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CHAPTER TWELVE
MARKETING
COMMUNICATION AND
PERSONAL SELLING
Prepared by Jack Gifford
Miami University (Ohio)
© 2001 South-Western College
Publishing
1
THE ROLE OF PROMOTION IN
THE MARKETING MIX

Promotion is communication by
marketers that informs,
persuades, and reminds
potential buyers of a product in
order to influence their opinions
or elicit a response
© 2001 South-Western College Publishing
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PROMOTIONAL STRATEGY

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Optimal use of the elements of
promotion
Consistent with the overall goals
of the marketing mix
A coordinated plan
An integral part of the marketing
strategy for reaching the target
market
© 2001 South-Western College Publishing
3
PROMOTION:
COMMUNICATION WITH A
PURPOSE

Promotion is
communication
used by
marketers to
inform, remind,
and/or persuade
potential buyers
through….

Advertising

Personal selling

Publicity

Public Relations
© 2001 South-Western College Publishing
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THE PROMOTIONAL MIX
Inform, persuade
remind
 Flexible
 Bi-directional
 Interpersonal
 Feedback
 Relationship
building


PERSONAL
SELLING
Person-toperson
dialogue
between buyer
and seller
 Purpose &
Advantages
 Disadvantages

Expensive
 Time consuming

© 2001 South-Western College Publishing
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THE PROMOTIONAL MIX

ADVERTISING
Non-personal
 Paid
 Identified sponsor
 Indirect
 Uniform message (some
ability to now customize in
interactive electronic
media)

Communicate to
large numbers of
people
 Low cost per contact
 Multiple media
options

© 2001 South-Western College Publishing
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THE PROMOTIONAL MIX

SALES
PROMOTIONS
Time specific
 Provide incentives
for purchase
behavior
 Not routine events
 Aimed at
customers,
salespeople, or
channel members







Coupons
Free goods with
purchase
Prizes or contests
Trips
Fashion shows
Channel member
displays or training
© 2001 South-Western College Publishing
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THE PROMOTIONAL MIX

PUBLICITY /
PUBLIC
RELATIONS
Unpaid
message
 Less control
over content
 Always
involves a third
party
 Higher level of
credibility

More factual than
persuasive
 Can be positive or
negative
 Frequently
orchestrated by the
marketer
 Systematically planned
and distributed to
media

© 2001 South-Western College Publishing
8
MARKETING
COMMUNICATIONS

Communication IS THE PROCESS
by which we exchange or share
meanings through a common set
of symbols.
 Interpersonal
communication: Direct
face-to-face communications between
two or more people
 Mass communications:
Communicating to a large audience,
usually through a mass medium
© 2001 South-Western College Publishing
9
THE COMMUNICATION
PROCESS
Source
Encoding
Feedback
Noise
Receiver
Decoding
© 2001 South-Western College Publishing
Message
Channel
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THE COMMUNICATION
PROCESS

ENCODING THE
MESSAGE










Words
Sounds
Colors
Space
Themes
Symbols
Pictures
Numbers
Gestures
Movement
© 2001 South-Western College Publishing
11
THE COMMUNCATION
PROCESS

ENCODING THE
MESSAGE




Channel or
Medium



DECODING



© 2001 South-Western College Publishing
Words
Sounds
Colors
Space
Themes
Symbols
Pictures
Numbers
Gestures
Movement
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THE COMMUNICATION
PROCESS

To determine the successful
matching of encoding to
decoding, marketers must
receive feedback from the
receiver in terms of action of a
measurable change in mental
state or attitude.
© 2001 South-Western College Publishing
13
THE COMMUNICATION
PROCESS
OBJECTIVE
ENCODING
=
DECODNG
© 2001 South-Western College Publishing
14
INTEGRATED MARKETING
COMMUNICATIONS (IMC)


Ideally, marketing communications from
each promotional mix element (personal
selling, advertising, sales promotions,
public relations) should be integrated.
The message reaching the target
consumer(s) should be the same
regardless of whether it is from an
advertisement, a salesperson in the
field, a magazine article, or a coupon in a
newspaper insert.
© 2001 South-Western College Publishing
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INTEGRATED MARKETING
COMMUNICATIONS (IMC)


Marketing managers must carefully work
out the roles the various promotional
elements will play in the marketing mix.
Timing of promotional activities are
coordinated and the results of each
campaign are carefully monitored to
improve future use of the promotional
mix tools.
Perfect
Promotional
Mix
© 2001 South-Western College Publishing
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THE GOALS AND TASKS OF
PROMOTION: INFORM

Inform
A
better mousetrap is of limited
value unless consumers know
that it exists, where it can be
purchased, the price, and
product details.
 Essential for the existence of a
free enterprise system
 Results in an improved
standard of living
© 2001 South-Western College Publishing
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THE GOALS AND TASKS OF
PROMOTION: INFORM

Inform (CONTINUED)
 Increase
brand awareness
 Explaining how a product
works
 Suggesting new uses for a
product
 Building a company image
© 2001 South-Western College Publishing
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THE GOALS AND TASKS OF
PROMOTION: PERSUADE

Promotion persuades
Persuasion that
encourages
purchases or
changes attitudes is
a primary goal of
promotion
 Influence customers
to buy now
 Persuading
customers to call

© 2001 South-Western College Publishing
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THE GOALS AND TASKS OF
PROMOTION: REMIND

Promotion Reminds
 Maintain
store or brand
loyalty
 Combat competitor’s
persuasive messages
 Increase product
awareness and usage
 Reminding customers
where to buy the
product
“You’re in good
hands with……”
“We’re ready
when you are.”
© 2001 South-Western College Publishing
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PROMOTIONAL GOALS AND
THE AIDA CONCEPT


Attention Interest
Desire Action
Steps
The AIDA concept
assumes that
promotion propels
consumers along
these steps in the
decision process.
ACTION
DESIRE
INTEREST
ATTENTION
© 2001 South-Western College Publishing
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FACTORS AFFECTING THE
PROMOTIONAL MIX

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Nature of the
product
Stage in the Product
Life Cycle
Target market
Characteristics
Type of buying
decision
Available funds
Push vs Pull strategies



© 2001 South-Western College Publishing
Business or
consumer
product?
Costs and
risks
associated
with
purchase?
Convenience,
shopping or
specialty
good?
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FACTORS AFFECTING THE
PROMOTIONAL MIX



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
Nature of the product

Stage in the
Product Life Cycle

Target market
Characteristics
Type of buying
decision
Available funds
Push vs Pull strategies


© 2001 South-Western College Publishing
Introduction =
informational
Growth &
maturity =
persuasive
and brand
Maturity =
reminder and
persuasive
Decline =
limited
promotion of
any kind
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FACTORS AFFECTING THE
PROMOTIONAL MIX



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Nature of the product
Stage in the Product
Life Cycle
Target market
Characteristics



Type of buying
decision
Available funds
Push vs Pull strategies
Level of product
knowledge
Degree of brand
loyalty
Geographical
dispersion
Commonality of
behavioral
characteristics
© 2001 South-Western College Publishing
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FACTORS AFFECTING THE
PROMOTIONAL MIX






Nature of the product
Stage in the Product
Life Cycle
Target market
Characteristics
Type of buying
decision



Available funds
Push vs Pull strategies
© 2001 South-Western College Publishing
Routine or
complex
buying
decision
Automatic rebuy or new
purchase task
Level of
personal or
professional
involvement
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FACTORS AFFECTING THE
PROMOTIONAL MIX




Nature of the product
Stage in the Product
Life Cycle
Target market
Characteristics
Type of buying
decision

Available funds

Push vs Pull strategies



© 2001 South-Western College Publishing
Promotional
budget may
dictate
possible
parameters
Optimize
return on
promotional
dollars
Minimize
costs per
contact dollar
generated
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FACTORS AFFECTING THE
PROMOTIONAL MIX






Nature of the product
Stage in the Product Life
Cycle
Target market
Characteristics
Type of buying decision
Available funds
Push vs Pull
strategies
© 2001 South-Western College Publishing
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PUSH AND PULL STRATEGIES

Promotion may
be aimed at the
final consumer
or a channel
member
•PULL Promote to final
consumer; encourage
them to ask their local
retailers to carry the
good
•PUSH Promote to
channel members to gain
distribution; promise
promotional support and
strong final consumer
demand
© 2001 South-Western College Publishing
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PERSONAL SELLING


Is direct communication between a sales
representative and one or more
prospective buyers in an attempt to
influence each other in a purchase
situation
Generally becomes more important




As the number of customers decreases
As the complexity of the product increases
As the value of the product grows
Relationship selling (consultative selling)
involves multi-stage selling and
personalization over the long-term
© 2001 South-Western College Publishing
29
STEPS IN THE SELLING
PROCESS




Also referred to as the sales process
or sales cycle
Is simply a set of steps a salesperson
goes through to sell a particular
product or service
Some of these steps are very quick,
while others take months. This is also
true of the entire sales cycle.
These steps are...
© 2001 South-Western College Publishing
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THE SALES CYCLE
 Generating leads
 Qualifying leads
 Approaching the
customer and probing
needs
 Developing and
proposing solutions
 Handling objections
 Closing the sale
 Following up
© 2001 South-Western College Publishing
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SALES MANAGEMENT
Defining sales goals and the
sales process
Determining the sales force
structure
Recruiting and training the sales
force
Motivating and compensating
the sales force
Evaluation of the sales force
© 2001 South-Western College Publishing
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