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Outdoor. Outdoor advertising - billboards, signs, & advertising buses, taxis, & subways - makes up a little more than 1 % of all advertising. These advertisements are relatively inexpensive, they face little competition for customers’ attention, & they are subject to high repeat exposure. Unfortunately, companies have little control over who will see their advertisement.
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 a product’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
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