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MT 219 Marketing
Unit Seven
Advertising, Public Relations,
Personal Selling and Sales
Promotion
Dr. Bea Bourne
Note: This seminar will be
recorded by the instructor.
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Review of Unit 6
• In Unit 6, we looked at the way producers of goods get their
products into the hands of consumers through distribution channels
and by developing a sound supply chain management system. We
also looked at the different types of intermediaries in the distribution
process, particularly with regard to wholesalers and retailers
Reading Assignment
Chapter 12
• “Communicating Customer Value: Advertising and Public Relations,”
examines the first two components of the promotional mix in more detail.
• Just as we have the marketing mix, there is also a promotional mix,
comprised of advertising, public relations, personal selling, sales promotion
and direct marketing.
Chapter 13
• “Communicating Customer Value: Personal Selling and Sales Promotion,”
continues our consideration of the promotional mix, which will conclude in
next week’s reading.
• Personal selling is one of the most effective ways of promoting a firm’s
products, but it is also the most expensive way to promote a product.
Our Topics for This Week
• In this unit, we will look at the necessity of having an
integrated marketing communications (IMC) strategy in
promoting products.
• We are also going to start an examination of each of the
five elements of the promotion mix and provide insight
into how each of these elements can help provide
consumers with the information they need to make
purchase decisions.
• Questions
The Promotion Mix
Four elements of the promotional mix:
Advertising
Public Relations
Personal Selling
Sales Promotion
The fifth- Direct Marketing will be explored in Unit 8.
Integrated Marketing Communications
• Assuring consistent messages through the coordination
of promotional efforts
• The objective is to generate maximum informational and
persuasive impact
• Generally, all five of the promotional mix are used to get
maximum effect- advertising, personal selling, sales
promotion, direct marketing and publicity
Promotion mix strategies- Push vs. Pull
• Push - budgets are directed to
resellers, often through
personal selling
• Pull – budgets are directed to
the consumer, often through
advertising and promotion
Advertising
• Paid non-personal communication through mass media
• Advantages
- Cost efficient on a per person reached basis
- Highly flexible, and allows for repetition
- Adds value
- Lends legitimacy
• Disadvantages
- Out of pocket outlay is high
- Hard to measure sales effect unless source coding is used
- Feedback usually slow
Types of Advertising
•
•
•
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Institutional
Advocacy
Product
Pioneer
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•
•
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Competitive
Comparative
Reminder
Reinforcement
Major Advertising Objectives
• Inform
• Persuade
• Remind
• Good way to remember this is R.I.P.
Budget Decisions
• Affordable
• Percent of sales
• Competitive parity
• Objective and task
Developing Advertising Strategy
• Two major elements- Creating advertising messages
and media selection
• Key issues in developing advertising strategy
- Breaking through the clutter
- The need to make advertisements that break through clutter
Message Strategy
• Message should be
-Relevant and important
-Believable
-Executable
-Able to convey competitive advantage
-Memorable
-Undertake some effect to move consumer towards
some action
-Consistent with other parts of the promotional mix
Media Decisions
• Sets reach, frequency and impact
objectives
• Select major media types
• Specific methods- media vehicles and
schedule
• Set media scheduling patterns
What are the advantages and
disadvantages of TV advertising?
Television
Advantages
Large audiences
Low cost per person
reached
Sight and sound
Visible
Confers legitimacy
Disadvantages
High out of pocket cost
Perishable
Waste coverage
What are the advantages and
disadvantages of Internet advertising?
The Internet
Advantages
Extremely selective
Interactive
Low cost
Immediate feedback
Disadvantages
Viewers controls viewing
Fairly low impact on viewer
What are the advantages and
disadvantages of Newspaper
advertising?
Newspapers
Advantages
Reaches large audiences
Purchased to be read
Short lead time
Frequent publication
Believable
Good for comparison
Can cover local areas
Disadvantages
Not selective socioeconomic ally
Short life
Poor reproduction
Cluttered
Not as popular as they once
were
What are the advantages and
disadvantages of Direct Mail
advertising?
Direct Mail
Advantages
Very selective
Flexible and selectable
segments
Can be personalized
Can arrive in solo package
Disadvantages
Considered as junk mail
High cost per exposure
What are the advantages and
disadvantages of Magazine
advertising?
Magazines
Advantages
Selectivity
Good reproduction
Long life
Prestigious
Full color ads
Disadvantages
High absolute dollar cost
Long lead time
What are the advantages and
disadvantages of Radio advertising?
Radio
Advantages
Inexpensive
Flexible
Targeted
Disadvantages
Audio only
Background medium
Short life
Outdoor Advertising
Advantages
Flexible
Can provide heavy
exposure
Low cost per exposure
Good placement selectivity
Disadvantages
No good audience
selectivity
Creative limitations
People may ignore
Measuring Advertising Effectiveness
A critical part of every advertising campaign.
Provides feedback on whether the campaign objectives
were fulfilled.
The effectiveness is difficult to measure, except for direct
mail
Public Relations
Communication efforts used to create and maintain favorable relationships
between an organization and its stakeholders. Also called publicity.
Individual brands generally have publicity/public relations done at the
corporate level.
Some people call this “free advertising,” but is can be expensive and must be
done well to be effective.
Examples?
Personal Selling
• Paid Personal Communication
• Advantages
- Provides significant impact on customers due to personal contact
- Interactive- Allows for immediate impact and adjustment
• Disadvantages
- Costly- most costly part of promotion based on people reached
• If it is so costly, why is it done?
Steps in Managing the Sales Force
• Designing sales force strategy and structure
- Structure-Territory, Product or Customer-based
- Size of sales force
- Outside or inside sales force
- Individual or team selling
• Recruiting and selecting salespeople
• Training salespeople
Steps in Managing the Sales Force- cont.
• Compensating salespeople
- Commission
- Salary
- Combination
• Supervising and motivating salespeople
• Evaluating salespeople’s performance
The Personal Selling Process
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•
•
•
•
•
•
Prospecting
Pre-approach- Research is important
Approach
Presentation
Handling objections
Closing the Sale
Follow-up- To help ensure subsequent purchases
Sales Promotion
• Direct incentive to buy
• Growing rapidly due to its effectiveness
• May be directed at salespeople, resellers, and
consumers- anywhere in the distribution chain
• Examples include free samples, coupons, contests,
premiums, rebates, buy one get one frees, frequent
buyer programs, etc.
Questions
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Week 7 Assignments
In the Unit 2 discussion, you selected a brand to research throughout the remainder
of the course. Then in Units 5 and 6 you began your research and writing to detail
your brand’s product, price, and place. Now based on feedback from your instructor
you will correct and hone your Unit 5 and 6 submissions. Then here in Unit 7, you
will continue to develop your final project (due in Unit 8).
Using your Final Project document you started in Unit 5 and 6, insert your Unit 7
portion of your assignment following the instructions below:
This unit’s assignment:
Based on the brand that you chose in the Unit 2 discussion, you will develop the
promotion portion of your final project in the assignment for this unit. Using the
references you have found to learn about your chosen brand, write a one page APA
style essay providing the following information:
Continued
• Promotional Mix
• Make sure to briefly include all of the following in this section: Advertising,
Public Relations, Personal Selling, and Sales Promotion. Discuss what is
needed for an IMC (Integrated Marketing Communications) plan. Analyze
advertising plans in terms of message or execution.
• Based on your examination, does your brand do a good, adequate, or poor
job of serving the needs of its customers? Do your research and remember
to analyze each element of the promotion mix in terms of how it meets the
needs of the target consumers. For example, examine if the promotions used
are effective or not. Does your brand use a pull or push strategy and why?
Identify and discuss the types of promotions used. Throughout the paper,
you need to demonstrate practical application of the concepts learned
throughout the course.
• After you have checked your assignment for grammar and spelling, submit
your Unit 7 assignment as a continuation of your Final Project document you
started in Unit 5. Make sure you specify Promotion as a subheading in the
document, alerting your instructor to your additional work for a grade.
Week 7 Unit 6 and 7 Review
• Your ungraded Review has 20 multiple choice questions and
covers the e-text readings for Units 6 and 7 (e-text chapters 10,
11, 12 and 13). This Review is ungraded.
• The following applies to this Review:
• This Review is only available until the end of this unit (Unit 7).
• This Review is not timed.
• You can enter and exit the Review as many times as you like
before the Unit is finished. Be sure to save your work before you
exit the Review.
• When you are ready, you may submit your final Review
responses.
Thank you
• I appreciate your time and attention during our 1 hour
seminar today. If you have questions, feel free to contact
me: [email protected] and I’ll be happy to help!
• See you in Class!
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