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Slide1 : Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Chapter 19 Marketing Communications Applications


Slide2 : ç TABLE 19.1 The Top Ten Advertising Sectors in Canada, 1998 Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-1 RANK SECTOR EXPENDITURES ($) 1 Retail 953 472 600 2 Automotive 753 841 800 3 Business Equipment and Services 521 617 900 4 Food 395 613 400 5 Financial Services and Insurance 388 013 200 6 Entertainment 314 755 700 7 Local Automotive Dealer Advertising 266 628 700 8 Travel and Transportation 249 321 600 9 Restaurants and Catering Services 199 322 900 10 Media 165 477 300 Source: A.C. Nielsen. Reprinted by permission.


Slide3 : ç Product Advertising Product Advertising Nonpersonal selling of a particular good or service. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-2


Slide4 : ç Institutional Advertising Institutional Advertising Promoting a concept, idea, or philosophy, or the goodwill of an industry, company, or organization. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-3


Slide5 : ç Informative Product Advertising Informative Product Advertising Advertising that seeks to develop demand through presenting factual information on the attributes of a product or service. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-4


Slide6 : ç Persuasive Product Advertising Persuasive Product Advertising Advertising that emphasizes using words or images to try to create an image for a product and to influence attitudes about it. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-5


Slide7 : ç Reminder-Oriented Product Advertising Reminder-Oriented Product Advertising Advertising whose goal is to reinforce previous promotional activity by keeping the product or service name in front of the public. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-6


Slide8 : Introduction Growth Maturity Decline Informative Persuasive Reminder-Oriented Advertising Advertising Advertising Time Sales Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-7 ç FIGURE 19.1 Relationship between Advertising and the Product Life Cycle


Slide9 : ç Media Selection Media Selection Television Newspapers Radio Magazines Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-8 Direct Mail Internet Advertising Outdoor Advertising


Slide10 : ç TABLE 19.2 Advantages and Disadvantages of Various Advertising Media (Slide 1 of 4) Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-9A Television Advertising Newspaper Advertising Demonstration ability Intrusion value Ability to generate excitement One-on-one reach Ability to use humour Effective with salesforce and trade Ability to achieve impact MEDIUM DISADVANTAGES ADVANTAGES Rapidly escalating cost Erosion of viewing audiences Audience fractionalization Zipping and zapping Clutter Audience in appropriate mental frame to process messages Mass audience coverage Flexibility Ability to use detailed copy Timeliness Clutter Not a highly selective medium Higher rates for occasional advertisers Mediocre reproduction quality Complicated buying for national advertiser Changing composition of readers


Slide11 : ç TABLE 19.2 Advantages and Disadvantages of Various Advertising Media (Slide 2 of 4) Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-9B Radio Advertising Magazine Advertising Ability to reach segmented audiences Intimacy Economy Short lead times Transfer of imagery from TV Use of local personalities MEDIUM DISADVANTAGES ADVANTAGES Clutter No visuals Audience fractionalization Buying difficulties Some magazines reach large audiences Selectivity Long life High reproduction quality Ability to present detailed information Authoritative conveying of information High involvement potential Not intrusive Long lead times Clutter Somewhat limited geographic options Variability of circulation patterns by market


Slide12 : ç TABLE 19.2 Advantages and Disadvantages of Various Advertising Media (Slide 3 of 4) Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-9C Direct Mail Internet Advertising Selectivity Intense coverage Speed Flexibility of format Complete information Personalization MEDIUM DISADVANTAGES ADVANTAGES High cost per person Dependence on quality of mailing list Consumer resistance Ability to reach segmented audiences Ability to change message quickly High user interest in medium Use of colour and limited motion graphics Ability to bridge to extensive message and to advertiser’s Web site Can close a sale and take order Limited initial message length Clutter Uncertain effectiveness of new medium Consumer resistance Concern about security of information


Slide13 : ç TABLE 19.2 Advantages and Disadvantages of Various Advertising Media (Slide 4 of 4) Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-9D Outdoor Advertising Broad reach and high frequency levels Geographic flexibility Low cost per thousand Prominent brand identification Opportune purchase reminder MEDIUM DISADVANTAGES ADVANTAGES Nonselectivity Short exposure time Difficult to measure audience size Environmental problems Source: Adapted from Terrance A. Shimp, Advertising, Promotion, and Supplemental Aspects of Integrated Marketing Communications (Fort Worth, TX: Dryden Press, 1997), pp. 324ff.


Slide14 : ç FIGURE 19.2 Net Advertising Revenues by Medium Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-10 Outdoor and Transit (2.13%) Consumer Magazines (2.85%) Weekly Newspapers (6.35%) Radio (8.47%) Yellow Pages (9.48%) Direct Mail (11.80%) Daily Newspapers (14.00%) TV (21.00%) Other (21.68%) Other Print (0.39%) Trade Publications (1.88%) Source: Canadian Media Directors’ Council, Media Digest, 1998–99, p.11. Publication can be accessed on-line at http://www.marketingmag.ca


Slide15 : ç Advertising Agency Advertising Agency A marketing specialist firm that assists the advertiser in planning and preparing its advertisements. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-11


Slide16 : ç Cooperative Advertising Cooperative Advertising The sharing of advertising costs between the retailer and the manufacturer. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-12


Slide17 : ç Comparative Advertising Comparative Advertising Advertising that makes direct promotional comparisons with competitive brands. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-13


Slide18 : ç Assessing the Effectiveness of an Advertisement Assessing the Effectiveness of an Advertisement Pretesting The assessment of an advertisement’s effectiveness before it is actually used. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-14 Post-testing The assessment of advertising copy after it has been used.


Slide19 : ç Direct Response Marketing Direct Response Marketing An interactive system of marketing that uses one or more advertising media to effect a measurable response directly to the advertiser. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-15


Slide20 : ç TABLE 19.5 Comparison of Direct Marketing and General Advertising Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-16 DIRECT MARKETING GENERAL ADVERTISING Selling to individuals. Customers are Mass selling. Buyers identified as broad often identifiable by name, address, and groups sharing common demographic and purchase behaviour. psychographic characteristics. Products have added value or service. Distribution is an important product benefit. Product benefits do not always include convenient distribution channels. The medium is the marketplace. The retail outlet is the marketplace. Marketer controls product until delivery. Marketer may lose control as product enters distribution channel. Advertising used to motivate an Advertising used for cumulative effect immediate order or inquiry. over time to build image, awareness, loyalty, or benefit recall. Purchase action is deferred. Repetition is used in ad. Repetition is used over time. Consumers feel high perceived risk – Consumers feel less risk – have direct product brought unseen. Recourse is contact with the product and direct distant. recourse. Source: Reprinted from Bob Stone, Successful Direct Marketing Methods, 5th ed. (Lincolnwood, IL: NTC Publishing Group, 1994). Used with permission of NTC/Contemporary Publishing Group, Inc.


Slide21 : ç Celebrity Marketing Celebrity Marketing Having celebrities lend their name and influence to the promotion of a product. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-17


Slide22 : ç Role Model Marketing Role Model Marketing Marketing technique that associates a product with the positive perception of a type of individual or role. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-18


Slide23 : ç Point-of-Purchase Advertising Point-of-Purchase Advertising Displays and demonstrations that seek to promote the product at a time and place closely associated with the actual decision to buy. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-19


Slide24 : ç Specialty Advertising Specialty Advertising Sales Promotion medium that uses useful articles to carry the advertiser’s name, address, and advertising message. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-20


Slide25 : ç Loyalty Program Loyalty Program A program that gives rewards, such as points or free air miles, with each purchase in order to stimulate repeat business. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-21


Slide26 : ç Trade Show Trade Show An organized exhibition of products based on a central theme. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-22


Slide27 : ç Public Relations Public Relations The component of marketing communications that focuses on fostering goodwill between a company and its various publics. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-23


Slide28 : ç Publicity Publicity Normally unpaid communication that disseminates positive information about company activities and products. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-24


Slide29 : ç Categories of Personal Selling Categories of Personal Selling Order Processing Creative Selling Missionary Selling Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-25


Slide30 : ç TABLE 19.6 Factors Affecting the Importance of Personal Selling in the Promotional Mix Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-26 PERSONAL SELLING IS LIKELY ADVERTISING IS LIKELY TO TO BE MORE IMPORTANT WHEN BE MORE IMPORTANT WHEN Consumer is geographically concentrated, geographically dispersed, relatively small in number relatively large in number Product is expensive, technically inexpensive, complex, custom-made, simple to understand, requires special handling, standardized, requires frequently involves trade-ins no special handling, requires no trade-ins Price is relatively high relatively low Channels are relatively short relatively long


Slide31 : ç Order Processing Order Processing Selling at the wholesale and retail levels; involves identifying customer needs, pointing out these needs to the customer, and completing the order. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-27


Slide32 : ç Creative Selling Creative Selling Selling that involves making the buyer see the worth of the item. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-28


Slide33 : ç Missionary Selling Missionary Selling Selling that emphasizes selling the firm’s goodwill and providing customers with technical or operational assistance. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-29


Slide34 : ç The Sales Process The Sales Process 1. Prospecting and Qualifying 2. Approach 3. Presentation 4. Demonstration 5. Handling Objections 6. Closing 7. Follow-up Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-30


Slide35 : ç Prospecting and Qualifying Prospecting and Qualifying Prospecting Identifying potential customers. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-31 Qualifying Determining that the prospect is really a potential customer.


Slide36 : ç Approach Approach The initial contact between the salesperson and the prospective customer. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-32


Slide37 : ç Presentation Presentation The act of giving the sales message to a prospective customer. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-33


Slide38 : ç Demonstration Demonstration Actions which supplement, support, and reinforce what the salesperson has told the prospect. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-34


Slide39 : ç Objection Objection Reveals a customer’s interest in a product and can be used as a cue to provide additional information. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-35


Slide40 : ç Closing and Follow-up Closing and Follow-up Closing The act of asking the prospect for an order. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-36 Follow-up The post-sales activities that often determine whether a person will become a repeat customer.


Slide41 : ç Sales Management Sales Management Securing, maintaining, motivating, supervising, evaluating, and controlling the field sales force. Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-37


Slide42 : ç Sales Management — Seven Basic Managerial Functions Sales Management - Seven Basic Managerial Functions 1. Recruitment and Selection 2. Training 3. Organization 4. Supervision 5. Motivation 6. Compensation 7. Evaluation and Control Copyright © 2000 by Harcourt Canada Ltd. All rights reserved. Slide 19-38