BUS 620 Week 4 Discussion 1& 2 plus Week 4 Assignment

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Chapter 11

Promotions: Integrated Marketing Communication

Hemera/Thinkstock

Learning Outcomes

By the end of this chapter, you should:

Be able to iden�fy the elements of the promo�ons mix and their basic characteris�cs. Know the essen�al objec�ves of marke�ng communica�ons. Be able to compare and contrast the hierarchy-of-effects model and its implica�ons to the Elabora�on Likelihood Model. Be able to iden�fy the major steps in the development of effec�ve communica�ons programs. Know the four general classifica�ons of sales func�ons and be able to describe the sales process. Understand how the effec�veness and efficiency of the sales effort can be improved through sales training and appropriate compensa�on of the sales force.

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Ch. 11 Introduction Promo�ons serve a cri�cal func�on within the marke�ng process. Their value rests in their ability to inform a selected audience of the benefits of buying one uniquely posi�oned brand from among the array of compe��ve offerings available. Consequently, the primary objec�ve of marke�ng communica�ons is to persuade prospec�ve buyers by shaping their a�tudes toward the brand. As we explored in Chapter 5, a�tude change can be accomplished by the provision of brand-specific informa�on and images. The path of progress in changing a�tudes is mediated by the individual's level of involvement or interest in the product being marketed.

This chapter focuses primarily on the role of promo�ons in the process of persuasion. The beginning sec�ons of this chapter introduce the elements of the promo�ons mix and their characteris�cs. This is followed by an examina�on of the three fundamental goals of marke�ng communica�ons and our understanding of the processes that govern and limit the effec�veness of promo�ons and adver�sing programs. The central sec�on of the chapter presents a five-part model for designing effec�ve adver�sing programs with a par�cular emphasis on product posi�oning objec�ves. The concluding sec�ons focus exclusively on personal selling and sales management as essen�al weapons within the promo�ons arsenal. A sales process model is developed, and issues related to sales force recruitment, training, and compensa�on are discussed.

***

Most effec�ve adver�sements and sales presenta�ons share one important similarity: They tell stories. The experiences of one metro Milwaukee family illustrate the difference that a story can make. The family was faced with the difficult task of finding the right skilled nursing facility for Lois, the 87-year-old family matriarch. They met with representa�ves of two suburban facili�es who made very similar presenta�ons. Each stressed the high quality of skilled nursing care, Medicare cer�fica�on, recrea�onal therapy programs, nutri�ous meal plans, pastoral care, and the availability of many special programs and ac�vi�es. One offered a more comprehensive physical rehabilita�on program and the other had a lower staff-to-resident ra�o, but they seemed essen�ally the same. The third facility that they visited was not appreciably different from the other two. The services and facili�es were of equally high caliber and the range of opportuni�es available was comparable. The presenta�on made to the family, however, was substan�ally different. Rather than mee�ng in a conference room, the center's representa�ve escorted the family throughout the complex, explaining how each of the areas and facili�es would meet their family member's needs. Women were having their hair and nails and done in the on-site salon. Wheelchair-bound residents were playing a game called balloon ball in a large recrea�on room. One small group of seniors was in the midst of a book club discussion while another was playing cards. The family and the guide also visited a few of the residents in their rooms.

At each stop along the way, the center's representa�ve related short personal vigne�es about some of the residents' interests and ac�vi�es. She stopped to introduce some of the residents along the route and let them relate their own experiences and opinions about the facili�es. She answered all of the family's ques�ons as they arose . . . ques�ons that had not even occurred to them when visi�ng the other facili�es.

The facility's representa�ve was effec�ve because she was able to provide a living illustra�on of how this nursing home was the caring solu�on to the challenge the family confronted. Most of all, the family was able to visualize how this facility would meet their loved one's needs. They made their decision that a�ernoon and felt far be�er about it than they had thought possible.

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11.1 The Promotions Mix The promo�ons mix is a term used to refer to "the various communica�on techniques such as adver�sing, personal selling, sales promo�on, and public rela�ons/product publicity available to a marketer that are combined to achieve specific goals" (American Marke�ng Associa�on, 2012). In most instances, the goals relate to informing prospec�ve buyers about specific brands and persuading them to buy. The significance of a promo�ons mix concept rests in understanding that although each of the ingredients has significant poten�al in its own right, the net impact of each ingredient can be significantly enhanced when used in conjunc�on with other elements. Integrated Marke�ng Communica�ons (IMC) is a term some�mes used to refer to the coordina�on of the promo�ons mix, in support of a product or service, to maximize the persuasive impact on the intended audience in the most financially efficient manner possible.

Consistent with the IMC concept, all of the elements of the promo�ons mix should work together and reinforce each other to promote a brand such that the combined persuasive impact of the promo�onal parts is greater than the sum of the individual ingredients. That is, all of the parts of the marke�ng communica�ons plan should be both complementary to each other and synergis�c in their combined impact. The four promo�ons op�ons available to marke�ng managers are introduced in the sec�ons that follow. Each alterna�ve possesses specific strengths and is especially well-suited to specific situa�ons and opportuni�es. Following this introduc�on, the balance of the chapter focuses on the two primary elements of the promo�ons mix: adver�sing and personal selling.

Advertising

Adver�sing refers to any paid form of nonpersonal communica�on between a seller and poten�al buyers. It is a paid form in the sense that it compensates media outlets to deliver the adver�ser's message. Tradi�onal media include television, radio, newspapers, magazines, trade shows, catalogs, and direct mail. These media op�ons have provided one-way communica�on from the seller to the consumer with very li�le interac�on between the two. However, marketers are increasingly using the Internet and social media to interact with consumers and tailor the content of ads to relevant personal characteris�cs of the prospec�ve buyer. The significance of these emerging media op�ons to marke�ng communica�ons is inves�gated in Chapter 13.

Marke�ng plans for both consumer and industrial goods have relied on mass media adver�sing to reach poten�al buyers for hundreds of years. It gives the adver�ser complete control over the content of the message being delivered and can reach a very large audience very cost effec�vely.

Adver�sing also offers marke�ng managers substan�al crea�ve flexibility, depending on the specific class of media being considered. Television provides nearly limitless op�ons in the expression of ac�on, color, and sound. Radio is more restricted in its technical capabili�es, but it o�en relies on appeals to the audience's imagina�on or theater of the mind. Print, electronic, and online media possess specific inherent strengths and weaknesses as well. However, all media have the power to foster a wide range of emo�ons when used to their greatest poten�al. Consider the following examples. Each conveys substan�ally different emo�onal appeals while relying almost exclusively on a single image or photograph to communicate the intended impression or meaning.

Think About It

Examine the following ads. Can you iden�fy the emo�onal bu�on that each is trying to press?

Why would the emo�on triggered by the adver�sement be an effec�ve way to promote the product or message that is featured?

Associated Press

Associated Press

Though adver�sing offers several advantages over other promo�ons alterna�ves, its impact and value may be substan�ally limited due to the crowded media marketplace. Most consumers are bombarded daily by hundreds of adver�sements. Breaking through the clu�er to achieve a significant impact on your intended audience can be difficult. Although carefully selected adver�sing media vehicles can make reaching your audience cost effec�ve, the success of an adver�sing campaign in influencing your target market is o�en dependent on the crea�ve impact of your message and execu�on.

Personal Selling

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The rela�onship between buyer and seller is so important that it is now an academic study. A researcher watches how the sales representa�ve guides the customer through a sale. What is the salesperson's role in the customers' shopping experience?

In contrast to adver�sing, personal selling is a form of promo�on that involves personal interac�ons between company representa�ves and prospec�ve customers. More specifically, the seller's direct contact may be with any individual at the buyer's organiza�on who is likely to have a role in the purchasing decision. Personal selling can take place via face-to-face mee�ngs, telephone conversa�ons, videoconferencing, or other interac�ve media.

Personal selling is a process of persuading others that o�en relies on a combina�on of spoken and wri�en communica�on. It almost always plays a more prominent role in the promo�ons mix for business-to-business than those selling directly to end consumers. The most common excep�ons occur for "big �cket" consumer items such as cars, real estate, and investments. The greatest advantage to be found in personal selling is its interac�ve nature. Salespeople can refine and reshape their message to prospec�ve buyers based on the feedback they receive during the sales call. Each sales message can be uniquely tailored to the needs of the individual customer, and the buyer's specific ques�ons or objec�ons enable the seller to focus its energies on addressing those issues of greatest concern. This is par�cularly cri�cal when the product being promoted can be custom designed and the terms of sale are nego�able.

The primary limita�on of personal selling rela�ve to other forms of promo�on is cost. Recruitment-, training-, and compensa�on-related expenses make sales calls far more expensive on a per-customer basis than adver�sing. The impact, however, should also be substan�ally greater. Whether personal selling is a viable op�on for a given product is simply a func�on of the costs of selling rela�ve to the profitability of each sale. Consider how cars have been tradi�onally sold. They are sufficiently sophis�cated and complex to warrant having a trained professional assist prospec�ve buyers. The profit margin realized from the sale of new cars is sufficient to compensate a salesperson for his or her work. We'll discuss personal selling and adver�sing in more detail in upcoming sec�ons.

How They Sell

Sales Promotions

Sales promo�ons are short-term price incen�ves intended to encourage customers to buy a specific brand within a specified �me frame. The objec�ve of most sales promo�ons is to build sales volume in the near term by lowering the price paid by the buyer. Common forms of business-to-consumer sales promo�ons include discount coupons, rebates, and point-of-purchase savings. Other types of B2C sales promo�ons are intended to boost sales by providing nonprice incen�ves. These include contests, sweepstakes, loyalty programs, free product trials, and free product samples.

Sales promo�ons aimed at distribu�on channel intermediaries (wholesalers and retailers) are also used extensively in business-to-business marke�ng programs. Usually termed trade promo�ons, they include different types of manufacturers' efforts to support exis�ng channels of distribu�on and encourage the development of new ones. These include cash incen�ves, sales contests, merchandising support, and quan�ty discounts on purchases made within a fixed interval.

Sales promo�ons can be very effec�ve in genera�ng short-term sales for a product. They can be par�cularly effec�ve in markets where brand loyalty is low. Many types of B2C sales promo�ons can be effec�ve in s�mula�ng customers to try new brands and new products, especially when paired with corresponding B2B incen�ves to support channel par�cipa�on. Loyalty programs such as frequent shopper cards and buy-one-get-one-free promo�ons, in turn, are o�en used to reinforce brand loyalty.

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Quan�ty discounts, like these 2 for $4 promo�ons on Smucker's products, are intended to build sales volume at a reduced price.

Associated Press

The primary disadvantage to most forms of sales promo�ons is the emphasis on price. Discount coupons, for example, are intended to s�mulate sales by reducing the buyer's cost to purchase. The sa�sfac�on derived from the purchase is intended to come from the product, not the savings. However, in product markets where discount coupons are frequently used by compe�ng brands, customers come to expect them and may be unwilling to make a purchase without one. The loyalty,

purchase sa�sfac�on, and posi�ve reinforcement in this instance have been transferred to the coupon redemp�on experience rather than a brand. If all compe�tors engage in compe��ve couponing, each brand suffers a corresponding loss in per-unit profit margins and no one wins.

In most marke�ng contexts, sales promo�ons are subordinate to other elements of the marke�ng mix rather than opera�ng independently to achieve specific goals. They are most commonly used in support of related pricing and adver�sing tac�cs to provide short-term incen�ves. As illustrated in Chapter 9, consumer-directed sales promo�ons such as coupons and price dealing are o�en used in the introductory stage of the Product Life Cycle (PLC) to encourage innovators to try the product and early adopters to accelerate the process of building sales volume. Sales promo�ons targe�ng resellers can also be effec�ve during this stage of the PLC by promo�ng the development of distribu�on networks.

A distributor's commitment to promote and distribute a new brand is o�en a direct response to the incen�ves provided by the manufacturer. The s�mulus to buy and resell throughout the channel of distribu�on is usually a func�on of pricing and the strategic use of promo�ons to either push or pull the product through the channel. Chapter 12 provides a detailed examina�on of the role played by sales promo�ons in managing and promo�ng product distribu�on.

In later stages of the PLC, sales promo�ons are a tac�c used primarily in conjunc�on with adver�sing to ba�le for brand sales in fast-growing product markets. As compe��ve rivalries heat up in the growth stage, the role of sales promo�ons is primarily oriented toward building and protec�ng market share. Similarly, the primary role of sales promo�ons in the maturity phase of the cycle is to capture market share from compe�tors in rela�vely stagnant product markets. As market growth turns nega�ve, brands o�en rely on sales promo�ons to reinforce exis�ng levels of sales volume.

Public Relations

Public rela�ons are nonpaid, impersonal promo�onal communica�ons distributed via the news media or other vehicles outside the direct control of the seller. Publicity is the most common form of public rela�ons used to disseminate informa�on about a company or product, and tradi�onal news media provide the most common medium of communica�on. The public rela�ons, or PR, ac�vity usually takes the form of feature ar�cles or broadcast stories intended for customers, shareholders, or other stakeholders. However, companies are increasingly reliant on the Internet and nontradi�onal media to reach their intended audience. Many companies employ public rela�ons firms to assist in the placement of stories in media that will most efficiently and effec�vely reach their target audience.

The Johnson & Johnson Campaign for Nursing is a mul�media public rela�ons program intended to reinforce the company's image as a leading producer of health care products. The focus of its message is that the company supports nurses as the pivotal players in providing direct, hands-on care for pa�ents. Its website (h�p://www.campaignfornursing.com (h�p://www.discovernursing.com/) ), press releases, instruc�onal materials, and scholarship programs emphasize the company's dedica�on to suppor�ng caregivers rather than promo�ng the products it sells. This linkage between the company and a commitment to nursing is designed to enhance the target audience's apprecia�on of Johnson & Johnson as a trusted name that truly cares for its customers.

Public rela�ons has the poten�al to provide favorable exposure for a company or product without direct payment to the publisher or distributor of the informa�on. Since the informa�on reaches the audience from an independent and trusted news source, it tends to be regarded as more credible than paid adver�sements in the minds of receivers. It also has the advantage of being rela�vely inexpensive to produce.

The primary drawback associated with public rela�ons as a promo�onal tool is that it is not reliable. The sponsoring firm has li�le control over independent media's decision to carry the stories. The media outlet may choose to ignore it, use only a por�on of it, or release it at a �me that is not well suited to the needs of the sponsor. The growing influence of the Internet as a form of nontradi�onal media, however, has provided a wide array of alterna�ves. In addi�on to crea�ng unique, issue-specific websites, companies can collaborate with a vast range of poten�al partners in both the for-profit and nonprofit sectors to get their message to the intended audience.

Adverse events beyond the immediate control of the firm always have the poten�al to produce nega�ve publicity for an organiza�on. Financial misconduct on the part of company officials, catastrophic product failures, environmental disasters, and human resource–related failures can all create unwanted news events. In those instances, many companies will rely on public rela�ons firms to assist them in damage control opera�ons and managing the flow of informa�on from inside the firm.

Think About It

Each of the four elements of the promo�ons mix has certain advantages and disadvantages, depending on your objec�ves in using them.

Which of the four would be best if your goal were simply to reach as many people as possible with a message for the lowest possible cost?

Which ones would probably be most cost effec�ve if you wanted to target horse owners with an adver�sement for cowboy boots? If selling these boots really depended on having an interac�ve conversa�on with prospec�ve buyers to explain why they are so special, which op�on would be best? If you had no money to spend on promo�ng these amazing new boots?

What if the objec�ve were to sell as many cowboy boots as quickly as possible? What combina�on of promo�ons might work best?

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The balance of this chapter focuses exclusively on two primary elements of the promo�ons mix: adver�sing and personal selling. The first sec�ons examine the ra�onale and marke�ng logic that support the development of effec�ve adver�sing programs. This is based on a five-part process model that depends on the meaningful transla�on of the brand's target market to a clearly defined target audience. The concluding sec�ons of the chapter focus on personal selling with an emphasis on working with prospec�ve clients to meet their needs as the cornerstone of effec�ve sales programs.

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Even in a seemingly stable market like yogurt, marketers con�nue to create and reinforce brand awareness. How does the introduc�on of new brands and varie�es play into this process?

Associated Press

11.2 Advertising Communication Objectives As noted in Chapter 6, the final outcome of strategic planning at the brand level will always be a posi�oning strategy. In that sense, posi�oning will also always be the primary objec�ve for marke�ng communica�ons. Posi�oning is a complex construct based on understanding how target consumers' preferences are shaped by their percep�ons of product a�ributes and brand-specific benefits. The execu�on of the promo�ons mix plays a cri�cal role in opera�onalizing this strategy through ad messages, sales presenta�ons, sales promo�ons, and public rela�ons efforts. That is, the promo�ons mix for a given brand reflects the marke�ng manager's plan for how the organiza�on and brand will relate to its customers and compe�tors.

To be effec�ve, all of the elements of the promo�ons must be integrated, targe�ng the same goals. Brand posi�oning provides the broad strategic objec�ve for the promo�ons mix. However, the means by which this ul�mate goal can be achieved depends on a mix of three specific communica�on objec�ves that must be met over the life cycle of the product: crea�ng brand awareness, promo�ng brand preference, and reinforcing past purchases. Although each of the elements of the promo�ons mix can make significant contribu�ons toward achieving these goals, our focus for this sec�on of the chapter will be on the role of adver�sing.

Creating Brand Awareness

Recall from Chapter 9 that a fundamental role of adver�sing and other forms of promo�ons in the introduc�on stage of the Product Life Cycle is to inform prospec�ve customers of the brand's existence. This is true for both the ini�al stage of wholly new product categories as well as the introduc�on of a new brand to an established product market.

The ini�al objec�ve of adver�sing aimed at reaching innovators and early adopters with informa�on about the availability of a new, innova�ve product is typically geared toward informing prospects about its existence. A shi� in emphasis to relaying informa�on about brand-specific a�ributes and benefits will take place once compe�tors enter the market. When yogurt was first introduced to the United States as a specialty health food in the 1950s, the ini�al promo�onal objec�ve was to build product-level awareness, s�mulate consumer interest, and create primary demand. The importance of crea�ng brand awareness grew as category sales developed over �me and compe�ng brands entered the market.

Once the category was established, brands such as Dannon, Breyers, Colombo, and Yoplait sought to establish unique iden��es within the compe��ve market. Even in a seemingly stable market, the process of crea�ng and reinforcing brand awareness con�nues to evolve. In 2011, the Breyers yogurt brand was discon�nued in favor of Yo Crunch. In that same year, the Colombo brand name (the oldest of the U.S. brands) was discon�nued in favor of General Mills' exclusive focus on the Yoplait brand (Unilever USA, 2012). New flavors, brands, and varie�es (e.g., light yogurt, Chobani Greek Yogurt) also require adver�sing and other promo�ons to build ini�al awareness.

Promoting Brand Preference

Promo�ng brand-specific preference in compe��ve markets is not en�rely independent of building brand awareness—consumers cannot prefer brands of which they are not aware. The desired outcome in promo�ng brand preference is to build and reinforce selec�ve demand for a specific brand by promo�ng favorable a�tudes toward the brand. This requires persuasion. Persuasion within the context of marke�ng is defined as "changes in consumers' beliefs and a�tudes caused by promo�on communica�ons" (American Marke�ng Associa�on, 2012).

As discussed extensively in Chapter 5, a�tudes are the powerful personal factors that direct which brands consumers will buy. The mul�-a�ribute model of a�tude forma�on defines a�tudes toward brands as a composite of beliefs about a�ributes that the buyer regards as essen�al to the product, weighted by the importance of those categories of beliefs. In short, a�tudes measure how prospec�ve customers evaluate the bundle of benefits provided by compe�ng brands rela�ve to their specific needs. Marketers' understanding of this mul�-a�ribute perspec�ve on persuasion is readily evident in adver�sing strategies that are used in every area of B2B and B2C marke�ng. In fact, it is difficult to find ads within compe��ve product markets that do not rely on the promo�on of specific a�ributes and benefits to create a favorable posi�oning strategy. Each of the following ads emphasizes a specific a�ribute or benefit as the basis for persuading readers to buy their brand instead of compe�tors' brands.

In some instances, adver�sers will use compara�ve adver�sing to draw explicit and direct contrasts between their brand's unique characteris�cs and those of compe�tors. The dis�nc�ve feature of compara�ve ads is that compe�ng products are iden�fied by name. To make compara�ve ads maximally effec�ve, the point of contrast between brands needs to be on the product features that the target audience regards as most cri�cal to their sa�sfac�on with the purchase. Consequently, compara�ve ads for food products typically focus on taste. However, be�er nutri�on or greater convenience would be appropriate claims if these a�ributes represent key considera�ons for the target market. Similarly, compara�ve ads for cars should stress economy, performance, or safety in accord with the priori�es of the target customer.

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These ads highlight what sets their products apart from the compe�tors. How might a guarantee or novelty shell dis�nguish these products from others in their category?

Campbell's annual back-to-school sales aim to lock out compe�tors by encouraging consumers to stock up on an affordable meal

Cobb Cycling/Associated Press

Think About It

Select a product category and collect ads from four of the leading brands. Based on these messages, define how they are being posi�oned rela�ve to each other.

Are any of the companies using a compara�ve ad strategy?

Reinforcing Brand Preference

In many mature markets, the absence of overall sales growth for the category fuels aggressive compe��ve rivalry for market share. Consequently, brand managers rely on adver�sing to defend their posi�on and share against the threat posed by established compe�tors and occasional new entrants. Prevailing levels of customer sa�sfac�on within the established target market depend on the perceived value of the brand and buyers' percep�ons of value rela�ve to compe�ng brands. In this sense, successful posi�oning represents both the building up and the maintenance of a desired brand iden�ty, as well as successfully defending it against the a�acks posed by compe�tors.

Reinforcing brand preference within one's exis�ng customer base is an essen�al adver�sing func�on. A brand image created and maintained by years of extensive promo�ons and posi�ve customer experience represents a tremendous investment to create posi�ve brand equity. Consequently, reinforcing brand preference and posi�oning through ongoing investments in the promo�ons mix is a financially sound decision. This basic goal can be pursued by marke�ng managers in several ways.

Reminder adver�sing is a term some�mes used to iden�fy ads intended to keep already familiar products readily available in the minds of consumers. This effort to promote top-of-mind awareness is intended to trigger the desired brand choice when the buyer is ready to purchase. The emphasis is on reinforcing the familiarity of a trusted brand name rather than providing reasons to buy the product.

Some reminder adver�sing is linked to specific purchase occasions. Cross brand pen and pencil sets are o�en promoted as high school gradua�on gi�s. Samsonite brand organizers and briefcases are some�mes featured as gi�s for new college graduates. Prestone an�freeze focuses reminder ads near the start of winter, while Contac allergy-relief products place more emphasis on the early spring.

For more frequently purchased products, adver�sing messages are some�mes used to remind customers to stock up on their favorite brand. Stock-up sales encourage mul�ple purchases and build sales volume over specified periods. Sales promo�ons and price discounts are o�en used to reinforce the call to buy now. But these types of events also have the poten�al to protect a brand's core customer base by blocking out compe�tors for several purchase cycles. Consider Campbell's annual back-to-school sales on a wide range of soups and shelf-stable healthy meal ideas. The changes in daily rou�nes that come with a new school year provide a good opportunity to feature several products. However, encouraging customers to stock up on several months' worth of tomato soup or sloppy joe mix also locks compe�tors out of these households and provides opportuni�es to reinforce brand preference through direct experience and sa�sfac�on with the brands. This technique is some�mes referred to as pantry management, since the goal is to directly influence the range of brands and products in the customer's home.

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op�on that fits into their busy schedules.

Associated Press

Well-designed adver�sing programs have the poten�al to accomplish these three types of objec�ves: crea�ng brand awareness, promo�ng brand preference, and reinforcing past purchases. The sec�on that follows inves�gates how adver�sing works and the processes that govern the impact of

adver�sing messages. The two alterna�ve types of models considered here are hierarchy-of-effects models and the Elabora�on Likelihood Model. Following the presenta�on of these process models, the final sec�on on this topic delves into the specifics of how to design efficient and effec�ve adver�sing programs.

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The premise of all hierarchy-of-effects adver�sing models is that the message must move its audience through a sequence of stages in order to effec�vely impact behavior.

Figure 11.1: The AIDA hierarchy-of-effects model

Adapted from AIDA sales funnel, h�p://www.mediacontour.com/blog/2012/07/the-

marke�ng-landscape-aida-and-social-media/#more-854 (h�p://www.mediacontour.com/blog/2012/07/the-marke�ng-

landscape-aida-and-social-media/#more-854)

Brand must remain the focus of an adver�sement. Morris the Cat provides a good example of how brand can become lost when too much emphasis is placed on capturing the consumer's a�en�on.

Be�mann/Corbis

11.3 The Marketing Communications Process Sustained levels of profitability and acceptable rates of return on invested financial resources are two of the primary goals driving brand management decisions. Within this context, expenditures on adver�sing and promo�ons can be regarded as investments in future sales. However, there are intermediate communica�on goals that must be accomplished to build the brand and achieve the desired posi�oning strategy that ul�mately drives product sales and profitability. Throughout its history, the discipline of marke�ng has developed several models that try to describe how adver�sing creates posi�ve sales responses within target audiences. This sec�on introduces two alterna�ve perspec�ves on the process: hierarchy-of-effects models and the Elabora�on Likelihood Model.

Hierarchy-of-Effects Models

Hierarchy-of-effects models of communica�on include several conceptual representa�ons of how adver�sing elicits responses from an audience. This concept is "based on the premise that adver�sing moves individuals systema�cally through a series of psychological stages such as awareness, interest, desire, convic�on, and ac�on" (American Marke�ng Associa�on, 2012). Each step of the hierarchy represents a cogni�ve stage or mental state that the message recipient must move through before deciding to purchase the adver�sed brand. Each step represents a response hurdle or threshold that must be overcome for the ad to be effec�ve in persuading a prospect to buy.

Although several models have been proposed, they typically share four common steps, as shown in Figure 11.1: awareness, interest, desire, and ac�on.

Another characteris�c that hierarchy-of-effects models share is that the propor�on of prospec�ve buyers remaining subject to the influence of the adver�sement declines as the audience moves through each of the stages. That is, each successive stage eliminates some percentage of prospects from considering the adver�sing message any further.

Awareness

The minimum requirement for any adver�sement to impact the a�tude or behavior of a message recipient is awareness. This represents the first hurdle or prerequisite that an ad must surmount to be effec�ve. If the brand is unfamiliar to the audience, building brand name recogni�on or awareness may be the primary objec�ve of ini�al messages within an adver�sing campaign. This is o�en accomplished through the presenta�on of simple messages with high levels of brand name repe��on.

Adver�sers have a vast array of techniques at their disposal to gain an audience's a�en�on. The use of a�rac�ve s�muli (babies, puppies, fashion models, humor, ac�on, exci�ng spor�ng events, etc.) can momentarily secure the a�en�on of many viewers. However, for the ad to create brand awareness, these uncondi�oned s�muli must be successfully paired in the viewer's mind with the brand being adver�sed. This principle of classical condi�oning was introduced in Chapter 5. The brand itself must be featured as the focal point of the message and not get lost by the impact of the a�en�on- ge�ng devices. This problem plagued early adver�sements that featured a finicky cat named Morris. Everyone seemed to recognize and like the persnickety cat that was very par�cular about the food he ate. They remembered the an�cs and plot lines for the short Morris-the-Cat vigne�es that went into the 30-second television ads. But rela�vely few people remembered the brand name of the cat food. Morris is s�ll the official spokesman for the brand a�er more than 40 years on television, and his face is s�ll on the product packaging (Del Monte Foods, 2012). But can you name the brand he represents?

Interest

Simply being aware of the adver�sement at a rela�vely low level of a�en�veness can effec�vely make prospec�ve customers aware of the seller's brand name. However, a deeper level of involvement with the message is required to make the prospect interested in what you have to say. Consequently, once an audience's a�en�on is ini�ally captured, the next objec�ve is to convey informa�on or images that relate to the target audience's product-related wants and needs. In a sense, the goal at this stage is for the adver�sement to convince the recipient that what it has to say is worth the audience's �me and commitment.

Con�nuing with the Morris the Cat example, the brand name behind this celebrity feline is 9 Lives cat food. If the use of the world's most finicky, yet adorable, cat is ini�ally successful in capturing the audience's a�en�on, the brand then needs to provide informa�on of interest and direct relevance to the prospec�ve customers. If the target audience is new cat owners, then informa�on on the nutri�onal needs of cats and corresponding characteris�cs of 9 Lives Daily Essen�als would be appropriate. For the owners of older cats, messages related to the par�cular benefits of the Long Life or Plus Care lines would be of greater interest.

Desire

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Once the target audience has acquired informa�on about the brand, the ques�on remains: Based on the adver�sement, do they like it? Well-designed ad messages seldom alienate prospec�ve customers, but most of them fail to create a real desire to purchase the brand. Crea�ng an ini�al preference for the brand over others in the category is a very lo�y goal for an adver�sing campaign. However, if consumers are unfamiliar with the specific brands within a category, a tenta�vely posi�ve impression and specula�ve level of preference may be enough to prompt a trial purchase. If the buyer a�ends to the message and perceives a close fit between his or her product-related needs and the promises made by the brand being adver�sed, this is a feasible outcome.

Think About It

Let's consider the odds against adver�sing. Several formula�ons of the hierarchy-of-effects model include provision for the sta�s�cal likelihood of moving from one stage to the next. Assume that you have 100,000 cat owners in a television audience of 1 million.

What is the likelihood or probability that cat owners would pay a�en�on to your ad? Fi�y percent? So now you have 50,000 prospects. What is the likelihood that any one of those 50,000 will have an interest in cat food that specifically promotes the urinary tract health of older cats? Ten percent? So now you have 5,000 prospects. How many of them would cross the threshold from interest to desire to buy this brand a�er seeing the ad? Five percent? That leaves you with 250 prospects from the ini�al audience of 1 million viewers. How many of them are likely to follow through and remember to buy the product the next �me they're shopping for cat food? If you spent $3.5 million for the 30-second message on television to reach the total audience of 1 million, how good is your return on investment likely to be?

In what ways is this one isolated example likely to underes�mate the poten�al power and value of adver�sing?

Ac�on

If an adver�sement has been successful in moving some members of the target audience through the first three stages of the hierarchy of effects, a significant por�on of these prospects is available to purchase the adver�sed brand. The probability of following through with this inten�on usually increases with successive exposures to the same or similar messages.

Marke�ng managers need to be realis�c and some�mes skep�cal when considering the sales poten�al that is directly a�ributable to an adver�sing message or campaign. To bolster the impact of adver�sing, sales promo�ons (e.g., coupons, sweepstakes) are some�mes used to s�mulate the desire for a product when the core adver�sing message is ineffectual or the brand is difficult to differen�ate from compe�tors.

Arriving at this final stage of the model requires that consumers have become aware of the featured brand, grown interested enough to a�end to its unique benefits, and developed the desire to buy the brand. The fundamental principle underpinning the hierarchy-of-effects models is that a�tudes toward brands are ini�ally shaped and subsequently altered by an adver�sement's ability to lead a prospect through this sequence of cogni�ve steps or hurdles. The model requires that the cogni�ve ac�vity required to overcome the obstacle posed by each stage be completed before progress to the next level is possible. Ul�mately, hierarchy- of-effects models assume that persuasion is con�ngent on learning and recalling specific informa�on from an adver�sement. An alterna�ve model for understanding how adver�sing communica�ons work to impact buyers' a�tudes is the Elabora�on Likelihood Model.

Elaboration Likelihood Model

The Elabora�on Likelihood Model (ELM), depicted in Figure 11.2, proposes that there are two dis�nct paths by which an adver�sement may persuade a prospec�ve customer: central route and peripheral route (Pe�y and Cacioppo, 1986). The central route to persuasion closely resembles the hierarchy-of-effects model insofar as it requires the though�ul evalua�on of the message contents. It is some�mes called the high involvement route since it requires the ac�ve cogni�ve par�cipa�on or message elabora�on on the part of the receiver. It is opera�ve when the audience is mo�vated to pay a�en�on to the adver�sement and acquire meaning from it.

Figure 11.2: The Elabora�on Likelihood Model

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The Elabora�on Likelihood Model of persuasion illustrates alterna�ve paths to shaping a�tudes via the central route and peripheral route.

h�p://mypages.valdosta.edu/mwhatley/7670/ac�vity/a�tude.htm4 (h�p://mypages.valdosta.edu/mwhatley/7670/ac�vity/a�tude.htm)

The peripheral route is engaged if the audience responds to the message based on cues in the adver�sement other than the rela�ve merits or quality of the arguments or concepts being presented. This would be the case if someone looking at a magazine adver�sement for nonprescrip�on pain relievers found the claims made for the brand to be credible based on the photo of a dis�nguished looking man in a white coat seated in front of a microscope. The image has no direct bearing on the product claims. However, if the illustra�on of scien�fic research makes the reader trust the message, this result is due to these cues in the ad rather than the informa�onal content of the message.

Many types of peripheral cues may influence an audience's response to an adver�sed product. These include the use of a�rac�ve and expert spokespeople. The use of cultural celebri�es and athletes as either implicit or explicit product endorsers can make the message more impac�ul. Similarly, babies, puppies, and ki�ens can also make a posi�ve impression. Pleasant sensory s�muli such as landscapes, fine art, and music can also be used. The number of concepts or arguments presented in an ad, rather than the content of those arguments, can also impact the persuasiveness of an adver�sing message.

In contrast to the rela�vely high level of involvement evident in the central route, the peripheral route is engaged when the audience lacks the mo�va�on to ac�vely think about the informa�on content of the message. In some instances, a�tude shi�s are a�ributable to the repeated pairing of the brand with a posi�ve sensory or emo�onal s�mulus via classical condi�oning.

The persuasive power related to each alterna�ve route is substan�ally different. A�tudes that are shaped or changed via the central route tend to be more persistent, more resistant to the effects of compe�ng adver�sing claims, and more directly predic�ve of actual buying behavior (Pe�y and Cacioppo, 1986). A�tude shi�s that result from peripheral route processing tend to be weaker and less reliable over �me, since the changes are based on non-product-related cues within the ad. The lack of involvement or audience mo�va�on associated with the peripheral route also contributes to the rela�ve weakness of these effects.

However, the significance of a�tude change facilitated via the peripheral route should not be dismissed. As discussed in Chapter 5, consumers learn a great deal about the brands they buy via classical condi�oning. The repeated pairing of favorably viewed s�muli with the adver�sed brand can make significant contribu�ons to establish the brand's market posi�on independent of the brand's performance a�ributes and characteris�cs. The rela�ve significance of peripheral route persuasion to the successful posi�oning of a brand is also enhanced by consumers' general lack of interest adver�sements. Consequently, a�tude change strategies that can be effec�ve even when buyer involvement with the message is low are important strategy op�ons.

The value of the ELM of adver�sing effec�veness lies primarily in its recogni�on of the two alternate routes to persuasion. It complements the tradi�onal hierarchy- of-effects models insofar as it explicitly recognizes that audiences do not necessarily have to be involved and ac�vely thinking about adver�sements for them to be persuasive. It acknowledges that adver�sing can be effec�ve, even when received passively—the way that most people engage most adver�sing. The final sec�on on the topic of adver�sing explores how to translate this understanding of how adver�sing works into specific guidelines on the design of effec�ve adver�sing programs.

Think About It

Consider the following adver�sements.

Which elements of each ad will be most effec�ve for an audience ac�vely engaged in central route processing of informa�on?

Which features would be more likely to influence people passively responding to the ads via the peripheral route?

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Associated Press

Associated Press

In Depth: Influen�al Works on Adver�sing Strategy

Two publica�ons from the 1980s have had an enduring and profound impact on the way marketers think about adver�sing strategy. Communica�on and Persuasion: Central and Peripheral Routes to A�tude Change (Pe�y and Cacioppo, 1986) introduced the Elabora�on Likelihood Model. This model addresses the ques�on of how audience involvement impacts adver�sing effec�veness and was discussed in the previous sec�on on the process of communica�on.

Posi�oning: The Ba�le for Your Mind (Ries and Trout, 1981) popularized the concept of product posi�oning as a fundamental objec�ve of the marke�ng process. The essen�al argument made by the authors is that marketers need to appreciate the limita�ons of mass media adver�sing and design messages that can be effec�ve within these constraints. They point to informa�on overload as the biggest challenge confron�ng brand managers. Consumers are simply overwhelmed by compe�ng mass media adver�sing messages and overcrowded markets that are populated by too many compe�ng brands. Compounding the effect of these unfavorable factors is that most consumers are simply not mo�vated to pay much a�en�on to product adver�sements.

The authors' solu�on to effec�vely promo�ng a brand within the context of all this noise is to focus on delivering simplified, easily understood messages that capture the vital essence or dis�nc�ve meaning of the brand in ways that break through the clu�er. This provides the basis for compe�ng for one's place, or posi�on, in the mind of the consumer. These simplified messages or themes provide the pla�orm from which to pursue all three of the primary goals of promo�ons: inform, persuade, and remind.

Many classic ad campaigns that ini�ally pursued this strategy long ago are s�ll in use today. Whea�es: Breakfast of Champions. Avis: We Try Harder. Seven-Up: The Uncola. BMW: The Ul�mate Driving Machine. Visa: It's Everywhere You Want to Be. Maxwell House Coffee: Good to the Last Drop. American Express: Don't Leave Home Without It. Maytag: The Dependability People. Can you think of any others?

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11.4 Designing Effective Advertising Programs Adver�sing is one of the most common and vital methods by which companies communicate with current and prospec�ve customers. It also represents a tremendous investment for many organiza�ons rela�ve to their size. Consequently, it needs to be designed to be as effec�ve and as efficient as possible. There is a wide array of step-by-step models to assist marke�ng managers in crea�ng effec�ve adver�sing programs. The one briefly presented here focuses on the five essen�al issues that a marke�ng manager needs to address when developing an adver�sing program blueprint for a specific brand. Those issues include specifying the target audience, establishing a budget, designing the message, selec�ng and planning media, and measuring results.

Specify the Target Audience

The deployment of adver�sing and other promo�onal resources for a given brand is dependent upon the strategic goals for market segmenta�on, product differen�a�on, and posi�oning. The marke�ng manager's understanding of the typical target customer's preferences and mo�va�ons provides the pla�orm developing an effec�ve adver�sing program. The first step in the process is to translate this understanding of the target market into a meaningful target audience descrip�on.

The target market profile developed through extensive and detailed market research usually provides more informa�on than can be meaningfully used in planning an adver�sing campaign. The target audience needs to be defined in terms that relate to the selec�on of both efficient adver�sing media and effec�ve adver�sing messages.

The target audience for an adver�sing campaign is typically defined in terms of market demographics and psychographics. Syndicated media ra�ng and research services such as The Nielsen Company, Simmons Market Research Bureau, and Mediamark Research provide data on several key audience demographics. These include sex, age, household income, marital status, educa�on, employment status, type of residence, and family size. If an adver�ser sought to reach a target audience composed of households with annual incomes greater than $70,000 and children under 5 years of age, the informa�on necessary to match a good adver�sing vehicle to this descrip�on is readily available. In addi�on to relying on syndicated data sources, the media outlets themselves readily provide detailed demographic and psychographic audience profiles to prospec�ve adver�sers.

Although psychographic data can be important to the selec�on of media, they are cri�cal to the development of adver�sing messages. The benefits that prospec�ve buyers are seeking from the brands they purchase are easily the most central considera�on when crea�ng the adver�sing message. However, other psychographic factors can be used to enhance our understanding of how consumers related to products. These factors include personality traits, social a�tudes, shopping habits, and other personal interests. Incorpora�ng this knowledge into the development of messages enables adver�sers to make the ad more personally relevant.

Think About It

Go to YouTube.com and select a television adver�sement at random. Watch the ad two or three �mes and pay careful a�en�on to the scene, se�ng, music, use of imagery, etc.

Based on your analysis, what psychographic considera�ons went into the development of this message?

Do you think they helped the adver�sement communicate more effec�vely with its intended audience?

Establish a Budget

Adver�sing budgets should be based primarily on the marke�ng and communica�on goals for the brand. However, planners also need to recognize that the funds allocated to adver�sing need to be treated as an investment against future sales rather than simply a cost of doing business. The level of expenditure should reflect an understanding of the cause-and-effect rela�onship between adver�sing expenditures and the consequent impact on brand awareness, posi�oning, and sales. Ideally, marke�ng managers would like to know what is being gained from each dollar spent on adver�sing.

Several types of considera�ons should be reflected in the process of se�ng promo�onal budgets. These include the prevailing intensity of compe��ve rivalry, growth rates within the product category, and level of brand loyalty within the target audience. Ul�mately the ques�on that needs to be answered is how an investment in adver�sing can improve the brand's posi�on rela�ve to consumer preferences and increase sales.

There are several methods that can be used to facilitate the budget se�ng process.

The percentage of sales method is commonly used, par�cularly by small businesses. This simple method only requires the adver�ser to assign a fixed percentage of either past or an�cipated sales and allocates those funds to adver�sing. The percentage is o�en chosen to achieve propor�onal parity with budgets for rival brands. However, this conserva�ve approach fails to explicitly consider the objec�ves of the adver�sing campaign and may stunt market share growth by failing to recognize greater sales poten�al. A closely related variant of this method is simply to decide on an appropriate amount to allocate toward adver�sing each unit to be sold and mul�plying this figure by the number of units an�cipated to sell.

The objec�ve and task method is favored by most large companies. Though it can take many forms, the basic premise is to fit adver�sing expenditures to overall marke�ng objec�ves. And although correct in principle, the prac�cal limita�on of this approach is that it requires determining the level of adver�sing investment required to achieve specific goals. This task increases in difficulty when the firm lacks experience in a given market or is confron�ng an unusually vola�le

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Adver�sements frequently play on our emo�ons—the most common being fear, sexual a�rac�on, and humor. Can you tell what emo�ons these ads play to?

compe��ve environment. The level of adver�sing required to achieve market share targets, for example, will depend in part on how aggressively the brand's closest rivals pursue the same objec�ves.

The compe��ve parity method sets spending at an amount propor�onate to one's closest compe�tors. Brand market shares are o�en used to establish the budget ra�os. The logic underpinning this strategy is that if spending for a brand is comparable to that of its compe�tors, it can defend the status quo within the market. Though unconven�onal, this type of strategy can be appropriate at �mes, par�cularly in la�er stages of the Product Life Cycle.

The all available funds method—in which the firm devotes all financial resources not specified for other purposes to adver�sing—is an aggressive and risky approach to se�ng promo�onal budgets. Though not uncommon for startup businesses trying to increase brand awareness, it sacrifices alterna�ve uses of funds (e.g., product development, acquiring new technologies, hiring specialists) and makes the company more vulnerable to unexpected problems. On the other hand, the pursuit of this strategy some�mes reflects market condi�ons where the an�cipated rate of return on adver�sing expenditures is very high.

Design the Message

Although the crea�ve work of designing adver�sing messages for large organiza�ons is o�en assigned to specialists at adver�sing agencies, marke�ng managers need to be very involved clients. They must provide the direc�on to crea�ve specialists by specifying the objec�ves of the campaign. Working within this role, it is essen�al to know the answer to two ques�ons: What change is the adver�sement intended to make in the minds of the audience and by what route is that change expected to take place?

The ques�on of specific posi�oning-related goals has been addressed extensively throughout this chapter. The inten�on of the adver�ser is to improve the perceived fit between the needs of the prospec�ve buyer and the benefits or a�ributes associated with the purchase of the brand. This may include the need to build brand awareness, change percep�ons of brand performance, or simply enhance the overall percep�on of the brand's image. Whether the adver�sement is expected to accomplish its goals via the central or peripheral route has a profound bearing on how the message should be designed. In general, the crea�ve design of all adver�sing messages is based on one of two appeal types: informa�onal appeals and emo�onal appeals.

Informa�onal adver�sing appeals relate primarily to the ELM central route to persuade the audience by emphasizing facts and arguments about the brand being sold. The strategy behind the message is to rely on cogni�ve reasoning and thinking to convince someone to agree with the point that the ad is making. This approach is some�mes referred to as either the ra�onal or logical approach since it relies on the though�ul considera�on of a mo�vated recipient. The informa�onal appeals that are most commonly used in adver�sing campaigns stress the specific product features and benefits of greatest direct relevance to the audience. Making the content personally relevant is likely to increase the viewer's involvement with the message being delivered.

Bloomberg/Ge�y Images

PR Newswire/Associated Press

Emo�onal adver�sing appeals relate primarily to the ELM peripheral route to persuade the audience by using both words and images to evoke an emo�onal response. Most o�en this type of adver�sing message tries to relate the product and brand being sold to the audience's basic psychological needs. These essen�al

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human desires include safety, acceptance, interpersonal interac�on, love, happiness, and beauty. Simple messages make a promise to the audience that the featured brand can make their lives be�er in ways that relate to these needs. In contrast to informa�onal appeals that seek to provide specific ra�onale to support the purchase of the brand, emo�onal appeals are not ra�onal. They rely on the percep�on of posi�ve associa�ons between the adver�sed brand and other s�muli within the message. Among the emo�ons most commonly used in these types of ad campaigns are fear, sexual a�rac�on, and humor.

The tempta�on is to draw a sharp and inviolable dis�nc�on between the two routes to persuasion and to assign each of the two types of appeals exclusively to one of these alterna�ves. However, this would not be accurate. Humor, for example, can be a very effec�ve basis for making a posi�ve brand impression via the central route to persuasion. Conversely, no�ng the impressive appearance of a list of reasons to buy a given brand may influence a prospect's a�tude toward the adver�sed brand via the peripheral route.

Select and Plan Media

Media alterna�ves from broadcast, print, and online sources are evaluated according to their capacity to reach an audience efficiently. Managers assess alterna�ve media channels by comparing their associated costs of reaching 1,000 viewers, readers, or listeners. This cost-per-thousand (CPM) ra�o is computed by mul�plying the adver�sing cost �mes 1,000 and dividing by the total audience.

However, not all television programs, magazines, radio broadcasts, and websites have comparable audiences. Consequently, the ability of each op�on to efficiently reach the target customer for a given brand is dependent on the composi�on of the audience. Based on the demographic and psychographic profile developed for the brand, each alterna�ve adver�sing channel or vehicle can be evaluated based on the cost-per-thousand prospects (CPM-P).

In addi�on to iden�fying the most efficient media alterna�ves, media planners need to develop adver�sing schedules based on reach (R) and frequency (F). Reach is simply the number of different or unique prospects (individuals or households) that is exposed to a given adver�sement over a specified interval. The most commonly used �me frame is four weeks. Frequency is the average number of �mes that an average prospect will be exposed to the ad over the same �me period. When mul�plied (R x F) to provide an assessment of the overall impact from a series of adver�sements over a specific period of �me, the resul�ng measure is referred to as gross ra�ng points (GRP). Media planners can define the communica�on objec�ves for a given media plan using these three interrelated measures.

Reach targets are set to reflect the ad campaign's goal in terms of the total number or percentage of prospects intended to receive the marke�ng communica�on. It is most o�en expressed as a percentage of the total target audience. If a media plan is designed to reach 25 percent of the total poten�al target audience for a brand over a four-week period, it has a reach of 25. Reach measures the accumula�on of total prospects over �me.

Just as reach measures the level of message diffusion within the target audience, frequency illustrates the rate of message repe��on. In light of understanding how the central and peripheral routes of the Elabora�on Likelihood Model work, it is evident that some types of adver�sements require higher levels of repe��on than others to be effec�ve. For example, image-based ads intended to shape a�tudes via the repeated pairing of s�muli over �me (classical condi�oning) may require a high number of exposures per prospect to be effec�ve. Messages that require higher levels of repe��on per prospect to influence brand a�tudes via the peripheral route will require higher average frequency.

In prac�ce, media plans need to iden�fy the desired combina�on of reach and frequency. Higher reach goals mean that more people will be exposed to the message. Consequently, the scope of the ad's poten�al impact is expanded. Higher frequency may be a priority if rela�vely high levels of repe��on are required to achieve brand-specific goals. Gross ra�ng points reflect the combined weight of these two considera�ons. Given a limited budget, however, higher levels of one can be obtained only by sacrificing higher levels of the other.

A channel's ability to efficiently reach the target audience is not the only factor planners must consider when selec�ng media op�ons. Characteris�cs that are intrinsic to the nature of the media itself must be taken into account as well. Television, for example, is an excellent op�on when the combina�on of sight, sound, and mo�on is required to convey the essen�al a�ributes of product. Local and regional radio sta�ons offer excellent geographic selec�vity but cannot illustrate the performance of a sports car in the same way that television can. The Internet offers the poten�al for direct interac�on with customers in ways that cannot be matched by other op�ons. However, it provides limited opportuni�es to reach some older and poorer segments of consumer markets.

Effects of New Media on Adver�sing

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Digital video recorders enable viewers to quickly and easily skip over commercials as they watch television. Marke�ng experts assert that en�rely new strategies are necessary to reach young people with commercial messages. Which new avenues are marketers taking to promote their product?

Measure Results

For marke�ng managers, the most significant measurement of adver�sing effec�veness usually takes place in assessing the results of a whole campaign rather than an individual adver�sement. The basic measurement task requires assessing campaign outcomes against original objec�ves. Consequently, the meaningful assessment of an adver�sing campaign requires two sets of metrics: precampaign and postcampaign measures of the campaign's objec�ves.

Two levels or types of measurements are frequently used to evaluate campaign results. Communica�on tests refer to pre- and postcampaign comparisons on non- sales-related objec�ves. These could include goals such as increasing brand awareness, improving a�tude-related measures, or increasing the level of brand loyalty. Though not directly reflected by product sales, these types of factors are readily subject to direct measurement through the use of consumer ra�ngs.

Sales tests refer to the direct assessment of an adver�sing campaign's impact on brand sales. They reflect the need to recognize the significance of adver�sing expenditures as an investment in future sales and profitability. Though it may seem counterintui�ve, it can be more difficult to accurately gauge the sales effects of adver�sing than the communica�on effects, since sales are influenced by a wide range of factors unrelated to adver�sing. The behavior of compe�tors with respect to pricing, product distribu�on, and all forms of promo�on represent poten�ally confounding influences. Other environmental factors, such as extreme weather or momentous events, can also make it difficult to cleanly interpret the meaning of pre- and postcampaign sales data.

Despite the obstacles associated with measuring the impact of adver�sing, it is important to remember that the effec�ve and efficient management of adver�sing is essen�al to achieving brand objec�ves. This, in turn, is dependent on reliable informa�on; the rela�onship between communica�on and sales tests may help bridge the gap between short-term and long-term brand management issues. As suggested by the hierarchy-of-effects models, achieving the communica�on goals related to a brand (awareness, interest, desire) are prerequisites to the ul�mate goal of ac�on or sales. In some instances, the failure of a campaign to produce short-term sales improvements may mask its value in building the founda�on for improvements at a later date. If a campaign is able to build brand awareness and interest in the near-term, it is likely to pay sales dividends at a later date. Consequently, relying on both types of measures will enable marke�ng managers to make be�er decisions about the true costs and benefits of adver�sing.

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Customer service representa�ves assist customers who are having problems related to recent purchases. They make important contribu�ons to sa�sfying customers and building brand loyalty.

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Figure 11.3: Six-step model of the selling process

11.5 Personal Selling and Sales Management Personal selling spans the promo�ons and distribu�on elements of the marke�ng mix. As part of the promo�onal program, the message communicated by salespeople must be consistent and integrated with adver�sing, sales promo�ons, and public rela�ons. By directly serving the needs of channel intermediaries, the sales force provides a direct product distribu�on path to customers in many instances. In every instance, the sales force represents a cri�cal, personal link between the buyer and seller.

Although sales posi�ons fall into a wide range, it is useful to dis�nguish between four general classifica�ons of sales func�ons: new business development, current account maintenance, sales support, and customer service.

New business development refers to the process of conver�ng prospec�ve buyers into current customers. This is a challenging task in highly compe��ve markets, but an essen�al one. Individuals who are par�cularly effec�ve in bringing new customers to an organiza�on are typically very well compensated. In many businesses, once an ini�al sale with a new customer is closed, the responsibility for maintaining a produc�ve rela�onship with a sa�sfied customer is transferred to people specifically trained in account maintenance.

Current account maintenance, some�mes referred to as account management, is directly responsible for maintaining the majority of sales revenue in most business organiza�ons. This sales func�on is responsible for crea�ng sa�sfied, loyal customers. In most companies, sales representa�ves involved in account maintenance have frequent opportuni�es to introduce new product lines to current customers. A par�cularly important sales func�on for this category is trade selling. Trade selling is focused primarily on maintaining the support of distribu�on channel intermediaries. Rather than selling to final consumer markets, the primary ac�vity for sales representa�ves working in this area is to provide merchandising and promo�onal support for current customers. For some firms, this may include gaining the ini�al sales and product distribu�on support for new products.

Sales support describes several types of sales-related ac�vi�es intended to facilitate the selling ac�vi�es of other sales representa�ves. Groups in this category include technical specialists such as engineers and scien�sts who provide special product-related exper�se in industrial sales contexts. Another form of sales support is missionary selling. This refers to company representa�ves who provide product-related informa�on and advise prospec�ve buyers on the merits of the company's brands, but do not make sales. This prac�ce is most familiar in the pharmaceu�cal sales field.

Customer service includes a vast array of func�ons related to sales support and service to buyers a�er the ini�al sale. Company representa�ves working in this category primarily assist customers who

are experiencing problems or have ques�ons related to a recent purchase. Though not directly involved in sales, their contribu�on to promo�ng customer sa�sfac�on makes this an important sales-related func�on.

The Selling Process

The fundamental advantage that personal selling has over other promo�onal alterna�ves is that it is a personal and interac�ve method of communica�on. This enables the sales representa�ve to adjust and refine their message as they receive feedback from the prospec�ve buyer. The most poten�ally effec�ve salespeople are those who are best able to make the adjustments necessary to convincingly sa�sfy the objec�ons, ques�ons, and concerns raised by the customer. However, skilled sales reps can significantly improve their results by star�ng with the "right customer."

Beginning with the need to iden�fy the right customer, this sec�on iden�fies a six-step model of the selling process, as illustrated in Figure 11.3. To be clear, this is not a model about how to be a star salesperson; the focus here is to provide a model illustra�ng the steps involved in making a sale. Though presented as a step- by-step process, there are instances in which some steps are skipped or the successive order of stages is disrupted.

Prospec�ng

The first step in the process of selling is to iden�fy prospec�ve customers for your goods and services. Prospec�ng is the set of ac�vi�es required to iden�fy poten�al buyers and generate sales leads. From the outset, it is important to recognize that the first priority should be to find customers that represent the poten�al for long-term rela�onships. Working from an understanding of the target market, the sales representa�ve may rely on a variety of informa�on sources to acquire the names of poten�al leads.

The poten�al sources of informa�on for prospec�ng include referrals from current customers, suppliers, and other salespeople within the firm. Sales support and customer service representa�ves within the organiza�on o�en iden�fy poten�al prospects for field sales representa�ves. Other professional, business, and social contacts may also be valuable sources in the search for poten�al buyers. Impersonal sources used to generate sales leads include lists or directories from trade associa�ons and business groups. Internet searches can also provide a wealth of opportuni�es to iden�fy prospec�ve customers based on the specific a�ributes of the target market.

Qualifying the Prospect

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Though shown here as a step-by-step progression, the selling process can differ in number and order of stages.

Before contac�ng a poten�al buyer, sales representa�ves need to determine if the individual or company truly represents a worthwhile investment of �me and effort. Qualifying refers to the process of determining whether a sales lead has the poten�al to be regarded as a viable prospect. This is a cri�cal determina�on, since salespeople have limited �me to invest in the process of developing new customers. Salespeople must judge the value of the poten�al buyer rela�ve to several considera�ons.

Ideally, a sales lead can be ini�ally qualified or rejected by a salesperson prior to a first mee�ng based on company research. Otherwise-a�rac�ve poten�al customers can o�en be rejected at this preliminary stage based on two considera�ons. Customers whose financial situa�on makes them unable to afford or unlikely to pay for the product being sold are rejected without the need to inves�gate further. Upon closer inspec�on, some poten�al buyers are eliminated from further considera�on if they lack the basic produc�ve capacity, infrastructure, or other minimum standards required to make effec�ve use of the product.

Consider a salesperson evalua�ng a new lead for the sale of high-capacity industrial paint spraying equipment. The company may be ini�ally regarded as a poten�al customer because it operates a shop that applies custom finishes to earthmoving equipment. However, closer inves�ga�on may demonstrate that the type of powder coa�ng being applied is incompa�ble with the spraying equipment being sold. Alterna�vely, the custom finishes may be a rela�vely small part of the company's opera�ons and would not warrant making an expensive investment in a high-capacity system. However, in many instances, the judgments required to qualify a prospect cannot be made without contac�ng the poten�al customer.

Ini�a�ng Contact

Salespeople are o�en unable to fully qualify leads prior to making an ini�al contact; some informa�on required to form a judgment can only be acquired through direct interac�on. This preliminary stage of the selling process may include ini�al introduc�ons, e-mail exchanges, telephone conversa�ons, and face-to-face mee�ngs. The salesperson's goal is to determine as much relevant informa�on about the prospect as possible with as li�le �me investment as possible.

Salespeople will try to determine several things about the prospect's situa�on at this stage. Does the buyer have a need that our products and services can fill? Do our products suit this customer's unique needs and situa�on be�er than compe�tors' brands? Has the company recently purchased a comparable product from a compe�tor?

Acquiring as much informa�on as possible about how decisions are made is also of cri�cal importance to the steps that follow. This includes learning who the key decision makers are and who has the authority to approve purchases. Learning more about the culture of the company and its structure may also be useful. In many instances, the amount of effort required to make the ini�al contact and qualify a prospect can be comparable to the level of work required in the stage which follows: making the sales presenta�on.

Making the Sales Presenta�on

The sales presenta�on usually takes the form of a scheduled mee�ng where the salesperson a�empts to persuade the prospect to become a customer. Though the sales message is o�en built around the delivery of a prepared presenta�on, the occasion usually allows for an exchange of informa�on between the par�es. The formal, prepared elements of the sales presenta�on should serve as a pla�orm to illustrate the product's a�ributes and benefits in light of the seller's understanding of what the buyer needs. The interac�ve give-and-take exchange between the par�es enables both to refine their understanding of the poten�al fit between the product and buyer's requirements.

There are hundreds if not thousands of books on the art of selling and techniques for making persuasive presenta�ons. However, the demands of each market and each customer interac�on are unique. Consequently, developing a set of generic guidelines on the universally best sales tac�cs would be misleading. Nonetheless, the ability to listen to the concerns of the customer and adapt the content of the presenta�on to the situa�on is essen�al.

In many situa�ons, sales representa�ves do not an�cipate securing a commitment to buy from the prospect during the ini�al sales presenta�on. The first face-to- face mee�ng enables the seller to develop a personal rela�onship and rapport with the prospect. It can be an occasion to gather addi�onal informa�on about the buyer's needs and expecta�ons. It also provides the opportunity to gauge the prospect's genuine level of interest in the product being sold.

In most situa�ons, buyers will express concerns or raise ques�ons about the specifics of the proposi�on being presented. These objec�ons provide essen�al informa�on to sales representa�ves insofar as they iden�fy points of resistance or obstacles to making the sale. These objec�ons may be expressed verbally or evidenced in the prospect's body language. The ability of the seller to overcome buyers' objec�ons is not simply essen�al to eventually making the sale. Sa�sfying concerns raised by the buyer provides him or her with many of the most compelling reasons and persuasive arguments for buying the product.

Closing the Sale

Closing the sale refers to the point at which the salesperson a�empts to get a customer to commit to buying a product or service. If the customer is unwilling to make a commitment, the rela�onship may end at this point unless the seller works to keep the door open to further discussions. If the invita�on to close the deal is accepted by the prospect, the occasion marks the star�ng point for building an ongoing and mutually advantageous rela�onship.

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The ini�al interac�on with a prospec�ve customer usually determines the likelihood of making a sale.

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Understanding when to a�empt to close is among the salesperson's most difficult challenges. Even highly experienced professionals some�mes wait too long to ask for the order and lose the sale as their customer's enthusiasm or confidence starts to fade. Many sales representa�ves who are uncertain of the best �me to close the deal will use a trial close.

A trial close is a technique used by salespeople to assess the buyer's readiness to make a purchase decision. It o�en begins by solici�ng the buyer's agreement on minor selling points such as dates of delivery or credit terms. If the salesperson gets a posi�ve response to these ques�ons, he or she can be more confident in moving the buyer closer to making a commitment on the final sale. It is a low- risk strategy in the sense that a nega�ve response does not terminate the discussion.

Think About It

Imagine that you're at a big-box electronics store talking to a salesperson about buying a new television set. A�er you seem to have iden�fied the one you like best, she could simply try to close the sale by asking if you would like to buy it. Do you think that happens very o�en?

Isn't she more likely to ask if you'd like to take it home yourself or have it delivered? Or which room you think you'll put this set in? If you think this will look great in your living room? Or if you can imagine how much you'll enjoy watching the World Series on this television?

Retail salespeople rely on trial close techniques quite a bit. Why do you suppose they do that?

Maintaining Rela�onships

The ini�al sale to a new customer should be seen as a customer sa�sfac�on challenge. Though it certainly represents current, one-�me revenue for the firm, this transac�on also holds the poten�al for subsequent sales to a loyal customer if the seller is able to reliably deliver on the promises that closed the ini�al sale. For this reason, this final stage in the model can be thought of as the star�ng point for the next sale. In simplest terms, checking back with customers to be certain they are sa�sfied is a fundamental obliga�on that companies o�en relegate to their customer service personnel. In many circumstances, however, it is desirable to have the salesperson who reached the agreement with the buyer maintain personal contact to be sure he or she is sa�sfied with the product purchased.

The level of customer service that is required to keep customers happy varies substan�ally with the product being sold. Complex, technical purchases that require expert installa�on or training may call for extensive interac�on between the company's sales staff and the client long a�er the actual transac�on has closed. Support for the sale of simpler products, however, can o�en be handled through exis�ng customer service channels. In either case, crea�ng opportuni�es to reinforce a posi�ve rela�onship with the buyer promotes a sense of confidence in the seller and brand loyalty. This, in turn, generates opportuni�es for future sales that are advantageous to both par�es.

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The effec�ve training and ongoing development of the sales staff is essen�al to the long-run success of the firm.

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11.6 Organizational Sales Structure A company's sales force provides a personal connec�on to current and prospec�ve customers. It is literally the face of the organiza�on. For many firms, the costs associated with crea�ng and maintaining their own full-�me sales teams claim a substan�al por�on of the revenue generated from product sales. For all of these reasons and others, the efficient recruitment, training, and deployment of the sales force is essen�al to the survival and success of the firm.

The design of the sales organiza�on within any firm reflects the strategic priori�es of the company. The primary criterion driving the choice of organiza�onal sales models is the efficient and effec�ve alloca�on of the sales effort. The three most common op�ons for arranging and coordina�ng the company's sales force organiza�on are by product, by geographic territory, and by customer type.

A product-driven sales structure is common within firms that manufacture a range of complex products. High-tech and medical equipment companies, for example, are likely to organize salespeople according to the products they sell. This places a primary emphasis on making certain that each salesperson has the requisite technical knowledge and product familiarity to sell effec�vely. The primary disadvantage associated with this approach is that requiring sales reps to specialize on selling only one product or product type creates redundancy of effort as several salespeople o�en must serve the same account.

A geographic territory-driven sales structure is a very common design in which each representa�ve is assigned to an exclusive territory. Consequently, each individual is responsible for performing a wider array of sales tasks across a broader spectrum of company products than is typical of product-driven models. However, this also allows for the designa�on of smaller sales territories and lower travel-related expenses, and it enables salespeople to become be�er acquainted with their customers. In the interest of promo�ng equity between sales representa�ves, territories are usually created to provide either roughly equal sales poten�al or equivalent workloads.

A customer-driven sales structure organizes the sales force according to industry or customer type. In contrast to the product-driven model, the primary emphasis in this system is that it permits salespeople to become experts in different segments of the markets the company serves. The objec�ve behind this approach is to make each individual sales rep an expert in the unique needs and expecta�ons of one type of buyer. This approach is par�cularly a�rac�ve in markets where buyer preferences and requirements tend to shi� substan�ally over �me. However, this design also tends to create the poten�al for very large sales territories and high travel-related costs if customers are widely dispersed.

Sales Force Recruitment and Training

The successful applica�on of any of these designs is fundamentally dependent on the caliber of the salespeople recruited and trained by the organiza�on. In fact, the survival of many organiza�ons is dependent on the effec�veness of the sales force. Despite these high stakes, there are few generaliza�ons that can be drawn about the personal characteris�cs or personality traits that make a good salesperson. Instead, the best type of person for a specific sales posi�on will depend on the unique demands of the situa�on.

Different types of selling require different sets of abili�es, skills, and character traits. Some of the most effec�ve people involved in new business development are o�en persuasive, confident, ambi�ous, and aggressive. These quali�es contribute to their poten�al for success in conver�ng prospects into customers. However, customer services salespeople need to be emo�onally steady, pa�ent, and empathe�c. By contrast, sales support staff members need to rely on technical knowledge and product-specific training. An ap�tude for learning and innate intelligence are among the traits that will make them most effec�ve in facilita�ng the selling ac�vi�es of other sales representa�ves in the field.

Recruiters need to have a clear sense of the criteria that are most appropriate to use when evalua�ng applicants for the sales force. Feedback from current buyers can help to iden�fy the selec�on criteria that directly relate to developing effec�ve customer rela�ons in different contexts. Cri�cally evalua�ng the traits and qualifica�ons of the most successful salespeople within the firm can also provide useful inputs. A�er reconciling these sets of informa�on, companies should carefully evaluate the unique requirements of the vacant posi�on to fine-tune their selec�on criteria.

The process of recrui�ng may include building a list of referrals from knowledgeable sources both within and outside the organiza�on. Large firms o�en rely on professional employment agencies such as the Robert Half Agency and KAS Sales Recrui�ng to develop and evaluate an ini�al pool of applicants. Many recruitment firms and human resources departments within large corpora�ons also require applicants to complete wri�en examina�ons to provide an assessment of job-related personality traits. As with all vacant posi�ons, employers also give due considera�on to personal references, employment history, and interview performance as well.

Formal sales training is essen�al to make sure that all salespeople within the organiza�on are equipped with the product knowledge and sales skills to represent the company effec�vely. This applies to the veteran salespeople within an organiza�on just as it does to newly hired employees. The expense and �me invested in sales training differs substan�ally between companies and industries. More startup and ongoing training is required for individuals expected to sell complex products that compete in highly dynamic markets. In addi�on to learning about the company and its products, all salespeople need to understand their compe�tors and their products if they expect to provide the customer with superior value.

Sales Force Compensation

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A key ingredient to a�rac�ng outstanding salespeople to work for an organiza�on is the compensa�on package. Most sales representa�ves who work in new business development and current account maintenance are compensated under one of three types of plans: straight salary, straight commission, or a combina�on of salary plus commission.

A straight salary compensa�on plan provides the salesperson with a reliable, stable source of income that he or she can depend on receiving on a regular schedule. This is most appropriate when the company expects the representa�ve to spend a significant por�on of work �me on nonselling ac�vi�es. It also reduces the likelihood of the sales rep inten�onally overstocking customers' inventories for the sake of earning more money from sales commissions in the near term.

Straight salary is o�en favored for situa�ons in which it is difficult to specifically assign product sales to individual sales reps. This would be the case, for example, in missionary selling, where company representa�ves provide informa�on, advise buyers, and facilitate the sale for others to actually close. This would also apply any�me that mul�ple salespeople are working with a customer or sales are rou�nely being made on a referral basis.

The fundamental disadvantage to straight salary plans is that compensa�on is not directly linked to selling performance. Although year-end bonuses and annual salary increases can be �ed back to the individual's overall performance, it is essen�al that all par�es understand how that performance will be measured.

A straight commission compensa�on plan rewards salespeople exclusively on the basis of either unit or total dollar sales volume. It provides a focused mo�va�on restricted only to sales performance and is most appropriately used when aggressive selling behavior is desired. Posi�ons adver�sed with this type of compensa�on package may be more likely to a�ract high-performing, ambi�ous sales professionals than other types of plans. Although this approach provides an unambiguous incen�ve to maximize sales produc�vity, it can have some undesirable consequences.

Given the straigh�orward incen�ve structure, management tends to have rela�vely li�le control over the behavior of the salesperson. Ac�ng exclusively on the basis on self- interest, he or she may not be willing to take the �me required to convert difficult prospects into customers. Similarly, he or she may neglect making follow-up calls a�er a sale even when this prac�ce is essen�al to establishing las�ng rela�onships between the buyer and seller. Some salespeople working on a straight commission basis may also be inclined to focus their efforts on maximizing sales to the current customer base rather than prospec�ng for new leads.

Combina�on compensa�on plans are the result of mixing salary plus commissions. This approach is very a�rac�ve to both employers and their sales reps to the extent that it can effec�vely retain the best characteris�cs and overcome the worst limita�ons of the straight salary and straight commission alterna�ves. Combina�on plans usually include the payment of bonuses as well for sales performance levels that exceed preestablished goals or quotas. It has been es�mated that some form of a combina�on plan is used in about 68 percent of all sales forces (Spiro, Stanton, and Rich, 2002).

Combina�on plans provide a stable base income to the employee in recogni�on of non-selling ac�vi�es while also rewarding strong sales performances via the payment of sales commissions. Flexibility in designing the mix of incen�ves from these two streams of income gives management the means to adjust the rela�ve importance of sales and non-selling tasks for the salesperson. That is, increasing the salary component should signal a shi� toward suppor�ng more non-selling- related ac�vi�es for that period. Conversely, increasing commissions should mo�vate the employee to pursue higher sales objec�ves.

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Ch. 11 Conclusion Although the elements of the marke�ng mix are necessarily interrelated in the planning and execu�on of marke�ng programs, there is a unique linkage between the promo�ons mix and product distribu�on strategy. As discussed in the next chapter, adver�sing can play a significant role in genera�ng demand at the retail level, thereby crea�ng an incen�ve to "pull" product through the channels of distribu�on. Alterna�vely, aggressive selling and the use of sales promo�ons aimed at channel intermediaries can effec�vely "push" a product through channels to the retail product markets.

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Ch. 11 Learning Resources

Key Ideas

Cri�cal Thinking Ques�ons

1. What role does the promo�ons mix play in execu�ng the posi�oning strategy for the brand? How does this differ from B2B markets to B2C markets? 2. What does it mean to "integrate marke�ng communica�ons"? Why is this important to achieving the promo�onal objec�ves for the brand? 3. What is the rela�onship between the product differen�a�on and the promo�ons mix? Now for the tougher ques�on: How does the promo�ons mix relate to the

market segmenta�on decisions made for a brand? 4. Imagine that a na�onal television news report has iden�fied your company as one that exploits child labor in underdeveloped na�ons. It isn't true, and you're

commi�ed to se�ng the record straight. Explain the nature of the rela�onship between publicity and public rela�ons in this situa�on. 5. Due to the ill-advised use of cents-off coupons in the Sunday newspaper every other week for nine months, you've essen�ally trained customers not to buy your

brand unless they have a coupon for it. How can you reverse this situa�on and undo the damage? 6. Coke and Pepsi spend billions of dollars annually adver�sing their brands. Why? Is it because it's possible that there's s�ll someone out there who hasn't heard of

Coca-Cola? 7. Assume your best friend sees what you're reading and challenges you with the following statement: "You know, I have never been influenced by an adver�sing

message." Explain how the hierarchy-of-effects models might support that asser�on. Explain why the Elabora�on Likelihood Model provides reasons to doubt that claim.

8. Se�ng adver�sing budgets is difficult. The percentage of sales, objec�ve and task, and compe��ve parity methods can all begin from the same star�ng point and lead you to very different conclusions. Explain what factors might cause you to get big differences in the results you obtain from applying all three methods in the same situa�on.

9. In discussing how to measure the results from an adver�sing campaign, two alterna�ve types of tests were introduced: communica�on tests and sales tests. The clients served by adver�sing agencies are always eager to see the sales test results. But many people on the agency side of the rela�onship are more likely to use adver�sing recall measures to assess the success of a campaign. Under what circumstances would it be more useful to see how many people remembered your ad than to look at the change in your sales over the period in which the adver�sement was airing?

10. Many popular sales coaches over the past 30 years have taught that good salespeople need to learn to love the word "no." What do you suppose they mean by that?

11. Consider the four types of sales func�ons described in the chapter: new business development, current account maintenance, sales support, and customer service. Based on your assessment of the personality types best suited to performing these roles, which is the most a�rac�ve to you? The least? Why?

12. Consider the three types of compensa�on plans discussed in the chapter: straight salary, straight commission, and a combina�on of the two. Under which of these schemes do you think you would be most produc�ve? Happiest? How does your answer to this ques�on relate to your response to the ques�on above? Is there a conflict? Why?

13. The term "prospec�ng" is used to describe the process of iden�fying poten�al customers for your goods and services. Many people think of gold miners and oil well drillers when they hear the term. Why would these be good or poor analogies to describe what sales prospec�ng is all about?

14. It's been said that personal selling is more faithful to the true meaning of the marke�ng concept than all other forms of promo�on. Do you agree? Why?

Key Terms

Click on each key term to see the defini�on.

adver�sing (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Any paid form of nonpersonal communica�on between a seller and poten�al buyers.

SLIDE 1 OF 18

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all available funds (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Allocates all financial resources not specifically allocated to other purposes to the adver�sing budget.

communica�on tests (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Pre-versus post-campaign comparisons on non-sales-related measures.

compara�ve adver�sing (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Adver�sing messages that make explicit contrasts between brands of the same product.

compe��ve parity (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Sets adver�sing spending at an amount propor�onate to that of one's closest compe�tors.

cost-per-thousand (CPM) (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Cost associated with of reaching 1,000 viewers, readers, or listeners.

cost-per-thousand prospects (CPM-P) (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Cost associated with of reaching 1,000 prospects for the brand being adver�sed.

current account maintenance (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

The process of keeping current buyers sa�sfied.

customer service (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

A wide array of func�ons related to sales support and service to buyers a�er the ini�al sale.

Elabora�on Likelihood Model (ELM) (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

A representa�on of how adver�sing works via two alterna�ve paths mediated by audience involvement with the message. The central route requires the though�ul evalua�on of the message contents to be persuasive. The peripheral route is poten�ally effec�ve when the audience is not mo�vated to process the informa�onal content of the ad.

emo�onal adver�sing appeals (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Message content that emphasizes words and images to evoke an emo�onal response.

frequency (F) (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

The average number of �mes that an average prospect will be exposed to a given adver�sement over a specified interval.

gross ra�ng points (GRP) (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Reach �mes frequency (RxF).

hierarchy-of-effects models (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Representa�ons of how adver�sing messages move an audience through a progressive sequence of psychological stages such as awareness, interest, desire, convic�on, and ac�on.

informa�onal adver�sing (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Appeals message content which emphasizes facts and arguments.

4/16/2019 Print

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Integrated Marke�ng Communica�ons (IMC) (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Coordina�on of the promo�ons mix to achieve the communica�ons objec�ves of the product or service being sold.

missionary selling (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Providing product-related informa�on and advice to prospec�ve buyers without any expecta�on of making a sale.

new business development (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

The process of conver�ng prospec�ve buyers into current customers.

objec�ve and task (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

A media budget se�ng method that works by matching adver�sing expenditures to the corresponding marke�ng objec�ves for the campaign.

pantry management (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Providing incen�ves to consumers to encourage them to stock up on several purchase cycles' worth of a product for the purpose of preven�ng compe�tors' brands from selling.

percentages of sales (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

A budget se�ng method that allocates fixed percentages of either past or an�cipated sales adver�sing media.

personal selling (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Personal interac�ons between company representa�ves and prospec�ve customers for the purpose of facilita�ng current and future sales.

persuasion (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Changing a person's a�tudes by means of promo�onal messages.

promo�ons mix (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

The communica�on techniques available to marketers. These include adver�sing, personal selling, sales promo�on, public rela�ons, and publicity.

prospec�ng (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

The of ac�vi�es required to iden�fy poten�al buyers and generate sales leads.

public rela�ons (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Nonpaid, impersonal communica�ons sent out by news media or other vehicles outside the control of the seller.

qualifying (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

The process of determining if a sales lead has the poten�al to be a viable sales prospect.

reach (R) (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

The number of unique prospects that is exposed to a given adver�sement over a specified interval.

reminder adver�sing (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Ads intended to keep familiar products readily available in the minds of consumers.

sales support (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

4/16/2019 Print

https://content.ashford.edu/print/AUBUS620.12.1?sections=ch11,ch11introduction,sec11.1,sec11.2,sec11.3,sec11.4,sec11.5,sec11.6,ch11conclusio… 27/27

Sales-related ac�vi�es intended to facilitate the ac�vi�es of other salespeople.

sales tests (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Pre-versus postcampaign comparisons of brand sales.

trade selling (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

Sales ac�vi�es focused on maintaining the support of distribu�on channel intermediaries.

trial close (h�p://content.thuzelearning.com/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12.1/sec�ons/front_ma�er/books/AUBUS620.12

A technique used by salespeo�ple to help determine the buyer's readiness to purchase.

Web Resources

The online home for Adver�sing Age, the leading trade publica�on for professionals in all phases of adver�sing. This site provides comprehensive coverage of the industry via both paid and free services. It also provides access to the Adver�sing Age Datacenter. This feature provides limited free access to a range of adver�sing-related databases and resources. h�p://www.adage.com (h�p://www.adage.com)

A website sponsored by the Adver�sing Educa�onal Founda�on. This site includes free access to examples of award-winning adver�sements, excerpts from adver�sing books published in the business press, case histories, and informa�on about careers. h�p://www.aef.com (h�p://www.aef.com)

A website maintained by the trade publica�on Sales and Marke�ng Management magazine. The site includes reprints of ar�cles from the print version of the magazine, webcasts, e-newsle�ers, case studies, white papers, and other resources of direct relevance to professional selling. h�p://www.salesandmarke�ng.com (h�p://www.salesandmarke�ng.com)

A special sec�on of the Entrepreneur.com website devoted exclusively to strategies for crea�ng and delivering effec�ve sales presenta�ons. h�p://www.entrepreneur.com/ar�cle/222405 (h�p://www.entrepreneur.com/ar�cle/222405)