public relations, sales promotion and personal selling

1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13

Prepared byDeborah Baker

Texas Christian University

13 Personal Selling

Public Relations, Sales Promotion and

2Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13

Learning ObjectivesLearning Objectives

1. Discuss the role of public relations in the promotional mix.

2. Define and state the objectives of sales promotion

3. Discuss the most common forms of consumer sales promotion

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Learning Objectives (continued)Learning Objectives (continued)

4. List the most common forms of trade sales promotion

5. Describe personal selling

6. Discuss the key differences between relationship selling and traditional selling

7. List the steps in the selling process

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Learning Objective Learning Objective

Discuss the role of public relations in the promotional mix

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1

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The Role of Public RelationsThe Role of Public Relations

Evaluates public attitudesEvaluates public attitudes

Identifies issues of public concernIdentifies issues of public concern

Executes programs to gain public acceptance Executes programs to gain public acceptance

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Functions of Public RelationsFunctions of Public Relations

Press relations Press relations

Product publicityProduct publicity

Corporate communicationCorporate communication

Public affairsPublic affairs

LobbyingLobbying

Employee and investor relationsEmployee and investor relations

1

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Public Relations ToolsPublic Relations Tools

Product placementProduct placement

Consumer educationConsumer education

Event sponsorshipEvent sponsorship

Issue sponsorshipIssue sponsorship

Internet Web sitesInternet Web sites

New product publicityNew product publicity

5

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Crisis ManagementCrisis Management

Crisis ManagementCrisis Management

A coordinated effort to handle the

effects of unfavorable publicity or of

an unfavorable event.

1

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Learning Objective Learning Objective

Define and state the objectives of sales promotion

Onlinehttp://www.xmradio.com

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2

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Sales PromotionSales Promotion

Onlinehttp://www.on-lineclothingstores.comhttp://www1.coolsavings.com

Sales PromotionSales PromotionMarketing communication activities,

other than advertising, personal

selling, and public relations, in which

.

2

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Sales Promotion ObjectivesSales Promotion Objectives

2

ConsumerSales

Promotion

ConsumerSales

Promotion

Trade Sales

Promotion

Trade Sales

Promotion

Consumer market

Marketing channel

Goal = ??

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Uses of Sales PromotionUses of Sales Promotion

2

Immediate purchasesImmediate purchases

Increase trialIncrease trial

Boost consumer inventoryBoost consumer inventory

Encourage repurchaseEncourage repurchase

Increase ad effectivenessIncrease ad effectiveness

Encourage brand loyaltyEncourage brand loyalty

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Objectives of Sales PromotionObjectives of Sales Promotion

Type of BuyerType of Buyer

Loyal Customers

Competitor’sCustomers

Brand Switchers

Price Buyers

Desired ResultsDesired Results

•Reinforce behavior• Increase consumption•Change timing

•Break loyalty•Persuade to switch

•Persuade to buy your brand more often

•Appeal with low prices

•Supply added value

Sales PromotionSales PromotionExamples Examples

•Loyalty marketing•Bonus packs

•Sampling•Sweepstakes, contests, premiums

•Price-lowering promotion

•Trade deals

•Coupons, price-offpackages, refunds

•Trade deals

2

14Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13

Learning Objective Learning Objective

Discuss the most common forms of consumer sales promotion

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3

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Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

Coupons and RebatesCoupons and Rebates

PremiumsPremiums

Loyalty Marketing ProgramsLoyalty Marketing Programs

Contests & SweepstakesContests & Sweepstakes

Point-of-Purchase PromotionPoint-of-Purchase Promotion

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CouponCoupon

RebateRebate

PremiumPremium

A certificate that entitles consumers to an immediate

price reduction.

A certificate that entitles consumers to an immediate

price reduction.

A cash refund given for the purchase of a product during

a specific period.

A cash refund given for the purchase of a product during

a specific period.

An extra item offered to the consumer, usually in exchange

for some proof of purchase.

An extra item offered to the consumer, usually in exchange

for some proof of purchase.

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

3

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LoyaltyMarketingProgram

LoyaltyMarketingProgram

FrequentBuyer

Program

FrequentBuyer

Program

A promotional program designed to build long-term, mutually

beneficial relationships between a company and key customers.

A promotional program designed to build long-term, mutually

beneficial relationships between a company and key customers.

A loyalty program in which loyal consumers are rewarded for making multiple purchases.

A loyalty program in which loyal consumers are rewarded for making multiple purchases.

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

3

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ContestContest

SweepstakesSweepstakes

Promotions that require skill or ability to compete for

prizes.

Promotions that require skill or ability to compete for

prizes.

Promotions that depend on chance or luck, with

free participation.

Promotions that depend on chance or luck, with

free participation.

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

Onlinehttp://www.sweepstakesonline.com

3

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SamplingSampling A promotional program that allows the consumer the opportunity to try a

product or service for free.

A promotional program that allows the consumer the opportunity to try a

product or service for free.

Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion

3

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Methods of SamplingMethods of Sampling

Direct mailDirect mail

Door-to-door deliveryDoor-to-door delivery

Packaging with another productPackaging with another product

Retail store demonstrationRetail store demonstration

3

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Point-of-Purchase PromotionPoint-of-Purchase Promotion

Goals ofGoals of Point-of-PurchasePoint-of-Purchase DisplaysDisplays

Goals ofGoals of Point-of-PurchasePoint-of-Purchase DisplaysDisplays

Build traffic Build traffic

Advertise the productAdvertise the product

Induce impulse buyingInduce impulse buying

3

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Onlinehttp://www.upromote.com

Online Sales PromotionOnline Sales Promotion

Free merchandiseFree merchandise

SweepstakesSweepstakes

Free shippingFree shipping

3

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Learning Objective Learning Objective

List the most common forms of trade sales promotion

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4

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Tools for Trade Sales PromotionTools for Trade Sales Promotion

Trade AllowancesTrade Allowances

Push MoneyPush Money

TrainingTraining

Free MerchandiseFree Merchandise

Store DemonstrationStore Demonstration

Conventions & Trade ShowsConventions & Trade Shows

4

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Trade AllowanceTrade Allowance

Trade AllowanceTrade Allowance

A price reduction offered by

manufacturers to intermediaries,

such as wholesalers and retailers.

4

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Push MoneyPush Money

Push MoneyPush Money

Money offered to channel intermediaries

to encourage them to “push” products--

that is, to encourage other members of

the channel to sell the products.

4

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The Role of Trade Sales The Role of Trade Sales PromotionPromotion

Improve trade relations

Gain new distributors

Build or reducedealer inventories

Obtain support forconsumer sales promotions

4

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Learning Objective Learning Objective

Describe personal selling55

5

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Advantages of Personal SellingAdvantages of Personal Selling

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Detailed explanation or demonstration

Variable sales message

Directed at qualified prospects

Controllable adjustable selling costs

Effective at obtaining sale and gaining customer satisfaction

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Personal SellingPersonal Selling

Customers are concentrated

Customers are concentrated

Product is technically complex

Product is technically complex

There are few customersThere are few customers

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

Product is simple to understand

Product is simple to understand

There are many customersThere are many customers

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...

5

31Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13

Learning Objective Learning Objective

Discuss the key differences between relationship selling and traditional selling

66

6

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Relationship SellingRelationship Selling

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.

6

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Relationship Selling Relationship Selling versus Traditional Sellingversus Traditional Selling

Sell advice, assistance, counsel Sell products

TraditionalTraditionalPersonal SellingPersonal Selling

Focus on closing sales

Limited sales planning

Discuss productAssess “Product-specific” needs“Lone wolf” approach

Pricing/product focus

Short-term sales follow-up

Focus on customer’s bottom line

Sales planning is top priority

Build problem-solving environmentConduct discovery in scope of operationsTeam approachProfit impact and strategic benefit focusLong-term sales follow-up

Relationship SellingRelationship Selling

6

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Learning Objective Learning Objective

List the steps in the selling process

77

7

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Sales ProcessSales Process

Sales ProcessSales Process

The set of steps a salesperson goes

through in a particular organization

to sell a particular product or service.

7

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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

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Time Spent in Key Steps of Selling Time Spent in Key Steps of Selling ProcessProcess

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

Low High

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Online

http://www.zapdata.com

Generating LeadsGenerating Leads

AdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/

Telemarketing

Cold CallingCold Calling Internet Web Site

Internet Web Site ReferralsReferrals

Trade Shows/Conventions

Trade Shows/ConventionsNetworkingNetworking Company

RecordsCompany Records

7

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Cold CallingCold Calling

Cold CallingCold Calling

A form of lead generation in which the

salesperson approaches potential

buyers without any prior knowledge of

the prospects’ needs or financial status.

7

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Characteristics of Qualified LeadsCharacteristics of Qualified Leads

OnlineSearch for “sales networking clubs”

7

Recognized needRecognized need

Receptivity andaccessibility

Receptivity andaccessibility

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Needs AssessmentNeeds Assessment

Needs AssessmentNeeds Assessment

A determination of the customer’s

specific needs and wants and the range

of options a customer has for satisfying

them.

7

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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...

7

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Developing and Proposing Developing and Proposing SolutionsSolutions

Sales ProposalSales Proposal

Sales PresentationSales Presentation

7

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Powerful PresentationsPowerful Presentations

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Be well prepared

Use eye contact

Ask open-ended questions

Be poised

Use hand gestures and voice inflection

Focus on the customer needs

Incorporate visual elements

Know how to operate the A/V equipment

Make sure the equipment works

PRACTICE, PRACTICE, PRACTICE!

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Handling ObjectionsHandling Objections

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

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Closing the SaleClosing the Sale

NegotiateNegotiate

Keep an open mindKeep an open mind

Look for customer signals

Look for customer signals

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Following UpFollowing Up

Employees are trainedEmployees are trained

Goods or service performas promised

Goods or service performas promised

Ensure delivery schedules are metEnsure delivery

schedules are met

7

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In Summary, We discussed Several In Summary, We discussed Several Important Promotion TasksImportant Promotion Tasks

PR Sale Promotion Personal Selling

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Questions/Answers!!