Transcript Chapter 12 PowerPoint Slides

Chapter 12
Marketing Communication
and Personal Selling
Prepared by
Deborah Baker
Texas Christian University
Chapter 12 Ver 2e
©2000 South-Western College Publishing
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Chapter 12 Objectives
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)
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Chapter 12 Objectives
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)
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Chapter 12 Objectives
9. List the steps in the selling process.
10. Describe the functions of sales
management.
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The Role of Promotion
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
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The Role of Promotion
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.
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Differential Advantage
High Product Quality
Rapid Delivery
Features
that provide
Differential
Advantage
Low Prices
Excellent Service
Unique Features
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The Promotional Mix
Advertising
Elements
of the
Promotional
Mix
Public Relations
Personal Selling
Sales Promotion
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The Role of Promotion in Marketing Mix
Overall Marketing
Objectives
Marketing Mix
•Product
•Distribution
•Promotion
•Price
Target Market
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Promotional Mix
•Advertising
•Public Relations
•Personal Selling
•Sales Promotion
Promotion Plan
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Personal Selling
Traditional
Selling
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Relationship
Selling
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Advertising
Traditional
Advertising Media








Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
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Electronic
Advertising Media
 Internet
 Computer modems
 Fax machines
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Sales Promotion
Free Samples
Contests
Premiums
Trade Shows
Types of
Sales Promotion
Sweepstakes
Coupons
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Public Relations
Functions of
Public Relations
Executes
programs to
“win” public
Evaluates public
attitudes
Identifies areas
of interest
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Marketing Communication
Categories of
Communication
Interpersonal
Communication
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Mass
Communication
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The Communication Process
Noise
Sender
Encoding
Message
Message
Channel
Decoding
Message
Receiver
Message
Channel
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Characteristics of Promotional Mix
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
Message Flexibility
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Slow
Tailored to prospect
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Characteristics of Promotional Mix
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
Message Flexibility
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Fast
Same message to all audiences
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Characteristics of Promotional Mix
Sales Promotion
Communication Mode
Communication Control
Feedback Amount
Usually Indirect and non-personal
Moderate to low
Little to moderate
Feedback Speed
Varies
Message Flow Direction
Mostly one-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
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Fast
Same message to varied target
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Characteristics of Promotional Mix
Public Relations
Communication Mode
Communication Control
Feedback Amount
Usually indirect, non-personal
Moderate to low
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
No
Sponsor Identification
No
Reaching Large Audience
Message Flexibility
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Usually fast
Usually no direct control
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Integrated Marketing Communications
Sales
Promotion
Consistent,
Unified
Message
Customer
Focused
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Goals and Tasks of Promotion
Informing
Reminding
Target
Audience
Persuading
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Goals and Tasks of Promotion
Informing
PLC Stages:
Introduction
Early Growth
PLC Stages:
Growth
Maturity
Reminding
PLC Stages:
Maturity
Target
Audience
Persuading
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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
Reminder Objective
•
•
•
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
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Promotional Goals and the AIDA Concept
Action
Desire
Interest
Attention
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AIDA and the Promotional Mix
Awareness
Interest
Desire
Action
Personal
Selling
Somewhat
effective
Very
effective
Very
effective
Somewhat
effective
Advertising
Very
effective
Very
effective
Somewhat
effective
Not
effective
Sales
Promotion
Public
Relations
Somewhat
effective
Somewhat
effective
Very
effective
Very
effective
Very
effective
Very
effective
Very
effective
Not
effective
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Factors Affecting the Promotional Mix
Nature of Product
Stage in PLC
Target Market Factors
Factors
Affecting
Choice of
Promotional Mix
Type of Buying Decision
Promotion Funds
Push or Pull Strategy
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Sales ($)
PLC and the Promotional Mix
Maturity
Decline
Growth
Introduction
Time
Light
Advertising,
preintroduction
Publicity
Heavy use of
advertising,
PR for
awareness;
sales
promotion
for trial
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Advertising,
PR, Brand
loyalty
Personal
Selling for
distribution
Ads decrease.
AD/PR
Sales
decrease
Promotion,
Limited
Personal
Sales
Selling
Promotion,
Reminder &
Personal
Persuasive
Selling for
distribution
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Target Market Characteristics
Widely-scattered markets
Highly-informed buyers
Brand-loyal repeat purchasers
Advertising
Sales Promotion
Less Personal Selling
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Type of Buying Decision
Routine
Advertising
Sales Promotion
Type of
Buying Decision
affects
Promotional
Mix Choice
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Advertising
Not Routine
or Complex
Public Relations
Complex
Personal Selling
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Available Funds
 Trade-offs with funds available
 Number of people in target market
 Quality of communication needed
 Relative costs of promotional elements
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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
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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
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Personal Selling
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
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Relationship Selling
Traditional
Personal Selling
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
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Steps in the Selling Process
Generate Leads
Qualify Leads
Probe Customer Needs
Develop Solutions
Basic Steps
in the
Personal Selling
Process
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Handle Objections
Close the Sale
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Follow Up
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Generating Leads
Advertising
Publicity
Direct Mail/
Telemarketing
Cold Calling
Web Sites
Client
Referrals
Sales
Networking
Trade Shows/
Conventions
Company
Records
Sources of
Sales Leads
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Qualifying Leads
Characteristics of
Qualified Leads
Receptivity &
Accessibility
Recognized Need
Buying Power
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Probing Needs
Product or service
Salesperson
must know
everything
about...
Customers and their needs
Competition
Industry
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Sales Management
Define sales goals and
sales process
Determine sales
force structure
Tasks of
Sales Management
Recruit and train
sales force
Compensate and motivate
sales force
Evaluate sales force
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Leadership Traits of Sales Leaders
Effective Sales Leaders...
Are assertive
Possess ego drive
Possess ego strength
Take risks
Are innovative
Have a sense of urgency
Are empathetic
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