Promotion Mix/

Marketing
Communication
Mix
 Objectives
Know the tools of the marketing
communications mix.(Promotion Mix)
Learn the steps in developing effective
marketing communications.
Understand methods for setting
promotional budgets and the factors that
affect the design of the promotion mix.
Advertising Decisions.
Sales promotion tool.
Public Relations Tools.
Personal Selling
15 - 2
 Case Study
Akai TVs
Airtel and Hutch (Now Vodafone)
Fevicol
Bingo
Haldirams
What type promotion mix these
companies has used to promote
their products?
15 - 3
 Definition
Marketing Communications Mix ( Promotion
Mix)
A companys total marketing
communication program is called
as Promotion Mix
Promotion Mix Consists of specific
mix of advertising, personal selling,
sales promotion, and public
relations tools that the company
uses to pursue its advertising and
marketing objectives.
15 - 4
 Integrated Marketing
Communications (IMC)
Integrated Marketing
Communications
The concept under which a company
carefully integrates and coordinates
its many communications channels
to deliver a clear, consistent, and
compelling message about the
organization and its products.
IMC implementation often requires
the hiring of a MarCom manager.

15 - 5
 The Communication
Process
Communications efforts should be
viewed from the perspective of
managing customer relationships over
time.
The communication process begins with
an audit of all potential contacts.
Effective communication requires
knowledge of how communication works.

15 - 6
 The
The Communication
Communication Process
Process
Noise
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EncodingNoise Noise
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Feedback
Feedback Encoding
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Receiver Noise Noise
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Receiver
Noise Noise
Noise
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Noise Noise
Noise Noise
Noise Noise
Noise
 Steps in Developing Effective
Communications
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives

Step 3. Designing a Message

Step 4. Choosing Media
Step 5. Selecting the Message Source

Step 6: Collecting Feedback

17-8
Steps
Steps in
in Developing
Developing Effective
Effective
Communication
Communication

Step
Step 1.
1. Identifying
Identifying the
the Target
Target Audience
Audience

Step
Step 2.
2. Determining
Determining the
the Communication
Communication Objectives
Objectives
Buyer
Buyer Readiness
Readiness Stages
Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Purchase
Developing Effective
Communication
Step 1: Identifying the Target Audience
Affects decisions related to what, how,
when, and where message will be said,
as well as who will say it
Step 2: Determining Communication
Objectives
Six buyer readiness stages

15 - 10
 Step 3: Designing a Message
AIDA framework guides message design
Message content contains appeals or themes
designed to produce desired results these are :
Rational Appeals: Audiences self interest.

Economy (Price), Quality, Value, Features

and Benefits of the products
Emotional Appeals: attempts to stir up
either positive or negative emotions to that
can motivate purchase.
Love, pride, joy, humor, fear, guilt, shame E.g.
Crack creame.
Moral Appeals: are directed to audiences
sense of what is Right and Proper . E.g.
For some social cause: clean envt. Etc .

15 - 11
LOProfit
3
Product saves, makes, or protects money

Health
Advertising Appeals
Appeals to body-conscious or health seekers

Love or romance Used in selling cosmetics and perfumes

Fear Social embarrassment, old age, losing health

Admiration Reason for use of celebrity spokespeople

Convenience Used for fast foods and microwave foods

Fun and pleasure Key to advertising vacations, beer, parks

Vanity and egotism Used for expensive or conspicuous items

Environmental
Centers around environmental protection
Consciousness

12
 Steps
Steps in
in Developing
Developing Effective
Effective
Communication
Communication

Step
Step 3.
3. Designing
Designing aa Message
Message

Message Content
Rational Appeals
Emotional Appeals Message Structure
Moral Appeals Draw Conclusions
Argument Type Message Format
Argument Order Headline, Copy, Color,
Words, & Sounds,
Body Language

Attention
Attention Interest
Interest Desire
Desire Action
Action
Developing Effective
Communication
Step 3: Designing a Message
Message Structure: Key decisions are required
with respect to three message structure
issues:
Whether or not to draw a conclusion
One-sided vs. two-sided argument
Order of argument presentation
Message Format: Design, layout, copy, color,
shape, movement, words, sounds, voice, body
language, dress, etc.
15 - 14
Developing Effective
Communication
Step 4: Choosing Media
Personal communication channels
Includes face-to-face, phone, mail, and
Internet chat communications
Word-of-mouth influence is often critical
Buzz marketing cultivates opinion leaders

Nonpersonal communication channels

Includes media, atmosphere, and events

15 - 15
Developing Effective
Communication
Step 5: Selecting the Message Source
Highly credible sources are more persuasive
A poor spokesperson can tarnish a brand
Step 6: Collecting Feedback
Recognition, recall, and behavioral measures
are assessed
May suggest changes in product/promotion

15 - 16
 Budgeting Decisions
Budgeting decisions involve determining how much money
will be spent on advertising and promotion each year and how
the monies will be allocated

Two major decisions

Establishing the size of the
budget
Allocating the budget
 Characteristics of
Objectives
Good Objectives Should Include:

Concrete, Measurable Communication Tasks

Well-Defined Target Audience
Have an Existing Benchmark Measure
Specify Degree of Change Sought
Specific Time Period
Top-Down Budgeting
Top Management Sets the
Spending Limit

The Promotion Budget Is Set to Stay

Within the Spending Limit
 Top-Down
Approaches
The Affordable Method
What we have to spare. What's left to spend.

Arbitrary Allocation Method

No system. Seemed like a good idea at the time.

Percentage of Sales Method

Set percentage of sales or amount per unit.

Competitive Parity Method

Match competitor or industry average spending.

Return on Investment Method

Spending is treated as a capital investment.
Setting
Setting the
the Total
Total Promotion
Promotion Budget
Budget

Affordable Percentage-
Method of-Sales
Method

Competitive- Objective-
Parity and-Task
Method Method
 Setting the Total Promotional
Budget
Objective-and-Task Method
Specific objectives are defined
Tasks required to achieve
objectives are
determined
Costs of performing tasks are
estimated, then
summed to create the
promotional budget
15 - 22
 Response Hierarchy Models

17-23
 Setting the
Promotional Budget
and Mix
Setting the Overall Promotion
Mix
Determined by the nature of
each promotion tool and the
selected
promotion mix strategy

15 - 24
Setting the Promotional Budget and
Promotion Mix Reaches large,
Tools geographically dispersed
audiences, often with
Advertising high frequency
Low cost per exposure,
Personal Selling though overall costs are
high
Sales Promotion
Consumers perceive
Public Relations advertised goods as more
legitimate
Direct Marketing Dramatizes
company/brand
Builds brand image; may
stimulate short-term sales
Impersonal; one-way
communication

15 - 25
 Setting the Promotional Budget and
Mix
Most effective tool for
Promotion building buyers
Tools
Advertising
preferences,
convictions, and actions
Personal interaction
Personal allows for feedback and
adjustments
Selling Relationship-oriented

Sales Promotion Buyers are more

attentive
Public Relations Sales force represents a
long-term commitment
Direct Marketing
Most expensive of the
promotional tools

15 - 26
 Setting the Promotional Budget and
Mix
May be targeted at the
Promotion trade or ultimate
consumer
Tools
Advertising Makes use of a variety of
formats: premiums,
Personal Selling coupons, contests, etc.
Attracts attention, offers
strong purchase
Sales incentives, dramatizes
offers, boosts sagging
Promotion sales
Stimulates quick
Public Relations response
Short-lived
Direct Marketing
Not effective at building
long-term brand
preferences
15 - 27
Setting the Promotional Budget and
Mix
Promotion Highly credible
Many forms: news
Tools
Advertising stories, news
features, events and
Personal sponsorships, etc.
Selling Reaches many
prospects missed via
Sales other forms of
Promotion promotion
Dramatizes company
Public or benefits
Relations Often the most
underused element in
Direct the promotional mix
Marketing
15 - 28
Setting the Promotional Budget and
Mix
Many forms:
Promotion Telephone
Tools marketing, direct
Advertising mail, online
Personal Selling marketing, etc.
Four distinctive
Sales Promotion
characteristics:
Public Relations Nonpublic
Immediate
Direct Customized
Marketing Interactive
( If IMC is referred) Well-suited to highly
targeted marketing
efforts
15 - 29
 Setting the Promotional Budget and
Mix
Promotion Mix Strategies
Push strategy: trade promotions
and personal selling efforts push the
product through the distribution
channels.

Pull strategy: producers use

advertising and consumer sales
promotions to generate strong
consumer demand for products.

15 - 30
 Checklist: Integrating the Promotion
Mix
Analyze trends (internal and external)
Audit communications spending
Identify all points of contact
Team up in communications planning
Make all communication elements
compatible
Create performance measures
Appoint an IMC manager

15 - 31
 Socially Responsible
Communications
Advertising and Sales Promotion
Avoid false and deceptive
advertising

Trade promotions can not favor

certain customers over others

Use advertising to promote socially

responsible programs and actions
15 - 32
 Personal Selling
Salespeople must follow the rules of
fair competition
Three day cooling-off rule protects
ultimate consumers from high
pressure tactics
Business-to-business selling
Bribery, industrial espionage, and
making false and disparaging
statements about a competitor are
forbidden

15 - 33
Advertising
Decisions

15 - 34
Advertising
Decisions

15 - 35
 What is Advertising?
Any form of Nonpersonal presentation
and promotion of ideas, goods, or
services by an identified sponsor.
U.S. advertisers spend in excess of
$175 billion each year.
Advertising is used by:
Business firms,
Nonprofit organizations,
Professionals,
Social Agencies.
 Inverted Pyramid of Communications Effects

90% Awareness
Co

70% Knowledge
gn
i ti

40% Liking
ve

25% Preference
Af
fe
c ti

20% Trial
ve

5% Use
Co
na
t iv
e
 Advertising and Movement Toward
Action
Related behavioral Movement toward Types of promotions and
Dimensions purchase advertising at each step

Purchase Point of purchase

Conative Retail store ads, Deals
Realm of motives. Last-chance offers
Ads stimulate or direct Price appeals, Testimonials
Conviction
desires.

Preference
Affective
Competitive ads
Realm of emotions. Argumentative copy
Ads change attitudes and Liking
feelings Image copy
Status, glamour appeals
Knowledge
Cognitive
Realm of thoughts. Announcements
Descriptive copy
Ads provide information Classified ads
Awareness
and facts. Slogans, jingles, skywriting
Teaser campaigns
 Major Decisions in Advertising
Objectives
Objectives Setting
Setting

Budget
Budget Decisions
Decisions

Message
Message Decisions
Decisions Media
Media Decisions
Decisions

Campaign
Campaign Evaluation
Evaluation
 Setting Objectives
Advertising Objectives
Specific Communication Task
Accomplished with a Specific Target Audience
During a Specific Period of Time

Informative Advertising Persuasive

Informative Advertising Persuasive Advertising
Advertising
Build
BuildPrimary
PrimaryDemand
Demand Build
BuildSelective
SelectiveDemand
Demand

Comparison
Comparison Reminder
Reminder Advertising
Advertising
Advertising
Advertising Keeps
KeepsConsumers
ConsumersThinking
Thinking
Compares
ComparesOne
OneBrand
Brandto
to About
AboutaaProduct.
Product.
Another
Another
 The DAGMAR Approach
Recognition that communication
effects are the logical basis for
advertising goals and objectives
against which success or failure
Define should be measured.
Advertising
Goals for
Measuring
Advertising
Results
 The DAGMAR Approach
An advertising goal is a
communication task that is
specific and measurable.
The communication task has four
stages:
Awareness
Comprehension
Conviction
Action
Setting the Advertising Budget
Advertising Budget Methods
Affordable, Percentage of Sales, Competitive-Parity
and Objective-and-Task
Product
Product Stage
Stageininthe
theProduct
Product
Differentiation
Differentiation Life
LifeCycle
Cycle

Factors in
Advertising
Advertising Setting the Market
Market
Frequency
Frequency Advertising Share
Share
Budget

Competition
Competition
and
andClutter
Clutter
Top
TopTen
TenLeaders
Leadersby
byU.S.
U.S.
Advertising
AdvertisingSpending
Spending

LOI
44
 Advertising
Advertising Strategy
Strategy
Creating
Creating Advertising
Advertising Messages
Messages

Plan
Plan aa Message
Message Strategy
Strategy
General
General Message
MessagetotoBe
BeCommunicated
Communicatedto toCustomers
Customers

Develop
DevelopaaMessage
Message
Focus
Focuson
on
Customer
CustomerBenefits
Benefits Creative
CreativeConcept
Concept
Big
BigIdea
Idea
Visualization
Visualizationor
orPhrase
Phrase Advertising Appeals
Combination of Both
Advertising Appeals
Combination of Both Meaningful
Meaningful
Believable
Believable
Distinctive
Distinctive
 Message Execution
Turning the Big Idea Into an Actual Ad to Capture
the Target Markets Attention and Interest.

Testimonial
Testimonial Slice
Sliceof
ofLife
Life
Evidence
Evidence
Scientific
Scientific
Evidence Typical
Typical Lifestyle
Lifestyle
Evidence
Message
Message
Technical
Technical Execution
Execution Fantasy
Fantasy
Expertise
Expertise Styles
Styles
Personality
Personality Mood
Moodoror
Symbol
Symbol Image
Image

Musical
Musical
Selecting Advertising
Media
Step
Step 1.
1. Decide
Decide on
on Reach,
Reach, Frequency,
Frequency,
and
andImpact
Impact
Step
Step2.
2. Choosing
ChoosingAmong
AmongMajor
MajorMedia
Media Types
Types
Media
MediaHabits
Habitsof
ofTarget
TargetConsumers
Consumers
Nature
Natureof
ofthe
theProduct
Product
Type
Typeof
ofMessage
Message
Cost
Cost
Step
Step3.
3. Selecting
SelectingSpecific
Specific Media
MediaVehicles
Vehicles
Specific
SpecificMedia
MediaWithin
WithinaaGiven
GivenType,
Type,i.e.
i.e.Magazines.
Magazines.
Must
Must Balance Media Cost Against MediaFactors:
Balance Media Cost Against Media Factors:
Audience
AudienceQuality
Quality&&Attention,
Attention,Editorial
EditorialQuality
Quality

Step
Step4.
4. Deciding
Deciding on
on Media
MediaTiming
Timing
Scheduling
Schedulingof
ofAdvertising
AdvertisingOver
Overthe
theCourse
CourseofofaaYear
Year
Pattern of Ads: Continuity or Pulsing
Pattern of Ads: Continuity or Pulsing
 Media Selection
Considerations
Cost
Cost per
per The
The cost
cost of
of reaching
reaching one
one
Contact
Contact member
member of
of the
the target
target market.
market.

The
The number
number of of target
target consumers
consumers
Reach
Reach exposed
exposed to
to aa commercial
commercial at at least
least
once
once during
during aa time
time period.
period.
The
The number
number of of times
times an
an individual
individual is
is
Frequency
Frequency exposed
exposed to
to aa message
message during
during aa time
time
period.
period.

Audience
Audience The
The ability
ability of
of an
an advertising
advertising medium
medium
Selectivity
Selectivity to
to reach
reach aa precisely
precisely defined
defined market.
market.
48
Chap. 15
Alternative Media
Shopping
ShoppingCarts
Carts Floor
FloorAds
Ads
Computer
Computer
Screen
ScreenSavers
Savers Subway
SubwayTunnel
TunnelAds
Ads

DVDs
DVDs Video
VideoGame
GameAds
Ads

Interactive
InteractiveKiosks
Kiosks Cell
CellPhone
PhoneAds
Ads

Ads
Adsin
inMovies
Movies

Advertainments
Advertainments

49
 Advertising
Advertising Evaluation
Evaluation

Advertising
Advertising Program
Program Evaluation
Evaluation

Communication
Communication Effects
Effects Sales
Sales Effects
Effects
Is
Isthe
theAd
AdCommunicating
CommunicatingWell?
Well? Is
Isthe
theAd
AdIncreasing
IncreasingSales?
Sales?
Advertising Evaluation: It should evaluate both
the
1)Communication Effect: It includes Copy Testing-
tells weather the ad is communicating well. It can be
Pretesting (Direct Rating, Portfolio Test &
Laboratory Test) and Post Testing ( Recall Test and
recognition Test).
2)Measuring the Sales Effect: What sales are
caused by an ad that increases brand awareness by
20% and brand preference by 10%?. Difficult but can
know the sales effect by comparing past sales with past
ad Expenditure.

15 - 51
Ways
Ways to
to Handle
Handle Advertising
Advertising

Sales Advertising
AdvertisingDepartments
SalesDepartments
Departmentsin
in Departments
Small in
inLarger
Larger Companies
Small Companies
Companies Companies

Advertising
AdvertisingAgency
Agency
Firm
Firmthat
thatAssists
AssistsCompanies
Companies
in
inPlanning,
Planning,Preparing,
Preparing,
Implementing
Implementingandand
Evaluating Their
Evaluating Their
Advertising
Advertising
Programs.
Programs.
Major Types of Advertising

Designed
Designed to
to enhance
enhance aa companys
companys
Institutional
Institutional image
image rather
rather than
than promote
promote aa
Advertising
Advertising particular
particular product.
product.

Product
Product Designed
Designed to
to tout
tout the
the benefits
benefits of
of aa
Advertising
Advertising specific
specific good
good oror service.
service.

53
Chap. 15
 Major Types of Advertising
Enhance
Enhance
corporations
corporationsidentity
identity
Institutional
Institutional
Advertising
Advertising
Advocacy
Advocacy
advertising
advertising

Pioneering
Pioneering
Product
Product
Advertising Competitive
Competitive
Advertising
Comparative
Comparative
54
Chap. 15
 Product
Advertising
Stimulates primary demand for
Pioneering
Pioneering new product or category.
Used in the PLC introductory stage.

Influence demand for brand in the

Competitive
Competitive growth phase of the PLC.
Often uses emotional appeal.

Compares two or more competing

Comparative
Comparative brands product attributes.
Used if growth is sluggish, or if
55 competition is strong.
Chap. 15
International
International Advertising
Advertising Decisions
Decisions

Adaptation
Adaptation of
of
Global
Global Advertising
Advertising

Advertising
Advertising Media
Media Costs
Costs
&& Availability
Availability

Regulation
Regulation of
of
Advertising
Advertising Practices
Practices
 Setting Objectives Using the
Communications Effects Pyramid

Figure 4-5
Sales Promotion

15 - 58
 What
What is
is Sales
Sales Promotion?
Promotion?
Mass communication technique that offers
short-term incentives to encourage purchase or
sales of a goods or service.
1) Consumer Promotion, 2)Trade Promotion and
3)Sales force Promotion ( Three Target groups)
Rapid growth in the industry has been achieved
because:
Product managers are facing more pressure
to increase their current sales,
Companies face more competition,
Advertising efficiency has declined,
Consumers have become more deal oriented.
 Consumer - Promotion
Tools
Short-Term Incentives to Encourage Purchase
or Sales of a Product or Service.

Consumer- Consumer-
Promotion Promotion Tools
Objectives
Entice
EnticeConsumers
Consumersto
to Samples
Samples
Advertising
Advertising
Try
TryaaNew
NewProduct
Product Specialties
Specialties
Lure
LureCustomers
CustomersAwayAway Coupons
Coupons
From Competitors Products Patronage
Patronage
From Competitors Products Rewards
Rewards
Get
GetConsumers
Consumersto toLoad
LoadUp
Up Cash
CashRefunds
Refunds
on
onaaMature
MatureProduct
Product Contests
Contests
Hold
Hold&&Reward
Reward Loyal
Loyal Price
PricePacks
Packs Sweepstakes
Sweepstakes
Customers
Customers
Consumer
ConsumerRelationship
Relationship Premiums Games
Building Premiums Games
Building
Point-of-Purchase
Point-of-Purchase
Displays
Displays
 Trade
Trade -- Promotion
Promotion Tools
Tools
Short-Term Incentives That are Directed to
Retailers and Wholesalers.

Trade-Promotion Trade-Promotion
Objectives Tools
Persuade
PersuadeRetailers
Retailersor
or
Wholesalers to Carry a Brand Price-Offs
Price-Offs Premiums
Wholesalers to Carry a Brand Premiums
Give
GiveaaBrand
BrandShelf
ShelfSpace
Space Allowances
Allowances Patronage
Displays
Rewards
Promote
PromoteaaBrand
Brandin
in Buy-Back
Advertising Buy-Back Discounts
Advertising Guarantees
Guarantees Discounts
Push
PushaaBrand
BrandtotoConsumers
Consumers Push
PushMoney
Money
Free
FreeGoods
Goods
Specialty
Specialty
Contests Advertising
Advertising
Contests Items
Items
Business
Business -- Promotion
Promotion Tools
Tools
Short-Term Incentives That are Directed to
Industrial Customers.

Business- Business-Promotion
Promotion Tools
Objectives
Generate
GenerateBusiness
BusinessLeads
Leads Conventions
Conventions

Stimulate
StimulatePurchases
Purchases Trade
TradeShows
Shows

Reward
RewardCustomers
Customers Sales
SalesContests
Contests
Motivate
MotivateSalespeople
Salespeople
Sales-force Promotion :
Bonuses, Contest and Rallies.
Best salesman of the Year Award Trip to
Europe or US for best performers.

15 - 63
Developing
Developing the
the Sales
Sales Promotion
Promotion
Program
Program

Decide
Decideon
onthe
theSize
Sizeof
of the
theIncentive
Incentive

Set
Set Conditions
Conditions for
for Participation
Participation
Determine
DetermineHow
How to
toPromote
Promoteand
and
Distribute
Distributethe
thePromotion
Promotion Program
Program

Determine
Determinethe
theLength
Length of
of the
theProgram
Program

Evaluate
Evaluate the
the Program
Program
 Public
Relations

15 - 65
 What is Public
Relations?
Building good relations with the companys
various publics by obtaining favorable
publicity, building up a good corporate image
and handling or heading off unfavorable
rumors, stories and events.
Major functions are:
Press Relations
Product Publicity
Public Affairs
Lobbying
Investor Relations
Development
 PUBLIC RELATIONS
Definition
Public Relations in the management
function which evaluates public attitudes,
identifies the policies and procedures of an
individual or an organization to with the
public Definition cont.
interest, and executes a program of action to
earn public understanding and acceptance.
American Association of Advertising
Agencies
Companys Various Publics

Financial Publics: Banks, Investment houses..

Government Publics: Govt. Laws.
Media Publics: Newspapers, Magazines ..
Citizen-action Publics: Envt. Groups etc.
Local Publics: Neighborhood,
Community organizations.
General Publics: Public Image of co.
Internal Publics: employees and others.

15 - 68
 Public Relations
The
The Role
Role of
of
Public
Public Relations
Relations

Executes
Executesprograms
programs
Evaluates
Evaluatespublic
public to
togain
gainpublic
public
attitudes
attitudes acceptance
acceptance
Identifies
Identifies issues
issuesof
of
public
publicconcern
concern

69
Chap. 15
 5 Functions of Public
Relations
Press
Press Relations
Relations
Product
Product Publicity
Publicity
Corporate
Corporate Communication
Communication
Public
Public Affairs
Affairs
Lobbying
Lobbying
Employee
Employee and
and Investor
Investor Relations
Relations
Crisis
Crisis Management
Management
70
Chap. 15
Major
Major Public
Public Relations
Relations Tools
Tools

Web
WebSite
Site
Public
Public
Service
Service News
News
Activities
Activities

Corporate
Corporate
Identity
Identity
Materials
Materials Speeches
Speeches

Audiovisual
Audiovisual Special
Special
Materials
Materials Events
Events
Written
Written
Materials
Materials
Click
Click to
Major
Major to add
add title
Public
Public Relations
Relations Decisions
title Decisions

Setting
SettingPublic
PublicRelations
RelationsObjectives
Objectives

Choosing
Choosingthe
thePublic
Public Relations
Relations Messages
Messages
and
andVehicles
Vehicles

Implementing
Implementing the
thePublic
PublicRelations
Relations Plan
Plan

Evaluating
Evaluating Public
PublicRelations
RelationsResults
Results
 Marketing Debate
What is the biggest obstacle to
marketing communications program?
Take a position:
1. The biggest obstacle to effective promotion
mix is a lack of agency coordination
across communication units.
1. 2. The biggest obstacle to effective promotion
mix is a lack of understanding as to how to
optimally design and evaluate such
programs.
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 Marketing Discussion
Pick a Brand and go to the Web site.
Locate as many forms of
communication as you can find.
Conduct an informal communications
audit. What do you notice? How
consistent are the different
communications?

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Personal Selling

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 The Nature of Personal Selling
Most salespeople are well-educated,
well-trained professionals who work
to build and maintain long-term
customer relationships.
The term salesperson covers a wide
range of positions:
Order taker: Department store clerk
Order getter: Creative selling in
different environments
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 The Role of the Sales
Force
Personal selling is a paid, personal form of
promotion.
Involves two-way personal communication
between salespeople and individual
customers.
Salespeople:
Probe customers to learn about problems
Adjust marketing offers to fit special needs
Negotiate terms of sales
Build long-term personal relationships
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 The Role of the Sales
Force
Sales Force serves as critical link between
company and its customers

They represent the company to the customers

They represent the customers to the company

Goal =
Customer Satisfaction and Company Profit
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 Major Steps in Sales Force
Management
Figure
13.1

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 Step 1: Sales Force
Structure
Territorial: Salesperson assigned to
exclusive area and sells full line of
products

Product: Sales force sells only certain

product lines

Customer: Sales force organizes along

customer or industry lines

Complex: Combination of several types of

structures
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 Inside Sales Force
Conduct business from their
offices via telephone or visits
from perspective buyers.
Includes:
Technical support people
Sales assistants
Telemarketers
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 Step 2: Recruiting and Selecting
Salespeople

Key talents of salespeople:

Intrinsic motivation
Disciplined work style
Ability to close a sale
Ability to build relationships with
customers

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 Recruiting
Salespeople
Recommendation Web searches
s from current University and
sales force
college students
Employment Recruit from other
agencies companies
Classified ads

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 Step3: Sales Force Training Goals

Learn about and identify with the

company.

Learn about the companys products.

Learn customers and competitors

characteristics.

Learn how to make effective

presentations.
Learn field procedures and
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responsibilities.
 Step4 : Compensating
Salespeople
Fixed amount:
Salary
Variable amount:
Commissions or bonuses
Expenses:
Repays for job-related expenditures
Fringe benefits:
Vacations, sick leave, pension, etc.
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 Step 5: Supervising
Salespeople
Directing Salespeople
Help them identify customers and
set call norms.
Specify time to be spent
prospecting
Annual call plan
Time-and-duty analysis
Sales force automation systems

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How Salespeople Spend Their
Time
 Supervising
Salespeople
Motivating Salespeople
Organizational climate
Sales quotas
Positive incentives:
Sales meetings
Sales contests
Recognition and honors
Cash awards, trips, profit sharing
Sales Force Incentives
Many companies offer cash, trips,
or merchandise as incentives.
Marriott suggests that companies
reward outstanding sales
performers by letting them
spread their wings and
reenergize at fabulous Marriott
resorts worldwide.

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Steps in Effective
Selling

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 Major Steps in Effective Selling

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The Personal Selling Process
Prospecting
The salesperson identifies qualified
potential customers
Pre-approach
The salesperson learns as much as possible about a
prospective customer before making a sales call

Approach
The salesperson meets the customer for
the first time
Presentation
The salesperson tells the product story
to the buyer, highlighting customer
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The Personal Selling Process
Handling Objections
The salesperson seeks out, clarifies, and
overcomes customer objections to buying

Closing
The salesperson asks the customer for an
order

Follow-up
The salesperson follows up after the sale
to ensure customer satisfaction and repeat
business
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Ambush Marketing

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 What is Ambush
Marketing?
Generally defined as:
marketing and promotional
activities that:
seek an association with a
sponsored event
without the authorization or consent
of the organizer of the event or
sponsor, and
without paying the requisite fee
 ambush marketing?
Goal:
to misappropriate or capitalize on the goodwill
and popularity of the sponsored event
intentionally confuse the public into thinking that
the ambush marketer is the official sponsor of the
event
to
deflect some attention away from the
competing sponsors
to reduce the effectiveness of their
communication while also undermining the value
and the quality of the sponsorship opportunity
that was sold
 Ambush Marketing?
The result:
consumers may be confused as to who is
the official sponsor of the event
ambush marketing may impact negatively
on sponsorship rights
Therefore:
sponsors seek some guarantee from the
organizer of the event that offenders will be
pursued (in the sponsorship agreement)
 Forms ambush
marketing
Simultaneous promotions (for example:
sample/free product distribution at
sponsored event, billboard advertising
or flying blimp with advertisers mark
over venue)
Purchase of sub-category rights (for
example: broadcast rights purchased
from a TV network from marketers who
are not official sponsors of the event for
the duration of the sponsored event)
 Laws: How did it
work?
No Olympic Pizza or Cake on
sale in Turin
No fly zone over sports venues
Bar Olympic (pub in central
location) had to cover the logo
Same obligation for a sports
apparel and equipment shop
Special Teams
 How did it work?
Despite huge efforts some teams run afoul

Logo on the helmet, duly covered

 Direct
Marketing
 Direct Marketing
Direct marketing consists of
direct connections with carefully
targeted individual consumers to
both obtain an immediate
response and cultivate lasting
customer relationships.

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 The New Direct-Marketing Model

Some firms use direct marketing as

a supplemental medium.
For many companies, direct
marketing constitutes a new and
complete model for doing business.
Some firms employ the direct model
as their only approach.
Some see this as the new marketing
model of the next millennium.
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Benefits of Direct Marketing
Benefits to Buyers:
Convenient
Easy to use
Private
Ready access to products
and information
Immediate and interactive
 Benefits of Direct Marketing
Benefits to Sellers:
Powerful tool for building customer
relationships
Can target small groups or
individuals
Can tailor offers to individual needs
Can be timed to reach prospects at
just the right moment
Gives access to buyers they could
not reach through other channels
Offers a low-cost, efficient way to
reach markets
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 Customer Databases
An organized collection of comprehensive
data about individual customers or
prospects, including geographic,
demographic, psychographic, and behavioral
data.
Databases can be used to identify prospects,
tailor products, and maintain customer
relationships
Database marketing requires substantial
investment in hardware, software, personnel

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 Forms of Direct
Marketing

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 Direct-Mail Marketing
Involves sending an offer,
announcement, reminder, or other
item to a person at a particular
address.
Accounts for a high proportion of
direct-marketing sales.
Permits high target-market selectivity.
Personal and flexible.
Easy to measure results.
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 Catalog Marketing
With the Internet, more and
more catalogs going electronic.
Print catalogs still the primary
medium.
Harder to attract new customers
with Internet catalogs.

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 Direct-Response TV Marketing

Direct-Response Advertising

Infomercials

Home Shopping Channels

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 Integrated Direct-Marketing

The use of carefully coordinated multiple-

media, multiple-stage campaigns.

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Public Policy and Ethical Issues in
Direct Marketing

Irritation to Consumers

Taking unfair advantage of impulsive or

less sophisticated buyers

Targeting TV-addicted shoppers

Deception, Fraud

Invasion of Privacy
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Direct Marketing

End

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