Promoting and Selling - Study Is My Buddy 2014

Promoting and Selling
Year 9 Commerce – Option 2
Students learn about:
The selling process
 Factors which differentiate products
 Service, convenience, value and social
 Environmental
 Product promotion strategies
Students learn to:
The selling process
 Identify why consumers select particular
 Discuss social, ethical and environmental
considerations in promoting products.
 Identify a range of strategies used to promote
 Discuss the role of gender in product promotion.
The Selling Process
 The selling process involves:
 The promotion of a good or service AND
 The sale of a product to a buyer
 A product can be a good such as a watch or a
service such as insurance. That is a product can be
tangible or intangible, permanent or consumable.
 A consumer can choose between different brands
of a particular product.
 The promotion of a good or service AND
 The sale of a product to a buyer
Factors that differentiate products –
or influence consumers to choose
one product over another
Draw this
diagram in your
book. Write a
sentence next to
each factor to
explain the
factors which
 The quality of the service provided
by a retail outlet.
 After-sales service for ongoing
maintenance like a motor car.
 How well the product does the job
it is designed for.
 Consumers are inclined to buy the
product that is readily available.
 Consumers may be unwilling to wait
for a product to be ordered and
 Choices include:
 The cheapest product.
 The brand on sale or offered as a special.
 The brand representing good value
because it lasts longer, is of higher quality
or has more features than similar products.
 Fashion
 Teenagers buy a particular brand like
Billabong because it is seen as cool or
worn by friends.
 Status
 People buy a label because of the status it
represents and the link it has to wealth and
success like BMW, Audi.
 People may choose
environmentally friendly
products to reduce the impact
their consumption practices
have on the environment.
 Examples:
 Unbleached paper products
made from recycled paper.
 Phosphate-free detergents.
 Environmentally friendly brand
 Planet Ark
 Earth choice
 Greencare
Activity – factors which
differentiate products.
 Compile a list of the goods and services you
purchased in the last week. Identify and
describe the factors that influenced your
decision to buy each good or service.
 Imagine you have decided to buy the
 A DVD player
 A pair of jeans
 Dishwashing detergent
Which of the five factors would be most
important to you when deciding which brand to
buy. List the factors from most important to least
Product promotion
strategies – to increase sales
 The aims of a promotion:
 Introduce a new product.
 Sell more of an existing product.
 Attract new customers.
 Demonstrate the advantage of
one product over alternatives.
 Improve the company’s image
Strategies used to raise the
Activity – Copy
profile of a product
strategies and
 Advertising
 Product endorsements and
 Event sponsorship and venue
naming rights
 Product placements
 Guerilla marketing
 Direct marketing and junk mail
 Special promotions
 Personal selling
 Publicity
write a definition
of each strategy.
Activity –
Construct a mind map identifying
as many forms of advertising as
you can think of.
 Everyday we consciously or
unconsciously absorb messages
which influence our behaviour as
consumers from:
 Television
 Radio
 The internet
 Newspapers and magazines
 On billboards, buses and trains
 At sporting events
 On items of clothing and personal and
household products.
Central to advertising –
brand name, logo or slogan
 A well known brand is:
 Often associated with an
image that appeals to
particular groups. For example
Nike uses imagery that
appeals to young, active, funloving consumers.
 Widely used as the generic
name for a class of product.
For example Levi is used as
the generic name for jeans no
matter what the brand.
 Logos
 Can be instantly recognised
by consumers. For example
Nike’s swoosh, Coca-Cola’s
Develop a collage of well-known
logos. Which of these logos
appeal to you and why?
Advertising –
Packaging and innovations
 Eye catching packaging, wrapping or a
container helps a product stand out on the
supermarket shelf.
Activity –
Decide how you will
package what you are
selling on market day.
Product endorsements and
 Product endorsement definition – the use of
sporting stars and media personalities to promote
a good or service.
 Sponsorship definition – brand strengthening via
the funding of elite sporting personalities and
 This strategy attempts to increase brand
recognition and convince consumers the
product is superior and the company more
trustworthy than other products or companies.
Brainstorm a list
of sporting stars
and media
celebrities that
you have seen
products and
List the
against the
name of the
Event sponsorship and venue naming rights
Activities –
 Sponsorship example:
 Telstra’s sponsorship of both the National Rugby
League and the Australian Ballet.
 Naming rights definition – the right of a company to
include its own name in the name of a competition or
sporting facility in return for the company financially
supporting or sponsoring the event or venue.
 Naming rights example:
 In 2002 Telstra paid $60 million dollars for the naming
rights for Sydney’s Stadium Australia to be called
Telstra Stadium. (This is now called ANZ Stadium).
1. Compile a list of
and venues
sponsored by
2. Access the
Optus website
Compile a list
of the activities
sponsored by
Product placements
 Product placements definition – the prominent
display of products in movies or television programs.
 Product placements example – The James Bond Film,
Die Another Day.
 The film has 25 promotional partners, 11 did not directly hand over
cash but instead agreed to spend $200 million on worldwide
marketing campaigns to promote their product and the film.
 Ford, the owner of Aston Martin paid the film producers $63 million to
replace BMW as the official Bond vehicle supplier.
 Bond
 Drives an Aston Martin
 Wears Brioni suits
 Has an Omega watch
 Uses a Phillips shaver
 Drinks Bollinger Champagne
Guerilla marketing
 Guerilla marketing definition – a flexible, nontraditional way of promoting a brand name.
 Example – when one company sponsors a major
sporting event a competing company
sometimes seeks to have its brand name
publicised at the event by unconventional
means including the distribution of T-shirts bearing
the company’s brand name or logo.
Direct marketing
 Direct marketing definition – contacting
householders personally, by name via businesslike
phone calls or letters. It is carried out via
telemarketing (selling over the telephone), mail
and email.
 Direct marketing example – real estate agents
may phone or write to householders directly to try
to get them to buy or sell property.
Junk mail
Collect the junk
mail delivered to
your home over a
1. List the
that use this
method of
 Junk mail definition – advertising flyers delivered via the
letterbox. It is especially popular with supermarket chains,
hardware stores and real estate agents. It provides
information about specials.
1. What types of
goods and/or
Special promotions
 These can be used to boost normal sales.
 They can be hard to sell stock or goods
purchased from the manufacturer under a
special pricing deal.
 Used to increase store ‘traffic’. People attracted
by the special promotion may be encouraged to
buy full-priced goods once they have entered
the retail outlet.
Activity Collect
examples of
from the print
Identify the
types of special
Special promotions - examples
o ‘Specials’ in retail outlets especially supermarkets.
o Discounts on the recommended retail price.
For example Target, advertises a 20% off sale on
specific categories of goods such as underwear.
o Prizes or gifts with particular purchases.
o Free samples used to introduce new products for example
washing detergents distributed via letterbox drops.
o Demonstrations of new products in retail areas.
o Bonus coupons/vouchers for future purchases for example a
free coffee once the customer has purchased a certain
number of coffees.
o ‘Two-for-one’ or ‘buy one and receive 50% off the second’
o Internet free offers. For example David Jones offering account
holders two-year interest free terms on purchases of electrical
goods costing more than $500.00.
o Sponsorship of charities or non-profit organisations. For
example McDonald McHappy Day where $1 from every Big
Mac goes to support the activities of Ronald McDonald
Decide on a
you could
use on
market day
to increase
Personal selling
 Personal selling definition – a form of direct selling
involving door-to-door or in-store promotion of a
particular product.
 Advantage – allows consumers to ask questions
and clarify issues about the product.
 Disadvantage – the seller can pressure a
potential buyer into making a purchase or may
suggest adding accessories to the initial
 Examples – Foxtel, Avon, Mobile phone access
Personal selling in retail
outlets - Up selling
 Up selling is a technique used by salespeople to
promote add on sales and increase profits.
 Up selling example – The hairdresser suggests you
purchase a special shampoo and conditioner in
addition to a haircut.
 Publicity definition – free media coverage given to a
company by media outlets like radio stations.
 Publicity example – The weekend newspapers have a large number of
real estate advertisements for houses for sale paid for by the real
estate industry as well as feature articles about real estate issues, free
publicity for the real estate industry.
The role of gender in
product promotion
 Males and females are frequently portrayed in
advertising in ways that appeal to certain
sections of the population
 Stereotypes are often applied.
 Examples  Girls love dolls.
 Boys want to play with cars.
 Women are often seen as beautiful, tall and thin.
 Men are shown as wealthy, good looking, well
dressed and athletic or ‘as one of the boys’ or
part of a sporting team
1. Define the term
1. ‘Advertising often
challenges views
about males and
females’. Do you
think this
statement is true
or false? Explain
your answer.
Activity –
Gender in advertisements
 Collect 3 advertisements from magazines or
 Identify the product being advertised.
 Describe how the female(s) or male(s) are pictured
in the ad.
 Evaluate whether this is a positive or negative image
of female or males.
 Decide how the advertisement is trying to influence
the reader.
 What do you think of such ads?
Students learn about:
Targeting consumers
 Processes used to identify target markets.
 Legal and ethical issues associated with product
promotion strategies.
Students learn to:
Targeting consumers
 Match appropriate target markets for particular
 Research and discuss a range of legal and
ethical issues associated with product promotion.
 Identify how promotion strategies target
particular groups in the community.
Targeting consumers
 For a company’s products to be successfully promoted the
company must know who it is selling it to.
 Examples
 Children – Children’s television times features advertisements for
products that appeal to young children like toys and snack foods so
children try to persuade their parents to buy the products.
 Teenagers – Advertisements in magazines like Dolly, Girlfriend and
television show like The Simpsons, Home and Away feature personalities
popular with young people. This is to encourage sale of clothing, music
and fast food bought by this age group.
Target markets
 Target market definition – A specific
demographic or social group to which
an advertiser wishes to appeal.
 Target market examples –
 Middle aged men
 The affluent
 Professional women
 The aged
Activity – Who is your target market
for market day. How can you
advertise to appeal to this market?
Mass marketing
 Mass marketing definition –
Promotional campaigns targeting
a large proportion of the
 Product examples – food and
household items.
 This kind of marketing is:
 Informative.
 Aimed at a wide variety of people
in the community, not specific
Niche marketing
 Niche marketing definition – Promotional
campaigns targeting quite small groups of
potential customers.
 Product examples – luxury cars, ski equipment,
adventure holidays.
 This kind of marketing is:
 To sell a particular product in a relatively small or
exclusive market.
 The image promoted is more important than the
price in advertisements.
Processes used to identify
target markets
 Market research definition – The gathering of
information about the needs and desires of
potential consumers.
 Often involves use of a survey in person or on the
 Focus group definition – A group of potential
consumers chosen at random who give their
opinions about a campaign developed to
promote a particular good or service.
 Used to ensure:
 Advertising campaigns appeal to the target
 Whether there is a demand for the actual good or
service being sold.
Bring in two
items from
home that are
the same
product but a
See if the
brand for you
product can
be worked out.
Legal and ethical issues
associated with product
promotion strategies
 Advertising can brainwash people
to buy things they do not really
 Legal regulations include:
 Banning promotions for certain
products. For example cigarettes.
 Self regulation definition – ethical
standards and complaint resolution
procedures put in place and
maintained by an industry group.
Industries involved in self regulation
 The Australian Association of National Advertisers
 The Advertising Standards Bureau (ASB)
 Considers complaints about any form or published or
broadcast advertising. These include complaints about:
 Discrimination (race, nationality, sex, age, sexual
preference, religion, disability or political belief)
 Violence
 Language
 Portrayal of sex, sexuality or nudity
 Health and safety
 Alarm or distress to children
 If advertisements are considered inappropriate the
company generally agrees to withdraw or change the
ad otherwise they can be reported to government or
media bodies and given penalties.
 Individuals or groups can also directly force large
companies to withdraw promotional material.
Unethical promotional
 Bait and switch advertising – Advertising a
product for sale where there is little or no stock on
hand so the customer is persuaded to buy a
more expensive product.
 Sales price manipulation – When goods are
marked with a sales price that is higher than the
regular price so customers are tricked into
thinking they are getting a bargain.
Unethical promotional
strategies continued
 Special prizes or offers – Receiving a
phone call or letter notifying you that
you have won a special prize but before
you can collect the prize you must
purchase another product.
 High pressure door-to-door selling –
Products offered may be acceptable
but consumers are pressured into signing
an agreement to buy on the spot or to
commit themselves to home trials.
Students learn about:
Applying selling techniques
 Processes associated with the development and
implementation of selling techniques for a
particular product or service.
 Monitoring and evaluating selling techniques.
Students learn to:
Applying selling techniques
 Analyse the selling techniques used to market a
product or service to maximise profit.
 Investigate a number of these selling techniques
for a product.
 Evaluate the effectiveness of the selling
techniques of a particular product.
 Evaluate the effectiveness of selling techniques
on consumers.
Applying selling techniques
 Steps to selling a product:
1. Develop selling techniques for identified target
1. Implement selling techniques.
1. Monitor and evaluate selling techniques.
Activity – television survey
 View an hour of television in the afternoon and
another hour in a mid-evening time slot.
Compare the types of products advertised in
these time slots.
Selling techniques
 Promotional strategies:
 Brand name, logo, packaging
 Advertising
 Special promotions
 Personal selling
 Publicity
Selling techniques continued
 Other factors:
Activity - Describe the layout of
your market day stall.
 The Shop layout – if roomy, attractive and well lit
sales are higher than if difficult to move around
the shop and locate items. For example lighting
for fruit and vegetables is often soft and warm to
display the colour of the goods in the best
possible way.
 Music – to create an atmosphere that
encourages shoppers to buy. For example
clothes shops for young people play music that
appeals to this audience.
 Positioning of item in the store – if the item is put
at the checkout, at the end of the aisle or at eye
level people are more likely to buy it.
Activity – sales strategy for a
new product.
 You are part of a sales team for an Australian
company that has just developed a new product.
You wish to target the teenage market.
 Prepare and present a PowerPoint presentation
describing the product (including its name, price
and logo) and the strategies you plan to use in
selling the product. Include a magazine-style
advertisement that you have designed to promote
the product.
 Design a survey form to enable other students to rate
the product, its logo and price and the promotion
strategies. The ratings could range from poor to
 Present your product and sales strategy to the class.
Monitoring and evaluating
selling techniques
 Companies keep detailed records to monitor
the volume and value of sales on a weekly,
monthly, quarterly, six monthly and an annual
 Personal logins by staff on computerised cash
registers track sales performance of individual
staff. Underperforming staff are given extra
training or dismissed if their performance
does not improve.
 Sales of goods during special in-store
promotions can be calculated to determine
the effectiveness of the strategies adopted.
 Sales can be analysed before, during and
after media based advertising campaigns to
determine whether the promotion is making
a difference to sales.
Monitoring and evaluating
selling techniques continued
 Product sales can be compared to previous
years to see if a marketing campaign is
 Sales can be compared on a store-by-store basis
or on the basis of which groups of people are
purchasing the product. Resources can be
reallocated or increased to boost sales in specific
stores or markets.
 Consumer surveys and focus groups can be used
to gather information about how well people
know a particular brand or about the
effectiveness of different selling techniques.
Activity – Mobile phone study
 In pairs make a detailed study of how a particular
brand of mobile phone is sold and report your findings.
You should:
 Analyse the appeal of the name, logo and packaging.
 Identify the target audience it is appealing to.
 Compile a summary of the kind of advertising used for this
product; for example radio, television, magazines,
newspapers, billboards, cinemas and the use of
 Comment on the nature of the advertising. For example: Is
price used to promote the product? Who is it designed to
appeal to?
 Comment on the amount of advertising and when it
 Describe the special offers associated with the sale of the
Students learn about:
Current issues
 Current issues involving promoting and selling
goods and services.
Students learn to:
Current issues
 Identify and investigate current issues relating to
the promotion and selling of goods and services
and the impact on consumers.
Current issues in promoting
and selling products
 Right to privacy
 Spam
 Telemarketing
 A new style of direct marketing
 Hidden advertising
 Tobacco and alcohol advertising
Right to privacy
 People expect to be
protected from interference or
intrusion from others in their
day-to-day activities.
 New technologies especially
the internet and mobile
phones mean people receive
messages containing
advertisements whether they
want to or not and they have
little protection against this.
 Spam definition – messages including
advertising received via the internet
and which the user has not requested.
 Mostly commercial advertising for poor
quality products or get rich quick
 Costs the sender little to send, costs
paid for by the receiver or the internet
service provider.
 An example of invasion of privacy due
to new technology because most do
not want to receive.
 Telemarketing has become increasingly
unpopular in recent years.
 Computers can place phone calls
increasing calls received by many people.
 It is seen as an invasion of privacy, an
unwanted interference and an
 Some Australian states have placed limits or
specific requirements on calls:
 Prohibiting the use of automatic calling
 Requiring clear disclosures at the beginning of
the call.
A new style of direct
 Advertising was previously one way
communication through a mass medium like
television or newspapers but today enables two
way communication between buyer and seller.
 This presents the risk the seller will take advantage
of the potential buyer. For example – a child may
become involved in a financial transaction via
the internet without the knowledge of a parent
or responsible adult.
Hidden advertising
 Hidden advertising definition – a
form of advertising that we may
not be conscious or aware of.
 Hiding images and messages within
advertisements which have the
potential to be absorbed
subconsciously and affect our
behaviour even though we are not
aware we have seen them.
Define the terms:
Right to privacy,
Hidden advertising
Tobacco and alcohol advertising
 This advertising is highly regulated as it
can cause death or injury.
 All forms of tobacco advertising are
banned in Australia with the exception
of the Australian Formula 1 Grand Prix.
 Medical experts argue the promotion of
tobacco and alcohol cause
consumption to increase and that the
harmful impacts of these goods can be
reduced by banning or severely
restricting their promotion. Others argue
there is no evidence product
promotions influence consumption.
Activity –
Current issue role play
 A person appears at your door offering to
demonstrate a vacuum cleaner.
 You go to an electrical appliances shop to
look at a well priced CD player that was
advertised in a junk mail flyer but there are
none in stock.
 You receive a phone call from a marketing
firm informing you that you have won a free
prize of a weekend at a Gold Coast resort.
 You want to return the ‘sale’ item to the shop
you bought it from as you saw it was cheaper
at another shop.
Activity –
Current issue research
 Use website
 Select a current issue on promoting and selling.
 Identify and describe the main concerns relating to this
 How are these concerns being addressed?
 Prepare a comic life presentation to outline your

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