Download Chapter 15: Advertising, Sales Promotion, and Public Relations

15-1
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter 15
Advertising, Sales
Promotion
and Public Relations
 Copyright 1999 Prentice Hall
What is Advertising?
• 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
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Major Decisions in Advertising
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
 Copyright 1999 Prentice Hall
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Setting Objectives
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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
Another
Keeps Consumers Thinking
About a Product.
 Copyright 1999 Prentice Hall
Setting the Advertising Budget
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Advertising Budget Methods
Affordable, Percentage of Sales, Competitive-Parity and
Objective-and-Task
Product
Differentiation
Advertising
Frequency
Stage in the Product
Life Cycle
Factors in
Setting the
Advertising
Budget
Competition
and Clutter
 Copyright 1999 Prentice Hall
Market
Share
Click
to add Strategy
title
Advertising
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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
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
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Advertising Evaluation
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Advertising Program Evaluation
Communication Effects
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
 Copyright 1999 Prentice Hall
Ways to Handle Advertising
Sales Departments in
Small Companies
Advertising Departments
in Larger Companies
Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs.
 Copyright 1999 Prentice Hall
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International Advertising Decisions
Adaptation of
Global Advertising
Advertising Media Costs
& Availability
Regulation of
Advertising Practices
 Copyright 1999 Prentice Hall
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What is Sales Promotion?
• 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
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Consumer - Promotion Tools
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Short-Term Incentives to Encourage Purchase
or Sales of a Product or Service.
Consumer-Promotion
Tools
Consumer-Promotion
Objectives
Entice Consumers to
Try a New Product
Lure Customers Away
From Competitors’ Products
Get Consumers to “Load Up’
on a Mature Product
Hold & Reward Loyal
Customers
Consumer Relationship
Building
Samples
Coupons
Cash Refunds
Advertising
Specialties
Patronage
Patronage
Rewards
Rewards
Contests
Price Packs
Premiums
Sweepstakes
Games
Point-of-Purchase
Displays
 Copyright 1999 Prentice Hall
Trade - Promotion Tools
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Short-Term Incentives That are Directed to
Retailers and Wholesalers.
Trade-Promotion
Tools
Trade-Promotion
Objectives
Persuade Retailers or
Wholesalers to Carry a Brand
Price-Offs
Premiums
Give a Brand Shelf Space
Allowances
Promote a Brand in
Advertising
Patronage
Displays
Rewards
Buy-Back
Guarantees
Discounts
Push a Brand to Consumers
Free Goods
Contests
 Copyright 1999 Prentice Hall
Push Money
Specialty
Advertising
Items
What is Public Relations?
• 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
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Major Public Relations Tools
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Web Site
Public
Service
Activities
News
Corporate
Identity
Materials
Speeches
Special
Events
Audiovisual
Materials
Written
Materials
 Copyright 1999 Prentice Hall
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PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Chapter 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
• 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
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Managing the Salesforce
Designing Salesforce Strategy and Structure
Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople
 Copyright 1999 Prentice Hall
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Compensating Salespeople
Sales Force Compensation Plans Can Both Motivate
Salespeople and Direct Their Activities.
Salary
Benefits
Components
of
Compensation
Commission
 Copyright 1999 Prentice Hall
Bonus
How Salespeople Spend Their Time
Administrative
Service Calls
Tasks
12%
17%
Telephone
Selling
21%
Face-to-Face
Selling
30%
Waiting/
Traveling
20%
 Copyright 1999 Prentice Hall
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Companies
Look For Ways
to Increase the
Amount of
Time
Salespeople
Spend Selling.
Evaluating Salespeople
Expense
Reports
Call
Reports
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Sales
Report
Sources
of
Information
Annual
Territory
Marketing Plan
 Copyright 1999 Prentice Hall
Work
Plan
Steps in the Selling Process
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Step 1. Prospecting and Qualifying
Identifying and Screening For
Qualified Potential Customers.
Step 2. Preapproach
Learning As Much As Possible
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
Step 5. Handling Objections
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Seeking Out, Clarifying, and
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
• 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
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