Download 18-4 Marketing: Real People, Real Decisions Public Relations

Marketing: Real People, Real Decisions
Sales Promotion, Public Relations, and
Personal Selling
Chapter 18
Lecture Slides
Solomon, Stuart,
Carson, & Smith
Your name here
Course title/number
Date
Marketing: Real People, Real Decisions
Chapter Learning Objectives
When you have completed your study of this chapter,
you should be able to:
• Explain the role of public relations.
• Describe the steps in developing a
public relations campaign.
• Explain what sales promotion is and
describe some of the different types of
trade and consumer sales promotion
activities.
• List the steps in the personal selling
process.
• Explain the job of the sales manager.
• Explain the important role of personal
selling in the marketing effort.
©Copyright 2003 Pearson Education Canada Inc.
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Marketing: Real People, Real Decisions
Introduction to the Topic
• This is the last of three chapters on the topic of promotion, this one
covering public relations, sales promotion, and personal selling.
• While all of these are considered part
of an integrated marketing
communications program, they are
very different from one another, and
are used for different purposes.
• Remember that it is the consistency of
all elements in the strategy that counts.
• Promotion: the coordination of a
marketer’s communications efforts to
influence attitudes or behaviour
toward a product or service.
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Marketing: Real People, Real Decisions
Public Relations
• Public relations: communications strategies to build good
relationships and corporate image with an organization’s stakeholders,
including consumers, stockholders, and legislators.
• There are different types of
public relations activities:
– Publicity and media relations
– Corporate public relations
– Crisis management
– Employee relations
– Financial relations
– Public affairs
– Community relations
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Marketing: Real People, Real Decisions
Public Relations (continued)
• Public relations strategies are used in concert with advertising, sales
promotions, and personal selling to accomplish communication
objectives related to:
– Introducing new products
– Supporting current products
– Influencing government legislation
– Enhancing the image of the organization
– Calling attention to a firm’s involvement
with the community
– Demonstrating social responsibility
– Developing positive employee or investor
relations
– Handling communication issues and
crises
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Marketing: Real People, Real Decisions
Tools of Public Relations
• Publicity: unpaid communication about an organization appearing in
the mass media.
• Press release: information that an
organization distributes to the media about
its activities, intended to appear as publicity.
– Timely topics
– Research stories
– Consumer information releases
• Interactive tools: maintaining web sites,
conducting special events such as open
houses, trade shows & exhibits, speeches,
news conferences, and volunteering.
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Marketing: Real People, Real Decisions
Tools of Public Relations (continued)
• Proactive tools include: newsletters, press releases, disaster planning,
issues management, lobbying, brochures and pamphlets.
• Responsive tools include: annual
reports, letters to customers, bulletin
boards, suggestion boxes, surveys, and
environmental scanning.
• Indirect & associative tools
include: social and cause advertising,
public service announcements,
celebrity endorsement, product
placement, fundraising, sponsorship,
and advertorials.
• How do we measure the effectiveness
of all of these tools?
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Marketing: Real People, Real Decisions
Measuring Public Relations
Table 18.1
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Marketing: Real People, Real Decisions
Sales Promotion
• Sales promotion: a program designed to build interest in or
encourage purchase of a product during a specified time period.
The key difference from advertising is in its time frame, sales
promotion is intended to produce short-term results, particularly
those that are measurable.
• Sales promotions may come in
several varieties:
– Trade promotions
– Consumer promotions
– Loyalty programs
• Merchandise allowance:
a promotion that reimburses the
retailer for in-store support of
the product.
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Marketing: Real People, Real Decisions
Tools of Sales Promotion
• Case allowance: a discount to the retailer or wholesaler based on
the volume of product ordered.
• Trade shows: events at which many companies set up exhibits to
show their products, give away samples, distribute product literature,
and troll for new business contacts.
• Promotional products: specialty
items imprinted with corporate logos.
• Push money: a bonus paid by a
manufacturer to a salesperson for selling
its product.
• Rebates: sales promotions that allow
the customer to recover part of the
products cost from the manufacturer.
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Marketing: Real People, Real Decisions
Tools of Sales Promotions (continued)
• Price-based consumer promotions include: coupons, price
deals, refunds, rebates, and special packs.
• Premium: an item included without charge with a purchased
product.
• Sampling: distributing trial-size
versions of a product for free to
encourage people to try it.
• Point-of-purchase (POP)
promotion: the use of signs or displays
to influence purchases at the store.
• These types of promotions are ideally
suited to the way most consumers shop,
which is mostly unplanned purchases.
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Marketing: Real People, Real Decisions
Tools of Sales Promotions (continued)
• Loyalty programs are used as part of a firm’s customer retention
efforts, as they reward continued purchasing. The rewards given can
be discounts, free product or services, or redeemed for gifts from a
catalogue.
• These programs started as frequent flier
programs, but have since spread to many
other industries such as hotels, and grocery
stores.
• Cross-promotion: two or more
companies combining forces and using a
single promotional tool to create interest in
their products or services.
• These can be very effective, particularly
when aimed at younger consumers!
• Fast food restaurants use these in conjunction
with the entertainment industry.
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Marketing: Real People, Real Decisions
Sales Promotion Techniques
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Marketing: Real People, Real Decisions
Personal Selling
• Personal selling: the part of the promotion mix that involves
direct contact between a company representative and a customer.
• The main differences between advertising and
personal selling are:
– Direct contact with the buyer
– Two way communication
– Flexible message content
– Immediate feedback as to results
• The value of this method of promotion lies in the
personal contact with the buyer, which provides
the potential opportunity to develop a
relationship. The drawback is the high cost per
contact.
• Personal selling is used primarily in push
strategies.
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Marketing: Real People, Real Decisions
Types of Personal Selling
• Telemarketing: the use of the telephone or fax to sell directly to
consumers and business customers.
• Order taker: a salesperson whose primary
function is to facilitate transactions that the
customer initiates.
• Technical specialist: sales support personnel
with a high level of technical expertise who assist
in product demonstrations.
• Missionary salesperson: a salesperson who
promotes the firm and tries to stimulate demand for
a product but does not actually complete a sale.
• Order getter: a salesperson who works
creatively to develop relationships with customers
or to generate new sales.
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Marketing: Real People, Real Decisions
Approaches to Personal Selling
• Transactional selling: a form of personal selling that focuses
on making an immediate sale with little or no attempt to develop a
relationship with the customer.
• This type of selling is mostly associated with
the hard sell, an approach favoured by less
than reputable companies in the past. It does
not encourage repeat buying, which makes its
use quite limited in today’s markets.
• Relationship selling: a form of personal
selling in which the salesperson seeks to
develop a mutually satisfying relationship
with the consumer so they can work together
to satisfy each other’s needs.
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Marketing: Real People, Real Decisions
The Selling Process
Prospecting & Qualifying
• Creative selling process: the
Preapproach
process of seeking out customers,
analyzing their needs, determining
how product attributes might provide
benefits for them, and then
communicating that information.
• Prospecting: a part of the selling
process that includes identifying and
developing a list of potential or
prospective customers.
Approach
Sales Presentation
Handling Objections
• Qualify prospects:a part of the
selling process that determines how
likely prospects are to become
customers.
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Closing the Sale
Follow-Up
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Marketing: Real People, Real Decisions
The Selling Process
Prospecting & Qualifying
• Preapproach: a part if the selling
Preapproach
process that includes developing
information about prospective
customers and planning the sales
interview.
• Approach: the first step of the actual
sales presentation in which the
salesperson tries to learn more about the
customer’s needs, create a good
impression, and build rapport.
Approach
Sales Presentation
Handling Objections
• Sales presentation: the part of the
selling process in which the salesperson
seeks to persuasively communicate the
product’s features and the benefits it
will provide after the sale.
©Copyright 2003 Pearson Education Canada Inc.
Closing the Sale
Follow-Up
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Marketing: Real People, Real Decisions
The Selling Process
Prospecting & Qualifying
• Sales closing: the stage of the
Preapproach
selling process in which the
salesperson asks the customer to buy
the product.
• One of the most difficult parts of the
selling process to teach because it is
largely a matter of having the courage to
face the risk of being rejected.
• Sales follow-up: after-sales
Approach
Sales Presentation
Handling Objections
activities that provide important services
to customers.
• Following up is important to making
sure a sale stays closed, and for repeat
business or referrals.
©Copyright 2003 Pearson Education Canada Inc.
Closing the Sale
Follow-Up
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Marketing: Real People, Real Decisions
Sales Management
• Sales management: the process of planning, implementing,
and controlling the personal selling function of an organization.
• Sales management involves:
– Setting objectives
– Creating a sales force strategy including
organization, and compensation program
– Recruiting, selecting, training and
motivating a sales force
– Evaluating and controlling the sales
function.
• Sales territory: a set of customers often
defined by geographic boundaries, for whom
a particular salesperson is responsible.
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Marketing: Real People, Real Decisions
Famous Last Words…
• Public relations, sales
promotion, and personal
selling can be very effective
tools in an integrated
marketing communications
program.
• The key is to have
consistency between these
elements and the other
forms of promotion.
• If the messages are
consistent, then leverage
can be gained.
©Copyright 2003 Pearson Education Canada Inc.
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