ADVERTISING AND PERSONAL SELLING

Ch.13 ADVERTISING AND PERSONAL SELLING

The product exists, its producer, how it compares to similar products, how much it costs, and where and when it can be purchased. The American Marketing Association. The objectives of advertising are to create interest, to provide data, to persuade and convince, to foster a favorable image, and to generate sales.
Criticism of advertising and benefits.

13.3 Types of Advertising
a. Product Advertising promotes the specific product of a given manufacturer. A specific brand name is always mentioned. “Drink Mott’s apple juice.”
b. Institutional Advertising (corporate-image) builds a goodwill toward the firm – “ We are the good firm.” It mentions the name of the firm.
c. Primary Demand Advertising attempts to stimulate demand to whole type of product, without mentioning any manufacturer or brand by name. It is usually paid for by a trade association - “Coffee – the think drink.”
In addition to above, an advertisement may also be either national, regional, or local.


13.4 Advertising Media and Media Characteristics
13.5 Media Selection: Advantages and Disadvantages
Geographic selectivity, cost, flexibility, qualitative selectivity, time of life,
13.6 The Advertising Agency
13.7 Personal Selling
Face-to-face. Promotion of ideas, goods, or services that not be means of the mass communication media.
13.8 Types of Salespeople
Missionary or Products Salesperson – his or her main job is one of pioneer selling for a new product.
Merchandising salesperson in addition to selling his product also performs certain services.
Detailer – does not sell directly. It is indirect sales for the company. A drug company may call on doctors to induce them to prescribe the company’s brand of drugs.
Sles Engineer is a salesperson who is also an engineer or otherwise technically trained. They sell mainly industrial goods, such as raw materials.
13.9 Compensation for Salespeople.
- Salary
- Commission
- Salary + commission
13.10 Steps in the Sales Process.
Of the numerous theories of selling, the most widely used is formulized selling: prospecting-preapproach-approach-demonstration-objection-closing-follow-up
13.11 Legislation Affecting Promotion
Federal Trade Commission Act (1914) about using false or misleading advertising
Wheeler-Lea Act (1938) amended the FTC Act and defined false or misleading advertising
Printer’s Inc Statutes about individual state laws about false or misleading advertising
Robinson-Patman Act (1936) prohibits discrimination in the granting of advertising allowances.
Lanham Act (1946) – legal registration and protection of trademarks for a period of 20 years.
Cigarette Warning Act (1965) “Warning:…”
Highway Beautification Act (1965) prohibits billboard advertising within 660 feet on the interstate highway.
Public Health Smoking Act (1970) prohibits cigarette advertising on radio and TV.
Cooling-Off Laws (1972) gives consumers three business days to cancel, without penalty, any order from a door-to-door salesperson.