Marketing chapter 12[1]

Ch 12 - 1 Copyright © 2011 Pearson Education

Principles of Marketing, Arab World Edition

Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba

Presentation prepared by Annelie Moukaddem Baalbaki

CHAPTER TWELVEPromotion Mix Strategies: Advertising and Public RelationsLecturer: Insert your name here

Ch 12 -2 Copyright © 2011 Pearson Education

Promotion: Advertising and Public Relations

Topic Outline

12.1 Advertising

12.2 Public Relations

12.3 Personal Selling

12.4 Managing the Sales Force

12.5 The Personal Selling Process

12.6 Sales Promotion


Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising

Developing and Advertising Programs


Advertising

Developing and Advertising Programs

Advertising

Setting Advertising Objectives

An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time.

• Objectives are classified by primary purpose

• Inform

• Persuade

• Remind


Advertising

Informative advertising is used when introducing a new product category; the objective is to build primary demand.

Comparative advertising directly or indirectly compares the brand with one or more other brands.

Persuasive advertising is important with increased competition to build selective demand.

Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product.

Setting Advertising Objectives


Advertising


Advertising

1. Product life-cycle stage

•New products require larger budgets

•Mature brands require lower budgets

2. Market share

•Building or taking market share requires larger budgets

•Markets with heavy competition or high advertising clutter require larger budgets

•Undifferentiated brands require larger budgets

Setting the Advertising Budget


Advertising

Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of:

1. Creating advertising messages

2. Selecting advertising media

Developing Advertising Strategy


Advertising: Developing Advertising Strategy

Ads need to break through the clutter:

1. Gain attention

2. Communicate well

Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers.

• Madison & Vine—the intersection of Madison Avenue and Hollywood—represents the merging of advertising and entertainment

Creating the Advertising Message






Message strategy is the general message that will be communicated to consumers. It Identifies consumer benefits.

Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign. Characteristics of the appeals:

• Meaningful

• Believable

• Distinctive




Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the target market’s attention and interest.

The creative team must find the best approach, style, tone, words, and format for executing the message.




Creating the Advertising Message: Execution



Message execution also includes:

• Tone

- Positive or negative

• Attention-getting words

• Format

- Illustration

- Headline

- Copy

Creating the Advertising Message: Execution



Consumer Generated Messages

1. YouTube videos, MySpace, Google…

2. Brand Web site contests

Benefits of consumer generated messages:

• Low expense

• New creative ideas

• Fresh perspective on brand

• Boost consumer involvement




Major steps include:

1. Deciding on reach-frequency-impact

2. Choosing among major media types

3. Selecting media vehicles

4. Deciding on media timing

Selecting Advertising Media



Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.

Frequency is a measure of how many times the average person in the target market is exposed to the message.

Impact is the qualitative value of a message exposure through a given medium.


Ch 12 - 19 Copyright © 2011 Pearson EducationCopyright © 2011 Pearson Education


Choosing among major media types:

1. Television

2. Internet

3. Newspapers

4. Direct Mail

5. Magazines

6. Radio

7. Outdoor




Selecting Specific media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the message’s:

• Impact

• Effectiveness

• Cost




Narrowcasting focuses the message on selected market segments.

• Lowers cost

• Targets more effectively

• Engages customers better

Narrowcasting Versus Shotgun Approaches



When deciding on media timing, the planner must consider:

1. Seasonality

2. Pattern of the advertising

• Continuity—scheduling within a given period

• Pulsing—scheduling unevenly within a given period



Evaluating Advertising Effectiveness and

Return on Advertising Investment

Return on Advertising Investment is the net return on advertising investment divided by the costs of the advertising investment.

Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runs.

Sales and profit effects compare past sales and profits with past expenditures or through experiments.

Return on Advertising Investment


Other Advertising Considerations

1. Organizing for advertising

• Agency vs. in-house

2. International advertising decisions

• Standardization


Public relations involves 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.

Public relations is used to promote product, people, ideas, and activities.

Public Relations


Public relations department functions include:

• Press relations or press agency

• Product publicity

• Public affairs

• Lobbying

• Investor relations

• Development

Public Relations


Public Relations

• Lower cost than advertising

• Stronger impact on public awareness than advertising

The Role and Impact of Public Relations


Public Relations

Major Public Relations Tools


Personal Selling

Personal selling is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.

Salesperson is an individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

The Role of the Sales Force


Personal Selling

Salespeople are an effective link between the company and its customers to produce customer value and company profit by:

1.Linking the company with its customers

•Representing the company to customers

•Representing customers to the company

2.Coordinating marketing and Sales

The Role of the Sales Force


Managing the Sales Force

Sales force management is the analysis, planning, implementation, and control of sales force activities.



Designing Sales Force Strategy and Structure

Sales Force Structure



Territorial sales force structure refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory.

• Defines salesperson’s job

• Fixes accountability

• Lowers sales expenses

• Improves relationship building and selling effectiveness




Product sales force structure refers to a structure where each salesperson sells along product lines.

• Improves product knowledge

• Can lead to territorial conflicts

Customer sales force structure refers to a structure where each salesperson sells along customer or industry lines.

• Improves customer relationships




Complex sales force structure refers to a structure where a wide variety of products are sold to many types of customers over a broad geographic area and combines several types of sales force structures.




Salespeople are one of the company’s most productive and expensive assets.

• Increases in sales force size can increase sales and costs

Workload approach to sales force size refers to grouping accounts into different classes to determine the number of salespeople needed.

Sales Force Size



Outside salespeople call on customers in the field.

Inside salespeople conduct business from their offices and often provide support for the outside salespeople.

• Technical sales support people

• Sales assistants

Team selling is used to service large, complex accounts.

Other Sales Force Strategy and Structure Issues



Issues in Recruiting and Selecting

1.Careful selection and training increases sales performance

2.Poor selection increases recruiting and training costs

• Lost sales

• Disrupts customer relationships

Recruiting and Selecting Salespeople



Most companies provide continuing sales training via seminars, sales meetings, and web e-learning throughout the salesperson’s career.

Some companies are adding e-learning to their sales training programs.

Training Salespeople



Compensating Salespeople



The goal of supervision is to help salespeople work smart by doing the right things in the right ways.

The goal of motivation is to encourage salespeople to work hard and energetically toward sales force goals.

Supervising and Motivating Salespeople



Supervising Salespeople

Selling and the Internet: Major tool to support salespeople

• Training

• Sales meetings

• Live sales presentations

• Servicing accounts




Sales morale and performance can be increased through:

• Organizational climate

• Sales quotas

• Positive incentives

Motivating Salespeople



Evaluating Salespeople and Sales Force Performance


The Personal Selling Process


The Personal Selling Process

Personal selling is transaction-oriented to close a specific sale with a specific customer.

The long-term goal is to develop a mutually profitable relationship.

Personal Selling and Managing Customer Relationships


Sales Promotion

Sales promotion refers to the short-term incentives to encourage purchases or sales of a product or service:

• Consumer promotions

• Trade promotions

• Business promotions

• Sales force promotions

Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now.


Sales Promotion

Several Factors have contributed to this growth.

1. Product managers are under pressure to increase current sales.

2. Companies face more competition.

3. Competing brands offer less differentiation.

4. Advertising efficiency has declined due to rising costs, clutter, and legal constraints.

5. Consumers have become more deal-oriented.

Rapid Growth of Sales Promotions


Sales Promotion

Consumer promotion objectives:

• Urge short-term customer buying

• Enhance long-term customer relationships

Trade promotions urge retailers to:

• Carry new items or more inventory

• Buy in advance

• Advertise company products

• Get more shelf space

Sales Promotion Objectives


Sales Promotion

Sales force objectives include getting:

•More sales force support for new or current products

•Salespeople to sign up new accounts

Sales Promotion Objectives


Sales Promotion

Major Sales Promotion Tools


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.

Consumer Promotion Tools


Sales Promotion

Premiums are goods offered either for free or at a 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.



Sales Promotion

Contests, 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.

Event marketing



Sales Promotion

Trade Promotion Tools


Sales Promotion

Conventions and trade shows are effective to reach many customers not reached with the regular sales force.

Sales contests are effective in motivating salespeople or dealers to increase performance over a given period.

Business Promotion Tools


Sales Promotion

1. Size of the incentive

2. Conditions for participation

3. Promote and distribute the program

4. Length of the program

5. Evaluation of the program

Developing the Sales Promotion Program


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