6

Promoting and selling

Focus statement

In this chapter we investigate the strategies sellers

use to promote products and maximise sales. We also
evaluate the impact of these strategies on consumers.
The issues addressed will help you make better
choices when you buy goods and services.

In this chapter you will learn

about:
the selling process
factors that differentiate products
product promotion strategies
processes used to identify target
markets
legal and ethical issues associated
with product promotion
applying selling techniques
monitoring and evaluating selling
techniques
current issues in promoting and
selling.

6.1 The selling process

Getting technical
advertising The promotion of a good or service in order to
increase sales and profits or to inform the public.
direct marketing Contacting householders personally, by
name, via businesslike phone calls or letters.
ethical Relating to ethics, which are a set of morals that
help govern human conduct.
guerilla marketing A flexible, non-traditional way of
promoting a brand name.
junk mail Advertising flyers delivered via the letterbox.
marketing Promotional campaigns, including advertising,
to make products known to consumers.
naming rights 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.

Figure 6.1a Advertising involves the promotion of goods and

services.

product endorsement The use of sporting stars and

media personalities to promote a good or service.

Factors that differentiate products

product placements The prominent display of products in

movies or television programs.
sponsorship Brand strengthening via the funding of elite
sporting personalities and teams.

A number of factors influence consumers to choose

one product over another (see Figure 6.1b). You will
already be familiar with some of these factors from
your reading of Chapter 1.

telemarketing The promotion of goods and services via

the telephone.

The selling process involves both the promotion of a

good or service and the sale of a product to a buyer.
This process sounds simple and straightforward but
there are, in fact, a lot of factors involved. Some of
these factors are not always obvious or clear. First, a
product can be a good, such as a chocolate bar or a
watch, or a service, such as insurance or a subscription
to an Internet service provider. In other words, a
product can be tangible or intangible, permanent or
consumable. Second, a consumer can almost always
choose between different brands of a particular
product. For example, if you want to fly to Melbourne,
you can choose between Qantas and Virgin. Similarly,
if you want to buy a soft drink, there are many different
brands to choose from. (Refer to Chapter 1 for more
information about goods and services.)

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Value for money

Convenience

Factors that
influence consumers

Service

Social and ethical

Environmental

Figure 6.1b Differentiating between products: the factors that

influence consumers to choose one product over another.

Service
The quality of the service provided by a retail outlet or
service provider is an important consideration for many
consumers. After-sales service is also an important
consideration for products that require ongoing maintenance; for example, motor vehicles. Service can also
refer to how well the product does the job it is designed
for.

(see Figure 6.1c). Environmentally friendly brand names

include Planet Ark, Earth Choice, Greencare and Safe.
These products are promoted in ways that appeal to
the concerns of the environmentally aware consumer.

Convenience
Many consumers are inclined to buy the product that is
readily available. Comparison shopping, for example,
takes time. People may also be unwilling to wait for a
product to be ordered and delivered.

Value for money

Some buyers will choose to buy the cheapest product,
while others will choose whichever brand is on sale or
offered as a special. Some consumers will choose
the brand that represents good value because it lasts
longer, is of higher quality or has more features than
other similar products.

Social and ethical factors

Status and fashion are important considerations for
some consumers. Teenagers, for example, will often
buy a particular brand of clothing or footwear if it is
seen as cool or is worn by friends. Brands such as
Billabong, Mambo and Nike have become must haves
for fashion conscious teenagers even though other
brands may be cheaper and of equal or better quality.
Many older consumers are also very brand conscious.
Fashion labels such as Armani and Versace are popular
with some people because of the status they represent.
People will often buy a particular make or model of car
because it is associated with an image that they want
to display. For example, BMW, Audi and Mercedes
Benz are often linked with wealth and success, while
V8 Holden and Ford models are associated with
masculinity and personal power.
For some consumers, ethical issues are important.
They may, for example, refuse to buy particular brands
of make-up because the products have been tested on
animals.

Environmental factors
People are becoming much more aware of the impact
their consumption practices have on the environment.
Producers have responded by introducing products
that are environmentally friendly. Examples of these
products include unbleached paper products made
from recycled paper and phosphate-free detergents

Figure 6.1c Producers target the environmentally aware consumer

by promoting a range of environmentally friendly products.

Comprehending the text

1

What does the selling process involve?

List the factors that distinguish one good or service from

another. Explain each factor in a sentence or two.

Activities
1

Working in groups, compile two lists:

a

a list of the goods that members of your group

purchased in the last week

b a list of the services purchased in the last week.

Try to remember the factors that influenced your decision
to buy each good and service. Share your reasons with
your group.
2

Imagine you have decided to buy the goods below.

Which of the five factors discussed opposite would be
the most important to you when deciding which brand to
buy? For each good, list the factors from most important
to least important.
a

a DVD player

b a pair of jeans
c

dishwashing detergent

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135

Product promotion strategies

Increasing the sales of a particular product usually
depends on some form of promotional activity. Such
promotions are used to inform, persuade and remind
potential buyers about the benefits and features of the
product.
The aims of a promotion may be to:
introduce a new product
sell more of an existing product
attract new customers
demonstrate the advantage of one product over
alternatives
improve the companys image.
Some of the strategies that companies use to raise the
profile of their products include:
advertising
product endorsements and sponsorships
event sponsorship and venue naming rights
product placements
guerilla marketing
direct marketing and junk mail
special promotions
personal selling
publicity

Advertising
Advertising is all around us: on television, radio
and the Internet; in newspapers and magazines; on
billboards, buses and trains; at sporting events; and
on many items of clothing and a range of personal
and household products. Every day we consciously
or unconsciously absorb messages developed by
advertising agencies on behalf of companies providing
a range of goods and services. There is little doubt that
these messages influence the behaviour of consumers.
An effective advertising campaign can result in a
boost in both sales and profit. Some advertising is
informative. It provides us with information about
new goods and services or allows us to compare the
features of competing products.
Central to the advertising process is the brand name,
logo or slogan associated with particular products or
companies. Often a well-known brand is associated
with an image that appeals to particular groups of
buyers. Advertising plays an important role in creating
and promoting this image and in developing brand
recognition within a particular group. Nike, for example,

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uses imagery that appeals to young, active, fun-loving

consumers.
Sometimes the brand names become so well known
they are widely used as the generic name for a class
of product. Levis, for example, is often used as the
generic name for jeans no matter what the brand. Other
examples include Gladwrap, Panadol and Walkman.
Often the logos used by companies are instantly
recognised by consumers. McDonalds golden arches,
Nikes swoosh, Coca-Colas bottle and Qantass
flying kangaroo are examples of logos that are known
worldwide.

Figure 6.1d Logos are used to prompt instant recognition in

consumers.

Packaging is an important part of the advertising

process. The packaging, wrapping or container is
designed to appeal to consumers. An eye-catching
design will help a product stand out on the supermarket
shelf.
Advertisers are always looking for new ways to promote
a product. Some of the most recent innovations include
the increased use of celebrity endorsements, naming
rights for major events and sporting facilities, direct
marketing, junk mail and guerilla marketing.

Product endorsements and sponsorships

Sporting stars and media celebrities are often used
to promote products. Well-known personalities may
be paid for recommending products (this is known as
product endorsement) or they may be supported by
a company financially while training and performing
in return for promoting the companys products (this
is known as sponsorship). Well-known people are
linked with a particular product or company by various
means; for example, by appearing in the companys
advertisements and wearing or using the companys
products. Advertisers use this strategy in an attempt
to increase brand recognition and convince consumers
that the product is superior and the company more
trustworthy than other products and companies.
(See the box Ian Thorpe: sponsorship and product
endorsement.)

Ian Thorpe: sponsorship and

product endorsement
Ian Thorpe has received many awards in his short career,
including the prestigious 2002 American International
Athlete Trophy for Worlds Most Outstanding Athletethe
first Australian to do so. He was also voted the World
Swimmer of the Year in 2001, 1999 and 1998 and was
named Young Australian of the Year in 2000.
Ian Thorpe has sponsorship agreements with a range of
companies that benefit from being associated with this
world famous elite athlete who seems both trustworthy
and likeable.

Event sponsorship and venue naming

rights
Companies seek to increase public recognition of their
brands by buying the naming rights for major sporting
and cultural events. Examples of recent corporate
sponsorship of sporting events and cultural institutions
include Teltras sponsorship of both the National Rugby
League and the Australian Ballet, Carlton and Uniteds
sponsorship of the Australian Football League, Vodafones sponsorship of the Australian Rugby Union and
the Seven Networks sponsorship of Opera Australia.
Buying the naming rights for major sporting venues
is another way companies make sure that a brand
name is regularly mentioned in the media. In 2002,
Telstra paid $60 million dollars for the naming rights
for Sydneys Stadium Australia, now known as Telstra
Stadium (see Figure 6.1f).

Figure 6.1f Sydneys Telstra Stadium.

Product placements

Figure 6.1e Sports champions, such as Ian Thorpe, earn a lot of

money from sponsorship deals and product endorsements.

In 2003 Ian Thorpes sponsors included:

Telstra

Adidas

Aquarius (Coca-Colas number one selling sports drink in

Japan)

the Australian Tourist Commission

Uncle Tobys

Omega

Audi

TV Asahi (one of Japans five national television

networks).

Product placement involves having products displayed

prominently in movies or television programs. Companies usually pay for such placements. (See the
ariticle Product placement: more than just a movie
page 138.)

Info.com.tech
Nike sponsorship
Activity
Access Nikes website <www.nike.com>. Compile a list of
the sports stars sponsored by Nike.

Promoting and selling

137

Product placement:
more than just a movie
by Suzanne Carbone

roduct placement in movies is big business

just ask James Bond.
You know it as Die Another Day, but it could
just as easily have been called Products Galore.
The twentieth James Bond film, starring Pierce
Brosnan and Halle Berry, exploded on to the
screen with many of the worlds top international
brands along for the ride.
Bond drives an Aston Martin, wears Brioni
suits, sports an Omega watch, uses a Philips
shaver and drinks Bollinger champagne. Ford, the
owner of Aston Martin, paid the films producers
$63 million to replace BMW as the official Bond
vehicle supplier.
However, not all the companies with their
brands featured in the film paid huge amounts for
their products to appear. While the Bond film has
25 promotional partners, 11 did not directly hand
over cash. Instead, they agreed to spend $200
million on worldwide marketing campaigns that
promote both their products and the film.
Brand placement can result in a big increase in
sales. The placement of a Hersheys chocolate bar
in ET increased sales by more than 60 per cent in
the three months following the films release.
Product placement is not new. One of the first
product placements was James Deans use of an
Ace comb in Rebel Without a Cause (1955). Shops
sold out of the comb within days of the films
release. Coca-Cola, which first used this technique
in Its a Mad, Mad, Mad, Mad World (1963),
continues to use product placement as a way of
increasing brand recognition.

Guerilla marketing
Guerilla marketing is an unconventional and very
flexible way to promote a brand name. For 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. This might include, for example, the distribution
of T-shirts bearing the companys brand name or logo.
In some cases it involves stunts such as that shown in
Figure 6.1h.

Figure 6.1h One of two male streakers who disrupted a Bledisloe

rugby union match between Australia and New Zealand at Sydneys
Telstra Stadium. Both had the name Vodafone emblazoned on their
backs. Vodafone denied responsibility for the stunt.

Direct marketing
Direct marketing is carried out via telemarketing
(selling over the telephone), mail and email. It involves
contacting householders personally, by name, via
businesslike phone calls or letters that market products. For example, real estate agents will often phone
or write to householders directly to try to get them to
buy or sell property. This personal approach is often
seen as more successful than general television or
newspaper advertising.

Junk mail

Figure 6.1g Product placement in movies increases sales and profit.

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The use of advertising flyers (junk mail) has increased

significantly over the last decade. Delivered via the
letterbox, this form of advertising is especially popular
with supermarket chains, hardware stores and real
estate agents (see Figure 6.1i). While some people
object to this type of advertising others use it as a way
of finding out about special offers at retail outlets.

 two-for-one or buy one and receive 50 per cent off

the second offers
interest free offers. For example, retailers such as
David Jones offer their account holders two-years
interest free terms on purchases of electrical goods
and furniture costing more than $500
sponsorship of charities or non-profit organisations.
For example, McDonalds McHappy Day promotion,
when $1 from every Big Mac sale goes to support
the activities of Ronald McDonald House.

Personal selling

Figure 6.1i Advertising flyers, delivered directly to your home, have

become an important form of advertising over the last decade.

Special promotions
Special promotions are used to boost normal sales.
Often these promotions are limited to selected items.
These items might be hard-to-sell stock or goods that
have been purchased from the manufacturer under a
special pricing deal. Sometimes special promotions
are used to increase store traffic. People attracted by
the special promotion may be encouraged to buy fullpriced goods once they have entered the retail outlet.
Examples of special promotions include:
specials in all kinds of retail outlets, especially
supermarkets
discounts on the recommended retail price. For
example, Target, the budget retailer, often advertises
a 20 per cent off sale on specific categories of
goods, such as underwear
prizes or gifts with particular purchases
free samples used to introduce new products.
For example, samples of washing detergents are
sometimes distributed via letterbox drops
demonstrations of new products in retail areas
bonus coupons/vouchers to be used for future
purchases at a store. For example, a coffee shop
may offer a customer a voucher for a free coffee
once the customer has purchased a certain number
of coffees

Personal selling is a form of direct selling involving

door-to-door or in-store promotion of a particular
product. Telemarketing is another type of personal
selling. Pay television and mobile phone access is
often promoted by door-to-door selling, as are product
lines, such as Avon, Nutrimetics, Tupperware and
Amway. Unlike advertising, personal selling allows
consumers to ask questions and clarify issues about
the product. Therefore, the salesperson needs to have
a thorough understanding of the product, the needs of
the customer and the selling process. However, the
seller can also pressure a potential buyer into making
a purchase or may suggest adding accessories to the
initial purchase.
Salespeople in retail outlets also use personal selling.
The attitude and skill of a salesperson can make or
break a sale. Upselling is a technique used by many
salespeople to promote add-on sales and increase
profits. We have all been asked whether we want fries
or a drink with our burgers when we visit McDonalds.
Upselling at the hairdressers might mean that the
hairdresser suggests that you purchase a special
shampoo and conditioner in addition to a haircut.

Publicity
Publicity is free media coverage given to a company
by media outlets (for example, newspapers and radio
stations), especially when the company releases a new
product or buys blocks of advertising space or time
with the media outlet. For example, in the weekend
newspapers, there is always a large number of real
estate advertisements for houses for sale which are
paid for by the real estate industry. In the same
sections of the newspapers there are also often feature
articles about real estate issues. This amounts to free
publicity for the real estate industry. The aim is to
generate interest in real estate, thereby creating more
business for the industry and more advertising for the
newspaper.

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139

Comprehending the text

1 Explain why companies advertise.
2 How is packaging linked to advertising?
3 Give reasons why companies use sporting stars and
media celebrities to promote their product.
4 Explain what the term product placement means.
5 Define the term guerilla marketing.
6 Compare junk mail with direct marketing.
7 List the main aims of promotional activities.

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. Often this reinforces existing
ideas about the sexes and their relationships. This
occurs because advertising often involves the use
of stereotypesexaggerated pictures or images of
particular groups. There is often some truth at the heart
of a stereotype, but the image has been distorted to
such an extent that it would not be considered to be
true by most people.

8 Outline the strategies used to raise the profile of a

product in the minds of consumers.
9 a

What is the role of special promotions?

b Give examples of special promotions. Include

examples from your own experience as a consumer.
10 Define the terms personal selling and upselling.
11 Why are media outlets keen to give free media coverage
to some producers of goods and services?

Activities
1 In groups, construct a mindmap identifying as many
forms of advertising as you can think of.
2 a

Using magazines, develop a collage of well-known

logos.

b Which of these logos appeal to you and why?

3 Over a five-day period, collect the junk mail delivered to
your home.
a

Compile a list of the companies that use this method

of advertising.

b What types of goods and/or services dominate?

4 Collect examples of special promotions from the
print media. Identify the types of special promotions
represented.
5 In groups, brainstorm a list of sporting stars and media
celebrities that you have seen promoting products and
services. List the products endorsed against the name of
the personality.
6 In pairs, compile a list of sporting competitions and
venues sponsored by companies.
7 Study the article Product placement: more than just a
movie (page 138). The next time you watch a movie, list
the examples of product placement you observe.

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Figure 6.1j Gender-based advertising helps to promote

stereotyping and plays a major role in shaping our self-image.

Stereotypes are often applied to the sexes. For example,

one stereotype about the sexes in childhood might be
that all girls love dolls and all boys want to play with toy
guns. In advertisements, women are often portrayed as
beautiful, tall and thin. What isnt mentioned is that for
many women such a look is unachievable, unrealistic
and often potentially unhealthy. More alarmingly,
women (and sometimes men) are exploited in sexually
suggestive ways to sell products. There is usually no
association between the product and the women and/
or men being exploitedthe sexually suggestive image
is just used to grab your attention.
Advertising also presents images of masculinity that
are unachievable for most males. Men are often
portrayed as wealthy, good looking, well dressed and
athletic. Alternatively, they may be portrayed as one of
the boys or part of a male sports team. Such images
are unachievable for many males.

Activities
1

Study two television advertisements in detail. Identify

the presentation of genders in the advertisements by
copying and completing the table below.

Characters

Advertisement 1

Advertisement 2

Gender
Age
Race
Clothing
Hairstyles
Make-up
Stance/walk
Gestures
Facial expression

2
Figure 6.1k Often sexually suggestive advertising is used to grab
the attention of consumers.

What is the impact of presenting these images of males

and females? Many critics argue that they encourage
and maintain traditional gender relationships and
stereotypes and undermine the confidence of those
in society who do not resemble the people they see in
advertisements.

Comprehending the text

1

Advertising often challenges views about males and

females. Do you think this statement is true or false?
Explain your answer.

Define the term stereotype.

Explain why stereotyping presents a false view of most

people.

Find three examples in the text of gender stereotyping

and explain the link between advertising and these
stereotypes.

How does advertising reinforce existing gender

stereotypes?

Outline two problems that arise from the way males and
females are often portrayed in advertising.

Copy the following list into your notebook. Study

television advertisements over a three-day period. Every
time you see a woman or girl in an advertisement decide
which words below describe the image of the female
presented. Record each impression by putting a tick
next to the appropriate word. Add other words that you
think might be appropriate. Which descriptions occur
most frequently?
intelligent

attractive

sexy

well organised

adventurous

independent

stupid

nurturing

responsible

Collect a selection of advertisements from magazines

popular with young people. Each advertisement should
show one or more males and/or females. Working in
groups, complete these tasks:
a

Identify the product being advertised.

b Describe how the female(s) or male(s) are pictured in

the ad.
c

Evaluate whether this is a positive or negative image

of females or males.

d Decide how the advertisement is trying to influence

the reader.
e
4

What do you think of such ads?

Perform this role-play task in groups. Present one or

more well-known television commercials with the male
characters played by females and vice versa. Discuss
how each original advertisement portrays males and
females.

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6.2 Targeting consumers

Getting technical
focus group a group of potential consumers, chosen
at random, who give their opinions about a campaign
developed to promote a particular good or service.
market research The gathering of information about the
needs and desires of potential consumers.
mass marketing Promotional campaigns targeting a large
proportion of the population.
niche marketing Promotional campaigns targeting quite
small groups of potential customers.
self-regulation Ethical standards and complaint resolution
procedures put in place and maintained by an industry
group.
target market A specific demographic or social group to
which an advertiser wishes to appeal.

For a companys products to be successfully promoted,

the company must know who it is selling to; that is, who
is going to buy and use its products. Companies use
different types of promotions to target specific groups
of consumers. For example, childrens television
viewing times will feature advertisements for products
that appeal to young children and adolescents, such
as toys and snack food. Having been made aware of
the products, children will often try to persuade their
parents to buy the products.

Target markets
As you can see from the examples given, most product
promotions will be targeted so that they appeal to
specific age and social groups; for example, middleaged men, the affluent, professional women and the
aged. Each specific group is called a target market.
A mass marketing approach recognises that some
products (for example, food and household items)
are used by a large proportion of the population. This
kind of marketing is usually informative and aimed at a
wide variety of people in the community, not specific
groups. Niche marketing, on the other hand, targets
quite small groups of potential consumers. The aim
here is to sell a particular product in a relatively small
or exclusive market. Such products include luxury
cars, ski equipment and adventure holidays. The
price of these products is rarely an issue; the image
promoted and reinforced by the advertisement is more
important.

Teenagers may also be targeted by advertisements

featuring personalities popular with young people.
This approach is often used to sell products such
as clothing, music and fast food, which are largely
bought by this age group. These promotions often
take place in the media popular with teenagers; for
example, fashion and recreational magazines (such
as Dolly, Girlfriend, TV Hits, Barbie and Surfing World)
and television programs (such as Rage, Video Hits,
The Simpsons, Friends, Seinfeld and Home and Away).
Products directed towards adult consumers are often
advertised during television programs that are popular
with adults, as well as in newspapers and magazines
read by adults. Publications such as Womans Day, New
Idea, Womens Weekly and Cosmopolitan are popular
with women. Wheels Magazine, The Bulletin and Time
are examples of magazines popular with men.

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Figure 6.2a An example of an advertisment designed for the mass

market.

Processes used to identify target markets

The processes involved in gathering information about
a potential market are complex and may include market
research, surveys and focus groups.
Companies usually undertake market research to
gather information about the needs and desires of
potential consumers. This information is then used to
develop promotional campaigns that reach and engage
the targeted market.
Surveys can be done in person or via the telephone.
The researcher will normally ask a number of questions
that identify the demographic and/or social group
the person belongs to, and then asks the person to
respond to questions about the product or service
being promoted.
A focus group is a group of potential consumers,
chosen at random, who are brought together and
asked to respond to a campaign developed to promote
a particular good or service. Advertising agencies use
focus groups to ensure the campaigns they develop
appeal to the target market. They can also be used to
check whether there is a demand for the actual good or
services being sold.

Legal and ethical issues associated

with product promotion strategies
Many people criticise advertising because it can
have such a strong effect on peoples lives. They are
concerned by how much advertising we are exposed
to every dayon television, radio and the Internet;
in cinemas, newspapers and magazines; and on
billboards and buses. These people believe that
advertisements brainwash us to buy things we dont
really need. Often this type of promotion uses sex to
sell or is deliberately aimed at groups in society who
may be easy targets; for example, children.
Because of such criticisms it is not surprising that
product promotion strategies are subject to legal
regulation and control. This can involve the banning
of promotions for certain products. For example,
cigarettes cannot be advertised at all, and television
channels are only permitted to use a certain amount
of air time for product commercials. Governments
have also encouraged the advertising industry to
monitor the behaviour of advertisers to ensure they
behave responsibly in terms of the amount and
kind of advertising shown. This checking is called
self-regulation and is carried out by the Australian
Association of National Advertisers. Another organisation involved in industry self-regulation is the Advertising
Standards Bureau (ASB), which is the industry-based
body that handles consumer complaints and disputes
between advertisers. It considers complaints about
any form of 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 the ASB considers an advertisement to be inappropriate for any of these reasons, the company will
generally agree to withdraw or change the ad. If
the company does not, it risks being reported to
government or media bodies, which may impose
penalties on the company.

Figure 6.2b Billabong is easily recognised by its target market:

young people. (included with the permission of Billabong)

Complaints can also come directly from individuals

or groups who are offended by an advertisement.
There have been a number of instances where large
companies have been forced to withdraw promotional
material following a negative, or adverse, public
response.

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Unethical promotional strategies

Although deliberately misleading advertising is illegal
there are a number of ways that consumers can
be influenced unfairly. They can, for example, be
persuaded to buy goods and services that they neither
need nor can afford. The following are examples of
unethical promotional strategies:
bait and switch advertisingThis involves advertising a product for sale when there is little or no
stock on hand. The customer is then persuaded to
buy a more expensive product.
sale price manipulationSometimes goods may
be marked with a sale price that is, in fact, higher
than the regular price. Customers are tricked into
thinking they are getting a bargain.
special prizes or offersThis method involves
receiving a phone call or letter notifying you that you
have won a special prize. Before you can collect the
prize, you have to purchase another product.
high-pressure door-to-door sellingThe products
offered may be acceptable but the selling method
is forceful. Consumers are pressured into signing
an agreement to buy on the spot or to commit
themselves to home trials.
(See Chapter 1, pages 2022 for more information
about unethical promotions.)

Figure 6.2c Advertising in magazines is usually aimed at specific

target markets.

Warning: advertising can harm your bank balance

To people around her Katie seemed to have it all: youth,
beauty and a good job. She was always well dressed in the
latest fashions and had a great social life, including eating
and drinking out five or six times a week at the trendiest
restaurants and bars. What Katies friends and colleagues
didnt know was that she was also anxious and miserable as
she had a stack of overdue bills and several credit cards that
had run out of credit due to her love of spending money
often on things she didnt need or want.
In desperation, Katie asked for help from Creditline
Financial Counselling Services, a community-based group
that receives at least six calls a day from young women
who have been trapped by the cycle of overspending
and mounting debt and dont know what to do about it.
Another group, Debtors Anonymous, also has plenty of
clients needing financial counselling and strategies to help
curb overspending. Overspending can become as much
of an addiction as drugs or alcohol, and the causes of the
addiction need treatment just like other disorders.

part of the in crowd, you have to spend a lot of money on

clothes, make-up and the high life. To make matters worse,
part of their message is that you have to have these things
now; its not cool to save upcredit cards are a much easier
option.
Fortunately, Katies story has a happy ending. With help,
she is now starting to look at her lifestyle and learn to
make some much needed changes in her spending habits.
Katie now appreciates that she has become a victim of
the advertising she is exposed to. With help, she has been
able to think about the messages that advertisements
communicate and decide for herself how best to spend her
money.

Counsellors say that young women are easy targets for

advertising campaigns pushing the message that to be

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Figure 6.2d Advertising can sometimes encourage people to spend

more than they can afford.

Comprehending the text

In groups, brainstorm a list of the brands popular with

teenagers. Select five of the brands identified. What
images are used to appeal to the targeted market?

Outline why companies undertake market research.

Explain the difference between mass marketing and

niche marketing.

Explain the processes that are used to gather information

about a potential market.

Product

Associated word/s

Coca-Cola

Safe

Define the term self-regulation in relation to

advertising.

Kmart

Australian

b Give one example of how the advertising industry

regulates itself.

Qantas

Value for money

Outline the different types of unethical promotional

strategies.

Vegemite

Luxurious

BMW

Fun-loving

Info.com.tech
Advertising Standards Bureau

b Imagine you are introducing a new product for

teenagers. Write down at least five words that you
would want associated with this product.
4

Access the website of the Advertising Standards Bureau

<www.advertisingstandardsbureau.com.au> and complete
the activities below.

b What type of person is not in the advertisement?

Why do you think this is?

Which type of media attracts the most consumer

complaints about advertising?

the result of the complaint.

Report your findings to the class or a small group.

Activities
Use magazines to find examples of advertisements that
target:
a

Who would this advertisement not appeal to?

Is this advertisement an example of mass marketing

or niche marketing?

Study the box Warning: Advertising can harm your bank

balance. In groups, discuss the following questions:
a

a description of the advertisement

b the nature of the complaint made against the

advertisement

What is happening in the advertisement?

d Who would this advertisement appeal to?

Which two categories of product attract the most

complaints?

Select Outcome of complaints. Look at the list of

complaints dismissed. Choose one that you know or are
interested in. Read the complaint and make the following
notes about it:
a

What type of image is used in this advertisement?

(Consider age, gender, race and appearance, for
example.) Why do you think this type of imagery is
used?

Select Facts and figures.

b Which three issues attract the most complaints?

Study Figure 6.2b (page 143) and then answer the

following questions:
a

Activities

Copy the product names listed below. For each

product, select the word/s that you associate with
the product and write this next to the product name.

What do you think is an ideal lifestyle for young

adults? What sort of lifestyle do you see yourself
having when you leave school?

b How much is marketing responsible for overspending

and how much is it the persons own fault?
c

Should the government put restrictions on

advertisers to stop forms of marketing that may
encourage people to overspend?

d What steps could Katie take to ensure she doesnt

get into financial trouble again?
e

Where would you go for advice on money matters?

teenage boys

b teenage girls
c

affluent people

d home-owners
e

active people who like the outdoors.

Describe the main types of imagery used in each group

of advertisements.

Promoting and selling

145

6.3 Applying selling techniques

In order to sell its product, a company will first develop
selling strategies and then put them into practice.
To determine whether these strategies have been
successful, it will then be necessary to monitor and
evaluate their outcomes; that is, the sales achieved.

Developing and implementing

selling techniques
As you have learnt, the first step in developing and
implementing a selling technique is to identify the
target market for the product. Once the target market
is established, the company will use a variety of
techniques (see below) to introduce its product to the
market and to encourage consumers to buy it. Look
back in this chapter to refresh your memory about
these techniques:
brand name, logo and packagingThe design,
colour and images associated with the product are
intended to appeal to the target market.
advertisingDecisions will be made about what
forms of advertising will be used; for example,
billboards, magazine and television advertisements,
letterbox drops and the use of celebrity faces.
special promotionsThese include items on
special; special promotions of new products; giveaways in stores or elsewhere; and add-ons or other
deals
personal sellingPart of the selling campaign might
involve personal phone, email or in-person contact.
publicityThe product may be promoted by gaining
free publicity.

The position of specific items in a store is also very

importantif the item is put at the checkout, at the end
of an aisle or at eye level, people are more likely to buy
it. Often this purchase is made on impulse (that is, on
the spur of the moment) or in preference to another
brand that may be more difficult to find. Companies
pay shops a lot more to have their goods displayed in
these key areas.

Info.com.tech
Sales strategy for a new product
Activity
Your group is the sales team for an Australian company that
has just developed a new product. You wish to target the
teenage market.
a

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.

b 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 excellent, for
example.
c

Present your product and sales strategy to the class.

Monitoring and evaluating selling

techniques

As well as these promotional strategies, other factors

form part of the selling techniques used by companies.
In relation to goods sold in shops, the shop layout and
furnishing will affect how well the goods sell. If the
layout is roomy, attractive and well lit, sales will be
higher than if it is difficult to move around the shop and
locate items. For example, the lighting used for fruit
and vegetables is often soft and warm to display the
colour of the goods in the best possible way.

Companies keep detailed records to track (monitor)

the volume and value of sales on a weekly, monthly,
quarterly, six-monthly and an annual basis. This data
can be analysed in a number of ways. For example,
personal logins by sales staff on computerised cash
registers can be used to track the sales performance
of individual staff. Under-performing staff can be given
extra training or dismissed if their performance does
not improve.

Music is another factor used in stores to create an

atmosphere that encourages shoppers to buy. Clothes
shops for young people will play the sort of music that
will appeal to this target audience whereas bookshops
playing classical music appeal to quite a different
audience.

Sales of a good or service during special in-store

promotions can be calculated to determine the
effectiveness of the strategies adopted. Sales can
also be analysed before, during and after media-based
advertising campaigns to determine whether the
promotion is making a difference to sales. Comparing
sales of a product (or products) to previous years is also

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useful, especially if new long-term marketing strategies

have been adopted. If the marketing campaign has
been successful, sales should have gone up.
Sales can also be compared on a store-by-store basis
or on the basis of which groups of people (markets)
are purchasing the product. Advertising resources can
be reallocated or increased to boost sales in specific
stores or markets. For example, a product might have
been targeted at both young boys and girls, but mostly
boys are buying the product. The advertiser needs to
find out why the product isnt appealing as much to
girls and come up with a marketing strategy that will
increase sales to girls; that is, marketing that will better
target girls.
Consumer surveys and focus groups can also be used
to gather information about brand recognition; in other
words, how well people know a particular brand. The
Nike swoosh is a good example of successful brand
recognition. An effective promotion should boost brand
recognition within the targeted market. Surveys and
focus groups can also be used to gather information
about the effectiveness of different selling techniques.
For example, a producer may reconsider using
telemarketing to sell its goods if there is consumer
resistance to this kind of selling.

Activities
1 In groups, make a detailed study of how a particular
brand of mobile phone is sold and report your findings to
the class. You should:
a

Analyse the appeal of the name, logo and packaging.

b Identify the target audience it is appealing to.

c

Compile a summary of the kind of advertising used

for this product; for example, radio, television,
magazines, newspapers, billboards, cinemas and use
of personalities.

d Comment on the nature of the advertising. For

example: Is price used to promote the product? Who
is it designed to appeal to?
e

Comment on the amount of advertising and its timing

(that is, when it occurs).

Describe the special offers associated with the sale

of the product.

2 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.
3 Having worked through this chapter, analyse some of
the techniques used by McDonalds to sell its fast food.
Think about:
a

brand identification

b advertising

Comprehending the text

1 Outline the first step in the selling process.
2 Explain the link between the name, logo and packaging
of a product and the sales of that product.
3 List five important selling techniques.
4 Explain the connection between music and lighting in
stores and the sales of a product.
5 Explain why companies are prepared to pay more to
have their goods displayed at the checkout of shops.
6 Define the term impulse buying.
7 Explain why companies keep records of sales of their
products.
8 Give one reason why companies would want to analyse
these sales figures.
9 Explain the connection between in-store promotion of a
product and poor sales figures for that product.
10 Explain the link between a new sales strategy and
higher-than-usual sales.
11 Give two purposes of a focus group or survey.

special promotions

d personal selling.
4 Funburger is a standard product available from a chain
of fast food outlets. On three occasions in 2004 there
were special promotions involving a give-away with
every Funburger purchased. Study the table below,
which shows special monthly promotions. Analyse
the sales figures and comment on the effectiveness of
the promotion. Answer true or false for each of the
following statements:
a

The two-for-one promotion was the most successful.

b You would recommend the free soft drink promotion

next year.
c

The free toy offer should not be repeated next year.

d The two-for-one offer should be extended to two

months.
Free with each
Funburger

Sales
2004

Sales
2003

Increase
(%)

Free soft drink offer

$554 378

$498 076

11.3

Two-for-one offer

$605 987

$465 009

30.3

Free toy offer

$366 221

$381 335

3.7

Promoting and selling

147

6.4 Current issues in promoting

and selling products
Getting technical
hidden advertising A form of advertising that we may not
be conscious or aware of.
spam Messages, including advertising, received via the
Internet and which the user has not requested.

In addition to questions of industry regulation, selfregulation and ethics, there are a number of other
issues relating to the promotion and selling of products
that consumers should be aware of.

Right to privacy
Generally in Australian society, providing their
behaviour is lawful, people expect to enjoy a right to
privacy; that is, to be protected from interference or
intrusion from others in their day-to-day activities.
In product promotion and sales, issues of privacy
have largely been limited to direct selling. However,
new technologiesparticularly the Internet and the
mobile phonehave resulted in a greater level of
intrusion. People often receive messages containing
advertisements and other material via the Internet
whether they want to or not and they have little
protection against this form of product promotion.

Spam
Spam is a message sent via the Internet to huge numbers
of people at once, electronically and automatically.
These messages are unsolicited, meaning they are
sent without the receivers permission. Most spam is
commercial advertising, often for poor-quality products
or get-rich-quick schemes. Spam costs the sender
very little to sendmost of the costs are paid for by
the receiver or the Internet service provider. As most
people do not wish to receive such material, spam is an
example of invasion of personal privacy made possible
by new technology.

Telemarketing
Telemarketing has become increasingly unpopular with
consumers in recent years, as the practice has become
more common. New technologies have made it possible

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for computers to place the phone calls, dramatically

increasing the calls received by many people. It is seen
by some as an invasion of their privacy, an unwanted
interference and an annoyance.
In response, many telemarketing laws have emerged in
the last decade. Several US states, for example, now
require companies to obtain lists of people who prefer
not to receive telemarketing calls, and make it illegal
for marketers to call anyone whose name appears on
the do-not-call lists. Some Australian states are also
placing limits or specific requirements on calls, such
as prohibiting the use of automatic calling devices
or requiring that clear disclosures be made at the
beginning of a telemarketing call.

A new style of direct marketing

The use of new technologies by advertisers has blurred
the lines that traditionally separated various types
of marketing; that is, product promotion, including
advertising. In the past, advertising was one-way
communication through a mass medium; for example,
television, radio, newspapers and magazines. Today,
it is taking on characteristics of direct marketing,
enabling two-way communication between buyer
and seller. This presents the risk that 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
Advertising professionals are sometimes accused of
using hidden advertising; that is, hiding images and
messages within advertisements. Some believe that
these images and messages have the potential to be
absorbed subconsciously and affect our behaviour
even though we arent aware we have seen them.

Tobacco and alcohol advertising

Tobacco and alcohol advertising is heavily regulated.
Both products can cause death or injury, and both are
subject to attack by interest groups opposed to these
products. All forms of tobacco advertising are now
banned in Australia, with the notable exception of the
Australian Formula 1 Grand Prix.

Medical experts, and other groups opposed to tobacco

and alcohol advertising, argue that the promotion of
these products causes consumption to increase and
that the harmful impacts of these goods can be reduced
by banning or severely restricting their promotion.
Others argue that there is no real evidence that the
product promotions influence consumption and that it
is the product, not the advertising, that is the danger
and so it is the product that should be regulated.

A note of caution

Comprehending the text

1

Define the terms right to privacy and spam.

Outline the connection between spam and loss of

privacy.

Apart from spam, list two examples of new technology

threatening our right to privacy.

Explain how hidden advertising works.

Explain what is meant by the term buyer beware and why

this is a good behaviour to adopt.

Buyer beware
Our rights are protected by laws and industry watchdog
bodies. However, if you need help from government or other
bodies it may take a lot of time and effort to organise. Worse
still, the seller may have disappeared, leaving you in the
right, but out of pocket. So be a wise consumer. Read the
small print, ask questions and get advice. Remember, if a
product or deal seems too good to be true, it probably is.

Finetune your consciousness

Activities
1

Look at the range of issues outlined in this section of

the text. Write a paragraph outlining the ways in which
recent developments in product promotion pose a threat
to our right to privacy.

Working in pairs, role-play the following encounters with

salespeople:
a

Try to be aware of the manipulation underlying most

advertising. Be on the lookout for sexist, racist or
discriminatory attitudes and try to spot the sales pitch of the
promotioneven if it doesnt seem like its a sales pitch.

A person appears at your door offering to

demonstrate a vacuum cleaner.

b 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.
c

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.

d You want to return the sale item to the shop you

bought it from as you saw it was $10 cheaper at
another shop.
3

In groups, discuss the following topic: Advertising

should be banned from childrens television
programs.

b Now hold a class debate on the topic.

Figure 6.4a Are you being brainwashed by advertising?

Promoting and selling

149

Chapter review
Activity 1: defining key terms
Write a paragraph defining these terms related to
promoting and selling products:
a marketing
b mass marketing

Down
1 The prominent display of products in movies and
television programs (two words)
5 A specific demographic or social group that an
advertiser wishes to appeal to (two words)
6 Personally addressed, businesslike letters
containing advertising material (two words)

c niche marketing
d target market.

Activity 2: matching

7 Brand strengthening via the funding of elite

sporting personalities and teams

The following table lists the factors that differentiate

similar products. The explanations in the second
column are not in the correct order. Copy the table
into your book, matching each factor with its correct
explanation.
Factor

Explanation

Service

Whether the product reflects the values

of a particular group

Convenience

Whether the product is recyclable and

whether minimal resources were used to
produce it

Value

Whether the product is easy to obtain

Social factors

Whether the product is economical and

well worth the price paid for it

Environmental factors Whether the product works well

Activity 3: crossword

1
2

4
5
6
7

10

11

Copy the crossword opposite and then complete it.

Across
2 The gathering of information about the needs and
desires of potential consumers (two words)
3 Promoting a good or service in order to increase
sales and profits or to inform the public
4 Promotional campaigns targeting quite small
groups of potential customers (two words)
7 Ethical standards and complaint resolution
procedures put in place and maintained by an
industry group (two words)
8 Promotion of goods and services via the telephone
9 Promotional campaigns targeting a large proportion
of the population (two words)
10 A type of marketing that is flexible and
unconventional
11 Advertising flyers delivered via the letterbox (two
words)

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Activity 4: notemaking
a Make notes on four unethical promotional
strategies.
b Make notes on four current issues in promoting
products.

Activity 5: research
Select one of the issues listed in this chapter.
Undertake library or Internet research to find answers
to the following questions:
a What are the mains concerns relating to this issue?
b How are these concerns being addressed?
Prepare a short oral report outlining your findings.