Notes on Advertising, Sales Promotions, and Personal Selling

Advertising and Its Objectives

  • Advertising Definition:

    • A paid form of communication from an identifiable source delivered through a communication channel designed to persuade action.

  • Objectives of Advertising:

    • Inform: Educates consumers, often used early in the product life cycle (PLC) to create awareness.
    • Example: Canadian National Institute for the Blind uses informative advertising to warn about UV damage to eyes.
    • Persuade: Attempts to change consumer perceptions and encourage trial, particularly in growth and maturity stages of PLC.
    • Example: Volkswagen's “Think New!” campaign aims to rebuild trust post-scandal.
    • Remind: Keeps the product top-of-mind for consumers, especially in later PLC stages.
    • Example: In-store signage reminding consumers to buy milk.

The AIDA Model in Advertising

  • Attention:

    • Initial step to engage consumers and ensure message reception.
    • Example: An interactive billboard for Women’s Aid that changes as people pass by.

  • Interest:

    • Increase consumer desire to learn more about the product or service.
    • Example: Burger King's Impossible Whopper campaign showcases regular customers unsure of the difference from a conventional Whopper.

  • Desire:

    • Cultivating a sense of wanting the product, reinforced by appealing advertisements.
    • Example: Campaigns involving celebrities to enhance connection with the target market.

  • Action:

    • Encouraging consumers to take some form of action beyond initial interest, creating paths to purchase.
    • Example: Actions deriving from celebrity endorsements or multiple channel touches.

Sales Promotions

  • Purpose:

    • Supplement a firm’s integrated marketing communication (IMC) strategy by stimulating short-term consumer demand.

  • Types of Consumer Sales Promotions:

    • Coupons: Encourage trial but often have low redemption rates.
    • Deals: Reduce perceived risk for the consumer, may lower perceived product value.
    • Premiums: Build goodwill and enhance value perception but require careful management.
    • Contests and Sweepstakes: Drive consumer involvement and brand engagement.
    • Samples: Encourage trial but can be costly for firms.
    • Loyalty Programs: Promote repurchases and foster customer allegiance.
    • POP Displays: Boost visibility, though location and costs can be challenging.

Personal Selling Process

  • Process Stages:

    1. Generate and Qualify Leads: Identify potential customers through various sources including current clients and networking events.
    2. Preapproach: Establish goals and prepare for the sales encounter without assumptions about customer profiling.
    3. Sales Presentation and Overcoming Objections: Deliver personalized presentations and actively listen to client concerns, preparing to address objections.
    4. Closing the Sale: Finalize the agreement, often requiring persistence in the face of rejection.
    5. Follow-Up: Ensure customer satisfaction and sustained engagement post-sale.

  • Unique Contributions of Personal Selling:

    • Customizes messages for specific buyers, enhances supply chain relationships, and fosters customer loyalty through relationship selling.
    • Vital for effective Customer Relationship Management (CRM), offering tailored recommendations and services.

Evaluation of Sales Promotions

  • Metrics for Evaluation:

    • Assess realized margins, additional inventory costs, potential sales increases, long-term impacts, and sales shifts from high-profit items.

  • Caution:

    • Overreliance on promotions may compromise long-term sales stability; hence, strategic use is paramount.