Principles of Marketing

Promotion: Overview and

Personal Selling
Promotion Mix
Personal Selling
Advertising
Publicity
Sales Promotion
Elements in the Communication
Process (Fig. 14.2)
Promotion Strategy
Strategic Objectives
Appropriate Tasks
Budget
Implementation
Evaluation and Control
Strategic Issues
Integration
Relationships
Goals: Information, Persuasion,
Reminder
Consumer Considerations: AIETA
Model

Target
 Integrated Marketing
Communications (Fig. 14.1)

Advertising Personal selling

Sales promotion
Public relations

Direct marketing
A View of the Communications
Process
Marketers View Communications as the
Management of the Customer Relationship Over
Time Through the Following Stages:

Preselling
Preselling Selling
Selling

Post-
Post- Consuming
Consumption
Consumption Consuming
AIETA
The Adoption Process

Product Life Cycle

AIETA and the Promotion Mix: The right
tool for the job.
Awareness Interest Evaluation Trial Adoption
Advertising Advertising Advertising Advertising Advertising
-teaser campaigns -information ads -persuasion ads -retailer co-op ads -reminder ads
-pioneering ads -image ads -image ads -POP materials
-jingles/slogans -testimonials -sales promotion ads
-outdoor -comparative ads
-internet banners

Publicity Publicity Publicity

-newsworthy “stunts” -news coverage -consumer welfare
-news announcements -human interest stories reports
-trade announcements

Personal Selling Personal Selling Personal Selling Personal Selling Personal Selling
-mentions -benefits (prepared or -consultative selling -closed deal -consultative selling
-samples formula approaches)
-brochures, etc.

Sales Promotion Sales Promotion Sales Promotion Sales Promotion

-demonstrations -trade discounts -samples -patronage rewards
-displays -trade allowances -coupons -contests
-tie-ins -rebates
-price packs
-premiums
Promotion Targets—Push/Pull
Promotion Mix Strategies
Strategy
Selected
Strategy that Depends Strategy that
Calls for on: Calls for Using
Spending A Lot
Type of the Salesforce
on Advertising
Product- and Trade
and Consumer
Market & Promotion to
Promotion to
Push the
Build Up (Pull) Product Product Through
Consumer Life-Cycle the Channels.
Demand. Stage
Setting the Total Promotion
Budget
One of the Hardest Marketing Decisions Facing a
Company is How Much to Spend on Promotion.

Affordable Percentage
Percentage of
of Sales
Sales
Based on What the Based
Basedon
onaaCertain
CertainPercentage
Percentage
Company Can Afford of
ofCurrent
Currentor
orForecasted
ForecastedSales
Sales

Objective-and-Task
Objective-and-Task Competitive-Parity
Competitive-Parity
Based
BasedononDetermining
Determining Based
Basedon
onthe
theCompetitor’s
Competitor’s
Objectives
Objectives&&Tasks,
Tasks,Then
Then Promotion
PromotionBudget
Budget
Estimating
EstimatingCosts
Costs
Objective and Task Method
Example of Objective and
Task Budgeting
Sales Management and
Personal Selling
Strategic objectives:
Awareness—mentions, samples, etc.
Interest—benefit information, missionary
Evaluation—consultative selling
Trial—consultative selling (closing)
Adoption—consultative selling
The Role of the Sales Force

Personal selling is effective because

salespeople can:
„ probe
„ adjust
„ negotiate
„ build
Major Steps in Sales Force
Management (Fig. 16.1)
Designing
Designing Salesforce
Salesforce Strategy
Strategy and
and Structure
Structure

Recruiting
Recruiting and
and Selecting
Selecting Salespeople
Salespeople

Training
Training Salespeople
Salespeople

Compensating
Compensating Salespeople
Salespeople

Supervising
Supervising Salespeople
Salespeople

Evaluating
Evaluating Salespeople
Salespeople
Some Traits of Good
Salespeople
 Selecting Salespeople
Sales
SalesAptitude
Aptitude

Selection
Process
Analytical
Analyticaland
and
Other
OtherCharacteristics
Characteristics Usually Organizational
OrganizationalSkills
Skills
Evaluates
a Person’s

Personality
PersonalityTraits
Traits
Sales Force Organization
In-house Agents (“Mfr. Reps”)
Flexible Simple
Directed Low fixed costs
Low variable costs
Resource drain Less control
High fixed costs High variable costs
Designing Sales Force Strategy and
Structure
Sales Force Size
productive and expensive assets

shrinking in size

workload approach
Sales force size
Increases with

Decreases with
Training Salespeople
The Average Sales Training Program lasts for Four Months and
Has the Following Goals:
Help Salespeople Know & Identify
With the Company

Learn About the Products

Learn About Competitors’

and Customers’ Characteristics
Learn How to Make
Effective Presentations
Understand Field Procedures
and Responsibilities
Compensating Salespeople

To
To Attract
Attract Salespeople,
Salespeople, aa Company
Company Must
Must Have
Have an
an
Attractive
Attractive Plan
Plan Made
Made UpUp of
of Several
Several Elements
Elements

Fixed
Fixed Variable
Variable Expense
Expense
Amount
Amount Amount
Amount Allowance
Allowance
Usually
Usuallyaa Usually
Usually For
For Job
Job
Salary
Salary Commissions
Commissions Related
Related
Or
Or Bonuses
Bonuses Expenses
Expenses
 Supervising Salespeople
Directing
Directing Salespeople
Salespeople Motivating Salespeople
Motivating Salespeople
•• Identify
IdentifyCustomer
CustomerTargets
Targets&& •• Organizational
OrganizationalClimate
Climate
Call
CallNorms
Norms
•• Sales
SalesQuotas
Quotas
•• Develop
DevelopProspect
ProspectTarget
Target
•• Positive
PositiveIncentives
Incentives
•• Use
UseSales
SalesTime
TimeEfficiently
Efficiently
¾¾ SalesMeetings
Sales Meetings
¾¾ Annual
AnnualCall
CallPlan
Plan
¾¾ SalesContests
Sales Contests
¾¾ Time-and-Duty
Time-and-DutyAnalysis
Analysis
¾¾ Honorsand
Honors andTrips
Trips
¾¾ Sales
SalesForce
ForceAutomation
Automation
¾¾ Merchandise/Cash
Merchandise/ Cash
How Salespeople Spend Their
Time (Fig. 16.2)

Administrative
Service Calls Tasks
12.7% 16% Companies Look
For Ways to
Telephone
Selling Increase the
Face-to-Face
25.1% Amount of Time
Selling Salespeople
28.8%
Waiting/
Spend Selling.
Traveling
17.4%
Evaluation
Match the measures with the objectives
Profit
Sales
Satisfaction
New products
New accounts
Costs
Steps in the Selling Process

Salesperson
Salesperson Identifies
Identifies Qualified
Qualified Potential
Potential
Prospecting
Prospecting Customers.
Customers.

Process
Process of
of Identifying
Identifying Good
Good Prospects
Prospects
Qualifying
Qualifying and
and Screening
Screening Out
Out Poor
Poor Ones.
Ones.
Salesperson
Salesperson Learns
Learns asas Much
Much as
as Possible
Possible
Preapproach
Preapproach About
About aa Prospective
Prospective Customer
Customer Before
Before
Making
Making aa Sales
Sales Call.
Call.

Salesperson
Salesperson Meets
Meets the
the Buyer
Buyer and
and Gets
Gets
Approach
Approach the
the Relationship
Relationship Off
Off to
to aa Good
Good Start.
Start.
Steps in the Selling Process

Salesperson
Salesperson Tells
Tells the
the Product
Product “Story”
“Story” toto
Presentation
Presentation the
the Buyer
Buyer Using
Using the
the Need-Satisfaction
Need-Satisfaction
Approach.
Approach.
Salesperson
Salesperson Seeks
Seeks Out,
Out, Clarifies,
Clarifies, and
and
Handling
Handling Overcomes
Overcomes Customer
Customer Objections
Objections toto
Objections
Objections Buying.
Buying.
Salesperson
Salesperson Asks
Asks the
the Customer
Customer for
for an
an
Closing
Closing Order.
Order.

Occurs
Occurs After
After the
the Sale
Sale and
and Ensures
Ensures
Follow-Up
Follow-Up Customer
Customer Satisfaction
Satisfaction and
and Repeat
Repeat
Business.
Business.
SPIN Selling
“Professional selling”
Preliminaries are not important
Questions/Answers
SPIN
„ Situation
„ Problems
„ Implications
„ Needs-Payoffs
SPIN selling “Easiflo”

S: Do you use Contortomat machines?

B: Yes, three of them.
S: And, are they difficult for your operators to use?
B: Yes, rather hard, but they eventually learn.
S: We could solve that operating difficulty with our
new Easiflo system.
B: What does your system cost?
S: The basic system is about $120,000, and…
B: $120,000!!! Just to make a machine easier to use?
You must be kidding!
Example: Selling “Easiflo”

S: Do you use Contortomat machines? (Situation)

B: Yes, three of them.
S: And, are they difficult for your operators to use?
(Problem)
B: Yes, rather hard, but they eventually learn.
(Implied need)
S: We could solve that operating difficulty with our
new Easiflo system. (Solution)
B: What does your system cost?
S: The basic system is about $120,000, and…
B: $120,000!!! Just to make a machine easier to use?
You must be kidding!
SPIN selling “Easiflo”

S: And, are they difficult for your operators to

use?
B: Yes, rather hard, but they eventually learn.
S: You say they’re hard to use. What effect does
this have on your output? (Implication)
B: Not much. We’ve specially trained three
people.
S: If you’ve only got three people who can use the
Contortomats, doesn’t that create bottlenecks?
(Implication)
B: No, really, it’s only when an operator leaves
that we have trouble. While we’re waiting for a
replacement to be trained.
S: It sounds like the difficulty of using the
Contortomat machines may be causing a turnover
problem with operators. Is that right? (Implication)
B: Yes, people don’t like using them, so operators
usually don’t stay with us long.
S: What does this turnover mean in terms of
training costs? (Implication)
Well, it takes a couple months to get proficient—
that’s maybe $4000 in wages. Plus we pay
Contortomat $500 for training. And, $1000 for
travel, since that training is off-site. Hey, that’s
about $5000 per—and we’ve trained at least five
this year.
S: So, that’s $25,000 in training costs in less than
6 months. If you’ve trained that many people in so
little time, the turnover must result in production
losses, doesn’t it? (Implication)
B: Not really. As I said, we avoid bottlenecks by
getting the other operators to work overtime. Or,
we send the work out.
S: Doesn’t the overtime add even more to your
costs? (Implication)
B: Yes, that’s true. And, even at double pay, the
operators don’t like working it. That probably
contributes to the turnover.
S: I can see how sending the work outside must
increase your costs, but are there other implications?
Does the quality stay the same? (Implication)
B: That’s actually the biggest problem. I can control
the quality in house, but not the contract stuff.
S: I suppose that sending work out puts you at the
mercy of the contractor’s schedule? (Implication)
B: You don’t want to know! I just got off the phone—
three hours, chasing down a late delivery.
S: So, from what you’ve said, because the
Contortomats are difficult to use, you’ve spent
$25,000 in training costs this year and you’re
getting expensive operator turnover. You’ve got
bottlenecks in production, and they result in
expensive overtime and force you to send jobs
outside. But sending jobs outside reduces quality
and creates scheduling problems.
B: When you look at it that way, those Contoromat
machines are creating a very serious problem
indeed.
Wrong approach
Contortomats are $120,000 is far too
hard to use. much money to
solve that problem
 SPIN approach
Contortomats cause: $120,000 may be
Difficulty in use a bargain
$25,000 training
Turnover
Overtime costs
Cost of outside work
Loss of quality
Scheduling problems
Build implications. “Let” the customer discover value.