Sales Promotion - Roddy Mullin

... to under-stand just how fundamental sales promotion is to marketing communica-tions.And it can only grow further in importance, given the uptake of sales promotion by business-to-business, ... offend, only sales promotion remains. The same applies to the direct mail or door-to-door liter-xviii Prefaceature: you usually only recall direct marketing later if it has a sales promotion. ... using sales promotions, the promotion mechanics (how the customer can respond) and the production of a sales promotion are all in the  rst part of the book. Individual techniques, the sales promotion...

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UnitUnitUnitUnit12:12:12:12:PublicPublicPublicPublicRelations,Relations,Relations,Relations, Sales Sales Sales Sales Promotion, Promotion, Promotion, Promotion, andandandandPersonalPersonalPersonalPersonalSellingSellingSellingSellingPublicPublicPublicPublicRelationsRelationsRelationsRelationsandandandandPublicity:Publicity:Publicity:Publicity:PublicPublicPublicPublicrelationsrelationsrelationsrelationsisanorganization’scommunicationsthatseektobuildgoodrelationshipswithanorganization’spublics,includingconsumers,stockholders,andlegislators.Itincludesobtainingfavorablepublicity,buildingupagood“corporateimage,”andhandlingorheadingoffunfavorablerumors,stories,andevents.PublicityPublicityPublicityPublicityisunpaidcommunicationaboutanorganizationthatappearsinthemassmedia.Publicrelationsmayconsistofwritingpressreleases,holdingspecialevents,conductingandpublishingconsumersurveysaboutaproductorthecompany,andeffortstoputapositivespinonnegativecompanynews.Unlike sales promotions,publicrelationsactivitiesdonotusuallyseekashort-termincreasein sales. Instead,theytrytocraftalong-termpositiveimagefortheproductortheorganization.Comparedwithpersonalselling,advertising,and sales promotions,expendituresforpublicrelationsareusuallylowinmostorganizations.Sincecompaniesdonotpayforpublicity,theyhavelesscontroloverthepublicationofgoodorbadcompanynews.Butthisoftenmeansthatconsumersfindthistypeofnewssourcemorebelievablethaniftheinformationweredisseminateddirectlybythecompany.MarketingMarketingMarketingMarketingandandandandNonmarketingNonmarketingNonmarketingNonmarketingPublicPublicPublicPublicRelations:Relations:Relations:Relations:Thebasicruleofpublicrelationsistodosomethinggoodandthentalkaboutit.Publicrelationsiscrucialtoanorganization’sabilitytoestablishandmaintainafavorableimage.NonmarketingNonmarketingNonmarketingNonmarketingpublicpublicpublicpublicrelationsrelationsrelationsrelationsreferstoacompany’smessagesaboutgeneralmanagementissues.Whenacompanymakesadecisionthataffectsanyofitspublics,inputfrompublicrelationsspecialistscanhelptosmoothitsdealingswiththosepublics.Acompany,forexample,thatdecidestocloseaplantwouldneedadviceonhowtodealwiththelocalcommunity.Otherexamplesincludeacompany’sattemptstogainfavorablepublicopinionduringalongstrikeoranopenlettertoCongresspublishedinanewspaperduringcongressionaldebatesonabillthatwouldaffectaparticularindustry.MarketingMarketingMarketingMarketingpublicpublicpublicpublicrelationsrelationsrelationsrelationsreferstonarrowlyfocusedpublicrelationsactivitiesthatdirectlysupportmarketinggoals.Marketingpublicrelationsinvolvesanorganization’srelationshipswithconsumersorAllowancesAnallowanceallowanceallowanceallowanceispromotionalmoneypaidbymanufacturerstoretailersinreturnforanagreementtofeaturethemanufacturer’sproductsinsomeway.Anadvertisingallowancecompensatesretailersforadvertisingtheproduct.Adisplayallowancecompensatesthemforusingspecialdisplays.ConventionsandTradeShowsManycompaniesandtradeassociationsorganizeconventionsandtradeshowstopromotetheirproducts.Firmssellingtotheindustryshowtheirproductsatthetradetradetradetradeshowshowshowshow.Atradetradetradetradeshowshowshowshowisaneventatwhichmanycompaniessetupelaborateexhibitstoshowtheirproducts,giveawaysamples,distributeproductliterature,andtrollfornewbusinesscontacts.Tradeshowsaremajorvehiclesformanufacturerstoshowofftheirproductlinestowholesalersandretailers.Morethan4,300tradeshowstakeplaceeveryyear,drawingasmanyas85millionpeople.Vendorsreceivemanybenefits,suchasopportunitiestofindnew sales leads,contactcustomers,introducenewproducts,meetnewcustomers,sellmoretopresentcustomers,andeducatecustomerswithpublicationsandaudiovisualmaterials.Tradeshowsalsohelpcompaniesreachmanyprospectsnotreachedthroughtheir sales forces.About90percentofatradeshow’svisitorsseeacompany’ssalespeopleforthefirsttimeattheshow.Businessmarketersmayspendasmuchas35percentoftheirannual promotion budgetsontradeshows.OtherProgramsManufacturersmayofferfreefreefreefreegoodsgoodsgoodsgoods,whichareextracasesofmerchandise,toresellerswhobuyacertainquantityorwhofeatureacertainflavororsize.Theymayofferpushpushpushpushmoneymoneymoneymoney—cashorgiftstodealersortheir sales forcesto“push”themanufacturer’sgoods.Mostretailersalsochargemanufacturersslottingslottingslottingslottingfeesfeesfeesfees—paymentsdemandedbyretailersbeforetheywillacceptnewproductsandfind“slots”forthemontheshelves.Manufacturersmayalsogiveretailersfreespecialtyspecialtyspecialtyspecialtyadvertisingadvertisingadvertisingadvertisingitemsitemsitemsitemsthatcarrythecompany’sname,suchaspens,pencils,calendars,paperweights,matchbooks,memopads,andyardsticks.Formoreexpensiveandhighlycomplexproducts,manufacturersoftenprovidespecializedspecializedspecializedspecializedtrainingtrainingtrainingtrainingforretailsalespeople.Thisbackgroundhelpssalespeopleexplainfeatures,competitiveadvantages,andotherinformationtoconsumers.Trainingcanbeprovidedinseveralways:Amanufacturer’s sales representativecanconducttrainingsessionsduringregular sales calls,orthefirmcandistribute sales literatureandvideocassettes. Sales Sales Sales SalesForceForceForceForce Promotion: Promotion: Promotion: Promotion: Sales force promotion isdirectedatthecompany’sown sales force(oftentimesthemanufacturer’s sales force)—ratherthanabusinesscustomer’s sales forcewhichisinthedistributionchannel,suchasaretailer’s sales force.Contests,forexample,couldbeusedtourgethe sales forcetoincreasetheirefforts,withprizesgoingtothetopperformers.A sales sales sales salescontestcontestcontestcontestisacontestforsalespeopletomotivatethemtoincreasetheir sales performanceoveragivenperiod. Sales contestsmotivateandrecognizegoodcompanyperformers,whomayreceivetrips,cashprizes,orothergifts. Sales contestsworkbestwhentheyaretiedtomeasurableandachievable sales objectives.Otherincentivescouldalsobeprovidedtoencouragethe sales forcetoincreasenewaccountsinadditiontoboosting sales. PersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:PersonalPersonalPersonalPersonalsellingsellingsellingsellingispromotionalpresentationbythefirm’s sales forceconductedonaperson-to-personbasiswiththebuyerforthepurposeofmaking sales andbuildingcustomerrelationships.Personalsellingistheoldestformof promotion. Thisdirectformof promotion maybeconductedface-to-face,overthetelephone,throughvideoconferencing,orthroughinteractivecomputerlinksbetweenthebuyerandtheseller.Thisdirectcontactwiththecustomergivesthesalespersontheopportunitytobeflexibleandmodifythe sales messagetocoincidewiththecustomer’sneeds.Thesalespersoncangetimmediatefeedbackfromthecustomer.Thisformof promotion hasahighcostpercontactwiththecustomer.Theaverage sales callcostsabout$300.Itisdifficulttoensureconsistencyofmessagewhenitisdeliveredbymanydifferentcompanyrepresentatives.Thecredibilityofsalespeopleoftendependsonthequalityoftheircompany’simage,whichhasbeencreatedbyother promotion strategies.About14millionpeopleintheU.S.areemployedinpersonalselling.Today,mostsalespeoplearewell-educated,well-trainedprofessionalswhoworktobuildandmaintainlong-termcustomerrelationshipsbylisteningtotheircustomers,assessingcustomerneeds,andorganizingthecompany’seffortstosolvecustomerproblems.Thetermsalespersoncoversawiderangeofpositions.Atoneextreme,asalespersonmightbelargelyanordertaker,suchasadepartmentstoresalespersonstandingbehindacounter.Attheotherextremeareordergetters,whosepositionsdemandthecreativesellingofproductsrangingfromappliances,industrialequipment,andairplanestoinsurance,advertising,andinformationtechnologyservices.TheTheTheTheRoleRoleRoleRoleofofofofPersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:Generally,apersonal sales effortismoreimportantwhenafirmengagesinapushstrategy,inwhichthegoalistopushtheproductthroughthedistributionchannelsothatitisavailabletoconsumers.PersonalsellingalsoislikelytobecrucialinB2Bcontextswhendirectinteractionwithupper-levelmanagementisrequiredtosecureanimportantsale—andoftenwhenintensepricenegotiationsoccurbeforethesaleismade.Inaddition,inexperiencedbuyersmayneedthehands-onassistancethataprofessionalsalespersoncanprovide.Firmssellingproductsthatconsumersbuyinfrequently,suchascomputers,lawnmowers,andcollegeeducations,oftenrelyheavilyonpersonalselling,asdofirmssellingcomplexorveryexpensiveproductsthatneedasalespersontoexplain,justify,andsellthem.Personalselling,however,hassomedisadvantagesthatlimittheroleplayedbypersonalsellinginthe promotion mix.First,whenthedollaramountofindividualpurchasesislow,itisn’teconomicallyfeasibletousepersonalselling.Thecostpercontactwithacustomerishighcomparedtootherformsofcommunication,suchasadvertising.Salespeoplecanalsoonlymakealimitednumberof sales callsaday.Relianceonpersonalsellingiseffectiveonlywhenthesuccessratioisatitshighest.Becausethecostofutilizingsalespeopleishigh,telemarketingisgrowinginpopularity.Thetypesofsalespeopleandtheirfunctionsvaryconsiderably.Thepersonwhoprocessesacomputerpurchaseoverthephoneisanorderorderorderordertakertakertakertaker,asalespersonwhoseprimaryfunctionistofacilitatetransactionsthatthecustomerinitiates.Ordertakersincludebothinsideandoutsidesalespeople.Mostretailsalespeopleareinsideordertakers,butoftenwholesalers,dealers,anddistributorsemploysalespeopletowaitoncustomers.Incontrast,acomputertechnicianisatechnicaltechnicaltechnicaltechnicalspecialistspecialistspecialistspecialist,a sales supportpersonwithahighleveloftechnicalexpertisewhoassistsinproductdemonstrations,recommendationsforcomplexequipment,andsetupofmachinery.Thetechnicalspecialist’sjobistoprovide sales supportratherthanactuallyclosingthesale.Thetechnicalspecialistpromotesthefirmandtriestostimulatedemandforaproducttomakeiteasierforcolleaguestoactuallymakethesale.Sometimesapersonwhosejobistolaythegroundworkisknownasamissionarymissionarymissionarymissionarysalespersonsalespersonsalespersonsalesperson.Thisisasalespersonwhopromotesthefirmandtriestostimulatedemandforaproduct,butdoesnotactuallycompleteasale.Manyfirmsfindthatthesellingfunctionisbesthandledbyteamteamteamteamsellingsellingsellingselling,usingteamsofpeoplefrom sales, marketing,engineering,finance,technicalsupport,andevenuppermanagementtoservicelarge,complexaccounts.Finally,thepersonwhoactuallyconvincesthecustomertobuyisanorderorderorderordergettergettergettergetter,asalespersonwhoworkscreativelytodeveloprelationshipswithcustomersortogeneratenew sales. ApproachesApproachesApproachesApproachestotototoPersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:Personalsellingisoneoftheoldestformsof promotion, butitsimagehasbeentarnishedbysmooth-talkingpitchmenwhohavesometimessaidanythingtomakeasale.Inmorerecentyears,personalsellinghasbeguntoredeemitselfasaprofessionandhasmovedfromatransactional,hard-selltechniquetoarelationshipmarketingapproach.TransactionalMarketingThehardsellisahigh-pressureprocess.Hard-selltacticsareaformoftransactionaltransactionaltransactionaltransactionalsellingsellingsellingselling,aformofpersonalsellingthatfocusesonmakinganimmediatesalewithlittleornoattempttodeveloparelationshipwiththecustomer.Ascustomers,thehardsellmakesusfeelmanipulatedandresentful.Thistechniquealsocontributestothenegativeimagemanyofushaveofobnoxioussalespeople.RelationshipMarketingToday’sprofessionalsalespersonismorelikelytopracticerelationshiprelationshiprelationshiprelationshipsellingsellingsellingselling,aformofpersonalsellinginwhichthesalespersonseekstodevelopamutuallysatisfyingrelationshipwiththeconsumer.Relationshipsellinginvolveswinning,keeping,anddevelopingcustomers.Winningacustomermeansconvertinganinterestedprospectintosomeonewhoisconvincedthattheproductholdsvalueforhimorher.Keepingacustomermeansensuringthatthecustomergetswhatheorshepaidfor.Developingacustomermeanssatisfyingthecustomersothatheorshewillbecountedontoprovidefuturebusiness.Theprofessionalsalespersonwhogenuinelyadherestotheprinciplesofrelationshipmarketingisarelationshipbuilderandacustomerproblemsolver.TheTheTheTheCreativeCreativeCreativeCreativeSellingSellingSellingSellingProcess:Process:Process:Process:Sellingisseldomboring.Everycustomer,every sales call,andeverysalespersonareunique.Somesalespeoplearesuccessfulprimarilybecausetheyknowsomuchaboutwhattheysell.Othersaresuccessfulbecausetheyhavebuiltstrongrelationshipswithcustomerswholookforwardtotheirvisits.Mostsalespeopleunderstandandengageinaseriesofactivitiesnecessarytobringaboutatransaction.Complexorexpensive sales requirecarefulplanning,andsuccessfulsellinginthesecasesismorelikelyifthesalespersonundergoesasystematicseriesofstepsknownasthecreativecreativecreativecreativesellingsellingsellingsellingprocessprocessprocessprocess.Thesestepsrequirethesalespersontoseekoutcustomers,analyzetheirneeds,determinehowproductattributesprovidebenefits,andthendecidehowbesttocommunicatethistotheprospects.Thestepsintheprocessincludeprospecting,qualifying,preapproach,approach, sales presentation,demonstration,handlingobjections,closing,andfollow-up.ProspectingProspectingProspectingProspectingProspectingisthestepofthesellingprocessthatincludesidentifyinganddevelopingalistofpotentialorprospectivecustomers.Prospectsor sales leadscancomefromexistingcustomerlists,telephonedirectories,orcommerciallyavailabledatabases.Sometimescompaniesgenerate sales leadsthroughtheiradvertisingor sales promotionsbylettingcustomersrequestmoreinformation.Onewaytogenerateleadsisthroughcoldcalling,whenthesalespersoncontactsprospectswithoutpriorintroductionorarrangement.Salespeoplealsorelyonreferrals.Currentclientswhoaresatisfiedwiththeirpurchaseoftengivereferrals.QualifyingSalespeoplenextneedtoqualifyqualifyqualifyqualifytheirprospectsprospectsprospectsprospects,thestepofthesellingprocessthatdetermineshowlikelyprospectsaretobecomecustomers.Prospectscanbequalifiedbylookingattheirfinancialability,volumeofbusiness,specialneeds,location,andpossibilitiesforgrowth.PreapproachThepreapproachpreapproachpreapproachpreapproachisthestepinthesellingprocessinwhichthesalespersonlearnsasmuchaspossibleaboutaprospectivecustomerbeforemakinga sales call.Salespeopletrytolearnasmuchaspossibleaboutqualifiedprospectsearlyon.Theymayprobepriorpurchasehistory,currentneeds,orinformationabouttheirinterests.Thesalespersoncanconsultindustryandonlinesources,acquaintances,etc.tolearnabouttheprospect.Anothertaskistodecideonthebestapproach,whichmightbeapersonalvisit,aphonecall,oraletter.Thebesttimingshouldbeconsideredcarefullybecausemanyprospectsarebusiestatcertaintimes.Finally,thesalespersonshouldgivethoughttoanoverall sales strategyfortheaccount.ApproachTheapproachapproachapproachapproachisthestepinthesellingprocessinwhichthesalespersonusuallymeetsthecustomerforthefirsttime.Heorsheshouldstartbuildingtherelationshipduringtheapproach.Thesalespersonshouldknowhowtomeetandgreettheprospectandgettherelationshipofftoagoodstart.Thisstepinvolvesthesalesperson’sappearance,openinglines,andthefollow-upremarks.Theopeninglinesshouldbepositivetobuildgoodwillfromthebeginningoftherelationship.Ifthesalespersonmadecontactwiththeprospectthroughareferral,thesalespersonshouldprobablysaysoup-front.Thisopeningmightbefollowedbysomekeyquestionstolearnmoreaboutthecustomer’sneedsorbyshowingadisplayorsampletoattracttheprospect’sattentionandcuriosity.Asinallstagesofthesellingprocess,listeningtothecustomeriscrucial. Sales PresentationThe sales sales sales salespresentationpresentationpresentationpresentationisthestepinthesellingprocessinwhichthesalespersonseekstopersuasivelycommunicatetheproduct’sfeaturesandthebenefitsitwillprovideafterthesale.Proofstatements,suchasdataonpast sales, testimonials,guarantees,orresearchresults,helptomakethesalesperson’spresentationcredible.Some sales presentationsarecanned,meaningascripthasbeenwritteninadvance,andthesamemessageisdeliveredtomanyprospects.Thistechniqueoftenprovidesaseriesofverbalpromptstowhichthereareexpectedcustomerresponses.Asimilarapproachcalledaformulatedapproachidentifiesaprospect’sneedsandthenprovidesascripted sales pitchkeyedtothatkindofprospect.Thesestandardizedapproachesworkfineinsomecases,butthemosteffective sales presentationsarethosethataretailoredtothespecificcustomer.Increasingly, sales presentationsaregoinghigh-tech.Computer-basedmultimediapresentationsareconsideredthenextwavein sales- forceautomation.Withamultimedia-readynotebookcomputerorLCDprojectioncomputer,salespeoplecanbringcolor,animation,video,audio,andinteractivity—aswellasthelatestproductandpricinginformation—totheirpresentations.DemonstrationOneimportantadvantageofpersonalsellingovermostadvertisingistheabilityofsalespeopletoprovideademonstrationdemonstrationdemonstrationdemonstrationoftheproducttothepotentialbuyer.Manyfirmsusenewtechnologiestomaketheirdemonstrationsmoreeffective.Multimediainteractivedemonstrationsarenowcommon.Thekeytoagooddemonstration—onethatgainsthecustomer’sattention,keepshisorherinterest,isconvincing,andstaysinthecustomer’smemory—isplanning.Thesalespersonshouldcheckandrecheckallaspectsofthedemonstrationpriortoitsdelivery.HandlingObjectionsHandlingHandlingHandlingHandlingobjectionsobjectionsobjectionsobjectionsisthestepinthesellingprocessinwhichthesalespersonseeksout,clarifies,andovercomescustomerobjectionstobuying.Customersalmostalwayshaveobjectionsduringthepresentationorwhenaskedtoplaceanorder.Theproblemcanbeeitherlogicalorpsychological,andobjectionsareoftentimesunspoken.Thesalespersonshouldhandleobjectionsusingapositiveapproach,byseekingouthiddenobjections,askingtheprospecttoclarifyanyobjections,andtakingobjectionsasopportunitiestoprovidemoreinformation—turningtheobjectionsintoreasonsforbuying.Everysalespersonneedstrainingintheskillsofhandlingobjections.ClosingClosingClosingClosingClosingisthestepinthesellingprocessinwhichthesalespersonasksthecustomerforanorder.Somesalespeopledonotgetaroundtoclosingordonothandleitwell.Theymaylackconfidence,feelguiltyaboutaskingfortheorder,orfailtorecognizetherightmomenttoclosethesale.Salespeopleshouldknowhowtorecognizeclosingsignalsfromthebuyer,includingbodylanguage,comments,andquestions.Salespeoplecanuseseveralclosingtechniques.Theycanaskfortheorder,reviewpointsofagreement,offertohelpwriteuptheorder,askwhethertheybuyerwantsthismodelorthatone,ornotethatthebuyerwillloseoutiftheorderisnotplacednow.Thesalespersonmayalsoofferthebuyerspecialreasonstoclose,suchasalowerpriceoranextraquantityatnocharge.Follow-UpFollow-upFollow-upFollow-upFollow-upisthelaststepinthesellingprocess,inwhichthesalespersonfollowsupafterthesaletoensurecustomersatisfactionandrepeatbusiness.Rightafterclosing,thesalespersonshouldcompleteanydetailsondeliverytime,purchaseterms,andothermatters.Thesalespersonthenshouldscheduleafollow-upcallwhentheinitialorderisreceived,tomakesurethereisproperinstallation,instruction,and/orservicing.Thisvisitshouldrevealanyproblems,assurethebuyerofthesalesperson’sinterest,andreduceanybuyerconcernsthatmighthavearisensincethesale.Follow-upalsoallowsthesalespersontobridgetothenextpurchase.Oncearelationshipdevelops,thesellingprocessisonlythebeginning.Evenasonecycleofpurchasingdrawstoaclose,agoodsalespersonisalreadylayingthefoundationforthenextone. Sales Sales Sales SalesManagement:Management:Management:Management: Sales Sales Sales Salesmanagementmanagementmanagementmanagementistheprocessofplanning,implementing,andcontrollingthepersonalsellingfunctionofanorganization.Personalsellingisateameffortthatrequirescarefulplanningandsalespeopleinthefieldwhenandwherecustomersneedthem. Sales ForceObjectives Sales forceobjectivesstatewhatthe sales forceisexpectedtoaccomplishandwhen.Thesegoalscouldincludeacquiringnewcustomers,generatingspecificamountsof sales volume,reducing sales expenses,improvingcustomersatisfaction,gatheringnew-productsuggestions,traininggoals,andcommunityinvolvementgoals. Sales managersalsoworkwiththeirsalespeopletodevelopindividualgoals.Performancegoalsaremeasurableoutcomes,suchastotal sales andtotalprofitspersalesperson.Behavioralgoalsspecifyactionssalespeoplemustaccomplish,suchasthenumberofprospectstoidentify,thenumberof sales calls,andthenumberof sales presentations. Sales ForceStrategyA sales forcestrategyspecifiesthestructureandsizeofafirm’s sales force.Eachsalespersonhastheresponsibilityforasetgroupofcustomers—the sales sales sales salesterritoryterritoryterritoryterritory.Theterritorystructureallowssalespeopletohaveanin-depthunderstandingofcustomersandtheirneedsthroughfrequentcontacts.Themostcommonwaytoallotterritoriesisgeographically,minimizingtravelandotherfieldexpenses.Ageographic sales forcestructureusuallyissizedaccordingtohowmanycustomersarefoundinagivenarea.Iftheproductlineisdiverseortechnicallycomplex,abetterapproachmaybetostructure sales territoriesbasedondifferentclassesofproductstoenablethe sales forcetoprovidemoreexpertisetoasetofcustomerswithsimilarneeds.Stillanotherstructureisindustryspecialization,inwhichsalespeoplefocusonasingleindustryorasmallnumberofindustries.Puttingasalespersonintothefieldisexpensive,sothenumberofpeopleinthe sales forcehasanimpactonacompany’sprofitability.Determiningtheoptimalnumberofsalespeopleisanimportantdecision.Recruiting,Selecting,&Trainingthe Sales ForceBecausethequalityofa sales forcecanmakeorbreakafirm,atoppriorityfor sales managersistorecruitandselecttherightsetofpeopletodothejob—peoplewhoarestrategicthinkers,whohavetechnicalknowledgepertainingtotheindustry,andwhohaveexcellentinterpersonalskills.Companiesscreenpotentialsalespeopletorevealtheseskills,alongwithusefulinformationaboutinterestsandcapabilities.Pencil-and-papertestscandeterminequantitativeskillsandcompetenceinareasnoteasilyevaluatedthroughinterviews. Sales trainingteachessalespeopleabouttheorganizationanditsproductsandhowtodeveloptherightskills,knowledge,andattitudes.Newsalespeoplemayspendanywherefromafewweeksormonthstoayearormoreintraining.Theaverageinitialtrainingperiodisfourmonths.Then,mostcompaniesprovidecontinuing sales trainingviaseminars, sales meetings,andtheInternetthroughoutthesalesperson’scareer.Compensating,Motivating,andSupervisingthe Sales ForceOnewaytomotivatesalespeopleistopaythemwell,oftentimesbytyingcompensationtoperformance.Astraightcommissionplanisbasedsolelyonapercentageof sales thepersoncloses.Underacommission-with-drawplan,earningsarebasedoncommissionplusaregularpayment,or“draw,”thatmaybechargedagainstfuturecommissionsifcurrent sales areinadequatetocoverthedraw.Withastraightsalarycompensationplan,thesalespersonispaidasetamountregardlessof sales performance.Sometimesstraightsalaryplansareaugmentedbyuseofaquota-bonusplan,inwhichsalespeoplearepaidsalaryplusabonusfor sales aboveanassignedquota.Inadditiontobasiccompensation,manymanagersfindthatavarietyofotherincentivescanalsoenhancethe sales forceefforttremendously.Suchincentivescanrangefromfreevacationstoextracash.Althoughmanysalespeopleliketoworkindependently,supervisionisessentialtoaneffective sales force. Sales managersoftenrequiresalespeopletodevelopmonthly,weekly,ordailycallreports,aplanofactiondetailingwhichcustomerswerecalledonandhowthingswent.Thesereportsallowthe sales managertotrackwhatthesalespeoplearedoinginthefield,andtheyprovidemarketingmanagerswithtimelyinformationaboutcustomers’responses,competitiveactivity,andanychangesinthefirm’scustomerbase.Evaluatingthe Sales ForceThejobof sales managersisnotcompleteuntilthetotaleffortofthe sales forceisevaluated.First,itisimportanttodetermineifthe sales functionismeetingitsquantitativeobjectives.Ifnot,the sales managermustfigureoutthecauses.Individualsalespersonperformanceisnormallymeasuredagainst sales quotasforindividual sales territories,evenwhencompensationplansdonotincludebonusesorcommissionsbasedonquotas.Otherquantitativemeasures,suchasnumberof sales callsand sales reports,mayalsobeusedintheevaluation.Manyfirmsalsoevaluatetheir sales forceonqualitativeindicatorsofperformancesuchassalespersonattitude,productknowledge,andcommunicationskills.Increasingly,asfirmsfocusonrelationshipmanagement,thelevelofcustomersatisfactionisastrongqualitativemeasureofsuperiorsalespersonperformance.Finally,thesalesperson’sexpenseaccountfortravelandentertainment(T&E)maybeconsideredsincethebest sales recordcanmeanlittletoacompany’sbottomlineifthesalespersonisgougingthecompanywithoutrageousexpenses.Note:TheabovelecturenoteswerecompiledbyDavidGerth.Thesematerialsareacompositeofquotations,paraphrases,andideasfromMarketing:RealPeople,RealChoices,Solomon&Stuart,2003,PrenticeHall;ContemporaryMarketing,Boone&Kurtz,2004,Thomson;PrinciplesofMarketing,Kotler&Armstrong,2004,PrenticeHall;andDavidGerth.TheyareonlyintendedforthenoncommercialuseofstudentsinDavidGerth’smarketingclassesforeducationalpurposes.othergroupsaboutmarketingconcernsandcanbeeitherproactiveorreactive.Withproactivemarketingpublicrelations,themarketertakestheinitiativeandseeksoutopportunitiesforpromotingthefirm’sproducts,oftenincludingdistributionofpressreleasesandfeaturearticles.Itisapowerfulmarketingtoolsinceitaddsnewscoveragethatreinforcesdirect promotion activities.Althoughsomepublicityhappensnaturally,moretypicallya“buzz”needstobecreatedbyafirm’spublicists.Reactivemarketingpublicrelationsrespondstoanexternalsituationthathaspotentialnegativeconsequencesfortheorganization.Thegoalinthiscaseistomanagetheflowofinformationtoaddressconcernssothatconsumersdon’tpanicanddistributorsdon’tabandontheproduct.TheInternethasexpandedthecapabilitiesofthetraditionalpublicrelationsfunction.Corporatewebsitesposttestimonialsfromcustomers,makenewproductannouncements,andrespondquicklytoimportantevents.Newsreleasespostedonthecompanywebsitemaydoubleas sales vehicles.TheInternetcanalsobeveryeffectiveinhandlingcompanycrises.WithahostofInternetnewssites,companiescanrespondtoacrisisonlineinfarlesstimethanotherformsofcommunicationsuchaspressreleasesorconferences.PublicPublicPublicPublicRelationsRelationsRelationsRelationsObjectives:Objectives:Objectives:Objectives:Publicrelationsspecialistsneedtooperateatmanylevelstoensurethatvariouspublicsofacompanyreceivecoordinated,positivemessagesaboutthefirm.Thesegroupsincludecustomers,suppliers,employees,themedia,stockholders,andgovernmentregulators.Companiesthatpracticeintegratedmarketingcommunicationstrategiesknowthatpublicrelationsstrategiesarebestusedinconcertwithadvertising, sales promotion, andpersonalsellinginordertosendaconsistentmessagetocustomersandotherstakeholders.AspartofthetotalIMCplan,publicrelationsdepartmentsmayperformanyorallofthefollowingfunctionstoachievecommunicationsobjectives:•PublicAffairs–Buildingandmaintainingnationalorlocalcommunityrelations.•Lobbying–Buildingandmaintainingrelationswithlegislatorsandgovernmentofficialstoinfluencelegislationandregulation.•InvestorRelations–Maintainingrelationshipswithshareholdersandothersinthefinancialcommunity.•Development–Publicrelationswithdonorsormembersofnonprofitorganizationstogainfinancialorvolunteersupport.•LocationPR–Enhancingtheimageofacity,region,orcountry.•PressRelations–Creatingandplacingnewsworthyinformationinthenewsmediatoattractattentiontoapersonorproduct.•ProductPublicity–Publicizingspecificproductstoconsumersaswellasotherorganizations.PublicPublicPublicPublicRelationsRelationsRelationsRelationsTools:Tools:Tools:Tools:Publicrelationsprofessionalsuseseveraltools.Theyuse:•News,•Speeches,•SpecialEvents,•MobileMarketing,•WrittenMaterials,•AudiovisualMaterials,•CorporateIdentityMaterials,and•PublicServiceActivities.Oneofthemajortoolsisnews.PRprofessionalsfindorcreatefavorablenewsabouttheorganizationanditsproductsorpeople.Speechescanalsocreateproductandcompanypublicity.Increasingly,companyexecutivesmustfieldquestionsfromthemediaorgivetalksattradeassociationsor sales meetings.AnothercommonPRtoolisspecialevents,rangingfromnewsconferences,presstours,grandopenings,andfireworksdisplaystolasershows,hotairballoonreleases,multimediapresentationsandstar-studdedspectaculars,andeducationalprogramsdesignedtoreachandinteresttargetpublics.Recently,mobilemarketing—travelingpromotionaltoursthatbringthebrandtoconsumers—hasemergedasaneffectivewaytobuildone-to-onerelationshipswithtargetedconsumers.Publicrelationspeoplealsopreparewrittenmaterialstoreachandinfluencetheirtargetmarkets.Thesematerialsincludeannualreports,brochures,articles,andcompanynewslettersandmagazines.Audiovisualmaterials,suchasfilms,slide-and-soundprograms,andvideo-andaudiocassettes,arebeingusedincreasinglyascommunicationtools.Corporateidentitymaterialscanalsohelpcreateacorporateidentitythatthepublicimmediatelyrecognizes.Logos,stationery,brochures,signs,businessforms,businesscards,buildings,uniforms,andcompanycarsandtrucks—allbecomemarketingtoolswhentheyareattractive,distinctive,andmemorable.Finally,companiescanimprovepublicgoodwillbycontributingmoneyandtimetopublicserviceactivities.PlanningPlanningPlanningPlanningaaaaPublicPublicPublicPublicRelationsRelationsRelationsRelationsCampaign:Campaign:Campaign:Campaign:Apublicrelationscampaignisacoordinatedefforttocommunicatewithoneormoreoftheorganization’spublics.Thisisathree-stepprocessof:1.DevelopingObjectives,2.Executing,and3.Evaluating.TheorganizationmustfirstdevelopclearobjectivesforthePRprogramthatdefinethemessageitwantspeopletohear.ThePRspecialistsmustdevelopacampaignstrategythatincludes:•astatementofobjectives;•asituationanalysis;•specificationoftargetpublics,messagestobecommunicated,andspecificprogramelementstobeused;•atimetableandbudget;and•adiscussionofhowtheprogramwillbeevaluated.Executionofthecampaignmeansdecidingpreciselyhowthemessageshouldbecommunicatedtothetargetedpublicsandimplementingthedecisions.Anorganizationcanuseavarietyofpublicrelationstools:newsconferences,specialevents,writtenmaterials,etc.Oneofthebarrierstogreaterrelianceonpublicrelationscampaignsisthedifficultyencounteredwhentryingtogaugetheireffectiveness.ItispossibletotellifaPRcampaignisgettingmediaexposure,thoughit’smoredifficulttogaugebottom-lineimpact.In-houseassessments,awarenessandpreferenceresearchstudies,andthemeasurementofprintandbroadcastcoveragegeneratedbyPRactivitiesaswellasimpressioncountscanbeusedinthePRcampaignevaluation. Sales Sales Sales Sales Promotion: Promotion: Promotion: Promotion: Sales Sales Sales Sales Promotion Promotion Promotion Promotionistheuseofshort-termincentivestoencouragethepurchaseorsaleofaproduct. Sales promotionsareprogramssuchascontests,coupons,displays,tradeshows,samples,premiums,productdemonstrations,orotherincentivesthatmarketersdesigntobuildinterestinorencouragepurchaseofaproductduringaspecifiedtimeperiod. Sales promotionsareintendedtostimulateimmediateaction,oftenintheformofapurchase,ratherthantobuildlong-termloyalty.Whereasadvertisingandpersonalsellingofferreasonstobuyaproduct, sales promotion offersreasonstobuynow. Sales promotion gearedtomarketingintermediariesiscalledtradetradetradetrade promotion promotion promotion promotion.Companiesactuallyspendaboutasmuchontrade promotion asonadvertisingandconsumer-oriented sales promotion combined.Trade promotion strategiesincludeofferingfreemerchandise,buybackallowances,andmerchandiseallowancesalongwithsponsorshipof sales conteststoencouragewholesalersandretailerstosellmoreofcertainproductsorproductlines. Sales promotion toolsareusedbymostorganizations,includingmanufacturers,distributors,retailers,tradeassociations,andnot-for-profitinstitutions.Theyaretargetedtowardfinalbuyers,retailersandwholesalers,businesscustomers,andmembersofthe sales force.Severalfactorshavecontributedtotherapidgrowthof sales promotion, particularlyinconsumermarkets.First,insidethecompany,productmanagersfacegreaterpressurestoincreasetheircurrent sales; and sales promotion isviewedasaneffectiveshort-run sales tool.Second,externally,thecompanyfacesmorecompetition;andcompetingbrandsarelessdifferentiated.Increasingly,competitorsareusing sales promotion tohelpdifferentiatetheiroffers.Third,advertisingefficiencyhasdeclinedbecauseofrisingcosts,mediaclutter,andlegalconstraints.Finally,consumershavebecomemoredealoriented,andever-largerretailersaredemandingmoredealsfrommanufacturers.Thegrowinguseof sales promotion hasresultedin promotion clutter,similartoadvertisingclutter,however.Consumersareincreasinglytuningout sales promotions,weakeningtheirabilitytotriggerimmediatepurchase.Manufacturersarenowsearchingforwaystoriseabovetheclutter,suchasofferinglargercouponvaluesorcreatingmoredramaticpoint-ofpurchasedisplays. Sales Sales Sales Sales Promotion Promotion Promotion PromotionObjectives:Objectives:Objectives:Objectives: Sales promotion objectivesdifferwidely:•IncreaseShort-Term Sales (consumer promotion) •BuildLong-TermMarketShare(consumer promotion) •EncourageRetailerstoCarryNewItemsandAdditionalInventory(trade promotion) •EncourageRetailerstoAdvertiseandProvideMoreShelfSpace(trade promotion) •EncourageRetailerstoBuyAhead(trade promotion) •Increase Sales ForceSupport (sales force promotion) •IncreaseNumberofNewAccounts (sales force promotion) Sellersmayuseconsumerpromotionstoincreaseshort-term sales ortohelpbuildlong-termmarketshare.Objectivesfortradepromotionsincludegettingretailerstocarrynewitemsandmoreinventory,gettingthemtoadvertisetheproductandgiveitmoreshelfspace,andgettingthemtobuyahead. Sales force promotion objectivesincludegettingmore sales forcesupportforcurrentornewproductsorgettingsalespeopletosignupnewaccounts. Sales promotionsareusuallyusedtogetherwithadvertising,personalselling,orother promotion mixtools.Consumerpromotionsmustusuallybeadvertisedandcanaddexcitementandpullingpowertoads.Tradeand sales forcepromotionssupportthefirm’spersonalsellingprocess.Ingeneral,ratherthancreatingonlyshort-term sales ortemporarybrandswitching, sales promotionsshouldhelptoreinforcetheproduct’spositionandbuildlong-termcustomerrelationships.Increasingly,marketersareavoiding“quickfix,”price-onlypromotionsinfavorofpromotionsdesignedtobuildbrandequity.Consumer-OrientedConsumer-OrientedConsumer-OrientedConsumer-Oriented Sales Sales Sales Sales Promotion: Promotion: Promotion: Promotion: Themainconsumer promotion toolsincludesamples,coupons,cashrefunds,pricepacks,premiums,advertisingspecialties,patronagerewards,point-of-purchasedisplaysanddemonstrations,andcontests,sweepstakes,andgames.Consumer-oriented sales promotionscanbeclassifiedaseitherprice-basedorattention-gettingconsumer promotion. Price-BasedConsumer Promotion Price-basedconsumerpromotionsemphasizeshort-termpricereductionsorrefunds,encouragingconsumerstochooseabrandwhilethedealison.Ifusedtoofrequently,however,consumersbecomeconditionedtopurchasetheproductonlyatthelowerpromotionalprice.CouponsAcouponcouponcouponcouponisacertificatethatgivesbuyersasavingwhentheypurchaseaspecifiedproduct.Couponscanstimulate sales ofamaturebrandorpromoteearlytrialofanewbrand.Redemptionrateshavebeendeclininginrecentyears,however,asaresultofcouponclutter.Mostmajorconsumergoodscompaniesareissuingfewercouponsandtargetingthemmorecarefully.Theyarealsocultivatingnewoutletsfordistributingcoupons,suchassupermarketshelfdispensers,electronicpoint-of-salecouponprinters,or“paperlesscouponsystems.”CashRebateOffersAcashcashcashcashrebaterebaterebaterebateisanoffertorefundpartofthepurchasepriceofaproducttoconsumerswhosenda“proofofpurchase”tothemanufacturer.PricePacksApricepricepricepricepackpackpackpackisareducedpricethatismarkedbytheproducerdirectlyonthelabelorpackage.Pricepackscanbesinglepackagessoldatareducedprice,ortworelatedproductsbandedtogether.Pricepacksareveryeffective—evenmoresothancoupons—instimulatingshort-term sales. PatronageRewardsApatronagepatronagepatronagepatronagerewardrewardrewardrewardiscashorotherawardfortheregularuseofacertaincompany’sproducts.SpecialPacksAspecialspecialspecialspecialpackpackpackpackisapackagethatgivestheshoppermoreproductinsteadofloweringitsprice.Aspecialpackalsocanbeaseparateproductgivenawayalongwithanotherproduct.Attention-GettingConsumer Promotion Attention-gettingconsumerpromotionsstimulateinterestinandpublicityforacompany’sproducts.SamplesAsamplesamplesamplesampleisasmallamountofaproductofferedtoconsumersfortrial.Samplingisthemosteffective—butmostexpensive—waytointroduceanewproduct.About84percentofconsumerpackaged-goodsmarketersusesamplingasapartoftheir promotion strategy.Somesamplesarefree;forothers,companieschargeasmallamounttooffsetitscost.Thesamplemightbedelivereddoor-to-door,sentbymail,handedoutinastore,attachedtoanotherproduct,orfeaturedinanad.Samplescanalsocomewiththemorningnewspaper,inasamplepack,orviatheInternet.PremiumsApremiumpremiumpremiumpremiumisagoodofferedeitherfreeoratlowcostasanincentivetobuyaproduct.Apremiumisnottheproductbeingpromoted.Itisusedasanincentivetoencouragepurchaseofthefeaturedproduct.Apremiummaycomeinsideoroutsidethepackage,orthroughthemail.AdvertisingSpecialtiesAnadvertisingadvertisingadvertisingadvertisingspecialtyspecialtyspecialtyspecialtyisausefularticleimprintedwithanadvertiser’sname,givenasagifttoconsumers.Typicalitemsincludepens,calendars,keyrings,matches,shoppingbags,T-shirts,caps,nailfiles,andcoffeemugs.Inarecentstudy,63percentofallconsumerssurveyedwereeithercarryingorwearinganadspecialtyitem.Morethanthree-quartersofthosewhohadanitemcouldrecalltheadvertiser’snameormessagebeforeshowingtheitemtotheinterviewer.Point-of-Purchase(POP)Promotions ... UnitUnitUnitUnit12:12:12:12:PublicPublicPublicPublicRelations,Relations,Relations,Relations, Sales Sales Sales Sales Promotion, Promotion, Promotion, Promotion, andandandandPersonalPersonalPersonalPersonalSellingSellingSellingSellingPublicPublicPublicPublicRelationsRelationsRelationsRelationsandandandandPublicity:Publicity:Publicity:Publicity:PublicPublicPublicPublicrelationsrelationsrelationsrelationsisanorganization’scommunicationsthatseektobuildgoodrelationshipswithanorganization’spublics,includingconsumers,stockholders,andlegislators.Itincludesobtainingfavorablepublicity,buildingupagood“corporateimage,”andhandlingorheadingoffunfavorablerumors,stories,andevents.PublicityPublicityPublicityPublicityisunpaidcommunicationaboutanorganizationthatappearsinthemassmedia.Publicrelationsmayconsistofwritingpressreleases,holdingspecialevents,conductingandpublishingconsumersurveysaboutaproductorthecompany,andeffortstoputapositivespinonnegativecompanynews.Unlike sales promotions,publicrelationsactivitiesdonotusuallyseekashort-termincreasein sales. Instead,theytrytocraftalong-termpositiveimagefortheproductortheorganization.Comparedwithpersonalselling,advertising,and sales promotions,expendituresforpublicrelationsareusuallylowinmostorganizations.Sincecompaniesdonotpayforpublicity,theyhavelesscontroloverthepublicationofgoodorbadcompanynews.Butthisoftenmeansthatconsumersfindthistypeofnewssourcemorebelievablethaniftheinformationweredisseminateddirectlybythecompany.MarketingMarketingMarketingMarketingandandandandNonmarketingNonmarketingNonmarketingNonmarketingPublicPublicPublicPublicRelations:Relations:Relations:Relations:Thebasicruleofpublicrelationsistodosomethinggoodandthentalkaboutit.Publicrelationsiscrucialtoanorganization’sabilitytoestablishandmaintainafavorableimage.NonmarketingNonmarketingNonmarketingNonmarketingpublicpublicpublicpublicrelationsrelationsrelationsrelationsreferstoacompany’smessagesaboutgeneralmanagementissues.Whenacompanymakesadecisionthataffectsanyofitspublics,inputfrompublicrelationsspecialistscanhelptosmoothitsdealingswiththosepublics.Acompany,forexample,thatdecidestocloseaplantwouldneedadviceonhowtodealwiththelocalcommunity.Otherexamplesincludeacompany’sattemptstogainfavorablepublicopinionduringalongstrikeoranopenlettertoCongresspublishedinanewspaperduringcongressionaldebatesonabillthatwouldaffectaparticularindustry.MarketingMarketingMarketingMarketingpublicpublicpublicpublicrelationsrelationsrelationsrelationsreferstonarrowlyfocusedpublicrelationsactivitiesthatdirectlysupportmarketinggoals.Marketingpublicrelationsinvolvesanorganization’srelationshipswithconsumersorAllowancesAnallowanceallowanceallowanceallowanceispromotionalmoneypaidbymanufacturerstoretailersinreturnforanagreementtofeaturethemanufacturer’sproductsinsomeway.Anadvertisingallowancecompensatesretailersforadvertisingtheproduct.Adisplayallowancecompensatesthemforusingspecialdisplays.ConventionsandTradeShowsManycompaniesandtradeassociationsorganizeconventionsandtradeshowstopromotetheirproducts.Firmssellingtotheindustryshowtheirproductsatthetradetradetradetradeshowshowshowshow.Atradetradetradetradeshowshowshowshowisaneventatwhichmanycompaniessetupelaborateexhibitstoshowtheirproducts,giveawaysamples,distributeproductliterature,andtrollfornewbusinesscontacts.Tradeshowsaremajorvehiclesformanufacturerstoshowofftheirproductlinestowholesalersandretailers.Morethan4,300tradeshowstakeplaceeveryyear,drawingasmanyas85millionpeople.Vendorsreceivemanybenefits,suchasopportunitiestofindnew sales leads,contactcustomers,introducenewproducts,meetnewcustomers,sellmoretopresentcustomers,andeducatecustomerswithpublicationsandaudiovisualmaterials.Tradeshowsalsohelpcompaniesreachmanyprospectsnotreachedthroughtheir sales forces.About90percentofatradeshow’svisitorsseeacompany’ssalespeopleforthefirsttimeattheshow.Businessmarketersmayspendasmuchas35percentoftheirannual promotion budgetsontradeshows.OtherProgramsManufacturersmayofferfreefreefreefreegoodsgoodsgoodsgoods,whichareextracasesofmerchandise,toresellerswhobuyacertainquantityorwhofeatureacertainflavororsize.Theymayofferpushpushpushpushmoneymoneymoneymoney—cashorgiftstodealersortheir sales forcesto“push”themanufacturer’sgoods.Mostretailersalsochargemanufacturersslottingslottingslottingslottingfeesfeesfeesfees—paymentsdemandedbyretailersbeforetheywillacceptnewproductsandfind“slots”forthemontheshelves.Manufacturersmayalsogiveretailersfreespecialtyspecialtyspecialtyspecialtyadvertisingadvertisingadvertisingadvertisingitemsitemsitemsitemsthatcarrythecompany’sname,suchaspens,pencils,calendars,paperweights,matchbooks,memopads,andyardsticks.Formoreexpensiveandhighlycomplexproducts,manufacturersoftenprovidespecializedspecializedspecializedspecializedtrainingtrainingtrainingtrainingforretailsalespeople.Thisbackgroundhelpssalespeopleexplainfeatures,competitiveadvantages,andotherinformationtoconsumers.Trainingcanbeprovidedinseveralways:Amanufacturer’s sales representativecanconducttrainingsessionsduringregular sales calls,orthefirmcandistribute sales literatureandvideocassettes. Sales Sales Sales SalesForceForceForceForce Promotion: Promotion: Promotion: Promotion: Sales force promotion isdirectedatthecompany’sown sales force(oftentimesthemanufacturer’s sales force)—ratherthanabusinesscustomer’s sales forcewhichisinthedistributionchannel,suchasaretailer’s sales force.Contests,forexample,couldbeusedtourgethe sales forcetoincreasetheirefforts,withprizesgoingtothetopperformers.A sales sales sales salescontestcontestcontestcontestisacontestforsalespeopletomotivatethemtoincreasetheir sales performanceoveragivenperiod. Sales contestsmotivateandrecognizegoodcompanyperformers,whomayreceivetrips,cashprizes,orothergifts. Sales contestsworkbestwhentheyaretiedtomeasurableandachievable sales objectives.Otherincentivescouldalsobeprovidedtoencouragethe sales forcetoincreasenewaccountsinadditiontoboosting sales. PersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:PersonalPersonalPersonalPersonalsellingsellingsellingsellingispromotionalpresentationbythefirm’s sales forceconductedonaperson-to-personbasiswiththebuyerforthepurposeofmaking sales andbuildingcustomerrelationships.Personalsellingistheoldestformof promotion. Thisdirectformof promotion maybeconductedface-to-face,overthetelephone,throughvideoconferencing,orthroughinteractivecomputerlinksbetweenthebuyerandtheseller.Thisdirectcontactwiththecustomergivesthesalespersontheopportunitytobeflexibleandmodifythe sales messagetocoincidewiththecustomer’sneeds.Thesalespersoncangetimmediatefeedbackfromthecustomer.Thisformof promotion hasahighcostpercontactwiththecustomer.Theaverage sales callcostsabout$300.Itisdifficulttoensureconsistencyofmessagewhenitisdeliveredbymanydifferentcompanyrepresentatives.Thecredibilityofsalespeopleoftendependsonthequalityoftheircompany’simage,whichhasbeencreatedbyother promotion strategies.About14millionpeopleintheU.S.areemployedinpersonalselling.Today,mostsalespeoplearewell-educated,well-trainedprofessionalswhoworktobuildandmaintainlong-termcustomerrelationshipsbylisteningtotheircustomers,assessingcustomerneeds,andorganizingthecompany’seffortstosolvecustomerproblems.Thetermsalespersoncoversawiderangeofpositions.Atoneextreme,asalespersonmightbelargelyanordertaker,suchasadepartmentstoresalespersonstandingbehindacounter.Attheotherextremeareordergetters,whosepositionsdemandthecreativesellingofproductsrangingfromappliances,industrialequipment,andairplanestoinsurance,advertising,andinformationtechnologyservices.TheTheTheTheRoleRoleRoleRoleofofofofPersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:Generally,apersonal sales effortismoreimportantwhenafirmengagesinapushstrategy,inwhichthegoalistopushtheproductthroughthedistributionchannelsothatitisavailabletoconsumers.PersonalsellingalsoislikelytobecrucialinB2Bcontextswhendirectinteractionwithupper-levelmanagementisrequiredtosecureanimportantsale—andoftenwhenintensepricenegotiationsoccurbeforethesaleismade.Inaddition,inexperiencedbuyersmayneedthehands-onassistancethataprofessionalsalespersoncanprovide.Firmssellingproductsthatconsumersbuyinfrequently,suchascomputers,lawnmowers,andcollegeeducations,oftenrelyheavilyonpersonalselling,asdofirmssellingcomplexorveryexpensiveproductsthatneedasalespersontoexplain,justify,andsellthem.Personalselling,however,hassomedisadvantagesthatlimittheroleplayedbypersonalsellinginthe promotion mix.First,whenthedollaramountofindividualpurchasesislow,itisn’teconomicallyfeasibletousepersonalselling.Thecostpercontactwithacustomerishighcomparedtootherformsofcommunication,suchasadvertising.Salespeoplecanalsoonlymakealimitednumberof sales callsaday.Relianceonpersonalsellingiseffectiveonlywhenthesuccessratioisatitshighest.Becausethecostofutilizingsalespeopleishigh,telemarketingisgrowinginpopularity.Thetypesofsalespeopleandtheirfunctionsvaryconsiderably.Thepersonwhoprocessesacomputerpurchaseoverthephoneisanorderorderorderordertakertakertakertaker,asalespersonwhoseprimaryfunctionistofacilitatetransactionsthatthecustomerinitiates.Ordertakersincludebothinsideandoutsidesalespeople.Mostretailsalespeopleareinsideordertakers,butoftenwholesalers,dealers,anddistributorsemploysalespeopletowaitoncustomers.Incontrast,acomputertechnicianisatechnicaltechnicaltechnicaltechnicalspecialistspecialistspecialistspecialist,a sales supportpersonwithahighleveloftechnicalexpertisewhoassistsinproductdemonstrations,recommendationsforcomplexequipment,andsetupofmachinery.Thetechnicalspecialist’sjobistoprovide sales supportratherthanactuallyclosingthesale.Thetechnicalspecialistpromotesthefirmandtriestostimulatedemandforaproducttomakeiteasierforcolleaguestoactuallymakethesale.Sometimesapersonwhosejobistolaythegroundworkisknownasamissionarymissionarymissionarymissionarysalespersonsalespersonsalespersonsalesperson.Thisisasalespersonwhopromotesthefirmandtriestostimulatedemandforaproduct,butdoesnotactuallycompleteasale.Manyfirmsfindthatthesellingfunctionisbesthandledbyteamteamteamteamsellingsellingsellingselling,usingteamsofpeoplefrom sales, marketing,engineering,finance,technicalsupport,andevenuppermanagementtoservicelarge,complexaccounts.Finally,thepersonwhoactuallyconvincesthecustomertobuyisanorderorderorderordergettergettergettergetter,asalespersonwhoworkscreativelytodeveloprelationshipswithcustomersortogeneratenew sales. ApproachesApproachesApproachesApproachestotototoPersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:Personalsellingisoneoftheoldestformsof promotion, butitsimagehasbeentarnishedbysmooth-talkingpitchmenwhohavesometimessaidanythingtomakeasale.Inmorerecentyears,personalsellinghasbeguntoredeemitselfasaprofessionandhasmovedfromatransactional,hard-selltechniquetoarelationshipmarketingapproach.TransactionalMarketingThehardsellisahigh-pressureprocess.Hard-selltacticsareaformoftransactionaltransactionaltransactionaltransactionalsellingsellingsellingselling,aformofpersonalsellingthatfocusesonmakinganimmediatesalewithlittleornoattempttodeveloparelationshipwiththecustomer.Ascustomers,thehardsellmakesusfeelmanipulatedandresentful.Thistechniquealsocontributestothenegativeimagemanyofushaveofobnoxioussalespeople.RelationshipMarketingToday’sprofessionalsalespersonismorelikelytopracticerelationshiprelationshiprelationshiprelationshipsellingsellingsellingselling,aformofpersonalsellinginwhichthesalespersonseekstodevelopamutuallysatisfyingrelationshipwiththeconsumer.Relationshipsellinginvolveswinning,keeping,anddevelopingcustomers.Winningacustomermeansconvertinganinterestedprospectintosomeonewhoisconvincedthattheproductholdsvalueforhimorher.Keepingacustomermeansensuringthatthecustomergetswhatheorshepaidfor.Developingacustomermeanssatisfyingthecustomersothatheorshewillbecountedontoprovidefuturebusiness.Theprofessionalsalespersonwhogenuinelyadherestotheprinciplesofrelationshipmarketingisarelationshipbuilderandacustomerproblemsolver.TheTheTheTheCreativeCreativeCreativeCreativeSellingSellingSellingSellingProcess:Process:Process:Process:Sellingisseldomboring.Everycustomer,every sales call,andeverysalespersonareunique.Somesalespeoplearesuccessfulprimarilybecausetheyknowsomuchaboutwhattheysell.Othersaresuccessfulbecausetheyhavebuiltstrongrelationshipswithcustomerswholookforwardtotheirvisits.Mostsalespeopleunderstandandengageinaseriesofactivitiesnecessarytobringaboutatransaction.Complexorexpensive sales requirecarefulplanning,andsuccessfulsellinginthesecasesismorelikelyifthesalespersonundergoesasystematicseriesofstepsknownasthecreativecreativecreativecreativesellingsellingsellingsellingprocessprocessprocessprocess.Thesestepsrequirethesalespersontoseekoutcustomers,analyzetheirneeds,determinehowproductattributesprovidebenefits,andthendecidehowbesttocommunicatethistotheprospects.Thestepsintheprocessincludeprospecting,qualifying,preapproach,approach, sales presentation,demonstration,handlingobjections,closing,andfollow-up.ProspectingProspectingProspectingProspectingProspectingisthestepofthesellingprocessthatincludesidentifyinganddevelopingalistofpotentialorprospectivecustomers.Prospectsor sales leadscancomefromexistingcustomerlists,telephonedirectories,orcommerciallyavailabledatabases.Sometimescompaniesgenerate sales leadsthroughtheiradvertisingor sales promotionsbylettingcustomersrequestmoreinformation.Onewaytogenerateleadsisthroughcoldcalling,whenthesalespersoncontactsprospectswithoutpriorintroductionorarrangement.Salespeoplealsorelyonreferrals.Currentclientswhoaresatisfiedwiththeirpurchaseoftengivereferrals.QualifyingSalespeoplenextneedtoqualifyqualifyqualifyqualifytheirprospectsprospectsprospectsprospects,thestepofthesellingprocessthatdetermineshowlikelyprospectsaretobecomecustomers.Prospectscanbequalifiedbylookingattheirfinancialability,volumeofbusiness,specialneeds,location,andpossibilitiesforgrowth.PreapproachThepreapproachpreapproachpreapproachpreapproachisthestepinthesellingprocessinwhichthesalespersonlearnsasmuchaspossibleaboutaprospectivecustomerbeforemakinga sales call.Salespeopletrytolearnasmuchaspossibleaboutqualifiedprospectsearlyon.Theymayprobepriorpurchasehistory,currentneeds,orinformationabouttheirinterests.Thesalespersoncanconsultindustryandonlinesources,acquaintances,etc.tolearnabouttheprospect.Anothertaskistodecideonthebestapproach,whichmightbeapersonalvisit,aphonecall,oraletter.Thebesttimingshouldbeconsideredcarefullybecausemanyprospectsarebusiestatcertaintimes.Finally,thesalespersonshouldgivethoughttoanoverall sales strategyfortheaccount.ApproachTheapproachapproachapproachapproachisthestepinthesellingprocessinwhichthesalespersonusuallymeetsthecustomerforthefirsttime.Heorsheshouldstartbuildingtherelationshipduringtheapproach.Thesalespersonshouldknowhowtomeetandgreettheprospectandgettherelationshipofftoagoodstart.Thisstepinvolvesthesalesperson’sappearance,openinglines,andthefollow-upremarks.Theopeninglinesshouldbepositivetobuildgoodwillfromthebeginningoftherelationship.Ifthesalespersonmadecontactwiththeprospectthroughareferral,thesalespersonshouldprobablysaysoup-front.Thisopeningmightbefollowedbysomekeyquestionstolearnmoreaboutthecustomer’sneedsorbyshowingadisplayorsampletoattracttheprospect’sattentionandcuriosity.Asinallstagesofthesellingprocess,listeningtothecustomeriscrucial. Sales PresentationThe sales sales sales salespresentationpresentationpresentationpresentationisthestepinthesellingprocessinwhichthesalespersonseekstopersuasivelycommunicatetheproduct’sfeaturesandthebenefitsitwillprovideafterthesale.Proofstatements,suchasdataonpast sales, testimonials,guarantees,orresearchresults,helptomakethesalesperson’spresentationcredible.Some sales presentationsarecanned,meaningascripthasbeenwritteninadvance,andthesamemessageisdeliveredtomanyprospects.Thistechniqueoftenprovidesaseriesofverbalpromptstowhichthereareexpectedcustomerresponses.Asimilarapproachcalledaformulatedapproachidentifiesaprospect’sneedsandthenprovidesascripted sales pitchkeyedtothatkindofprospect.Thesestandardizedapproachesworkfineinsomecases,butthemosteffective sales presentationsarethosethataretailoredtothespecificcustomer.Increasingly, sales presentationsaregoinghigh-tech.Computer-basedmultimediapresentationsareconsideredthenextwavein sales- forceautomation.Withamultimedia-readynotebookcomputerorLCDprojectioncomputer,salespeoplecanbringcolor,animation,video,audio,andinteractivity—aswellasthelatestproductandpricinginformation—totheirpresentations.DemonstrationOneimportantadvantageofpersonalsellingovermostadvertisingistheabilityofsalespeopletoprovideademonstrationdemonstrationdemonstrationdemonstrationoftheproducttothepotentialbuyer.Manyfirmsusenewtechnologiestomaketheirdemonstrationsmoreeffective.Multimediainteractivedemonstrationsarenowcommon.Thekeytoagooddemonstration—onethatgainsthecustomer’sattention,keepshisorherinterest,isconvincing,andstaysinthecustomer’smemory—isplanning.Thesalespersonshouldcheckandrecheckallaspectsofthedemonstrationpriortoitsdelivery.HandlingObjectionsHandlingHandlingHandlingHandlingobjectionsobjectionsobjectionsobjectionsisthestepinthesellingprocessinwhichthesalespersonseeksout,clarifies,andovercomescustomerobjectionstobuying.Customersalmostalwayshaveobjectionsduringthepresentationorwhenaskedtoplaceanorder.Theproblemcanbeeitherlogicalorpsychological,andobjectionsareoftentimesunspoken.Thesalespersonshouldhandleobjectionsusingapositiveapproach,byseekingouthiddenobjections,askingtheprospecttoclarifyanyobjections,andtakingobjectionsasopportunitiestoprovidemoreinformation—turningtheobjectionsintoreasonsforbuying.Everysalespersonneedstrainingintheskillsofhandlingobjections.ClosingClosingClosingClosingClosingisthestepinthesellingprocessinwhichthesalespersonasksthecustomerforanorder.Somesalespeopledonotgetaroundtoclosingordonothandleitwell.Theymaylackconfidence,feelguiltyaboutaskingfortheorder,orfailtorecognizetherightmomenttoclosethesale.Salespeopleshouldknowhowtorecognizeclosingsignalsfromthebuyer,includingbodylanguage,comments,andquestions.Salespeoplecanuseseveralclosingtechniques.Theycanaskfortheorder,reviewpointsofagreement,offertohelpwriteuptheorder,askwhethertheybuyerwantsthismodelorthatone,ornotethatthebuyerwillloseoutiftheorderisnotplacednow.Thesalespersonmayalsoofferthebuyerspecialreasonstoclose,suchasalowerpriceoranextraquantityatnocharge.Follow-UpFollow-upFollow-upFollow-upFollow-upisthelaststepinthesellingprocess,inwhichthesalespersonfollowsupafterthesaletoensurecustomersatisfactionandrepeatbusiness.Rightafterclosing,thesalespersonshouldcompleteanydetailsondeliverytime,purchaseterms,andothermatters.Thesalespersonthenshouldscheduleafollow-upcallwhentheinitialorderisreceived,tomakesurethereisproperinstallation,instruction,and/orservicing.Thisvisitshouldrevealanyproblems,assurethebuyerofthesalesperson’sinterest,andreduceanybuyerconcernsthatmighthavearisensincethesale.Follow-upalsoallowsthesalespersontobridgetothenextpurchase.Oncearelationshipdevelops,thesellingprocessisonlythebeginning.Evenasonecycleofpurchasingdrawstoaclose,agoodsalespersonisalreadylayingthefoundationforthenextone. Sales Sales Sales SalesManagement:Management:Management:Management: Sales Sales Sales Salesmanagementmanagementmanagementmanagementistheprocessofplanning,implementing,andcontrollingthepersonalsellingfunctionofanorganization.Personalsellingisateameffortthatrequirescarefulplanningandsalespeopleinthefieldwhenandwherecustomersneedthem. Sales ForceObjectives Sales forceobjectivesstatewhatthe sales forceisexpectedtoaccomplishandwhen.Thesegoalscouldincludeacquiringnewcustomers,generatingspecificamountsof sales volume,reducing sales expenses,improvingcustomersatisfaction,gatheringnew-productsuggestions,traininggoals,andcommunityinvolvementgoals. Sales managersalsoworkwiththeirsalespeopletodevelopindividualgoals.Performancegoalsaremeasurableoutcomes,suchastotal sales andtotalprofitspersalesperson.Behavioralgoalsspecifyactionssalespeoplemustaccomplish,suchasthenumberofprospectstoidentify,thenumberof sales calls,andthenumberof sales presentations. Sales ForceStrategyA sales forcestrategyspecifiesthestructureandsizeofafirm’s sales force.Eachsalespersonhastheresponsibilityforasetgroupofcustomers—the sales sales sales salesterritoryterritoryterritoryterritory.Theterritorystructureallowssalespeopletohaveanin-depthunderstandingofcustomersandtheirneedsthroughfrequentcontacts.Themostcommonwaytoallotterritoriesisgeographically,minimizingtravelandotherfieldexpenses.Ageographic sales forcestructureusuallyissizedaccordingtohowmanycustomersarefoundinagivenarea.Iftheproductlineisdiverseortechnicallycomplex,abetterapproachmaybetostructure sales territoriesbasedondifferentclassesofproductstoenablethe sales forcetoprovidemoreexpertisetoasetofcustomerswithsimilarneeds.Stillanotherstructureisindustryspecialization,inwhichsalespeoplefocusonasingleindustryorasmallnumberofindustries.Puttingasalespersonintothefieldisexpensive,sothenumberofpeopleinthe sales forcehasanimpactonacompany’sprofitability.Determiningtheoptimalnumberofsalespeopleisanimportantdecision.Recruiting,Selecting,&Trainingthe Sales ForceBecausethequalityofa sales forcecanmakeorbreakafirm,atoppriorityfor sales managersistorecruitandselecttherightsetofpeopletodothejob—peoplewhoarestrategicthinkers,whohavetechnicalknowledgepertainingtotheindustry,andwhohaveexcellentinterpersonalskills.Companiesscreenpotentialsalespeopletorevealtheseskills,alongwithusefulinformationaboutinterestsandcapabilities.Pencil-and-papertestscandeterminequantitativeskillsandcompetenceinareasnoteasilyevaluatedthroughinterviews. Sales trainingteachessalespeopleabouttheorganizationanditsproductsandhowtodeveloptherightskills,knowledge,andattitudes.Newsalespeoplemayspendanywherefromafewweeksormonthstoayearormoreintraining.Theaverageinitialtrainingperiodisfourmonths.Then,mostcompaniesprovidecontinuing sales trainingviaseminars, sales meetings,andtheInternetthroughoutthesalesperson’scareer.Compensating,Motivating,andSupervisingthe Sales ForceOnewaytomotivatesalespeopleistopaythemwell,oftentimesbytyingcompensationtoperformance.Astraightcommissionplanisbasedsolelyonapercentageof sales thepersoncloses.Underacommission-with-drawplan,earningsarebasedoncommissionplusaregularpayment,or“draw,”thatmaybechargedagainstfuturecommissionsifcurrent sales areinadequatetocoverthedraw.Withastraightsalarycompensationplan,thesalespersonispaidasetamountregardlessof sales performance.Sometimesstraightsalaryplansareaugmentedbyuseofaquota-bonusplan,inwhichsalespeoplearepaidsalaryplusabonusfor sales aboveanassignedquota.Inadditiontobasiccompensation,manymanagersfindthatavarietyofotherincentivescanalsoenhancethe sales forceefforttremendously.Suchincentivescanrangefromfreevacationstoextracash.Althoughmanysalespeopleliketoworkindependently,supervisionisessentialtoaneffective sales force. Sales managersoftenrequiresalespeopletodevelopmonthly,weekly,ordailycallreports,aplanofactiondetailingwhichcustomerswerecalledonandhowthingswent.Thesereportsallowthe sales managertotrackwhatthesalespeoplearedoinginthefield,andtheyprovidemarketingmanagerswithtimelyinformationaboutcustomers’responses,competitiveactivity,andanychangesinthefirm’scustomerbase.Evaluatingthe Sales ForceThejobof sales managersisnotcompleteuntilthetotaleffortofthe sales forceisevaluated.First,itisimportanttodetermineifthe sales functionismeetingitsquantitativeobjectives.Ifnot,the sales managermustfigureoutthecauses.Individualsalespersonperformanceisnormallymeasuredagainst sales quotasforindividual sales territories,evenwhencompensationplansdonotincludebonusesorcommissionsbasedonquotas.Otherquantitativemeasures,suchasnumberof sales callsand sales reports,mayalsobeusedintheevaluation.Manyfirmsalsoevaluatetheir sales forceonqualitativeindicatorsofperformancesuchassalespersonattitude,productknowledge,andcommunicationskills.Increasingly,asfirmsfocusonrelationshipmanagement,thelevelofcustomersatisfactionisastrongqualitativemeasureofsuperiorsalespersonperformance.Finally,thesalesperson’sexpenseaccountfortravelandentertainment(T&E)maybeconsideredsincethebest sales recordcanmeanlittletoacompany’sbottomlineifthesalespersonisgougingthecompanywithoutrageousexpenses.Note:TheabovelecturenoteswerecompiledbyDavidGerth.Thesematerialsareacompositeofquotations,paraphrases,andideasfromMarketing:RealPeople,RealChoices,Solomon&Stuart,2003,PrenticeHall;ContemporaryMarketing,Boone&Kurtz,2004,Thomson;PrinciplesofMarketing,Kotler&Armstrong,2004,PrenticeHall;andDavidGerth.TheyareonlyintendedforthenoncommercialuseofstudentsinDavidGerth’smarketingclassesforeducationalpurposes.othergroupsaboutmarketingconcernsandcanbeeitherproactiveorreactive.Withproactivemarketingpublicrelations,themarketertakestheinitiativeandseeksoutopportunitiesforpromotingthefirm’sproducts,oftenincludingdistributionofpressreleasesandfeaturearticles.Itisapowerfulmarketingtoolsinceitaddsnewscoveragethatreinforcesdirect promotion activities.Althoughsomepublicityhappensnaturally,moretypicallya“buzz”needstobecreatedbyafirm’spublicists.Reactivemarketingpublicrelationsrespondstoanexternalsituationthathaspotentialnegativeconsequencesfortheorganization.Thegoalinthiscaseistomanagetheflowofinformationtoaddressconcernssothatconsumersdon’tpanicanddistributorsdon’tabandontheproduct.TheInternethasexpandedthecapabilitiesofthetraditionalpublicrelationsfunction.Corporatewebsitesposttestimonialsfromcustomers,makenewproductannouncements,andrespondquicklytoimportantevents.Newsreleasespostedonthecompanywebsitemaydoubleas sales vehicles.TheInternetcanalsobeveryeffectiveinhandlingcompanycrises.WithahostofInternetnewssites,companiescanrespondtoacrisisonlineinfarlesstimethanotherformsofcommunicationsuchaspressreleasesorconferences.PublicPublicPublicPublicRelationsRelationsRelationsRelationsObjectives:Objectives:Objectives:Objectives:Publicrelationsspecialistsneedtooperateatmanylevelstoensurethatvariouspublicsofacompanyreceivecoordinated,positivemessagesaboutthefirm.Thesegroupsincludecustomers,suppliers,employees,themedia,stockholders,andgovernmentregulators.Companiesthatpracticeintegratedmarketingcommunicationstrategiesknowthatpublicrelationsstrategiesarebestusedinconcertwithadvertising, sales promotion, andpersonalsellinginordertosendaconsistentmessagetocustomersandotherstakeholders.AspartofthetotalIMCplan,publicrelationsdepartmentsmayperformanyorallofthefollowingfunctionstoachievecommunicationsobjectives:•PublicAffairs–Buildingandmaintainingnationalorlocalcommunityrelations.•Lobbying–Buildingandmaintainingrelationswithlegislatorsandgovernmentofficialstoinfluencelegislationandregulation.•InvestorRelations–Maintainingrelationshipswithshareholdersandothersinthefinancialcommunity.•Development–Publicrelationswithdonorsormembersofnonprofitorganizationstogainfinancialorvolunteersupport.•LocationPR–Enhancingtheimageofacity,region,orcountry.•PressRelations–Creatingandplacingnewsworthyinformationinthenewsmediatoattractattentiontoapersonorproduct.•ProductPublicity–Publicizingspecificproductstoconsumersaswellasotherorganizations.PublicPublicPublicPublicRelationsRelationsRelationsRelationsTools:Tools:Tools:Tools:Publicrelationsprofessionalsuseseveraltools.Theyuse:•News,•Speeches,•SpecialEvents,•MobileMarketing,•WrittenMaterials,•AudiovisualMaterials,•CorporateIdentityMaterials,and•PublicServiceActivities.Oneofthemajortoolsisnews.PRprofessionalsfindorcreatefavorablenewsabouttheorganizationanditsproductsorpeople.Speechescanalsocreateproductandcompanypublicity.Increasingly,companyexecutivesmustfieldquestionsfromthemediaorgivetalksattradeassociationsor sales meetings.AnothercommonPRtoolisspecialevents,rangingfromnewsconferences,presstours,grandopenings,andfireworksdisplaystolasershows,hotairballoonreleases,multimediapresentationsandstar-studdedspectaculars,andeducationalprogramsdesignedtoreachandinteresttargetpublics.Recently,mobilemarketing—travelingpromotionaltoursthatbringthebrandtoconsumers—hasemergedasaneffectivewaytobuildone-to-onerelationshipswithtargetedconsumers.Publicrelationspeoplealsopreparewrittenmaterialstoreachandinfluencetheirtargetmarkets.Thesematerialsincludeannualreports,brochures,articles,andcompanynewslettersandmagazines.Audiovisualmaterials,suchasfilms,slide-and-soundprograms,andvideo-andaudiocassettes,arebeingusedincreasinglyascommunicationtools.Corporateidentitymaterialscanalsohelpcreateacorporateidentitythatthepublicimmediatelyrecognizes.Logos,stationery,brochures,signs,businessforms,businesscards,buildings,uniforms,andcompanycarsandtrucks—allbecomemarketingtoolswhentheyareattractive,distinctive,andmemorable.Finally,companiescanimprovepublicgoodwillbycontributingmoneyandtimetopublicserviceactivities.PlanningPlanningPlanningPlanningaaaaPublicPublicPublicPublicRelationsRelationsRelationsRelationsCampaign:Campaign:Campaign:Campaign:Apublicrelationscampaignisacoordinatedefforttocommunicatewithoneormoreoftheorganization’spublics.Thisisathree-stepprocessof:1.DevelopingObjectives,2.Executing,and3.Evaluating.TheorganizationmustfirstdevelopclearobjectivesforthePRprogramthatdefinethemessageitwantspeopletohear.ThePRspecialistsmustdevelopacampaignstrategythatincludes:•astatementofobjectives;•asituationanalysis;•specificationoftargetpublics,messagestobecommunicated,andspecificprogramelementstobeused;•atimetableandbudget;and•adiscussionofhowtheprogramwillbeevaluated.Executionofthecampaignmeansdecidingpreciselyhowthemessageshouldbecommunicatedtothetargetedpublicsandimplementingthedecisions.Anorganizationcanuseavarietyofpublicrelationstools:newsconferences,specialevents,writtenmaterials,etc.Oneofthebarrierstogreaterrelianceonpublicrelationscampaignsisthedifficultyencounteredwhentryingtogaugetheireffectiveness.ItispossibletotellifaPRcampaignisgettingmediaexposure,thoughit’smoredifficulttogaugebottom-lineimpact.In-houseassessments,awarenessandpreferenceresearchstudies,andthemeasurementofprintandbroadcastcoveragegeneratedbyPRactivitiesaswellasimpressioncountscanbeusedinthePRcampaignevaluation. Sales Sales Sales Sales Promotion: Promotion: Promotion: Promotion: Sales Sales Sales Sales Promotion Promotion Promotion Promotionistheuseofshort-termincentivestoencouragethepurchaseorsaleofaproduct. Sales promotionsareprogramssuchascontests,coupons,displays,tradeshows,samples,premiums,productdemonstrations,orotherincentivesthatmarketersdesigntobuildinterestinorencouragepurchaseofaproductduringaspecifiedtimeperiod. Sales promotionsareintendedtostimulateimmediateaction,oftenintheformofapurchase,ratherthantobuildlong-termloyalty.Whereasadvertisingandpersonalsellingofferreasonstobuyaproduct, sales promotion offersreasonstobuynow. Sales promotion gearedtomarketingintermediariesiscalledtradetradetradetrade promotion promotion promotion promotion.Companiesactuallyspendaboutasmuchontrade promotion asonadvertisingandconsumer-oriented sales promotion combined.Trade promotion strategiesincludeofferingfreemerchandise,buybackallowances,andmerchandiseallowancesalongwithsponsorshipof sales conteststoencouragewholesalersandretailerstosellmoreofcertainproductsorproductlines. Sales promotion toolsareusedbymostorganizations,includingmanufacturers,distributors,retailers,tradeassociations,andnot-for-profitinstitutions.Theyaretargetedtowardfinalbuyers,retailersandwholesalers,businesscustomers,andmembersofthe sales force.Severalfactorshavecontributedtotherapidgrowthof sales promotion, particularlyinconsumermarkets.First,insidethecompany,productmanagersfacegreaterpressurestoincreasetheircurrent sales; and sales promotion isviewedasaneffectiveshort-run sales tool.Second,externally,thecompanyfacesmorecompetition;andcompetingbrandsarelessdifferentiated.Increasingly,competitorsareusing sales promotion tohelpdifferentiatetheiroffers.Third,advertisingefficiencyhasdeclinedbecauseofrisingcosts,mediaclutter,andlegalconstraints.Finally,consumershavebecomemoredealoriented,andever-largerretailersaredemandingmoredealsfrommanufacturers.Thegrowinguseof sales promotion hasresultedin promotion clutter,similartoadvertisingclutter,however.Consumersareincreasinglytuningout sales promotions,weakeningtheirabilitytotriggerimmediatepurchase.Manufacturersarenowsearchingforwaystoriseabovetheclutter,suchasofferinglargercouponvaluesorcreatingmoredramaticpoint-ofpurchasedisplays. Sales Sales Sales Sales Promotion Promotion Promotion PromotionObjectives:Objectives:Objectives:Objectives: Sales promotion objectivesdifferwidely:•IncreaseShort-Term Sales (consumer promotion) •BuildLong-TermMarketShare(consumer promotion) •EncourageRetailerstoCarryNewItemsandAdditionalInventory(trade promotion) •EncourageRetailerstoAdvertiseandProvideMoreShelfSpace(trade promotion) •EncourageRetailerstoBuyAhead(trade promotion) •Increase Sales ForceSupport (sales force promotion) •IncreaseNumberofNewAccounts (sales force promotion) Sellersmayuseconsumerpromotionstoincreaseshort-term sales ortohelpbuildlong-termmarketshare.Objectivesfortradepromotionsincludegettingretailerstocarrynewitemsandmoreinventory,gettingthemtoadvertisetheproductandgiveitmoreshelfspace,andgettingthemtobuyahead. Sales force promotion objectivesincludegettingmore sales forcesupportforcurrentornewproductsorgettingsalespeopletosignupnewaccounts. Sales promotionsareusuallyusedtogetherwithadvertising,personalselling,orother promotion mixtools.Consumerpromotionsmustusuallybeadvertisedandcanaddexcitementandpullingpowertoads.Tradeand sales forcepromotionssupportthefirm’spersonalsellingprocess.Ingeneral,ratherthancreatingonlyshort-term sales ortemporarybrandswitching, sales promotionsshouldhelptoreinforcetheproduct’spositionandbuildlong-termcustomerrelationships.Increasingly,marketersareavoiding“quickfix,”price-onlypromotionsinfavorofpromotionsdesignedtobuildbrandequity.Consumer-OrientedConsumer-OrientedConsumer-OrientedConsumer-Oriented Sales Sales Sales Sales Promotion: Promotion: Promotion: Promotion: Themainconsumer promotion toolsincludesamples,coupons,cashrefunds,pricepacks,premiums,advertisingspecialties,patronagerewards,point-of-purchasedisplaysanddemonstrations,andcontests,sweepstakes,andgames.Consumer-oriented sales promotionscanbeclassifiedaseitherprice-basedorattention-gettingconsumer promotion. Price-BasedConsumer Promotion Price-basedconsumerpromotionsemphasizeshort-termpricereductionsorrefunds,encouragingconsumerstochooseabrandwhilethedealison.Ifusedtoofrequently,however,consumersbecomeconditionedtopurchasetheproductonlyatthelowerpromotionalprice.CouponsAcouponcouponcouponcouponisacertificatethatgivesbuyersasavingwhentheypurchaseaspecifiedproduct.Couponscanstimulate sales ofamaturebrandorpromoteearlytrialofanewbrand.Redemptionrateshavebeendeclininginrecentyears,however,asaresultofcouponclutter.Mostmajorconsumergoodscompaniesareissuingfewercouponsandtargetingthemmorecarefully.Theyarealsocultivatingnewoutletsfordistributingcoupons,suchassupermarketshelfdispensers,electronicpoint-of-salecouponprinters,or“paperlesscouponsystems.”CashRebateOffersAcashcashcashcashrebaterebaterebaterebateisanoffertorefundpartofthepurchasepriceofaproducttoconsumerswhosenda“proofofpurchase”tothemanufacturer.PricePacksApricepricepricepricepackpackpackpackisareducedpricethatismarkedbytheproducerdirectlyonthelabelorpackage.Pricepackscanbesinglepackagessoldatareducedprice,ortworelatedproductsbandedtogether.Pricepacksareveryeffective—evenmoresothancoupons—instimulatingshort-term sales. PatronageRewardsApatronagepatronagepatronagepatronagerewardrewardrewardrewardiscashorotherawardfortheregularuseofacertaincompany’sproducts.SpecialPacksAspecialspecialspecialspecialpackpackpackpackisapackagethatgivestheshoppermoreproductinsteadofloweringitsprice.Aspecialpackalsocanbeaseparateproductgivenawayalongwithanotherproduct.Attention-GettingConsumer Promotion Attention-gettingconsumerpromotionsstimulateinterestinandpublicityforacompany’sproducts.SamplesAsamplesamplesamplesampleisasmallamountofaproductofferedtoconsumersfortrial.Samplingisthemosteffective—butmostexpensive—waytointroduceanewproduct.About84percentofconsumerpackaged-goodsmarketersusesamplingasapartoftheir promotion strategy.Somesamplesarefree;forothers,companieschargeasmallamounttooffsetitscost.Thesamplemightbedelivereddoor-to-door,sentbymail,handedoutinastore,attachedtoanotherproduct,orfeaturedinanad.Samplescanalsocomewiththemorningnewspaper,inasamplepack,orviatheInternet.PremiumsApremiumpremiumpremiumpremiumisagoodofferedeitherfreeoratlowcostasanincentivetobuyaproduct.Apremiumisnottheproductbeingpromoted.Itisusedasanincentivetoencouragepurchaseofthefeaturedproduct.Apremiummaycomeinsideoroutsidethepackage,orthroughthemail.AdvertisingSpecialtiesAnadvertisingadvertisingadvertisingadvertisingspecialtyspecialtyspecialtyspecialtyisausefularticleimprintedwithanadvertiser’sname,givenasagifttoconsumers.Typicalitemsincludepens,calendars,keyrings,matches,shoppingbags,T-shirts,caps,nailfiles,andcoffeemugs.Inarecentstudy,63percentofallconsumerssurveyedwereeithercarryingorwearinganadspecialtyitem.Morethanthree-quartersofthosewhohadanitemcouldrecalltheadvertiser’snameormessagebeforeshowingtheitemtotheinterviewer.Point-of-Purchase(POP)Promotions ... UnitUnitUnitUnit12:12:12:12:PublicPublicPublicPublicRelations,Relations,Relations,Relations, Sales Sales Sales Sales Promotion, Promotion, Promotion, Promotion, andandandandPersonalPersonalPersonalPersonalSellingSellingSellingSellingPublicPublicPublicPublicRelationsRelationsRelationsRelationsandandandandPublicity:Publicity:Publicity:Publicity:PublicPublicPublicPublicrelationsrelationsrelationsrelationsisanorganization’scommunicationsthatseektobuildgoodrelationshipswithanorganization’spublics,includingconsumers,stockholders,andlegislators.Itincludesobtainingfavorablepublicity,buildingupagood“corporateimage,”andhandlingorheadingoffunfavorablerumors,stories,andevents.PublicityPublicityPublicityPublicityisunpaidcommunicationaboutanorganizationthatappearsinthemassmedia.Publicrelationsmayconsistofwritingpressreleases,holdingspecialevents,conductingandpublishingconsumersurveysaboutaproductorthecompany,andeffortstoputapositivespinonnegativecompanynews.Unlike sales promotions,publicrelationsactivitiesdonotusuallyseekashort-termincreasein sales. Instead,theytrytocraftalong-termpositiveimagefortheproductortheorganization.Comparedwithpersonalselling,advertising,and sales promotions,expendituresforpublicrelationsareusuallylowinmostorganizations.Sincecompaniesdonotpayforpublicity,theyhavelesscontroloverthepublicationofgoodorbadcompanynews.Butthisoftenmeansthatconsumersfindthistypeofnewssourcemorebelievablethaniftheinformationweredisseminateddirectlybythecompany.MarketingMarketingMarketingMarketingandandandandNonmarketingNonmarketingNonmarketingNonmarketingPublicPublicPublicPublicRelations:Relations:Relations:Relations:Thebasicruleofpublicrelationsistodosomethinggoodandthentalkaboutit.Publicrelationsiscrucialtoanorganization’sabilitytoestablishandmaintainafavorableimage.NonmarketingNonmarketingNonmarketingNonmarketingpublicpublicpublicpublicrelationsrelationsrelationsrelationsreferstoacompany’smessagesaboutgeneralmanagementissues.Whenacompanymakesadecisionthataffectsanyofitspublics,inputfrompublicrelationsspecialistscanhelptosmoothitsdealingswiththosepublics.Acompany,forexample,thatdecidestocloseaplantwouldneedadviceonhowtodealwiththelocalcommunity.Otherexamplesincludeacompany’sattemptstogainfavorablepublicopinionduringalongstrikeoranopenlettertoCongresspublishedinanewspaperduringcongressionaldebatesonabillthatwouldaffectaparticularindustry.MarketingMarketingMarketingMarketingpublicpublicpublicpublicrelationsrelationsrelationsrelationsreferstonarrowlyfocusedpublicrelationsactivitiesthatdirectlysupportmarketinggoals.Marketingpublicrelationsinvolvesanorganization’srelationshipswithconsumersorAllowancesAnallowanceallowanceallowanceallowanceispromotionalmoneypaidbymanufacturerstoretailersinreturnforanagreementtofeaturethemanufacturer’sproductsinsomeway.Anadvertisingallowancecompensatesretailersforadvertisingtheproduct.Adisplayallowancecompensatesthemforusingspecialdisplays.ConventionsandTradeShowsManycompaniesandtradeassociationsorganizeconventionsandtradeshowstopromotetheirproducts.Firmssellingtotheindustryshowtheirproductsatthetradetradetradetradeshowshowshowshow.Atradetradetradetradeshowshowshowshowisaneventatwhichmanycompaniessetupelaborateexhibitstoshowtheirproducts,giveawaysamples,distributeproductliterature,andtrollfornewbusinesscontacts.Tradeshowsaremajorvehiclesformanufacturerstoshowofftheirproductlinestowholesalersandretailers.Morethan4,300tradeshowstakeplaceeveryyear,drawingasmanyas85millionpeople.Vendorsreceivemanybenefits,suchasopportunitiestofindnew sales leads,contactcustomers,introducenewproducts,meetnewcustomers,sellmoretopresentcustomers,andeducatecustomerswithpublicationsandaudiovisualmaterials.Tradeshowsalsohelpcompaniesreachmanyprospectsnotreachedthroughtheir sales forces.About90percentofatradeshow’svisitorsseeacompany’ssalespeopleforthefirsttimeattheshow.Businessmarketersmayspendasmuchas35percentoftheirannual promotion budgetsontradeshows.OtherProgramsManufacturersmayofferfreefreefreefreegoodsgoodsgoodsgoods,whichareextracasesofmerchandise,toresellerswhobuyacertainquantityorwhofeatureacertainflavororsize.Theymayofferpushpushpushpushmoneymoneymoneymoney—cashorgiftstodealersortheir sales forcesto“push”themanufacturer’sgoods.Mostretailersalsochargemanufacturersslottingslottingslottingslottingfeesfeesfeesfees—paymentsdemandedbyretailersbeforetheywillacceptnewproductsandfind“slots”forthemontheshelves.Manufacturersmayalsogiveretailersfreespecialtyspecialtyspecialtyspecialtyadvertisingadvertisingadvertisingadvertisingitemsitemsitemsitemsthatcarrythecompany’sname,suchaspens,pencils,calendars,paperweights,matchbooks,memopads,andyardsticks.Formoreexpensiveandhighlycomplexproducts,manufacturersoftenprovidespecializedspecializedspecializedspecializedtrainingtrainingtrainingtrainingforretailsalespeople.Thisbackgroundhelpssalespeopleexplainfeatures,competitiveadvantages,andotherinformationtoconsumers.Trainingcanbeprovidedinseveralways:Amanufacturer’s sales representativecanconducttrainingsessionsduringregular sales calls,orthefirmcandistribute sales literatureandvideocassettes. Sales Sales Sales SalesForceForceForceForce Promotion: Promotion: Promotion: Promotion: Sales force promotion isdirectedatthecompany’sown sales force(oftentimesthemanufacturer’s sales force)—ratherthanabusinesscustomer’s sales forcewhichisinthedistributionchannel,suchasaretailer’s sales force.Contests,forexample,couldbeusedtourgethe sales forcetoincreasetheirefforts,withprizesgoingtothetopperformers.A sales sales sales salescontestcontestcontestcontestisacontestforsalespeopletomotivatethemtoincreasetheir sales performanceoveragivenperiod. Sales contestsmotivateandrecognizegoodcompanyperformers,whomayreceivetrips,cashprizes,orothergifts. Sales contestsworkbestwhentheyaretiedtomeasurableandachievable sales objectives.Otherincentivescouldalsobeprovidedtoencouragethe sales forcetoincreasenewaccountsinadditiontoboosting sales. PersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:PersonalPersonalPersonalPersonalsellingsellingsellingsellingispromotionalpresentationbythefirm’s sales forceconductedonaperson-to-personbasiswiththebuyerforthepurposeofmaking sales andbuildingcustomerrelationships.Personalsellingistheoldestformof promotion. Thisdirectformof promotion maybeconductedface-to-face,overthetelephone,throughvideoconferencing,orthroughinteractivecomputerlinksbetweenthebuyerandtheseller.Thisdirectcontactwiththecustomergivesthesalespersontheopportunitytobeflexibleandmodifythe sales messagetocoincidewiththecustomer’sneeds.Thesalespersoncangetimmediatefeedbackfromthecustomer.Thisformof promotion hasahighcostpercontactwiththecustomer.Theaverage sales callcostsabout$300.Itisdifficulttoensureconsistencyofmessagewhenitisdeliveredbymanydifferentcompanyrepresentatives.Thecredibilityofsalespeopleoftendependsonthequalityoftheircompany’simage,whichhasbeencreatedbyother promotion strategies.About14millionpeopleintheU.S.areemployedinpersonalselling.Today,mostsalespeoplearewell-educated,well-trainedprofessionalswhoworktobuildandmaintainlong-termcustomerrelationshipsbylisteningtotheircustomers,assessingcustomerneeds,andorganizingthecompany’seffortstosolvecustomerproblems.Thetermsalespersoncoversawiderangeofpositions.Atoneextreme,asalespersonmightbelargelyanordertaker,suchasadepartmentstoresalespersonstandingbehindacounter.Attheotherextremeareordergetters,whosepositionsdemandthecreativesellingofproductsrangingfromappliances,industrialequipment,andairplanestoinsurance,advertising,andinformationtechnologyservices.TheTheTheTheRoleRoleRoleRoleofofofofPersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:Generally,apersonal sales effortismoreimportantwhenafirmengagesinapushstrategy,inwhichthegoalistopushtheproductthroughthedistributionchannelsothatitisavailabletoconsumers.PersonalsellingalsoislikelytobecrucialinB2Bcontextswhendirectinteractionwithupper-levelmanagementisrequiredtosecureanimportantsale—andoftenwhenintensepricenegotiationsoccurbeforethesaleismade.Inaddition,inexperiencedbuyersmayneedthehands-onassistancethataprofessionalsalespersoncanprovide.Firmssellingproductsthatconsumersbuyinfrequently,suchascomputers,lawnmowers,andcollegeeducations,oftenrelyheavilyonpersonalselling,asdofirmssellingcomplexorveryexpensiveproductsthatneedasalespersontoexplain,justify,andsellthem.Personalselling,however,hassomedisadvantagesthatlimittheroleplayedbypersonalsellinginthe promotion mix.First,whenthedollaramountofindividualpurchasesislow,itisn’teconomicallyfeasibletousepersonalselling.Thecostpercontactwithacustomerishighcomparedtootherformsofcommunication,suchasadvertising.Salespeoplecanalsoonlymakealimitednumberof sales callsaday.Relianceonpersonalsellingiseffectiveonlywhenthesuccessratioisatitshighest.Becausethecostofutilizingsalespeopleishigh,telemarketingisgrowinginpopularity.Thetypesofsalespeopleandtheirfunctionsvaryconsiderably.Thepersonwhoprocessesacomputerpurchaseoverthephoneisanorderorderorderordertakertakertakertaker,asalespersonwhoseprimaryfunctionistofacilitatetransactionsthatthecustomerinitiates.Ordertakersincludebothinsideandoutsidesalespeople.Mostretailsalespeopleareinsideordertakers,butoftenwholesalers,dealers,anddistributorsemploysalespeopletowaitoncustomers.Incontrast,acomputertechnicianisatechnicaltechnicaltechnicaltechnicalspecialistspecialistspecialistspecialist,a sales supportpersonwithahighleveloftechnicalexpertisewhoassistsinproductdemonstrations,recommendationsforcomplexequipment,andsetupofmachinery.Thetechnicalspecialist’sjobistoprovide sales supportratherthanactuallyclosingthesale.Thetechnicalspecialistpromotesthefirmandtriestostimulatedemandforaproducttomakeiteasierforcolleaguestoactuallymakethesale.Sometimesapersonwhosejobistolaythegroundworkisknownasamissionarymissionarymissionarymissionarysalespersonsalespersonsalespersonsalesperson.Thisisasalespersonwhopromotesthefirmandtriestostimulatedemandforaproduct,butdoesnotactuallycompleteasale.Manyfirmsfindthatthesellingfunctionisbesthandledbyteamteamteamteamsellingsellingsellingselling,usingteamsofpeoplefrom sales, marketing,engineering,finance,technicalsupport,andevenuppermanagementtoservicelarge,complexaccounts.Finally,thepersonwhoactuallyconvincesthecustomertobuyisanorderorderorderordergettergettergettergetter,asalespersonwhoworkscreativelytodeveloprelationshipswithcustomersortogeneratenew sales. ApproachesApproachesApproachesApproachestotototoPersonalPersonalPersonalPersonalSelling:Selling:Selling:Selling:Personalsellingisoneoftheoldestformsof promotion, butitsimagehasbeentarnishedbysmooth-talkingpitchmenwhohavesometimessaidanythingtomakeasale.Inmorerecentyears,personalsellinghasbeguntoredeemitselfasaprofessionandhasmovedfromatransactional,hard-selltechniquetoarelationshipmarketingapproach.TransactionalMarketingThehardsellisahigh-pressureprocess.Hard-selltacticsareaformoftransactionaltransactionaltransactionaltransactionalsellingsellingsellingselling,aformofpersonalsellingthatfocusesonmakinganimmediatesalewithlittleornoattempttodeveloparelationshipwiththecustomer.Ascustomers,thehardsellmakesusfeelmanipulatedandresentful.Thistechniquealsocontributestothenegativeimagemanyofushaveofobnoxioussalespeople.RelationshipMarketingToday’sprofessionalsalespersonismorelikelytopracticerelationshiprelationshiprelationshiprelationshipsellingsellingsellingselling,aformofpersonalsellinginwhichthesalespersonseekstodevelopamutuallysatisfyingrelationshipwiththeconsumer.Relationshipsellinginvolveswinning,keeping,anddevelopingcustomers.Winningacustomermeansconvertinganinterestedprospectintosomeonewhoisconvincedthattheproductholdsvalueforhimorher.Keepingacustomermeansensuringthatthecustomergetswhatheorshepaidfor.Developingacustomermeanssatisfyingthecustomersothatheorshewillbecountedontoprovidefuturebusiness.Theprofessionalsalespersonwhogenuinelyadherestotheprinciplesofrelationshipmarketingisarelationshipbuilderandacustomerproblemsolver.TheTheTheTheCreativeCreativeCreativeCreativeSellingSellingSellingSellingProcess:Process:Process:Process:Sellingisseldomboring.Everycustomer,every sales call,andeverysalespersonareunique.Somesalespeoplearesuccessfulprimarilybecausetheyknowsomuchaboutwhattheysell.Othersaresuccessfulbecausetheyhavebuiltstrongrelationshipswithcustomerswholookforwardtotheirvisits.Mostsalespeopleunderstandandengageinaseriesofactivitiesnecessarytobringaboutatransaction.Complexorexpensive sales requirecarefulplanning,andsuccessfulsellinginthesecasesismorelikelyifthesalespersonundergoesasystematicseriesofstepsknownasthecreativecreativecreativecreativesellingsellingsellingsellingprocessprocessprocessprocess.Thesestepsrequirethesalespersontoseekoutcustomers,analyzetheirneeds,determinehowproductattributesprovidebenefits,andthendecidehowbesttocommunicatethistotheprospects.Thestepsintheprocessincludeprospecting,qualifying,preapproach,approach, sales presentation,demonstration,handlingobjections,closing,andfollow-up.ProspectingProspectingProspectingProspectingProspectingisthestepofthesellingprocessthatincludesidentifyinganddevelopingalistofpotentialorprospectivecustomers.Prospectsor sales leadscancomefromexistingcustomerlists,telephonedirectories,orcommerciallyavailabledatabases.Sometimescompaniesgenerate sales leadsthroughtheiradvertisingor sales promotionsbylettingcustomersrequestmoreinformation.Onewaytogenerateleadsisthroughcoldcalling,whenthesalespersoncontactsprospectswithoutpriorintroductionorarrangement.Salespeoplealsorelyonreferrals.Currentclientswhoaresatisfiedwiththeirpurchaseoftengivereferrals.QualifyingSalespeoplenextneedtoqualifyqualifyqualifyqualifytheirprospectsprospectsprospectsprospects,thestepofthesellingprocessthatdetermineshowlikelyprospectsaretobecomecustomers.Prospectscanbequalifiedbylookingattheirfinancialability,volumeofbusiness,specialneeds,location,andpossibilitiesforgrowth.PreapproachThepreapproachpreapproachpreapproachpreapproachisthestepinthesellingprocessinwhichthesalespersonlearnsasmuchaspossibleaboutaprospectivecustomerbeforemakinga sales call.Salespeopletrytolearnasmuchaspossibleaboutqualifiedprospectsearlyon.Theymayprobepriorpurchasehistory,currentneeds,orinformationabouttheirinterests.Thesalespersoncanconsultindustryandonlinesources,acquaintances,etc.tolearnabouttheprospect.Anothertaskistodecideonthebestapproach,whichmightbeapersonalvisit,aphonecall,oraletter.Thebesttimingshouldbeconsideredcarefullybecausemanyprospectsarebusiestatcertaintimes.Finally,thesalespersonshouldgivethoughttoanoverall sales strategyfortheaccount.ApproachTheapproachapproachapproachapproachisthestepinthesellingprocessinwhichthesalespersonusuallymeetsthecustomerforthefirsttime.Heorsheshouldstartbuildingtherelationshipduringtheapproach.Thesalespersonshouldknowhowtomeetandgreettheprospectandgettherelationshipofftoagoodstart.Thisstepinvolvesthesalesperson’sappearance,openinglines,andthefollow-upremarks.Theopeninglinesshouldbepositivetobuildgoodwillfromthebeginningoftherelationship.Ifthesalespersonmadecontactwiththeprospectthroughareferral,thesalespersonshouldprobablysaysoup-front.Thisopeningmightbefollowedbysomekeyquestionstolearnmoreaboutthecustomer’sneedsorbyshowingadisplayorsampletoattracttheprospect’sattentionandcuriosity.Asinallstagesofthesellingprocess,listeningtothecustomeriscrucial. Sales PresentationThe sales sales sales salespresentationpresentationpresentationpresentationisthestepinthesellingprocessinwhichthesalespersonseekstopersuasivelycommunicatetheproduct’sfeaturesandthebenefitsitwillprovideafterthesale.Proofstatements,suchasdataonpast sales, testimonials,guarantees,orresearchresults,helptomakethesalesperson’spresentationcredible.Some sales presentationsarecanned,meaningascripthasbeenwritteninadvance,andthesamemessageisdeliveredtomanyprospects.Thistechniqueoftenprovidesaseriesofverbalpromptstowhichthereareexpectedcustomerresponses.Asimilarapproachcalledaformulatedapproachidentifiesaprospect’sneedsandthenprovidesascripted sales pitchkeyedtothatkindofprospect.Thesestandardizedapproachesworkfineinsomecases,butthemosteffective sales presentationsarethosethataretailoredtothespecificcustomer.Increasingly, sales presentationsaregoinghigh-tech.Computer-basedmultimediapresentationsareconsideredthenextwavein sales- forceautomation.Withamultimedia-readynotebookcomputerorLCDprojectioncomputer,salespeoplecanbringcolor,animation,video,audio,andinteractivity—aswellasthelatestproductandpricinginformation—totheirpresentations.DemonstrationOneimportantadvantageofpersonalsellingovermostadvertisingistheabilityofsalespeopletoprovideademonstrationdemonstrationdemonstrationdemonstrationoftheproducttothepotentialbuyer.Manyfirmsusenewtechnologiestomaketheirdemonstrationsmoreeffective.Multimediainteractivedemonstrationsarenowcommon.Thekeytoagooddemonstration—onethatgainsthecustomer’sattention,keepshisorherinterest,isconvincing,andstaysinthecustomer’smemory—isplanning.Thesalespersonshouldcheckandrecheckallaspectsofthedemonstrationpriortoitsdelivery.HandlingObjectionsHandlingHandlingHandlingHandlingobjectionsobjectionsobjectionsobjectionsisthestepinthesellingprocessinwhichthesalespersonseeksout,clarifies,andovercomescustomerobjectionstobuying.Customersalmostalwayshaveobjectionsduringthepresentationorwhenaskedtoplaceanorder.Theproblemcanbeeitherlogicalorpsychological,andobjectionsareoftentimesunspoken.Thesalespersonshouldhandleobjectionsusingapositiveapproach,byseekingouthiddenobjections,askingtheprospecttoclarifyanyobjections,andtakingobjectionsasopportunitiestoprovidemoreinformation—turningtheobjectionsintoreasonsforbuying.Everysalespersonneedstrainingintheskillsofhandlingobjections.ClosingClosingClosingClosingClosingisthestepinthesellingprocessinwhichthesalespersonasksthecustomerforanorder.Somesalespeopledonotgetaroundtoclosingordonothandleitwell.Theymaylackconfidence,feelguiltyaboutaskingfortheorder,orfailtorecognizetherightmomenttoclosethesale.Salespeopleshouldknowhowtorecognizeclosingsignalsfromthebuyer,includingbodylanguage,comments,andquestions.Salespeoplecanuseseveralclosingtechniques.Theycanaskfortheorder,reviewpointsofagreement,offertohelpwriteuptheorder,askwhethertheybuyerwantsthismodelorthatone,ornotethatthebuyerwillloseoutiftheorderisnotplacednow.Thesalespersonmayalsoofferthebuyerspecialreasonstoclose,suchasalowerpriceoranextraquantityatnocharge.Follow-UpFollow-upFollow-upFollow-upFollow-upisthelaststepinthesellingprocess,inwhichthesalespersonfollowsupafterthesaletoensurecustomersatisfactionandrepeatbusiness.Rightafterclosing,thesalespersonshouldcompleteanydetailsondeliverytime,purchaseterms,andothermatters.Thesalespersonthenshouldscheduleafollow-upcallwhentheinitialorderisreceived,tomakesurethereisproperinstallation,instruction,and/orservicing.Thisvisitshouldrevealanyproblems,assurethebuyerofthesalesperson’sinterest,andreduceanybuyerconcernsthatmighthavearisensincethesale.Follow-upalsoallowsthesalespersontobridgetothenextpurchase.Oncearelationshipdevelops,thesellingprocessisonlythebeginning.Evenasonecycleofpurchasingdrawstoaclose,agoodsalespersonisalreadylayingthefoundationforthenextone. Sales Sales Sales SalesManagement:Management:Management:Management: Sales Sales Sales Salesmanagementmanagementmanagementmanagementistheprocessofplanning,implementing,andcontrollingthepersonalsellingfunctionofanorganization.Personalsellingisateameffortthatrequirescarefulplanningandsalespeopleinthefieldwhenandwherecustomersneedthem. Sales ForceObjectives Sales forceobjectivesstatewhatthe sales forceisexpectedtoaccomplishandwhen.Thesegoalscouldincludeacquiringnewcustomers,generatingspecificamountsof sales volume,reducing sales expenses,improvingcustomersatisfaction,gatheringnew-productsuggestions,traininggoals,andcommunityinvolvementgoals. Sales managersalsoworkwiththeirsalespeopletodevelopindividualgoals.Performancegoalsaremeasurableoutcomes,suchastotal sales andtotalprofitspersalesperson.Behavioralgoalsspecifyactionssalespeoplemustaccomplish,suchasthenumberofprospectstoidentify,thenumberof sales calls,andthenumberof sales presentations. Sales ForceStrategyA sales forcestrategyspecifiesthestructureandsizeofafirm’s sales force.Eachsalespersonhastheresponsibilityforasetgroupofcustomers—the sales sales sales salesterritoryterritoryterritoryterritory.Theterritorystructureallowssalespeopletohaveanin-depthunderstandingofcustomersandtheirneedsthroughfrequentcontacts.Themostcommonwaytoallotterritoriesisgeographically,minimizingtravelandotherfieldexpenses.Ageographic sales forcestructureusuallyissizedaccordingtohowmanycustomersarefoundinagivenarea.Iftheproductlineisdiverseortechnicallycomplex,abetterapproachmaybetostructure sales territoriesbasedondifferentclassesofproductstoenablethe sales forcetoprovidemoreexpertisetoasetofcustomerswithsimilarneeds.Stillanotherstructureisindustryspecialization,inwhichsalespeoplefocusonasingleindustryorasmallnumberofindustries.Puttingasalespersonintothefieldisexpensive,sothenumberofpeopleinthe sales forcehasanimpactonacompany’sprofitability.Determiningtheoptimalnumberofsalespeopleisanimportantdecision.Recruiting,Selecting,&Trainingthe Sales ForceBecausethequalityofa sales forcecanmakeorbreakafirm,atoppriorityfor sales managersistorecruitandselecttherightsetofpeopletodothejob—peoplewhoarestrategicthinkers,whohavetechnicalknowledgepertainingtotheindustry,andwhohaveexcellentinterpersonalskills.Companiesscreenpotentialsalespeopletorevealtheseskills,alongwithusefulinformationaboutinterestsandcapabilities.Pencil-and-papertestscandeterminequantitativeskillsandcompetenceinareasnoteasilyevaluatedthroughinterviews. Sales trainingteachessalespeopleabouttheorganizationanditsproductsandhowtodeveloptherightskills,knowledge,andattitudes.Newsalespeoplemayspendanywherefromafewweeksormonthstoayearormoreintraining.Theaverageinitialtrainingperiodisfourmonths.Then,mostcompaniesprovidecontinuing sales trainingviaseminars, sales meetings,andtheInternetthroughoutthesalesperson’scareer.Compensating,Motivating,andSupervisingthe Sales ForceOnewaytomotivatesalespeopleistopaythemwell,oftentimesbytyingcompensationtoperformance.Astraightcommissionplanisbasedsolelyonapercentageof sales thepersoncloses.Underacommission-with-drawplan,earningsarebasedoncommissionplusaregularpayment,or“draw,”thatmaybechargedagainstfuturecommissionsifcurrent sales areinadequatetocoverthedraw.Withastraightsalarycompensationplan,thesalespersonispaidasetamountregardlessof sales performance.Sometimesstraightsalaryplansareaugmentedbyuseofaquota-bonusplan,inwhichsalespeoplearepaidsalaryplusabonusfor sales aboveanassignedquota.Inadditiontobasiccompensation,manymanagersfindthatavarietyofotherincentivescanalsoenhancethe sales forceefforttremendously.Suchincentivescanrangefromfreevacationstoextracash.Althoughmanysalespeopleliketoworkindependently,supervisionisessentialtoaneffective sales force. Sales managersoftenrequiresalespeopletodevelopmonthly,weekly,ordailycallreports,aplanofactiondetailingwhichcustomerswerecalledonandhowthingswent.Thesereportsallowthe sales managertotrackwhatthesalespeoplearedoinginthefield,andtheyprovidemarketingmanagerswithtimelyinformationaboutcustomers’responses,competitiveactivity,andanychangesinthefirm’scustomerbase.Evaluatingthe Sales ForceThejobof sales managersisnotcompleteuntilthetotaleffortofthe sales forceisevaluated.First,itisimportanttodetermineifthe sales functionismeetingitsquantitativeobjectives.Ifnot,the sales managermustfigureoutthecauses.Individualsalespersonperformanceisnormallymeasuredagainst sales quotasforindividual sales territories,evenwhencompensationplansdonotincludebonusesorcommissionsbasedonquotas.Otherquantitativemeasures,suchasnumberof sales callsand sales reports,mayalsobeusedintheevaluation.Manyfirmsalsoevaluatetheir sales forceonqualitativeindicatorsofperformancesuchassalespersonattitude,productknowledge,andcommunicationskills.Increasingly,asfirmsfocusonrelationshipmanagement,thelevelofcustomersatisfactionisastrongqualitativemeasureofsuperiorsalespersonperformance.Finally,thesalesperson’sexpenseaccountfortravelandentertainment(T&E)maybeconsideredsincethebest sales recordcanmeanlittletoacompany’sbottomlineifthesalespersonisgougingthecompanywithoutrageousexpenses.Note:TheabovelecturenoteswerecompiledbyDavidGerth.Thesematerialsareacompositeofquotations,paraphrases,andideasfromMarketing:RealPeople,RealChoices,Solomon&Stuart,2003,PrenticeHall;ContemporaryMarketing,Boone&Kurtz,2004,Thomson;PrinciplesofMarketing,Kotler&Armstrong,2004,PrenticeHall;andDavidGerth.TheyareonlyintendedforthenoncommercialuseofstudentsinDavidGerth’smarketingclassesforeducationalpurposes.othergroupsaboutmarketingconcernsandcanbeeitherproactiveorreactive.Withproactivemarketingpublicrelations,themarketertakestheinitiativeandseeksoutopportunitiesforpromotingthefirm’sproducts,oftenincludingdistributionofpressreleasesandfeaturearticles.Itisapowerfulmarketingtoolsinceitaddsnewscoveragethatreinforcesdirect promotion activities.Althoughsomepublicityhappensnaturally,moretypicallya“buzz”needstobecreatedbyafirm’spublicists.Reactivemarketingpublicrelationsrespondstoanexternalsituationthathaspotentialnegativeconsequencesfortheorganization.Thegoalinthiscaseistomanagetheflowofinformationtoaddressconcernssothatconsumersdon’tpanicanddistributorsdon’tabandontheproduct.TheInternethasexpandedthecapabilitiesofthetraditionalpublicrelationsfunction.Corporatewebsitesposttestimonialsfromcustomers,makenewproductannouncements,andrespondquicklytoimportantevents.Newsreleasespostedonthecompanywebsitemaydoubleas sales vehicles.TheInternetcanalsobeveryeffectiveinhandlingcompanycrises.WithahostofInternetnewssites,companiescanrespondtoacrisisonlineinfarlesstimethanotherformsofcommunicationsuchaspressreleasesorconferences.PublicPublicPublicPublicRelationsRelationsRelationsRelationsObjectives:Objectives:Objectives:Objectives:Publicrelationsspecialistsneedtooperateatmanylevelstoensurethatvariouspublicsofacompanyreceivecoordinated,positivemessagesaboutthefirm.Thesegroupsincludecustomers,suppliers,employees,themedia,stockholders,andgovernmentregulators.Companiesthatpracticeintegratedmarketingcommunicationstrategiesknowthatpublicrelationsstrategiesarebestusedinconcertwithadvertising, sales promotion, andpersonalsellinginordertosendaconsistentmessagetocustomersandotherstakeholders.AspartofthetotalIMCplan,publicrelationsdepartmentsmayperformanyorallofthefollowingfunctionstoachievecommunicationsobjectives:•PublicAffairs–Buildingandmaintainingnationalorlocalcommunityrelations.•Lobbying–Buildingandmaintainingrelationswithlegislatorsandgovernmentofficialstoinfluencelegislationandregulation.•InvestorRelations–Maintainingrelationshipswithshareholdersandothersinthefinancialcommunity.•Development–Publicrelationswithdonorsormembersofnonprofitorganizationstogainfinancialorvolunteersupport.•LocationPR–Enhancingtheimageofacity,region,orcountry.•PressRelations–Creatingandplacingnewsworthyinformationinthenewsmediatoattractattentiontoapersonorproduct.•ProductPublicity–Publicizingspecificproductstoconsumersaswellasotherorganizations.PublicPublicPublicPublicRelationsRelationsRelationsRelationsTools:Tools:Tools:Tools:Publicrelationsprofessionalsuseseveraltools.Theyuse:•News,•Speeches,•SpecialEvents,•MobileMarketing,•WrittenMaterials,•AudiovisualMaterials,•CorporateIdentityMaterials,and•PublicServiceActivities.Oneofthemajortoolsisnews.PRprofessionalsfindorcreatefavorablenewsabouttheorganizationanditsproductsorpeople.Speechescanalsocreateproductandcompanypublicity.Increasingly,companyexecutivesmustfieldquestionsfromthemediaorgivetalksattradeassociationsor sales meetings.AnothercommonPRtoolisspecialevents,rangingfromnewsconferences,presstours,grandopenings,andfireworksdisplaystolasershows,hotairballoonreleases,multimediapresentationsandstar-studdedspectaculars,andeducationalprogramsdesignedtoreachandinteresttargetpublics.Recently,mobilemarketing—travelingpromotionaltoursthatbringthebrandtoconsumers—hasemergedasaneffectivewaytobuildone-to-onerelationshipswithtargetedconsumers.Publicrelationspeoplealsopreparewrittenmaterialstoreachandinfluencetheirtargetmarkets.Thesematerialsincludeannualreports,brochures,articles,andcompanynewslettersandmagazines.Audiovisualmaterials,suchasfilms,slide-and-soundprograms,andvideo-andaudiocassettes,arebeingusedincreasinglyascommunicationtools.Corporateidentitymaterialscanalsohelpcreateacorporateidentitythatthepublicimmediatelyrecognizes.Logos,stationery,brochures,signs,businessforms,businesscards,buildings,uniforms,andcompanycarsandtrucks—allbecomemarketingtoolswhentheyareattractive,distinctive,andmemorable.Finally,companiescanimprovepublicgoodwillbycontributingmoneyandtimetopublicserviceactivities.PlanningPlanningPlanningPlanningaaaaPublicPublicPublicPublicRelationsRelationsRelationsRelationsCampaign:Campaign:Campaign:Campaign:Apublicrelationscampaignisacoordinatedefforttocommunicatewithoneormoreoftheorganization’spublics.Thisisathree-stepprocessof:1.DevelopingObjectives,2.Executing,and3.Evaluating.TheorganizationmustfirstdevelopclearobjectivesforthePRprogramthatdefinethemessageitwantspeopletohear.ThePRspecialistsmustdevelopacampaignstrategythatincludes:•astatementofobjectives;•asituationanalysis;•specificationoftargetpublics,messagestobecommunicated,andspecificprogramelementstobeused;•atimetableandbudget;and•adiscussionofhowtheprogramwillbeevaluated.Executionofthecampaignmeansdecidingpreciselyhowthemessageshouldbecommunicatedtothetargetedpublicsandimplementingthedecisions.Anorganizationcanuseavarietyofpublicrelationstools:newsconferences,specialevents,writtenmaterials,etc.Oneofthebarrierstogreaterrelianceonpublicrelationscampaignsisthedifficultyencounteredwhentryingtogaugetheireffectiveness.ItispossibletotellifaPRcampaignisgettingmediaexposure,thoughit’smoredifficulttogaugebottom-lineimpact.In-houseassessments,awarenessandpreferenceresearchstudies,andthemeasurementofprintandbroadcastcoveragegeneratedbyPRactivitiesaswellasimpressioncountscanbeusedinthePRcampaignevaluation. Sales Sales Sales Sales Promotion: Promotion: Promotion: Promotion: Sales Sales Sales Sales Promotion Promotion Promotion Promotionistheuseofshort-termincentivestoencouragethepurchaseorsaleofaproduct. Sales promotionsareprogramssuchascontests,coupons,displays,tradeshows,samples,premiums,productdemonstrations,orotherincentivesthatmarketersdesigntobuildinterestinorencouragepurchaseofaproductduringaspecifiedtimeperiod. Sales promotionsareintendedtostimulateimmediateaction,oftenintheformofapurchase,ratherthantobuildlong-termloyalty.Whereasadvertisingandpersonalsellingofferreasonstobuyaproduct, sales promotion offersreasonstobuynow. Sales promotion gearedtomarketingintermediariesiscalledtradetradetradetrade promotion promotion promotion promotion.Companiesactuallyspendaboutasmuchontrade promotion asonadvertisingandconsumer-oriented sales promotion combined.Trade promotion strategiesincludeofferingfreemerchandise,buybackallowances,andmerchandiseallowancesalongwithsponsorshipof sales conteststoencouragewholesalersandretailerstosellmoreofcertainproductsorproductlines. Sales promotion toolsareusedbymostorganizations,includingmanufacturers,distributors,retailers,tradeassociations,andnot-for-profitinstitutions.Theyaretargetedtowardfinalbuyers,retailersandwholesalers,businesscustomers,andmembersofthe sales force.Severalfactorshavecontributedtotherapidgrowthof sales promotion, particularlyinconsumermarkets.First,insidethecompany,productmanagersfacegreaterpressurestoincreasetheircurrent sales; and sales promotion isviewedasaneffectiveshort-run sales tool.Second,externally,thecompanyfacesmorecompetition;andcompetingbrandsarelessdifferentiated.Increasingly,competitorsareusing sales promotion tohelpdifferentiatetheiroffers.Third,advertisingefficiencyhasdeclinedbecauseofrisingcosts,mediaclutter,andlegalconstraints.Finally,consumershavebecomemoredealoriented,andever-largerretailersaredemandingmoredealsfrommanufacturers.Thegrowinguseof sales promotion hasresultedin promotion clutter,similartoadvertisingclutter,however.Consumersareincreasinglytuningout sales promotions,weakeningtheirabilitytotriggerimmediatepurchase.Manufacturersarenowsearchingforwaystoriseabovetheclutter,suchasofferinglargercouponvaluesorcreatingmoredramaticpoint-ofpurchasedisplays. Sales Sales Sales Sales Promotion Promotion Promotion PromotionObjectives:Objectives:Objectives:Objectives: Sales promotion objectivesdifferwidely:•IncreaseShort-Term Sales (consumer promotion) •BuildLong-TermMarketShare(consumer promotion) •EncourageRetailerstoCarryNewItemsandAdditionalInventory(trade promotion) •EncourageRetailerstoAdvertiseandProvideMoreShelfSpace(trade promotion) •EncourageRetailerstoBuyAhead(trade promotion) •Increase Sales ForceSupport (sales force promotion) •IncreaseNumberofNewAccounts (sales force promotion) Sellersmayuseconsumerpromotionstoincreaseshort-term sales ortohelpbuildlong-termmarketshare.Objectivesfortradepromotionsincludegettingretailerstocarrynewitemsandmoreinventory,gettingthemtoadvertisetheproductandgiveitmoreshelfspace,andgettingthemtobuyahead. Sales force promotion objectivesincludegettingmore sales forcesupportforcurrentornewproductsorgettingsalespeopletosignupnewaccounts. Sales promotionsareusuallyusedtogetherwithadvertising,personalselling,orother promotion mixtools.Consumerpromotionsmustusuallybeadvertisedandcanaddexcitementandpullingpowertoads.Tradeand sales forcepromotionssupportthefirm’spersonalsellingprocess.Ingeneral,ratherthancreatingonlyshort-term sales ortemporarybrandswitching, sales promotionsshouldhelptoreinforcetheproduct’spositionandbuildlong-termcustomerrelationships.Increasingly,marketersareavoiding“quickfix,”price-onlypromotionsinfavorofpromotionsdesignedtobuildbrandequity.Consumer-OrientedConsumer-OrientedConsumer-OrientedConsumer-Oriented Sales Sales Sales Sales Promotion: Promotion: Promotion: Promotion: Themainconsumer promotion toolsincludesamples,coupons,cashrefunds,pricepacks,premiums,advertisingspecialties,patronagerewards,point-of-purchasedisplaysanddemonstrations,andcontests,sweepstakes,andgames.Consumer-oriented sales promotionscanbeclassifiedaseitherprice-basedorattention-gettingconsumer promotion. Price-BasedConsumer Promotion Price-basedconsumerpromotionsemphasizeshort-termpricereductionsorrefunds,encouragingconsumerstochooseabrandwhilethedealison.Ifusedtoofrequently,however,consumersbecomeconditionedtopurchasetheproductonlyatthelowerpromotionalprice.CouponsAcouponcouponcouponcouponisacertificatethatgivesbuyersasavingwhentheypurchaseaspecifiedproduct.Couponscanstimulate sales ofamaturebrandorpromoteearlytrialofanewbrand.Redemptionrateshavebeendeclininginrecentyears,however,asaresultofcouponclutter.Mostmajorconsumergoodscompaniesareissuingfewercouponsandtargetingthemmorecarefully.Theyarealsocultivatingnewoutletsfordistributingcoupons,suchassupermarketshelfdispensers,electronicpoint-of-salecouponprinters,or“paperlesscouponsystems.”CashRebateOffersAcashcashcashcashrebaterebaterebaterebateisanoffertorefundpartofthepurchasepriceofaproducttoconsumerswhosenda“proofofpurchase”tothemanufacturer.PricePacksApricepricepricepricepackpackpackpackisareducedpricethatismarkedbytheproducerdirectlyonthelabelorpackage.Pricepackscanbesinglepackagessoldatareducedprice,ortworelatedproductsbandedtogether.Pricepacksareveryeffective—evenmoresothancoupons—instimulatingshort-term sales. PatronageRewardsApatronagepatronagepatronagepatronagerewardrewardrewardrewardiscashorotherawardfortheregularuseofacertaincompany’sproducts.SpecialPacksAspecialspecialspecialspecialpackpackpackpackisapackagethatgivestheshoppermoreproductinsteadofloweringitsprice.Aspecialpackalsocanbeaseparateproductgivenawayalongwithanotherproduct.Attention-GettingConsumer Promotion Attention-gettingconsumerpromotionsstimulateinterestinandpublicityforacompany’sproducts.SamplesAsamplesamplesamplesampleisasmallamountofaproductofferedtoconsumersfortrial.Samplingisthemosteffective—butmostexpensive—waytointroduceanewproduct.About84percentofconsumerpackaged-goodsmarketersusesamplingasapartoftheir promotion strategy.Somesamplesarefree;forothers,companieschargeasmallamounttooffsetitscost.Thesamplemightbedelivereddoor-to-door,sentbymail,handedoutinastore,attachedtoanotherproduct,orfeaturedinanad.Samplescanalsocomewiththemorningnewspaper,inasamplepack,orviatheInternet.PremiumsApremiumpremiumpremiumpremiumisagoodofferedeitherfreeoratlowcostasanincentivetobuyaproduct.Apremiumisnottheproductbeingpromoted.Itisusedasanincentivetoencouragepurchaseofthefeaturedproduct.Apremiummaycomeinsideoroutsidethepackage,orthroughthemail.AdvertisingSpecialtiesAnadvertisingadvertisingadvertisingadvertisingspecialtyspecialtyspecialtyspecialtyisausefularticleimprintedwithanadvertiser’sname,givenasagifttoconsumers.Typicalitemsincludepens,calendars,keyrings,matches,shoppingbags,T-shirts,caps,nailfiles,andcoffeemugs.Inarecentstudy,63percentofallconsumerssurveyedwereeithercarryingorwearinganadspecialtyitem.Morethanthree-quartersofthosewhohadanitemcouldrecalltheadvertiser’snameormessagebeforeshowingtheitemtotheinterviewer.Point-of-Purchase(POP)Promotions...

... refund offer - - 2 1 1 - - Advertising specialty & novelty 2 - 2 2 1 - 1 Innovative Marketing, Volume 4, Issue 1, 2008 12Table 5 (cont.). Popularity of sales promotion adver-tisements ... popular promotional techniques used by retailers. Value-adding promotions include free gift, samples, loyalty schemes and a competi-tion are often overlooked. Price-based value increas-ing promotions ... build long-term con-sumer preference and loyalty, instead, usually pro-duce short-term sales that cannot be maintained (Kotler et al., 2006). However, research shows that sales promotion...

... centered sales men techniques-The important sales promotional tools for foreign salesmen are -Sales meeting , sales men, contests costumers product models, samples & visual aids , sales literature ... organizing sales meetings and conferences, organizing contest, sales exhibition, traveling to sales personal etc. Q.8 Discuss in details the export- sales promotion. Ans. Export sales promotion ... (iv) Sales management process. Q.6 What are the different tools of sales promotion for consumer promotion? Ans. This sales promotion is aimed at final consumer or users. Consumer sales promotion...

... of sales promotion campaigns if they apply SP for strategic and tactic (long-term and short-term) aims. T3: Discounts (price-offs) and winter and summer sales are the most popular sales promotion ... „Útkeresés az üzleti és a közszférában, KHEOPS Automobil-Kutató Intézet, p. 48 4-4 92. ISBN 97 8-9 6 3-8 755 3-3 -9 Keller, V. (2009) Applying sales promotion strategy among small retailers – Questions ... Kaposvári Egyetem Gazdaságtudományi Kar, Kaposvár 2009. augusztus 2 5-2 6, p. 3 7-4 7. ISBN 97 8-9 6 3-9 82 1-1 2-5 Keller, V.(2007) Az értékesítés-ösztönzés fogyasztói aspektusai In: Dr. habil. Ferencz Árpád...

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... &Mills-Booth, 1993; King, Glass, Bresee, & Duggan, 2003).Outcome EvaluationAssessment of the long-term effects of a program, for example, by observ-ing health status and quality-of-life ... cultural, social, eco-nomic, family, and environmental situations.Performance IndicatorsA series of specific concepts and skills intended for fourth-, eighth-, andeleventh-grade students meant ... organizers in the develop-ment and implementation of health promotion. The program was designedto help communities analyze their needs and plan, implement, and evalu-ate health promotion programs....

... Kỹ năng vàng cho nghề Sales Khi tìm người cho vị trí nhân viên sales (nhân viên kinh doanh) hay cao hơn là quản lý sales, nhà tuyển dụng cần các ứng viên có các kỹ ... khác nhau. Chính vì vậy, có thể nói rằng, nghề sales như một công việc đi kết bạn, đi chia sẻ những điều tốt nhất cho khách hàng của mình.Nhân viên sales thường xuyên chịu áp lực về doanh số và ... hàngMột thực tế đầy thách thức đối với nhân viên sales là họ phải chứng tỏ được khả năng của mình thông qua kết quả kinh doanh đạt được. Vì vậy nghề sales đòi hỏi nhân viên phải có khả năng chịu...

... Sales và Marketing, vũ diệu không đồng bộNếu nhìn vào biển hiệu của bộ phận “bán hàng và tiếp thị” ... giai đoạn trong toàn bộ vòng đời của sản phẩm? Câu trả lời là: Marketing phát triển thị trường- làm rõ các cơ hội bán hàng tương lai, giáo dục, xúc tiến thương mại – cho đến thời điểm bộ phận...