Advertising

BUSI 406
PRINCIPLES OF MARKETING:
ADVERTISING, PUBLICITY, AND SALES PROMOTION
Today’s Agenda
Any questions?
 Chapter 14: “Personal Selling” Guest Speaker –
KFBS Professor Dave Roberts for Wednesday’s class in Koury
Auditorium at 12:30-1:45 and at 5:00-6:15 -- (our sections will
not meet Wednesday at our regular times)
 Let’s Review
 Cover material from Ch. 15
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Personal Selling Preview for Wednesday
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What is personal selling? Why is it important?
Types of personal selling
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What role does the internet play in sales?
Hiring & Training salespeople
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Importance of effective listening
Compensating and motivating salespeople
Personal selling process
Sales presentation approaches
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Order Getting, Order Taking and Supporting
Prepared, Consultative & Selling Formula
Importance of asking the right question and effective listening
Not very effective listening…
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http://www.youtube.com/watch?v=1d5T6D4ZwHw
Active Listening
Source: Mind Tools
Pay attention.
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Give the speaker your undivided attention, and acknowledge the
message. Recognize that non-verbal communication also "speaks"
loudly.
Look at the speaker directly.
Put aside distracting thoughts. Don't mentally prepare a rebuttal!
Avoid being distracted by environmental factors.
"Listen" to the speaker's body language.
Refrain from side conversations when listening in a group
setting.
Show that you are listening.
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Use your own body language and gestures to convey your
attention.
Nod occasionally.
Smile and use other facial expressions.
Note your posture and make sure it is open and inviting.
Encourage the speaker to continue with small verbal
comments like “yes” and “uh huh.”
Provide feedback.
Our personal filters, assumptions, judgments, and beliefs
can distort what we hear. As a listener, your role is to
understand what is being said. This may require you to
reflect what is being said and ask questions.
• Reflect what has been said by paraphrasing. "What I'm
hearing is…" and "Sounds like you are saying..." are
great ways to reflect back.
• Ask questions to clarify certain points. "What do you
mean when you say..." "Is this what you mean?"
• Summarize the speaker's comments periodically.
Defer judgment.
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Interrupting is a waste of time. It frustrates the speaker and
limits full understanding of the message.
Allow the speaker to finish.
Don't interrupt with counter arguments.
Empathize with their point of view
Understand what is important to them
Respond Appropriately.
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Active listening is a model for respect and understanding. You
are gaining information and perspective. You add nothing by
attacking the speaker or otherwise putting him or her down.
Be candid, open, and honest in your response.
Assert your opinions respectfully.
Treat the other person as he or she – or you -- would want
to be treated.
Strategy Planning, Advertising,
Publicity & Sales Promotion
CH 13: Promotion
Intro. To Integrated
Marketing
Communications
Advertising
spending
Advertising
strategy
decisions
CH 14: Personal
Selling and
Customer Service
Advertising
& the law
CH 15: Advertising,
Publicity & Sales
Promotion
Publicity &
communication
Sales
promotion
decisions
Today’s Goals
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What is Advertising?
Major decisions in advertising
Advertising objectives
Choosing the “best” medium
Measuring Advertising effectiveness
Publicity
Sales Promotions
What Is Advertising?
Advertising
is a paid, mass
attempt to
persuade
Advertising
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The total spending on advertising is big, and growing
internationally.
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In the US, advertising expenditures have passed the $271billion mark—
over 43% of the total amount spent worldwide. Advertising only
accounts for a small percentage of what people pay for goods and
services. U.S. corporations spend an average of only about 2.5 percent
of sales dollars on advertising….Worldwide it is even less…
Advertising spending varies greatly across product categories
In the US, ~460,000 people work directly in advertising.
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Only about half of these people work for advertising agencies.
The rest work in media and other related functions.
Advertising Objectives
Position Brands
Introduce New Products
Obtain Outlets
Ongoing Contact
Advertising
Objectives
Should be
Specific
Support Sales Force
Get Immediate Action
Maintain Relationships
Objectives Determine the Kinds Of
Advertising
Types of
Advertising
Product
Advertising
Pioneering
Advertising
Competitive
Advertising
Institutional
Advertising
Reminder
Advertising
Competitive Advertising Emphasizes
Selective Demand
Competitive Ads That Are
Comparative
Reminder Advertising
Choosing The “Best” Medium - How To
Deliver The Message
Promotion Objectives
Target Market
Characteristics
Funds Available
Nature of the Media
Advertising and the Internet
Direct
Response
Desired
Click Fraud
Key
Issues
Behavioral
Targeting
Pay per click
advertising
Planning The “Best” Message What To Communicate
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Specifying the copy thrust - what words and illustrations should
we communicate
AIDA
Get Attention
Hold Interest
Arouse Desire
Obtain Action
Measuring Advertising Effectiveness
Is Not Easy
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Success depends on the total marketing mix, not just
advertising.
Research and testing may improve success.
Advertising evaluation
 Measuring
the communication effect (pretest, split
cable, etc.)
 Measuring the sales effect
 Most consumers (B2C and B2B) can’t recall or discount
the role and effect of advertising on their subsequent
behavior
How to Avoid Unfair Advertising
Government May
Say
What’s Fair
FTC Controls
Unfair Practices
Support for
Claims Is Fuzzy
Standards
Are Changing
Publicity
Getting attention & holding
interest
• Viral videos
• Direct-to-consumer press
releases
• Articles in the press
Developing a desired
positioning
• Viral videos
• Games
• Branded services
• Commercial white papers
Arousing desire & obtaining
action
• Customer reviews
• Case studies
• Webinars
Managing ongoing customer
relationships
• Social media like Facebook
• Blogs
• Online communities
• Podcasts, webcasts, webinars
How to Get Your Messages Retweeted (from Professor
Claudia Kubowicz-Malhotra)
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Don’ts
Asking Questions, Hashtags, Links, Contests
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Dos
1. Size matters: Leave room.
2. Grab their attention: Make them read your message.
3. Just ask to be retweeted: There is nothing simpler.
4. Make it personal: Humanize your brand.
5. Share: Validate yourself.
6. Make it practical: Provide news people can use.
7. Save people money: Offer a deal.
8. Engagement matters: Make it relevant and topical.
9. Act now: Create a sense of anticipation.
Sales Promotion Tries to Spark
Immediate Interest
Aimed at consumers or users
• Contests
Aimed at wholesalers or
• Coupos retailers
• Aisle displays
• Price
deals
Aimed
• Samplesat company’s own
• Promotion
allowances
sales
force
• Trade shows
• Sales constests
Point-of-purchase
materials
•• Contests
&
Bonuses
Calendars & gifts
Banners & streamers
•• Meetings
Trade shows
Frequent buyer
programs
•• Portfolios
Meetings & Displays
Sponsored
events
•• Sales
aids
Catalogs
• Training
materials
Merchandising
aids
• Videos
Sales Promotions
Today’s Take-Aways
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Advertising is paid mass marketing.
Managers must set advertising objectives because these
objectives drive which advertising methods should be used.
 Measuring effectiveness is difficult!
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Be sure you have strong claim substantiation before using
comparative advertising
There are lots opportunities in creating positive publicity,
but must be aware of the risks.
Sales promotions are popular, but need to manage
trade-off between attractive offers and brand equity.
Blending all promotional efforts is essential in creating a
successful IMC!