RETAIL ADVERTISING AND PROMOTION

Objectives

Developing & Managing an Advertising Program Deciding on Media & Measuring Effectiveness Sales Promotion Public Relation Principles of Personal Selling

Major decisions in advertising

Objectives Setting

Budget Decisions
Message Decisions Media Decisions

Campaign Evaluation

Advertising Objectives

Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time
Persuasive Advertising
Build Selective Demand

Informative Advertising
Build Primary Demand

Comparison Advertising
Compares One Brand to Another

Reminder Advertising
Keeps Consumers Thinking About a Product.

The Five Ms of Advertising

Message Money
Factors to consider:
Message generation Message evaluation and selection Message execution Social-responsibility review

Mission
Sales goals Advertising objectives

Stage in PLC Market share and consumer base Competition and clutter Advertising frequency Product substitutability

Measurement
Communication impact Sales impact

Media
Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical media allocation

Advertising Budget Factors

Market Share & Consumer Base

Stage in the Product Life Cycle

Competition & Clutter

Product Substitutability

Advertising Frequency

Profiles of Major Media Types

Newspapers
Advantages: Flexibility, timeliness; good local market coverage; broad acceptance, high believability

Limitations: Short life; poor reproduction quality; small pass-along audience

Television

Advantages: Combines sight, sound, motion; high attention; high reach; appealing to senses Limitations: High absolute costs; high clutter; fleeting exposure; less audience selectivity

Direct Mail
Advantages: Audience selectivity; flexibility, no ad competition within same medium; allows personalization
Limitations: Relative high cost; junk mail image

Profiles of Major Media Types

Radio
Advantages: Mass use; high geographic and demographic selectivity; low cost

Limitations: Audio only; fleeting exposure; lower attention; nonstandardized rates; fragmented audiences

Magazines

Advantages: High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along readership Limitations: Long ad purchase lead time; waste circulation; no guarantee of position

Outdoor
Advantages: Flexibility; high repeat exposure; low cost; low message competition Limitations: Little audience selectivity; creative limitations

Classification of Advertising Timing Patterns

Concentrated

Level (1)

Rising (2)

Falling Alternating (3) (4)

(5)
Continuous

(6)

(7)

(8)

(9) (9)
Intermittent

(10)

(11)

(12)

Number of messages per month

Month

Advertising Strategy Message Execution

Turning the Big Idea Into an Actual Ad to Capture the Target Markets Attention and Interest.
Testimonial Evidence Scientific Evidence Technical Expertise Personality Symbol Slice of Life

Lifestyle

Typical Message Execution Styles

Fantasy
Mood or Image

Musical

Advertising Evaluation
Advertising Program Evaluation

Communication Effects
Is the Ad Communicating Well?

Sales Effects
Is the Ad Increasing Sales?

Why the increase in Sales Promotion?

Growing retailer power Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer market Short-term focus Increased managerial accountability Competition Clutter

Long-Term Promotional Allocation

%t of total - 3 yr.MA

60 50 40 30 20 10 0
1986 88 90 92 94 1996

Trade Promo Media Adv

Cons. Promo

Year Cox Direct 19th Annual Survey of Promotional Practices

Channels of Sales Promotions

MANUFACTURER Trade Promotions RETAILER Push Consumer Promotions

Push

Retail Promotions
CONSUMER

Pull

Consumer Promotion
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

Consumer-Promotion Tools
Samples Coupons Cash Refunds Price Packs Premiums Advertising Specialties Patronage Patronage Rewards Rewards Contests Sweepstakes

Games

Point-of-Purchase Displays

Deal Proneness,
Liechtenstein, Burton, & Netemeyer, Journal of Retailing, Summer 1997

Examination of deal proneness among consumers in a supermarket setting Surveys & Grocery Receipts used Eight types of deals:

Cent-off, One-free, Gift, Display, Rebate, Contest, Sale, & Coupon

Deal Proneness,
Liechtenstein, Burton, & Netemeyer
Cluster analysis yielded two interpretable results: 49% are deal prone, 51% not 24% High Deal prone, 50% intermediate, 26% deal insensitive Deal-proneness a generalized construct (crosses type of promotion) Younger & Less educated more likely to be deal prone

Trade Promotions
Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf Space Promote a Brand in Advertising Push a Brand to Consumers

Trade-Promotion Tools
Price-Offs Allowances Premiums

Patronage Displays Rewards

Discounts Push Money Specialty Advertising Items

Buy-Back Guarantees
Free Goods Contests

Business-to-Business Promotion
Business-Promotion Objectives
Generate Business Leads Stimulate Purchases Reward Customers Motivate Salespeople

Business-Promotion Tools
Conventions Trade Shows Sales Contests

Major Public Relations Tools

Web Site
Public Service Activities News

Corporate Identity Materials Audiovisual Materials

Speeches

Written Materials

Special Events

When might you decide to use Personal Selling?

Tight budget (straight commission) Concentrated Market

Few buyers High value product

Product must be customized Personal contact important Must demonstrate product Product involves trade-in/up

Designing the Sales Force

Sales force objectives Sales force strategy Sales force structure Sales force size

Sales force compensation

Sales Force Structures

Territorial Product

Market

Complexity

Workload Approach to Sales Force Size

Classify customers by size Determine desirable call frequencies Determine total sales calls needed per year Determine average number of sales calls per sales representative per year Divide total by number per rep

Sales Force Compensation

Fixed Variable Expense Allowances Benefits

Managing the Sales Force

Recruiting & selecting sales representatives Training sales representatives Supervising sales representatives Motivating sales representatives Evaluating sales representatives

Time and Duty Analysis

Preparation

Administration

Travel

Selling
Waiting

Food & Breaks

Sales Representative Motivation

Motivation Effort Performance Rewards

Satisfaction

Evaluating Salespeople

Call Reports

Work Plan

Sources of Information
Annual Territory Marketing Plan

Improving Sales Force Effectiveness

Training in sales techniques & professionalism Negotiation skills Relationship-building skills

The Zone of Agreement

Zone of agreement
Sellers surplus Buyers surplus

s Sellers reservation price (seller wants s or more) Seller wants to move x to the right

Final contract

b Buyers reservation price (buyer wants b or less)

Buyer wants to move x to the left

Performance Evaluation

Current-to-Past Customer Satisfaction Qualitative Evaluation

Steps in the Selling Process

Step 1. Prospecting and Qualifying
Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call.

Step 2. Pre-approach

Step 3. Approach

Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start.
Telling the Product Story to the Buyer, and Showing the Product Benefits.

Step 4. Presentation/ Demonstration

Steps in the Selling Process

Step 5. Handling Objections
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.

Alternative Steps:
Find
Grab Show Answer

Sell Keep