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DHD2009 MKT243 Fundamental Of Marketing
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Fundamental Of Fundamental Of MarketingMarketingMKT243MKT243
Chapter 10Chapter 10Advertising, Sales Promotion, Advertising, Sales Promotion,
Public Relation, Personal Public Relation, Personal Selling and Direct MarketingSelling and Direct Marketing
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Slide OutlineSlide Outline• Effects of advertising• Major types of advertising• Steps in creating an advertising
campaign• Media decisions• Public Relations • Sales Promotion• Personal Selling
1. Steps in Selling Process2. Sales Management
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AdvertisingAdvertising
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Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
AdvertisingAdvertising
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AdvertisingAdvertising
Objectives
• Inform• Persuade• Remind
Setting Advertising Objectives
An advertising objective is a specific communication task to be accomplished with a specific target
audience during a specific time
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Major Types of AdvertisingMajor Types of Advertising
InstitutionalAdvertising
ProductAdvertising
Designed to enhance a company’s image rather than promote a
particular product.
Designed to tout the benefits of a specific good or service.
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Major Types of AdvertisingMajor Types of Advertisinga) Institutional Advertising
-A form of advertising designed to enhance a company’s image rather than promote a particular product.-a.k.a Corporate Advertising-To maintain favorable attitude and image towards the company
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Major Types of AdvertisingMajor Types of Advertisingb) Product Advertising
-A form of advertising that touts the benefits of specific good or service-Consist of 4 types of Product Advertising:
i. Pioneering Advertisingii. Competitive Advertisingiii. Comparative Advertisingiv. Reminder Advertising
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Product AdvertisingProduct Advertisingi. Pioneering/ Informative Advertising
To stimulate primary demand for a new product or product category (introductory stage)
ii. Competitive AdvertisingTo influence demand for a specific brand to compete with other competitors’ brands (Growth stage)
iii. Comparative AdvertisingCompares between two or more competing brands on one or more specific attributes (Maturity stage)
iv. Remainder AdvertisingAdvertising that are aim to help maintain customer relationships and keep customers thinking about the product. It is important with mature products.
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Creative DecisionsCreative Decisions
Develop and evaluateadvertising appeals
Execute the message
Evaluate thecampaign’s effectiveness
Identify product benefits
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Creative Decisions in Advertising Creative Decisions in Advertising (McDaniel, Lamb, Hair)(McDaniel, Lamb, Hair)
1. Identifying Product Benefits-The goal of advertising is to sell the benefits of the product, not its attributes.-An attributes is simple feature of the product e.g: easy-open package or special formulation-Product benefit is what the consumer will achieve by using the product.
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Creative Decisions in Advertising Creative Decisions in Advertising (McDaniel, Lamb, Hair)(McDaniel, Lamb, Hair)
2. Developing & Evaluating Advertising Appeals-Advertising appeal-A reason for a person to buy a product
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Common Advertising AppealsCommon Advertising Appeals
Vanity/Egotism
Other
Environ-mental
conscious-ness
Profit
Fun/Pleasure
Admiration
Health
Love/Romance
Convenience
CommonCommonAppealsAppeals Fear
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Creative Decisions in Advertising Creative Decisions in Advertising (McDaniel, Lamb, Hair)(McDaniel, Lamb, Hair)
3. Executing the Message.-Is the way the advertisement portrays its information-AIDA plan is a good blueprint for executing advertising massage-An Ad must immediately draw the reader’s, viewer’s, or listener’s attention.
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Executing the MessageExecuting the Message
Mood or Image
Musical
Demon-stration
Scientific
Real/AnimatedProductSymbols
Fantasy
LifestyleSlice-of-Life
Humorous
CommonCommonExecutionalExecutional
StylesStyles
Spokes-person/
Testimonial
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Listerine Uses a Slice-of-Life ExecutionListerine Uses a Slice-of-Life Execution
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Apple Uses a TestimonialApple Uses a Testimonial
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Mentadent Uses a DemonstrationMentadent Uses a Demonstration
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Jeep Uses Imagery/ fantasy for the WranglerJeep Uses Imagery/ fantasy for the Wrangler
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Creative Decisions in Advertising Creative Decisions in Advertising (McDaniel, Lamb, Hair)(McDaniel, Lamb, Hair)
4. Post-campaign Evaluation-Have to review the impact of the ad in term of sales, market share or awareness.
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Major Types of Advertising Major Types of Advertising MediaMediaNewspapers
Magazines
Radio
Television
Outdoor Media
Internet
Alternative Media
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Short message life
High production cost
Low selectivity
High absolute cost
Clutter
Mass coverage
High reach
Impact of sight, sound and motion
High prestige
Low cost per exposure
Attention getting
Favorable image
High production cost
High absolute cost
Short message life
Low selectivity
Favorable image
Attention getting
Low cost per exposure
High prestige
Impact of sight, sound and motion
High reach
Mass coverage
Television Pros and ConsTelevision Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
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Clutter
Fleeting message
Audio only
Low attention getting
Local coverage
Low cost
High frequency
Flexible
Low production cost
Well-segmented audience
Low attention getting
Clutter
Audio only
Well-segmented audience
Low production cost
Flexible
High frequency
Low cost
Local coverage
Radio Pros and ConsRadio Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
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Visual only
Long lead time for ad placement
Lack of flexibility
Segmentation potential
Quality reproduction
High information content
Longevity
Multiple readers
Visual only
Long lead time for ad placement
Multiple readers
Longevity
High information content
Quality reproduction
Segmentation potential
Magazine Pros and ConsMagazine Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
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Clutter
Poor reproduction quality
Short life
Low attention getting
High coverage
Low cost
Short lead time for placing ads
Ads can be placed in interest sections
Timely (current ads)
Reader controls exposure
Can be used for coupons
Selective reader exposure
Poor reproduction quality
Low attention getting
Clutter
Short life
Can be used for coupons
Reader controls exposure
Timely (current ads)
Ads can be placed in interest sections
Short lead time for placing ads
Low cost
High coverage
Newspaper Pros and ConsNewspaper Pros and ConsAdvantagesAdvantages DisadvantagesDisadvantages
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Short ads
Local restrictions
Short exposure time
Poor image
Location specific
High repetition
Easily noticed Poor image
Short ads
Short exposure time
Easily noticed
High repetition
Location specific
Outdoor Pros and ConsOutdoor Pros and Cons
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AdvantagesAdvantages DisadvantagesDisadvantages
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Websnarl (crowded access)
Few valid measurement techniques
Limited creative capabilities
Technology limitations
Limited reach
User selects product information
User attention and involvement
Interactive relationship
Direct selling potential
Flexible message platform
Few valid measurement techniques
Technology limitations
Websnarl (crowded access)
Limited creative capabilities
Flexible message platform
Direct selling potential
Interactive relationship
User attention and involvement
User selects product information
Internet Pros and ConsInternet Pros and Cons
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AdvantagesAdvantages DisadvantagesDisadvantages
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Public RelationPublic Relation
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PRPR• Is the element in the promotional mix that
evaluating public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance (McDaniel, Lamb, Hair)
• Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events (Kotler and Armstrong)
• Public relations is used to promote product, people, ideas, and activities
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The Role of Public RelationsThe Role of Public RelationsEvaluates public attitudes
Identifies issues of public concern
Executes programs to gain public acceptance
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• Press relations or press agency
• Product publicity• Public affairs• Lobbying• Investor and Employee
relations• Development• Crisis Management
Public Relations functionsPublic Relations functions
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Public RelationsPublic RelationsPress relations or press agency involves the
creation and placing of newsworthy information to attract attention to a person, product, or service
Product publicity involves publicizing specific products
Public affairs involves building and maintaining national or local community relations
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Public RelationsPublic RelationsLobbying involves building and maintaining
relations with legislators and government officials to influence legislation and regulation
Investor relations involves maintaining relationships with shareholders and others in the financial community
Development involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support
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Public Relation Can Shape Corporate ImagesPublic Relation Can Shape Corporate Images
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Major PRs ToolsMajor PRs Tools1. New product publicity2. Product placement3. Consumer Education4. Event sponsorship5. Issue Sponsorship6. Internet Web sites
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Sales PromotionSales Promotion
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Sales PromotionSales PromotionSales promotion refers to the
short-term incentives to encourage purchases or sales of a product or service:
– Consumer promotions– Trade promotions
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Sales PromotionSales Promotion• Consumer Sales promotion
Targeted to the consumer market or final users
• Trade Sales promotionDirected to members of the marketing channel members, retailers and wholesalers
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Uses of Sales PromotionUses of Sales PromotionImmediate purchases
Increase trial
Boost consumer inventory
Encourage repurchase
Increase ad effectiveness
Encourage brand loyalty
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Tools for Sales PromotionTools for Sales Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Point-of-Purchase Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
CONSUMER TRADE
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Tools for Sales PromotionTools for Sales Promotion• Samples offer a trial amount of a product• Coupons are certificates that give buyers
a saving when they purchase specified products
• Cash refunds are similar to coupons except that the price reduction occurs after the purchase
• Price packs offer consumers savings off the regular price of a product
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Tools for Sales PromotionTools for Sales Promotion• Premiums are goods offered either for free or
at low price
• Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers
• Point-of-purchase promotions include displays and demonstrations that take place at the point of sales
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Samples are often distributed with local Samples are often distributed with local newspapersnewspapers
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Armor All Uses an On-Package Armor All Uses an On-Package SampleSample
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Tools for Sales PromotionTools for Sales PromotionContests, sweepstakes, and games
give consumers the chance to win something—such as cash, trips, or goods—by luck or through extra effort
• Contests require an entry by a consumer• Sweepstakes require consumers to submit
their names for a drawing• Games present consumers with something
that may or may not help them win a prize
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Contests and SweepstakesContests and Sweepstakes
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Contest: a promotion where consumers compete for prizes or money on the basis of skills or ability. Winners are determined by judging entries or ascertaining which entry comes closes to some predetermined criteria
Sweepstakes/games: a promotion where winners are determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are chosen by random selection from a pool of entries or generation of a number to match those held by game entrants.
Illegal in Malaysia!!!
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Trade Sales PromotionTrade Sales Promotion• Trade Allowance• Push money• Training• Free merchandise• Store demonstrations• Business meetings, conventions, and
trade shows
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Personal SellingPersonal Selling
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Personal SellingPersonal Selling
Personal selling is the interpersonal part of the promotion mix and can include:
• Face-to-face communication• Telephone communication• Video or Web conferencing
The Role of the Sales Force
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Personal SellingPersonal SellingSalespeople are an effective link
between the company and its customers to produce customer value and company profit by:
• Representing the company to customers• Representing customers to the company• Working closely with marketing
The Nature of Personal Selling
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Advantages of Personal Advantages of Personal SellingSelling
Detailed explanation or demonstration
Variable sales message Directed at qualified prospects Controllable adjustable selling
costs Effective at obtaining sale and
gaining customer satisfaction
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The Personal Selling The Personal Selling ProcessProcess
The goal of the personal selling process is to get new customers and obtain orders from them
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The Personal Selling ProcessThe Personal Selling ProcessGenerating Leads Qualifying leads
Approaching The customerand probing
needs
Developing andProposingsolutions
Following up Closing thesale
Handling objection
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The Personal Selling ProcessThe Personal Selling Process1) Prospecting identifies qualified potential
customers through referrals from:• Customers• Suppliers• Dealers• InternetIt also can be done by networking using friends and
business contactCurrent way-Telemarketing
-Cold marketing- a form of lead generation which the salesperson approaches potential buyers without any prior knowledge of the prospects’ needs or financial status
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The Personal Selling ProcessThe Personal Selling Process2) Qualifying is identifying good customers
and screening out poor ones by looking at:• Financial ability• Volume of business• Needs• Location• Growth potential• Receptivity and accessibility
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The Personal Selling ProcessThe Personal Selling Process3) Approach is the process where the
salesperson meets and greets the buyer and gets the relationship off to a good start and involves the salesperson’s:
• Appearance• Opening lines• Follow-up remarksPre-approach-A process that describes the
“homework” that must be done by a sales person before he or she contact a person
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The Personal Selling ProcessThe Personal Selling Process4) Developing and Proposing solutionPresentation is when the salesperson tells
the product story to the buyer, presenting customer benefits and showing how the product solves the customer’s problems
• Need-satisfaction approach: Buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problems
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The Personal Selling The Personal Selling ProcessProcess
5)Handling objections is the process where salespeople resolve problems that are logical, psychological, or unspoken.
Use fundamentals of FEEL, FELT, FOUND e.g: “I see how you FEEL! Other have FELT
the same way too until they FOUND….”
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Handling ObjectionsHandling Objections
Use the objection to close the sale
Anticipate specific objections
View objections as requests for information
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The Personal Selling ProcessThe Personal Selling Process
5) Closing the sale- Process where salespeople should
recognize signals from the buyer—including physical actions, comments, and questions—to close the sale
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The Personal Selling ProcessThe Personal Selling Process• 7) Following upFollow-up is the last step in which the
salesperson follows up after the sale to ensure customer satisfaction and repeat business
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Following UpFollowing Up
Employees are trained
Goods or service performas promised
Ensure delivery schedules are met
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Sales Management Sales Management ResponsibilitiesResponsibilities
Evaluate sales force
Compensate and motivate sales force
Recruit and train sales force
Determine sales force structure
Define sales goals and sales process
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Direct MarketingDirect Marketing• Connecting directly with carefully
targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationship