www.laurea.fi

Marketing communications

Personal Selling, Sales Promotion, Public

Relations, Publicity and Sponsoring

Tuija Marstio Lohja 6.2.2014

Personal selling is an exchange of values

• It is not something you do to someone, it’s

something you do for and with someone

• Selling starts by selling your personality

”Personal selling is the process of informing

customers and persuading them to purchase

products through personal communication in and

exchange situation.” (Dibb et al. 1998)

• Two-way communication

• Tailored messages

• Minimised disturbances

• Salesperson involved in the decision-making

process

• Tool for gathering market research / customer

data

Advantages of Personal Selling

• Identical message cannot be repeated

• Conflicts between salespeople and sales

management

• Expense

• Poor coverage

Disadvantages of Personal Selling

Tasks of a Salesperson

• Communication

• Sales

• Relationship management

• Teamwork

• Database tasks

(Vuokko, 2003)

Stages of Selling

1.Mapping and seeking customers

2. Needs assessment

3. Preparation for the sales

situation

4. Sales negotiation

5. Offer

6. Closing the sale

7. Follow-up

How has the role of a salesperson changed in the era of digitalization?

What new qualities should he/she have?

Reflection: New qualities of a sales person

Sales Promotion

(Vuokko, 2003)

Sales Promotion

Sales promotion: offering incentives to members of the

distribution chain, sales organisation and consumers

that increase the sale of products and services

- Only succeeds if the additional advantage

brings some value to the target group

(Vuokko, 2003)

Objectives

1. To increase sales

2. To develop new sales leads

3. To gain trade acceptance from retailers

4. To move excessive stock

Manufacturer

Sales staff

Distribution channel members

Consumer

Retail

promotion measures

Promotional measures targeted at sales

staff

Consumer

promotions

Pro

moti

ons

targ

ete

d a

t th

e

dis

trib

uti

on c

hain

Sales Promotion Targets and Forms

(Vuokko, 2003)

Sales Promotion Measures

- Own Sales Organisation

(Vuokko, 2003)

1. Meetings, information and training events,

bulletins that provide information for sales staff

2. Sales support material

3. Sales competitions with an award

SP Methods - Members of the

Distribution Chain

(Blythe, 2006; Vuokko, 2003)

1. Informing about e.g. products, upcoming campaigns,

company plans

2. Training events, sales meetings, company visits

3. Industry fairs and exhibitions

4. Systems that facilitate the order process

5. Reductions

6. Support for product placement

7. Freebies, promotional gifts

8. Sales competitions, bonuses, incentives

9. Campaign support, joint marketing

10. Retail material: product leaflets, posters, stands

SP targeted at Consumers

(Blythe, 2006; Vuokko, 2003)

1. Reductions, reimbursements for unsatisfied customers

2. Complementary gifts, bonus packages

3. Free samples, trial offers

4. Customer loyalty programmes

5. Extra equipment, additional advantages

6. Promotional gifts, promotional goods

7. Competitions, prize draws

8. Demonstrations, tastings; the organiser of the tasting being

present increases efficiency

9. Fairs, exhibitions, presentations

10. In-store advertising; e.g. in-store TV, posters

- In what kind of situations the sales promotion does not work?

- What can be the pitfalls of sales promotion ?

Reflection: If Sales Promotion Does Not Work

Free Ladas boost sales by 36 %

(Smith & De Zoek, 2011)

Examples of creative sales promotion

(Smith & De Zoek, 2011, Blythe, 2006)

The Sunday Sport offered a free test kit that

helped readers to determine whether their

mother-in-law were, in fact, aliens. The

paper sold out within hours

Opening of the

Ramada Hotel in

Manchester

Public Relations

= Means of creating goodwill value for a company

- Aiming to gain and maintain the understanding and

support of the stakeholders that the organisation

depends on or is interested in.

(Blythe, 2006; Vuokko, 2003)

• PR is about creating images, not making

sales

• PR is a long-term activity, with long-term

pay-offs

PR Measures impacting Internal

Stakeholders

(Vuokko, 2003)

Seeking to make staff feel it is an essential part of the

company. Aiming for a feeling of togetherness,

commitment to the company, work motivation, and staff

awareness of organisational issues

Means:

Open communication

Creating a feeling of ”you are important to us”

PR measures Impacting External

Stakeholders

(Vuokko, 2003)

Target groups include customers, suppliers,

subcontractors, funders, media, authorities, trade

associations and the general public. The aim is to create

a positive attitude towards the company.

Means:

'Open house' events, openings

Arranging company visits for different stakeholders

Extranet e.g. with raw material distributors

Lobbying

The Body Shop requires all its franchise

operations to run projects to benefit their local

communities.

This gives a positive image of the company to the

community.

Maslow’s hierarchy of needs

The hierarchy of organisational needs by Pearson

Requirements Typical PR activityOrganisational

need

Output Money, machines,

manpower, materials Staff programmes to attract the right people

Survival Cash flow, profits,

customers Publicity aimed at customers; events

publishing the firm and its products

Morale Employee job

satisfaction Staff newsletters, morale boosting activities,

staff parties etc.

Acceptability Approval by the

external stakeholders External PR, shareholder reports, lobbying,

events for suppliers and customers,

favourable press releases

Leadership Havind a respected

position in the

company’s chosen

field

Corporate-image building exercises,

customer-care activities, sponsorship of

research in universties, publicity about new

products etc. (Blythe, 2006)

Publicity

= Conscious effort to gain "free" time or space

in the media for positive news or other stories about the

company

- Uncontrollable: ultimately, the media decides

what types of news it creates on the basis

of a press event or press release

- Large target group, general public

- Important to also be able to handle negative publicity

(Vuokko, 2003)

Reputation management

- or can it be managed?

• Identity forms basis for reputation

• What ever you decide to do be prepared to discuss it

in an interview.

• Negative reputation can have a direct correlation to

disappearing clients

• At the same time transparency can be a very positive

force for marketing and for building a good

reputation

(Aula & Mantere, 2005;Keskinen, Lipiäinen, 2013)

A company with good reputation

- Attracts emplyees

- Attracts investors

- Influence on decision making of the

buyers > a competitive edge

- Stands out from the crowd

(Aula & Mantere, 2005)

CASE Southwest Airlines

- SA planned to move on free seating instead of the

fixed seats to be reserved in advance > negative

feedback through the blog

> General Director Gary Kelly replied

via blog to inform that

the plan was abandoned

Case Nestlé

• Nestle informed, that it will delete all

comments with a modified logo.

• Nestlé: ” Thank you for the lessons of

good conduct….But this is our site and we

define the rules.”

• More than 100 000 FB-fans followed the

discussion in real time. Apart from

destroying the rain forests the company

was now being accused also for

censorzhip

33

Reflection: How to calm down the

rage online ?

- Have an emergency plan for online-fuzz: who to

contact, how to decide on actions, who replies, etc.

- Precaution: keep the loyal customers active online

- Clarify the situation: what has happened?

- Apologize if there is a reason

- React asap

- Respond always in a constructive way

Sponsoring

= Hiring and exploiting a certain person, group, event or

other activity, for defined marketing communication

purposes

- The main aim is to achieve media publicity and

visibility as well as to support product development

- ”Companies want to show they are good corporate

citizens”

- Important to define the purpose of sponsoring and the

expected return from the sponsor

(Vuokko, 2003)

Most Popular Areas of Sponsoring:

(KL 29.9.11, Sponsorointibarometri 2010)

SPORTS (60%)

- Team sports, youth sports, sports events (ice-hockey 19%)

CULTURE (13%)

- Art events, art institutions,

entertainment events, individual

artist

OTHER (27%)

- Society

- Education

- Social welfare

- Environment (e.g. Baltic Sea)

- Television, radio, film

- Science

Sponsoring and Brand Building

= Linking the brand commercially to the object of

sponsoring

- Aims for a long-term

effect

(Aaker, 2000)

1. Mobilises the

organiser

BUILDING

BRANDS

THROUGH

SPONSORING

2.Offers an

experience

3. Introduces new

products or

technology

4. Creates brand

visibility

5. Develops brand

associations

6. Integrates the

brand into the link

between the event

and customer

1. Mobilising: Employees are proud to be connected to e.g. an

interesting event. Emotional advantages become increasingly strong

when employees take part in events.

2. Offering an experience to customers: A unique way to reward key

customers – receive box seats for the Opera Festival. Annual

experience: belonging to a ”brand family” - enhancing customer

loyalty. Membership in exclusive customer group.

3. Introducing new products: Aiming for media publicity through

sponsoring. E.g. presenting a new product at an event.

4. Creating visibility:

Measuring: Brand recognition before and after the event, number of

times sponsoring was mentioned, how many people see

5. Developing associations: Brand – Sponsor – Desired association

(triangle)

6. Link between event and customer: - impacts a sense of

identification: The object of sponsoring is an important part of life

and means for expressing one's identity. The public enjoys the event,

and this experience is transferred to the brand.

(Vuokko, 2003)

Sponsoring company

Sponsored area

Support,

e.g. support

advertising

Media

coverage

Final target group

Sponsoring as a

means of

communication

Sponsoring

return

Kauppalehti 16.10.2008:

”Olvilla on toisenlaiset tavoitteet”

• Hartwall: Jokerit

• Koff: HIFK

• Olvi: Tappara ja Kalpa

• Olli Heikkilä, Brand and Communications

Director at Olvi: ”We've tried take care of

what's most important. Finding workforce

cannot be taken for granted even in our

case…”

→ 80% of sponsorship funds to Ylä-Savo

region

”Treading one's own path creates respect”

• Energy company St1 gained wide

appreciation when it began to

sponsor skiing after the doping

scandal of 2001

• - ”Skiing gives us a foothold in

the whole of Finland, close to our

local branches.”

(Ekonomi 2/2009)

43

References:

• P. Aula & S. Mantere, 2005. Hyvä yritys – strateginen maineenhallinta;

• D. Aaker & E. Joachimsthaler, 2000: Brändien johtaminen;

• J. Blythe,2006: Essentials of Marketing Communications;

• T. Keskinen & J. Lipiäinen, 2013: Asiakkaan matkassa;

• T. Rope, 2005: Suuri Markkinointikirja;

• P. Vuokko, 2003: Markkinointiviestintä – merkitys, vaikutus, keinot;

• PR Smith 6 De Zook, 2011.Marketing Communications