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8/13/2019 ADVSP 15
http://slidepdf.com/reader/full/advsp-15 1/25
Copyright 1999 Prentice Hall
15-1
Chapter 15
Advertising, Sales
Promotion
and Public Relations
PRINCIPLES OF MARKETING
Eighth EditionPhilip Kotler and Gary Armstrong
8/13/2019 ADVSP 15
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Copyright 1999 Prentice Hall
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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15-4
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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15-15
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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15-16
Chapter 16
Personal Selling andSales Management
PRINCIPLES OF MARKETING
Eighth EditionPhilip Kotler and Gary Armstrong
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Copyright 1999 Prentice Hall
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.
15 22
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15-22Evaluat ing Salesp eop le
AnnualTerritory
Marketing Plan
CallReports
ExpenseReports
WorkPlan
SalesReport
SourcesofInformation
15 23
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15-23
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
15 24
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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.