Учебное пособие для студентов вузов Допущено Министерством образования Республики Беларусь в качестве учебного пособия для студентов экономических специальностей высших учебных заведений

UNIT 8. Advertising and promotion

The total demand for the goods or services offered by any small firm can be divided into established demand¹ and newly created de­mand, sometimes called promoted demand².

Established demand is that volume of sales which comes with­out conscious outside promotion by the firm. People buy because they have had positive experiences with the firm's products, find the firm conveniently³ placed, or are attracted⁴ by the firm's appearance.

Newly created or promoted demand by contrast, is the volume of sales that results from firm's engaging⁵ in various types of acti­vities to draw people to the firm. Promoted demand customers, if pleased, can become established customers. Those firms that supple­ment⁶ established demand with promoted demand show much better sales volume and profits. Almost without exception, additional adver­tising and promotion brings in greater sales volume.

All the activities that go into the development of sales can be grouped under the title promotion of sales. This promotion can use either direct or indirect methods. Every small firm owner should think about using some of the following types of sales promotion.

Types of advertising media. Among the media gene­rally used in advertising are: television, radio, newspapers, magazines, outdoor billboards, specialty advertising (distribution of such items as notebooks, pencils, calendars, blotters, gummed labels, telephone pads, shopping bags), public transportation, yellow pages, direct mail, other media (catalogues, samples, handouts, leaflets, etc.)

Measuring advertising effectiveness. Whenever possible, every advertising program undertaken should be checked⁹ for its effectiveness. Some of the ways the small firms can do this are:

1. Advertise one item in one ad only. By having no references to the item on the sales floor and then counting¹⁰ the calls and re­quests, ad results can be identified.

2. Place identical ads with identifying marks in two separate publications. The reader is asked to bring the ad to the firm to obtain a special price or prize. Count how many ads come in from each source.

3. Omit¹¹ a regular advertising project for itermittent¹² and watch for any change in sales.

4. Check sales results when a new advertisement is placed.

Publicity has always been described as advertising that is not paid for. It includes such things as public news items about the owner of the firm that tend to brighten the firm's image or make friends for the business.

Displays are an one-site method of sales promotion. Products that are not normally considered impulse items¹³ are often sold through an effective display in the windows or on the sales floor. Displays enable the merchant to add changes, interest, and brightness to the standard layout, and when well done can do much to increase sales.

Special event sales Special events to directly promote sales have become a well-established feature¹⁴ of most consumer goods businesses. The firm's anniversary, the firm's president's birth­day, the addition of a new service for customers, the start of the spring and fall seasons, and so on, can all be used as occasions¹⁵ to promote sales. Major holidays, of course, are ideal for sales.

Manufacturer's aids are any form of assistance pro­vided by the manufacturer to small wholesalers and retailers for pro­moting sales. These aids may take the form of national advertising of the products involved¹⁶, assignment of trained personnel to demon­strate the use of a product such as cookware in the particular store, provision of attractive window and floor displays, or monetary contri­butions to an advertising program.

Personal selling means all those activities and charac­teristics of the individual salesperson which make successful sales. Fundamental to all good personal selling is a thorough knowledge of the merchandise. Personality, human psychology are also important.

The four basic steps in making any sale have been summarized as follows: 1. Gaining¹⁷ the prospective customer's attention and interest, 2. Creating desire and overcoming objections, 3. Presenting various solutions, 4. Closing the sale.

Sales promotion campaigns are usually built around a central idea. The campaign may last a day, a week, or even several months. It may be seasonal or associated with a business opening or anniversary, a new product, or the introduction of a new service. The opening of a new department, a new location, or a national or historic commemoration can also be the basis for a campaign.

When the theme is chosen, the campaign itself must be care­fully planned. The list that follows outlines a number of important campaign elements: a basic promotion idea or philosophy must be de­veloped, promotion objectives should be drawn up, various elements of the campaign – advertising, display, and public relations should be studied, responsibilities should be assigned to employees, the program of activities should be scheduled, using a calendar and a timetable, individual promotions should be reviewed after the campaign, critiques should be written and filed for the future reference.

Public relations. A firm's public relations determine its image, or popular reputation, in the general community. The nature of its public relations, good or bad, is reflected in the community's attitude and goodwill toward the firm. Good public relations are cumulative net result, which is more easily destroyed than built. It is the respon­sibility of every person associated with the firm. Every act of the firm's representatives contributes to the overall image of the firm.

Customer relations build sales independently and also contribute to the total image of the firm. Satisfied, happy customers are the best form of advertising and promotion.

Customer services can be a part of both public relations and good customer relations. Many customers want special services and seek out firms that supply them. Examples are air-conditioned stores, night hours for shopping, credit accounts, delivery service, and lines of merchandise not generally available. Pricing policies are sometimes adjusted for particular customer groups as a part of ser­vice. Firms selling industrial products have found that the most valued customer services are on-time deliveries, conformity to specifications of products sold, and efficient accounting procedures.

Product styling and packaging are obvious aids in developing sales volume. When similar products are offered in various styles, customers seek choices. Packaging can be an equal attraction.

Community goodwill. Every owner should be aware of the importance of the goodwill of the public to the firm's success. Every proposed business policy should first be analyzed in terms of its effect upon the company's image. No firm with tarnished¹⁸ good­will will be very successful 1 in a community. Potential purchasers stay away from such firms, sales fall, service becomes more difficult to maintain, and as a result the circle gets smaller. Failure is the ulti­mate¹⁹ result.

All the sales promotion methods reflect a conviction²⁰ that the customer is the most important part of any successful business. There can be no profit in the absence of sales. Efforts to keep present cus­tomers happy and to constantly attract new ones are essential to con­tinued profits and growth.

Notes: 1. сформированный спрос; 2. пропагандистский спрос; 3. удобно; 4. привлекать, притягивать; пленять; 5. занимать­ся; вовлекать; 6. дополнять; дополнение, добавление; 7. про­паганда, паблисити; 8. доброжелательность общества; 9. про­верять; 10. считать; 11. пренебрегать, упускать, пропускать; не включать; 12. прерывистый; 13. импульсивные товары; 14. особенность, характерная черта; 15. случай, возмож­ность; 16. вовлекать, включать; 17. добиваться; достигать; 18. пятнать, порочить; 19. конечный, окончательный; 20. убежденность, уверенность.

COMPREHENSION

1. Answer the following questions.

1) How would you describe established demand as contracted with promoted demand?

2) What is promotion of sales? What types of sales promotion do you know?

3) How would you define advertising?

4) What types of media are used in advertising?

5) What do we mean by checking the effectiveness of advertising? What are some of the methods by which this can be done?

6) What goods are often sold through an effective display in the windows or on the sales floor?

7) What occasions can be used as special event sales?

8) What are the four basic steps in successful selling?

9) What are important campaign elements?

10) What do public relations determine?

11) What are the best forms of advertising and promotion?

12) Can you give examples of special customer services?

13) What is the most important part of any successful business?

14) What efforts are essential to continued profits and growth?

2. In each of the following, select the word or phrase that best completes the sentence or answers the question.

1) When designing an advertising layout, you should use

a. large headlines since big print is easy to read

b. as many ideas as possible since space is expensive

c. a series of elements which draw attention to a regular pattern

d. startling proportions so that the advertising attract attention

2) Which one of the following departments usually has the responsibility in a company for the development of a favourable community image for the business?

a. the advertising department

b. the personnel department

c. the public relations department

d. the purchasing department

3) Which one of the following media is usually the most expensive?

a. radio c. outdoor advertising (billboards)

b. newspapers d. television

4) One way to cut down on advertising expense and still reach cus­tomers is to

a. join a merchants association which shares the cost of advertising

b. take advantage of cash credits given by manufacturers for giving premium space for their products

c. advertise national brands in local papers where an allowance is provided by the national company

d. take advantage of all of these opportunities

5) Which one of the following elements of an advertising layout would be a problem for you if you could not draw or sketch?

a. headline c. illustration

b. copy d. media

6) Which one of the following policy recommendations offers poor advertising advice?

a. The advertiser should spend as much as the budget will allow

b. The advertiser should periodically evaluate the advertising dollar for effectiveness.

c. The advertiser should vary media from time to time to reach different markets

d. The advertiser should read the results of research and polls of buying habits in the area.

7) A method of sales promotion used in supermarkets is

a. trading stamps c. coupons

b. games of chance d. all of these

8) Dependent customers are usually

a. impatient c. nervous

b. skeptical d. undecided

WORD STUDY

3. Match the words with their definitions.

intermittent, check, demand, goodwill, feature, gain, item, omit, publicity, count

1) The wants of buyers in the market.

2) To get or obtain something wanted.

3) The business of attracting public attention and of encouraging general feelings of goodwill towards a product or service in order to sell it.

4) A single article or class of articles in a list, account, inventory, etc.

5) The advantage possessed by an established business over a new business. The attractive force that brings in customers.

6) Make sure that smth or smb is correct, safe, making progress.

7) Say all numbers one after another up to a particular number.

8) Do not include smth in an activity or piece of work, deliberately or accidentally.

9) Smth happening or appearing occasionally or at regular intervals rather than constantly or continuously.

10) A particular part of smth or characteristic that it has, which you notice because it seems important or interesting.

4. Supply the sentences with the missing words.

tarnish, conviction, conveniently, supplement, involve, attract, ultimate, occasion, engage

1) The amount of fuel is displayed ... on a gauge.

2) I tried desperately to ... his attention.

3) It was considered inappropriate for a former President to ... in commerce.

4) They had to get a job to ... the family income.

5) The Oval Office will be used for ceremonial ... .

6) The business seemed to ... an enormous amount of sales.

7) It turned into a witch-hunt that ... the names of many of the coun­try's intellectuals.

8) He knew this action was necessary for the ... success of the talks.

9) Nothing would budge him from his ... that he could run a news­paper successfully.

1) With effective advertising a company can become a ... name.

a. house b. household c. housewife's d. home

2) We need an effective campaign to ... our new product range.

a. fire b. set out c. set off d. launch

3) During the commercial ... , there was an advertisement for a new women's magazine.

a. break b. breakage c. pause d. interval

4) The first thing an ad must do is ... the reader's eye.

a. trap b. catch c. find d. reach

5) We need a name for the product which will ... to teenagers.

a. draw b. attract c. succeed d. appeal

6) They decided to do a mail ... to get people interested in their holiday homes.

a. shot b. shoot c. trial d. list

7) All advertisers must obey the industry's ... .

a. practice code c. practical code

b. code of practice d. code word

8) Advertising on television is very expensive during ... viewing hours.

a. peak b. high c. audience d. big

9) We did a lot of research to ensure that the advertisement would appeal to the ... audience.

a. aim b. arrival c. goal d. target

10) Newspaper advertising ... for 45% of the total.

a. accounted b. counted c. comprised d. came

11) Advertisers look at each newspaper's ... figures before deciding where to place their advertisements.

a. circular b. population c. circulation d. revenue

12) As part of our service we provide ... display material.

a. selling point c. appointed

b. point of sale d. salesmanship

13) If you advertise at airports, you have a ... audience.

a. captured b. slave c. captivated d. captive

14) She does the art work while I write the ... for each advertise­ment.

a. copy b. copies c. copyright d. media

GRAMMAR FOCUS

6. Complete each of the sentences by using the past form of one of the verbs on the left and combining it with one of the words on the right. Use each verb once only. Some words on the right are used more than once.

cut	get	back	through
deal	keep	down	forward
find	put	out	with
read	think	over

2) After testing everything they finally ... ... what was wrong with the machine.

3) They ... costs ... by using less expensive materials.

4) The Finance Department ... ... the query about discounts.

5) He ... the figures ... to her so that she could be sure that he had the quantities exactly right.

6) She ... ... an interesting proposal at the meeting.

7) They ... the offer ... for a week before making a decision.

8) After ringing up three times I finally ... ... to head office.

2) I hope the negotiations will be concluded ... .

3) This credit card is ... accepted so I take it everywhere.

4) Make sure you're ... insured when you go to the States.

5) The accountant had to check that the company was ... sound.

6) You have been ... selected to try out our latest product.

7) I'm sure the Government's policy will ... cause a recession.

8) Get this software ... free when you buy one of our computers.

1) Price increases can ... to ... .

2) A sales decrease may ... in ... .

3) Doubling of the advertising budget should ... to ... .

4) A gradual decline in the market sector has ... in ... .

5) A reduction in staff salaries will ... to ... .

EFFECT

staff motivation falls

fall in demand

redundancies

sales increase

share price drop

DISCUSSION

1. Can you give an example of manufacturer's aids helping individual retailers make sales?

2. Does a neighborhood store in your hometown do any advertising? How? Would you recommend any other advertising?

3. Is advertising as important to small firms as to large ones?

4. Do you agree that good public relations can normally not be pur­chased? Why?

5. What is meant by saying that product styling can be an indirect sales promotion device?

1. Write a summary of the text.