Chapter 15 – Ads, Sales Promos, and Personal Selling

Attention – senders first must gain the attention of the consumers, a

multichannel approach increases the likelihood the message will be
received
Interest – after the customer is aware, they must be persuaded, the
customer must want to further investigate the product/service
Desire – I like it  I want it
Action - purchase is just one type of action

Lagged Effect – advertising does not always have an immediate impact,

multiple exposures are often necessary, difficult to determine which
exposure led to purchase

Advertising – a paid form of communication, from an identifiable source, delivered through a

communication channel, and designed to persuade to take action
Objectives: inform, persuade, and remind
Informative Advertising – early in the PLC, firms use informative advertising to educate consumers
about the product/service
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 and established
brand. Reminder Advertising – after the products have gained market acceptance, top-of-the-mind
awareness
Focus of Advertisement:
- Product-focused
- Institutional

Product Placement – product is included in non-traditional situations. Ex – a scene in a movie, music

video
Public Service Announcements – a special class of demand advertising, focus on public welfare,
sponsored by non-profit organizations, a form of social marketing

Regulatory & Ethical Issues in Advertising

- Regulation is a mix of formal laws and informal restrictions
- Designed to protect consumers form deceptive practices
- Many federal & provincial laws, self-regulatory agencies & agreements

Puffery –

Agencies that regulate advertising s22

Consumer Sales Promotion

- Can be targeted at either the end user consumers or channel members
- Can be used in either push or pull strategies
- Types s 24
Trade Channel Sales Promotions
- Discounts & allowances
- Co-operative advertising
- Sales force training

Using Sales Promotion Tools

- Marketers need to be careful in their use of promotions
- Future sales are shifted to now
- Short-run benefits at the expense of long-term sustainability
- Tools: pop-up stores, cross-promoting

Evaluating Sales Promotions by Using Marketing Metrics

Realized Margin
Cost of Additional inventory
Potential increase in sales
Long-term impact
Potential loss from switches from more profitable items
Additional sales by customers

Personal Selling – Scope & Nature

- Face to face
- Video conferencing
- Telephone
- Internet

Professional Selling as a Career

- People love the lifestyle
- There is a lot of independence
- There is a lot of variety in the job
- Can be very lucrative, among the highest paying careers for college grads
- Very visible the management, good for promotions

Unique Contribution to the Four P’s

- Can customize the message for a specific buyer
- Assist in creating strong supply chain relationships
- Increased customer loyalty through relationship selling
- Gather research input from customers
- Crucial to the success of CRM

The Personal Selling Process

1. Generate & Qualify Leads
- Source of leads: current customers, cold calling, telemarketing, trade shows, the internet,
networking events
2. Preapproach – extends the qualification procedure, set goals for what is to be accomplished
3. Sales Presentation & Overcoming objections
The Presentation – person-to-person, ask questions, listen carefully
 Handling Objections – usually occurs during the presentation, anticipate in advance, relax,
listen, ask questions

4. Closing the sale – getting the order, often most stressful part of sales process, a “non: one day
may be the foundation for a “yes” another
5. Follow-up – Fives service quality dimensions: reliability, responsiveness, assurance, empathy,
tangibles.