy; interactive capabilities
Potentially low impact; the audience control exposure
Newspapers
Flexibility; timeliness; good local market coverage; broad acceptability; high believability
Short life; poor reproduction quality; small pass-along audience
Direct mail
High audience selectivity; flexibility; no ad competition within the same medium; allows personalization
Relatively high cost per exposure; “junk mail” image
Magazines
High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life and good pass-along readership
Long ad purchase lead time; high cost; no guarantee of position
Radio
Good local acceptance; high geographic and demographic selectivity; low cost
Audio only; fleeting exposure; low attention (“ the half hard medium” ); fragmented audiences
Outdoor
Flexibility; high repeat exposure; low cost; low message competition; good positional selllectivity
Little audience selectivity; creative limitations

8. Selecting Specific Media Vehicles:
In selecting specific media vehicles, media planners must balance media costs against several media effectiveness factors:
First, the planner should evaluate the media vehicle’s audience quality.
Second, the media planner should consider audience engagement
Third, the planner should assess the vehicle’s editorial quality.
Deciding on Media Timing

9. Evaluating Advertising Effectiveness and the Return on Advertising Investment
Advertisers should regularly evaluate two types of advertising results:
The communication effects
The sales and profit effects
Other Advertising Considerations
Organizing for Advertising: advertising agency
International Advertising Decisions

10. Public Relations
Press relations or press agency: Creating and placing newsworthy information in the news media to attract attention to a person, product, or service.
Product publicity: Publicizing specific products.
Public affairs: Building and maintaining national or local community relationships.
Lobbying: Building and maintaining relationships with legislators and government officials to influence legislation and regulation.
Investor relations: Maintaining relationships with shareholders and others in the financial community.
Development: Working with donors or members of nonprofit organizations to gain financial or volunteer support.

11. The Role and Impact of PR
Major Public Relations Tools
One of the major tools is news.
Speeches can also create product and company publicity.
Special events , ranging from news conferences, press tours, grand openings, and fireworks displays to laser light shows, hot air balloon releases, multimedia presentations, or educational programs designed to reach and interest target publics.
Prepare written materials to reach and influence their target markets. These materials include annual reports, brochures, articles, and company newsletters and magazines.
Audiovisual materials, such as slide-and-sound programs, DVDs, and online videos are being used increasingly as communication tools.
Corporate identity materials can also help create a corporate identity that the public immediately recognizes. Logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company cars and trucks—all become marketing tools when they are attractive, distinctive, and memorable.
Finally, companies can improve public goodwill by contributing money and time to public service activities

12. CHAPTER: 16: Personal Selling and Sales Promotion

13. Personal selling
Personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships.
The Nature of Personal Selling
Salesperson
The Role of the Sales Force
Personal selling involves interpersonal interactions between salespeople and individual customers—whether face-to-face, by telephone, via , through video or Web conferences, or by other means.
Personal selling can be more effective than advertising in more complex selling situations. Salespeople can probe customers to learn more about their problems and then adjust the marketing offer and presentation to fit the special needs of each customer

14. Linking the Company with Its Customers
They represent the company to customers.
They find and develop new customers and communicate information about the company’s products and services.
They sell products by approaching customers, presenting their offerings, answering objections, negotiating prices and terms, and closing sales.
Salespeople provide customer service and carry out market research and intelligence work.
Coordinating Marketing and Sales
Managing the Sales Force

16. Designing the Sales Force Strategy and Structure
How should salespeople and their tasks be structured?
How big should the sales force be? Should salespeople sell alone or work in teams with other people in the company?
Should they sell in the field, by telephone, or on the Web? We address these issues next.
The Sales Force Structure
Product sales force structure, a customer sales force structure, or a combination of the two.
Territorial sales force structure
Product sales force structure
Customer (or market) sales force structure
Complex Sales Force Structures
Other Sales Force Strategy and Structure Issues
Outside and Inside sales forces
Team selling
Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts.

17. Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Compensation consists of four elements:
A fixed amount
A variable amount
Expenses
Fringe benefits

18. Supervising and Motivating Salespeople
Supervising Salespeople
Many help salespeople identify target customers and set call objectives.
Some may also specify how much time the sales force should spend prospecting for new accounts and set other time management priorities.
One tool is the weekly, monthly, or annual call plan that shows which customers and prospects to call on and which activities to carry out.
Another tool is time-and-duty analysis. In addition to time spent selling, the salesperson spends time traveling, waiting, taking breaks, and doing administrative chores.

19. Selling and the Internet
Motivating Salespeople
Sales quota
Evaluating Salespeople and Sales Force Performance
The most important source is sales reports, including weekly or monthly work plans and longer-term territory marketing plans.
Salespeople also write up their completed activities on call reports and turn in expense reports for which they are partly or wholly reimbursed.
The company can also monitor the sales and profit performance data in the salesperson’s territory. Additional information comes from personal observation, customer surveys, and talks with other salespeople.
Using various sales force reports and other information, sales management evaluates the members of the sales force.
It evaluates salespeople on their ability to “plan their work and work their plan.” Formal evaluation forces management to develop and communicate clear standards for judging performance.
It also provides salespeople with constructive feedback and motivates them to perform well.

20. Is the sales force accomplishing its customer relationship, sales, and profit objectives?
Is it working well with other areas of the marketing and company organization?
Are sales force costs in line with outcomes?
As with other marketing activities, the company wants to measure its return on sales investment.

22. Selling process
Steps in the Selling Process
Prospecting and Qualifying
Preapproach
Approach
Presentation and Demonstration
Handling Objections
Closing
A salesperson asks the customer for an order.
Follow-Up

23. Sales promotion
The Rapid Growth of Sales Promotion
Sales Promotion Objectives
Major Sales Promotion Tools
Consumer Promotions
Samples are offers of a trial amount of a product.
Coupons are certificates that give buyers a saving when they purchase specified products. Most consumers love coupons.
Cash refunds (or rebates) are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet.
Price packs (also called taka-off deals) offer consumers savings off the regular price of a product.
Premiums are goods offered either free or at low cost as an incentive to buy a product, ranging from toys included with kids’ products to phone cards and DVDs.
Advertising specialties , also called promotional products , are useful articles imprinted with an advertiser’s name, logo, or message that are given as gifts to consumers.
Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale.
Contests, sweepstakes, and games give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort.

24. Event marketing (or event sponsorships)
Trade promotions
Manufacturers use several trade promotion tools.
Many of the tools used for consumer promotions—contests, premiums, displays—can also be used as trade promotions. Or the manufacturer may offer a straight discount off the list price on each case purchased during a stated period of time (also called a price-off , off-invoice , or off-list).
Manufacturers also may offer an allowance (usually so much off per case) in return for the retailer’s agreement to feature the manufacturer’s products in some way.
An advertising allowance compensates retailers for advertising the product. A display allowance compensates them for using special displays.
Manufacturers may offer free goods , which are extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor or size.
They may offer push money —cash or gifts to dealers or their sales forces to “push” the manufacturer’s goods.
Manufacturers may give retailers free specialty advertising items that carry the company’s name, such as pens, pencils, calendars, paperweights, matchbooks, memo pads, and yardsticks.

25. Business promotions
Developing the Sales Promotion Program
Beyond selecting the types of promotions to use, marketers must make several other decisions in designing the full sales promotion program.
First, they must determine the size of the incentive.
The marketer also must set conditions for participation.
Incentives might be offered to everyone or only to select groups.
Marketers must determine how to promote and distribute the promotion program itself
Evaluation
Marketers should ask:
Did the promotion attract new customers or more purchasing from current customers?
Can we hold onto these new customers and purchases?
Will the long-run customer relationship and sales gains from the promotion justify its costs?

26. CHAPTER: 17: Direct, Online, Social Media and Mobile Marketing

27. Direct and Digital Marketing
The New Direct Marketing Model
Rapid Growth of Direct and Digital Marketing
Direct marketing has become the fastest-growing form of marketing.
Direct marketing continues to become more Web-oriented, and Internet marketing is claiming a fast-growing share of marketing spending and sales.

28. Benefits of Direct and Digital Marketing to buyers and Sellers
Benefits to Buyers
Direct marketing gives buyers ready access to a wealth of products.
Direct marketers can offer an almost unlimited selection to customers almost anywhere in the world. Just compare the huge selections offered by many Web merchants to the more meager assortments of their brick-and-mortar counterparts.
Direct marketing channels also give buyers access to a wealth of comparative information about companies, products, and competitors.
Good catalogs or Web sites often provide more information in more useful forms than even the most helpful retail salesperson can provide.
Finally, direct marketing is immediate and interactive

29. Benefits to Sellers
Direct marketing also offers sellers a low-cost, efficient, speedy alternative for reaching their markets.
Direct marketing has grown rapidly in business-to-business marketing, partly in response to the ever-increasing costs of marketing through the sales force.
Lower-cost-per-contact media—such as B-to-B telemarketing, direct mail, and company Web sites—often prove more cost effective.
Similarly, online direct marketing results in lower costs, improved efficiencies, and speedier handling of channel and logistics functions, such as order processing, inventory handling, and delivery.
Direct marketing can also offer greater flexibility. It allows marketers to make ongoing adjustments to prices and programs or make immediate, timely, and personal announcements and offers.

30. Forms of Direct and Digital Marketing
Digital and Social Media marketing
Marketing, the internet, and the Digital Age
Online Marketing
Web Sites and Branded Web Communities
Online Advertising
Marketing
Online Videos
Blogs and Other Online Forums
Social Media Marketing
Using Social Media
Social media Marketing Advantages and Challenges
Integrated Social Media Marketing
Mobile Marketing

31. Traditional Direct Marketing Forms
Direct-Mail Marketing
Catalog Marketing
Telemarketing
Direct-Response Television Marketing
Kiosk Marketing
Public Policy Issues in Direct and Digital Marketing
Irritation, Unfairness, Deception, and Fraud
Consumer Privacy
A Need for Action