Managing Advertising, Public Relations & Sales Promotions

By

Dr. Kevin Lance Jones

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Major Decisions in Advertising

Objectives Setting Budget Decisions:
a) Message Decisions b) Media Decisions

Campaign Evaluations

Advertising Objectives
Specific Communication Tasks Accomplished with a Specific Target Audience During a Specific Period of Time INFORMATIVE ADVERTISING builds PRIMARY Demand PERSUASIVE ADVERTISING builds SELECTIVE Demand COMPARISON ADVERTISING compares one brand to another REMINDER ADVERTISING keeps consumers thinking about product.
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The Five Ms of Advertising

MISSION sales goals, advertising objectives MONEY factors to consider: a) Stage of PLC, b) Market share and consumer base, c) Competition and clutter, d) Advertising frequency, and e) Product substitutability. MESSAGE message generation, message evaluation and selection, message execution, social-responsibility. (AIDA?) Know what this is? (Awareness, Interest, Desire, Action) MEDIA Reach, frequency, impact; Major media types, Specific Media vehicles, Media timing, Geographical media allocation. MEASUREMENT communication impact and sales impact.

Advertising Budget Factors that MUST BE CONSIDERED

Market Share & Consumer Base Competition & Clutter Advertising Frequency Product Substitutability Stage in the PLC (Product Life Cycle)

Profiles of Major Media Types

NEWSPAPERS Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability. Limitations: Short-life; poor reproduction quality; small pass-along audience.

Profile of Major Media Types

continued

TELEVISION Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses. Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity.
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Profiles of Major Media Types

continued

DIRECT MAIL Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization. Limitations: Relative high cost, junk mail image.

Profiles of Major Media Types

continued

RADIO Advantages: Mass usage; high geographic and demographic selectivity; relatively low cost per reach. Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences.
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Profiles of Major Media Types

continued

MAGAZINES Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership. Limitations: Long ad purchase lead time; waster circulation; no guarantee of position.

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Profiles of Major Media Types Wrap-up

OUTDOOR EXPOSURE Advantages: Flexibility; high repeat exposure; low cost; low message competition. Limitations: Little audience selectivity; creative limitations.

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Classification of Advertising Timing Patterns

Concentrated set at different times a day, month Continuous set to run in morning, afternoon, evening, specific times of year (holiday stuff- National Day, May Day) Intermittent set to run occasionally, more random than set pattern Catching prospective consumer off guard.
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Simplified Rating Sheet for Ads

1. ATTENTION? How well does the ad catch the readers attention ( 0 25) 2. READ-THROUGH? How well does the ad lead the reader to read further (0 25) 3. AFFECTIVE? How effective is the central particular appeal (0 25) 4. BEHAVIOR? How well does the ad suggest follow-through action (0 25)
GRADING SCALE: 0-20 = Poor ad 20-40 = Mediocre ad 40-60 = Average ad 60-80 = Good ad 80-100 = Great ad

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Advertising Strategy Message Execution

GOAL: Turning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest! TYPICAL MESSAGE EXECUTION STYLES Available:
Slice of life (making life better) Lifestyle (change or modification) Fantasy Mood or Image Musical Personality Symbol Technical Expertise Scientific Evidence Testimonial Evidence
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Advertising Evaluation
Advertising Program Evaluation has two considerations: COMMUNICATION EFFECTS is the Ad Communicating Well? SALES EFFECTS is the Ad Increasing Sales?

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Why Increase Sales Promotion?

Growing retailer power Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Increased managerial accountability Competition
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Channels of Sale Promotions

Manufacturer Trade Promotions designed to attract Retailer or Consumer Promotions to attract Consumers Retailers can create Retail Promotions to attract consumers. Manufacturers can use a PUSH strategy offering manufacturing discounts. Retailers can use a pull strategy making product or service so enticing that consumers want to buy Manufacturers to consumers can use Pull strategy
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Consumer Promotion
CONSUMERPROMOTION OBJECTIVES Entice consumers to try new product Lure customers away from competitors product Get consumers to loadup on a mature product Hold & reward Loyal customers Consumer Relationship building CONSUMERPROMOTION TOOLS Samples Coupons Cash refunds Premiums Advertising specialties Patronage rewards Contests Sweepstakes Games Point-of-purchase display
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Deal Proneness
Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997 Examination of deal proneness among consumers in a supermarket setting. Survey & Grocery Receipts used Eight types of deals: 1) cents off, 2) one-free, 3) gift, 4) display, 5) rebate, 6) contest, 7) sale, and 8) coupon
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Deal Proneness
Liechtenstein, Burton, & Netemeyer
continued

Cluster analysis yielded two interpretable results: 49% are deal prone, 51% not 24% High deal prone, 50% intermediate, 26% deal insensitive Deal-proneness a generalized construct (crosses type of promotion) Younger & Less educated consumers more likely to be deal prone.
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Trade Promotions
TRADE-PROMOTION OBJECTIVES: Persuade Retailers or Wholesalers to Carry a Brand Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers TRADE-PROMOTION TOOLS: Price-offs Allowances Buy-back guarantees Free goods Contests Premiums Displays Discounts Push Money Specialty Advertising items
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Business-to-Business Promotions
BUSINESSPROMOTION OBJECTIVES Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople BUSINESSPROMOTION TOOLS: Conventions Trade Shows Sales Contests

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Major Public Relations Tools

Written Materials Audiovisual Materials Corporate Identity Materials Public Service Activities Web Site News Bulletins Speeches Special Events
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Managing the Sales Force

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When might you decide to use Personal Selling?

Right budget (straight commission) Concentrated Market
A) few buyers

B) High value product

Product must be customized to succeed Personal contact is important Must demonstrate product Product involves trade-in/up features
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Designing the Sales Force

Sales force objectives clearly distinguished Sales force strategy outlined Sales force structure designed Sales force size determined Sales force compensation set

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Additional Duties involved in Managing the Sales Force

Recruiting and selecting sales representatives Training sales representatives Supervising sales representatives Motivating sales representatives Evaluating sales representatives

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Improving Sales Force Effectiveness

Training in sales techniques & professionalism Training in Negotiation skills Training in Relationship-building skills Training in Time management skills

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How is your sales force doing? Performance Evaluations?

Current-to-past Customer satisfaction Qualitative evaluations Benchmarking techniques (others, industry, divisional, etc)

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Steps in the Selling Process

STEP 1: PROSPECTING AND QUALIFYING
Identifying and screening for QUALIFIED

POTENTIAL CUSTOMERS.

STEP 2: PRE-APPROACH
Learning as much as possible about a prospective

customer BEFORE making a sales call.

STEP 3: APPROACH
Knowing how to meet the buyer to get the

REALATIONSHIP off to a GREAT start.

STEP 4: PRESENTATION /DEMONSTRATION

Telling the PRODUCT Story to the buyer, and

SHOWING the PRODUCTS Benefits

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Steps in the Selling Process

continued

Step 5: HANDLING OBJECTIONS

Seeking Out, Clarifying and Overcoming customer

objections to buying.

Step 6: CLOSING
Asking the Customer for the Order!

Step 7: FOLLOW-UP
Following up after the sale to ENSURE customer

satisfaction and REPEAT BUSINESS

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Dr. Jones Alternative Step Approach to Sales

Findem Grabem Showem Answerem Sellem Keepem

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Benefits of Direct Marketing

TO CUSTOMERS! Fun, Convenient & Hassle-Free Saves Time Larger Merchandise Selection Comparison Shopping Order Products for Themselves or Others
TO COMPANIES! Mailing Lists for Almost any Market Customized Offers Ongoing Relationships with Customers Timed to Achieve Higher Readership & Response Alternative Media/Message Testing Privacy Measurable Responses
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Uses for Databases

Identify Prospects easier Match customers & offers easier Deepen customers loyalty easier Reactivate customers easier

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Direct Marketing Channels

Face-to-Face Selling Direct-Mail Marketing Catalog Marketing Telemarketing Direct-Response TV Marketing On-line Marketing

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Consumer Issues in Direct Marketing

Its an Irritation Its Unfair business dealings Its too deceptive and fraudulent Its an invasion of our privacy

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