Marketing Week 12 Chapter 15

AIDA Model

A common model of the series of mental stages through which consumers move as a result of marketing communications: Attention leads to Interest, which leads to Desire, which leads to Action.

Attention

• Senders first must gain the attention of the consumers

• A multichannel approach increases the likelihood the message will be received

aided recall

Occurs when consumers recognize the brand when its name is presented to them

top-of-mind awareness

• A prominent place in people’s memories that triggers a response without them having to put any thought into it.

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

Other actions: clicking a link, filling out a survey etc

Behavioural Change

Attitude Change

Action Change

Lagged Effect

Advertising does not always have an immediate impact

Multiple exposures are often necessary

Difficult to determine which exposure led to purchase

Advertising Objectives

• Inform

• Persuade

• Remind

Informative Advertising

• Communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase.

• Early in the PLC, firms use informative advertising to educate consumers about the product/service

Persuasive Advertising

• Communication used to motivate consumers to take action.

• 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

Reminder Advertising

• Communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.

• After the products have gained market acceptance

• Top-of-the-mind awareness

Product-focused Ads

Used to inform, persuade, or remind consumers about a specific product or service.

Institutional focused ads

Used to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation.

Product Placement

• Product is included in non- traditional situations

  • Inclusion of a product in non-traditional situations, such as in a scene in a movie or TV program.

• Example: a scene in a movie, music videos

Public Service Announcements

Advertising that focuses on public welfare and generally is sponsored by non-profit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing.

• A special class of demand advertising

• Focus is on public welfare

• Sponsored by non-profit organizations

• A form of social marketing

social marketing

• The application of marketing principles to a social issue to bring about attitudinal and behavioural change among the general public or a specific population segment.

Regulatory & Ethical Issues in Advertising

• Regulation is a mix of formal laws & informal restrictions

• Designed to protect consumers from deceptive practices

• Many federal & provincial laws, self regulatory agencies & agreements

Agencies That Regulate Advertising

Competition bureau Canada/The competition act, Canadian Radio-Television and telecommuniactions commision (CRTC), health canada/ food and drugs act, advertising standards Canad

Deceptive Advertising

is a representation, omission, act, or practice in an advertisement that is likely to mislead consumers acting reasonably under the circumstances.

Puffery

The legal exaggeration of praise stopping just short of deception, lavished on a product

Consumer Sales Promotion

Can be targeted at either the end user consumers or channel members

Can be used in either push or pull strategies

Deal

A type of short-term price reduction that can take several forms, such as a “featured price” (a price lower than the regular price); a “buy one, get one free” offer; or a certain percentage “more free” offer contained in larger packaging.

Coupon

Offers a discount on the price of a specific item when purchased, issued by manufacturers in newspapers etc

Premium

An item offered for free or at a bargain price to reward some type of behaviour, such as buying, sampling, or testing.

Contest

A brand-sponsored competition that requires some form of skill or effort.

Sweepstakes

A form of sales promotion that offers prizes based on a chance drawing of entrants’ names.

Sampling

Offers potential customers the opportunity to try a product or service before they make a buying decision.

Loyalty program

Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.

Point-of-purchase (POP) display

A merchandise display located at the point of purchase, such as at the checkout counter in a grocery store.

Rebates

Particular type of price reduction in which a portion of the purchase price is returned to the buyer

Trade Channel Sales Promotion

Discounts and Allowances, Co-op advertising, Sales Force Training

Case allowance

Manufacturers offer a discount or dollar amount taken off each case ordered during a specific time period, or for featuring the product in some way or extra in store support

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 sales stability

• • Tools: pop-up stores, cross-promoting

Cross promoting

Efforts of two or more firms joining together to reach a specific target market.

Evaluating Sales Promotions By Using Marketing Metrics

• Realized Margin

• Cost of additonal Inventory

• Potential increase in sales

• Long-term impact

• Potential loss from switches from more profitable items

• Additional Sales by customers

Personal Selling

• 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 graduates

• Very visible to management, good for promotions

Unique Contribution to the Four P’s

• Can customize the message for a specific buyer

• Assists in creating strong supply chain relationships

• Increased customer loyalty through relationship selling

• Gather research input from customers

• Crucial to the success of CRM

Relationship selling

A sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties

Salespeople

• Build relationships

• Educate and Provide Advice

• Save time and simplify buying

Personal Selling Process

1. Generate and Qualify Leads

2. Pre-approach

3. Sales presentations and overcoming objections

4. Closing the sales

5. Follow-up

Leads

A list of potential customers.

Sources of Leads

1. Cold Calling

2. Trade Shows

3. Telemarketing

4. The internet

5. Networking events

6. Current customers

Trade shows

Major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry.

Cold calls

A method of prospecting in which salespeople telephone or go to see potential customers without appointments.

Telemarketing

A method of prospecting in which salespeople telephone potential customers.

Step 2: Preapproach

In the personal selling process, occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; in this step, the salesperson conducts additional research and develops plans for meeting with the customer.

• Extends the qualification procedure

• Sets goals for what is to be accomplished

Handling Objections

• Usually occurs during the presentation

• Anticipate in advance

• Relax, listen, ask questions

Step 4: Closing the Sale

• Obtaining a commitment from the customer to make a purchase.

• Getting the order

• Often most stressful part of sales process

• A “no” one day may be the foundation for a “yes” another

5 Service Quality Dimensions:

1. Reliability

2. Responsiveness

3. Assurance

4. Empathy

5. Tangibles