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Chapter 15

Advertising, Sales

Promotion

and Public Relations

PRINCIPLES OF MARKETING

Eighth EditionPhilip Kotler and Gary Armstrong

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15-2What i s A dv er t is ing ?

•

Any form of nonpersonal presentationand promotion of ideas, goods, orservices by an identified sponsor.

• U.S. advertisers spend in excess of $175billion each year.

• Advertising is used by: – Business firms, –

Nonprofit organizations, – Professionals, – Social Agencies.

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15-3Major Decis io ns in A dv er t i s ing

Objectives Setting

Budget Decisions

Message Decisions

Campaign Evaluation

Media Decisions

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Informative AdvertisingBuild Primary Demand

Set t ing Object ives

Persuasive AdvertisingBuild Selective Demand

Comparison AdvertisingCompares One Brand to

Another

Advertising Objectives• Specific Communication Task

• Accomplished with a Specific Target Audience• During a Specific Period of Time

Reminder AdvertisingKeeps Consumers Thinking

About a Product.

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15-5Set t ing the A dv er t i s ing B ud get

Stage in the ProductLife Cycle

Competitionand Clutter

MarketShare

AdvertisingFrequency

ProductDifferentiation

Factors inSetting theAdvertising

Budget

Advertising Budget Methods

Affordable, Percentage of Sales, Competitive-Parity andObjective-and-Task

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15-6Click to add t i t le

Plan a Message StrategyGeneral Message to Be Communicated to Customers

A dv er t i s ing Strateg yCreat ing Ad ver t is ing Mess ages

Develop a MessageFocus on

Customer Benefits Creative Concept“Big Idea”

Visualization or PhraseCombination of Both

Advertising AppealsMeaningfulBelievableDistinctive

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15-7A dv er t i s ing StrategySelect in g A dv er t is ing Media

Step 1. Decide on Reach, Frequency,and Impact

Step 2. Choosing Among Major Media TypesMedia Habits of Target Consumers

Nature of the ProductType of MessageCost

Step 3. Selecting Specific Media VehiclesSpecific Media Within a Given Type, i.e. Magazines.Must Balance Media Cost Against Media Factors:

Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media TimingScheduling of Advertising Over the Course of a Year

Pattern of Ads: Continuity or Pulsing

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15-8A dv er t i s ing Evalua tion

Communication Effects

Is the Ad Communicating Well?

Advertising Program Evaluation

Sales Effects

Is the Ad Increasing Sales?

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15-9Ways to Han dle A dv er t is in g

Sales Departments in

Small Companies

Advertising Agency

Firm that Assists Companiesin Planning, Preparing,Implementing and

Evaluating TheirAdvertisingPrograms.

Advertising Departmentsin Larger Companies

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15-10In te rnat iona l Ad vert i s ing Decis io ns

Adaptation ofGlobal Advertising

Advertising Media Costs& Availability

Regulation ofAdvertising Practices

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15-11Wh at is Sales Prom ot ion ?

•

Mass communication technique thatoffers short-term incentives to encouragepurchase or sales of a product or service.

• Rapid growth in the industry has beenachieved because:

– Product managers are facing more pressureto increase their current sales,

– Companies face more competition, – Advertising efficiency has declined, – Consumers have become more deal

oriented.

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15-12

Point-of-PurchaseDisplays

Consu m er - Prom ot ion Tools

Premiums

Price Packs

Cash Refunds

Coupons

Samples

Short-Term Incentives to Encourage Purchase

or Sales of a Product or Service.Consumer-Promotion

ObjectivesConsumer-Promotion

Tools

PatronageRewards

GamesSweepstakes

Contests

AdvertisingSpecialtiesPatronageRewards

Entice Consumers to

Try a New ProductLure Customers Away

From Competitors’ Products Get Consumers to “Load Up’

on a Mature ProductHold & Reward Loyal

CustomersConsumer Relationship

Building

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15-13

SpecialtyAdvertising

Items

Trad e - Prom o t ion To o ls

Contests

Free Goods

Buy-BackGuarantees

AllowancesPrice-Offs

Short-Term Incentives That are Directed toRetailers and Wholesalers.

Trade-PromotionObjectives

Trade-PromotionTools

PatronageRewards

Push Money

Discounts

Premiums

Displays

Persuade Retailers or

Wholesalers to Carry a BrandGive a Brand Shelf Space

Promote a Brand inAdvertising

Push a Brand to Consumers

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15-14Wh at i s Publ ic Relat ions ?

• Building good relations with the company’svarious publics by obtaining favorablepublicity, building up a good “corporateimage” and handling or heading offunfavorable rumors, stories and events.

• Major functions are: – Press Relations or Press Agentry – Product Publicity – Public Affairs – Lobbying – Investor Relations – Development

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SpecialEvents

WrittenMaterials

CorporateIdentity

Materials Speeches

News

AudiovisualMaterials

Major Pu b l ic Relat ion s To o ls

PublicService

Activities

Web Site

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Chapter 16

Personal Selling andSales Management

PRINCIPLES OF MARKETING

Eighth EditionPhilip Kotler and Gary Armstrong

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15-17The Natu re of Pers o n al Sel l in g

• Involves an individual acting for a company byperforming one or more of the following activities:

– Prospecting, – Communicating, – Servicing, – Information Gathering.

• The term salesperson covers a wide spectrum ofpositions from:

– Order Taking (department store salesperson) – Order Getting (someone engaged in creative selling) – Missionary Selling (building goodwill or educating

buyers)

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15-18The Ro le of th e Sales Forc e

• Personal Selling is effective because

salespeople can: – probe customers to learn more about their

problems, – adjust the marketing offer to fit the special needs of

each customer, – negotiate terms of sale, – build long-term personal relationships with key

decision makers.

• The Sales Force serves as a critical linkbetween a company and its customers sincethey:

– represent the company to customers, and –

represent customers to the company.

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15-19Man ag ing the Salesfo rce

Designing Salesforce Strategy and Structure

Recruiting and Selecting Salespeople

Training Salespeople

Compensating Salespeople

Supervising Salespeople

Evaluating Salespeople

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15-20Com pensa t ing Salesp eop le

Componentsof

Compensation

Sales Force Compensation Plans Can Both MotivateSalespeople and Direct Their Activities.

Benefits

Bonus

Salary

Commission

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15-21How Salesp eo ple Sp end Th eir Tim e

AdministrativeTasks17%

TelephoneSelling

21%

Waiting/Traveling20%

Service Calls12%

Face-to-FaceSelling

30%

CompaniesLook For Waysto Increase theAmount ofTimeSalespeopleSpend Selling.

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15-22Evaluat ing Salesp eop le

AnnualTerritory

Marketing Plan

CallReports

ExpenseReports

WorkPlan

SalesReport

SourcesofInformation

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Step 1. Prospecting and Qualifying

Step 2. Preapproach

Step 3. Approach

Step 4. Presentation/ Demonstration

Identifying and Screening ForQualified Potential Customers.

Learning As Much As PossibleAbout a Prospective CustomerBefore Making a Sales Call.

Knowing How to Meet theBuyer to Get the RelationshipOff to a Good Start.

Telling the Product “Story” tothe Buyer, and Showing theProduct Benefits.

Step s in th e Sel l ing Pro cess

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Step 5. Handling Objections

Step 6. Closing

Step 7. Follow-Up

Seeking Out, Clarifying, andOvercoming CustomerObjections to Buying.

Asking the Customer for theOrder.

Following Up After the Sale toEnsure Customer Satisfactionand Repeat Business.

Step s in th e Sel l ing Pro cess

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h ll

15-25Relat ion sh ip Market ing

• Process of creating, maintaining,and enhancing strong, value-ladenrelationships with customers andother stakeholders.

• Based on the idea that importantaccounts need focused andcontinuous attention.