1. Chapter 12 Ver 2e1 Chapter 12 ©2000 South-Western College Publishing Marketing Communication and Personal Selling Prepared by Deborah Baker Texas Christian University

2. Chapter 12 Ver 2e2 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 Objectives ©2000 South-Western College Publishing

3. Chapter 12 Ver 2e3 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 between relationship selling and traditional selling. (continued) Chapter 12 Objectives ©2000 South-Western College Publishing

4. Chapter 12 Ver 2e4 9.List the steps in the selling process. 10.Describe the functions of sales management. Chapter 12 Objectives ©2000 South-Western College Publishing

5. Chapter 12 Ver 2e5 The Role of Promotion ©2000 South-Western College Publishing 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

6. Chapter 12 Ver 2e6 The Role of Promotion ©2000 South-Western College Publishing People no longer buy shoes to keep their feet warm and dry. They buy them because of the way the shoes make them feel -- masculine, feminine, rugged, different, sophisticated, young, glamorous, “in.” Buying shoes has become an emotional experience. Our business now is selling excitement rather than shoes. --Francis C. Rooney Chairman, H. H. Brown Shoe Co. Chairman, H. H. Brown Shoe Co.

7. Chapter 12 Ver 2e7 ©South-Western College Publishing Unique Features Excellent Service Low Prices Rapid Delivery High Product Quality Features that provide Differential Advantage Advantage Features that provide Differential Advantage Advantage Differential Advantage

8. Chapter 12 Ver 2e8 The Promotional Mix ©2000 South-Western College Publishing Advertising Elements of the Promotional Mix Elements of the Promotional Mix Public Relations Personal Selling Sales Promotion

9. Chapter 12 Ver 2e9 ©2000 South-Western College Publishing The Role of Promotion in Marketing Mix Promotional Mix Advertising Public Relations Personal Selling Sales Promotion Promotion Plan Promotional Mix Advertising Public Relations Personal Selling Sales Promotion Promotion Plan Overall Marketing Objectives Marketing Mix ProductProduct DistributionDistribution PromotionPromotion PricePrice Marketing Mix ProductProduct DistributionDistribution PromotionPromotion PricePrice Target Market

10. Chapter 12 Ver 2e10 ©2000 South-Western College Publishing Personal Selling Traditional Selling Traditional Selling Relationship Selling Relationship Selling

11. Chapter 12 Ver 2e11 ©2000 South-Western College Publishing Advertising Traditional Advertising Media Traditional Advertising Media Electronic Advertising Media  Television  Radio  Newspapers  Magazines  Books  Direct mail  Billboards  Transit cards  Internet  Computer modems  Fax machines

12. Chapter 12 Ver 2e12 Free Samples Contests Premiums Trade Shows Sweepstakes Coupons Types of Sales Promotion Types of Sales Promotion ©2000 South-Western College Publishing

13. Chapter 12 Ver 2e13 ©2000 South-Western College Publishing Public Relations Evaluates public attitudes Identifies areas of interest Identifies areas of interest Executes programs to “win” public Functions of Public Relations Functions of Public Relations

14. Chapter 12 Ver 2e14 ©2000 South-Western College Publishing Marketing Communication Categories of Communication Categories of CommunicationInterpersonalCommunicationInterpersonalCommunicationMassCommunicationMassCommunication

15. Chapter 12 Ver 2e15 ©2000 South-Western College Publishing The Communication Process Noise Sender Encoding Message Message Channel Message Channel Message Channel Message Channel Decoding Message Decoding Message Receiver

16. Chapter 12 Ver 2e16 Characteristics of Promotional Mix ©2000 South-Western College Publishing Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Personal Selling Direct and face-to-face High Much Immediate Two-way Yes Slow Tailored to prospect

17. Chapter 12 Ver 2e17 Characteristics of Promotional Mix ©2000 South-Western College Publishing Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility AdvertisingAdvertising Indirect and non-personal Low Little Delayed One-way Yes Fast Same message to all audiences

18. Chapter 12 Ver 2e18 Characteristics of Promotional Mix ©2000 South-Western College Publishing Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Sales Promotion Usually Indirect and non-personal Moderate to low Little to moderate Varies Mostly one-way Yes Fast Same message to varied target

19. Chapter 12 Ver 2e19 Characteristics of Promotional Mix ©2000 South-Western College Publishing Communication Mode Communication Control Feedback Amount Feedback Speed Message Flow Direction Message Content Control Sponsor Identification Reaching Large Audience Message Flexibility Public Relations Usually indirect, non-personal Moderate to low Little Delayed One-way No Usually fast Usually no direct control

20. Chapter 12 Ver 2e20 Integrated Marketing Communications ©2000 South-Western College Publishing Consistent,UnifiedMessageSalesPromotionMediaAdvertising PersonalSelling PublicRelations Packaging DirectMarketing Communi-cation Customer Focused

21. Chapter 12 Ver 2e21 Goals and Tasks of Promotion ©2000 South-Western College Publishing Informing Reminding Persuading Target Audience Target Audience

22. Chapter 12 Ver 2e22 Goals and Tasks of Promotion ©2000 South-Western College Publishing Informing Reminding Persuading Target Audience Target Audience PLC Stages PLC Stages: Introduction Early Growth PLC Stages: Growth Maturity PLC Stages: Maturity

23. Chapter 12 Ver 2e23 Goals and Tasks of Promotion 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 ©2000 South-Western College Publishing Reminder Objective Remind customers that product may be needed Remind customers where to buy product Maintain customer awareness

24. Chapter 12 Ver 2e24 ©2000 South-Western College Publishing Promotional Goals and the AIDA Concept A ttention I nterest D esire A ction

25. Chapter 12 Ver 2e25 ©2000 South-Western College Publishing AIDA and the Promotional Mix AwarenessAwarenessInterestInterestDesireDesireActionActionPersonalSelling Somewhat effective Very effective Very effective Somewhat effective Somewhat effective Advertising Very effective Very effective Somewhat effective Not effective Not effective SalesPromotion Somewhat effective Somewhat effective Very effective Very effective Very effective PublicRelationsPublicRelations Very effective Very effective Very effective Very effective Very effective Very effective Not effective Not effective

26. Chapter 12 Ver 2e26 Nature of Product Stage in PLC Target Market Factors Type of Buying Decision Promotion Funds Push or Pull Strategy FactorsAffecting Choice of Promotional Mix FactorsAffecting Choice of Promotional Mix Factors Affecting the Promotional Mix ©2000 South-Western College Publishing

27. Chapter 12 Ver 2e27 PLC and the Promotional Mix ©2000 South-Western College Publishing Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial AD/PR decrease Limited Sales Promotion, Personal Selling for distribution Ads decrease. Sales Promotion, Personal Selling Reminder & Persuasive Advertising, PR, Brand loyalty Personal Selling for distribution Introduction Growth Maturity Decline Sales ($) Time

28. Chapter 12 Ver 2e28 ©2000 South-Western College Publishing 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

29. Chapter 12 Ver 2e29 ©2000 South-Western College Publishing Type of Buying Decision Advertising Sales Promotion Type of Buying Decision affectsPromotional Mix Choice Type of Buying Decision affectsPromotional Mix Choice ComplexComplex RoutineRoutine Personal Selling Not Routine or Complex Not Routine or Complex Advertising Public Relations

30. Chapter 12 Ver 2e30 ©2000 South-Western College Publishing  Trade-offs with funds available  Number of people in target market  Quality of communication needed  Relative costs of promotional elements Available Funds

31. Chapter 12 Ver 2e31 ©2000 South-Western College Publishing Push and Pull Strategies Manufacturer promotes to wholesalerManufacturer wholesalerWholesaler retailerWholesaler retailerRetailer consumerRetailer consumerConsumer buys from retailerConsumer retailer PUSH STRATEGY Orders to manufacturer Manufacturer promotes to consumerManufacturer consumerConsumerdemandsproduct from retailer Consumerdemandsproduct Retailerdemandsproduct from wholesaler Retailerdemandsproduct Wholesalerdemands product from manufacturerWholesalerdemands manufacturer Orders to manufacturer PULL STRATEGY

32. Chapter 12 Ver 2e32 ©2000 South-Western College Publishing Advantages 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

33. Chapter 12 Ver 2e33 ©South-Western College Publishing Personal Selling Customers are concentrated Customers are concentrated There are few customers Product is technically complex Product is custom made Product has a high value Personal Selling is more important if... Customers are geographically dispersed Customers are geographically dispersed There are many customers Product is simple to understand Product is standardized Product has a low value Advertising & sales promotion are more important if...

34. Chapter 12 Ver 2e34 ©2000 South-Western College Publishing Traditional Personal Selling Traditional Sell products Focus on closing sales Limited sales planning Discuss product Assess “Product-specific” needs Assess “Product-specific” needs “Lone wolf” approach Pricing/product focus Short-term sales follow-up Relationship Selling Sell advice, assistance, counsel Focus on customer’s bottom line Sales planning is top priority Build problem-solving environment Conduct discovery in scope of operations Conduct discovery in scope of operations Team approach Profit impact and strategic benefit focus Profit impact and strategic benefit focus Long-term sales follow-up Relationship Selling

35. Chapter 12 Ver 2e35 Steps in the Selling Process Generate Leads Qualify Leads Probe Customer Needs Develop Solutions Handle Objections Close the Sale Follow Up Basic Steps in the Personal Selling Process Basic Steps in the Personal Selling Process ©2000 South-Western College Publishing

36. Chapter 12 Ver 2e36 ©2000 South-Western College Publishing Generating Leads Cold Calling Advertising Publicity Direct Mail/ Telemarketing Direct Mail/ Telemarketing Trade Shows/ Conventions Trade Shows/ Conventions Web Sites Client Referrals Sales Networking Sales Networking Company Records Sources of Sales Leads

37. Chapter 12 Ver 2e37 Recognized Need Buying Power Receptivity & Accessibility Receptivity & Accessibility Characteristics of Qualified Leads Characteristics of Qualified Leads ©2000 South-Western College Publishing Qualifying Leads

38. Chapter 12 Ver 2e38 Probing Needs ©2000 South-Western College Publishing Product or service Salesperson must know everything about... Salesperson must know everything about... Customers and their needs Competition Industry

39. Chapter 12 Ver 2e39 ©South-Western College Publishing Sales Management Evaluate sales force Compensate and motivate sales force Compensate and motivate sales force Recruit and train sales force Recruit and train sales force Determine sales force structure Determine sales force structure Define sales goals and sales process Define sales goals and sales process Tasks of Sales Management Sales Management Tasks of Sales Management Sales Management

40. Chapter 12 Ver 2e40 ©2000 South-Western College Publishing Effective Sales Leaders... Are assertive Possess ego drive Possess ego strength Take risks Are innovative Have a sense of urgency Are empathetic Leadership Traits of Sales Leaders