Chapter 10

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  • Note to Instructor This YouTube ad is a bit of a blonde joke ad. It is a persuading ad for Mercedes.
  • Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using television as a medium. Some of the more noteworthy advantages are the fact that it is a mass medium with high reach and it is provides a combination of sight, sound, and motion. The major disadvantages of TV as an advertising medium are that it has a high absolute cost, potentially high production costs for commercials, and has become very cluttered. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using television as an advertising medium. Chapter 11 provides a more complete evaluation of television as a medium.
  • Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using radio as a medium. Some of the more noteworthy advantages are the fact that radio has local coverage, is low cost, and may result in high frequency of exposures. The major disadvantages of radio advertising is that it has high clutter, low attention getting ability, and provides only an audio message. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using radio as an advertising medium. Chapter 11 provides a more complete evaluation of broadcast media including radio.
  • Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using magazines as an advertising medium. Some of the more noteworthy advantages of magazines as advertising media vehicles are the fact that they have good potential for segmentation, provide quality reproduction, and have longevity. The major disadvantages are it they have long lead times, provide only a visual message, and often lack flexibility. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using magazines. Chapter 12 provides a more complete evaluation of print media including magazines.
  • Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using newspapers as a medium. Some of the more noteworthy advantages are the fact that they have good potential for high coverage, the cost is relatively low, and they have short lead times. The major disadvantages of newspapers are that they have a short reading life, high levels of advertising clutter, and may have low attention getting ability. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using newspapers as an advertising medium. Chapter 12 provides a more complete evaluation of newspapers.
  • Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using outdoor as an advertising medium. Some of the more noteworthy advantages are the fact that outdoor ads are location specific, easily noticed, and allow for high repetition. The major disadvantages are that outdoor has a short exposure time, can accommodate only short messages, and may have a poor image. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using outdoor advertising. Chapter 13 provides a more complete evaluation of outdoor media.
  • Relation to text This slide relates to material on pp. 327-328 and Figure 10-28 of the text. Summary Overview This slide summarizes the various advantages and disadvantages of using the Internet as an advertising medium. Some of the advantages of the Internet are the fact the user selects the information, is usually attentive and involved, and the medium is interactive. The major disadvantages of the Internet are limited creative capabilities, web snarl, and a lack of valid measurement techniques. Use of this slide This slide can be used to provide a brief overview of the advantages and disadvantages of using the Internet as an advertising medium. Chapter 15 provides a more complete evaluation of the Internet.
  • Relation to text This slide relates to the material on pp. 193-94 Summary Overview This slide shows an ad for Ford that is designed to inform readers of the efforts the company takes in the fight against breast cancer. Use of this slide This ad can be used to demonstrate how companies have different objectives for their advertisements. The objective of corporate advertising for companies such as Ford Motor Company is to enhance their image and generate goodwill rather than to directly generate sales.
  • Note to Instructor This is a Web link to promomagazine.com. It is worth exploring with the students as it give excellent current examples of promotions.
  • Note to Instructor Event marketing is on the rise. The text gives an example of Charmin: P&G recently sponsored a holiday event promotion for its Charmin brand in New York’s Times Square, where it can be very difficult to find a public restroom. For the second year running, P&G set up 20 sparkling clean Charmin-themed mini-bathrooms, each with its own sink and a bountiful supply of Charmin. The event turned out to be the ultimate in experiential marketing—touching people in places advertising wouldn’t dare to go. More than 420,000 people gratefully used the facilities and privately voted for the Charmin they preferred (Charmin Ultra Soft or Ultra Strong).
  • Relation to text This slide relates to material on pp. 518-519 of the text. Summary Overview Contests and sweepstakes are an increasingly popular consumer-oriented promotion. There are differences between contests and sweepstakes as stated. Contest – consumers compete for prizes or money on the basis of skill or ability, proof of purchase is generally required to enter or an entry form must be used Sweepstake – winners are determined purely by chance and no proof of purchase is required to enter Use of this slide This slide can be used to discuss the use of contests and sweepstakes. They are increasing in popularity as these promotions have appeal and glamour that other sales promotion tools such as cents-off coupons lack. Marketers like these type of promotions because they are perceived to be exciting and attract large numbers of consumers.
  • Note to Instructor This Web link is to one of many professional sales organizations—it is important to mention what a well respected field sales is as students often think of in-store retail sales only. Discussion Question Who has held a sales position? What were your responsibilities? You can the ask them to describe the job so you can use it as an example in future slides. Many students will have worked at inside sales positions and many of them have cold called extensively as part of their jobs. You can also ask them how they were paid—salary, commission, bonus? This will tie into future slides.
  • Note to Instructor Examples of people who do the selling include: Salespeople Sales representatives District managers Account executives Sales engineers Agents Account development reps
  • Note to Instructor When handling objections from buyers, salespeople should: Be positive Seek out hidden objections Ask the buyer to clarify any objections Take objections as opportunities to provide more information Turn objections into reasons for buying
  • Note to Instructor Discussion Question How does a salesperson can close a sale? Closing techniques can include: Asking for the order Reviewing points of agreement Offering to help write up the order Asking if the buyer wants this model or another one Making note that the buyer will lose out if the order is not placed now Offering incentives to buy, including lower price or additional quantity

Transcript

  • 1. Fundamental Of Marketing MKT243 Chapter 10 Advertising, Sales Promotion, Public Relation, Personal Selling and Direct MarketingDHD2009 MKT243 Fundamental Of Marketing 1
  • 2. Slide Outline• Effects of advertising• Major types of advertising• Steps in creating an advertising campaign• Media decisions• Public Relations• Sales Promotion• Personal Selling 1. Steps in Selling Process 2. Sales ManagementDHD2009 2 MKT243 Fundamental Of Marketing
  • 3. AdvertisingDHD2009 MKT243 Fundamental Of Marketing 3
  • 4. AdvertisingAdvertising is any paid form of non- personal presentation and promotion of ideas, goods, or services by an identified sponsorDHD2009 4 MKT243 Fundamental Of Marketing
  • 5. Advertising Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time Objectives • Inform • Persuade • RemindDHD2009 5 MKT243 Fundamental Of Marketing
  • 6. Major Types of Advertising Designed to enhance a company’s Designed to enhance a company’s Institutional Institutional image rather than promote a image rather than promote a Advertising Advertising particular product. particular product. Product Product Designed to tout the benefits of a Designed to tout the benefits of a Advertising Advertising specific good or service. specific good or service.DHD2009 6 MKT243 Fundamental Of Marketing
  • 7. Major Types of Advertisinga) Institutional Advertising -A form of advertising designed to enhance a company’s image rather than promote a particular product. -a.k.a Corporate Advertising -To maintain favorable attitude and image towards the companyDHD2009 7 MKT243 Fundamental Of Marketing
  • 8. Major Types of Advertisingb) Product Advertising -A form of advertising that touts the benefits of specific good or service -Consist of 4 types of Product Advertising: i. Pioneering Advertising ii. Competitive Advertising iii. Comparative Advertising iv. Reminder AdvertisingDHD2009 8 MKT243 Fundamental Of Marketing
  • 9. Product Advertisingi. Pioneering/ Informative Advertising To stimulate primary demand for a new product or product category (introductory stage)ii. Competitive Advertising To influence demand for a specific brand to compete with other competitors’ brands (Growth stage)iii. Comparative Advertising Compares between two or more competing brands on one or more specific attributes (Maturity stage)iv. Remainder Advertising Advertising that are aim to help maintain customer relationships and keep customers thinking about the product. It is important with mature products.DHD2009 9 MKT243 Fundamental Of Marketing
  • 10. Creative Decisions Identify Identify product benefits product benefits Develop and evaluate Develop and evaluate advertising appeals advertising appeals Execute Execute the message the message Evaluate the Evaluate the campaign’s effectiveness campaign’s effectivenessDHD2009 10 MKT243 Fundamental Of Marketing
  • 11. Creative Decisions in Advertising (McDaniel, Lamb, Hair)1. Identifying Product Benefits -The goal of advertising is to sell the benefits of the product, not its attributes. -An attributes is simple feature of the product e.g: easy-open package or special formulation -Product benefit is what the consumer will achieve by using the product.DHD2009 11 MKT243 Fundamental Of Marketing
  • 12. Creative Decisions in Advertising (McDaniel, Lamb, Hair)2. Developing & Evaluating Advertising Appeals -Advertising appeal-A reason for a person to buy a productDHD2009 12 MKT243 Fundamental Of Marketing
  • 13. Common Advertising Appeals Love/ Love/ Profit Profit Romance Romance Other Other Health Health Environ- Environ- mental Common Common mental Fearconscious-conscious- Appeals Appeals Fear ness ness Vanity/ Vanity/ Admiration Admiration Egotism Egotism Fun/ Fun/ Convenience Convenience Pleasure Pleasure DHD2009 13 MKT243 Fundamental Of Marketing
  • 14. Creative Decisions in Advertising (McDaniel, Lamb, Hair)3. Executing the Message. -Is the way the advertisement portrays its information -AIDA plan is a good blueprint for executing advertising massage -An Ad must immediately draw the reader’s, viewer’s, or listener’s attention.DHD2009 14 MKT243 Fundamental Of Marketing
  • 15. Executing the Message Scientific Scientific Slice-of-Life Slice-of-Life Musical Musical Lifestyle Lifestyle Demon- Common Common Spokes- Spokes- Demon- person/ stration stration Executional Executional person/ Testimonial Testimonial Styles Styles Mood or Mood or Fantasy Fantasy Image Image Real/ Real/ Animated Animated Humorous Humorous Product Product Symbols SymbolsDHD2009 15 MKT243 Fundamental Of Marketing
  • 16. Listerine Uses a Slice-of-Life ExecutionDHD2009 16 MKT243 Fundamental Of Marketing
  • 17. Apple Uses a TestimonialDHD2009 17 MKT243 Fundamental Of Marketing
  • 18. Mentadent Uses a DemonstrationDHD2009 18 MKT243 Fundamental Of Marketing
  • 19. Jeep Uses Imagery/ fantasy for the WranglerDHD2009 19 MKT243 Fundamental Of Marketing
  • 20. Creative Decisions in Advertising (McDaniel, Lamb, Hair)4. Post-campaign Evaluation -Have to review the impact of the ad in term of sales, market share or awareness.DHD2009 20 MKT243 Fundamental Of Marketing
  • 21. Major Types of Advertising Media Newspapers Newspapers Magazines Magazines Radio Radio Television Television Outdoor Media Outdoor Media Internet Internet Alternative Media Alternative MediaDHD2009 21 MKT243 Fundamental Of Marketing
  • 22. Television Pros and Cons Advantages Disadvantages Mass coverage Mass coverage Low selectivity Low selectivity High reach High reach Short message life Short message life Impact of sight, sound Impact of sight, sound High absolute cost and motion High absolute cost and motion High prestige High prestige High production cost High production cost High production cost High production cost Low cost per exposure Low cost per exposure Clutter Clutter Attention getting Attention getting Favorable image Favorable imageDHD2009 22 MKT243 Fundamental Of Marketing
  • 23. Radio Pros and Cons Advantages Disadvantages Local coverage Local coverage Local coverage Local Audio only Audio only Low cost Low cost Clutter Clutter High frequency High frequency Low attention getting Low attention getting Flexible Flexible Fleeting message Fleeting message Low production cost Low production costWell-segmented audienceWell-segmented audienceDHD2009 23 MKT243 Fundamental Of Marketing
  • 24. Magazine Pros and Cons Advantages Disadvantages Long lead time for Long lead time for Segmentation potential Segmentation potential ad placement ad placement Quality reproduction Quality reproduction Visual only Visual only High information content High information content Lack of flexibility Lack of flexibility Longevity Longevity Multiple readers Multiple readersDHD2009 24 MKT243 Fundamental Of Marketing
  • 25. Newspaper Pros and Cons Advantages Disadvantages High coverage High coverage Short life Short life Low cost Low cost Clutter Clutter Short lead time for Short lead time for Low attention getting Low attention getting placing ads placing ads Ads can be placed in Ads can be placed in Poor reproduction quality interest sections Poor reproduction quality interest sections Timely (current ads) Timely (current ads) Selective reader exposure Selective reader exposureReader controls exposureReader controls exposure Can be used for coupons Can be used for couponsDHD2009 25 MKT243 Fundamental Of Marketing
  • 26. Outdoor Pros and Cons Advantages Disadvantages Location specific Location specific Short exposure time Short exposure time High repetition High repetition Short ads Short ads Easily noticed Easily noticed Poor image Poor image Local restrictions Local restrictionsDHD2009 26 MKT243 Fundamental Of Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 27. Internet Pros and Cons Advantages Disadvantages User selects product User selects product Limited creative Limited creative information information capabilities capabilities User attention and User attention and Websnarl (crowded Websnarl (crowded involvement involvement access) access) Interactive relationship Interactive relationship Technology limitations Technology limitations Few valid measurement Few valid measurement Direct selling potential Direct selling potential techniques techniquesFlexible message platformFlexible message platform Limited reach Limited reachDHD2009 27 MKT243 Fundamental Of Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 28. Public RelationDHD2009 MKT243 Fundamental Of Marketing 28
  • 29. PR• Is the element in the promotional mix that evaluating public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance (McDaniel, Lamb, Hair)• Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events (Kotler and Armstrong)• Public relations is used to promote product, people, ideas, and activitiesDHD2009 29 MKT243 Fundamental Of Marketing
  • 30. The Role of Public Relations Evaluates public attitudes Evaluates public attitudes Identifies issues of public concern Identifies issues of public concern Executes programs to gain public acceptance Executes programs to gain public acceptanceDHD2009 30 MKT243 Fundamental Of Marketing
  • 31. Public Relations functions• Press relations or press agency• Product publicity• Public affairs• Lobbying• Investor and Employee relations• Development• Crisis Management DHD2009 31 MKT243 Fundamental Of Marketing
  • 32. Public RelationsPress relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product, or serviceProduct publicity involves publicizing specific productsPublic affairs involves building and maintaining national or local community relationsDHD2009 32 MKT243 Fundamental Of Marketing
  • 33. Public RelationsLobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulationInvestor relations involves maintaining relationships with shareholders and others in the financial communityDevelopment involves public relations with donors or members of nonprofit organizations to gain financial or volunteer supportDHD2009 33 MKT243 Fundamental Of Marketing
  • 34. Public Relation Can Shape Corporate ImagesDHD2009 34 MKT243 Fundamental Of Marketing © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 35. Major PRs Tools1. New product publicity2. Product placement3. Consumer Education4. Event sponsorship5. Issue Sponsorship6. Internet Web sitesDHD2009 35 MKT243 Fundamental Of Marketing
  • 36. Sales PromotionDHD2009 MKT243 Fundamental Of Marketing 36
  • 37. Sales PromotionSales promotion refers to the short-term incentives to encourage purchases or sales of a product or service:– Consumer promotions– Trade promotionsDHD2009 37 MKT243 Fundamental Of Marketing
  • 38. Sales Promotion• Consumer Sales promotion Targeted to the consumer market or final users• Trade Sales promotion Directed to members of the marketing channel members, retailers and wholesalersDHD2009 38 MKT243 Fundamental Of Marketing
  • 39. Uses of Sales Promotion Immediate purchases Immediate purchases Increase trial Increase trial Boost consumer inventory Boost consumer inventory Encourage repurchase Encourage repurchase Increase ad effectiveness Increase ad effectiveness Encourage brand loyalty Encourage brand loyaltyDHD2009 39 MKT243 Fundamental Of Marketing
  • 40. Tools for Sales Promotion CONSUMER TRADE Coupons and Rebates Coupons and Rebates Trade Allowances Trade Allowances Premiums Premiums Push Money Push MoneyLoyalty Marketing ProgramsLoyalty Marketing Programs Training Training Contests & Sweepstakes Contests & Sweepstakes Free Merchandise Free Merchandise Sampling Sampling Store Demonstration Store DemonstrationPoint-of-Purchase PromotionPoint-of-Purchase Promotion Conventions & Trade Shows Conventions & Trade ShowsDHD2009 40 MKT243 Fundamental Of Marketing
  • 41. Tools for Sales Promotion• Samples offer a trial amount of a product• Coupons are certificates that give buyers a saving when they purchase specified products• Cash refunds are similar to coupons except that the price reduction occurs after the purchase• Price packs offer consumers savings off the regular price of a productDHD2009 41 MKT243 Fundamental Of Marketing
  • 42. Tools for Sales Promotion • Premiums are goods offered either for free or at low price • Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers • Point-of-purchase promotions include displays and demonstrations that take place at the point of salesDHD2009 42 MKT243 Fundamental Of Marketing
  • 43. Samples are often distributed with local newspapersDHD2009 43 MKT243 Fundamental Of Marketing
  • 44. Armor All Uses an On-Package SampleDHD2009 44 MKT243 Fundamental Of Marketing
  • 45. Tools for Sales Promotion Contests, sweepstakes, and games give consumers the chance to win something—such as cash, trips, or goods—by luck or through extra effort • Contests require an entry by a consumer • Sweepstakes require consumers to submit their names for a drawing • Games present consumers with something that may or may not help them win a prizeDHD2009 45 MKT243 Fundamental Of Marketing
  • 46. Contests and Sweepstakes Contest: a promotion where consumers compete for Contest: a promotion where consumers compete for prizes or money on the basis of skills or ability. Winners prizes or money on the basis of skills or ability. Winners are determined by judging entries or ascertaining which are determined by judging entries or ascertaining which entry comes closes to some predetermined criteria entry comes closes to some predetermined criteria Illegal in Malaysia!!! Sweepstakes/games: a promotion where winners are Sweepstakes/games: a promotion where winners are determined purely by chance and cannot require a proof determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are chosen of purchase as a condition for entry. Winners are chosen by random selection from a pool of entries or generation by random selection from a pool of entries or generationDHD2009number to match those held by game entrants. 46 of a number to match those held by Of Marketing MKT243 Fundamental of a game entrants. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  • 47. Trade Sales Promotion• Trade Allowance• Push money• Training• Free merchandise• Store demonstrations• Business meetings, conventions, and trade showsDHD2009 47 MKT243 Fundamental Of Marketing
  • 48. Personal SellingDHD2009 MKT243 Fundamental Of Marketing 48
  • 49. Personal Selling The Role of the Sales ForcePersonal selling is the interpersonal part of the promotion mix and can include:• Face-to-face communication• Telephone communication• Video or Web conferencingDHD2009 49 MKT243 Fundamental Of Marketing
  • 50. Personal Selling The Nature of Personal SellingSalespeople are an effective link between the company and its customers to produce customer value and company profit by:• Representing the company to customers• Representing customers to the company• Working closely with marketingDHD2009 50 MKT243 Fundamental Of Marketing
  • 51. Advantages of Personal Selling  Detailed explanation or demonstration  Variable sales message  Directed at qualified prospects  Controllable adjustable selling costs  Effective at obtaining sale and gaining customer satisfactionDHD2009 51 MKT243 Fundamental Of Marketing
  • 52. The Personal Selling Process The goal of the personal selling process is to get new customers and obtain orders from themDHD2009 52 MKT243 Fundamental Of Marketing
  • 53. The Personal Selling Process Approaching Developing and The customer Generating Leads Qualifying leads Proposing and probing solutions needs Closing the Handling Following up sale objectionDHD2009 53 MKT243 Fundamental Of Marketing
  • 54. The Personal Selling Process 1) Prospecting identifies qualified potential customers through referrals from: • Customers • Suppliers • Dealers • Internet It also can be done by networking using friends and business contact Current way-Telemarketing -Cold marketing- a form of lead generation which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial statusDHD2009 54 MKT243 Fundamental Of Marketing
  • 55. The Personal Selling Process2) Qualifying is identifying good customers and screening out poor ones by looking at:• Financial ability• Volume of business• Needs• Location• Growth potential• Receptivity and accessibilityDHD2009 55 MKT243 Fundamental Of Marketing
  • 56. The Personal Selling Process3) Approach is the process where the salesperson meets and greets the buyer and gets the relationship off to a good start and involves the salesperson’s:• Appearance• Opening lines• Follow-up remarksPre-approach-A process that describes the “homework” that must be done by a sales person before he or she contact a personDHD2009 56 MKT243 Fundamental Of Marketing
  • 57. The Personal Selling Process 4) Developing and Proposing solution Presentation is when the salesperson tells the product story to the buyer, presenting customer benefits and showing how the product solves the customer’s problems • Need-satisfaction approach: Buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problemsDHD2009 57 MKT243 Fundamental Of Marketing
  • 58. The Personal Selling Process5)Handling objections is the process where salespeople resolve problems that are logical, psychological, or unspoken.Use fundamentals of FEEL, FELT, FOUNDe.g: “I see how you FEEL! Other have FELT the same way too until they FOUND….”DHD2009 58 MKT243 Fundamental Of Marketing
  • 59. Handling Objections View objections as View objections as requests for information requests for information Anticipate Anticipate specific objections specific objections Use the objection Use the objection to close the sale to close the saleDHD2009 59 MKT243 Fundamental Of Marketing
  • 60. The Personal Selling Process5) Closing the sale- Process where salespeople should recognize signals from the buyer— including physical actions, comments, and questions—to close the saleDHD2009 60 MKT243 Fundamental Of Marketing
  • 61. The Personal Selling Process• 7) Following upFollow-up is the last step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat businessDHD2009 61 MKT243 Fundamental Of Marketing
  • 62. Following Up Ensure delivery Ensure delivery schedules are met schedules are met Goods or service perform Goods or service perform as promised as promised Employees are trained Employees are trainedDHD2009 62 MKT243 Fundamental Of Marketing
  • 63. Sales Management Responsibilities Define sales goals and sales process Define sales goals and sales process Determine sales force structure Determine sales force structure Recruit and train sales force Recruit and train sales force Compensate and motivate sales force Compensate and motivate sales force Evaluate sales force Evaluate sales forceDHD2009 63 MKT243 Fundamental Of Marketing
  • 64. Direct Marketing• Connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationshipDHD2009 64 MKT243 Fundamental Of Marketing