Marketing Communications and Personal Selling

1Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning

Marketing Communications Marketing Communications and Personal Sellingand Personal Selling

Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University

Chapter 12


Learning ObjectivesLearning Objectives

1. Discuss the role of promotion in the marketing mix.

2. Discuss the elements of the promotional mix.

3. Discuss the concept of integrated marketing communications.

4. Describe the communication process.


Learning Objectives Learning Objectives (continued)(continued)

4. Explain the goal and tasks of promotion.

5. Discuss the AIDA concept and its relationship to the promotional mix.

6. Describe the factors that affect the promotional mix.


Learning Objectives Learning Objectives (continued)(continued)

8. Describe personal selling.

9. Discuss the key differences between relationship selling and traditional

selling.

10. List the steps in the selling process.

11. Describe the functions of sales management.


Learning Objective Learning Objective

Discuss the role of promotion in the marketing mix.

11

On Linehttp://www.maxim-magazine.co.uk

On Linehttp://www.maxim-magazine.co.uk


PromotionPromotion

Communication by

marketers that informs,

persuades, and reminds

potential buyers of a

product in order to

influence an opinion or

elicit a response.

11


Promotional StrategyPromotional Strategy

A plan for the optimal use

of the elements of

promotion:

Personal Selling Personal Selling

AdvertisingAdvertising

Public RelationsPublic Relations

Sales PromotionSales Promotion

11


The Role of PromotionThe Role of Promotion

Overall Overall Marketing Marketing ObjectivesObjectives

Overall Overall Marketing Marketing ObjectivesObjectives

Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice

Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice

Target MarketTarget MarketTarget MarketTarget Market

Promotional MixPromotional Mix

•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan


•Advertising•Public Relations•Personal Selling•Sales Promotion

Promotion PlanPromotion Plan

11


Competitive AdvantageCompetitive Advantage

Unique FeaturesUnique Features

Excellent ServiceExcellent Service

Low PricesLow Prices

Rapid DeliveryRapid Delivery

High Product QualityHigh Product Quality

FeaturesFeaturesthat Providethat ProvideCompetitiveCompetitiveAdvantageAdvantage

FeaturesFeaturesthat Providethat ProvideCompetitiveCompetitiveAdvantageAdvantage

11



Discuss the elements of the promotional mix.

22


On Linehttp://www.nabiscoworld.com

On Linehttp://www.nabiscoworld.com


Personal SellingPersonal Selling

Elementsof the

PromotionalMix

Elementsof the

PromotionalMix




22



Traditional Traditional SellingSelling

Traditional Traditional SellingSelling

Relationship Relationship SellingSelling

Relationship Relationship SellingSelling

22

Planned presentation to

one or more prospective

buyers for the purpose

of making a sale.



Impersonal, one-way

mass communication

about a product or

organization that is

paid for by a marketer.

22


Advertising MediaAdvertising Media

Traditional Advertising Media

Traditional Advertising Media

ElectronicAdvertising Media

ElectronicAdvertising Media

Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards

Internet Electronic mail Interactive video

22

On Linehttp://www.olympics.orghttp://www.olympics.com

On Linehttp://www.olympics.orghttp://www.olympics.com



AdvantagesAdvantages

Reach large number of people

Low cost per contact

Can be micro-targeted

DisadvantagesDisadvantages

Total cost is high

22



The marketing function that

evaluates public attitudes,

identifies areas within the

organization that the public

may be interested in, and

executes a program of action

to earn public understanding

and acceptance.

22



Evaluates public attitudes

Evaluates public attitudes

Identifies areas of public interestIdentifies areas of public interest

Executes programs to “win” public

Executes programs to “win” public

Functions ofFunctions ofPublic RelationsPublic Relations

Functions ofFunctions ofPublic RelationsPublic Relations

22


PublicityPublicity

Public information about a

company, good, or service

appearing in the mass media

as a news item.

22



GOAL is to stimulate consumer

buying and dealer

effectiveness.

22

EndConsumers

EndConsumers

Trade Customers

Trade Customers

CompanyEmployees Company

Employees

Sales PromotionSales PromotionTargetsTargets

Sales PromotionSales PromotionTargetsTargets


Sales Promotion Sales Promotion

Free samplesFree samples

ContestsContests

PremiumsPremiums

Trade ShowsTrade Shows

Vacation GiveawaysVacation Giveaways

CouponsCoupons

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

Popular ToolsPopular Toolsforfor

Consumer SalesConsumer SalesPromotionPromotion

22



Discuss the concept Discuss the concept of integrated of integrated marketing marketing communications.communications.

33


Integrated Marketing Integrated Marketing CommunicationsCommunications

A method of carefully

coordinating all

promotional activities to

produce a consistent,

unified message that is

customer focused.

33


IMC Popularity GrowthIMC Popularity Growth

Proliferation of thousands of media choices

Fragmentation of the mass market

Slash of advertising spending in favor of promotional techniques

33



Describe the communication process.

44


CommunicationCommunication

The process by which we

exchange or share

meanings through a

common set of symbols.

44


Marketing CommunicationMarketing Communication

Categories of CommunicationCategories of

Communication

InterpersonalInterpersonalCommunicationCommunicationInterpersonalInterpersonal

CommunicationCommunicationMassMass

CommunicationCommunicationMassMass

CommunicationCommunication

44


The Communication ProcessThe Communication Process

NoiseNoise

SenderSender EncodingMessage

EncodingMessage

FeedbackChannel

FeedbackChannel

MessageChannel

MessageChannel

DecodingMessage

DecodingMessage ReceiverReceiver

44


The Communication ProcessThe Communication Process

As SendersAs Senders As ReceiversAs Receivers

Inform

Persuade

Remind

Develop messages

Adapt messages

Spot new communication opportunities

44


Characteristics of AdvertisingCharacteristics of Advertising

Communication Mode Communication Mode

Communication ControlCommunication Control

Feedback AmountFeedback Amount

Feedback SpeedFeedback Speed

Message Flow DirectionMessage Flow Direction

Message Content ControlMessage Content Control

Sponsor IdentificationSponsor Identification

Reaching Large Audience Reaching Large Audience

Message FlexibilityMessage Flexibility

AdvertisingAdvertisingAdvertisingAdvertising

Indirect and non-personal Indirect and non-personal

LowLow

LittleLittle

DelayedDelayed

One-wayOne-way

YesYes

YesYes

Fast Fast

Same message to all audiencesSame message to all audiences

44


Characteristics of Public Characteristics of Public RelationsRelations










Public RelationsPublic RelationsPublic RelationsPublic Relations

Usually indirect, non-personal Usually indirect, non-personal

Moderate to lowModerate to low

LittleLittle

DelayedDelayed

One-wayOne-way

NoNo

NoNo

Usually fast Usually fast

Usually no direct controlUsually no direct control

44


Characteristics of Characteristics of Sales PromotionSales Promotion










Sales PromotionSales PromotionSales PromotionSales Promotion

Usually indirect and non-personal Usually indirect and non-personal

Moderate to lowModerate to low

Little to moderateLittle to moderate

VariesVaries

Mostly one-wayMostly one-way

YesYes

YesYes

Fast Fast

Same message to varied targetSame message to varied target

44


Characteristics of Personal Characteristics of Personal SellingSelling










Personal SellingPersonal SellingPersonal SellingPersonal Selling

Direct and face-to-face Direct and face-to-face

HighHigh

MuchMuch

ImmediateImmediate

Two-wayTwo-way

YesYes

YesYes

Slow Slow

Tailored to prospectTailored to prospect

44



Explain the goal and tasks of promotion.

55


Goals and Tasks of PromotionGoals and Tasks of Promotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLC StagesPLC Stages:Introduction Early Growth

PLC Stages:PLC Stages:Growth Maturity

PLC Stages:PLC Stages:Maturity

55



Informative Objective

Increase awareness

Explain how product works

Suggest new uses

Build company image

55



Persuasion Objective

Encourage brand switching

Change customers’ perception of product attributes

Influence buying decision

Persuade customers to call

55



Reminder Objective

Remind customers that product may be needed

Remind customers where to buy product

Maintain customer awareness

55

On Linehttp://www.tide.com

On Linehttp://www.tide.com



Discuss the AIDA concept and its relationship to the promotional mix.

66


The AIDA ConceptThe AIDA Concept

Model that outlines the process

for achieving promotional goals

in terms of stages of consumer

involvement with the message.

66


AIDA and the Promotional MixAIDA and the Promotional Mix

AwarenessAwareness InterestInterest DesireDesire ActionAction

AdvertisingAdvertising Veryeffective

Veryeffective

Somewhateffective

Noteffective

PublicPublicRelationsRelations

Veryeffective

Veryeffective

Veryeffective

Noteffective

SalesSalesPromotionPromotion

Somewhateffective

Somewhateffective

Veryeffective

Somewhat effective

PersonalPersonalSellingSelling

Somewhateffective

Veryeffective

Veryeffective

Veryeffective

66



Describe the factors that affect the promotional mix.

77

On Linehttp://www.nascar.comhttp://www.kelloggs.com

On Linehttp://www.nascar.comhttp://www.kelloggs.com


Factors Affecting the Factors Affecting the Choice of Promotional MixChoice of Promotional Mix

Nature of the ProductNature of the Product

Stage in PLCStage in PLC

Target Market FactorsTarget Market Factors

Type of Buying DecisionType of Buying Decision

Promotion FundsPromotion Funds

Push or Pull StrategyPush or Pull Strategy

77


Product Life Cycle and theProduct Life Cycle and thePromotional MixPromotional Mix

Light Advertising;

pre-introduction

publicity

Heavy use of Advertising;

PR forawareness;

sales promotion

for trial

AD/PRdecrease;

limited sales

promotion; personal selling for

distribution

Ads decrease;

sales promotion;

personal selling;

reminder & persuasive

Advertising’ PR, brand

loyalty;personal selling for

distribution

IntroductionIntroduction GrowthGrowth

MaturityMaturityDeclineDecline

Sal

es (

$)S

ales

($)

TimeTime

77


Target Market CharacteristicsTarget Market Characteristics

FOR:

Widely scattered market

Informed buyers

Repeat buyersAdvertisingAdvertising


Less Personal SellingLess Personal Selling

77On Linehttp://www.radioguide.comhttp://www.nytimes.comhttp://www.usatoday.com

On Linehttp://www.radioguide.comhttp://www.nytimes.comhttp://www.usatoday.com


Type of Buying DecisionType of Buying Decision

Advertising

Sales PromotionType ofType of

Buying DecisionBuying DecisionAffectsAffects

Promotional Promotional Mix ChoiceMix Choice

Type ofType ofBuying DecisionBuying Decision

AffectsAffectsPromotional Promotional Mix ChoiceMix Choice

ComplexComplexComplexComplex

RoutineRoutineRoutineRoutine

Personal Selling

Not RoutineNot Routineor Complexor Complex

Not RoutineNot Routineor Complexor Complex

Advertising

Public Relations

77


Available FundsAvailable Funds

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements

77


Push and Pull StrategiesPush and Pull Strategies

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler

Wholesaler Wholesaler promotes to promotes to

retailerretailer

Wholesaler Wholesaler promotes to promotes to

retailerretailer

Retailer Retailer promotes topromotes toconsumerconsumer

Retailer Retailer promotes topromotes toconsumerconsumer

ConsumerConsumerbuys frombuys from

retailerretailer

ConsumerConsumerbuys frombuys from

retailerretailer

PUSH STRATEGYPUSH STRATEGY

Orders to manufacturer

ManufacturerManufacturerpromotes to promotes to

consumerconsumer

ManufacturerManufacturerpromotes to promotes to

consumerconsumer

Consumer Consumer demands demands productproduct

from retailerfrom retailer

Consumer Consumer demands demands productproduct

from retailerfrom retailer

Retailer Retailer demands demands productproduct

from wholesalerfrom wholesaler

Retailer Retailer demands demands productproduct

from wholesalerfrom wholesaler

Wholesaler Wholesaler demandsdemands

product fromproduct frommanufacturermanufacturer

Wholesaler Wholesaler demandsdemands

product fromproduct frommanufacturermanufacturer

Orders to manufacturer

PULL STRATEGYPULL STRATEGY

77



Describe personal selling.

88


Advantages of Personal Advantages of Personal SellingSelling

Provides a detailed explanation or demonstration of product

Message can be varied to fit the needs of each prospective customer

Can be directed to specific qualified prospects

Costs can be controlled by adjusting sales force size

Most effective method to obtain sales and gain satisfied customers

88



Customers are concentrated

Customers are concentrated

There are few customersThere are few customers

Product is technically complex

Product is technically complex

Product is custom madeProduct is custom made

Product has a high valueProduct has a high value

Personal Selling Personal Selling is more important if...is more important if...

Customers are geographically dispersed

Customers are geographically dispersed

There are many customersThere are many customers

Product is simple to understand

Product is simple to understand

Product is standardizedProduct is standardized

Product has a low valueProduct has a low value

Advertising & Sales Promotion Advertising & Sales Promotion are more important if...are more important if...

88



Discuss the key differences between relationship selling and traditional selling.

99


Relationship SellingRelationship Selling

A sales practice that

involves building,

maintaining, and enhancing

interactions with customers

in order to develop long-

term satisfaction through

mutually beneficial

partnerships.

99


Relationship Selling Relationship Selling vs. Traditional Sellingvs. Traditional Selling

Sell advice, assistance, counsel Sell advice, assistance, counsel Sell products

TraditionalTraditionalPersonal SellingPersonal Selling

Focus on closing salesFocus on closing sales

Limited sales planningLimited sales planning

Discuss productDiscuss product

Assess “Product-specific” needsAssess “Product-specific” needs

“Lone wolf” approach“Lone wolf” approach

Pricing/product focusPricing/product focus

Short-term sales follow-up Short-term sales follow-up

Focus on customer’s bottom lineFocus on customer’s bottom line

Sales planning is top prioritySales planning is top priority

Build problem-solving environmentBuild problem-solving environment

Conduct discovery in scope of operationsConduct discovery in scope of operations

Team approachTeam approach

Profit impact and strategic benefit focusProfit impact and strategic benefit focus

Long-term sales follow-up Long-term sales follow-up

Relationship SellingRelationship Selling

99



List the steps in the selling process.

1010


Steps in the Selling ProcessSteps in the Selling Process

Generate LeadsGenerate Leads

Qualify LeadsQualify Leads

Probe Customer NeedsProbe Customer Needs

Develop SolutionsDevelop Solutions

Handle ObjectionsHandle Objections

Close the SaleClose the Sale

Follow UpFollow Up

1010


Time Spent in Key Steps Time Spent in Key Steps of Selling Processof Selling Process

Key Selling Steps Traditional

Selling

Relationship

Selling

Generate Leads High Low

Qualify Leads Low High

Probe Needs Low High

Develop Solutions Low High

Handle Objections High Low

Close the sale High Low

Follow-up Low High

1010


On Linehttp://www.goleads.com

On Linehttp://www.goleads.com Generating LeadsGenerating Leads

Cold CallingCold CallingAdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/

Telemarketing

Trade Shows/Conventions

Trade Shows/Conventions

Internet Web Site

Internet Web Site ReferralsReferrals NetworkingNetworking

Company Records

Company Records

Sources ofSources ofSales LeadsSales LeadsSources ofSources of

Sales LeadsSales Leads

1010


Qualifying LeadsQualifying Leads

Recognized NeedRecognized Need

Buying PowerBuying Power

Receptivity & Accessibility

Receptivity & Accessibility

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

Characteristics ofCharacteristics ofQualified LeadsQualified Leads

1010On Linehttp://www.hoovers.comhttp://www.dnb.com

On Linehttp://www.hoovers.comhttp://www.dnb.com


Needs AssessmentNeeds Assessment

A determination of the

customer’s specific needs

and wants and the range

of options a customer has

for satisfying them.

1010


Probing NeedsProbing Needs

Product or serviceProduct or service

Customers and their needsCustomers and their needs

CompetitionCompetition

IndustryIndustry

Salesperson must knoweverything

about...

Salesperson must knoweverything

about...

1010


Developing and Developing and Proposing SolutionsProposing Solutions

Sales ProposalSales Proposal

Sales PresentationSales Presentation

1010


Handling ObjectionsHandling Objections

Handling Handling

ObjectionsObjections

Handling Handling

ObjectionsObjections

Use the objection to close the sale

Use the objection to close the sale

Anticipate specific objections

Anticipate specific objections

View objections as requests for information

View objections as requests for information

1010


Closing the SaleClosing the Sale

Closing Closing the Salethe Sale

Closing Closing the Salethe Sale

NegotiateNegotiate

Keep an open mindKeep an open mind

Look for customer signals

Look for customer signals

1010


Following UpFollowing Up

ResponsibilitiesResponsibilitiesinin


ResponsibilitiesResponsibilitiesinin


Employees are trainedEmployees are trained

Goods or service performas promised

Goods or service performas promised

Ensure delivery schedules are metEnsure delivery

schedules are met

1010



Describe the functions of sales management.

1111


Sales Management ResponsibilitiesSales Management Responsibilities

Evaluate sales forceEvaluate sales force

Compensate and motivatesales force

Compensate and motivatesales force

Recruit and trainsales force

Recruit and trainsales force

Determine sales force structure

Determine sales force structure

Define sales goals andsales process

Define sales goals andsales process

Tasks of Tasks of Sales ManagementSales Management

Tasks of Tasks of Sales ManagementSales Management

1111


Defining Sales GoalsDefining Sales Goals

ClearClear

PrecisePrecise

MeasurableMeasurable

Time SpecificTime Specific

Sales GoalsShould Be...Sales GoalsShould Be...

1111


Sales Force StructureSales Force Structure

CommonCommonSalesSales

OrganizationOrganizationStructuresStructures

CommonCommonSalesSales

OrganizationOrganizationStructuresStructures

Individual client or account

Individual client or account

Market or IndustryMarket or Industry

Marketing FunctionMarketing Function

Product LineProduct Line

Geographic RegionGeographic Region

1111


Training the Sales ForceTraining the Sales Force

Training Training includes...includes...

Training Training includes...includes...

Nonselling dutiesNonselling duties

Industry and customer characteristics

Industry and customer characteristics

Product knowledgeProduct knowledge

Selling techniquesSelling techniques

Company policies and practice

Company policies and practice

1111


Compensation Plans: Compensation Plans: Basic MethodsBasic Methods

CommissionCommission

SalarySalary

CombinationPlans

CombinationPlans

1111

The salesperson is paid some percentage when a sale is made.The salesperson is paid some percentage when a sale is made.

The salesperson receives a salary regardless of sales productivity.

The salesperson receives a salary regardless of sales productivity.


Effective Sales LeadersEffective Sales Leaders

Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......

Are assertive Are assertive

Possess ego drivePossess ego drive

Possess ego strengthPossess ego strength

Take risksTake risks

Are innovativeAre innovative

Have a sense of urgencyHave a sense of urgency

Are empatheticAre empathetic

1111


Evaluating the Sales Force: Evaluating the Sales Force: Performance MeasuresPerformance Measures

Contribution to ProfitContribution to Profit

Calls per OrderCalls per Order

Sales or Profits per CallSales or Profits per Call

Call Percentage Achieving GoalsCall Percentage Achieving Goals

Sales VolumeSales Volume

1111


The Impact of Technology The Impact of Technology on Personal Sellingon Personal Selling

Laptop computer linkLaptop computer link

Cell phonesCell phones

PagersPagers

Personal data assistantsPersonal data assistants

E-MailE-Mail

InternetInternet

Sales ForceSales ForceAutomationAutomationSales ForceSales ForceAutomationAutomation

1111

Documents

Marketing Communications and Personal Selling