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1. 16 chapter MARKETING COMMUNICATION AND PERSONAL SELLING Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University Chapter 16

2. You Will Learn To ... 1. Discuss the role of promotion in the marketing mix. 2. Discuss the elements of IMC. 3. Describe the communication process. 4. Explain the goalS and tasks of IMC. 5. Discuss the AIDA concept and its relationship to the IMC program. Chapter 16

3. You Will Learn To ... 6. Describe the factors that affect IMC. 7. Describe personal selling. 8. Discuss the key differences between relationship selling and traditional selling. 9. List the steps of the selling process. 10. Describe the functions of sales management. Chapter 16

4. Promotional Mix (IMC PLAN) Plan for integrating the elements of promotion: • Advertising • Public Relations • Personal Selling • Sales Promotion Chapter 16

5. Advertising Elements of the Promotional Mix Public Relations Personal Selling Sales Promotion Promotional Mix Chapter 16

6. Overall Marketing Objectives Promotional Mix • Advertising • Public Relations • Personal Selling • Sales Promotion Promotion Plan Marketing Mix • Product • Distribution • Promotion • Price Target Market The Role of Promotion Chapter 16

7. High Product Quality Rapid Delivery “Differential Advantage” Features that influence the consumer to purchase. Low Prices Excellent Service Unique Features Differential Advantage Chapter 16

8. Personal Selling Planned presentation to one or more prospective buyers for the purpose of making a sale. Chapter 16

9. Personal Selling Traditional Selling Relationship Selling Chapter 16

10. Advertising Impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Chapter 16

11. Traditional Advertising Media ElectronicAdvertising Media • Television • Radio • Newspapers • Magazines • Books • Direct mail • Billboards • Transit cards • Internet • E-Mail • Fax machines Advertising Media Chapter 16

12. Advantages Ability to reach large number of people Cost per contact is low Can be micro-targeted Disadvantages Total cost is high Advertising Chapter 16

13. Sales Promotion Marketing activities-other than personal selling, advertising, and public relations--that stimulate consumer buying and dealer effectiveness. Chapter 16

14. Sales Promotion Targets End-User Company Employees Trade Customers Sales Promotion Chapter 16

15. Popular Tools for Sales Promotion Free samples Contests Premiums Trade Shows Vacation Giveaways Coupons Sales Promotion Chapter 16

16. Public Relations The marketing function thatevaluates 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. Chapter 16

17. Functions of Public Relations Evaluates public attitudes Executes public acceptance Identifies public interest Public Relations Chapter 16

18. Publicity Public information about a company, good, or service appearing in the mass media as a news item. Chapter 16

19. Communication The process by which we exchange or share meanings through a common set of symbols. Chapter 16

20. Categories of Communication Interpersonal Communication Mass Communication Marketing Communication Chapter 16

21. As Senders As Receivers • Inform • Persuade • Remind • Develop messages • Adapt messages • Spot new communication opportunities The Communication Process Chapter 16

22. Sender The originator of the message in the communication process. Encoding The conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs. The Sender and Encoding Chapter 16

23. Noise Sender EncodingMessage Message Channel Decoding Message Receiver Message Channel The Communication Process Chapter 16

24. Elements in the Promotional Mix Exhibit 16-3 Chapter 16

25. Integrated Marketing Communications (IMC) The method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer focused. Chapter 16

26. Informing Reminding Target Audience Persuading Goals and Tasks of IMC Chapter 16

27. Informing Reminding PLC Stages: Introduction Early Growth PLC Stages: Maturity Target Audience Persuading PLC Stages: Growth Maturity Goals and Tasks of Promotion Chapter 16

28. Informative Promotion • Increase awareness • Explain how product works • Suggest “NEW” uses • Positioning company image Promotional Tasks Chapter 16

29. Persuasive Promotion • Encourage brand switching • Emphasizes the product’s real and perceived differential advantages • Influence buying decision • Builds loyalty Promotional Tasks Chapter 16

30. Reminder Objective • Keeps the product and brand name in the public’s mind. • Remind customers that product may be needed • Remind customers where to buy product • Maintain customer awareness Promotional Task Chapter 16

31. Attention Interest Desire Action The AIDA Concept Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Chapter 16

32. Attention Interest Desire Action Advertising Very effective Very effective Somewhat effective Not effective Public Relations Very effective Very effective Very effective Not effective Sales Promotion Somewhat effective Somewhat effective Very effective Very effective Personal Selling Somewhat effective Very effective Very effective Somewhat effective AIDA and the Promotional Mix Chapter 16

33. Factors Affecting Choice of Promotional Mix Nature of Product Stage in PLC Target Market Factors Type of Buying Decision Promotion Funds Push or Pull Strategy Factors Affecting IMC Chapter 16

34. Factors that influence IMC Nature of the Product • Product classification • Business product vs. consumer product • Costs and risks • Social risk Chapter 16

35. Maturity Introduction Growth Decline Sales ($) Time Stage in the Product Life Cycle Chapter 16

36. Maturity Decline Growth Introduction Sales($) Time Product Life Cycle and thePromotional Mix Light Advertising, pre- introduction Publicity Heavy use of advertising, PR for awareness; sales promotion for trial Advertising, PR, Brand loyalty Personal Selling for distribution Ads decrease. Sales Promotion, Personal SellingReminder & Persuasive AD/PR decrease Limited Sales Promotion, Personal Selling for distribution Chapter 16

37. Target Market Characteristics FOR: • Widely scattered market • Informed buyers and geographically dispersed • Repeat buyers Advertising Sales Promotion Less Personal Selling Chapter 16

38. Routine Advertising Type of Buying Decision affects Promotional Mix Choice Sales Promotion Advertising Not Routine or Complex Public Relations Complex Personal Selling Type of Buying Decision Chapter 16

39. Available Funds • Trade-offs with funds available • Number of people in target market • Quality of communication needed • Relative costs of promotional elements Chapter 16

40. PUSH STRATEGY Manufacturer promotes to wholesaler Wholesaler promotes to retailer Retailer promotes to consumer Consumer buys from retailer Orders to manufacturer PULL STRATEGY Manufacturer promotes to consumer Consumer demands product from retailer Retailer demands product from wholesaler Wholesaler demands product from manufacturer Orders to manufacturer Push and Pull Strategies Chapter 16

41. Advantages of Personal Selling • 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 in obtaining sales and gaining satisfied customers Chapter 16

42. Personal Selling is more important if... Advertising & Sales Promotion are more important if... Product has a high value Product has a low value Product is custom made Product is standardized Product is technically complex Product is simple to understand There are few customers There are many customers Customers are concentrated Customers are geographically dispersed Personal Selling Chapter 16

43. 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. Chapter 16

44. Focus: Building Mutual Trust Long-Term Value-Added Benefits to Buyer Relationship Selling Chapter 16

45. Relationship Selling Traditional Personal Selling Sell products Sell advice, assistance, counsel Focus on closing sales Focus on customer’s bottom line Limited sales planning Sales planning is top priority Discuss product Build problem-solving environment Assess “Product-specific” needs Conduct discovery in scope of operations “Lone wolf” approach Team approach Pricing/product focus Profit impact and strategic benefit focus Short-term sales follow-up Long-term sales follow-up Relationship Selling vs. Traditional Selling Chapter 16

46. Sales Process The set of steps a salesperson goes through in a particular organization to sell a particular product or service. Chapter 16

47. 1. Generate Leads 7 Basic Steps in the Personal Selling Process 2. Qualify Leads 3. Probe Customer Needs 4. Develop Solutions 5. Handle Objections 6. Close the Sale 7. Follow Up 7 Steps in the Selling Process Chapter 16

48. Advertising Publicity Direct Mail/ Telemarketing Trade Shows/ Conventions Web Sites/ Internet Referrals Networking Cold Calling Company Records Sources ofSales Leads Generating Leads Chapter 16

49. Characteristics of Qualified Leads Recognized Need Receptivity & Accessibility Buying Power Qualifying Leads Chapter 16

50. Product or service Salesperson must know everything about... Customers and their needs Competition Industry Assessing Needs Chapter 16