Chapter 15 - Advertising, Sales Promotions, and Personal Selling

Question 1

The AIDA Model

Answer 1

• A common model of the series of mental stages through which consumers move as a result of marketing communications: Attention leads to Interest, which leads to Desire, which leads to Action
• Consumers usually have 3 responses to the AIDA model, “think, feel, do”

Question 2

Attention

Answer 2

Brand awareness refers to a potential customer’s ability to recognize or recall that the brand name is a particular type of retailer or product/service - strength of link between he brand name and type of merchandise or service in the minds of customers

Question 3

Aided recall

Answer 3

occurs when consumers recognize the brand when its name is presented to them

Question 4

Top-of-mind awareness -

Answer 4

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

Question 5

Interest

Answer 5

Once the consumer is aware that the company or product exists, communication must work to increase their interest level - consumers must be persuaded that it is a product worth investigating

Question 6

Desire

Answer 6

Message from the consumer should move to “i like it” to “i want it”

Question 7

Action

Answer 7

Ultimate goal is to drive the receiver to action, if the message has caught consumers attention and made them interested enough to consider the product as a means to satisfy a specific desire of theirs, they will likely act on that interest by making a purchase

Question 8

The Lagged Effect

Answer 8

A delayed response to a marketing communication campaign

Question 9

Advertising Objectives

Answer 9

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

Question 10

Informative advertising -

Answer 10

communicates 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 stage of the product life cycle when consumers have little information about the specific product or type of product

Question 11

Persuasive advertising -

Answer 11

motivate consumers to take action, generally occurs in the growth and early maturity stages, when competition is more intense, and attempts to accelerate the markets acceptance of the product

• Also can be sued to reposition an established brand

Question 12

Reminder advertising

Answer 12

is the communication tool used to remind consumers of a product or to promote repurchase, especially for products that have gained marker acceptance and are in the maturity stage of the life cycle

Question 13

Product-focused advertisements

Answer 13

are used to inform, persuade, or remind consumers about a specific product or service

Question 14

Institutional advertisements -

Answer 14

• is to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation

Question 15

Product placement

Answer 15

marketers include their product in non-traditional situations - scene in a movie or TV program

Question 16

Public Service Announcements

Answer 16

focuses on public welfare and generally is sponsored by non-profit institutions, civic groups, religious organizations, trade associations, or political groups

Question 17

Social marketing

Answer 17

PSA is a form of social marketing which is the application of marketing principles to a social issue to bring about attitudinal and behavioural change among the general public or a specific population segment

Question 18

Deceptive advertising

Answer 18

is a representation, omission, act, or practice in an advertisement that is likely to mislead consumers acting reasonable under the circumstances
The competition act maintains and encourages competition while protecting consumers from misleading and deceptive advertising practices

Question 19

Puffery

Answer 19

the legal exaggeration of praise, stopping just short of deception, lavished on a product

Question 20

Sales Promotion

Answer 20

Sales promotions are special incentives or excitement building programs that encourage consumers to purchase a particular product or service, typically used in conjunction with other advertising or personal selling programs

• value of promotion is closing the deal

Question 21

Long term vs. short term

Answer 21

Free samples, point of purchase (POP) displays, attempt to build short term sales, whereas others, such as loyalty programs, contests, and sweepstakes, have become integral components of firms long-term customer relationship management (CRM) programs, which they use to build customer loyalty

Question 22

Deal

Answer 22

refers to a type of short-term price reduction that can take several forms, such as a featured price, buy one get one free, or a percentage “more free” offer contained in larger packaging

Question 23

Alter perception of value

Answer 23

• a short term price reduction may signal a different price/quality relationship than would be ideal from the manufacturers perspective

Question 24

Premium

Answer 24

offers an item for free or at a bargain price to reward some type of behaviour, such as buying, sampling, or testing - build goodwill among customers who often pereice high value in theme
Toys inside of cereal boxes

Question 25

Sweepstakes

Answer 25

a form of sales promotion that offers prizes based on a change drawing of entrants names - do not require the entrant to complete a task other than buying a ticket or completing a form

Question 26

Loyalty program

Answer 26

retain customers by offering premiums or other incentives to customers who make multiple purchases over time

Question 27

Point of purchase (POP) display

Answer 27

merchandise display located at the point of purchase, such as the checkout in the grocery store

Question 28

Rebate

Answer 28

a particular type of price reduction in which a position of the purchase price is returned by the seller to the buyer

Question 29

Trade channel sales promotions
Discounts and Allowances

Answer 29

• effective incentives used to maintain or increase inventory levels in the distribution channel, ex- case allowance - a discount/dollar taken off each case ordered during a specific time period

Question 30

Trade channel sales promotions
Cooperative Advertising

Answer 30

• promoting products to consumers (co-op) adverting helps to compensate trade channel members for money they spend promoting products and encourages them to feature products more often

Question 31

Trade channel sales promotions
Sales Force Training -

Answer 31

retailers have contact with end consumers and are ultimately responsible for selling products they carry, manufacturers may offer to train the retailers sales staff

Question 32

Using Sales Promotion Tools
- pop up stores

Answer 32

temporary storefronts that exist for only a limited time and generally focus on a new product or a limited group of products offered by a retailer, manufacturer, or service provider; give consumers a chance to interact with the brand and build brand awareness

Question 33

Cross-promoting

Answer 33

• when two or more firms join together to reach a specific target market - to be successful two products must appeal to the same target market and together create value for consumers

Question 34

Evaluating Sales Promotions by Using Marketing Metrics

Answer 34

To evaluate a trade promotion, retailers consider the following:

• The realized margin from the promotion
• The cost of the additional inventory carried because of buying more than the normal amount of product
• The potential increase in sales from the promoted merchandise
• The long-term impact on sales of the promotion
• The potential loss suffered when customers switch to the promoted merchandise from more profitable TV’s
• The additional sales made to customers attracted to the store by the promotion

Question 35

The Scope and Nature of Personal Selling

Answer 35

Two way flow of communication between a buyer (or buyers) and a seller that is designed to influence the buyer’s purchase decision

Question 36

Value Added by Personal Selling

Answer 36

• sales people build relationships
• salespeople educate and provide advice
• sales people save time and simplify buying

Question 37

Relationship selling

Answer 37

• sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long-term and investing in opportunities that are beneficial to all parties

Question 38

The Personal Selling Process

Answer 38

Step 1: Generate and Qualify Leads
Step 2: Preapproach and the use of CRM systems
Step 3: Sales presentation and overcoming objectives
Step 4: Closing the sale
Step 5: Follow-up

Question 39

Step 1: Generate and Qualify Leads

Answer 39

Leads - a list of potential customers
Qualify - the process of assessing the potential of sales leads

Question 40

Finding leads

Answer 40

• Trade shows - major events attended by the buyers who choose to be exposed to products and services offered by potential suppliers in an industry
• Cold callers - method of prospecting in which salespeople phone or go to see potential customers without appointments
• Telemarketing - similar to a cold call, but always occurs on the phone
  Low success rate and need to be government regulated

Question 41

Step 2: Preapproach and the Use of CRM Systems

Answer 41

Preapproach - occurs prior to meeting the customer for the first time and extends the qualification of leads and procedure described in step 1
Must conduct additional research and develop plans for meeting with the customer

Question 42

Step 3: Sales Presentation and Overcoming Objections

Answer 42

• The Presentation
  Ready for a person-to-person meeting
• Handling objectives
  Customers may raise objections pertaining to a variety of issues, but they usually relate in some way to value, such as the price is too high for the level of quality or service

Question 43

Step 4: Closing the Sale

Answer 43

Closing the sale - means obtaining a commitment from the customers to make a purchase

Question 44

Step 5: Follow-up

Answer 44

Attitudes customers develop after the sale become the basis for how they will purchase in the future, follow up is a prime opportunity for a salesperson to solidify the customer relationship through great service quality