MT 219 Marketing Unit Seven

Advertising, Public Relations, Personal Selling and Sales Promotion

Dr. Bea Bourne

Note: This seminar will be recorded by the instructor.

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Before we get started:

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Review of Unit 6

• In Unit 6, we looked at the way producers of goods get their products into the hands of consumers through distribution channels and by developing a sound supply chain management system. We also looked at the different types of intermediaries in the distribution process, particularly with regard to wholesalers and retailers

Reading Assignment

Chapter 12• “Communicating Customer Value: Advertising and Public Relations,” examines the

first two components of the promotional mix in more detail. • Just as we have the marketing mix, there is also a promotional mix, comprised of

advertising, public relations, personal selling, sales promotion and direct marketing.

Chapter 13 • “Communicating Customer Value: Personal Selling and Sales Promotion,” continues

our consideration of the promotional mix, which will conclude in next week’s reading. • Personal selling is one of the most effective ways of promoting a firm’s products, but

it is also the most expensive way to promote a product.

Our Topics for This Week

• In this unit, we will look at the necessity of having an integrated marketing communications (IMC) strategy in promoting products.

• We are also going to start an examination of each of the five elements of the promotion mix and provide insight into how each of these elements can help provide consumers with the information they need to make purchase decisions.

• Questions

The Promotion Mix

Four elements of the promotional mix:

Advertising

Public Relations

Personal Selling

Sales Promotion

The fifth- Direct Marketing will be explored in Unit 8.

Integrated Marketing Communications

• Assuring consistent messages through the coordination of promotional efforts

• The objective is to generate maximum informational and persuasive impact

• Generally, all five of the promotional mix are used to get maximum effect- advertising, personal selling, sales promotion, direct marketing and publicity

Promotion mix strategies- Push vs. Pull

• Push - budgets are directed to resellers, often through personal selling

• Pull – budgets are directed to the consumer, often through advertising and promotion

Advertising

• Paid non-personal communication through mass media

• Advantages- Cost efficient on a per person reached basis- Highly flexible, and allows for repetition- Adds value- Lends legitimacy

• Disadvantages- Out of pocket outlay is high- Hard to measure sales effect unless source coding is used- Feedback usually slow

Types of Advertising

• Institutional• Advocacy• Product• Pioneer

• Competitive• Comparative• Reminder• Reinforcement

Major Advertising Objectives

• Inform

• Persuade

• Remind

• Good way to remember this is R.I.P.

Budget Decisions

• Affordable

• Percent of sales

• Competitive parity

• Objective and task

Developing Advertising Strategy

• Two major elements- Creating advertising messages and media selection

• Key issues in developing advertising strategy- Breaking through the clutter

- The need to make advertisements that break through clutter

Message Strategy

• Message should be-Relevant and important -Believable-Executable-Able to convey competitive advantage-Memorable-Undertake some effect to move consumer towards some action

-Consistent with other parts of the promotional mix

Media Decisions

• Sets reach, frequency and impact objectives

• Select major media types

• Specific methods- media vehicles and schedule

• Set media scheduling patterns

What are the advantages and disadvantages of TV advertising?

Television

Advantages

Large audiences

Low cost per person reached

Sight and sound

Visible

Confers legitimacy

Disadvantages

High out of pocket cost

Perishable

Waste coverage

What are the advantages and disadvantages of Internet advertising?

The Internet

Advantages

Extremely selective

Interactive

Low cost

Immediate feedback

Disadvantages

Viewers controls viewing

Fairly low impact on viewer

What are the advantages and disadvantages of Newspaper advertising?

Newspapers

AdvantagesReaches large audiencesPurchased to be readShort lead timeFrequent publicationBelievableGood for comparisonCan cover local areas

DisadvantagesNot selective socioeconomic allyShort lifePoor reproductionClutteredNot as popular as they once

were

What are the advantages and disadvantages of Direct Mail advertising?

Direct Mail

Advantages

Very selective

Flexible and selectable segments

Can be personalized

Can arrive in solo package

Disadvantages

Considered as junk mail

High cost per exposure

What are the advantages and disadvantages of Magazine advertising?

Magazines

AdvantagesSelectivity

Good reproduction

Long life

Prestigious

Full color ads

DisadvantagesHigh absolute dollar cost

Long lead time

What are the advantages and disadvantages of Radio advertising?

Radio

Advantages

Inexpensive

Flexible

Targeted

Disadvantages

Audio only

Background medium

Short life

Outdoor Advertising

Advantages

Flexible

Can provide heavy exposure

Low cost per exposure

Good placement selectivity

Disadvantages

No good audience selectivity

Creative limitations

People may ignore

Measuring Advertising Effectiveness

A critical part of every advertising campaign.

Provides feedback on whether the campaign objectives were fulfilled.

The effectiveness is difficult to measure, except for direct mail

Public Relations

Communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Also called publicity.

Individual brands generally have publicity/public relations done at the corporate level.

Some people call this “free advertising,” but is can be expensive and must be done well to be effective.

Examples?

Personal Selling

• Paid Personal Communication• Advantages

- Provides significant impact on customers due to personal contact

- Interactive- Allows for immediate impact and adjustment

• Disadvantages- Costly- most costly part of promotion based on people reached

• If it is so costly, why is it done?

Steps in Managing the Sales Force

• Designing sales force strategy and structure- Structure-Territory, Product or Customer-based

- Size of sales force

- Outside or inside sales force

- Individual or team selling

• Recruiting and selecting salespeople

• Training salespeople

Steps in Managing the Sales Force- cont.

• Compensating salespeople- Commission

- Salary

- Combination

• Supervising and motivating salespeople

• Evaluating salespeople’s performance

The Personal Selling Process

• Prospecting• Pre-approach- Research is important• Approach• Presentation• Handling objections• Closing the Sale• Follow-up- To help ensure subsequent purchases

Sales Promotion

• Direct incentive to buy• Growing rapidly due to its effectiveness• May be directed at salespeople, resellers, and

consumers- anywhere in the distribution chain• Examples include free samples, coupons, contests,

premiums, rebates, buy one get one frees, frequent buyer programs, etc.

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Questions

Week 7 Assignments

In the Unit 2 discussion, you selected a brand to research throughout the remainder of the course. Then in Units 5 and 6 you began your research and writing to detail your brand’s product, price, and place. Now based on feedback from your instructor you will correct and hone your Unit 5 and 6 submissions. Then here in Unit 7, you will continue to develop your final project (due in Unit 8).

Using your Final Project document you started in Unit 5 and 6, insert your Unit 7 portion of your assignment following the instructions below:This unit’s assignment:Based on the brand that you chose in the Unit 2 discussion, you will develop the promotion portion of your final project in the assignment for this unit. Using the references you have found to learn about your chosen brand, write a one page APA style essay providing the following information: Continued

• Promotional Mix • Make sure to briefly include all of the following in this section: Advertising, Public Relations,

Personal Selling, and Sales Promotion. Discuss what is needed for an IMC (Integrated Marketing Communications) plan. Analyze advertising plans in terms of message or execution.

• Based on your examination, does your brand do a good, adequate, or poor job of serving the needs of its customers? Do your research and remember to analyze each element of the promotion mix in terms of how it meets the needs of the target consumers. For example, examine if the promotions used are effective or not. Does your brand use a pull or push strategy and why? Identify and discuss the types of promotions used. Throughout the paper, you need to demonstrate practical application of the concepts learned throughout the course.

• After you have checked your assignment for grammar and spelling, submit your Unit 7 assignment as a continuation of your Final Project document you started in Unit 5. Make sure you specify Promotion as a subheading in the document, alerting your instructor to your additional work for a grade.

Week 7 Unit 6 and 7 Review

• Your ungraded Review has 20 multiple choice questions and covers the e-text readings for Units 6 and 7 (e-text chapters 10, 11, 12 and 13). This Review is ungraded.

• The following applies to this Review: • This Review is only available until the end of this unit (Unit 7). • This Review is not timed. • You can enter and exit the Review as many times as you like

before the Unit is finished. Be sure to save your work before you exit the Review.

• When you are ready, you may submit your final Review responses.

• I appreciate your time and attention during our 1 hour seminar today. If you have questions, feel free to contact me: BBourne@kaplan.edu and I’ll be happy to help!

• See you in Class!

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Thank you