Types of Advertising

Regardless of the media used, advertisements fall into one of several categories. Brand Advertising promotes a specific brand, such as Kodak126 film, Head & shoulders shampoo, & Nike Air Jordan basketball shoes. Advocacy Advertising promotes a particular candidate or viewpoint, as in ads for political candidates at electon time and antidrug commercials. Institutional Advertising promotes a fir’s long-term image, as when AT&T assures customers that it is «the right choice.

Advertising to Specific Markets’

Advertisements also differ in to whom they are directed. That is, advertisement depend on the company’s target market. In consumer markets, local stores usually sponsor retail advertising to encourage consumers to visit the store & buy its products & services. Larger retailers use retail advertising on both a local & national level. Often retail advertising is actually cooperative advertising , with the cost of the advertising shared by the retailer & the manufacturer.

In industrial markets, to communicate with companies that distribute its products, some firms use trade advertising publications. And to reach the professional purchasing agent & managers at firm buying raw material or components, companies use industrial advertising.

Regulation of Advertising

Advertising affects nearly every American. Because it can be used to deceive as well as inform buyers, advertising has increasingly come under regulation. The first regulation of advertising activities came in1914. This act created the Federal Trade Commission to protect competition from unfair trade practices.

Members of the advertising industry also regulate themselves to some degree. Advertising media, including television networks & local stations magazines, & newspapers, decline ads they believe to be false or in poor test. And the National Advertising Review Board investigates complaints against national advertisers. If it finds in favor of the advertiser, chargers are dropped. If it finds in favor of the complaining party, then the advertiser must modify or withdraw its claim.

Personal Selling Promotions

Virtually everyone has engaged in some sort of sales activity. Perhaps you had a lemonade stand or sold candy for the drama club. Or you may have gone on a job interview — selling your abilities & service as an employee to the interviewers company.

Personal selling — the oldest form of selling — is a vital cog in many companies’ promotional efforts. It provides the personal link between seller & buyer. It adds to a firm’s creditability because it provides buyers with someone to interact with & to answer their questions.

Because it involves personal interaction, however, personal selling requires a level of trust between the buyer & the seller. When a buyer fells cheated by the seller, that

trust has been broken & negative attitude towards salespeople in general develops. To counteract this reputation, many companies are emphasizing customer satisfaction & generally striving to improve the effectiveness of whatever personal selling they undertake.

Personal selling is also most expensive form of promotion per contact because presentations are generally made to one or two individuals at time. Personal selling expenses include salespeople’s compensation & their overhead, usually travel, food & lodging. The average cost of sales call has been estimated an approximately $240 & has been increasing rapidly in recent years.

The high cost of personal sales have prompted many companies to set up Telemarketing departments. Telemarketing is the use of the telephone to carry out many of the activities involved in marketing a company’s products. Telemarketing can be used to handle any stage of the personal selling process or to set up appointments for outside sales people.

Types of Personal Selling Situations

Managers of both telemarketing & traditional personal sales people must always consider how personal service are affected by the difference between consumer products & industrial products. Retail selling involves selling a consumer product for the buyer’s own personal or household use. Industrial selling deals with selling products to other businesses, either for manufacturing other products or for resale.

Each of this selling groups situations has its own distinct characteristics. In retail selling the buyer usually comes to the seller. The industrial salesperson almost always goes to the prospect’s place of business. The industrial decision process also may take longer than a retail decision because more money, decision makers, & weighting of alternatives are involved. And industrial buyers are professional purchasing agents who are accustomed to dealing with salespeople. Consumers in retail stores, on the other hand, may be intimidated by salespeople.

Personal Selling Tasks

Improving sales efficiency also requires marketers to consider salespeople’s tasks. Three basic tasks are generally associated with selling: Order processing, creative selling, & missionary selling. Sales jobs usually require salespeople to perform all three tasks to some degree, depending on the product & the company. As you will see, this tasks differ in the skills required, the methods used, & the reasons for using them.

Order Processing . At the most basic level, Order Processing, a salesperson receives an order & sees to the handling & delivery of that order. Route salespeople are often order processors. They call on regular customers to check the customer’s supply of bread, milk, snack foods, or soft drinks. Then, with a customer’s consent, they determine the size of the reorder, fill the order form their trucks, & stack the customer’s shelves.

Creative Selling. When the benefits of the product are not clear, creative selling may persuade buyers. Most industrial products involves creative selling because the buyer has not used the product before or may not be familiar with the features & uses of

a specific brand. Personal selling is also crucial for high priced consumer products, such as homes, where buyers comparison shop. Any new product can benefit from creative selling that differentiates it from other products. Finally, creative selling can help to create a need.

Missionary Selling. A company may also use missionary selling to promote itself & its products. The goal of missionary selling is to promote the company’s long-term image than to make a quick sale.

The Personal Selling Process

Although all three sales tasks are important to an organization using personal selling, perhaps the most complicated is creative selling. It is the creative salesperson who is responsible for most of the steps in the personal selling process described here.

Prospecting & Qualifying. In order to sell, a sales person must first have a potential customer, or prospect. Prospecting is the process of identifying this potential customers. Salespeople find prospects through past company records, customers , friends, relatives, company personnel, & business associates. Prospects must then be qualified to determine whether or not they have the authority to buy & the ability to pay.

Approaching. The first few minutes that a salesperson has contact with a qualified prospect are called the approach. The success of later stages depends on the prospect’s first impression of the salesperson, since this impression affects the salesperson’s creditability. Thus, salespeople need to present a neat, professional appearance & to greet prospects in a strong, confident manner.

Presenting & Demonstrating. Next, the salesperson must present the

promotional message to the prospect. A presentation is the full explanation of the

product, its features, & its uses. It links the product’s benefits to the prospect’s needs. A presentation may or may not include a demonstration of the product.

Handling Objections. No matter what the products, prospects will have some objections . At the very least, prospects will object to a product’s price, hoping to get a discount. Objections show the salesperson that the buyer is interested in the presentation & which parts of the presentation the buyer is insure of or has a problem with. They tell the salesperson what customers feel is important &, essentially, how to sell them.

Closing. The most critical part of the selling process is the close, in which the

sales person asks the prospective customer to buy the product. Successful salespeople, recognize the signs that a customer is ready to buy. Salespeople can ask directly for the sale or they can indirectly imply a close. Questions such as « Could you take delivery Tuesday?» & « Why don’t we start you off with an initial order of ten cases?» are implied closes. Such indirect closes place the burden of rejecting the sale on the prospect, who often will find it hard to say no.

Following Up. The sales process doesn’t end with the close of the sale. Most companies wants customers to come back again. Sales follow-up activities include fast processing of the customer’s orders & on-time delivery. Training in the proper care & usage of the product & speedy service if repairs are needed may also be part of the fallow-up.

Sales Promotions

Sales promotions ( motivators) are a very important factor in the promotional mix because they increase the chances that consumers will try a product. They also enhance recognition for the products. And they can increase the purchase size & amount.

Did you ever here a promotional slogan « buy three & get one free.»

To succeed, however, sales promotions must be convenient & accessible when the decision to purchase occurs.

Types of Sales Promotions

Sales promotions can take a variety of forms. The best known are coupons, point of purchase displays, free samples, trading stamps, premiums, trade shows, trade promotions, & contests & sweepstakes.

Coupons. Any certificate that entitles the bearer to a stated savings off aproduct’s regular price is a coupon. Coupons may be used to encourage customers to try new products, to attract customers away from competitors or to include current customers to buy more of a product. They appear in newspapers & magazines & are often sent through direct mail.

Point-of-Purchase Displays. To grab customer’s attention as they walk through the store, some companies use Point of Purchase Displays . Displays located at the end of the aisles or near the checkout in supermarkets are POP displays. POP displays are always coincide with a sale or the item being displayed. They also make it easier for customers to find a product & easier for manufacturers to eliminate competitors from

consideration. The cost of shelf & display space, however, is becoming more & more expensive.

Free Samples, Trading Stamps, & Premiums. Purchasing incentives such as free samples, trading stamps, & Premiums are used by many manufacturers & retailers. Premiums are gifts, such as pens, pencils, calendars, & coffee mugs, that are given away to consumers in return for buying a specified product. Retailers & wholesalers also receive premiums for carrying some products.

Trade Shows. Periodically, industries sponsor Trade Shows for their members & customers. Trade shows allow companies to rent booths to display & demonstrate their products to customers who have a special interest in the products or who are ready to buy. Trade shows are relatively inexpensive & are very effective, since the buyer comes to the seller already interested in a given type of product.

Contests & Sweepstakes. Customers, distributors, & sales representatives may all be persuaded to increase sales of a product through the use of contest. For example, distributors & sales agents may win a trip to Hawaii for selling the most pillows in the month of March. Although sweepstakes can’t require consumers to buy a product to enter, they may increase sales by stimulating buyers’ interest in a product.

Publicity & Public Relations Promotions

Much to the delight of marketing managers with tight budgets, Publicity Is FREE. Moreover, consumers see publicity as objective & highly believable. Thus, it is a very important part of the promotional mix. However marketers often have a little control over publicity.

Public relations is company-influenced publicity. It attempts to establish a sense of goodwill between the company & its customers through public service announcements that enhance the company’s image. From this topic, so far, you may think that only large companies can afford to seriously promote their goods & services. Although small businesses have fewer resources, cost-effective promotions can improve sales & enable small firms to complete with a much larger firms.

Small Business Advertising

The type of advertising chosen by a small business depends on the market the

firm is trying to reach: Local, National, International.

Local Markets. Advertising is non prime-time slots on local television offers great impact at a cost many small firms can afford. More commonly though, small businesses with a local market use newspaper & radio advertising &, increasingly, direct mail.

National Markets. Many businesses have grown from small to large operations by using direct mail & particularly catalogues. By purchasing mailing lists of other companies’ customers, a small firm can target its mailing, reducing costs. The ability to target an audience also makes specialized magazines attractive to small businesses.

International Markets. Television, radio, & newspapers are seldom viable promotional options in reaching international markets because of both their costs and their limited availability. Most small firms find direct mail & magazine advertising the most effective promotional tools.

Small Business Personal Selling

Like advertising, personal selling strategies used by small businesses depend on their intended market.

Local Markets. Some small firms maintain a sales force to promote & sell their products locally. Other contract with a sales agency — a company that handles the products of several companies — to act on their behalf. Insurance agents who sell insurance for several different companies are sales agencies.

National Markets . Because of a high costs of operating a national sales force,

many companies have established telemarketing staffs. By combining telemarketing with a catalog or other educational product literature, small companies can sell their products nationally & compete against much larger companies.

International Markets. Small companies can’t afford to establish international offices in order to conduct businesses. Even sending sales representatives overseas is expensive. Thus, many small companies have combined telemarketing with direct mail in order to expand internationally. Small businesses often depend on an interesting or unusual sign to attract new customers.

Small Business Sales Promotions

Small companies use the same sales promotion incentives that larger companies use. The difference is that larger firms tend to use more coupons, POP displays, & sales contests. Smaller firms rely on premiums & special sales, since coupons & sales contests are more expensive & difficult to manage.

Small Business Publicity

Publicity is very important to small businesses with local markets. Small firms often have an easier time getting local publicity than do national firms. Readers of local papers like to read about local companies, so local papers like to write about such businesses. But fierce competition for coverage in national & international publications limits the access small businesses have to those markets.

Distributing Goods & Services

In selecting a distribution mix for getting its products to customers, a firm may use any or all of six distribution channels. The first four are aimed at consumers & the last two at industrial customers. Channel 1 involves a direct sale to the consumer. Channel 2 includes a retailer. Channel 3 also includes one wholesaler, while Channel 4 includes an agent or broker before the wholesaler. Distribution strategies include intensive, exclusive, & selective distribution.

Wholesalers act as distribution intermediaries, extending credit & storing, repackaging, & delivering the product to other members of the distribution channel. Full-service, & limited-service, merchant wholesalers differ in the number of distribution functions they offer. Agents & brokers never take legal possession of the product.

Retailing involves direct interaction with the final consumer. The major types of retail stores are department, specialty, bargain, convenience, supermarkets, & hypermarkets. (Like in Moscow.) They differ in terms of size, services, & product type they offer, & product pricing. Some retailing also takes place without stores, through the use of catalogs, vending machines, & video marketing. According to the wheel of retailing, conventional retailers are periodically Displaced by low-priced innovative retailers, who then become more conventional & subject to displacement.

Distribution ultimately depends on physically getting the product to the buyer. Physical distribution includes customer-service operations such as order processing. It also includes warehousing & transportation of products. Warehouses may be public or private & may be used for long-term storage or serve as distribution lefts. Costs of warehousing include inventory control & materials handling.

Truck, plane, railroad, water, & pipeline transportation differ in cost, availability, reliability of delivery, & speed. Air is the fastest but most expensive. Water carriers are the slowest, but least expensive. Most products are moved by truck at some point. Transportation in any form may be supplied by common carriers, freight forwarders, contract carriers, or private carriers.

Developing & Pricing Products

Products are a firm’s reason for being, their features offer benefits to buyers, whose purchases are the source of business profits. In developing products, marketers must take into account whether their market is individual consumers or other firms. Marketers must also recognize that buyers will pay less for & worry less about the exact nature of convenience goods than about shopping & specialty goods. In industrial markets, expensive items are generally less expensive & more rapidly consumed than are capital items.

The seven stages of product development are development the ideas, screening, concept testing, business analysis, prototype development, test marketing, & commercialization. Very few ideas for new products survive to the commercialization stage.

When new products are launched, they have a life cycle that begins with their introduction & progresses through stages of growth, maturity, & decline Revenues rise through the early growth period; sales rise through the late maturity period. In terms of the growth -share matrix, this progression appears as a product moves from questions mark to star to cash cow to dog.

Each product is given a visible identity by its brand & the way it is packaged & labeled. National, licensed & private brands are developed to create brand loyalty. Packaging provides an attractive container & advertises the product. The label informs the consumer of the package contents. The pricing of the product will determine its business success, depending on the business objectives that are being sought. Profit maximization, market share, & other business objectives may be relevant to the pricing decision. Economic theory, cost-oriented pricing, & break-even analysis are tan used as tools in determine prices.

Pricing also involves choices of a basic pricing strategy can be used for new products. Existing products may be priced at, above, or below prevailing prices for similar products, depending on the other elements in the marketing mix. Within a firm’s pricing strategies, managers set prices using tactics such as price lining, psychological pricing, & discounting.

PLAN

Promotional Objectives, Strategies, & Tools

Promotional Objectives

Promotional Strategies

Picking the Right Tools for the Promotional Mix

Advertising Promotions

Advertising Strategies

Advertising Media

Types Advertising

Advertising to Specific Markets

Regulation of Advertising

Personal Selling Promotions

Types of Personal Selling Situations

Personal Selling Tasks

The Personal Selling Process

Sales Promotions

Types of Sales Promotions

Publicity & Public Relations Promotions

Small-Business Advertising

Small-Business Personal Selling

Small-Business Sales Promotions

Small-Business Publicity

Distributing Goods & Services

Developing & Pricing Products

MANAGING MARKETING

(Promoting Goods & Services)

To Dr. Zavadovskiy

by Goubanova Galina

Marketing

21may1999

BIBLIOGRAPHY

Principles of Marketing Philip Kotler

Gary Armstrong

2.The practice of Marketing Kenneth E. Runyon

Business Ricky W. Griffin

Marketing Patrick E. Murphy

Ben M. Enis

Marketing Management ( A Strategic Approach)

Harper W. Boyd, Jr

Orville C. Walker,Jr

Учебная работа. Маркетинг № 111