Marketing Communications & Personal Selling Integrated Marketing Communications Marketing Communications & Personal Selling 12 chapter Prepared by Deborah Baker Texas Christian University Revised Dr. R. Baur Agricultural Technical Institute Chapter 14 Version 6e

Discuss the role of promotion 404 Integrated Marketing Communications Learning Objective Discuss the role of promotion in the marketing mix. 1 Promotion Inform Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response and then reassures. Persuade Remind Reassure Chapter 14 Version 6e

1 Promotional Strategy Discuss the role of promotion 404 Integrated Marketing Communications Learning Objective Discuss the role of promotion in the marketing mix. 1 Promotional Strategy A plan for the optimal use of the elements of promotion: 1. Advertising 2. Public Relations 3. Personal Selling 4. Sales Promotion Chapter 14 Version 6e

Discuss the role of promotion Overall Marketing Objectives 404 Integrated Marketing Communications Learning Objective Discuss the role of promotion in the marketing mix. 1 Promotional Mix Advertising Public Relations Personal Selling Sales Promotion To convince target customers that the goods/services offer a DIFFERENTIAL ADVANTAGE over competitors Overall Marketing Objectives Marketing Mix Product Place Promotion Plan Price The Role of Promotion Target Market Chapter 14 Version 6e

1 Discuss the role of promotion in the marketing mix. 404 Integrated Marketing Communications Learning Objective Discuss the role of promotion in the marketing mix. 1 Create Awareness Making People Aware: IPOD Build Positive Images Mercedes Benz Identify Prospects Goals of Market Communications Fair Giveaways Build Channel Relationships Cooperative Advertising Retain Customers Frequent Flyer Programs Chapter 14 Version 6e

1 Features That Provide Differential Advantage 404 Integrated Marketing Communications Learning Objective Discuss the role of promotion in the marketing mix. 1 High Product Quality Cadillac Rapid Delivery Features That Provide Differential Advantage John Deere Overnight Parts Low Prices Walmart Everyday Low Prices Excellent Service “We will pick you up” Unique Features Hybrid Cars Chapter 14 Version 6e

2 Promotional Mix Personal Selling Advertising Public Relations 405 Integrated Marketing Communications Learning Objective Discuss the elements of the promotional mix. 2 Promotional Mix Personal Selling Advertising Public Relations Sales Promotion Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Chapter 14 Version 6e

2 1. Personal Selling Discuss the elements of the promotional mix. 405 Integrated Marketing Communications Learning Objective Discuss the elements of the promotional mix. 2 1. Personal Selling Two people communicate in order to influence each other Relationship Selling Traditional Selling Planned presentation to one or more prospective buyers to make a sale. Accomplishment of mutual objectives. CONSUMER PRD BUSINESS PRD CARS: QUICK SALE COMPUTERS: LONG REL WIN - LOSE WIN - WIN Chapter 14 Version 6e

Electronic Advertising Media 406 Integrated Marketing Communications Learning Objective Discuss the elements of the promotional mix. 2 Advertising Media Traditional Advertising Media Electronic Advertising Media Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards Internet Computer modems Fax machines Chapter 14 Version 6e

Ability to reach large number of people 406 Integrated Marketing Communications Learning Objective Discuss the elements of the promotional mix. 2 Advertising Advantages Disadvantages Ability to reach large number of people Total cost is high Cost per contact is low Can be micro-targeted Chapter 14 Version 6e

2 3. Public Relations Discuss the elements of the promotional mix. 406 Integrated Marketing Communications Learning Objective Discuss the elements of the promotional mix. 2 3. Public Relations The marketing function that evaluates public attitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance. Chapter 14 Version 6e

Executes programs to “win” public Evaluates public attitudes 407 Integrated Marketing Communications Learning Objective Discuss the elements of the promotional mix. 2 Functions of Public Relations Executes programs to “win” public Evaluates public attitudes Identifies areas of public interest Ecology Curbside Programs Recycling Publicity: Public information (good or bad ) about a company, good, or service appearing in the mass media as a unpaid news item. Chapter 14 Version 6e

2 4. Sales Promotion Discuss the elements of the promotional mix. 407 Integrated Marketing Communications Learning Objective Discuss the elements of the promotional mix. 2 4. Sales Promotion Marketing activities--other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. Sales Promotion Targets End Consumers Company Employees Trade Customers Chapter 14 Version 6e

2 Discuss the elements of the promotional mix. Learning Objective 407 Integrated Marketing Communications Learning Objective Discuss the elements of the promotional mix. 2 Popular Tools for Consumer Sales Promotion A. Free samples SOAP IN MAIL CHIPS IN STORE B. Contests “WHY YOU LIKE...” C. Premiums BEANIE BABIES D. Trade Shows HORT: CENT E. Vacation Giveaways F. Coupons Chapter 12 Version 3e OUT OF STORE IN STORE Chapter 14 Version 6e

Integrated Marketing Communications 408 Integrated Marketing Communications Learning Objective Discuss concept of integrated marketing communications. 3 Integrated Marketing Communications IMC A method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused. NEW MOVIE – NEW TOY AT McDonalds Chapter 14 Version 6e

Discuss concept of integrated marketing communications. 428 Integrated Marketing Communications Learning Objective Discuss concept of integrated marketing communications. 3 IMC Popularity Growth Proliferation of thousands of media choices Fragmentation of the mass market Slash of advertising spending in favor of promotional techniques Chapter 14 Version 6e

communication process. 409 Learning Objective Integrated Marketing Communications Describe the communication process. 4 Communication The process by which we exchange or share meanings through a common set of symbols. Interpersonal Communication Categories of Communication Mass Communication ONE TO FEW ONE TO MANY PERSON TO PERSON IMPERSONAL Chapter 14 Version 6e

The Communication Process 410 Integrated Marketing Communications Learning Objective Describe the communication process. 4 The Communication Process Sender Originator of the message in the communication process. Encoding Conversion of a sender’s ideas & thoughts into a message, usually words or signs. Message Transmission Passage of the message through a communication media Receiver Decoding Interpretation of language and symbols sent through the communication media Feedback Receiver response to the sender Chapter 12 Version 3e Chapter 14 Version 6e

The Communication Process 411 Integrated Marketing Communications Learning Objective Describe The Communication Process. 4 The Communication Process Noise Sender Idea Encoding Message Decoding Message Receiver Message Channel Chapter 14 Version 6e

Characteristics of Advertising 414 Integrated Marketing Communications Learning Objective Describe the communication process. 4 Characteristics of Advertising A. Advertising Communication Mode Indirect and non-personal Communication Control Low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Chapter 12 Version 3e Message Flexibility Same message to all audiences Chapter 14 Version 6e

Characteristics of Public Relations 414 Integrated Marketing Communications Learning Objective Describe the communication process. 4 Characteristics of Public Relations B. Public Relations Communication Mode Usually indirect, non-personal Communication Control Moderate to low Feedback Amount Little Feedback Speed Delayed Message Flow Direction One-way Message Content Control No Sponsor Identification No Reaching Large Audience Usually fast Chapter 12 Version 3e Message Flexibility Usually no direct control Chapter 14 Version 6e

Characteristics of Sales Promotion 414 Integrated Marketing Communications Learning Objective Describe the communication process. 4 Characteristics of Sales Promotion C. Sales Promotion Communication Mode Usually Indirect and non-personal Communication Control Moderate to low Feedback Amount Little to moderate Feedback Speed Varies Message Flow Direction Mostly one-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Fast Chapter 12 Version 3e Message Flexibility None: Same message Chapter 14 Version 6e

Characteristics of Personal Selling 414 Integrated Marketing Communications Learning Objective Describe the communication process. 4 Characteristics of Personal Selling D. Personal Selling Communication Mode Direct and face-to-face Communication Control High Feedback Amount Much Feedback Speed Immediate Message Flow Direction Two-way Message Content Control Yes Sponsor Identification Yes Reaching Large Audience Slow Chapter 12 Version 3e Message Flexibility Tailored to prospect Chapter 14 Version 6e

Goals and Tasks of Promotion 415 Integrated Marketing Communications Learning Objective Explain the goal & tasks of promotion. 5 Goals and Tasks of Promotion INFORMATIVE OBJECTIVE Increase awareness Explain how product works Suggest new uses Build company image CELL PHONES BACK OF PACKAGE RICE KRISPIE BARS WORLD’S LEADER IN ... Chapter 14 Version 6e

Goals and Tasks of Promotion 415 Integrated Marketing Communications Learning Objective Explain the goal & tasks of promotion. 5 Goals and Tasks of Promotion PERSUASION OBJECTIVE Encourage brand switching Change customers’ perception of product attributes Influence buying decision Persuade customers to call SWITCH PHONE CO HUYNDI CARS ??? “ON SALE UNTIL..” Chapter 14 Version 6e

Goals and Tasks of Promotion Learning Objective 416 Integrated Marketing Communications Explain the goal & tasks of promotion. 5 Goals and Tasks of Promotion REMINDER OBJECTIVE Remind customers that product/service may be needed Remind customers where to buy product Maintain customer awareness “NORTHERN OHIO BUICK DEALERS Chapter 14 Version 6e

Goals and Tasks of Promotion Integrated Marketing Communications Learning Objective Explain the goal & tasks of promotion. 5 Goals and Tasks of Promotion REASSURE OBJECTIVE Reduce Cognitive Dissonance HOUSES CARS BIG BOATS Chapter 14 Version 6e

Discuss the AIDA concept and its relationship to the promotional mix. 416 Discuss the AIDA concept and its relationship to the promotional mix. Integrated Marketing Communications Learning Objective 6 Attention Interest Desire Action The AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Chapter 14 Version 6e

Discuss the AIDA concept and its relationship to the promotional mix. 416 Discuss the AIDA concept and its relationship to the promotional mix. Integrated Marketing Communications Learning Objective 6 Action Desire THE AIDA CONCEPT THE AIDA CONCEPT Interest Attention Chapter 14 Version 6e

AIDA and the Promotional Mix 417 Discuss the AIDA concept and its relationship to the promotional mix. Integrated Marketing Communications Learning Objective 6 AIDA and the Promotional Mix Awareness Interest Desire Action Advertising Very effective Very effective Somewhat effective Not effective Public Relations Very effective Very effective Very effective Not effective Sales Promotion Somewhat effective Somewhat effective Very effective Very effective Personal Selling Somewhat effective Very effective Very effective Somewhat effective Chapter 12 Version 3e Chapter 14 Version 6e

Learning Objective Integrated Marketing Communications Describe the factors that affect the promotional mix. 418 7 A. Nature of the Product Product characteristics Business product vs. consumer product Costs and risks Social risk HIGH COST OF PERSONAL SELLING CLOTHING, JEWELRY Chapter 14 Version 6e

Explain the goal & tasks of promotion. 414 Integrated Marketing Communications Learning Objective Explain the goal & tasks of promotion. 5 1. Informing 3. Reminding PLC Stages: Introduction Early Growth PLC Stages: Target Audience Maturity 2. Persuading 4. Reassuring PLC Stages: PLC Stages: Growth Maturity ALL Chapter 14 Version 6e

B. Product Life Cycle & Promotional Mix 419 Integrated Marketing Communications Learning Objective Describe the factors that affect the promotional mix. 7 B. Product Life Cycle & Promotional Mix Introduction Growth Maturity Decline Sales ($) Time Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution Chapter 12 Version 3e Chapter 14 Version 6e

C. Target Market Characteristics 420 Integrated Marketing Communications Learning Objective Describe the factors that affect the promotional mix. 7 C. Target Market Characteristics FOR: Widely scattered market Informed buyers Repeat buyers Advertising Sales Promotion Less Personal Selling Chapter 14 Version 6e

D. Type of Buying Decision 420 Integrated Marketing Communications Learning Objective Describe the factors that affect the promotional mix. 7 D. Type of Buying Decision Routine Advertising Type of Buying Decision affects Promotional Mix Choice Sales Promotion Not Routine or Complex Advertising Public Relations Complex Personal Selling Chapter 14 Version 6e

Describe the factors that affect the promotional mix. 421 Integrated Marketing Communications Learning Objective Describe the factors that affect the promotional mix. 7 E. Available Funds Trade-offs with funds available Number of people in target market Quality of communication needed Relative costs of promotional elements Chapter 14 Version 6e

F. Push and Pull Strategies 421 Integrated Marketing Communications Learning Objective Describe the factors that affect the promotional mix. 7 F. Push and Pull Strategies PUSH STRATEGY Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer Orders to manufacturer PULL STRATEGY Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer Chapter 14 Version 6e

Describe Advantages of Personal Selling Learning Objective 479 PART 2 Integrated Marketing Communications Describe Advantages of Personal Selling 8 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 Version 3e Chapter 14 Version 6e

Describe Advantages of Personal Selling Learning Objective 480 Integrated Marketing Communications Describe Advantages of Personal Selling 8 Personal Selling is more important if... Advertising & Sales Promotion are more important if... Product has a high value Product has a low value Product is custom made Product is standardized Product is technically complex Product is simple to understand There are few customers There are many customers Customers are concentrated Customers are geographically dispersed Chapter 12 Version 3e Chapter 14 Version 6e

9 Relationship Selling Learning Objective Discuss key differences 481 Learning Objective Discuss key differences between relationship selling and traditional selling. Integrated Marketing Communications 9 Focus: Building Mutual Trust Long-Term Value-Added Benefits to Buyer Relationship Selling A sales practice that involves building, maintaining, & enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. Chapter 14 Version 6e

VS Traditional Relationship Selling Personal Selling Sell products 482 Integrated Marketing Communications Traditional Personal Selling VS Relationship Selling Sell products Sell advice, assistance, counsel Focus on closing sales Focus on customer’s bottom line Limited sales planning Sales planning is top priority Discuss product Build problem-solving environment Assess “Product-specific” needs Conduct discovery in scope of operations “Lone wolf” approach Team approach Pricing/product focus Profit impact and strategic benefit focus Short-term sales follow-up Long-term sales follow-up Chapter 12 Version 3e Chapter 14 Version 6e

List steps in the selling process. 483 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 A. Generating Leads 1. Advertising 2. Publicity 3. Direct Mail/ Telemarketing 4. Cold Calling 5. Web Sites/ Internet 6. Referrals 7. Networking 8. Trade Shows/ Conventions 9. Company Records Sources of Sales Leads Chapter 12 Version 3e Chapter 14 Version 6e

List steps in the selling process. 484 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 Cold Calling A form of lead generation in which the salesperson approaches potential buyers without prior knowledge of the prospects’ needs or financial status. Chapter 14 Version 6e

List steps in the selling process. 484 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 Characteristics of Qualified Leads Recognized Need Receptivity & Accessibility Buying Power Chapter 14 Version 6e

List steps in the selling process. 2. Customers and their needs 485 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 C. Probing Needs 1. Product or service Salesperson must know everything about... 2. Customers and their needs 3. Competition 4. Industry Chapter 14 Version 6e

List steps in the selling process. 486 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 C. Needs Assessment A determination of the customer’s specific needs and wants and the range of options a customer has for satisfying them. Chapter 12 Version 3e Chapter 14 Version 6e

D. Developing and Proposing Solutions 487 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 D. Developing and Proposing Solutions 1. Sales Proposal 2. Sales Presentation Chapter 12 Version 3e Chapter 14 Version 6e

10 E. Handling Objections List steps in the selling process. 487 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 1. View objections as requests for information E. Handling Objections 2. Anticipate specific objections 3. Use the objection to close the sale Chapter 12 Version 3e Chapter 14 Version 6e

List steps in the selling process. 1. Look for customer signals 488 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 F. Closing the Sale Closing the Sale 1. Look for customer signals 2. Keep an open mind 3. Negotiate Chapter 12 Version 3e Chapter 14 Version 6e

10 G. Following Up List steps in the selling process. 488 Integrated Marketing Communications Learning Objective List steps in the selling process. 10 G. Following Up Responsibilities in Following Up 1. Ensure delivery schedules are met 2. Goods or service perform as promised 3. Employees are trained Chapter 12 Version 3e Chapter 14 Version 6e

11 TASKS OF SALES MANAGEMENT Describe the functions Learning Objective 490 Integrated Marketing Communications Describe the functions of sales management. 11 A. Define sales goals and sales process TASKS OF SALES MANAGEMENT B. Determine sales force structure C. Recruit and train sales force D. Compensate and motivate sales force E. Evaluate sales force Chapter 12 Version 3e Chapter 14 Version 6e

Describe the functions Learning Objective 490 Integrated Marketing Communications Describe the functions of sales management. 11 Sales Goals Should Be... Quota Defining Sales Goals 1. Clear 2. Precise individual salesperson’s sales objectives, usually sales volume, sometimes including key accounts. 3. Measurable 4. Time Specific Chapter 12 Version 3e Chapter 14 Version 6e

B. Sales Force Structure Learning Objective 491 Integrated Marketing Communications Describe the functions of sales management. 11 B. Sales Force Structure 1. Geographic Region Common Sales Organization Structures 2. Product Line 3. Marketing Function 4. Market or Industry 5. Individual client or account Chapter 12 Version 3e Chapter 14 Version 6e

C. Recruit & Train the Sales Force Learning Objective 492 Integrated Marketing Communications Describe the functions of sales management. 11 C. Recruit & Train the Sales Force Company policies and practice Training includes... Selling techniques Product knowledge Industry and customer characteristics Nonselling duties Chapter 12 Version 3e Chapter 14 Version 6e

11 Describe the functions of sales management. Learning Objective 492 Integrated Marketing Communications Describe the functions of sales management. 11 D. Basic Compensation Methods Commission Salary Combination Plans The salesperson receives a salary regardless of sales productivity. The salesperson is paid some percentage when a sale is made. Chapter 12 Version 3e Chapter 14 Version 6e

E. Evaluating the Sales Force Learning Objective 493 Integrated Marketing Communications Describe the functions of sales management. 11 E. Evaluating the Sales Force Performance Measures 1. Sales Volume 2. Contribution to Profit 3. Calls per Order 4. Sales or Profits per Call 5. Call Percentage Achieving Goals Chapter 12 Version 3e Chapter 14 Version 6e

Impact of Technology on Personal Selling Learning Objective 494 Integrated Marketing Communications Describe the functions of sales management. 11 Laptop computer link Mobile telephones Pagers Impact of Technology on Personal Selling Personal data assistants E-Mail Internet Chapter 12 Version 3e Chapter 14 Version 6e

chapter 12 Chapter 12 Summary Integrated Marketing Communications Chapter 12 Summary 1. The role of promotion in the marketing mix. 2. Elements of the promotional mix. The communication process. Explain the goal and tasks of promotion. AIDA concept and its relationship to the promotional mix. Factors that affect the promotional mix. Concept of integrated marketing communications. 12 chapter Chapter 12 Version 3e Chapter 14 Version 6e

ADVERTISING & PUBLIC RELATIONS Integrated Marketing Communications NEXT TOPIC CHAPTER 13 ADVERTISING & PUBLIC RELATIONS Chapter 12 Version 3e Chapter 14 Version 6e