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Chapter 10Marketing communication
and personal selling
Learning objectives1 Discuss the role of promotion in the
marketing mix
2 Discuss the elements of the promotional mix
3 Describe the communication process
4 Explain the goals and tasks of promotion
5 Discuss the AIDA concept and its relationship to the promotional mix
Learning objectives (cont.)
6 Describe the factors that affect the promotional mix
7 Describe personal selling
8 Discuss the key differences between relationship selling and traditional selling
9 List the steps in the selling process
10 Describe the functions of sales management
Learning objective 1
Define the term marketingDiscuss the role of
promotion in the
marketing mix
Promotion
Communication by marketers that informs, persuades and reminds potential buyers of a product in order to influence an opinion or elicit a response.
1
Promotional strategy
• advertising
• public relations
• personal selling
• sales promotion.
1
A plan for the optimal use of the elements of promotion:
The role of promotion
Promotional mix
• Advertising• Public relations• Personal selling• Sales promotion
Promotion plan
Overall marketing objectives
Marketing mix• Product• Distribution• Promotion• Price
Target market
1
Learning objective 2
Describe four marketing management philosophies.Discuss the elements
of the promotional mix
Elements of the promotional mix
2
• Advertising
• Public relations
• Personal selling
• Sales promotion
Promotional mix
Combination of promotion
tools used to reach the
target market and fulfill the
organisation’s overall goals.
2
Advertising
Impersonal, one-way mass
communication about a
product or organisation that
is paid for by a marketer.
2
Public relations
The marketing function that
evaluates public attitudes,
identifies areas within the
organisation that the public may
be interested in and executes a
program of action to earn public
understanding and acceptance.
2
Publicity
Public information about a company, good or service appearing in the mass media as a news item.
2
Sales promotion
Marketing activities – other than
personal selling, advertising and
public relations – that stimulate
consumer buying and dealer
effectiveness.
2
Personal selling
Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.
2
Integrated marketing communication
The method of carefully
coordinating all promotional
activities to produce a
consistent, unified message
that is customer-focused.
2
Learning objective 3
Describe four marketing management philosophies.
Describe the communication process
Communication
The process by which we
exchange or share
meanings through a
common set of symbols.
3
Marketing communication3
• interpersonal communication
• mass communication
Categories of communication:
The communication process
As senders As receivers
• Inform
• Persuade
• Remind
• Develop messages
• Adapt messages
• Spot new communication opportunities
3
The sender and encoding
Sender The originator of the message in the
communication process.
EncodingThe conversion of a sender’s ideas
and thoughts into a message, usually in the form of words or signs.
3
The communication process
Noise
Sender Encodingmessage
Message channel
Message channel
Decoding message Receiver
3
Learning objective 4
Explain the goals and tasks of promotion
Informing Reminding
Persuading
Targetaudience
Goals and tasks of promotion4
Goals and tasks of promotion (cont.)
Informative objective
• Increase awareness
• Explain how product works
• Suggest new uses
• Build company image
4
Goals and tasks of promotion (cont.)
Persuasion objective
• Encourage brand switching
• Change customers’ perception
of product attributes
• Influence buying decision
• Persuade customers to call
4
Goals and tasks of promotion (cont.)
Reminder objective
• Remind customers that product may be needed
• Remind customers where to buy product
• Maintain customer awareness
4
Learning objective 5
Discuss the AIDA concept
and its relationship to the
promotional mix
The AIDA Concept
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
5
• Attention
• Interest
• Desire
• Action
AIDA and the promotional mix
Awareness Interest Desire Action
Advertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
Publicrelations
Veryeffective
Veryeffective
Veryeffective
Noteffective
Salespromotion
Somewhateffective
Somewhateffective
Veryeffective
Veryeffective
Personalselling
Somewhateffective
Veryeffective
Veryeffective
Somewhateffective
5
Learning objective 6
Describe the factors that affect the promotional mix
Factors affecting the promotional mix
6
• Nature of product
• Stage in product life cycle
• Target market factors
• Type of buying decision
• Promotion funds
• Push or pull strategy
Nature of the product6
• Product characteristics
– Business product vs consumer product
• Costs and risks
• Social risk
Stage in the product life cycle
Time
GrowthGrowth
MaturityMaturity
Sale
s ($
) (
$)
DeclineDecline
Maturity
6
Introduction
Growth
Product life cycle and thepromotional mix
Light advertising,
pre-introduction
publicity
Heavy use of advertising,
PR forawareness,
sales promotion
for trial
Ads and PRdecrease,limited sales
promotion, personal selling for
distribution
Ads decrease,sales
promotion,personal selling,
reminder and persuasive
Advertising, PR, brandloyalty,
personal selling for
distribution
6
Maturity
Decline
Sale
s ($
)
IntroductionGrowth
Time
Target market characteristics6
• Advertising
• Sales promotion
• Less personal
selling
For:
• Widely scattered market
• Informed buyers
• Repeat buyers
Type of buying decision6
Routine• advertising• sales promotion
Not routine or complex• advertising• public relations
Complex• personal selling
Available funds6
• Trade-offs with funds available
• Number of people in target market
• Quality of communication needed
• Relative costs of promotional elements
Push and pull strategies
Manufacturerpromotes to wholesaler
Wholesaler promotes to
retailer
Retailer promotes toconsumer
Consumerbuys from
retailer
Push strategy
Manufacturerpromotes to
consumer
Consumer demands product
from retailer
Retailer demands
product from wholesaler
Wholesaler demands
product frommanufacturer
Pull strategy
6
Orders to manufacturer
Orders to manufacturer
Learning objective 7
Describe personal selling
Personal selling7
• Provides a detailed explanation or demonstration of product.
• Message can be varied to fit the needs of each prospective customer.
• Can be directed to specific qualified prospects.
• Costs can be controlled by adjusting sales force size.
Discuss the key differences between relationship selling and traditional selling
Learning objective 8
Relationship selling
A sales practice that involves
building, maintaining and
enhancing interactions with
customers in order to develop
long-term satisfaction through
mutually beneficial partnerships.
8
Relationship selling (cont.)
8
Focus: Building mutual trust
Long-term value-added benefits to buyer
Relationship vs traditional selling8
Traditional personal selling
• Sell products• Focus on closing sales• Limited sales planning• Discuss product• Assess ‘product-specific’
needs• ‘Lone wolf’ approach• Pricing/product focus• Short-term sales follow-up
Relationship selling• Sell advice, assistance, counsel• Focus on customer’s bottom
line• Sales planning is top priority• Build problem-solving
environment• Conduct discovery in scope of
operations• Team approach• Profit impact and strategic
benefit focus• Long-term sales follow-up
List the steps in the selling process
Learning objective 9
Steps in the selling process9
• Generate leads
• Qualify leads
• Probe customer needs
• Develop solutions
• Handle objections
• Close the sale
• Follow up
Describe the functions of sales management
Learning objective 10
Sales management responsibilities
10
• Define sales goals and sales process
• Determine sales force structure
• Recruit and train sales force
• Compensate and motivate sales team
• Evaluate sales team
