Chapter 12 Ver 2e1 Chapter 12 ©2000 South-Western College Publishing Marketing Communication and...

Chapter 12 Ver 2e 1

Chapter 12Chapter 12

©2000 South-Western College Publishing

Marketing CommunicationMarketing Communicationand Personal Sellingand Personal Selling

Prepared byPrepared byDeborah BakerDeborah BakerTexas Christian UniversityTexas Christian University

Chapter 12 Ver 2e 2

1. Discuss the role of promotion in the marketing mix.

2. Discuss the elements of the promotional mix.

3. Describe the communication process.

4. Explain the goals and tasks of promotion.

(continued)

Chapter 12 ObjectivesChapter 12 Objectives


Chapter 12 Ver 2e 3

5. Discuss the AIDA concept and its relationship to the promotional mix.

6. Describe the factors that affect the promotional mix.

7. Describe personal selling.

8. Discuss the key differences betweenrelationship selling and traditional selling.

(continued)



Chapter 12 Ver 2e 4

9. List the steps in the selling process.

10. Describe the functions of sales management.



Chapter 12 Ver 2e 5

The Role of PromotionThe Role of Promotion


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

Chapter 12 Ver 2e 6

The Role of PromotionThe Role of Promotion


People no longer buy shoes to keep their feet warm and dry. People no longer buy shoes to keep their feet warm and dry. They buy them because of the way the shoes make them feel -- They buy them because of the way the shoes make them feel -- masculine, feminine, rugged, different, sophisticated, masculine, feminine, rugged, different, sophisticated, young, glamorous, “in.”young, glamorous, “in.”

Buying shoes has become an emotional experience. Buying shoes has become an emotional experience. Our business now is selling excitement rather than shoes.Our business now is selling excitement rather than shoes.

----Francis C. RooneyFrancis C. Rooney Chairman, H. H. Brown Shoe CoChairman, H. H. Brown Shoe Co..

Chapter 12 Ver 2e 7©South-Western College PublishingUnique FeaturesUnique Features

Excellent ServiceExcellent Service

Low PricesLow Prices

Rapid DeliveryRapid Delivery

High Product QualityHigh Product Quality

FeaturesFeaturesthat providethat provideDifferentialDifferentialAdvantageAdvantage

FeaturesFeaturesthat providethat provideDifferentialDifferentialAdvantageAdvantage

Differential AdvantageDifferential Advantage

Chapter 12 Ver 2e 8

The Promotional MixThe Promotional Mix


AdvertisingAdvertising

Elementsof the

PromotionalMix

Elementsof the

PromotionalMix

Public RelationsPublic Relations

Personal SellingPersonal Selling

Sales PromotionSales Promotion

Chapter 12 Ver 2e 9©2000 South-Western College Publishing

The Role of Promotion in Marketing MixThe Role of Promotion in Marketing Mix

Promotional MixPromotional Mix

•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan


•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan

Overall Marketing Overall Marketing ObjectivesObjectives

Overall Marketing Overall Marketing ObjectivesObjectives

Marketing MixMarketing Mix•ProductProduct•DistributionDistribution•PromotionPromotion•PricePrice

Marketing MixMarketing Mix•ProductProduct•DistributionDistribution•PromotionPromotion•PricePrice

Target MarketTarget MarketTarget MarketTarget Market



Traditional Selling

Traditional Selling

Relationship Selling

Relationship Selling


AdvertisingAdvertising

Traditional Advertising Media

Traditional Advertising Media

ElectronicAdvertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Computer modems Fax machines

Chapter 12 Ver 2e 12

Free SamplesFree Samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

SweepstakesSweepstakes

CouponsCoupons

Types ofTypes ofSales PromotionSales Promotion

Types ofTypes ofSales PromotionSales Promotion

Sales PromotionSales Promotion



Public RelationsPublic Relations

Evaluates public attitudes

Evaluates public attitudes

Identifies areas of interest

Identifies areas of interest

Executes programs to “win” public

Executes programs to “win” public

Functions ofFunctions ofPublic RelationsPublic Relations

Functions ofFunctions ofPublic RelationsPublic Relations


Marketing CommunicationMarketing Communication

Categories of CommunicationCategories of

Communication

InterpersonalInterpersonalCommunicationCommunicationInterpersonalInterpersonal

CommunicationCommunicationMassMass

CommunicationCommunicationMassMass

CommunicationCommunication


The Communication ProcessThe Communication Process

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

MessageChannel

MessageChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver


Characteristics of Promotional MixCharacteristics of Promotional Mix


Communication Mode Communication Mode

Communication ControlCommunication Control

Feedback AmountFeedback Amount

Feedback SpeedFeedback Speed

Message Flow DirectionMessage Flow Direction

Message Content ControlMessage Content Control

Sponsor IdentificationSponsor Identification

Reaching Large Audience Reaching Large Audience

Message FlexibilityMessage Flexibility

Personal SellingPersonal SellingPersonal SellingPersonal Selling

Direct and face-to-face Direct and face-to-face

HighHigh

MuchMuch

ImmediateImmediate

Two-wayTwo-way

YesYes

YesYes

Slow Slow

Tailored to prospectTailored to prospect













AdvertisingAdvertisingAdvertisingAdvertising

Indirect and non-personal Indirect and non-personal

LowLow

LittleLittle

DelayedDelayed

One-wayOne-way

YesYes

YesYes

Fast Fast

Same message to all audiencesSame message to all audiences













Sales PromotionSales PromotionSales PromotionSales Promotion

Usually Indirect and non-personal Usually Indirect and non-personal

Moderate to lowModerate to low

Little to moderateLittle to moderate

VariesVaries

Mostly one-wayMostly one-way

YesYes

YesYes

Fast Fast

Same message to varied targetSame message to varied target













Public RelationsPublic RelationsPublic RelationsPublic Relations

Usually indirect, non-personal Usually indirect, non-personal

Moderate to lowModerate to low

LittleLittle

DelayedDelayed

One-wayOne-way

NoNo

NoNo

Usually fast Usually fast

Usually no direct controlUsually no direct control


Integrated Marketing CommunicationsIntegrated Marketing Communications


Consistent, Consistent, Unified Unified

Message Message

Sales Sales PromotionPromotion

MediaMedia

Advertising

Advertising

Personal

Personal

Selling

SellingP

ub

lic P

ub

lic R

elation

sR

elation

s

Packag

ing

Packag

ingD

irect

Direct

Marketing

Marketing

Comm

uni-

Comm

uni-

catio

n

catio

n

CustomerCustomerFocusedFocused


Goals and Tasks of PromotionGoals and Tasks of Promotion


InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience




InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity



Informative Objective

• Increase awareness• Explain how product works• Suggest new uses• Build company image

Persuasion Objective

• Encourage brand switching• Change customers’ perception of product attributes• Influence buying decision• Persuade customers to call


Reminder Objective

• Remind customers that product may be needed• Remind customers where to buy product• Maintain customer awareness


Promotional Goals and the AIDA ConceptPromotional Goals and the AIDA Concept

AAttentionttention

IInterestnterest

DDesireesire

AActionction


AIDA and the Promotional MixAIDA and the Promotional Mix

AwarenessAwarenessAwarenessAwareness InterestInterestInterestInterest DesireDesireDesireDesire ActionActionActionAction

PersonalPersonalSellingSelling

Somewhateffective

Veryeffective

Veryeffective

Somewhateffective

Somewhateffective

AdvertisingAdvertising Veryeffective

Veryeffective

Somewhateffective

Noteffective

Noteffective

SalesSalesPromotionPromotion

Somewhateffective

Somewhateffective

Veryeffective

Veryeffective

Veryeffective

PublicPublicRelationsRelations

PublicPublicRelationsRelations

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Veryeffective

Noteffective

Noteffective


Nature of ProductNature of Product

Stage in PLCStage in PLC

Target Market FactorsTarget Market Factors

Type of Buying DecisionType of Buying Decision

Promotion FundsPromotion Funds

Push or Pull StrategyPush or Pull Strategy

Factors Factors AffectingAffectingChoice of Choice of


Factors Factors AffectingAffectingChoice of Choice of


Factors Affecting the Promotional MixFactors Affecting the Promotional Mix



PLC and the Promotional MixPLC and the Promotional Mix


Light Advertising,

pre-introduction

Publicity

Heavy use of advertising,

PR forawareness;

sales promotion

for trial

AD/PRdecreaseLimited Sales

Promotion, Personal Selling for

distribution

Ads decrease.Sales

Promotion,Personal Selling

Reminder & Persuasive

Advertising, PR, Brand

loyaltyPersonal Selling for

distribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sal

es (

$)S

ales

($)

TimeTime


Target Market Characteristics Target Market Characteristics

Widely-scattered markets

Highly-informed buyers

Brand-loyal repeat purchasers

Widely-scattered markets

Highly-informed buyers

Brand-loyal repeat purchasers

Advertising

Sales Promotion

Less Personal Selling


Type of Buying Decision Type of Buying Decision

Advertising

Sales PromotionType ofType of

Buying DecisionBuying Decisionaffectsaffects

Promotional Promotional Mix ChoiceMix Choice

Type ofType ofBuying DecisionBuying Decision

affectsaffectsPromotional Promotional Mix ChoiceMix Choice

ComplexComplexComplexComplex

RoutineRoutineRoutineRoutine

Personal Selling

Not RoutineNot Routineor Complexor Complex

Not RoutineNot Routineor Complexor Complex

Advertising

Public Relations


Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

Available Funds Available Funds


Push and Pull Strategies Push and Pull Strategies

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

Wholesaler Wholesaler promotes to promotes to

retailerretailer

Wholesaler Wholesaler promotes to promotes to

retailerretailer

Retailer Retailer promotes topromotes toconsumerconsumer

Retailer Retailer promotes topromotes toconsumerconsumer

ConsumerConsumerbuys frombuys from

retailerretailer

ConsumerConsumerbuys frombuys from

retailerretailer

PUSH STRATEGYPUSH STRATEGY

Orders to manufacturer

ManufacturerManufacturerpromotes to promotes to

consumerconsumer

ManufacturerManufacturerpromotes to promotes to

consumerconsumer

Consumer Consumer demands demands productproduct

from retailerfrom retailer

Consumer Consumer demands demands productproduct

from retailerfrom retailer

Retailer Retailer demands demands productproduct

from wholesalerfrom wholesaler

Retailer Retailer demands demands productproduct

from wholesalerfrom wholesaler

Wholesaler Wholesaler demandsdemands

product fromproduct frommanufacturermanufacturer

Wholesaler Wholesaler demandsdemands

product fromproduct frommanufacturermanufacturer

Orders to manufacturer

PULL STRATEGYPULL STRATEGY


Advantages of Personal SellingAdvantages of Personal Selling

Provides a detailed explanation or demonstration of product

Message can be varied to fit the needs of each prospective customer

Can be directed to specific qualified prospects

Costs can be controlled by adjusting sales force size

Most effective in obtaining sales and gaining satisfied customers

Chapter 12 Ver 2e 33©South-Western College Publishing


Customers are concentrated

Customers are concentrated

There are few customersThere are few customers

Product is technically complex

Product is technically complex

Product is custom madeProduct is custom made

Product has a high valueProduct has a high value

Personal Selling is more important if...

Customers are geographically dispersed

Customers are geographically dispersed

There are many customersThere are many customers

Product is simple to understand

Product is simple to understand

Product is standardizedProduct is standardized

Product has a low valueProduct has a low value

Advertising & sales promotion are more important if...


TraditionalTraditionalPersonal SellingPersonal Selling

TraditionalTraditionalPersonal SellingPersonal Selling

Sell products Sell products

Focus on closing salesFocus on closing sales

Limited sales planningLimited sales planning

Discuss productDiscuss product

Assess “Product-specific” needsAssess “Product-specific” needs

“Lone wolf” approach“Lone wolf” approach

Pricing/product focusPricing/product focus

Short-term sales follow-up Short-term sales follow-up

Relationship SellingRelationship SellingRelationship SellingRelationship Selling

Sell advice, assistance, counsel Sell advice, assistance, counsel

Focus on customer’s bottom lineFocus on customer’s bottom line

Sales planning is top prioritySales planning is top priority

Build problem-solving environmentBuild problem-solving environment

Conduct discovery in scope of operationsConduct discovery in scope of operations

Team approachTeam approach

Profit impact and strategic benefit focusProfit impact and strategic benefit focus

Long-term sales follow-up Long-term sales follow-up

Relationship SellingRelationship Selling


Steps in the Selling ProcessSteps in the Selling Process

Generate LeadsGenerate Leads

Qualify LeadsQualify Leads

Probe Customer NeedsProbe Customer Needs

Develop SolutionsDevelop Solutions

Handle ObjectionsHandle Objections

Close the SaleClose the Sale

Follow UpFollow Up

Basic StepsBasic Stepsin thein the

Personal SellingPersonal SellingProcessProcess

Basic StepsBasic Stepsin thein the

Personal SellingPersonal SellingProcessProcess



Generating LeadsGenerating Leads

Cold CallingCold CallingAdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/

Telemarketing

Trade Shows/Conventions

Trade Shows/ConventionsWeb SitesWeb Sites Client

ReferralsClient

ReferralsSales

NetworkingSales

Networking

Company Records

Company Records

Sources ofSources ofSales LeadsSales LeadsSources ofSources of

Sales LeadsSales Leads


Recognized NeedRecognized Need

Buying PowerBuying Power

Receptivity & Accessibility

Receptivity & Accessibility

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

Characteristics ofCharacteristics ofQualified LeadsQualified Leads


Qualifying LeadsQualifying Leads


Probing NeedsProbing Needs


Product or serviceProduct or service

Salesperson must knoweverything

about...

Salesperson must knoweverything

about...

Customers and their needsCustomers and their needs

CompetitionCompetition

IndustryIndustry

Chapter 12 Ver 2e 39©South-Western College Publishing

Sales ManagementSales Management

Evaluate sales forceEvaluate sales force

Compensate and motivatesales force

Compensate and motivatesales force

Recruit and trainsales force

Recruit and trainsales force

Determine sales force structure

Determine sales force structure

Define sales goals andsales process

Define sales goals andsales process

Tasks of Tasks of Sales ManagementSales Management

Tasks of Tasks of Sales ManagementSales Management


Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......

Are assertive Are assertive

Possess ego drivePossess ego drive

Possess ego strengthPossess ego strength

Take risksTake risks

Are innovativeAre innovative

Have a sense of urgencyHave a sense of urgency

Are empatheticAre empathetic

Leadership Traits of Sales LeadersLeadership Traits of Sales Leaders

Chapter 12 Ver 2e1 Chapter 12 ©2000 South-Western College Publishing Marketing Communication and...

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