1. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 10-1

2. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-2 Chapter 10

3. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Advertising is an investment in a company’s future  Build brand equity  One of the first steps is to define a company’s unique selling proposition 10-3

4. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Unique selling proposition (USP): a key customer benefit of a product or service that sets it apart from its competition  Answers the critical question that every customer asks: "What's in it for me?"  Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides  Focus on intangible or psychological benefits 10-4

5. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Promotion: any form of persuasive communication designed to inform consumers about a product or service and to influence them to purchase goods or services  Includes:  Publicity  Personal selling  Advertising 10-5

6. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Publicity: any commercial news covered by the media that boosts sales but for which the small business does not pay 1.Write an article of interest to customers 2.Sponsor an event to attract attention 3.Involve celebrities “on the cheap” 4.Offer to be interviewed on TV and radio stations 5.Publish a newsletter 6.Speak to local organizations 7.Sponsor a seminar 10-6

7. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 8.Write news releases and fax them to the media 9.Serve on community and industry boards and committees 10.Sponsor a community project or support a nonprofit organization 11.Promote a cause 12.Promote your company’s publicity 10-7

8. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Personal selling: the personal contact between sales personnel and potential customers resulting from sales efforts  Top sales people: 1.Are enthusiastic and alert to opportunities 2.Are experts in the products or services they sell and understand how their products and services can help their customers 3.Concentrate on select accounts with the greatest sales potential 4.Plan thoroughly 5.Use a direct approach with their customers. 10-8

9. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 6.Work from their customer’s perspective 7.Use past success stories and testimonial 8.Leave sales material with potential customers 9.See themselves as problem solvers, not just vendors 10.Measure success by customer satisfaction as well as by sales volume 10-9

10. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-10 How Sales Representatives Spend Their Time

11. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  To improve sales reps’ “closing averages”:  Hire the right people  Train sales reps  Develop a selling system  Prepare; approach; interview; demonstrate, explain, and show; validate; negotiate; close  Be empathetic  Set multiple objectives  The primary objective  The minimum objective  The visionary objective  Monitor sales efforts and results 10-11

12. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. Advertising: any sales presentation that is non-personal in nature and is paid for by an identified sponsor 10-12

13. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Twelve tips for effective advertising: 1.Plan more than one ad at a time 2.Set long-run ad objectives and measure performance 3.Use ads, themes, and media that appeal to target customers 4.View advertising expenditures as investments, not expenses 5.Use advertising that is different from your competitors’ advertising 6.Choose the media vehicle that’s best for your business even if it’s not “number one” 10-13

14. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 7.Consider using some else as the spokesperson on your commercials 8.Focus ads on your company’s USP 9.Devise ways of measuring your ads’ effectiveness that don’t depend on just tow or three customers’ responses 10.Don’t simply drop an ad because nothing happens immediately 11.Emphasize the benefits that the product or service provides to the customer 12.Evaluate the cost of different media 10-14

15. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-15 Characteristics of a Successful Ad

16. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Questions to ask when selecting advertising media:  How large is my firm's trading area?  Who are my customers and what are their characteristics?  What budget limitations do I face?  Which media do my competitors use? 10-16

17. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-17 How Shoppers Gather Information About Local Small Businesses

18. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-18 Global Online Advertising Expenditures as a Percentage of Total Advertising Expenditures

19. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-19 Advertising Expenditures by Medium Percentage of Advertising Expenditures

20. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising 10-20

21. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Word-of-mouth advertising  Make your business buzz-worthy  Promote your company to “influencers”  Make it easy for satisfied customers to spread the word  Use e-mail and social media to encourage viral marketing and amplify your company’s word-of- mouth advertising  Tap into the power of YouTube 10-21

22. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising 10-22

23. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Internet advertising  By 2016, U.S. companies are expected to spend $62 billion on online advertising  Five types of ads:  Banner  Impression  Click-through rate  Display  Pop-up  Interstitial  Contextual  Pay-per-click  Click fraud 10-23

24. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising 10-24

25. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  E-mail advertising  Two forms:  Permission  Spam  Triggered e-mail: sent in response to a potential customer’s actions  By 2017, 78% of users will access their e-mail on a mobile device  In-boxes are moving targets  Smaller screen sizes 10-25

26. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media 10-26

27. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-27 Social Media Advertising Expenditures in the United States

28. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Social media advertising  Facebook ads  Twitter ads 10-28

29. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events 10-29

30. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Sponsorships and special events  Don’t count on sponsorships for your entire advertising campaign  Find an event that is appropriate for your company and its products and services  Research the event and the organization hosting it before agreeing to become a sponsor  Try to become a dominant sponsor of an event  Clarify the costs and level of participation required up front  Get involved 10-30

31. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television 10-31

32. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Television  Ranks first in popularity of all media  Offers distinct advantages:  Broad coverage  Ability to focus on a target audience  Visual advantage  Flexibility  Design assistance  Brief exposure  Clutter  Zapping and zipping  Zappers and Zippers  Fragmented audiences  Costs 10-32

33. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Guidelines for creative television ads  Keep it simple  Have one basic idea  Make it unique  Get viewers’ attention  Involve the viewer  Use emotion  Consider production values  Prove the benefit  Identify your company well and often 10-33

34. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Using television creatively  Infomercials  Direct response television 10-34

35. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio 10-35

36. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Radio  Advantages:  Extensive reach  Audience delivery  Market segmentation  Flexibility and timeliness  Friendliness  Disadvantages:  Poor listening  Need for repetition  Limited message 10-36

37. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Buying radio time  Zero in on specific advertising target by using the appropriate radio station  Time sells in 15-second, 30-second, and 60- second increments 10-37

38. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Gu idelines for effective radio copy:  Mention the business often  Stress benefits to the listener  Use attention-grabbers  Zero in on a particular audience  Be simple and to the point  Sell early and often  Write for the ear  Prepare your copy  Triple space  Use positive action words  Put the listener in the picture  Focus on getting a response  Don’t stay with a loser 10-38

39. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio  Newspapers 10-39

40. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Newspapers  Advantages:  Selected geographical coverage  Flexibility  Timeliness  Communication potential  Low costs  Prompt responses  Attractive target audience 10-40

41. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Disadvantages:  Wasted readership  Reproduction limitations  Lack of prominence  Less effective in reaching young adults  Short ad life 10-41

42. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio  Newspapers  Magazines 10-42

43. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Magazines  Advantages:  Long life span  Multiple channels of engagement  Reader engagement  Target marketing  Ad quality  Disadvantages:  Costs  Long closing times  Lack of prominence  Declining circulation rates 10-43

44. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio  Newspapers  Magazines  Specialty advertising 10-44

45. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Specialty advertising  More than $20 billion is spent annually on promo gifts  Advantages:  Reaching select audiences  Personalized nature  Versatility  They work  Disadvantages:  Potential for waste  Cost 10-45

46. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio  Newspapers  Magazines  Specialty advertising  Point-of-purchase ads 10-46

47. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Point-of-purchase ads  Shoppers make 76% of all buying decisions at the point of sale  End-cap and free standing displays are most effective 10-47

48. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio  Newspapers  Magazines  Specialty advertising  Point-of-purchase ads  Outdoor advertising 10-48

49. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Outdoor advertising  One of the oldest forms of advertising  Advantages:  High exposure  Broad reach  Attention-getting  Flexibility  Cost efficiency  Disadvantages:  Brief exposure  Limited ad recall  Legal restrictions  Lack of prominence 10-49

50. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Using outdoor advertising  Billboards should have:  Quick and clear product and company identification  Simple background  Large illustrations  Clear, legible fonts  Black and white designs  Simplicity  Illumination  Right-hand side of highway location  New trends:  Internet-connected billboards  Billboards that send messages to cell phones 10-50

51. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio  Newspapers  Magazines  Specialty advertising  Point-of-purchase ads  Outdoor advertising  Transit ads 10-51

52. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Transit advertising  Advantages:  Wide coverage  Repeat exposure  Low cost  Flexibility  Disadvantages:  Generality  Limited appeal  Brief message 10-52

53. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio  Newspapers  Magazines  Specialty advertising  Point-of-purchase ads  Outdoor advertising  Transit ads  Direct mail 10-53

54. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Direct mail  Companies spend $21 billion annually on direct mail  Advantages:  Flexibility  Reader attention  Rapid feedback  Measurable results and testable strategies  Effectiveness  Disadvantages:  Inaccurate mailing lists  Clutter  High relative costs  High throwaway rate 10-54

55. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  How to use direct mail  Need the “right” mailing list  Consider using list brokers  The Direct Marketing List Source 10-55

56. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Media options:  Word-of-mouth advertising  Internet advertising  E-mail advertising  Social media  Sponsorships and special events  Television  Radio  Newspapers  Magazines  Specialty advertising  Point-of-purchase ads  Outdoor advertising  Transit ads  Direct mail  Trade shows 10-56

57. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Trade shows:  Companies spend $24 billion annually on trade shows  Advantages:  A natural market  Preselected audience  New customer market  Cost advantage  Disadvantages:  Increasing costs  Wasted effort 10-57

58. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Four methods: 1.What is affordable 2.Matching competitors’ advertising expenditures 3.Percentage of Sales  Past Sales  Forecasted Sales 4.Objective-and-Task 10-58

59. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-59 Advertising Scheduling Strategies

60. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Three techniques: 1.Comparative advertising: manufacturer shares the cost of advertising with the retailer if the retailer features its products in its ads 2.Shared advertising: a group of similar businesses forms a syndicate to produce generic ads and then dubs in local details 3.Stealth advertising: innovative ads that do not look like traditional ads and may be located in unexpected places 10-60

61. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall.  Other ways to save  Repeat ads that have been successful  Use identical ads in different media  Hire independent copywriters, graphic designers, photographers, and other media specialists  Concentrate advertising when customers are most likely to buy 10-61

62. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall. 10-62