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Advertising to Specific Markets’

Advertisements also differ in to whom they are directed. That is, advertisement depend on the company’s target market. In consumer markets, local stores usually sponsor retail advertising to encourage consumers to visit the store & buy its products & services. Larger retailers use retail advertising on both a local & national level. Often retail advertising is actually cooperative advertising, with the cost of the advertising shared by the retailer & the manufacturer.

In industrial markets, to communicate with companies that distribute its products, some firms use trade advertising publications. And to reach the professional purchasing agent & managers at firm buying raw material or components, companies use industrial advertising.

Regulation of Advertising

Advertising affects nearly every American. Because it can be used to deceive as well as inform buyers, advertising has increasingly come under regulation. The first regulation of advertising activities came in1914.
This act created the Federal Trade Commission to protect competition from unfair trade practices.

Members of the advertising industry also regulate themselves to some degree. Advertising media, including television networks & local stations magazines, & newspapers, decline ads they believe to be false or in poor test. And the National Advertising Review Board investigates complaints against national advertisers. If it finds in favor of the advertiser, chargers are dropped. If it finds in favor of the complaining party, then the advertiser must modify or withdraw its claim.

Personal Selling Promotions

Virtually everyone has engaged in some sort of sales activity.
Perhaps you had a lemonade stand or sold candy for the drama club. Or you may have gone on a job interview - selling your abilities & service as an employee to the interviewers company.

Personal selling - the oldest form of selling - is a vital cog in many companies’ promotional efforts. It provides the personal link between seller & buyer. It adds to a firm’s creditability because it provides buyers with someone to interact with & to answer their questions.

Because it involves personal interaction, however, personal selling requires a level of trust between the buyer & the seller. When a buyer fells cheated by the seller, that

trust has been broken & negative attitude towards salespeople in general develops. To counteract this reputation, many companies are emphasizing customer satisfaction & generally striving to improve the effectiveness of whatever personal selling they undertake.

Personal selling is also most expensive form of promotion per contact because presentations are generally made to one or two individuals at time.
Personal selling expenses include salespeople’s compensation & their overhead, usually travel, food & lodging. The average cost of sales call has been estimated an approximately $240 & has been increasing rapidly in recent years.
The high cost of personal sales have prompted many companies to set up
Telemarketing departments. Telemarketing is the use of the telephone to carry out many of the activities involved in marketing a company’s products. Telemarketing can be used to handle any stage of the personal selling process or to set up appointments for outside sales people.

Types of Personal Selling Situations

Managers of both telemarketing & traditional personal sales people must always consider how personal service are affected by the difference between consumer products & industrial products. Retail selling involves selling a consumer product for the buyer’s own personal or household use.
Industrial selling deals with selling products to other businesses, either for manufacturing other products or for resale.

Each of this selling groups situations has its own distinct characteristics. In retail selling the buyer usually comes to the seller.
The industrial salesperson almost always goes to the prospect’s place of business. The industrial decision process also may take longer than a retail decision because more money, decision makers, & weighting of alternatives are involved. And industrial buyers are professional purchasing agents who are accustomed to dealing with salespeople. Consumers in retail stores, on the other hand, may be intimidated by salespeople.

Personal Selling Tasks

Improving sales efficiency also requires marketers to consider salespeople’s tasks. Three basic tasks are generally associated with selling: Order processing, creative selling, & missionary selling. Sales jobs usually require salespeople to perform all three tasks to some degree, depending on the product & the company. As you will see, this tasks differ in the skills required, the methods used, & the reasons for using them.

Order Processing. At the most basic level, Order Processing, a salesperson receives an order & sees to the handling & delivery of that order. Route salespeople are often order processors. They call on regular customers to check the customer’s supply of bread, milk, snack foods, or soft drinks. Then, with a customer’s consent, they determine the size of the reorder, fill the order form their trucks, & stack the customer’s shelves.

Creative Selling. When the benefits of the product are not clear, creative selling may persuade buyers. Most industrial products involves creative selling because the buyer has not used the product before or may not be familiar with the features & uses of a specific brand. Personal selling is also crucial for high priced consumer products, such as homes, where buyers comparison shop. Any new product can benefit from creative selling that differentiates it from other products.
Finally, creative selling can help to create a need.

Missionary Selling. A company may also use missionary selling to promote itself & its products. The goal of missionary selling is to promote the company’s long-term image than to make a quick sale.

The Personal Selling Process

Although all three sales tasks are important to an organization using personal selling, perhaps the most complicated is creative selling. It is the creative salesperson who is responsible for most of the steps in the personal selling process described here.

Prospecting & Qualifying. In order to sell, a sales person must first have a potential customer, or prospect. Prospecting is the process of identifying this potential customers. Salespeople find prospects through past company records, customers , friends, relatives, company personnel, & business associates. Prospects must then be qualified to determine whether or not they have the authority to buy & the ability to pay.

Approaching. The first few minutes that a salesperson has contact with a qualified prospect are called the approach. The success of later stages depends on the prospect’s first impression of the salesperson, since this impression affects the salesperson’s creditability. Thus, salespeople need to present a neat, professional appearance & to greet prospects in a strong, confident manner.

Presenting & Demonstrating. Next, the salesperson must present the promotional message to the prospect. A presentation is the full explanation of the

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