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BUSI 2208 (16)
Irfan Butt (11)

Chapter 16.docx

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BUSI 2208
Irfan Butt

Chapter 16 – Advertising, sales Promotions, and Personal Selling AIDA Model (Attention, Interest, Desire, Action) – Attention leads to interest, which leads to desire, which leads to action. At each stage the consumer makes judgements about whether to take the next step in the process. Consumers have 3 types of responses so the AIDA model is also known as the “Think, Feel, Do” model.  Attention –Even the best marketing communication can be wasted if the sender doesn’t gain the attention of the consumer first.  Interest – Once the consumer is aware that the product exists, communication must work to increase their interest level. Must be convinced it’s a product worth investigating.  Desire – After interest of target market has been piqued, the goal of subsequent messages should move consumers from “I Like It” to “I Want it”  Action – The ultimate goal of any IMC is to drive the receiver to action. If the communication caught there attention, piqued interest and created the desire for a satisfied need, consumers will often purchase The Lagged Effect - Sometimes consumers don’t act immediately after receiving a marketing communication because of the lagged effect, a delayed response to a marketing communication. Advertising Objectives – Advertising is a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future.  Different from other forms of promotion. Unlike PR its a paid communication, advertising must also be carried by some form of medium and legally the source of the message must be known  All advertising campaign aim to achieve certain objectives: to inform, persuade, and remind customers. Informative Advertising – Communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase  Important in the early stages of the PLC. Persuasive Advertising –Communication used to motivate consumers to take action.  Generally occurs during the growth and early maturity stages of the PLC, when competition is most intense and attempts to accelerate the markets acceptance and adoption of the product. Reminder Advertisement – Communication used to remind consumers of a product or to promt repurchases, especially for products that have gained,market acceptance and are in the maturity stage of the PLC  Top-of-Mind awareness – A prominent place in peoples memories that trigger a response with them having to put in any thought Focus of Advertisement – many companies consider the stages in AIDA model and will aim adds on moving consumers through specific stages in AIDA.  Product Focussed – Used to inform, persuade or remind consumers about a specific product  Institutional Advertisements – Used to inform, persuade or remind consumers about issues related to places, politics, an industry, or a particular corporation.  Public Service Announcements – Advertisement that focuses on public welfare and generally is sponsored by non-profit institutions, civic groups, religious organizations or political groups  Social Marketing – The application of marketing principals to social issue to bring about attitudinal and behavioural change amongst the general public or a specific population segment. Legal and Ethical Issues in Advertising – IMC brings together many diverse forms of communications under one umbrella. Each form of communication is often governed and regulated separately refer to 16.2 for Agencies that regulate Advertising  Puffery – The legal exaggeration of praise, stopping just short of deception, lavished on a product. In Canada, consumers are viewed as rational and capable of evaluating advertising claims, in the EU however puffery is considered deception and is prohibited  Stealth Marketing – A strategy to attract consumers using promotional tactics that deliver a sales message in unconventional ways, often without the target audience knowing that message has a selling motivation. Can take many different forms  Viral Marketing – A marketing phenomenon that encourages people to pass along a marketing message to other potential consumers. Sales Promotions – Special incentives or excitement building programs that encourage the purchase of a product or service, such as coupons, rebates.(Refer to 16.3 for advantage/disadvantages)  Many sales promotions like samples and POP displays attempt to build short term sales where loyalty programs and contests are components of CRM programs designed to build loyalty Coupon – Provides a stated discount to consumers on the final selling price of a specific item; the retailer is responsible for issuing the discount Deal – A type of short-term price reduction that can take several forms, such as “featured prices”, a price lower than original or “Buy one get one free”. Can involve special financing arrangement such as no interest or extended repayment terms Premiums- Offers an item for free or at bargain price to reward some type of behaviour, such as buying, sampling or testing. Build goodwill amongst potential consumers. Contests – A brand-sponsored competition that requires some form of skill or effort. Must always be a skill component, as an example they have skill testing questions etc. Sweepstakes- A form of sales promotion that offers prizes based on a chance of drawing of an entrants name. No skill or effort required just purchase or receipt of ticket. Sampling- offers potential consumers the opportunity to try a product before they buy it. Loyalty Programs- Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time Point of Purchase (POP) Displays- A merchandise display located at the point of purchase, such as at the checkout counter of a grocery store. Rebate – a consumer discount in which a portion of the purchase is returned to the consumer in cash; the manufacturer is responsible for distributing rebates. Product Placement – Inclusion of a product in non-traditional situations, such as in a scene of a movie or tv show. TradechannelsSalesPromotions – Far more money is spent on trade channel sales promotions. Trade channel promotions help convince retailers and wholesalers to stock a new brand, give it eye level shelf space, and promote it is their flyers or advertisements. Discounts and Allowances – Effective incentives used to maintain or increase inventory levels in the distribution channel. Manufacturers offer other intermediaries discount incentives during specific time periods or for case amounts etc. Co-operative Advertisement – Helps compensate trade channel members for money they spend promoting products and encourages them to feature products more often. Generally manufacturers will pay 50% of the cost of advertising up to a specific limit. Sales force Training- Retailers have contact with the ultimate consumer and are often responsible fo
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