Institutionl ADV 2017

30015
Marketing

Prof. Elena Bellio

(c) Elena Bellio 2023 - for teaching purposes only

Principles of Marketing
Nineteenth Edition, Global Edition

Chapter 15
Advertising and Public Relations

Chapter 16
Personal Selling and Sales
Promotion
Advertising (1 of 2)
Advertising is any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an identified
sponsor.
Advertising (2 of 2)
Figure 15.1 Major Advertising Decisions
Setting Advertising Objectives (1 of
3)
An advertising objective is
a specific communication
task to be accomplished with
a specific target audience
during a specific time.
Comparative advertising:
Microsoft and Apple have
taken direct aim at each other
rvlsoft/Shutterstock
in their advertising time and
again over the years.
(c) Elena Bellio 2023 - for teaching purposes only
(c) Elena Bellio 2023 - for teaching purposes only
10
Setting Advertising Objectives (2 of
3)
Informative advertising is used when introducing a new
product category to build primary demand.
Persuasive advertising is important with increased
competition to build selective demand.
Reminder advertising is important with mature products to
help maintain customer relationships and keep customers
thinking about the product.
Setting the Advertising Budget
Factors to Consider
 Stage in product life cycle
 Market share
 Competition
Developing Advertising
Strategy (1 of 13)
Advertising strategy is the strategy by which the company
accomplishes its advertising objectives and consists of:
 Creating advertising messages and brand content
 Selecting advertising media
Developing Advertising Strategy
(2 of 13)
Creating the Advertising Message and Brand Content
Advertising clutter: Today’s
cord-cutting consumers have
a rich new set of information
and entertainment options.
Advertisers can no longer
force-feed the same old
cookie-cutter messages and
content to captive consumers
through traditional media.
Rasulov/Shutterstock
Developing Advertising
Strategy (3 of 13)
Creating the Advertising Message and Brand Content
Merging advertising and entertainment:
 Brand integrations—also known as branded
entertainment, involve making the brand an inseparable
part of some form of entertainment or content.
 Native advertising—advertising or other brand-produced
online content that looks in form and function like the other
natural content surrounding it on a web or social media
platform.
Developing Advertising Strategy
(4 of 13)
Creating the Advertising Message and Brand Content
Message and content strategy: The first step in creating
effective advertising content is to plan a message strategy—
the general message that will be communicated to
consumers.
 Identifies consumer benefits
 Follows from company’s broader positioning and customer
value creation strategies
Developing Advertising
Strategy (5 of 13)
Creating the Advertising
Message and Brand Content
The creative concept is the
compelling “big idea” that will
bring an advertising message
strategy to life in a distinctive and
memorable way.
Characteristics of the appeals:
 Meaningful
 Believable
 Distinctive
Relevant...appealing

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http://www.coca-colaitalia.it/la-nostra-azienda/missione-visione-valori

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Coherent

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Different

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Different

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Developing Advertising Strategy
(6 of 13)
Creating the Advertising Message and Brand Content
Message execution occurs when the advertiser turns the big
idea into an actual ad execution that will capture the target
market’s attention and interest. The creative team must find
the best approach, style, tone, words, and format for
executing the message.
Developing Advertising Strategy (7
of 13)
Message Execution Styles
• Slice of life shows one or more “typical” people using the product in a normal
setting.
• Lifestyle shows how a product fits in with a particular lifestyle.
• Fantasy creates a fantasy around the product or its use.
• Mood or image builds a mood or image around the product or service, such as
beauty, love, intrigue, serenity, or pride. Few claims are made about the product
or service except through suggestion.
• Musical shows people or cartoon characters singing about the product.
• Personality symbol creates a character that represents the product.
• Technical expertise shows the company’s expertise in making the product.
• Scientific evidence presents survey or scientific evidence that the brand is
better or better liked than one or more other brands.
• Testimonial evidence or endorsement features a highly believable or likable
source endorsing the product. It could be ordinary people saying how much
they like a given product.
Developing Advertising
Strategy (8 of 13)
Creating the Advertising
Message and Brand Content
Message execution also includes:
 Tone

– Positive or negative
 Attention-getting words
 Format

– Illustration
– Headline
– Copy
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Gillette shavers…on ice!

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Developing Advertising
Strategy (9 of 13)
Selecting Advertising Media
The major steps in advertising media
selection:
 Determining reach, frequency, impact,
and engagement
 Choosing among major media types
 Selecting specific media vehicles
 Choosing media timing

Engaging the right consumers with the right

media: The adidas “Here to Create Legend” Marcio Jose Bastos Silva/Shutterstock
Boston Marathon campaign created
ultrapersonalized highlight videos for each
of 30,000 marathon participants, identified
by RFID chips on their adidas bibs, and
made available online within hours.
Developing Advertising Strategy
(10 of 13)
Reach is a measure of the percentage of people in the target
market who are exposed to the ad campaign during a given
period of time.
Frequency is a measure of how many times the average
person in the target market is exposed to the message.
Impact is the qualitative value of a message exposure
through a given medium.
Engagement is a measure of things such as ratings,
readership, listenership, and click-through rates.
Developing Advertising Strategy
(11 of 13)
Table 15.2 Profiles of Major Media Types
Medium Advantages Limitations
Digital, mobile, High selectivity; low cost; immediacy; engagement Potentially low impact; high audience
and social capabilities control of content and exposure
media

Television Good mass-marketing coverage; low cost per High total costs; high clutter; fleeting
exposure; combines sight, sound, and motion; exposure; less audience selectivity
appealing to the senses
Newspapers Flexibility; timeliness; good local market coverage; Short life; poor reproduction quality;
high believability small pass-along audience

Direct mail High audience selectivity; flexibility; no ad
competition within the same medium; allows
personalization
Magazines High geographic and demographic selectivity;
credibility and prestige; high-quality reproduction;
long life and good pass-along readership
Radio Good local acceptance; high geographic and
demographic selectivity; low cost
Outdoor Flexibility; high repeat exposure; low cost; good
positional selectivity
Relatively high cost per exposure;
“junk mail” image
Long ad purchase lead time; high cost;
no guarantee of position
Audio only; fleeting exposure; low
attention (“the half-heard” medium);
fragmented audiences
Little audience selectivity; creative
limitations
Developing Advertising
Strategy (12 of 13)
Selecting Advertising Media Marketers have discovered a
Selecting specific media dazzling array of alternative
vehicles involves decisions media, like this clever
presenting the message promotion for the fourth season
effectively and efficiently to the of Stranger Things at the Piazza
target customer and must del Duomo.
consider the message’s:
 Impact
 Effectiveness
 Cost

Francesco Prandoni/Getty Images

Developing Advertising Strategy
(13 of 13)
Selecting Advertising Media
Deciding on media timing: When deciding on media timing, the
planner must consider:
 Seasonality
 Real-time responses
Evaluating Advertising
Effectiveness and Return on
Advertising Investment (1 of 3)
Return on advertising investment is the net return on
advertising investment divided by the costs of the advertising
investment.
Evaluating Advertising
Effectiveness and Return on
Advertising Investment (2 of 3)
Communication effects indicate whether the ad and media
are communicating the ad message well and can be tested
before or after the ad runs.
Sales and profit effects compare past sales and profits with
past expenditures or through experiments.
Evaluating Advertising
Effectiveness and Return on
Advertising Investment (3 of 3)
Sales effects are easier to measure with digital advertising.
 The digital environment is friendly to experimentation.
 Marketers can manipulate content across customer groups
with readily measurable results.
Managers must still rely on judgment along with quantitative
analysis when assessing advertising performance.
Other Advertising Considerations
Organizing for advertising
 Agency v s. in-house
ersu

International advertising
decisions
 Standardization or Adaptation

International advertising: No Used with permission of Inter I K E A System B.V.

matter where in the world you
go—here India—I K E A’s
advertising portrays I K E A’s
“better home” themes of
creating a better life for
everyday people through quality
furniture at affordable prices.
Diversity, Equity, and Inclusion (DE
I) in Advertising
Successfully incorporating D E I
into the fabric of a brand’s
advertising and identity requires
a deep and continuous
commitment. Love has no race,
no age, no gender, no religion K
no labels.

Courtesy of Ad Council
Public Relations (1 of 4)
Public relations consists of activities designed to engage
the company’s various publics and build good relations with
them.
Public Relations (2 of 4)
Press relations or press agency involves the creation and
placing of newsworthy information to attract attention to a
person, product, or service.
Product publicity involves publicizing specific products.
Public affairs involves building and maintaining national or
local community relations.
Public Relations (3 of 4)
Lobbying involves building and maintaining relations with
legislators and government officials to influence legislation
and regulation.
Investor relations involves maintaining relationships with
shareholders and others in the financial community.
Development involves public relations with donors or
members of nonprofit organizations to gain financial or
volunteer support.
 Public Relations (4 of 4)
The Role and Impact of PR
 Lower cost than advertising
 Stronger impact on public awareness than advertising
 Has power to engage consumers and make them part of
the brand story
Major Public Relations Tools
 News
 Videos
 Special events
 Written materials
 Corporate identity materials
 Public service activities
 Buzz marketing
 Social networking
 Internet
Personal Selling (1 of 2)
Personal selling is the interpersonal part of the promotion mix
and can include:
 Face-to-face communication
 Telephone communication
 Video or web conferencing

Professional selling: It takes a lot

more than a friendly smile and a
firm handshake to sell P&G’s
billion-dollar brands to
professional buyers at P&G’s Jin Lee/Bloomberg via Getty Images

large retailer accounts. P&G’s

customer business development
managers work with customers
as “strategic partners.”
Personal Selling (2 of 2)
The Nature of Personal
Salespeople link the company
Selling
with its customers. To many
Salespeople are an effective customers, the salesperson is
link between the company and the company.
its customers to produce
customer value and company
profit by:
 Representing the company to
customers
 Representing customers to
the company
Dean
 Working closely with Drobot/Shutterstock
marketing
Managing the Sales Force (1 of 14)
Sales force management is the analysis, planning,
implementation, and control of sales force activities.
Figure 16.1 Major Steps in Sales Force Management
Managing the Sales Force (2 of 14)
Designing Sales Force Strategy and Structure
 Territorial sales force
structure
 Product sales force structure
 Customer sales force
structure

Customer sales force structure:

Vorwerk’s Kobold sales team
consists of thousands of people dpa picture alliance archive/Alamy Stock Photo

who are assigned to fixed areas

to build personal relationships
with customers.
Managing the Sales Force (3 of 14)
Designing Sales Force Strategy and Structure
Territorial sales force structure: each salesperson is
assigned an exclusive geographic area and sells the
company’s full line of products and services to all customers
in that territory.
 Defines salesperson’s job
 Fixes accountability
 Lowers sales expenses
 Improves relationship building and selling effectiveness
Managing the Sales Force (4 of 14)
Designing Sales Force Strategy and Structure
Product sales force structure: each salesperson sells
along product lines.
 Improves product knowledge
 Can lead to territorial conflicts
Managing the Sales Force (5 of 14)
Designing Sales Force Strategy and Structure
Customer sales force structure: each salesperson sells
along customer or industry lines.
 Improves customer relationships
Managing the Sales Force (6 of 14)
Designing Sales Force Strategy and Structure
Sales Force Size
 Salespeople are one of the company’s most productive
and expensive assets.
 Workload approach to sales force size refers to grouping
accounts into different classes to determine the number of
salespeople needed.
Managing the Sales Force (7 of 14)
Designing Sales Force Strategy and Structure
 Outside sales force (field sales force) are salespeople who
travel to call on customers in the field.
 Inside sales force are salespeople who conduct business from
interactions, or visits from prospective buyers.
 Team selling involves using teams of people from sales,
marketing, engineering, finance, technical support, and even
upper management to service large, complex accounts via
telephone, online and social media.
The lines have blurred between
outside and inside selling, creating
a new breed of “hybrid sales reps”
who often work virtually when
connecting with customers.
fizkes/Shutterstock
Managing the Sales Force (8 of 14)
Recruiting and Selecting Salespeople
 Careful selection and training increases sales
performance.
 Poor selection increases recruiting and training costs,
leads to lost sales, and disrupts customer relationships.
Managing the Sales Force (9 of 14)
Training Salespeople
 Goals of training
– Customer knowledge
– Selling process
– Knowledge of products, company, competitors
Managing the Sales Force (10 of 14)
Compensating
Salespeople
 Fixed amounts
 Variable amounts
 Expenses
 Fringe benefits

The fixed amount, usually a salary, gives the

salesperson some stable income. The variable
amount, which might be commissions or bonuses
based on sales performance, rewards the salesperson
for greater effort and success.
Sales force compensation: A good compensation plan
both motivates salespeople and directs their activities.
Managing the Sales Force (11 of 14)
Supervising
Salespeople Sales force automation: To help
 The goal of supervision is to salespeople work more efficiently
help salespeople work smart by and effectively anytime, anywhere,
doing the right things in the right companies routinely equip their
ways. salespeople with laptops or tablets,
smartphones, videoconferencing
 Sales force automation systems
technologies, and customer
are computerized, digitized
relationship management software.
sales force operations that let
salespeople work more
effectively anytime, anywhere.

kantver/123RF
Robots for reception

(c) Elena Bellio 2023 - for teaching purposes only

Managing the Sales Force (12 of 14)
Motivating Salespeople
 Sales morale and performance can be increased through
– Organizational climate
– Sales quotas
– Positive incentives
 Sales quotas are standards stating the amount
salespeople should sell and how sales should be divided
among the company’s products.
Managing the Sales Force (13 of 14)
Evaluating Salespeople and Sales Force Performance
 Sales reports
 Call reports
 Expense reports
Managing the Sales Force (14 of 14)
Social Selling: Online, Mobile, and Social Media Tools
 Social selling is the use of
online, mobile, and social media
to engage customers, build
stronger customer relationships,
and augment sales performance.
 Digital technologies can make
salespeople more productive and
effective.
The Personal Selling Process (1 of 7)
Figure 16.2 Steps in the Selling Process
The Personal Selling Process (2 of 7)
Steps in the Personal Selling Process
Prospecting identifies qualified potential customers through
referrals from:
 Customers
 Suppliers
 Dealers
 Internet
The Personal Selling Process (3 of 7)
Steps in the Personal Selling Process
Preapproach is the process of learning as much as possible
about a prospect, including needs, who is involved in the
buying, and the characteristics and styles of the buyers.
 Objectives
– Qualify the prospect
– Gather information
– Make an immediate sale
 Approaches
– Personal visit
– Phone call
– Letter/email
The Personal Selling Process (4 of 7)
Steps in the Personal Selling Process
Approach is the process where the salesperson meets and
greets the buyer and gets the relationship off to a good start
and involves the salesperson’s:
 Appearance
 Opening lines
 Follow-up remarks
The Personal Selling Process (5 of 7)
Steps in the Personal Great salespeople know how
Selling Process to sell, but more important,
Presentation is when the they know how to listen and
salesperson tells the product build strong customer
story to the buyer, presenting relationships.
customer benefits, and
showing how the product
solves the customer’s
problems.

coffeehuman/Shutterstock
The Personal Selling Process (6 of 7)
Steps in the Personal Selling Process
Handling objections is the process where salespeople
resolve problems that are logical, psychological, or
unspoken.
Closing is the process where salespeople should recognize
signals from the buyer—including physical actions,
comments, and questions—to ask for a order and finalize the
sale.
The Personal Selling Process (7 of 7)
Steps in the Personal Selling Process
Follow-up is the last step in which the salesperson follows
up after the sale to ensure customer satisfaction and repeat
business.
Personal Selling and Managing
Customer Relationships
Personal selling is transaction-
oriented to close a specific sale
with a specific customer.
The long-term goal of personal
selling is to develop a mutually
profitable relationship.
Value selling: Sales
management’s challenge is to
transform salespeople from
customer advocates for price almagami/123RF

cuts into company advocates for

value.
Sales Promotion (1 of 9)
 Sales promotion refers to the short-term incentives to
encourage purchases or sales of a product or service now.

Sales promotions are found

everywhere. For example,
stores at your local mall are
peppered with signs
announcing special sales.

Gary Armstrong
Sales Promotion (2 of 9)
Rapid Growth of Sales Promotion
 Product managers are under pressure to increase current
sales.
 Companies face more competition.
 Competing brands offer less differentiation.
 Advertising efficiency has declined due to rising costs,
clutter, and legal constraints.
 Consumers have become more deal-oriented.
Sales Promotion (3 of 9)
Sales Promotion Objectives
Setting sales promotion objectives includes using:
 Consumer promotions
 Trade promotions
 Business promotions
 Sales force promotions

Frequency marketing programs:

Uber Rewards builds loyalty and
purchasing through added value
rather than discounted prices. The
more members use Uber, the
more they benefit, with perks such
as locked-in pricing, priority airport
pickups, access to highly rated
drivers, and complimentary
Uber
upgrades at no extra cost.
Sales Promotion (4 of 9)
Major Sales Promotion
Tools Consumer samples can be a
Samples offer a trial amount of powerful tool. Ben & Jerry’s Free
a product. Cone Day thanks customers for
being “so uniquely awesome”
Coupons are certificates that and also generates tons of buzz
give buyers a saving when they and draws new customers into
purchase specified products. its scoop shops.
Rebates are similar to coupons
except that the price reduction
occurs after the purchase.
Price packs offer consumers
savings off the regular price of a
product.

Helen H. Richardson/Denver Post/Getty Images

Sales Promotion (5 of 9)
Major Sales Promotion Tools
Premiums are goods offered either for free or at a low price.
Advertising specialties are useful articles imprinted with
the advertiser’s name, logo, or message that are given as
gifts to consumers.
Point-of-purchase promotions include displays and
demonstrations that take place at the point of sale.
Sales Promotion (6 of 9)
Major Sales Promotion Tools
Contests, sweepstakes, and games give consumers the
chance to win something—such as cash, trips, or goods—by
luck or through extra effort.
 Contests require an entry by a consumer.
 Sweepstakes require consumers to submit their names for
a drawing.
 Games present consumers with something that may or
may not help them win a prize.
Event marketing or event sponsorship is creating a
brand-marketing event or serving as a sole or participating
sponsor of events created by others.
Sales Promotion (7 of 9)
Major Tools for Trade
Promotions
 Discount
 Allowance
 Free goods
Mi Pan/Shutterstock
 Specialty advertising

Event marketing: Red Bull has

turned event marketing into a
science. It hosts hundreds of
events each year designed to
bring the high-octane world of
Red Bull to its community of
enthusiasts.
Sales Promotion (8 of 9)
Major Sales Promotion Tools for Business Customers
Conventions and trade shows are effective to reach many
customers not reached with the regular sales force.
Sales contests are effective in motivating salespeople or dealers
to increase performance over a given period.
Event marketing: House of Vans
events draw thousands of Vans
brand fans who gather to
celebrate their common interests
in action sports, live music, art,
and street culture while
presenting opportunities to
showcase new Vans products to
Richard Milnes/Alamy Stock Photo; Jeff Saunders Travel
the delight of both the brand Stock/Alamy Stock Photo

and its fans.

Sales Promotion (9 of 9)
Developing the Sales Promotion Program
 Size of the incentive
 Conditions for participation
 Promotion and distribution of the program
 Length of the program
 Evaluation of the program