15-1

Chapter 9
Advertising, Sales
Promotion
and Public Relations

© Copyright 1999 Prentice Hall

What is Advertising? 15-2

• Any form of nonpersonal presentation

and promotion of ideas, goods, or
services by an identified sponsor.
• U.S. advertisers spend in excess of $175
billion each year.
• Advertising is used by:
– Business firms,
–Nonprofit organizations,
–Professionals,
–Social Agencies.

© Copyright 1999 Prentice Hall

Major Decisions in Advertising 15-3

Objectives Setting

Budget Decisions

Message Decisions Media Decisions

Campaign Evaluation

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Setting Objectives 15-4

Advertising Objectives
• Specific Communication Task
• Accomplished with a Specific Target Audience
• During a Specific Period of Time

Informative Advertising Persuasive Advertising

Build Primary Demand Build Selective Demand

Comparison Advertising Reminder Advertising

Compares One Brand to Keeps Consumers Thinking
Another About a Product.

© Copyright 1999 Prentice Hall

Setting the Advertising Budget 15-5

Advertising Budget Methods

Affordable, Percentage of Sales, Competitive-Parity and
Objective-and-Task
Product Stage in the Product
Differentiation Life Cycle

Factors in
Advertising
Setting the
Advertising Market
Frequency Share
Budget

Competition
and Clutter

© Copyright 1999 Prentice Hall

Click to add Strategy
Advertising title 15-6

Creating Advertising Messages

Plan a Message Strategy

General Message to Be Communicated to Customers

Develop a Message
Focus on
Customer Benefits Creative Concept
“Big Idea”
Visualization or Phrase
Advertising Appeals
Combination of Both
Meaningful
Believable
Distinctive

© Copyright 1999 Prentice Hall

Advertising Strategy 15-7

Selecting Advertising Media

Step 1. Decide on Reach, Frequency,

and Impact

Step 2. Choosing Among Major Media Types

Media Habits of Target Consumers
Nature of the Product
Type of Message
Cost

Step 3. Selecting Specific Media Vehicles

Specific 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 Timing

Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing

© Copyright 1999 Prentice Hall

Advertising Evaluation 15-8

Advertising Program Evaluation

Communication Effects Sales Effects

Is the Ad Communicating Well? Is the Ad Increasing Sales?

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Ways to Handle Advertising 15-9

Sales Departments in Advertising Departments

Small Companies in Larger Companies

Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs.

© Copyright 1999 Prentice Hall

International Advertising Decisions 15-10

Adaptation of
Global Advertising

Advertising Media Costs

& Availability

Regulation of
Advertising Practices

© Copyright 1999 Prentice Hall

What is Sales Promotion? 15-11

• Mass communication technique that

offers short-term incentives to encourage
purchase or sales of a product or service.

• Rapid growth in the industry has been

achieved because:
–Product managers are facing more pressure
to increase their current sales,
–Companies face more competition,
–Advertising efficiency has declined,
–Consumers have become more deal
oriented.
© Copyright 1999 Prentice Hall
Consumer - Promotion Tools 15-12

Short-Term Incentives to Encourage Purchase

or Sales of a Product or Service.

Consumer-Promotion Consumer-Promotion
Objectives Tools
Entice Consumers to Advertising
Samples
Try a New Product Specialties
Lure Customers Away Coupons Patronage
Patronage
From Competitors’ Products
Rewards
Rewards
Get Consumers to “Load Up’ Cash Refunds
on a Mature Product Contests
Hold & Reward Loyal Price Packs
Customers Sweepstakes
Consumer Relationship Premiums Games
Building
Point-of-Purchase
Displays

© Copyright 1999 Prentice Hall

Trade - Promotion Tools 15-13

Short-Term Incentives That are Directed to

Retailers and Wholesalers.

Trade-Promotion Trade-Promotion
Objectives Tools
Persuade Retailers or
Wholesalers to Carry a Brand Price-Offs Premiums
Give a Brand Shelf Space Allowances Patronage
Displays
Rewards
Promote a Brand in Buy-Back
Advertising Discounts
Guarantees
Push a Brand to Consumers Push Money
Free Goods
Specialty
Contests Advertising
Items

© Copyright 1999 Prentice Hall

What is Public Relations? 15-14

• 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.
• Major functions are:
– Press Relations or Press Agentry
– Product Publicity
– Public Affairs
– Lobbying
– Investor Relations
–Development
© Copyright 1999 Prentice Hall
Major Public Relations Tools 15-15

Web Site
Public
Service News
Activities

Corporate
Identity
Materials Speeches

Audiovisual Special
Materials Events
Written
Materials

© Copyright 1999 Prentice Hall

 15-16

Personal Selling and

Sales Management

© Copyright 1999 Prentice Hall

The Nature of Personal Selling 15-17

• Involves an individual acting for a company by

performing one or more of the following activities:
– Prospecting,
– Communicating,
– Servicing,
– Information Gathering.

• The term salesperson covers a wide spectrum of

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

© Copyright 1999 Prentice Hall

The Role of the Sales Force 15-18

• 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 link

between a company and its customers since
they:
– represent the company to customers, and
– represent customers to the company.
© Copyright 1999 Prentice Hall
 15-19
Managing the Salesforce

Designing Salesforce Strategy and Structure

Recruiting and Selecting Salespeople

Training Salespeople

Compensating Salespeople

Supervising Salespeople

Evaluating Salespeople

© Copyright 1999 Prentice Hall

 15-20
Compensating Salespeople
Sales Force Compensation Plans Can Both Motivate
Salespeople and Direct Their Activities.
Salary

Benefits Components
of
Compensation
Bonus

Commission

© Copyright 1999 Prentice Hall

How Salespeople Spend Their Time 15-21

Administrative
Service Calls Tasks
12% 17%
Companies
Telephone Look For Ways
Selling to Increase the
21%
Face-to-Face
Amount of
Selling Time
30%
Salespeople
Waiting/
Traveling Spend Selling.
20%

© Copyright 1999 Prentice Hall

Evaluating Salespeople 15-22

Expense Sales
Reports Report

Sources
of
Call Information Work
Reports Plan

Annual
Territory
Marketing Plan
© Copyright 1999 Prentice Hall
Steps in the Selling Process 15-23

Identifying and Screening For

Step 1. Prospecting and Qualifying Qualified Potential Customers.

Learning As Much As Possible

Step 2. Preapproach About a Prospective Customer
Before Making a Sales Call.

Step 3. Approach Knowing How to Meet the

Buyer to Get the Relationship
Off to a Good Start.

Step 4. Presentation/ Demonstration Telling the Product “Story” to

the Buyer, and Showing the
Product Benefits.

© Copyright 1999 Prentice Hall

Steps in the Selling Process 15-24

Seeking Out, Clarifying, and

Step 5. Handling Objections Overcoming Customer
Objections to Buying.

Step 6. Closing Asking the Customer for the

Order.

Step 7. Follow-Up Following Up After the Sale to

Ensure Customer Satisfaction
and Repeat Business.

© Copyright 1999 Prentice Hall

Relationship Marketing 15-25

• Process of creating, maintaining,

and enhancing strong, value-laden
relationships with customers and
other stakeholders.

• Based on the idea that important

accounts need focused and
continuous attention.

© Copyright 1999 Prentice Hall