Sales Method and ads - Case Study Example

Advertising Inserts His/Her Inserts Grade Inserts 19th March, Question In the process of engaging advertisers and other people it is important to ensure that costs used in marketing and advertising achieve the desired goals. Based on industry information producers set different rates for advertising and some base it on percentage of sales. Industries such as the automobile, furniture and jewellery companies spend a less percentage of sales on advertising. This is because these companies are well known for their products and they have loyal customers.

Moreover, the cost of production for these companies in some cases is quite high and this impedes the companies from spending a lot in advertising (Clow, 2013). As a result, we witness that major companies such as automobile BMW spend around 1% of sales on advertising. Based on data obtained from different sources, automobile companies should set their percentage sales budget at around 2 to 3 % and beverage companies at around 10%. While, a jewellery shop would set it at around 10% and other retailers at a level of between 3 and 8% for womens clothing store.

Question 2 Advertising in a magazine is determined by the reach and number of circulation for the magazine. In the case of AARP Magazine and Readers Digest we understand that these magazines have a high distribution levels. The AARP magazine has a target market meant for people aged 50 and above and while the readership of Reader’s Digest is in the region of 10 million per month. In the process of determining the cost of a full page 4-color advertisement per thousand we have to make certain considerations.

Some of the considerations include the readership and current trends in the media circle (OGuinn, 2011). For instance, old people prefer reading magazines and newspapers and thus they are quite slow in taking up technology. In the case of AARP and Reader’s Digest, we would have to compare the rates charged by top magazines such as Newsweek. Based on that assessment, these magazines should charge around $ 232, 000 for a full page Ad which amounts to a CPM of around $ 45. AARP is meant for the aged would be more cost effective for advertisers targeting this market (Clow, 2013).

Question 3 No. of visits per year = 3, 000 customers * 10 visits per cust. /per year = 30, 000 visitsTotal Sales visit = 30,000 visits * 2.5 hrs per visit for each customer = 75, 000 hours.Number of sales people = Total time spent on Customers, = 75,000 = 60 Time per customer 1,250We require at least 60 sales people to service and pay visits to the 3,000 customers based on the calculation above. Sale people are important in the process of advertising and marketing since they maintain a close contact with customers.

Sales people act as agents of communication on products and services that companies produce. However, the most significant duty that sales people have is building public relations with customers in the pursuit of building the image of the company, handling stories or rumours that could tarnish the image of the company (Stafford, 2009). Moreover, making use of sales people helps in getting feedback from customers and this is quite effective compared to advertising. ReferencesClow, K. & Baack, D. (2013). Integrated Advertising, Promotion, and Marketing Communications.

Chicago, IL: John Wiley and Sons.OGuinn, T., Allen, C. & Semenik, R. (2011). Advertising and Integrated Brand Promotion. Boston, MA: Pelshiver.Stafford, R. & Faber R. (2009). Advertising, Promotion, New Media. New York, NY: Raven Press.