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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...