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Managing
Advertising, PublicRelations & 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
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Advertising Objectives
Specific Communication Tasks
Accomplished with a Specific Target Audience
During a Specific Period of Time
INFORMATIVE ADVERTISING – buildsPRIMARY Demand
PERSUASIVE ADVERTISING – buildsSELECTIVE Demand
COMPARISON ADVERTISING – comparesone brand to another
REMINDER ADVERTISING – keepsconsumers 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) Advertisingfrequency, and e) Product substitutability.
MESSAGE – message generation, messageevaluation and selection, message execution,social-responsibility. (AIDA?) Know what thisis? (Awareness, Interest, Desire, Action)
MEDIA – Reach, frequency, impact; Majormedia types, Specific Media vehicles, Mediatiming, Geographical media allocation.
MEASUREMENT – communication impact andsales impact.
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Advertising Budget Factors that
MUST BE CONSIDERED
Market Share & Consumer Base
Competition & Clutter
Advertising Frequency
Product Substitutability
Stage in the PLC (Product Life Cycle)
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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.
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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 audienceselectivity.
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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.
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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 andprestige; high-quality reproduction; longlife; 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, morerandom than set pattern… Catching
prospective consumer off guard.
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Simplified Rating Sheet for Ads
1. ATTENTION?
How well does the adcatch the reader’s
attention ( 0 – 25)2. READ-THROUGH?
How well does the adlead the reader to read
further (0 – 25)3. AFFECTIVE?
How effective is thecentral particular appeal(0 – 25)
4. BEHAVIOR?
How well does the adsuggest 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 anActual Ad to Capturethe Target Market’sAttention and Interest!
TYPICALMESSAGEEXECUTIONSTYLES Available:
Slice of life (making lifebetter)
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 attractConsumers
Retailers can create Retail Promotions to attractconsumers.
Manufacturers can use a PUSH strategy – offering manufacturing discounts.
Retailers can use a pull strategy – makingproduct or service so enticing that consumerswant to buy
Manufacturers to consumers can use Pull strategy
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Consumer Promotion
CONSUMER-PROMOTIONOBJECTIVES
Entice consumers to trynew product
Lure customers awayfrom competitors’product
Get consumers to “load-up” on a mature product
Hold & reward Loyalcustomers
Consumer Relationshipbuilding
CONSUMER-PROMOTION 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 supermarketsetting.
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-PROMOTIONTOOLS:
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
BUSINESS-
PROMOTION
OBJECTIVES Generate Business
Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
BUSINESS-
PROMOTION
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 theSales 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 QUALIFIEDPOTENTIAL 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 theREALATIONSHIP off to a GREAT start.
STEP 4: PRESENTATION /DEMONSTRATION
– Telling the PRODUCT “Story” to the buyer, andSHOWING the PRODUCTS “Benefits”
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Steps in the Selling Processcontinued
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
Find’em
Grab’em
Show’em
Answer’em
Sell’em
Keep’em
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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 Relationshipswith Customers
Timed to Achieve HigherReadership & Response
AlternativeMedia/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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