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Chapter 15

ADM2320 Chapter 15

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Marzena Cedzynski

Chapter 15 Advertising, Sales Promotion, And Personal Selling Advertising The AIDA Model  AIDA Model: A common model of the series of mental stages through which consumers move as a result of marketing communications: awareness leads to interest, which leads to desire, which leads to action. (Also known as the “think, feel, do” model.) Awareness  Brand awareness refers to a potential customer’s ability to recognize, or recall that the brand name is a particular type of retailer g/s. It is the strength of the link between the brand name and the type of g/s in the minds of customers.  There are a number of awareness metrics: o Aided recall: Occurs when consumers recognize the brand when its name is presented to them. o Top-of-Mind awareness: A prominent place in people’s memories that triggers a response without them having to put any thought into it.  High top-of-mind awareness means that a particular brand will probably be carefully considered when customers decide to shop for that g/s.  Firms build top of mind awareness by having memorable names; repeatedly exposing their name customers through advertising, locations, and sponsorships; and using memorable symbols. Interest  Once the consumer is aware that the company or product exists, communication must work to increase his interest level. Consumers must be persuaded that a product is worth investigating.  Marketers do so by ensuring that the ad’s message includes attributes that are of interest to the target audience. Desire  After the message has gotten the consumers attention, the messages should move the consumer from liking it to wanting it. Action  If the message has caught the consumer’s attention and made them interested enough to consider that product as a means to satisfy a specific desire of theirs, they likely will act on that interest by making a purchase.  This step-by-step process works well with expensive, high involvement products. The consumer decision process is more complex for specialty and shopping products. The Lagged Effect  Lagged effect: a delayed response to a marketing communication campaign.  It generally takes several exposures to an ad before a consumer fully processes its message. Advertising Objectives  First, advertising is not free; someone has paid, with money, trade, or other means to get the message shown.  Second, advertising must be carried by some medium: television, radio, newspaper, the Internet, sidewalk, and so on.  Third, legally the source of the message must be known or knowable.  Fourth, advertising represents a persuasive form of communication, designed to get the consumer to take action.  In order to get your attention, advertisers use creativity and a mix of promotional elements that offer better opportunities to reach their target market.  All advertising campaigns aim to achieve certain objectives: to inform, persuade, and remind customers. Informative Advertising  Informative advertising: communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase.  It helps determine some important early stages of a product’s life cycle particularly when consumers have little information about the type of product.  Retailers use this type of advertising to tell their customers about upcoming sale events or the arrival of new merchandise. Persuasive Advertising  Persuasive advertising: Communication used to motivate consumers to take action.  Generally occurs in the growth and early maturity stages of the PLC, when competition is most intense, and attempts to accelerate the market’s acceptance of the product.  In later stages of PLC, it may be used to reposition an established brand by persuading consumers to change their existing perception of the advertised product.  Firms often use persuasive advertising to convince consumers to take action: switch brands, try a new product, or even continue to buy an advertised product. Reminder Advertising  Reminder advertising: communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle. Focus of Advertisement  Product focused advertisement: used to inform, persuade, and remind consumers about a specific product or service.  Institutional advertisements: Used to inform, persuade, and remind consumers about issues related to places, politics, and industry, or a particular corporation.  Public service announcements (PSA): advertising that focuses on public welfare and generally is sponsored by non-profit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing.  Social marketing: The application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment. Regulatory And Ethical Issues In Advertising  In Canada, the regulation of advertising involves a complex mix of formal laws and informal restrictions designed to protect consumers from deceptive practices.  The primary federal agencies that regulate advertising activities are the Competition Bureau, the Canadian Radio-television and Telecommunications Commission (CRTC), the Food and Drug Act, and Advertising Standards Canada.  In addition to these agencies, marketers must adhere to other pieces of legislation such as Consumer Packaging and Labeling Act and the Tobacco Act.  Puffery: The legal exaggeration of praise, stopping just short of deception, lavished on a product. Stealth Marketing  Stealth marketing: A strategy used to attract consumers that employs promotional tactics that deliver a sales message in unconventional ways, often without the target audience knowing that the message even has a selling intent.  It can take many forms and use many different communication channels.  With new media, it can become extremely difficult for consumers to determine whether they are viewing a promotional message or factual info.  Viral marketing: A marketing phenomenon that encourages people to pass along a marketing message to other potential consumers. Sales Promotion  Sales promotion are special incentives or excitement building programs that encourage consumers to purchase a particular g/s, typically used in conjunction with other advertising or personal selling programs.  In the context of IMC campaigns, advertising generally creates awareness, interest and desire, while the value in sales promotions is in closing the deal.  The tools of any sales promotion can be focused on either channel members, such as wholesalers or retailers, or end user consumers.  When sales promotions are targeted at channel members, the marketer is employing a push strategy; when it targets consumers themselves, it is using a pull strategy. Consumer Sales Promotions  Coupons: offers a discount on the price of specific items when they’re purchased. o Manufacturers or retailers in issue coupons: newspapers, magazines, freestanding inserts, on products, on shelves, at the cash register, over the Internet, and by mail.  Deals: a type of short-term price reduction that can take several forms, such as a “featured price,” a price lower than regular price; a “buy one, get one free” offer; or a certain percentage more “free” offer contained in larger packaging. o Deals encourage trial because they lower the risk for consumers by reducing the cost of the good, but they can also alter perception of value.  Premiums: an item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing.  Contests: a brand-sponsored competition that requires some sort of skill or effort.  Sweepstakes: a form of sales promotion that offer prizes based on a chance drawing of entrants’ names. Do not require the entrant to complete a task other than buy a ticket or fill out a form.  Sampling: offers potential customers the opportunity to try a g/s before they make a buying decision.  Loyalty programs: specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.  Point-of-Purchase Displays: a merchandise display located at the point of purchase, such as the checkout counter in a grocery store.  Rebates: refer to a particular type of price reduction.  Product placement: inclusion of a product in nontraditional situations, such as in a scene in a movie or TV programs. Trade Channel Sales Promotion  Discount and allowances: effective incentives used to maintain or increase inventory levels in the distribution channel.  Cooperative advertising: helps to compensate trade channel members for money they spend promoting products and encourage them to feature products more often.  Sales force training: because retailers have contact with end consumers and are ultimately responsible for selling the products they carry, manufacturers may offer to train the retailer’s sales staff. This training gives a company’s sales force more in-depth product knowledge, which enhances their confidence in the product and increases the likelihood of future sales. Using Sales Promotion Tools  Marketers must be careful in their use of promotions, especially those that focus on lowering prices. Depending on the item, consumers may stock up when items are offered at a lower price, which simply shifts sales from the future to now and thereby leads to short
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