Download 10 - Week Ten

Week Ten
Advertising,
Sales Promotion
and Personal
Selling
Ajax Persaud
Dhruv Grewal
Copyright © 2012 McGraw-Hill Ryerson Limited
Shirley Lichti
Michael Levy
Chapter Objectives
LEARNING OBJECTIVES
LO1 Describe advertising and the objectives of
advertising
LO2 Summarize the regulatory and ethical issues
of concern to advertisers
LO3 Explain how sales promotions supplement a
firm’s IMC strategy
LO4 Describe personal selling and how it adds
value
LO5 Identify the steps in the personal selling
process
15-2
Chapter Roadmap
15-3
LO1
Subaru’s Sexy Sumos
• Consumers didn’t realize Subaru was Japanese
• Newly designed Forrester launched as fun, sexy
• Ad recall for Sexy Sumos set recall record at 74%
15-4
LO1
The AIDA Model
15-5
LO1
Awareness
• Senders first must
gain the attention of
the consumers
• A multichannel
approach increases
the likelihood the
message will be
received
15-6
LO1
Interest
• After the customer is
aware, they must be
persuaded
• The customer must
want to further
investigate the
product/service
15-7
LO1
Desire
I like it
I want it
15-8
LO1
Action
Purchase is just one type
of action.
What other actions can
consumers be asked to
take?
15-9
LO1
Lagged Effect



Advertising does not
always have an immediate
impact
Multiple exposures are
often necessary
Difficult to determine which
exposure led to purchase
15-10
LO1
AIDA Model
Where is this ad in
the AIDA model?
15-11
LO1
Advertising
•
•
•
•
Paid message
Delivered through
media
Must have identifiable
source
Designed to persuade
15-12
LO1
Advertising Objectives
Inform
Persuade
Remind
15-13
LO1
Informative Advertising
Early in the PLC,
firms use informative
advertising to educate
consumers about the
product/service.
15-14
LO1
Persuasive Advertising


Generally occurs in the
growth and early
maturity stages of the
PLC when competition
is most intense
In the later stage of the
PLC may be used to
reposition an
established brand
15-15
LO1
Reminder Advertising


After the products
have gained market
acceptance
Top-of-the-mindawareness
15-16
LO1
Focus of Advertisements
Institutional
advertisements
Product-focused
advertisements
15-17
LO1
Social Marketing


Public Service
Advertising (PSA)
Under Canadian
Radio-television and
Telecommunications
Commission rules
broadcasters must
devote a specific
amount of free airtime
to PSAs
15-18
LO2
Regulatory and Ethical Issues



Messages with an
economic motivation
Must be fact based
Examples: Advertising
and direct marketing



Messages with no
economic motivation
Protected under the
Charter of Rights and
Freedoms
Example: PR
15-19
LO2
Puffery
15-20
LO2
Ethical Dilemma 15.1
Product (RED)




> US$100 million spent
by companies advertising
their RED collections
US$18 million donated to
the Global Fund
Value of PR generated for
Global Fund?
Is it ethical to profit from a
not-for-profit cause?
15-21
Text Application
• Suppose Lexus is introducing a new line of light
trucks and has already created the advertising
campaign. How would you assess the
effectiveness of the campaign?
• Suppose now Lexus is planning a sales
promotion campaign to augment its advertising
campaign for the new line of light trucks. Which
sales promotion tools do you believe would be
the most effective? Why?
• How would the Lexus sales promotion differ if it
was geared to a business organization with a
fleet of company owned trucks?
15-22
LO3
Sales Promotions


Can be targeted at
either the end user
consumers or channel
members
Can be used in either
push or pull strategies
15-23
LO3
Types of Consumer Sales Promotion
15-24
LO3
Types of Consumer Sales Promotion
(continued)
15-25
LO3
Sales Promotion
What form of sales
promotion does this ad
represent?
Do you feel it is an
effective promotion?
Courtesy Nestlé SA
15-26
LO3
Using Sales Promotion Tools
Point-of-sale promotions
Cross-promoting
15-27
Test Your Knowledge
To achieve a successful cross-promotion, the two products must
_______________.
A)
be in the same price range
B)
appeal to the same target market
C)
cause an emotional customer response
D)
not contain puffery
15-28
LO3
Pop-up Beauty
• Short term (30 days)
store at Bloor & Yonge
• Focus on Pantene,
Cover Girl, Olay, Nice’n
Easy, Crest and Venus
brands
• Over 12,000 visitors
and 4,000 hair and
make-up consultations
The “Look Fab Studio” offered free tips
from celebrity make-up artist Paul Venoit.
15-29