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Chapter 14
Promote through Traditional Media
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LEARNING OBJECTIVES
LO 14-2 Identify various approaches to sales promotion and how each might be used.
LO 14-4 Understand the role of personal selling in marketing communications.
LO 14-6 Understand the major job responsibilities of sales management.
CHAPTER OUTLINE
I. ADVERTISING
A. Types of Advertising
i. Institutional Advertising
ii. Product Advertising
B. Advertising Execution and Media Types
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C. The Role of the Creative Agency
II. SALES PROMOTION
A. Sales Promotion to Consumers
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B. Sales Promotion to Channel Members
III. PUBLIC RELATIONS (PR)
A. Gaining Product Publicity and Buzz
B. Securing Event Sponsorships
C. Crisis Management
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IV. PERSONAL SELLING – THE MOST PERSONAL
FORM OF COMMUNICATION
A. Activities in Personal Selling
i. Communicate
ii. Sell
iii. Build Customer Relationships
iv. Information Management
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B. Sales in B2C versus B2B Markets
C. Classifying Sales Positions
i. Trade Servicer
ii. Missionary Seller
iii. Technical Seller
iv. Solution Seller
D. The Personal Selling Process
i. Prospect for Customers
ii. Open the Relationship
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iii. Qualify the Prospect
iv. Sales Presentation
a. Setting Goals and Objectives
b. Characteristics of a Great Sales
Presentation
c. Handling Objections – Negotiating Win-
Win Solutions
i. Product Need
ii. Company trust
iii. More time
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iv. Price
d. Closing the Sale
e. Follow-Up after the Sale
E. Organizing the Sales Force
i. Company Sales Force or Independent Agents
ii. Geographic Orientation
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iii. Product Orientation
iv. Customer Type or Market Organization
F. Managing the Sales Force
i. Performance: Motivating the Sales Force
a. Role Perceptions
b. Sales Aptitude: Are good Salespeople
Born or Made?
c. Sales Skill Levels
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d. Motivation
e. Organizational, Environmental and
Personal Factors
f. Rewards
g. Satisfaction
ii. Recruiting and Selecting Salespeople
iii. Training
iv. Compensation and Rewards
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v. Evaluating Salesperson Performance
V. SUMMARY
KEY TERMS
advertising wearout When customers become bored with an existing advertising campaign.
advertising response function An effect in which, beyond a certain ad spending level,
diminishing returns tend to set in.
institutional advertising Advertising that promotes industry, company, family of brands, or
some other issues broader than a specific product.
product advertising Advertising designed to increase purchase of a specific offering.
pioneering advertising Advertising intended to stimulate primary demand, typically during the
introductory or early growth stages of an offering.
competitive advertising Advertising intended to build sales of a specific brand through the use
of emotional appeals, persuasion, and providing information.
comparative advertising Advertising in which two or more brands are directly compared
against each other on certain attributes.
reach The percentage of individuals in a defined target market that are exposed to an ad during a
specific time period.
frequency The average number of times a person in the target market is exposed to the message.
advertising execution The way an advertisement communicates the information and image.
clutter The level of competing messages on a particular medium.
trade show An industry- or company-sponsored event in which booths are set up for the
dissemination of information about offerings to members of a channel.
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cooperative advertising and promotion When a manufacturer provides special incentive
money to channel members for certain promotional performance.
personal selling A two-way communication process between salesperson and buyer with the
goal of securing, building, and maintaining long-term relationships with profitable customers.
trade servicer A salesperson who sells to resellers such as retailers or distributors and provides
assistance to those channel members to help them resell the company’s products.
missionary salespeople Salespeople who do not take orders from customers directly but
outsourcing the sales force Using independent sales agents to sell a company’s products.
transactional cost analysis (TCA) A tool that measures the cost of using different types of
selling agents.
sales skill levels The individual’s learned proficiency at performing necessary sales tasks.
motivation The stimulating power that induces and then directs an individual’s behavior.
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intrinsic rewards Rewards salespeople attain primarily for themselves, including feelings of
accomplishment, personal growth, and self-worth.
salary A fixed sum of money paid at regular intervals.
incentive Generally, commissions tied to sales volume or profitability, or bonuses for meeting or
exceeding specific performance targets.
commission Payment based on short-term results.
nonfinancial incentives Sales force motivators beyond financial compensation.
APPLICATION QUESTIONS
1. Consider the concept of advertising wearout.
a. What is advertising wearout?
b. What do you think are some causes of the wearout?
c. Come up with as many ads as you can that, for you, are “worn out?” Can you recall how
long each ad interested you before wearout began to set in?
2. You are the Vice President of Sales for a $30 million manufacturer of home building
materials. The company employs 50 salespeople around the country to market the
company’s products to hardware stores and major building contractors. The CEO believes
the company needs to cut costs and wants to reduce the sales force by 50%. You have been
asked to come in and explain why that is a bad long term strategy for the company. Discuss
why sales people are critical to the success of the company.
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3. Review the Common Approaches to Advertising Execution (Exhibit 14.2) and Pros and Cons
of Key Advertising Media (Exhibit 14.3). Review some ads in any three of the seven
different types of media identified, watching for examples of the different execution
approaches.
a. Make notes about the ads you reviewed and the different types of media execution you
witnessed. Which ads do you think were the most effective? Why?
b. For the same ads, based on the chapter’s list of pros and cons for each, identify specific
examples of ads for which one or more of the pros and cons apply.
c. Share your findings with another student or with the class.
4. Exhibit 14.4 presents some of the most common consumer sales promotion approaches.
Select any three of the approaches and think of a purchase you have made in response to
each. How important was the availability of the sales promotion to your ultimate decision to
buy?
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a. Crisis management is a very important function of any type of organization including for-
profit firms, nonprofits, governmental entities, and others. Identify an example of an
organization that faced a crisis of some type that was highly publicized. This could be a
product recall that challenged a firm, a management or financial scandal, a natural
disaster faced by a governmental body or charitable agency, or any other such issue.
b. How did the organization address the crisis? What specifically did they do once it was
evident a crisis was afoot?
c. Give your opinion of how they handled the crisis. What would you recommend that they
could have done better?
MANAGEMENT DECISION CASE
Intel Uses Storytelling to “Let the inside out”
This case about a familiar high-tech company covers some important themes: brand evolution,
innovative advertising and alternative approaches to the creation of advertising content. Many
students in class will likely be staring at laptops with the little Intel sticker pasted in the lower
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Questions for Consideration
1. What was the issue with Intel’s old branding? Was this just change for change’s sake?
Why might it be important for Intel’s future business success to promote a new brand
image?
Intel realized that by focusing on being “inside”, they ran a real risk of becoming invisible.
As the old saying goes, “Out of sight, out of mind.” Rather than just change for the sake of
2. Intel uses both their new internal creative team and outside advertising agencies as well.
What are the pros and cons of using an internally-staffed creative advertising team?
What activities that an ad agency performs might be more efficiently handled by an
outside group?
Management must make many internal/external choices: employees or contractors? In-
house manufacturing or offshore? Janitorial service or company custodians? In each of
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3. Intel shows their storytelling ads on both TV and via the internet. Is TV still a viable
media choice for tech companies like Intel or should they migrate all these ads to the
internet? If they use both types of media, how can they ensure that there is consistency
between the two media strategies to optimize their advertising spend?
Customers might question the tech “cred” of a tech company that does not advertise in
digital media. The decision to use traditional media in the mix should be a question of who
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SUGGESTED VIDEO
Selling at GPI Procurement Services (5:26 minutes)
Description: This video discusses how GPI Procurement Services maintains its customer
relationships by having excellent salespeople. Their main focus is communicating, listening,
knowing their product, installing trust, and providing the best for their clients.
1. The salesperson in this video notes that expanding business with existing customers is one of
the best ways to increase total sales. Why is this the case? What are some of the keys (from
the video and your own ideas) for increasing the amount of business that you get from
existing customers?
For many types of products/services (particularly B2B services as in this video), there are
many steps that must be completed before a prospect becomes a customer (requiring time
1
Kim Bhasin, (2011) “ 9 PR Fiascos That Were Handled Brilliantly By Management”, Business Insider,
http://www.businessinsider.com/pr-disasters-crisis-management-2011-5 , accessed January, 13, 2018.
2
Shara Tibken, “More than a chipmaker? Intel's blown opportunities,” CNET, December 5, 2013,
