Advertising, Promotion and Sales

The importance of advertising

Advertising is the most

Visual marketing activity

Advertising is only

One part of marketing

It does NOT

Affect every purchase we make

Advertising tries to

Influence consumer choice

Advertising is most
important for products and
services that are:

1. identical
2. mass marketed(many places)
3. easy to describe
4. low priced
5. new
6. heavily competitive

Goals of Advertising:

1. brand awareness and positioning

2. brand trial
3. brand preference
4. brand reminder
5. brand repositioning

Both industrial and nonTo know about it before they can buy it
industrial consumers need
Advertising informs about

1. name
2. availability

3. benefits
4. appearance
5. ordering information
Positioning statements

Point out the differences among competitors

Brand Trial assumption:

If one tries it and likes it, theyll buy it

Many brand trial ads

include

A coupon or samples

Brand preference focuses Value Equation

on the (also from chapter 1)
Why do they include
statements like most
popular and number 1

People are sheep

Endorsement

Statement by a recognized celebrity that they use the

brand

Celebrities will endorse

Almost any product

Brand reminder used when Older brands are attacked by new competitors
Brand repositioning

Marketers look for new target consumers

Brand repositioning often Decision

needed in this stage of the
PLC
Danger in repositioning

Alienate the old target market

Creating the Message

Advertising is a form of

Communication

Communication model

1. intent
2. message
3. media
4. reception
5. action

Intent (goals)

1. brand awareness and positioning

2. brand trial
3. brand preference
4. brand reminder
5. brand repositioning

Often the company itself

does not create the
advertising; who does
Ad agencies do the
following

Initially, newspapers and

The advertising agency

1. 1.

buy media

2. 2.

create

3. 3.

place

4. 4.

monitor effectiveness

Sales of the periodical

magazines received revenue

only from
Ad agencies bought
85%
advertising for how much %
of price
Regular companies bought 100%
advertising for how much %
of the price
Thus ad agencies made
money from

The savings in their costs of ads

Therefore businesses paid

the same for advertising
space whether it had used

An agency of not

Today clients pay for

Message: intent to message

1. 1.

space

2. 2.

time

3. 3.

Creativity

1. 1.

find unique selling proposition

2. 2.

select an appeal for Target Market

3. 3.

create message for the selected media

Unique Selling Proposition Feature or benefit that cannot be duplicated

Big idea
SWOT

Message that will communicate USP to T.M.

1. 1.

Strength

2. 2.

Weakness

Advertising appeals

3. 3.

opportunities

4. 4.

Threats

1. 1.

biological

2. 2.

emotional

3. 3.

rational

4. 4.

social

Biological

Health and security: lower level needs

Emotional

Promises:

Rational: Focuses on
Stresses:

1. 1.
2. 2.

love
fun

3. 3.

adventure

4. 4.

romance

Reasoning abilities
1. 1.

convenience

2. 2.

cost savings

3. 3.

safety

4. 4.

warranties

5. 5.

ease of purchase

Rational appeal most likely Value equation to prove worth

to use
Social Appeals: Focuses on The way social pressures influence consumer behaviour

Examples

1. 1.

beauty

2. 2.

body shape

3. 3.

social behaviour

Social appeal will often set Negative situation

up

Selecting the Media

A medium
Factors to determine Medium

Carries a message to an audience

1. reach
2. frequency
3. selectivity
4. durability
5. lead-time
6. mechanical requirements
7. clutter
8. costs

Reach

Number of people who are exposed

Most media set their prices

Based on their circulation or audience

Frequency

Number of times message will be seen or heard

Frequency and reach combine Number of times message was seen or heard
to tell you:

Selectivity

Ability of the medium to focus on a target market

Durability

Length of time an advertisement lasts

Lead time

The amount of time required to create an ad

Mechanical requirements

Technical complexity of preparing the ads.

Can affect costs

Clutter

Competition for the audiences attention

Internal Clutter

Competition within the same area, or medium

External Clutter

Competition occurring in the real world while the

audience is viewing/reading/listening

Costs

Costs of preparation plus space/time

Costs per thousands

How much money it costs to reach 1000 people

Types of Media

Magazines

Of the 8 factors listed in section 9.3, magazines rate very

high on:
1. Selectivity,
2. durability

On the negative side

1. Lead time
2. costs
3. clutter
5 main parts of good
magazine ad

1. headline
2. illustration
3. body copy
4. signature
5. layout

Headline

Largest type, less than 7 words

Illustrations should

Continue the thought stated in the headline

Body copy

Not too much unless very well done

Signature

Brand identification:
1. logo
2. slogan
3. package
4. brand name

Layout

The structure of the ad

Newspapers

Excellent for: local advertisers

Newspapers offer a wide

variety of

Ad sizes

Why is this good?

Other advantages

Most advertisers can afford them

1. lead time
2. mechanical requirements

Disadvantages

1. durability
2. clutter

Television is a very

Versatile medium

Why?

Local, regional, national and international

TVs power comes

In the ability to combine sight and sound

Television advertising is:

1. effective
2. expensive

Why is it expensive?
Disadvantages

Production
1. cost
2. selectivity
3. clutter
4. durability

AIDA

1. attract the consumers attention

2. interest
3. desire
4. action

Radio is

Everywhere

Radio has a good

Advantages

Local reach
1. Lead time
2. mechanical requirements
3. selectivity

Disadvantages

1. costs
2. frequency
3. durability
4. clutter

Out-of-home

1. Billboards
2. bus
3. subway

Advantages

1. Frequency
2. reach
3. clutter

Disadvantages

1. selectivity
2. mechanical requirements
3. cost

Direct to home often called: Junk Mail

2 Types:

1. Targeted campaigns
2. Aggregate campaigns

Targeted campaigns

Uses information to locate potential customers

Aggregate campaigns

Use local distribution companies or telemarketers to

saturate an area

Advantages

1. reach
2. costs

Disadvantages

1. selectivity
2. clutter

The Internet

3 Major types:
1. web sites
2. ads on other sites
3. e-mail advertising

Web Sites

www can be advertised in several ways

1. yellow pages
2. other ads
3. search engines

Search Engines

Examples:

Websites that return lists when prompted by people

looking for specific information
1. google
2. yahoo
3. ask
4. msn

How they work:

The company on the top of the list pays 1 cent more per

hit than the company in number 2 spot

However

Advantages

If there are no competitors for your product or service, a

well constructed site will be found by certain search
engines such as Google. (see Beta tags in your
FrontPage notes)

1. selectivity
2. inexpensive
3. mechanical requirements
4. durability
5. frequency

Creative use of permission

based e-mail

That targets a customer database is the best way to reach

interested consumers

Specialty Advertising

Also known as premium and incentive marketing

Company puts brand

identification on:

1. matchbooks
2. golf caps
3. shirts
4. pens watches
5. toys

Advantages (9.3)

1. durability
2. selectivity

3. mechanical requirements
4. costs
Disadvantages

1. lead time
2. reach
3. work?

With the advent of the ad server, marketing through the Internet opened new frontiers
for advertisers and contributed to the "dot-com" boom of the 1990s. Entire
corporations operated solely on advertising revenue, offering everything from
coupons to free Internet access. At the turn of the 21st century, a number of websites
including the search engine Google, started a change in online advertising by
emphasizing contextually relevant, unobtrusive ads intended to help, rather than
inundate, users. This has led to a plethora of similar efforts and an increasing trend of
interactive advertising.

The incredibly large number of websites and the ability to use search engines like
Google, has made it increasingly difficult for retailers to decide where to spend
their advertising dollars. Traditional Media as outlined above is under serious
attack and are losing a lot of advertising revenue to online advertisers.
Publicity
Publicity

Free Media coverage + or -

Negative publicity

Can damage sales

Public relations companies Coordinates media relations, lobbies government and

manages crises.
Database is PR managers Most valuable tool
Database contains

Names of writers, editors, producers, photographers and

everyone important in the media

Press releases

Print ready stories about + things about their clients

Press kit

Pictures, bios, tv clips other facts

Press conference

Interview, where media can ask questions

Press Junket

All expense paid trip organized by PR firms to take media

people to a PR event

Lobbyist

Try to convince politicians to support their side when

voting on legislation which affects business.

When things go wrong

PR firms provide damage control.

Sales Promotion

Sales Promotion

Non personal activities that marketers use to try to boost

sales over a specific period of time

Sales promotion adds value By reducing price or adding a reward

Promotions are targeted to:

1. consumers
2. distributors

Businesses Use promotions

for:

1. build traffic in a store or trade show

2. create extra interest in product, during competitive
or tough period

3. motivate staff
4. introduce new product
5. clear old stock
Types of Promotions:

1. Contests & sweepstakes

2. Refunds and rebates
3. coupons
4. premiums and self liquidators
5. samples
6. special sales
7. POP displays

Contests & sweepstakes

Award a prize to a selected participant

Difference between the 2

Contest requires skill, sweepstakes is random only

Canadian law prohibit

Sweepstakes

Loopholes

1. Skill testing question

2. opportunity to enter without buying

Contests and sweepstakes Create mailing lists

help companies
Refund

Return of the full amount of the price

Rebate

Returns a portion of the price

Rebates can be used to

Group a number of brands together

Coupon is
Sources

A document that entitles the bearer to a discount

1. internet
2. mail
3. print ads
4. store
5. coupon books

Redemption Rate

# used vs. number issued

Premiums

Free product or service

Self liquidator

Product or service offered at a substantially reduced cost

In both cases

Consumer must buy another product or service first

Examples

1. cards
2. points

Samples are one of the

Most effective and expensive promotional activities

In store sampling is

The most effective

Reasons for Special sales:

1. new lines
2. old stock
3. old season
4. traffic during tough times
5. Holiday

Give 3 examples of special

1.

sales:

2.
3.

Point of Purchase Displays

1. racks
2. cases
3. shelves

Push or pull marketing?

Why is it effective?

1. inexpensive merchandise
2. attractively displayed

Display is free; why?

Retailers often have to buy lots of product to get it

Personal Selling

A sale is
Methods:

Transfer of title from seller to buyer

1. internet
2. phone
3. mail
4. person

Personal selling
Factors that determine

When transfer is handled in person

1. complexity

whether personal selling is

required:

2. high price
3. industrial vs. consumer
4. license requirements

Types of sales positions:

1. retail clerk/cashier

Minimum wage

2. retail commissioned

% of total sales

3. detail/route
4. contact
5. sales representative
6. agent or broker

Salary + commission
Good salary
Commission-good potential

7. sales engineer

Commission-highly paid

8. auctioneer

Very high salary

Commission-based on bid

The sales process

1. acquire knowledge
2. make approach
3. determine wants
4. present products
5. handle objections
6. close sale
7. follow up

Salespeople must
3 things salespeople should
remember:

Know about the product or service they are selling

1. Customer entered for a reason

2. once presented, customer can ask for help

3. cue is when customer stops to look at a specific
product

Salespeople can only sell if:They know what the customer wants
How can they accomplish Asking the right questions
this?
Sale doesnt begin until:
A better way to sell

The customer objects.

1. anticipate all possible objections
2. develop a series of questions aimed at overcoming
objections before they arise
3. ask each question before attempting to close the
sale, thus leaving the customer with no rational
reason not to buy. They either buy, or look stupid!

Closing the sale

1. Always ask for the sale- assume it

1. will that be cash or credit?
2. when do you want it delivered
3. do want us to wrap it for you
4. do you want it in white or black?

Why sell add-ons?

1. may not be able to use without

2. free time
3. may lose easy sale

Good salespeople keep

Files on every customer

Why?

1. sell them other stuff in the future

2. sell to friends and relatives