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Chapter
16
Today’s Promotional
Techniques
Chapter
Contents
Brief Chapter Outline
16.3
Other Teaching Resources
16.4
What’s New in this Edition
16.7
Lecture Outline and Lecture Notes
16.8
PowerPoint Slide Show
16.46
Transparency Acetate Notes
16.50
Casing the Web
16.54
Developing a Promotional Strategy for Biltmore Estate
Answers to Video Case Questions
16.57
The Art Of Motoring – Mini USA
Lecture Links
16.58
Lecture Link 16-1: Subliminal Advertising
16.58
Lecture Link 16-2: Autowrap Mobile Advertising
16.58
Lecture Link 16-3: Dealing with Changes in Personal Selling
16.59
Lecture Link 16-4: Sampling Works Wonders
16.59
Lecture Link 16-5: Viral Marketing Used to Promote Yu-Gi-Oh!
16.60
16.1
Critical Thinking Exercises
16.61
Critical Thinking Exercise 16-1: Identifying Product Placement
16.61
Critical Thinking Exercise 16-2: Advertising Appeals
16.62
Supplemental Cases
16.2
16.64
Supplemental Case 16-1: Waking Up the Coffee Industry
16.64
Supplemental Case 16-2: The New Breed of Salesperson
16.67
UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Brief
Chapter Outline
CHAPTER 16
TODAY’S PROMOTIONAL TECHNIQUES
GETTING TO KNOW DAN WIEDEN OF WIEDEN AND KENNEDY
I.
PROMOTION AND THE PROMOTION MIX.
II.
ADVERTISING: PERSUASIVE COMMUNICATION.
III.
A.
The Growing Use of Infomercials.
B.
C.
Advertising and Promotion on the Internet.
Global Advertising.
PERSONAL SELLING: PROVIDING PERSONAL ATTENTION.
A.
B.
C.
Steps in the Selling Process.
1.
Prospect and Qualify.
2.
3.
Preapproach.
Approach.
4.
Make Presentation.
5.
Answer Questions.
6.
Close Sale.
7.
Follow Up.
Using Technology to Practice Consultative Selling.
The Business-to-Consumer (B2C) Sales Process.
IV.
PUBLIC RELATIONS: BUILDING RELATIONSHIPS.
A.
Publicity: The Talking Arm of PR.
V.
SALES PROMOTION: GETTING A GOOD DEAL.
VI.
VII.
A.
Sampling Is a Powerful Sales Promotion Tool.
B.
C.
Word of Mouth.
Viral Marketing and Other Word-of-Mouth Strategies.
D.
How New Technologies Are Affecting Promotion.
MANAGING THE PROMOTION MIX: PUTTING IT ALL TOGETHER.
A.
Promotional Strategies.
B.
Creating an Integrative Marketing Communication (IMC) System.
C.
Building Interactive Marketing Programs.
SUMMARY.
Chapter 16: Today’s Promotional Techniques
16.3
Other
Teaching Resources
PowerPoint Slides
See this PowerPoint slide show beginning on page 16.46.
PPT 16-1
Understanding Business Title
PPT 16-2
Chapter Title
PPT 16-3
Total Direct Advertising Expenditures
PPT 16-4
Advertising Today
PPT 16-5
Top Brand Advertisers
PPT 16-6
Century’s Top Ad Jingles
PPT 16-7
Favorite Budweiser Advertising Slogans
PPT 16-8
Do Blatantly Sexy Ads Turn You Off?
PPT 16-9
Total Direct Mail Expenditures
PPT 16-10 2002 Amount U.S. Spent On…
PPT 16-11 Top Online Advertising Industries
PPT 16-12 Steps in Personal Selling
PPT 16-13 Public Relations
PPT 16-14 Sales Promotion
PPT 16-15 Tips on Issuing Coupons
PPT 16-16 Factors That Affect the Promotion Mix
PPT 16-17 Components of Integrated Marketing
PPT 16-18 Objectives of Integrated Marketing
PPT 16-19 Building IMC
Transparency Acetates
Selected PowerPoints are also available as Transparency Acetates:
16.4
TA 16-1
Top Brand Advertisers
TA 16-2
Century’s Top Ad Jingles
TA 16-3
Favorite Budweiser Advertising Slogans
TA 16-4
Total Direct Mail Expenditures
TA 16-5
2002 Amount U.S. Spent on…
TA 16-6
Top Online Advertising Industries
TA 16-7
Tips on Issuing Coupons
TA 16-8
Factors That Affect the Promotion Mix
UNDERSTANDING BUSINESS: Instructor’s Resource Manual
TA 16-9
Components of Integrated Marketing
TA 16-810
Objectives of Integrated Marketing
PowerPoint Slides and Transparency Acetates are available on CD and on the Presentation CD-ROM. These resources are also referenced in the expanded lecture outline beginning on
page 16.46 of this chapter.
Video Case
Video Case: The Art Of Motoring – Mini USA
The Media Resource Guide contains a summary of the Video and suggested discussion
questions.
Additional Resources for Instructors:
Understanding Business Home Page – UB7E Online Learning Center at
http:/www.mhhe.com/ub7e contains chapter outlines, instructor’s bulletin board,
links to professional resources, a stock-market project, Internet exercises, sample syllabi,
and other instructor support tools. Also contains special e-commerce coverage.
Instructors’ Presentation CD-ROM – Contains an extensive collection of PowerPoint slides
that contain information from both within and outside the text, video clips, and every
available print supplement. This tool allows you to customize your lecture presentations.
PageOut – Templates allow you to quickly and easily create a professional-looking personalized
course Website.
Additional Resources for Students:
Student Assessment and Learning Guide – This Guide contains matching key term and
definition questions, write-in retention questions, write-in critical thinking questions, and
practice test of multiple choice and true/false questions.
Understanding Business Home Page – UB7E Online Learning Center at
http:/www.mhhe.com/ub7e contains a stock market project, links to professional resources, Internet exercises, glossary, career resources, crossword puzzles, and support
tools. Also contains special e-commerce coverage.
Business Mentor 2004 – The New Business Mentor 2004 (business planning CD) is available
with the text, and a manual is included with the software. This new manual includes exercises for students based on the modules in the software, as well as a semester-long project. Instructors are given teaching notes for these exercises/assignments on the Online
Learning Center. The New Business Mentor leads students through the sections of the
feasibility and business plans.
Concept Mastery Toolkit CD-ROM – Chapter practice quizzes in both concept and testing
modes (all questions include very detailed rationales for the correct and incorrect answers), English-Spanish, English-Chinese, and English-Russian glossaries, learning assessments from Making the Grade CD, and a brief stock-market project ‘manual’ to accompany the stock market project on the Online Learning Center
PowerWeb – Current articles from the most trusted news sources are linked to the appropriate
chapters in the text. Articles are updated daily. Questions are provided to test student
comprehension of the materials.
Chapter 16: Today’s Promotional Techniques
16.5
Business Week Online Access with the Business Week edition.
Audio CDs – Audio CDs contain all chapters of the text plus profile and boxes.
16.6
UNDERSTANDING BUSINESS: Instructor’s Resource Manual
What’s New in
This Edition
Additions to the 7th edition:

Getting to Know Dan Wieden of Wieden and Kennedy.

Subsection “The Business-to-Consumer (B2C) Sales Process.”

Figure 16.2 Steps in a Promotional Campaign.

Figure 16.6 Steps in the Business-to-Consumer (B2C) Selling Process.

Figure 16.8 Consumer Sales Promotion Techniques.

Dealing with Change: Product Placement Challenges Advertising.

Reaching Beyond Our Borders: Can There Be a Starbucks Inside a Starbucks?
Revisions to the 7th edition:
Statistical data and examples throughout the chapter were updated to reflect current information.
In addition:


Discussion of interactive promotions was moved to subsection “Advertising and Promotion
on the Internet.”
Section “Advertising: Persuasive Communication” was expanded with a discussion of
product placement.
Deletions from the 6th edition:

Profile of Tina Damron.

Boxes Reaching Beyond Our Borders, From the Pages of BusinessWeek, Making Ethical
Decisions.
Chapter 16: Today’s Promotional Techniques
16.7
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
PPT 16-1
Understanding Business Title
PPT 16-2
Chapter Title
PPT 16-3
Total Direct Advertising
Expenditures
Text Figure 16.1 This text figure shows the traditional marketing tools, includThe Traditional Promotion Mix ing advertising, personal selling, public relations, and sales
(Text page 490) promotion.
Text Figure 16.2 This text figure shows the six steps to follow in establishing a
Steps in a Promotional Campaign promotional campaign.
(Text page 490)
PPT 16-4
Advertising Today
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Text Figure 16.3 This text figure lists various categories of advertising.
Major Categories of Advertising
(Text page 491)
PPT 16-5 (TA 16-1)
Top Brand Advertisers
(See complete transparency acetate notes on page 16.50.)
Lecture Link 16-1 Marketers are beginning to use subliminal advertising—the
Subliminal Advertising attempt to use images and sounds that are just below the
threshold of consciousness—to influence purchases. (See the
complete lecture link on page 16.58 in this manual.)
PPT 16-6 (TA 16-2)
Century’s Top Ad Jingles
(See complete transparency acetate notes on page 16.50.)
PPT 16-7 (TA 16-3)
Favorite Budweiser Advertising
Slogans
(See complete transparency acetate notes on page 16.51.)
PPT 16-8
Do Blatantly Sexy Ads Turn You
Off?
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
PPT 16-9 (TA 16-4)
Total Direct Mail Expenditures
(See complete transparency acetate notes on page 16.51.)
Supplemental Case 16-1 This case explores the promotional techniques coffee distribuWaking up the Coffee Industry tors are using to entice younger people to drink coffee. (See
the complete case, discussion questions, and suggested answers beginning on page 16.64 of this manual.)
PPT 16-10 (TA 16-5)
2002 Amount U.S. Spent On…
(See complete transparency acetate notes on page 16.51.)
PPT 16-11 (TA 16-6)
Top Online Advertising Industries
(See complete transparency acetate notes on page 16.52.)
Text Figure 16.4 This text figure shows the importance of advertising in terms
Advertising Expenditure by Media of total expenditures and shows the percent spent using each
(in millions of dollars) media.
(Text page 492)
Text Figure 16.5 This text figure presents the advantages and disadvantages of
Advantages and Disadvantages of various advertising media to the advertiser.
Various Advertising Media
(Text page 493)
Critical Thinking Exercise 16-1 This exercise asks students to watch prime time television to
Identifying Product Placement identify product placements in television shows. (See complete exercise on page 16.61 of this manual.)
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Dealing With Product Placement Challenges Advertising
Change In product placement marketers pay to have their products
(Text page 494) featured on TV shows and in the movies.
Critical Thinking Exercise 16-2 This exercise explores the different advertising appeals that
Advertising Appeals marketers use in television advertising. (See complete exercise
on page 16.62 of this manual.)
Using Testimonials to Build Business
Spotlight on Small
Gathering testimonials makes the whole marketing process
Business
easier because potential customers can see what others are
(Text page 495)
saying about the product.
Lecture Link 16-2 Two companies are transforming the cars of willing commutAutowrap Mobile Advertising ers into roaming billboards. (See the complete lecture link on
page 16.58 of this manual.)
Can There Be a Starbucks Inside a Starbucks?
Reaching Beyond
While the domestic market for coffee outlets may be nearing
our Borders
saturation, there is still room for growth overseas, if the com(Text page 496)
panies learn how to adapt to the culture of each country.
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Now that there is a greater possibility of interactive communications between companies and potential customers, do you
Critical Thinking think the importance of traditional advertising will grow or
(Text page 497) decline? What will be the effect, if any, on the price we consumers must pay for TV programs, newspapers, and magazines? (These are questions from the text.)
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Lecture Link 16-3 To make the most of their salespeople, such as SAP’s Sudha
Dealing with Changes in Personal Shah, companies provide their representatives with the latest
Selling in high tech tools. (See the complete lecture link on page
16.59 of this manual.)
PPT 16-12
Steps in Personal Selling
Chapter 16: Today’s Promotional Techniques
16.19
16.20
UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Chapter 16: Today’s Promotional Techniques
16.21
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Supplemental Case 16-2 This case discusses how one salesperson used new technoloThe New Breed of Salesperson gies to change the approach to personal selling. (See the complete case, discussion questions, and suggested answers beginning on page 16.67 of this manual.)
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Text Figure 16.6 This text figure shows the steps in the B2C selling process.
Steps in the Business to Consumer
(B2C) Selling Process
(Text page 502)
Students can assess their progress by answering the following
questions:
 What are the four traditional elements of the promotion
mix?
Progress
Assessment 
(Text page 502)

What are the three most important advertising media in
order of dollars spent?
What are the seven steps in the B2B selling process?
 What is a consultative salesperson?
(These are questions from the text.)
PPT 16-13
Public Relations
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
What kinds of problems can emerge if a firm doesn’t communicate with environmentalists, the news media, and the
Critical Thinking
local community? In your area have you seen examples of
(Text page 503)
firms that aren’t responsive to the community? What have
been the consequences? (These are questions from the text.)
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Students can assess their progress by answering the following
questions:
Progress  What are the three steps involved in setting up a public
relations program?
Assessment
(Text page 504)  What are the advantages and disadvantages of publicity
versus advertising?
(These are questions from the text.)
PPT 16-14
Sales Promotion
Text Figure 16.7 This text figure lists some B2B sales promotion techniques.
Business-to-Business Sales
Promotion Techniques
(Text page 505)
Text Figure 16.8 This text figure lists some consumer sales promotion techConsumer Sales Promotion niques.
Techniques
(Text page 505)
PPT 16-15 (TA 16-7)
Tips on Issuing Coupons
(See complete transparency acetate notes on page 16.52.)
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Lecture Link 16-4 Kiehl’s, a small East Village store in New York City, prospers
Sampling Works Wonders by using sampling to entice customers. (See the complete lecture link on page 16.59 of this manual.)
Chapter 16: Today’s Promotional Techniques
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
Lecture Link 16-5 Word-of-mouth and viral advertising have been used to introViral Marketing Used to Promote duce Yu-Gi-Oh!, a comic book, into the U.S. market. (See the
Yu-Gi-Oh! complete lecture link on page 16.60 of this manual.)
Chapter 16: Today’s Promotional Techniques
16.37
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
PPT 16-16 (TA 16-8)
Factors That Affect the Promotion
Mix
(See complete transparency acetate notes on page 16.53.)
Chapter 16: Today’s Promotional Techniques
16.39
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
PPT 16-17 (TA 16-9)
Components of Integrated
Marketing
(See complete transparency acetate notes on page 16.53.)
Text Figure 16.9 This text figure shows how all elements in the marketing proIntegrated Marketing gram should be coordinated to create a unified image.
Communication
(Text page 509)
PPT 16-18 (TA 16-10)
Objectives of Integrated Marketing
(See complete transparency acetate notes on page 16.53.)
Chapter 16: Today’s Promotional Techniques
16.41
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
PPT 16-19
Building IMC
Chapter 16: Today’s Promotional Techniques
16.43
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UNDERSTANDING BUSINESS: Instructor’s Resource Manual
Lecture
Notes
How much of your buying behavior has moved from stores to
the Internet? If you don’t actually buy things on the Internet,
do you use it to compare goods and prices? Do you or your
Critical Thinking
friends take advantage of the low prices on used goods from
(Text page 510)
eBay? Do you see yourself turning to the Internet over time
for an increasing number of purchases? Why or why not?
(These are questions from the text.)
Students can assess their progress by answering the following
questions:
 What are the sales promotion techniques used to reach
consumers? What promotion techniques are used to reach
businesses?
Progress
Assessment 
(Text page 510) 
What is viral marketing?
Describe how to implement a push strategy and a pull
strategy.

What are the three steps used in setting up an interactive
marketing communication system?
(These are questions from the text.)
Chapter 16: Today’s Promotional Techniques
16.45
PowerPoint
Slide Show
The following images are available as a PowerPoint slide show on CD and on the Instructors’
Presentation CD-ROM.
PPT 16-1
Understanding Business Title
PPT 16-2
Chapter Title
PPT 16-3
Total Direct Advertising Expenditures
PPT 16-4
Advertising Today
16.46
UNDERSTANDING BUSINESS: Instructor’s Resource Manual
PPT 16-5
Top Brand Advertisers (also presented as
TA 16-1)
PPT 16-6
Century’s Top Ad Jingles(also presented as
TA 16-2)
PPT 16-7
Favorite Budweiser Advertising Slogans
(also presented as TA 16-3)
PPT 16-8
Do Blatantly Sexy Ads Turn You Off?
PPT 16-9
Total Direct Mail Expenditures (also presented as TA 16-4)
PPT 16-10
2002 Amount U.S. Spent On… (also presented as TA 16-5)
Chapter 16: Today’s Promotional Techniques
16.47
PPT 16-11
Top Online Advertising Industries (also presented as TA 16-6)
PPT 16-12
Steps in Personal Selling
PPT 16-13
Public Relations
PPT 16-14
Sales Promotion
PPT 16-15
Tips on Issuing Coupons (also presented as
TA 16-7)
PPT 16-16
Factors That Affect the Promotion Mix (also presented as TA 16-8)
16.48
UNDERSTANDING BUSINESS: Instructor’s Resource Manual
PPT 16-17
Components of Integrated Marketing (also
presented as TA 16-9)
PPT 16-18
Objectives of Integrated Marketing (also
presented as TA 16-10)
PPT 16-19
Building IMC
Chapter 16: Today’s Promotional Techniques
16.49
Transparency Acetate
Notes
TA 16-1
Top Brand Advertisers
TA 16-2
Century’s Top Ad
Jingles
16.50
1.
This acetate identifies the top advertisers of branded products in the
U.S.
2.
Share with the class some interesting facts about the companies listed
on this acetate:

McDonald’s develops, operates, franchises and services a
worldwide system of restaurants which prepare value-priced
foods.

Ray Kroc, founder of McDonald’s, mortgaged his home and
invested his life savings to develop his idea.

1st store was opened in Des Plaines, Illinois, in 1955. First days
receipts were $366.12.

In 1965, McDonald’s went public with the company’s first
stock offering on the stock exchange. A hundred shares of stock
costing $2,250 then would have split to a total of 74,360 shares
today, worth over $1.8 million in September of 2003.
3.
Verizon Wireless is a national provider of voice and data services.
They service over 33.3 million diverse voice and data customers and
represent America’s largest network.
4.
Home Depot is the world’s largest home improvement store and the
2nd largest retailer in the U.S.

Home Depot was founded in 1978 in Atlanta, Georgia and has
over 1500 stores across North America.

Home Depot stores select and stock over 35,000 different kinds
of items of building materials and lawn and garden products.

They operate in 50 U.S. states and in the District of Columbia,
eight Canadian provinces, and Mexico.
1.
This acetate represents some of the most recognized jingles in the
U.S. It will be interesting to see just what percent of the class recognizes any of the jingles.
2.
Ask students if they know what products these jingles represent? Jingles are very important to a companies marketing message. Companies want people to respond to their message, therefore these jingles
must tell an individual how it benefits them. Some major companies
have changed to new jingles to improve responsiveness: McDonald’s
“I’m luving-it” was just introduced worldwide to increase profits. The
U.S. Army is spending $150 million on a new jingle: “An Army of
one” to replace “Be all you can be.” Pepsi-Cola introduced a new jingle in the late 1990’s, “Twice as much fun for a nickel too.”
3.
Students should note that jingles will change to meet the marketing
needs of different cultures. Coke products are sold in over 200 coun-
UNDERSTANDING BUSINESS: Instructor’s Resource Manual
tries worldwide. This type of diversity requires Coca-Cola to tailor
their jingles to represent the needs of each country.
TA 16-3
Fav
TA 16-4
Total Direct Mail
Expenditures
TA 16-5
2002 Amount U.S.
Spent On…
1.
Students should be aware of the subject of this acetate as Budweiser
is one of the most familiar brand names in the U.S. It has undergone
many slogan changes over the history of the product. In addition to
the slogans, Budweiser uses certain trade characters to associate with
the brand (Budweiser frogs, Louie the Lizard, Spuds Mackenzie the
dog).
2.
See if the students can identify five additional slogans that are specifically identified with particular products. This may be an assignment
where the students will require outside help to complete.
3.
Anheuser-Busch Inc., the maker of Budweiser products, is the
world’s largest brewer with 14 breweries, 12 in the U.S. and two
overseas.
1.
This acetate illustrates how much money has been spent on direct advertising in the U.S.
2.
Direct advertising in the U.S. is big business. Ask the students why so
much money is spent on direct advertising. (In a very competitive
marketplace, companies use direct advertising to communicate the
value of their products and services against the competition.)
3.
Share with the students some interesting facts regarding the growth of
direct advertising as published by franchise.com:
1.
2.

Employment growth in direct advertising is expected to rise
4.7% a year until 2005.

Between 2002 – 2005, direct advertising is projected to grow
7.1%, while revenue growth is expected to rise 9.6%.

Students should be aware that advertising is a deductible expense as outlined by the Internal Revenue Service.
This acetate illustrates the amount of money companies spent on both
Internet advertising and outdoor advertising in 2002.
Outdoor advertising is one of the most cost-effective mediums to use
(television being the least cost-effective).

Outdoor advertising has grown 47% since 1991.

3.
Outdoor is a popular choice to marketers because messages
cannot be zapped, they appear 24 hours per day.

Since outdoor is a public medium, all messages require decent
and appropriate messages to all audiences.
Internet advertising has grown due to its target advertising potential
and the ability to research the large number of people that make web
hits on a particular site.
Chapter 16: Today’s Promotional Techniques
16.51
TA 16-6
Top Online
Advertising Industries
1.
This acetate identifies the top online advertisers in the U.S. The
growth of online advertising in the U.S. is expected to continue its
meteoric rise in the future.
2.
The rise of online advertising for the top four industries from 2001 to
2002 are listed below:
3.
TA 16-7
Tips on Issuing
Coupons

Retail goods and services grew 74% to $33.8 billion in 2002.

Financial services grew 59% to $14.4 billion in 2002.

Web media grew 38% to $12.1 billion during the same period.

Travel’s growth exceeded 304% to $5.4 billion in one year.
Interactive media has made an impact across many Fortune 500 companies. The Top Fortune 500 Online Advertisers in 2002 were:

Amazon.com, Inc.

The Estee Lauder companies

USA Interactive


SBC Communications
Barnes & Noble

Dell Computer Corp


Hewlett Packard Company
Bank One Corporation

AOL Time Warner

General Motors Corporation
1.
It’s difficult to imagine the numbers of coupons offered by companies
in the U.S. market. Estimates range as high as 1 trillion. What students are not aware of is that coupons are also a significant expense
to companies.
2.
This acetate offers tips to companies considering offering coupons as
a form of sales promotions. Students should be able to relate to the information provided in this acetate. Ask the students to comment on
each of the suggestions given.
3.
Share with the class some interesting facts regarding the use of coupons:

90% of all American adults clip and save coupons.

88% of all adults in the U.S. clip and save cents-off coupons.

88% of coupons users cited the Sunday newspaper as the best
place to find coupons.
The lowest cents-off coupon adults will clip and save is 25
cents.

16.52

Families with incomes lower than $40,000 per household are
more likely to clip and save coupons.

Online coupon growth has reached 27% of Internet users.
UNDERSTANDING BUSINESS: Instructor’s Resource Manual
TA 16-8
Factors That Affect
the Promotion Mix
TA 16-9
Components of
Integrated Marketing
TA 16-10
Objectives of
Integrated Marketing
1.
This acetate will help students get involved in the concept of the promotional mix. Make certain they do not confuse this with the marketing mix.
2.
It would be helpful to the class to work through the acetate step-bystep since the information supports many of the concepts discussed in
the marketing section. Ask the students to analyze each element for
improvement. These applications force the students to use critical
thinking skills and see how these factors affect the promotional process.
3.
This is also a good time to note the expense involved in promotion by
U.S. companies. A recent Promotion Trends Report indicated that
companies devoted $233.7 billion in 2002 to consumer promotional
spending. That is a 3.6 percent increase over 2001. More than 57% of
marketing dollars went to trade or consumer marketing.
1.
This acetate illustrates the multi-disciplinary aspects of product/service promotion today as exemplified by integrated marketing.
2.
Industry experts say “No Medium Can Do It All.” Geoff Ramsey,
CEO of eMarketer, a leading Internet and trend data company, estimates that the average consumer is exposed to 30,000 message impressions each day.
3.
In today’s environment, people are actively trying to avoid the bombardment of messages, a difficult problem for marketers. The solution
has to be an integration of online with other mediums. This point is
supported by some interesting statistics:

There are over 3.6 million active websites.

Marketers are expected to spend $20.5 billion by 2004.

Synergy exists between radio and Internet advertising as 43%
of Net users say they listen to the radio while on-line.
4.
The future of an integrated marketing program for any company is
likely to include the use of the Internet.
1.
This acetate provides the students information regarding the goals of
integrating the various marketing tools to reach the consumer.
2.
All objectives within an integrated marketing strategy should include
the following:

Significantly increase the number of people to experience the
message at nominal incremental cost.

Leverage the media’s ability to deliver an integrated marketing
message.


Deliver an entertaining segment that elicits emotional response.
Utilize all medium to effectively elicit a response to your promotion.

Demonstrate the importance of each and every person reached
by your message.
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Casing the
Web
(This case is also available online at http:/www.mhhe.com/ub7e.)
DEVELOPING A PROMOTIONAL STRATEGY FOR BILTMORE ESTATE
Travel and tourism is one of the top industries in the United States. Therefore, there are many
jobs available for students who can market service organizations. This case will help you think through
that process: Imaging that you are the marketing manager of a major tourist attraction, the Biltmore Estate. Part of your job is to manage the overall promotional effort and to be part of a marketing team that
develops advertising, public relations, personal selling, word of mouth, publicity, and sales promotion.
Here is what you are working with: Biltmore is the largest private home in the United States. It
was built in 1895 in Asheville, North Carolina, for George Vanderbilt. The estate includes the 250-room
Biltmore House, acres of gardens and surrounding grounds, a winery, and restaurants. The whole estate is
open to the public, and nearly a million people visit it each year If you would like to see picture of many
of the estate’s magnificent rooms and gardens, go to its website at www.biltmore.com. The website
also contains information about the many motels that advertise their proximity to this great tourist attraction.
One goal of the promotional program at the estate is to increase the number of visitors who come
annually. To do that, the estate maintains an internal database of customer names and searches external
databases for the names of potential visitors. The total visitor market can be divided into three categories:
passholders (who have one-year admission passes), general visitors (who come to visit for one day), and
prospects (people who have never visited but may be interested);. You are charged with developing separate promotional pieces for each of the market segments. Part of the overall plan should be to integrate all
the promotional efforts to form one strong positive image about the estate.
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THINKING IT OVER: DISCUSSION QUESTIONS FOR CASING THE WEB
1.
What could you do in cooperation with the other businesses in the area (e.g., motels, restaurants,
taxi services) to promote the estate through them?
2.
How would you promote to people who have never been to the estate before? How would that
promotional program differ from the one you would develop for passholders?
3.
Think about vacations that you have taken. What led you to do to those spots? How can you apply that knowledge to this case?
4.
How important is website development to this promotional effort? List the following promotional
tools by how effective they would be in this case: advertising (what media would you use?), personal selling, publicity, word of mouth, sales promotion.
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ANSWERS TO CASING THE WEB QUESTIONS
1.
What could you do in cooperation with the other businesses in the area (e.g., motels, restaurants,
taxi services) to promote the estate through them?
You could put brochures in the restaurants and motels and give taxi drivers an incentive (money)
to tell people about the Estate. At the Estate, you could distribute brochures about the various restaurants
and motels in a mutually beneficial exchange agreement. You might then be able to put signs in restaurant
windows and in motels.
2.
How would you promote to people who have never been to the estate before? How would that
promotional program differ from the one you would develop for passholders?
You would be more concerned about letting newcomers know what the estate looks like by sending them colorful brochures and maybe even a video. Passholders only need a schedule of upcoming attractions and maybe an incentive (cents off for signing up early) for coming on certain dates.
3.
Think about vacations that you have taken. What led you to do to those spots? How can you apply
that knowledge to this case?
This is a wide-open, but interesting subject for discussion in class. Why would students go to the
Estate? What else is in the region that would attract them?
4.
How important is website development to this promotional effort? List the following promotional
tools by how effective they would be in this case: advertising (what media would you use?), personal selling, publicity, word of mouth, sales promotion.
A Web site would be very important because you could show pictures of the Estate and maps and
times. Publicity in travel magazines would be very powerful as would word of mouth, which you could
get by sending brochures to people who have already been there and asking them to share them with
friends. Sales promotion is best for getting locals to come to a special event by offering them deals. Personal selling is best done at the Estate for return visits and for encouraging word of mouth.
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Answers to
Video Case
THE ART OF MOTORING – MINI USA
1.
After watching this video, how would you rate Mini’s job in promoting its product to the U.S.?
What do you think is the most effective part of the company’s promotion program?
There is no way the professor can answer this question, which is good. Student input is what is
demanded of case studies. This question is guaranteed to generate class discussion, but one must be patient to wait for those students who are less eager to be heard. This is a good time to call on such students
because they are bound to have some answer.
2.
As part of the target market for the Mini, how would you respond to the firm’s overall promotional effort? What else could Mini do that they are not doing now to get you as a buyer?
This too is a question designed to generate lively class discussion. Students have some interest in
the Mini, just because it is so unique. They should have some response to the promotion as well.
3.
Do you feel that Mini has done a good job of listening to customers and responding appropriately? Can you think of any auto companies that listen and respond better?
As you can see, this whole series of questions is designed to get the class INVOLVED. That is
what cases are for, and this one is especially designed for the student-aged population. I hope they enjoy it
as much as we did in making it and discussing it.
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Lecture
Links
LECTURE LINK 16-1
SUBLIMINAL ADVERTISING
There have been many charges against advertising over time, including the charge that advertising is too pervasive; that is, there are ads everywhere—on the sides of trucks, on billboards, on the back
of restroom doors, and so on. One of the more interesting charges is that companies use subliminal advertising to get us to buy things. Subliminal advertising is the attempt to use images and sounds that are just
below the threshold of consciousness to influence purchases. Theoretically, advertisers can thus influence
what you are thinking without you becoming aware of it. The fact is that there was an experiment using
such advertising many years ago. A promoter showed a “subliminal message” in a movie shown at a
drive-in movie. It said, “Buy popcorn.” More people bought popcorn during that movie than when the
subliminal message was not shown. The advertising industry responded immediately to the potential harm
of such advertising by banning it. Advertisers no longer try such advertising.
LECTURE LINK 16-2
AUTOWRAP MOBILE ADVERTISING
Two companies are transforming the cars of willing commuters into roaming billboards that hawk
everything from tacos to feminine hygiene products. The practice, known as “car wrapping,” has taken off
on the west coast. The leaders in the field are Autowraps of San Francisco and FreeCar Media of Los Angeles. The companies wrap cars from roof to rocker panel with digitally-printed adhesive vinyl wrap
that’s used on city buses. The wrap, which even covers the windows, turns cars into commercials—and
reaches a greater audience than billboards.
Autowraps pays participants up to $400 a month to have the vehicles dressed in ads. FreeCar also
pays motorists to wrap their cars, but in addition gives selected drivers use of a new wrapped car for two
years. Drivers pay for insurance and gas for the privilege of driving sandwich boards.
Despite critics’ displeasure, there is no shortage of potential salespeople. More than 100,000 drivers have applied for the car wraps on the firms’ websites. If an applicant lives or drives in a desirable
“target area,” the driver is chosen for a wrap. Advertisers pay from $1,000 to $1,500 monthly per vehicle
to the car wrap companies, which design the ads and cover the ads in slogans.
Autowraps and FreeCar require motorists to sign a contract promising to drive a certain amount
every month, generally 800 miles. Participants typically must park in a visible spot and wash the cars every two weeks. Autowraps also requires that participants must not have received a moving violation for the
past 12 months, and a drunken-driving or felony conviction eliminates a candidate altogether.
Drivers also don’t get to choose which products they advertise, which might mean hawking liquor
or cigarette companies. Motorists can decline an advertisement if they find the ad offensive.
The companies have wrapped more than 300 vehicles and hope to have more than 5,000 on the
road in the next year.
(Source: Scott Bowles, “Motorists finding logos a gas,” USA Today, September 15, 2000, pg. A3.)
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LECTURE LINK 16-3
DEALING WITH CHANGES IN PERSONAL SELLING
Sudha Shah is the daughter of a doctor. She is the oldest of five children and grew up in a rural
village with no electricity in Nepal. Shah learned English in a Catholic boarding school in Katmandu. Despite her parent’s wishes, Shah applied to go to colleges in the United States and ended up with a full
scholarship at Mills College in Oakland, California. She majored in business, economics, and communications. People believed that Shah was a “natural salesperson,” and her first sales job was with Nady Systems, a firm that makes wireless headphones. From there she went to several other companies and ended
up at Oracle selling database software. In 1998 she left Oracle to go to work for SAP, a German business
software company. In a recent year, she made more money than all but one of her 300 fellow salespeople.
She won’t say how much her commissions came to, but the estimate is somewhere around $800,000.
Like most software companies, SAP enjoyed the tremendous growth that occurred at the end of
the 1990s and early 2000s. But all good things must come to an end, and SAP also felt the tremendous
drop in sales that occurred when the stock market bubble burst. So, what happened to Shah? Well, she’s
still out there working 70 hours a week pitching corporate software to high-tech clients. She works out of
SAP’s Silicon Valley office in Foster City, California. She makes 30 to 70 calls a day on her cell phone,
gathering tips and keeping in touch with her clients. She often gives up vacation time to be with a client
who called. Other Silicon Valley firms could use such dedicated salespeople.
SAP executives, like most executives, would argue that salespeople like Sudha Shah are what
keep the company in business. When hard times hit, as they have recently, a company could easily go
bankrupt from a lack of business. There are more than 51 million square feet of commercial real estate
available in Silicon Valley as a result of the decline in sales by the firms that were located there. But hardworking salespeople keep cranking out deals and keep some companies afloat in the hardest of times. Because salespeople are so valuable, companies give them generous commissions, but those commissions
only come with dedication and hard work.
To make the most of salespeople like Shah, companies provide their representatives with the latest in high-tech tools like laptop computers, cell phones, personal digital assistants (PDAs), and more.
This is called sales force automation, and it makes the salesperson’s job much easier. Each salesperson
has access to company databases that list possible clients, new products, prices, and other valuable information. These are the tools that make it easier to adapt to rapid changes in the marketplace.
(Sources: Melanie Warner, “Blind Optimism, Thick Skin, and a Cell Phone,” Fortune, August 13, 2001,
pp. 134-140; “The Book of ROI,” an ad in Fortune, April 29, 2002, pp. 105ff; and Adam Lashinsky, “For
Lease: One-Third of the Valley,” Fortune, October 14, 2002, pp. 60-64.)
LECTURE LINK 16-4
SAMPLING WORKS WONDERS
Kiehl’s is a small company that makes and sells hair and skin care products for women and men.
Its packaging is dull and it does no advertising. So how does the company prosper? Sampling. People
come from all over the world to visit Kiehl’s East Village store in New York City. The company gives
away $1.5 million annually in various samples and gift boxes. Store clerks have quotas on how many
samples they pass out each day. If you request one, they are likely to give you many more to pass out to
your friends. After all, if you have a great product, people will see that for themselves once they have
tried it. Have you ever purchased a product because you sampled it once?
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LECTURE LINK 16-5
VIRAL MARKETING USED TO PROMOTE YU-GI-OH!
Yu-Gi-Oh! is a comic book that is very popular in Japan. The whole concept has been brought to
the Untied States as a TV show and card game. Alfred Kahn of 4Kids Entertainment held off major promotion of action figures or cards until Yu-Gi-Oh! had been on TV for 6 months. 4Kids then had a viral
marketing campaign that sent Yu-Gi-Oh! news releases to kid Webzines, shipped out a million Yu-GiOh! videotapes to the target audience, and bought time on other networks to promote the show.
Word of mouth spread rapidly among the 6-to-11-year-old boys that the promoters wished to
reach. The worldwide potential in sales is expected to be in the $3 to $4 billion range.
(Source: Alfred Kahn, “Anime Star Has Winning Hand,” Advertising Age, March 24, 2003, p. S6.)
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Critical
Thinking Exercises
Name: ___________________________
Date: ___________________________
CRITICAL THINKING EXERCISE 16-1
IDENTIFYING PRODUCT PLACEMENT
Your assignment is to watch prime time television. Not a bad assignment, right? Watch at least
two hours of prime time programming. Try to include one drama, one comedy, and one reality program.
Watch closely and try to identify brand name products that are featured. Record the name of the program
and the television channel. Then analyze the effect of the product placement and whether the placement is
positive or negative.
Program Name
Network
Products
Featured
Is the placement
effect positive or
negative? Why?
Drama
Comedy
Reality
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Name: ___________________________
Date: ___________________________
CRITICAL THINKING EXERCISE 16-2
ADVERTISING APPEALS
Advertising is not a collection of homogeneous commercials. Each company and even different
brands within the company use different advertising appeals. Humor works best for some commercials;
honesty for others.
Watch television for several days and identify commercials that use the following appeals. Then
decide what TV commercial shown in the last year do you remember best, and which commercial irritated
you the most.
1.
Identify television commercials that use the following appeals:
a.
HONESTY:
b.
FEAR:
c.
EMOTION:
d.
SEX:
e.
HUMOR:
f.
IRRITATION:
g.
COST-COMPARISON:
2.
What TV commercial in the last year do you remember best? Why do you remember it?
3.
What is the most obnoxious or irritating or disgusting TV advertisement you have seen recently?
Why do you remember it?
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ANSWERS TO CRITICAL THINKING EXERCISE 16-2
1.
Identify television commercials that use the following appeals: honesty, fear, emotion, sex, humor, irritation, and cost-comparison.
Honesty. Ads featuring children are perceived by the public as more honest than those featuring
adults. Children project an innocent, honest image. To an extent, celebrity testimonials try to use honesty
as an appeal, but may not work.
Fear. Fear is a powerful advertising hook. Life insurance companies have used it for decades to
sell their product. Products as varied as smoke detectors, mouth wash, deodorant, and insect sprays use
fear to develop sales.
Emotion. One of the pioneers in using emotional appeals to sell products is Hallmark Cards. For
years wives have been shown presenting the perfect card to doting husbands and grandmothers crying
over a cherished Christmas card.
Sex. The old Madison Avenue adage “Sex sells” still is true. Marketers of perfume use little else.
Automobiles are shown driven by seductive women or well-dressed, elegant men. Cosmetics makers and
perfume companies toot the advantages to one’s social life of their brand of eye shadow or cologne.
Humor. Used judicially humor can be very effective. Each year the new Bud Lite advertisement,
unveiled during the Super Bowl, is anticipated almost as much as the game itself.
Irritation. These are the commercials we as consumers generally hate. They irritate us with repetition or stupidity, but we remember them. Charmin bathroom tissue scored big with its “Mr. Whipple”
commercials a decade ago. One survey showed that more elementary school kids could identify Mr.
Whipple than could identify the president of the U.S.
Cost-comparison. Cost comparison commercials appeal to the logical and rational side of us.
Just listen to the ads for long-distance telephone service. There are infinite combinations of 10-10 phone
numbers and costs per minute.
2.
What TV commercial in the last year do you remember best? Why do you remember it?
This will change with the whims of Madison Avenue.
3.
What is the most obnoxious or irritating or disgusting TV advertisement you have seen recently?
Why do you remember it?
This, also, will vary. There are some truly disgusting advertisements on the air at any given time.
Feminine hygiene products, adult diapers, and local furniture companies and automobile dealers usually
top the list. Late night ads for dial-a-porn, psychic hotlines, and herbal performance enhancers deserve a
category all their own.
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Supplemental
Cases
SUPPLEMENTAL CASE 16-1
WAKING UP THE COFFEE INDUSTRY
About 25 years ago, the number one drink in America was coffee. The trend was not good for the
coffee industry, however. From the 1960s to the end of the 1980s, the sale of coffee declined. By the end
of the 1980s, soft drinks had become the number one drink in the United States.
The history of coffee sales is revealing. The original colonists were mostly tea drinkers, bringing
the habit with them from England. There were some coffee drinkers in the Dutch colony called New Amsterdam. In 1773, the colonists dumped hundreds of chests of tea into Boston harbor because of taxes, and
America became a coffee-drinking nation.
By 1962, coffee sales were up to $1 billion a year, and three-fourths of the population drank an
average of over three cups a day. The market looked so good at that time that Procter & Gamble bought
Folger in 1963. From 1963 on, however, coffee sales have declined.
What happened in the 1960s to change the market? A major factor was the battle between Pepsi
and Coke for the teenage drinker. Pepsi developed the theme of the Pepsi Generation. Coke responded
with themes directed toward young people as well. Coffee ads, meanwhile, were directed toward the over35 crowd. The spokespeople for coffee were middle-aged women, such as Mrs. Olsen, who promoted
Folgers Coffee. Meanwhile, the Pepsi generation grew up and took their preference for soft drinks with
them.
More recently, coffee producers have been trying to woo back younger drinkers. Coffee companies are promoting frothy, flavored cappuccino-style instant coffee. Another campaign is aimed at the
new generation of college students. The Coffee Development Group has 50 “coffee houses” on college
campuses, providing a coffee grinder, a brewer and a cappuccino machine, among other supplies. The
idea is to get students back to drinking coffee. Recent studies have found that students are drinking soft
drinks for breakfast. Coffee makers want to change that trend back to coffee for breakfast.
Meanwhile, coffee shops such as Starbucks are recognizing a resurgence. They are cutting into
the business of companies such as Dunkin’ Donuts that have a much smaller selection. One problem is
that the price of specialty coffees has increased dramatically, partially because of the huge demand. This
has cut into the profits of coffee shops. Meanwhile, the sales of canned coffee continues to decline. Now
the consumers have had a taste of fresh-brewed coffee, which is what they prefer, regardless of the cost.
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DISCUSSION QUESTIONS FOR SUPPLEMENTAL CASE 16-1:
1.
What would you recommend to coffee producers to win the college market back to coffee?
2.
Would you develop different strategies for regular versus decaffeinated coffee? Why or why not?
Which would you emphasize for college students today, or would you try to sell them both?
3.
What kind of marketing communication system might you establish to keep in touch with students and other young coffee drinkers?
4.
You have talked with many college students and heard what they say about coffee versus soft
drinks. What has your marketing intelligence system told you? What recommendation would you
make to coffee producers based on that information? Would a focus group help to confirm those
impressions?
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ANSWERS TO DISCUSSION QUESTIONS FOR SUPPLEMENTAL CASE 16-1:
1.
What would you recommend to coffee producers to win the college market to coffee?
There is now coffee in a bottle that is cold. Will that be a competitor to Coke and Pepsi? What do
students have to say about this question?
2.
Would you develop different strategies for regular versus decaffeinated coffee? Why or why not?
Which would you emphasize for college students today or would you try to sell them both?
Students are the experts here, so let them be the leaders of this discussion. Personally, I would
promote coffee with caffeine because students like to use coffee and colas as stimulants to keep them
awake during class and when they study. Coffee in a bottle may become a big hit with the right promotion. I would emphasize the wake-up feature along with good taste. “Tastes great—Keeps you awake.”
3.
What kind of marketing research might you conduct before starting any campaign?
I would conduct research at different schools to see if student tastes vary in different parts of the
country. Do some students prefer milk and sugar? Do some prefer decaf? This is one time when listening
is critical to find out what students want before telling them you have it.
4.
You have talked with many college students and heard what they say about coffee versus soft
drinks. What has your marketing intelligence system told you? What recommendation would you
make to coffee producers based on that information? Would a focus group help to confirm those
impressions?
Why not conduct a focus group from class members to show the class what one looks like. Just
choose 7 or 8 students and bring them to the front. Have them sit around and discuss coffee. That is what
a focus group looks like. See what ideas emerge from the focus group and discuss them.
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SUPPLEMENTAL CASE 16-2
THE NEW BREED OF SALESPERSON
Tina Damron’s job as a sales representative for Coordinated Resources has changed dramatically
since she started working for the Jan Jose, California, office furniture business. Just a couple of years ago,
Damron had very little to do with computers or high-technology in general. She was a traditional salesperson; that is, one who relied more on personality and service than on high-tech tools. For example, she
would write orders using three sheets of carbon paper; if she made a mistake, she would have to recopy
the whole thing.
Today, Coordinated Resources’ high-tech tools help make Damron a better salesperson. Using
her laptop computer, she can make dramatic three-dimensional presentations of desks, chairs, and cubicles. She can also chat with other salespeople on the computer, obtain up-to-date information on furniture
(e.g., the latest models and prices), and send orders. On one call, she knew that the customer was looking
at a competitor’s products, so she went on the Internet and found information about those products. She
learned, for example, that you couldn’t plug anything into the walls of the competitors’ cubicles. That
became a major selling point for Coordinated Resources’ product. The website was provided by one of
Coordinated’s suppliers.
Damron also has access to a website called UpShot.com, which tracks new customer leads. When
salespeople find leads, they put all the information into UpShot where all the other salespeople can access
it. The salesperson who previously had Damron’s job left all kinds of information in UpShot. For example, he wrote that one customer didn’t like to joke around. Damron was able to use that information on all
her calls to that account. Before UpShot, Damron made all of her notes in a folder, but folders can get lost
and are not always easy to share with others. Now all the information is available online, easily accessible
to any colleagues who may need it.
Damron’s customers place orders online and, as a result, receive faster delivery compared to
those who place orders in person. Whereas an order used to take five weeks to be delivered, it can now be
delivered within five days. What pleases Damron most about working online is that she can do more of
her work at home. She’s a single mother, and flexibility is important to her.
Damron is just one of thousands of salespeople whose jobs are changing because of the Internet.
Buyers can now learn about product benefits online, so the salesperson’s role is changing to one of an inhouse consultant, helping customers solve problems. Although many questions can be handled online,
there is still nothing like the personal attention and help a trained salesperson can provide.
Changes in technology have had a dramatic effect on all areas of promotion, not just selling. Advertising, for example, is changing because there are so many channels for a consumer to watch that advertising on, any one of them simply is not effective as it was when there were just a few. Furthermore,
advertising on the Internet is very different from traditional advertising. Consumers can now get coupons
over the Internet, and companies are completely rethinking the whole promotional process.
(Sources: Andrea Peterson, “Making the Sale,” The Wall Street Journal, November 15, 1999, p. R16;
Philip B. Clark and Sean Callahan, “Sales Staffs: Adapt or Die,” BtoB, April 10, 2000, pp. B1, B8, B55;
and Rekha Balu, “Life of a (Digital) Salesman,” Fast Company, May 2000, pp. 377-78,)
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DISCUSSION QUESTIONS FOR SUPPLEMENTAL CASE 16-2:
1.
What have you learned from this case about the changing role of the salesperson? What was the
biggest influence on this change?
2.
What changes might new technologies like TiVo have on TV advertising?
3.
Has the role of the salesperson changed dramatically or is it just different now that the salesperson has so many technological tools to help?
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ANSWERS TO DISCUSSION QUESTIONS FOR SUPPLEMENTAL CASE 16-2:
1.
What have you learned from this case about the changing role of the salesperson? What was the
biggest influence on this change?
Sales has changed in that sales force automation (SFA) has made the job easier and more complex both at the same time. A salesperson now has much more information at his or her command, but
more expertise is expected from them as a result. The Internet and SFA will continue to have a major influence on the role of the salesperson. He or she is now more of a consultant. The information they provided in the past in now ready in a cheaper, faster, 24/7 way on the Internet.
2.
What changes might new technologies like TiVo have on TV advertising?
TiVo makes it possible to record your favorite TV shows and watch them later without the commercials. Those advertisers who relied on TV exposure for sales are worried. What if people stopped
watching commercials on TV? How would advertisers reach large audiences without TV advertising? The
answer is to use radio, billboards, and other media. But none of them have the power of TV. Students may
enjoy looking at the consequences and possible alternatives.
3.
Has the role of the salesperson changed dramatically or is it just different now that the salesperson has so many technological tools to help?
The role of the salesperson has not changed that dramatically. It’s just that he or she has so much
more information available now. Sharing that information with potential customers in an efficient way is
critical. The salesperson must be able to present information faster, easier, and more effectively than
could be done online or by a kiosk.
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