Textbook Notes (362,881)
Canada (158,081)
Business (2,364)
BU352 (267)
Chapter 15

Chapter 15 - Advertising, Sales Promotions, and Personal Selling

4 Pages
Unlock Document

Wilfrid Laurier University
Dave Ashberry

Chapter 15 Advertising, Sales Promotions, and Personal Selling ADVERTISING  After being exposed to an advertisement, consumers go through several steps before actually buying/taking action  Not always a direct link between a marketing communication and consumer’s purchase AIDA Model  Mental stages consumers go through as a result of marketing communications; Known as the think, feel, do model  “Awareness leads to interest, which leads to desire, which leads to action”  Attention  sender must gain the attention of the audience; use multiple channels to send out the same message o Aided recall – recognize the brand when its name is presented to them o Top of mind awareness – the highest level of awareness, occurs when a brand has a prominent place in people’s memories that triggers a response without them having to put any thought into it  Interest communication must work to increase their interest in the product; make sure the ad’s message includes attributes important to the target audience  Desire  subsequent messages must move consumers from “I like” to “I want”  Action  ultimate goal is to drive receiver to act (make a purchase)  Lagged Effect: delayed response to campaign; usually takes several exposures to an ad before message is fully processed Advertising Objectives  Advertising is a paid form of communication, delivered through media from an identifiable source, designed to persuade the receiver to take some form of action, now or in the future  Advertising is paid, carried by some medium, source must be known, and it represents a persuasive form of communication  enormous industry & most visible form of marketing communications  consumers screen out advertisements that don’t apply to them; some consumers don’t notice advertisements, & if they do, they might not remember the advertisement later  objectives of advertising are to inform, persuade, & remind consumers  Informative Advertising o Create & build brand awareness with the goal of moving consumers through buying cycle to purchase o Used to inform about upcoming sales or new merchandise  Persuasive Advertising o Used to motivate consumers to take action after product has gained certain level of brand awareness o Generally occurs in growth & early maturity stages of PLC (when competition is most intense) o Used in later stages to reposition a brand & persuade consumers to change their existing perceptions of the brand  Reminder Advertising o used to remind or prompt repurchase, especially for products in the maturity stage of PLC (e.g. Coca-Cola) o top-of-mind awareness = prominent place in people’s memories that triggers a response without having to put any thought into it  Focus of Advertisements o stages of AIDA are used to determine focus for advertisements o product-focused  informing, persuading, reminding about particular product/service o institutional  inform, persuade, remind about places, politics, an industry or corporation o public service announcement (PSA)  focus on public welfare & sponsored by non-profit orgs  form of social marketing = application of marketing communications to social issues to bring about attitudinal or behavioral change among the general public o each campaigns objectives must be measurable & specific REGULATORY AND ETHICAL ISSUES IN ADVERTISING  complex mix of formal laws & informal restrictions designed to protect consumers from deceptive advertising  Competition Bureau enforces the Competition Act, the most comprehensive legislation affecting the marketing activities of companies in Canada  Canadian Radio-television & Telecommunications Commission (CRTC) = controls advertising industry & governs broadcast media & licensing; must approve all advertisements before they can be broadcast  Food & Drug Act = prohibits advertising & selling of unsafe or misbranded foods, cosmetics, drugs  Consumer Packaging & Labeling Act = requires disclosure of full info about products; in French & English  Puffery  legal exaggeration of praise, stopping just short of deception, lavished on a product o In Canada, consumers are considered able to evaluate advertising claims  Some companies are criticized for their large advertising budgets, which consumers say is one of the reasons the prices are high Stealth Marketing  Strategy used to attract consumers using promotional tactics that deliver a sales message in unconventional ways, often without the target audience knowing that the message even has a selling intent  Becoming difficult to determine whether consumers are viewing a promotional message or factual information  Viral Marketing: Phenomenon that encourages people to pass along a marketing message to other potential consumers SALES PROMOTION  Special incentives or excitement-building programs that encourage consumers to purchase a particular P/S  The value in SP is in closing the deal  Free samples, point of purchase displays = short-term sales  Loyalty programs, contests = build long-term customer relationship management (CRM) Consumer Sales Promotions  Coupons  Sweepstakes o Offers a discount on price of specific items o Offers prizes based on chance (by a random when purchased draw); no effort, just fill out form o Issued by manufacturers and retailers o Encourage current consumers to consume o Only 2% of coupons are ever redeemed more o Downloaded coupons have a 56%  Samples redemption rate; higher b/c people are o Offers potential consumers the opportunity to looking for coupons for certain P/S try a P/S before they make a buying decision  Deals o One of the most costly tools, but also one of o Short-term price reduction the most effective o “featured price”; lower than regular price; buy  Loyalty Programs one get one o Specifically designed to retain customers by o Financing deals like extended repayment or offering premiums or other incentives reduced % interest rates  Point of Purchase Displays (POP) o They can alter perceptions of value, BUT can o Located at checkouts also encourage trial b/c they lower risk o Key is to make display “pop out” in a  Premiums crowded store o Offer item for free or at bargain price to o Manufacturers have to encourage retailers to reward certain type of behaviour such as use these displays buying, sampling, or testing  Rebates o Build goodwill o Price discount, the manufacturer issues the o Can be included in package, handed out at refund
More Less

Related notes for BU352

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.