12. managing advertising, pr & sales promotions

8/3/2019 12. Managing Advertising, PR & Sales Promotions

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1

Managing

Advertising, PublicRelations & Sales

Promotions

By

Dr. Kevin Lance Jones



2

Major Decisions in Advertising

Objectives Setting

Budget Decisions:

– a) Message Decisions

– b) Media Decisions

Campaign Evaluations



3

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.



4

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.



5

Advertising Budget Factors that

MUST BE CONSIDERED

Market Share & Consumer Base

Competition & Clutter

Advertising Frequency

Product Substitutability

Stage in the PLC (Product Life Cycle)



6

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 audienceselectivity.




continued

DIRECT MAIL –

Advantages: Audience selectivity;

flexibility, no ad competition within same

medium; allows personalization.

Limitations: Relative high cost, “junk mail”

image.




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.




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.




Wrap-up OUTDOOR EXPOSURE –

Advantages: Flexibility; high repeat

exposure; low cost; low message

competition.

Limitations: Little audience selectivity;

creative limitations.



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.



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



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



Advertising Evaluation

Advertising Program Evaluation has two

considerations:

COMMUNICATION EFFECTS –

is the Ad Communicating Well?

SALES EFFECTS –

is the Ad Increasing Sales?



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



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



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



19

“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



24

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)



30

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



32

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



34

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



Consumer Issues in Direct

Marketing

It’s an Irritation

It’s Unfair business dealings

It’s too deceptive and fraudulent

It’s an invasion of our privacy

12. managing advertising, pr & sales promotions

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