Marketing Communication tools Industrial & Consumer Communication Mix 1.Personal selling 2. Sales theories 3.Direct Marketing 4.Sales Promotion 5.Advertising 6.Public relations/ publicity Ninth Lecture On Communication Mix

Marketing Communication Tools Advertising PersonalSelling DirectMarketing SalesPromotion Publicity-PR

Industrial & Consumer Communication Mix Industrial Marketing ( ranking of promotional mix) 1.Personal selling 2.Direct marketing 3.Sales promotion 4.Advertising 5.Public relation/ publicity Consumer Marketing (ranking of promotional mix) 1.Advertising 2.Sales promotion 3.Personal selling 4.Direct marketing 5.Public relation/ publicity

Personal Selling – Defined Personal selling refers to building lasting Professional relationship between the buyer and seller

Contributions of Personal Selling Salespeople help stimulate the economy Salespeople help with the diffusion of innovation Salespeople provide solutions to problems Salespeople provide expertise and serve as information resources Salespeople serve as advocates for the customer when dealing with the selling organization

Transaction-Focused vs. Relationship Focused Transaction-Focused Transaction-Focused Relationship-Focused Relationship-Focused Short term thinking Making the sale has priority over most other considerations Interaction between buyer and seller is competitive Salesperson is self- interest oriented Long term thinking Developing the relationship takes priority over getting the sale Interaction between buyer and seller is collaborative. Salesperson is customer-oriented

Classification of Personal Selling Approaches Stimulus Response Selling Mental State Selling Need Satisfaction Selling Problem Solving Selling

Stimulus Response Selling Sony vs. LG TV Salesperson Provides Stimuli Buyer Responses Sought Continue Process until Purchase Decision

Mental States Selling Sony vs. LG TV Attention Interest Conviction Desire Action

Need Satisfaction Selling (Any color TV) Uncover and Confirm Buyer Needs Present Offering to Satisfy Buyer Needs Continue Selling until Purchase Decision

THE EIGHT STEPS OF THE SALES PROCESS 8. Follow-up 7. Gaining Commitment 6. Meeting objections 5. Presentation 4. Need Assessment (ascertain buyer’s needs) 3. Approach (contacts between the buyer and seller) 2. Preapproach (qualifying leads) 1. Prospecting ( master list)

Corporate Goals Top management: Corporate Goals Achieving targeted sales volume Cost control & contribution to Profits Sustained future growth Coordinated through of Marketing & Sales Management

Crucial Role of Sales & Marketing Dept. Promoters/ Directors President Vice president Marketing General Manager Sales Vice presidents Prod/Fin/HR Sales managers Regional/product Sales Executives/ Salesmen Bottoms Up Approach of Sales Management leads to the realization Organizational goals Customer is the king

Personal selling by the salesman using the skills of salesmanship Personal selling SalesmanSalesmanship Sales management Sales management directs personal selling efforts which are Implemented through the skills of salesmanship

Theories of personal selling (related to salesmanship) Seller Oriented : AIDAS (Attention, Interest,Desire, Action & Satisfaction) Buyer oriented Behavioral oriented

First Theory: AIDAS ( Attention, Interest,Desire, Action,& Satisfaction) Five Successive Mental States of customer: Securing attention: Sales person should put the prospect( new customer) in receptive state of mind First few minutes of the interview are crucial & the first impression is important He should be skilled conversationalist, friendly and with a genuine smile Gaining interest Second goal is to intensify the prospects attention into strong interest Explain product USP, technical features, benefits, etc Try and match customer’s needs with what is being offered Kindling desire Third goal is to kindle the customer’s desire to ready to buy point Objections need answering to the prospects satisfaction Induction of action If the above process is tactfully handled the customer should be ready to buy. Building satisfaction After the customer has given the order, he should get the feeling of great satisfaction that the salesman has helped in making the right choice AIDAS is a seller oriented theory stressing sales person controlling the situation

Seller Oriented theory Son in law buying Suitings & accessories For marriage ( father in law paying)

Second theory: Buyer Oriented theory of selling Buyer’s needs (or problems) receive major attention and sales person has the role in meeting buyer’s requirement and total satisfaction( find solution) Through interaction the sales person is expected to read psychology of the buyer facilitating his buying decision. Buying formula (stages of thinking process involved in buyer’s purchasing decision) Ascertain the Need Offer the Product…..Adequacy/pleasant feeling Trade name.... Adequacy/pleasant feeling Purchase…. Satisfaction/ dissatisfaction Buying habits are influenced by the impact of Advertisement & person selling skills of sales person

Buyer Oriented Theory Toyota CorollaNew Honda City

Third theory: Behavioral equation based on stimulus response Stimulus Response Model: Based on buying behavior & purchasing decision process Four essential elements of the stimulus response model : 1. Drive: strong internal stimuli that impels the buyer’s response 2. Cue : This stimuli about the product may come from advertising, sales person or conversation with some friend 3Response: What the buyer does 4. Reinforcement : Reinforces buyer‘s decision to respond

Behavioral theory of selling

Direct Marketing Direct marketing tools are used to identify and create interest with potential/ new customers, before sales persons visit them Direct marketing tools are: –Direct mail( promotional letters/ catalogues) –Telemarketing (Marketing through a telephone) –Online marketing channels( services ): Commercial on line channels & internet

Sales Promotion Whereas advertising gives a reason to buy, SP gives an incentive to buy Objective is to generate business leads and stimulating sales team to follow up rigorously to convert them into customers Sales/ business promotion tools are:  Trade shows/ exhibitions  Demonstrations  Sales contests  Promotional letters/ gifts  Seminars etc  Entertaining industrial customers

Scope It is any paid form of non – personal presentation and promotion of ideas, goods, services by an identified sponsor Characteristics Good for awareness building as research can be wide and quick Repetition allows simple messages to be effectively communicated Impersonal and one-way (effectiveness) Limited capacity to close the sale ADVERTISING

The 5 Ms of Advertising Mission – objectives Money – budgets Message – communication Media – what vehicles? Measurement - evaluation

Media Class Options Press National Regional Magazines Fashion Technical Trade Television Radio Cinema Posters

Industrial Advertising Objectives: Creating awareness Reaching members of buying centre Increasing efficiency/ effectiveness Sales lead generation Supporting distribution channel members Media used for advertising:  In industrial directories/ yellow pages  Industrial journals/ vertical publications for textiles, chemical, steel, infra structure etc  Business magazines like Business world, Business India, Business today, 4Ps Business & Marketing, etc  Use of advertising agencies for print/ broad cast media

Public relations/ publicity Objectives: PR representatives to focus on creating company image Maintaining good relations with customers suppliers, share holders, employees, press, government officials etc. Publicity is a form of marketing public relations Publicity is low cost means of advertising and promotion leading to company image building and generating leads from industrial buyers

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