Advertising communicates a message to a targeted audience and generates feedback in the form of a sale or other action taken by a consumer.
Summarize the different components that comprise an advertising campaign
- Through advertising, a marketer hopes to communicate a message to a targeted consumer group via means including print, electronic (radio and television), the Internet and mobile phones.
- The media plan, developed simultaneously with the creative strategy, schedules how and when consumers see advertisements.
- Effective advertising illustrates the product ‘s value and gives consumers a reason to take action and/or buy.
- A target audience is defined through information gathered from focus groups, demographics and by understanding how certain consumer groups think.
- psycho-graphics: understanding how a certain group thinks.
- Brand Character Statement: sets the tone of an advertisement and defines what the targeted consumer group should do or feel when they are exposed to it.
- Image: an attitude or lifestyle advertisers attempt to link to a product.
Advertising – How Marketers Communicate to Consumers
When a company pays to have a message that defines its goods or services delivered or communicated to as many people as possible, they are said to be advertising. Effective advertising illustrates the product’s value and gives consumers a reason to take action and/or buy. There are a variety of ways to promote a product. These methods are collectively referred to as Marketing Communications (MarCom) Matrix, and include direct marketing, public relations/publicity, new media, and advertising.
Through advertising, a marketer hopes to communicate a message to a targeted consumer group via means including print, electronic (radio and television), the Internet and mobile phones. Advertising generates feedback that is analyzed and measured. Good feedback typically translates into money spent on the product while bad feedback prompts the marketing source to reevaluate its marketing plan.
The Anatomy of an Advertising Campaign
Developing a brand character statement sets the tone of the campaign and defines what the targeted consumer group should do or feel when they are exposed to it. The strategy addresses the message that will be communicated while creative tactics dictate how the strategy is actually implemented.
A target group or audience is defined through information gathered from focus groups, demographics and by psycho-graphics, i.e. statistics illustrating how a certain group thinks and ultimately buys.
The product’s pros and cons are identified so that benefits are sold. How the product differs from its competition or its Unique Selling Position (USP) is also established. Facts, statistics, consumer images and scenarios are used to corroborate a campaign’s premise. Terms like “the best,” “new” and “traditional” position the product within the marketplace.
A campaign must fit the image of the marketer to ensure that its public perception remains intact. It must offer a rationale or “reason why” a product is able to deliver on its claim. Its “aperture,” or the proper timing and placement of an ad, can maximize a campaign’s success.
Developing a Media Plan
The media plan is an integral part of the advertising campaign and is developed simultaneously with the creative strategy. The standard media plan has four stages:
- Stating objectives like reach or the number of different persons exposed, frequency of times the consumer is exposed to a message, and timing of media assertions over the course of the campaign.
- Assessing how a particular message and target audience relates to different types of media by analyzing the research findings provided by the media type.
- Implementation of media choices dictated by available budget or media types most likely to deliver the best results. The placement of advertisements along with their size and positioning are based upon data associated with the targeted consumer group.
- The media budget is included in the actual advertising budget.
The Advertising Business and New Media
Advertising is often the only method of communication businesses use to speak to prospective consumers. Advertisements must reflect prevailing ideas by tapping into the social, cultural and moral pressures. Emerging advertising agencies often structure their business model to society’s ever changing ideals. Current technology is forcing advertisers to move away from antiquated structure and practices. The growth of interactivity and open sourcing has placed power in the hands of the consumer, giving them control over what they want to see and when they want to see it.
Advertising’s value is based upon how often it is viewed, used or shared. If the message is reaching more people, it is achieving the desired results. New media accelerates the process. No longer is a product limited by the scope and time-frame of a conventional advertising campaign. If an advertisement is interesting, entertaining or helpful, the message goes “viral” via social-networking websites and blogs. The once passive consumer has become a part of the process; an active advertising channel who impacts brands and how a product is perceived.
Marketing impacts personal selling and improves the selling environment by increasing exposure to potential customers.
Discuss the different elements of personal selling
- A successful personal seller must utilize aggressive sales tactics that influence and control the process, presenting it as a mutually beneficial, interpersonal exchange of goods or services for equitable value.
- To be successful in personal sales, the salesperson must understand how to sell to the needs of a customer.
- Selling is defined as an interaction whereby an item of value is exchanged for a different item, which is usually money.
- Prospecting: This involves finding and identifying buyers who are most likely to buy the product or service.
- Gaining Commitment: This involves closing the deal or making the sale.
Selling, the art of persuasion, is defined as a one-on-one interaction whereby a tangible or intangible item of value is exchanged for a different item, usually with money in an amount of equal or greater value of the item being sold. Selling is part of the promotional mix. It is systematic, repetitive, and measurable. When properly analyzed, sales data will offer objections to overcome and help to predict sales patterns and projections.
Understanding Customer Needs
To be successful in personal sales, the salesperson must understand how to sell to the needs of a customer. Psychologist Abraham Maslow created a Hierarchy of Needs that offers useful information for personal selling. Maslow outlined five levels of need and as each level is fulfilled, a person progresses to the next one. At the most basic level, physiological and safety needs must be met with food, clothing, and shelter, so a product that meets these basic needs has potential to sell well. However, the basic human need to consume food and liquids should not be confused with wanting a hamburger and a soft drink.
Mid-level hierarchy needs are social in nature and include self-respect, self-esteem, and the esteem of others. They create a powerful internal motivation and drive demand for status-oriented products. Those selling luxury goods cater to esteem needs. When customers flaunt wealth by buying expensive products it is referred to as conspicuous consumption or luxury badging.
The Mechanics of Personal Selling
Sales capturing is defined as bringing in and closing deals. A successful personal seller must utilize aggressive sales technics that influence and control the process, presenting it as a mutually beneficial, interpersonal exchange of goods or services for equitable value.
At the core of personal selling is the human exchange between buyer and seller. The interaction is based upon fulfilling a need or desire with the product or service that is offered and paid for. A systematic approach to successful personal selling includes good prospecting, the salesperson’s in-depth knowledge of the product, and the qualification of potential buyers. Good prospects are predisposed and well-suited to the product or service being offered, allowing the salesperson to facilitate the exchange of value and to guide them through the process with a minimum amount of objections or resistance.
The personal selling process has eight steps: The first is prospecting, which involves finding and identifying buyers who are most likely to buy the product or service. There are numerous ways to qualify leads: cold calls by telephone, email, through social networking, or personal referrals. The word “cold” refers to fact that the person receiving the call is not expecting it or has not specifically asked to be contacted by a sales person.
Pre-approach is the next step used to prepare for the presentation. It consists of customer research and goal planning. The next step is the approach or initial meeting between the salesperson and the customer. Following the approach is the need assessment step when the customer’s need for the product is evaluated by the salesperson. During this step, questions are asked to identify the current situation, the source and impact of any problems, the benefits of the product as part of the solution, and the buyer’s level of interest.
Once need is established, the salesperson is ready to present or demonstrate the product. This step is designed to grab the buyer’s attention, ignite interest, create desire, and inspire action (AIDA) by showing the product’s advantages and benefits. At this point, customer objections involving price, value, adequacy, the commitment to buy, or other issues are addressed. Successful salespeople anticipate objections and respond to them respectfully before advancing to gaining commitment, which involves closing the deal or making the sale.
Salespeople use different types of methods to close deals such as the alternative close, the assumptive close, the summary close, or the special-offer close. The last and most crucial step in the process is follow up to ensure customer satisfaction and help establish a relationship.
Other sales strategies include direct sales conducted outside of a retail location, guaranteed, needs-based, persuasive, hard, heart, relationship, target account, priced-based, and solution selling.
The Relationship between Sales and Marketing
Marketing impacts personal selling and improves the selling environment by increasing exposure to potential customers. Marketing campaigns seek to drive potential customers towards sales people.
Though quite different in nature, marketing and sales departments handle similar concepts. It is essential for them to maintain a good working relationship based upon clear and concise communication and interaction.
Sales Promotion stimulates market demand, product availability and coordinates public selling, advertising and public relations.
Explain how sales promotion is used in the promotional mix
- Sales Promotions – increase the perceived value of a product and are usually offered for a limited amount of time.
- Consumer Sales Promotions – target the end user or the customer such as coupons or point of purchase displays.
- Trade Sales Promotions – target organizational customers such as dealers, distribution channels or sales teams that stimulate immediate sales such as sales incentive contests or dealer wholesale price discounts.
- Retail Sales Promotions – are devised and initiated by in-store management such as “buy one get one free” programs or “kids eat free” nights.
- Promotional Mix – a marketing plan’s seven components consisting of sales promotion, advertising, personal selling, direct marketing, publicity/ public relations, corporate image and exhibition.
- loss leader: a sales promotion device that offers a temporary reduction on a popular product’s price to stimulate sales on other products being offered.
- Aisle interrupters: product signs that jut into the aisle from the shelf, a point of purchase sales promotion device
- sales promotion device: A type of offer, in the form of a rebate, coupon or price deal that stimulates product sales or prompts a customer to take action
- sales promotion: media and non-media marketing communication employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability
- Promotion: dissemination of information about a product, product line, brand, or company
The primary objective of a sales promotion, a catch all marketing function, is to stimulate market demand, improve product availability and to coordinate public selling, advertising and public relations. A successful sales promotion is meant to prompt a targeted consumer group to show interest in the product or service, try it or ideally buy it. They are delivered to targeted groups via media and non-media marketing communications during a pre-determined, limited amount of time. It is a component of a marketing plan’s “promotional mix” that usually includes advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibition. Sales promotion cannot compensate for a poor product, a declining sales trend, ineffective advertising or can it create strong brand loyalty.
There are two types of sales promotions; consumer and trade. A consumer sales promotion targets the customer while a trade sales promotion focuses on organizational customers that can stimulate immediate sales.
Contests, coupons, giveaways, loss leaders, point of purchase displays, premiums, prizes, product samples and rebates are sales promotion devices. They are delivered via mixed forms of media such as print, digital, electronic (radio and television) and online in various forms of new media.
Sales Promotions Have Purpose
Sales promotions launch new products, especially ones with perceived high risk, they create repeat customer purchase patterns, move large amounts of products quickly, counter the strategy of a competitor and can move marginal customers to make a choice.
Consumer Sales Promotion Techniques
Consumers attract the greatest number of sales promotion devices. Commonplace techniques include price deals that offer a temporary price reduction while cents-off deals offer a brand at a lower price, usual as a percentage marked on the package. Price pack deals offer a certain percentage more of the product for the same price while a loss leader offers a temporary reduction on a popular product’s price in to stimulate sales for other products offered. Reward programs involve collecting points, miles, or credits from purchases and then redeeming them for rewards. The purchase of a product can also enter a buyer in a contests, sweepstakes, or online games.
One of the most common sales promotion techniques involves coupons. They are used to lower prices, for discounts, free goods and value added giveaways. They are dispensed as neckers placed around the ‘neck’ of a bottle, on-shelf meaning available where product is displayed, as a free-standing insert (FSI) or booklet that is delivered inside the local newspaper, at checkout, on-line, and displayed and shown on mobile phones for redemption. Now, by tweeting or posting sale promotions, the circle of communication is wider than ever. Even “cashback” or rebate offers can be redeemed on line instead of through the mail.
Point-of-sale displays are in-store sales promotion techniques. Aisle interrupters or signs jut into the aisle from the shelf, hanging signs called danglers sway with consumer traffic, product dump bins stimulate curiosity, glorifiers elevate products for better visibility, wobblersigns draw attention and lipstickboards convey product information written in crayon.
Other in-store sales promotions include pull-out fact sheets, special lighting and animated displays powered by solar energy and policy promotions such as “ladies nights” or “kids eat free” offers.
Trade Sales Promotion Techniques
Wholesalers, retailers and other organizational groups are offered a wide array of sales promotion devices such as trade allowances or short term incentives to encourage retailer to stock up on a product, dealer loaders incentivizing product purchase and display, trade contests for selling the most product, point-of-purchase displays to create impulse buying and spiffs or bonus commissions on certain products and trade or functional discounts paid to distribution channel members for conducting sales and special events.
Sales Promotion Techniques at the Retail
Retailer sales promotion devices are regularly rolled out for new marketing initiatives. For example “buy one, get one free, three for two, buy quantity and receive a lower price or percentage discounts on specific days of the week.
Public relations is the management of a message between an individual or organization and the public.
Describe the different aspects of public relations and its primary functions within the promotional mix
- Public relations is communicated through the media in the form of publicity events, speaking opportunities, press releases including video and audio news releases, newsletters, blogs, social media, press kits, and outbound communication to members of the press.
- The ideal end result of public relations is for the information to serve both the source and the public interest.
- All audiences or publics are stakeholders, groups or individuals that can affect or be affected by the actions of the business as a whole, but not all stakeholders are audiences.
- spin: an effect that colors the truth by selectively presenting facts that support a desired position and can sway public opinion.
- Messaging: to construct a consistent and specific story around a P.R. event or project.
- Public: includes people who look, think, and act the same as well as those who do not.
Public relations is the management of a message between an individual or organization and the public that can be contracted on an hourly, monthly, annual, or “in-house” fee basis. Its primary purpose is to persuade stakeholders to adopt a certain point of view about a project or product. Simply put, public relations manages communication between an organization and the public. It is communicated through the media in the form of publicity events, speaking opportunities, press releases including video and audio news releases, newsletters, blogs, social media, press kits, and outbound communication to members of the press. The media is not paid to publish the information.
There are four core elements to public relations:
- Retain and create goodwill
- First do good, then take credit for it
- Identify and effectively communicate varying points of view and needs to well-defined targets
- It is a planned activity
Who Is the Public?
The public is defined as the totality of a group. The public includes people who look, think, and act the same as well as those who do not. When planning a public relations campaign the marketer should consider who would be most and least likely to interact with the message and what the dialogue would sound like.
What Public Relations Can Do
The response to public relations activities should lend itself to analysis and trending, to predict consequences, to guide executive decisions, and used to trigger planned programs of action. The ideal end results of public relations is for the information to serve both the source and the public interest.
Modern Public Relations
The delivery of public relations messages is shifting from traditional media channels to online media such as social media releases, search engine optimization, content publishing, blogs, microblogs, podcasts, and video. Social media has increased the speed of breaking news and created greater time constraints on response times to current events.
An asymmetrical public relations model allows feedback to flow from the public back to the originating organization, using it as an attempt to persuade the public to change. A symmetrical public relations model means that the organization takes the interests of the public into careful consideration, seeking a balance between the interest of the organization and the public.
The world is in a constant state of change. Communication with an internal as well as external public is essential and has become commonplace with the explosion of one-to-one communication through new technology. Good and bad news travels fast and information goes “viral” with the click of a mouse or tap of a screen.
Effective Public Relations
Depending on the message, some public relations must harmonize with state laws and be reviewed by an attorney to ensure compliance. It must follow a plan of action and aim at goals that are clearly defined. It must be clear to be useful. Its administrators must understand their role and responsibilities. It should build strong relationships and partnerships. Its effectiveness should be measurable with established benchmarks to make sure that the program has achieved the desired goal or objective.
The public relations program’s target audience must be identified so that the message can be tailored to suit them. Sometimes the interests of differing audiences necessitate the creation of several distinct but complementary messages. All audiences or publics are stakeholders, groups or individuals that can affect or be affected by the actions of the business as a whole, but not all stakeholders are audiences.
Messaging constructs a consistent and specific story around a P.R. event or project. It eliminates contradictory or confusing information that will instill doubt in a purchasing choice or other decisions that have an impact on the marketer. Brands aim to have the same problem statement, industry viewpoint, or brand perception shared across sources and mediums.
Spin polishes and colors the truth by selectively presenting facts that support a desired position and can sway public opinion. It is sometimes seen as a derogatory but is commonly used in public relations campaigns.
Negative public relations, also called dark public relations (DPR), is a process of destroying or discrediting. Dirty secrets, misleading facts, or legitimate claims figure heavily into the equation. Its use can be moral and ethical when the information protects or informs the public of danger.
Business Disciplines and Public Relations
- Financial public relations – communicating financial results and business strategy
- Consumer/lifestyle public relations – gaining publicity for a particular product or service
- Crisis Communications – responding in a crisis
- Internal Communications – communicating within the company itself
- Government Relations – engaging government departments to influence public policy
Social media as a marketing tool is versatile, far-reaching, fast, inexpensive, fosters brand awareness, and can improve customer service.
Illustrate how social media can be used in the promotional mix
- As a marketing tool, social media is distinct from industrial or traditional media and is versatile, far-reaching, fast, relatively inexpensive, and fosters brand awareness and improves customer service.
- Social media used as a marketing tool provides useful and valuable measurable data on trends, consumer interaction, feedback, public opinion, brand activity, and customer buying habits.
- The Internet has overtaken television as the largest advertising market of all as banner and pop-up ads showcase a vast array of products and services.
- Social Bookmarking: Enables users to add, annotate, edit, and share bookmarked Web documents for future use.
- Backlinks: Are clickable and bring traffic back to a company’s website.
- Engagement: Means that both customers and stakeholders are participants rather than passive viewers.
Social media enables individuals and communities to co-create, share, and modify content in an interactive, Internet-based environment. Social media marketing refers to the process of gaining website traffic through social networking sites. It is driven by word of mouth. Results come from earned, as opposed to paid media. As a marketing tool, social media is distinct from industrial or traditional media, is versatile, far-reaching, fast, relatively inexpensive, fosters brand awareness, and improves customer service.
Different Types of Social Media
Limited only by the imaginations of Internet Web designers, social media offers marketing vehicles, such as magazines, forums or discussion sites, weblogs, social blogs, microblogs, instant messaging, email, crowdsourcing distributed to a specific group of people, photographs or pictures, articles, video, and wikis or collaborated websites allowing additions, modifications, and deletions. Others include social networks, subscribed episodic audio, video, PDF or ePub podcasts downloaded or streamed, online telephonic services, and social bookmarking services that enable users to add, annotate, edit, and share bookmarked Web documents for future use and more.
Social Media Functionality
There are six ways social media functions: a). collaborative–Wikipedia, blogs, and microblogs, such as Twitter; b) content communities (e.g.,YouTube); c) social networking sites (e.g., Facebook); d) virtual game worlds (e.g.,World of Warcraft; e) virtual social worlds (e.g.,Second Life); and f. voice-over IP or online telephone services. All can be consolidated into one profile via aggregation platforms. All can be woven into a marketing plan rich with sales promotions, public relations outlets, advertising, and other elements of the “promotional mix.”
Mobile social media on a wide array of devices, such as tablets, iPods, phones, and other new products, extend and expedite marketing reach.
Search Engine and Keyword Optimization
Search engine ranking, content quality, or the relevancy to search terms, backlinks and links have emerged as effective social media marketing tools.
Backlinks are clickable and bring traffic back to a company’s website. They impact ranking within the search results if positioned properly. In addition, the anchor text used within a link, where it appears on a page and the other content on the page dictates its effectiveness.
The words used in website copy give exposure if they match common search words used in queries. A good social media marketer researches the correct words that people type into search engines so it behooves a business to embed those words in their websites. If a narrower focus is used when selecting keywords, competition within the search results drops dramatically so research using search phrase competition results, and search volume is the foundation of successful Internet marketing.
Strategic and Focused
Social media used as a marketing tool provides useful and valuable measureable data on trends, consumer interaction, feedback, public opinion, brand activity, and customer buying habits. Its reach is precise and easily aimed at a targeted audience. Automated information technologies, that are indigenous to social media platforms, optimize the production of goods and the delivery of services.
In the context of social media, “engagement” means that both customers and stakeholders are participants rather than passive viewers. Each participating customer becomes part of the marketing process, as other customers read comments or reviews.
Social Media Impacts Traditional Advertising
The Internet has overtaken television as the largest advertising market, as banner and pop-up ads showcase a vast array of products and services. QR codes, facilitated by mobile social media, online and in tandem with print advertising deliver extensive product and service information with a simple scan of a cell phone.
Internet and social media leaks frequently impact traditional advertising as ads often appear online earlier than they are scheduled to premiere and go viral. They are seen more quickly and by more users without the time delays of traditional advertising methods.
Blogging gets a product to the public within minutes and without any technical, production, or print requirements. Most Web space hosts provide a free blogging platform, such as WordPress, for customer use. They are picked up by search engines, are indexed quickly, are interactive, and allow for online dialogue. Blogs are automatically updated with each post and are accessed through a feed. Functionality is expandable through a wide array of plugins.
Social Media and Confidential Information
The speed at which information spreads on the Internet has a downside. In 2010, the top three incidents faced by organizations involved sharing too much information in public forums, loss or exposure of confidential information, and an increased exposure to litigation. Legal damage is capable of devastating a business.
Direct marketing goes direct to customers via telephone, mail, fax, TV, radio, online, magazines, newspapers or face-to-face.
Distinguish direct marketing tactics from mass marketing tactics
- Direct marketing targets individual members of defined consumer groups.
- The message is based upon a clear “call to action” delivered directly to predisposed consumers.
- Direct marketing provides valuable and reliable consumer and sales data, as well as clear, quantifiable success metrics for analysis.
- QR Code: a quick response bar code scanned via mobile phone
- community campaign: the use of flyers and brochures that are delivered to homes.
Direct marketing allows businesses and nonprofit organizations to advertise and market directly to customers via a variety of print and electronic mediums. Direct marketing campaigns focus on the consumer, statistical data generated via outreach and the accountability of the marketer. The message is based upon a “call to action” delivered directly to predisposed consumers.
Direct Marketing Popularity
In 2010, direct marketing accounted for 8.3% of the total U.S. gross domestic product. The industry employs approximately 1.4 million people directly and another 8.4 million in related jobs and businesses. Commercial and nonprofit businesses spent approximately $150 billion on marketing, accounting for more than half of all U.S. advertising expenditures for the year.
Characteristics of Direct Marketing
Direct marketing targets individual members of defined consumer groups. It distinguishes itself from mass marketing by virtue of the distance between the manufacturer and the ultimate end user, seeking to deliver a specific “call to action” to consumers. Reduced mail cost and the elimination of “brick and mortar” retail stores have helped to decrease the cost of direct marketing campaigns. The practice also attempts to establish a personal relationship with the customer because of direct purchases and customer service on a “first name” basis. Direct marketing has cleared the way for a number of competitors to enter markets on a global level and has increased product offerings to fill niche markets.
Toll-free 1-800 numbers, loyalty marketing programs, magazine subscription cards, mail order catalogues, and credit card rewards programs laid the foundation for direct marketing’s success. In addition, improvements in traditional delivery techniques and the introduction of new technologies have accelerated this growth. Customers can now buy products without contact from a salesperson. Product information is delivered directly and impersonally. Questions can be answered through toll-free numbers, FAQ pages on websites or via email.
Types of Direct Marketing Tools
There are many different direct marketing tools, including direct mail, telemarketing, couponing, direct response TV and radio, face-to-face selling, community campaigns, and grassroots campaigns.
The Internet provides extraordinary reach. Marketers can use email, along with interactive static banner ads, pop ups, video and floating unit ads. Browser cookie analysis tag special interests and push appropriate products or services on personal websites. Marketers use search engine optimization and pay for prominent placement on query result lists to bring their products to a customer’s attention. Social media reaches out to targeted consumer groups and showcases compatible goods and services.
Mobile technology direct marketing includes SMS-short message service, MMS-multi-media message service, QR Codes, applications, push notifications sent directly to users, and location based messages.
The Benefits and Shortcomings of Direct Marketing Techniques
Direct marketing response is track-able and measurable regardless of the delivery medium. It provides valuable and reliable consumer and sales data, as well as clear, quantifiable success metrics for analysis.
Direct marketing places control in the hands of the consumer, making a poorly written message strategy or improperly compiled demographic database problematic. “Opt-out” lists, variable message printing and well defined demographics help to counteract these problems.