Sales Promotion, Public Relations, and Personal Selling

Business 1201, Fall 2005

Dr. Katherine Gallagher

Objectives

• To understand the roles of sales promotion, public relations, and personal selling in building relationships with customers

Sales Promotion

• More marketing $ are now spent on sales promotions than on advertising, due to:– Short-term results– Competitive pressure– Buyers’ expectations– Low levels of retail selling– Door openers

Sales Promotion

• Deciding what specific tools to use:– Nature of the target audience– Marketing communication objectives– Nature of the product– Cost of the tool– Current economic conditions

Consumer Promotions

• Goals:– Encourage product trial– Encourage continued buying and use– Encourage purchase and use of related products– Support IMC strategy to gain faster, more

measurable results– Build a marketing database

Consumer Promotions

• Techniques– Coupons– Samples– Frequency marketing programs– Sweepstakes and contests– Premiums– Price promotions– Refunds and rebates– Displays

Trade Promotions

• Goals:– Add channel partners (especially retailers)– Induce retailers to carry more stock– Enhance retailer support of the brand– Strengthen relationships with retailers

Trade Promotions

• Techniques– Trade allowances– Trade shows– Incentives and contests– Cooperative advertising– Training and marketing support

Sales Promotion and the PLC• Introduction

– Trade promotion to get distribution– Consumer promotion to get trial

• Growth– Trade promotions to reinforce relationships with

retailers (defense against competitors)– Consumer promotions to expand customer base

• Maturity– Trade promotions to reinforce relationships with

retailers (defense against competitors)– Consumer promotions to fight off competition

Public Relations

• Types:– Corporate PR– Marketing public relations (MPR)– Event sponsorship– Publicity

• Goals:– Raise awareness– Inform and educate– Build trust and understanding– Open communication lines

Publicity

• Techniques– Prepare a story and circulate it to the media

• Press release– Communicate personally with a group– Engage in one-on-one personal communication, or

lobbying

Personal Selling

• Types– Inside selling

• Proactive selling• Reactive selling

– Outside selling• In-person sales calls• Mail or telemarketing selling

• Sales jobs

Personal Selling

• Trends in personal selling– Team selling– Systems selling– Global sales teams– Relationship selling– Telemarketing and Internet selling– Sales force automation

Personal Selling

• The sales process– Prospecting– Pre-approach– Presentation

• AIDA– Post-purchase services

The Sales Process

1. Prospecting– Identify prospects

• Company-supplied leads• Developing leads

– Referrals

– Networking

– Data sources

– Cold calls

– Qualify prospects• Screen out poor leads

– Authority to buy

– Ability to buy

– Willingness to buy

The Sales Process

2. Preapproach– Gather information about prospect company and individual– Set call objectives

• Gather information• Provide sales literature• Conduct needs-assessment• Make appointment for next sales call• Make a sale

– Decide on overall sales strategy– Decide on best approach, timing

• Personal visit• Phone call• Letter

The Sales Process

3. Sales presentation• Approaching the prospect

• Appearance• Opening words• Follow-up remarks

• Presenting and demonstrating• Canned presentation• Formula presentation• Needs-satisfaction presentation

• Dealing with resistance and objections

The Sales Process

• Sales presentation (continued)– Dealing with resistance and objections

• Valid and invalid objections• Techniques for handling objections

– Put off – Switch focus – Offset – Denial – Provide proof

• Strive for a win-win outcome

The Sales Process

• Sales presentation (continued)– Close

• Obtain prospect’s agreement to buy• Try to close after:

– Positive verbal cues– Positive nonverbal cues– Conclusion of presentation or demonstration

The Sales Process

4. Post-purchase services– Follow through on promises– Follow up– Build a relationship

Summary

• Sales promotions can be directed at either retailers or consumers. Usually a consumer promotion comes after a trade promotion.

• PR and publicity are credible but not very controllable, and can focus on either the company or the brand.

• Personal selling includes four steps, all of which must be done carefully: prospecting, pre-approach, presentation, and post-purchase services.