Chapter 15 Advertising, Sales Promotions, and Personal Selling

Chapter 15 - Advertising, Sales Promotions, and Personal Selling Chapter 15 Advertising, Sales Promotions, and Personal Selling Multiple Choice Questions Which of the following statements is true about the AIDA model? A It is a common model used by marketers when there is a delayed response to a marketing communication campaign B It is a series of approaches that finalize a sales process by retailers C It is used primarily in determining the best trade channel sales promotion technique D It is a series of mental stages through which consumers move E It refers to the various types of media available to communicate a marketing message The AIDA model is a common model of the series of mental stages through which consumers move as a result of marketing communications: Attention leads to Interest, which leads to Desire, which leads to Action Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model Which of the following occurs when consumers recognize the brand when its name is presented to them? A Lagged effect B Puffery C Aided recall D Cold call E Top-of-mind awareness Aided recall occurs when consumers recognize the brand when its name is presented to them 15-1 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model Which of the following refers to a situation when a brand has a prominent place in people's memories that triggers a response without them having to put any thought into it? A Lagged effect B Puffery C Cold call D Aided recall E Top-of-mind awareness Top-of-mind awareness, the highest level of awareness, occurs when a brand has a prominent place in people's memories that triggers a response without them having to put any thought into it For example, Harley-Davidson has top-of-mind awareness if a consumer responds "Harley" when asked about motorcycles Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model A customer refers to Windows, a product from Microsoft, when asked about an operating system This sort of customer association primarily relates to the: A interest stage of the AIDA model B action stage of the AIDA model C desire stage of the AIDA model D decision stage of the AIDA model E attention stage of the AIDA model The given customer association is found in the attention stage of the AIDA model Brand awareness refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service As such, brand awareness is the strength of the link between the brand name and the type of merchandise or service in the minds of customers 15-2 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model Once consumers are aware that a company or product exists, communication must work to: A define the objectives of marketing communication B match communication with competitors C create top-of-mind awareness D increase their interest level E instigate aided recall in their minds Once a consumer is aware that a company or product exists, communication must work to increase his or her interest level It is not enough to let people know that the product exists; consumers must be persuaded that it is a product worth investigating Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model The ultimate goal of any marketing communication is to: A generate desire in customers' minds B drive the receiver to action C create awareness about the company D create awareness about a product E increase customers' interest level in a product The ultimate goal of any marketing communication is to drive the receiver to action If the message has caught consumers' attention and made them interested enough to consider the product as a means to satisfy a specific desire of theirs, they likely will act on that interest by making a purchase 15-3 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model Whenever Sam thinks about smartphone, Samsung comes to his mind What level of awareness is it an example of? A Aided recall B Attention C Top of mind awareness D Interest E Subconscious Top of mind awareness is the highest level of awareness It occurs when a brand has a prominent place in people's memories Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model Lagged effect refers to: A the process of generating awareness in a product's target market B a delayed response to a marketing communication campaign C a flawed marketing message sent to a product's target market D a marketing message sent to an untargeted customer segment E the process of generating interest about a product or company Sometimes consumers not act immediately after receiving a marketing communication because of the lagged effect—a delayed response to a marketing communication campaign It generally takes several exposures to an ad before a consumer fully processes its message 15-4 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model What is the ultimate goal of any marketing communication? A Customer purchase intention B Customer desire C Customer interest D Customer attention E Customer action The ultimate goal of any marketing communication is to drive the receiver to action; the action might be to visit a website or to fill out a form Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Difficult Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model 10 Identify from the following the type of advertising that primarily communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase A Informative B Persuasive C Influential D Reminder E Convincing Informative advertising communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase Such advertising helps determine some important early stages of a product's life cycle, particularly when consumers have little information about the specific product or type of product 15-5 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 11 Finkrola Appliances Corp manufactures and markets home appliances The firm decides to market vacuum cleaners in a region where the product category for such products is absent Before the product launch, Finkrola uses advertisements that are mainly intended to create awareness about the product and the company Identify the type of advertising that was most likely used by Finkrola Appliances Corp in this scenario A Influential B Persuasive C Reminder D Convincing E Informative The advertisement type used by Finkrola Appliances Corp was that of informative advertising Informative advertising communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 12 Which of the following types of advertising firms use to motivate consumers to take action when a product has gained a certain level of brand awareness? A Informative B Instructive C Persuasive D Interpretive E Educational When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action Firms often use persuasive advertising to convince consumers to take action: switch brands, try a new product, or even continue to buy the advertised product 15-6 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 13 Charles Associates Inc uses mass media advertising to communicate its festival products and to urge customers to buy the products during the festival season It advertises after generating enough awareness about its products and the various schemes associated with them Which of the following types of advertising does Charles Associates Inc use? A Informative B Reminder C Persuasive D Instructive E Educational Charles Associates Inc uses persuasive advertising When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action Firms often use persuasive advertising to convince consumers to take action: switch brands, try a new product, or even continue to buy the advertised product Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 14 Which of the following types of advertising is used to prompt repurchases, especially for products that have gained market acceptance and are mostly in the maturity stage of their life cycle? A Informative B Persuasive C Influential D Reminder E Interpretive Reminder advertising is communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle 15-7 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 15 Riders Corp is an electric scooter brand in the country of Cambria The brand has been growing at a high rate for many years However, the brand's sales growth has declined in the current financial year Riders Corp decides to use mass advertising to attract customers to its brand again In this scenario, which of the following types of advertising would best serve Riders Corp.'s purpose? A Interpretive B Influential C Reminder D Persuasive E Informative In this scenario, reminder advertising would best serve Riders Corp.'s purpose Reminder advertising is communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 16 Which of the following types of advertisements is used to inform, persuade, or remind consumers about a specific good or service? A Public service B Operational C Institutional D Societal E Product-focused Product-focused advertisements are used to inform, persuade, or remind consumers about a specific product or service 15-8 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 17 WellnessCare Inc is a large manufacturer of consumer products The company owns more than 120 brands, and its business is stretched over 16 countries However, most of WellnessCare's advertisements promote specific brands rather than the company itself What are such advertisements called? A Product-focused advertisements B Operational advertisements C Societal advertisements D Institutional advertisements E Public service advertisements These advertisements by WellnessCare Inc are called product-focused advertisements Product-focused advertisements are used to inform, persuade, or remind consumers about a specific product or service Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 18 Which of the following is a reason for a company to choose product-focused advertisements over other types of advertisements? A Reminding consumers about procedural issues B Persuading customers to buy products soon C Creating awareness about the company D Reminding consumers about a specific product E Creating product awareness for public welfare Product-focused advertisements are used to inform, persuade, or remind consumers about a specific product or service 15-9 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 19 Which of the following types of advertisements is used to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation? A Public service advertisements B Operational advertisements C Institutional advertisements D Societal advertisements E Product-focused advertisements The focus of institutional advertisements is to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 20 Manorek Inc is a leading media company in the country of Lucidia It is a reputed brand and is considered to be a trusted source of information by Lucidians The company plans to enter another continent and wants to build the same kind of reputation in these markets Manorek Inc advertises to familiarize these new customers with the company and its reputation in Lucidia What type of advertising would serve this purpose? A Product-focused advertising B Societal advertising C Operational advertising D Institutional advertising E Public service advertising Institutional advertising would serve this purpose of Manorek Inc The focus of institutional advertisements is to inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation 15-10 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-02 Summarize the regulatory and ethical issues of concern to advertisers Topic: 15-04 Regulatory and Ethical Issues in Advertising 105 An online retailer sells a product to a customer through deception This is an example of puffery FALSE Puffery refers to the legal exaggeration of praise, stopping just short of deception, lavished on a product Here, since the retailer does not stop short of deception but entirely deceives his customer into buying the product, it is not an example of puffery Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-02 Summarize the regulatory and ethical issues of concern to advertisers Topic: 15-04 Regulatory and Ethical Issues in Advertising 106 Encouraging repurchase is the major objective of loyalty programs TRUE As part of a sales promotion program, a loyalty program is specifically designed to retain customers by offering premiums or other incentives to customers that make multiple purchases over time Encouraging repurchase is a major objective of loyalty programs 15-55 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15-05 Sales Promotion 107 A firm named Pizzerio Inc offers free pizzas based on a chance drawing of consumers who buy and fill up lucky-draw forms from its retail stores This is an example of a sweepstake TRUE This is an example of sweepstakes A form of sales promotion that offers prizes based on a chance drawing of entrants' names, sweepstakes not require the entrant to complete a task other than buy a ticket or fill out a form Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15-05 Sales Promotion 108 A display located at the checkout counter of a textile showroom is an example of a pointof-purchase display TRUE A point-of-purchase (POP) display is a merchandise display located at the point of purchase Here, the checkout counter is an example of a point of purchase at the textile showroom 15-56 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15-05 Sales Promotion 109 Discounts and allowances are effective incentives used to maintain or increase inventory levels in the distribution channel TRUE Discounts and allowances are effective incentives used to maintain or increase inventory levels in the distribution channel Manufacturers sometimes offer a case allowance, for example, a discount or dollar amount taken off each case ordered during a specific time period Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15-07 Trade Channel Sales Promotions 110 Personal selling is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision TRUE Personal selling is the two-way flow of communication between a buyer (or buyers) and a seller that is designed to influence the buyer's purchase decision It can take place in various situations: face to face, via video teleconferencing, on the telephone, or over the Internet 15-57 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-04 Describe personal selling and how it adds value for customers Topic: 15-11 The Scope and Nature of Personal Selling 111 Susan is a sales representative of a pharmaceutical company She often visits hospitals without taking formal appointments from the doctors Such visits are known as cold calls TRUE These visits made by Susan are known as cold calls Cold calls are a method of prospecting in which salespeople telephone or go to see potential customers without appointments Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Moderate Learning Objective: 15-05 Identify the steps in the personal selling process Topic: 15-14 Step 1: Generate and Qualify Leads 112 Objections are unlikely to occur during the sales presentation stage of personal selling FALSE Although objections can arise during each stage of the selling process, they are very likely to occur during the sales presentation An integral part of the sales presentation is handling objections that the buyer might have about the product or service Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-05 Identify the steps in the personal selling process Topic: 15-16 Step 3: Sales Presentation and Overcoming Objections 15-58 Chapter 15 - Advertising, Sales Promotions, and Personal Selling 113 Closing the sale refers to the termination of a sale owing to the dissatisfaction of a customer FALSE Closing the sale means obtaining a commitment from the customer to make a purchase Without a successful close, a salesperson goes away empty-handed, so many salespeople find this part of the sales process very stressful Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-05 Identify the steps in the personal selling process Topic: 15-17 Step 4: Closing the Sale 15-59 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Short Answer Questions 114 Bring out the difference between aided recall and top-of-mind awareness Provide examples to support your answer Aided recall occurs when consumers recognize the brand when its name is presented to them Top-of-mind awareness, the highest level of awareness, occurs when a brand has a prominent place in people's memories that triggers a response without them having to put any thought into it For example, Harley-Davidson has top-of-mind awareness if a consumer responds "Harley" when asked about motorcycles High top-of-mind awareness means that a particular brand will probably be carefully considered when customers decide to shop for that product or service Manufacturers, retailers, and service providers build top-of-mind awareness by having memorable names; repeatedly exposing their name to customers through advertising, locations, and sponsorships; and using memorable symbols Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model 115 Explain the lagged effect Sometimes consumers not act immediately after receiving a marketing communication because of the lagged effect—a delayed response to a marketing communication campaign It generally takes several exposures to an ad before a consumer fully processes its message In turn, measuring the effect of a current campaign becomes more difficult because of the possible lagged response to a previous one 15-60 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model 116 Distinguish between informative advertising and persuasive advertising Provide one example for each Informative advertising communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase Such advertising helps determine some important early stages of a product's life cycle (PLC), particularly when consumers have little information about the specific product or type of product Retailers often use informative advertising to tell their customers about an upcoming sales event or the arrival of new merchandise autoTRADER used informative advertising to change its brand perception When a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action Persuasive advertising generally occurs in the growth and early maturity stages of the PLC, when competition is most intense, and attempts to accelerate the market's acceptance of the product In later stages of the PLC, persuasive advertising may be used to reposition an established brand by persuading consumers to change their existing perceptions of the advertised product Firms often use persuasive advertising to convince consumers to take action: switch brands, try a new product, or even continue to buy the advertised product Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 117 What is reminder advertising? In what stage of product life cycle it should be used? Provide one example Reminder advertising refers to communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle 15-61 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 118 Why is the Competition Act considered important legislation? The Competition Bureau enforces the Competition Act of 1986, the most comprehensive legislation affecting the marketing activities of companies in Canada The Competition Act maintains and encourages competition while protecting consumers from misleading and deceptive advertising practices Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-02 Summarize the regulatory and ethical issues of concern to advertisers Topic: 15-04 Regulatory and Ethical Issues in Advertising 119 Briefly explain the difference between advertising regulations in Canada and the European Union in terms of handling puffery Puffery is the legal exaggeration of praise, stopping just short of deception, lavished on a product In Canada, consumers are viewed as rational and capable of evaluating advertising claims In the European Union, however, puffery is considered deception For instance, Kraft had no problem advertising its orange-flavoured drink Tang surrounded by oranges in North America But in Germany, the ad was declared deceptive because there are no oranges in Tang Advertisers must understand these differences to keep from violating EU advertising laws 15-62 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-02 Summarize the regulatory and ethical issues of concern to advertisers Topic: 15-04 Regulatory and Ethical Issues in Advertising 120 Explain the use of coupons in promotion with an example A coupon offers a discount on the price of specific items when they are purchased Coupons are issued by manufacturers and retailers in newspapers, magazines, and free-standing inserts, on products, on shelves, at the cash register, over the Internet, and by mail They are commonly used in supermarkets, but other retailers, such as department stores and restaurants, also use coupons to pull away customers from the competition Some retailers even accept coupons from competitors A discount voucher that appears in a daily is an example of a coupon Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15-05 Sales Promotion 121 Distinguish between a contest and a sweepstake A contest refers to a brand-sponsored competition that requires some form of skill or effort In Canada, you cannot give away a prize based on chance alone There must also be a skill component, which is why skill-testing questions are used, making the game one of mixed chance and skill The effort required by these contests often keeps participation lower than that for other forms of promotion A form of sales promotion that offers prizes based on a chance drawing of entrants' names, sweepstakes not require the entrant to complete a task other than buy a ticket or fill out a form Often the key benefit of sweepstakes is that they encourage current consumers to consume more if the sweepstakes form appears inside the packaging or with the product Unlike contests, sweepstakes winners are determined by a random draw 15-63 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15-05 Sales Promotion 122 What is product placement? Provide one example Product placement refers to inclusion of a product in nontraditional situations, such as in a scene in a movie or TV program Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-03 Advertising Objectives 123 What is meant by relationship selling? Relationship selling is a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties Relationship salespeople work with their customers to find mutually beneficial solutions to their wants and needs 15-64 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-04 Describe personal selling and how it adds value for customers Topic: 15-12 The Value Added by Personal Selling 124 Explain the stages of the AIDA Model The AIDA model is a common model of the series of mental stages through which consumers move as a result of marketing communications: Awareness leads to Interest, which leads to Desire, which leads to Action  Awareness: Brand awareness refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service As such, brand awareness is the strength of the link between the brand name and the type of merchandise or service in the minds of customers  Interest: Once the consumer is aware that the company or product exists, communication must work to increase his or her interest level It is not enough to let people know that the product exists; consumers must be persuaded that it is a product worth investigating  Desire: After the firm has piqued the interest of its target market, the goal of subsequent messages should move the consumer from "I like it" to "I want it."  Action: The ultimate goal of any marketing communication is to drive the receiver to action If the message has caught consumers' attention and made them interested enough to consider the product as a means to satisfy a specific desire of theirs, they likely will act on that interest by making a purchase 15-65 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-01 Describe advertising and three objectives of advertising Topic: 15-02 The AIDA Model 125 Explain how professional selling can be a satisfying career Professional selling can be a satisfying career for several reasons First, many people love the lifestyle Salespeople are typically out on their own Although they occasionally work with their managers and other colleagues, salespeople are usually responsible for planning their own day This flexibility translates into an easier balance between work and family than many office-bound jobs can offer Second, the variety of the job often attracts people to sales Every day is different, bringing different clients and customers, often in a variety of places Their issues and problems and the solutions to those problems all differ and require creativity Third, professional selling and sales management can be a very lucrative career Sales is among the highest-paying careers for college and university graduates, and compensation often includes perks, such as the use of a company car and bonuses for high performance Fourth, because salespeople are the front-line emissaries for their firm, they are very visible to management Because it is fairly straightforward for management to identify top performers, those high-performing salespeople who aspire to management positions are in a good position to get promoted 15-66 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-04 Describe personal selling and how it adds value for customers Topic: 15-11 The Scope and Nature of Personal Selling 126 Explain any three types of consumer sales promotions Provide one example for each Students can explain any of the consumer sales promotions described in the text A coupon offers a discount on the price of specific items when they're purchased Coupons are issued by manufacturers and retailers in newspapers, magazines, and free-standing inserts, on products, on shelves, at the cash register, over the Internet, and by mail They are commonly used in supermarkets, but other retailers, such as department stores and restaurants, also use coupons to pull away customers from the competition A deal refers generally to a type of short-term price reduction that can take several forms, such as a "featured price," a price lower than the regular price; a "buy one, get one free" offer; or a certain percentage "more free" offer contained in larger packaging A premium offers an item for free or at a bargain price to reward some type of behaviour, such as buying, sampling, or testing These rewards build goodwill among consumers, who often perceive high value in them 15-67 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15-05 Sales Promotion 127 Explain trade channel sales promotions Trade channel promotions help convince retailers and wholesalers to stock a new brand, give it eye-level shelf space, and promote it in their flyers and other advertisements Many types of consumer sales promotions can be used for channel members, including discounts and allowances, co-operative advertising, and sales force training  Discounts and allowances: Discounts and allowances are effective incentives used to maintain or increase inventory levels in the distribution channel Manufacturers sometimes offer a case allowance, for example, a discount or dollar amount taken off each case ordered during a specific time period  Co-operative advertising: One of the important functions retailers perform is promoting products to consumers Co-operative (co-op) advertising helps to compensate trade channel members for money they spend promoting products and encourages them to feature products more often  Sales force training: Because retailers have contact with end consumers and are ultimately responsible for selling the products they carry, manufacturers may offer to train the retailer's sales staff This training gives a company's sales force more in-depth product knowledge, which enhances their confidence in the product and increases the likelihood of future sales 15-68 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Moderate Learning Objective: 15-03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15-07 Trade Channel Sales Promotions 128 Explain the major steps in the personal selling process for a real estate agent What is the objective of each stage? Although selling may appear a rather straightforward process, successful salespeople follow several steps Depending on the sales situation and the buyer's readiness to purchase, a salesperson may not use every step, and the time required for each step will vary depending on the situation  Step 1: Generate and qualify leads: The first step in the selling process is to generate a list of potential customers (leads) and assess their potential (qualify) Salespeople who already have an established relationship with a customer will skip this step, and it is not used extensively in retail settings  Step 2: Preapproach: The preapproach occurs prior to meeting the customer for the first time and extends the qualification of leads procedure Although the salesperson has learned about the customer during the qualification stage, in this step, he or she must conduct additional research and develop plans for meeting with the customer  Step 3: Sales presentation and overcoming objections: Once all the background information has been obtained and the objectives for the meeting are set, the salesperson is ready for a person-to-person meeting An integral part of the sales presentation is handling objections that the buyer might have about the product or service Although objections can arise during each stage of the selling process, they are very likely to occur during the sales presentation  Step 4: Closing the sale: Closing the sale means obtaining a commitment from the customer to make a purchase Without a successful close, the salesperson goes away empty-handed, so many salespeople find this part of the sales process very stressful Although losing a sale is never pleasant, salespeople who are involved in a relationship with their customers must view any particular sales presentation as part of the progression toward ultimately making the sale  Step 5: Follow-up: With relationship selling, the sale is never really over, even after it has been made The attitudes customers develop after the sale become the basis for how they will purchase in the future The follow-up therefore offers a prime opportunity for a salesperson to solidify the customer relationship through great service quality Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15-05 Identify the steps in the personal selling process Topic: 15-13 The Personal Selling Process Topic: 15-14 Step 1: Generate and Qualify Leads Topic: 15-15 Step 2: Preapproach and the Use of CRM Systems Topic: 15-16 Step 3: Sales Presentation and Overcoming Objections Topic: 15-17 Step 4: Closing the Sale Topic: 15-18 Step 5: Follow-Up 15-69 ... Objective: 15- 03 Explain how sales promotions supplement a firm's IMC strategy Topic: 15- 06 Consumer Sales Promotion 15- 50 Chapter 15 - Advertising, Sales Promotions, and Personal Selling 15- 51 ... program 15- 15 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Apply Difficulty: Difficult Learning Objective: 15- 01 Describe advertising and. .. decision 15- 30 Chapter 15 - Advertising, Sales Promotions, and Personal Selling Accessibility: Keyboard Navigation Blooms: Understand Difficulty: Moderate Learning Objective: 15- 03 Explain how sales