Public Relations, Sales Promotion, Personal Selling

Public Relations

• Attempts to influence the attitudes and perceptions of consumers, stockholders, and other stakeholders toward companies, brands, politicians, celebrities, not-for-profit organizations

• Do something good, then talk about it

Objectives of Public Relations• Introducing new products to manufacturers

• Introducing new products to consumers

• Influencing government legislation

• Enhancing the image of a city, region, or country

• Calling attention to a firm’s involvement with the community

Planning a PR Campaign

Develop Objectives

Execute the PR Campaign

Evaluate the Campaign

PR Campaign Strategy

• Statement of objectives• Situation analysis• Specification of target audiences, messages

to be communicated, specific program elements to be used

• Timetable and budget• Discussion of how the program will be

evaluated

Press Release Types

• Timely topics

• Research project stories

• Consumer information

Sponsorships

• PR activities through which companies provide financial support to help fund an event in return for publicized recognition of the company’s contribution

• Examples:– Olympics– NASCAR

Measuring Effectiveness of PR Efforts

• In-house assessment

• Awareness and Preference Studies

• Counting of press clippings

• Impression counts

Sales Promotion

• Programs that marketers design to build interest in or encourage purchase of a product or service during a specified time period

Sales Promotions by Target• Consumers (pull)

– Coupons

– Samples

– Contests

– Bonus packs

– Premiums

– Rebates

– Frequency programs

– Brand placement

• Trade (push)– Trade shows

– Incentive programs

– POP displays

– Push money

– Promotional products

– Cooperative promotions

Brand Placements

• Practice of integrating specific products and brands into filmed entertainment– name brand product is used as a prop or set in TV show

or movie– increase brand awareness and image

• 3 types of brand placements– visual - brand can be observed on set– verbal - actor mentions brand by name– hands-on - actor uses or interacts with product

Sales promotion alternativesSales promotion alternatives

Personal Selling

• Occurs when a company representative contacts a prospect directly regarding a product

• Critical for many push strategies, B2B products, products that are complex and expensive, and product requiring a “personal touch”

Types of Salespeople

• Order takers

• Technical specialists

• Missionary salespeople

• Team selling

• Order getters

How outside order-getting salespeople spend their How outside order-getting salespeople spend their time each weektime each week

Approaches to Personal Selling

• Transactional Marketing: The Hard Sell

• Relationship Selling– Winning customers– Keeping customers– Developing customers

The Selling Process

Stages and objectives of the personal selling processStages and objectives of the personal selling process

U.S. salesforce composition and changeU.S. salesforce composition and change

Sales Management

• Process of planning, implementing, and controlling the personal selling function– Setting Sales Force Objectives– Creating a Sales Force Strategy– Recruiting, Training, Rewarding Salespeople– Evaluating the Sales Force

The Sales Force Management Process

Organizing the sales force by customerOrganizing the sales force by customer

Organizing the sales force by productOrganizing the sales force by product

Organizing the sales force by geographyOrganizing the sales force by geography

Sales Force Compensation

• Straight commission plan

• Commission-with-draw plan*

• Straight salary compensation plan

• Quota-bonus plan

* Commission draws may or may not be recoverable

Sales Compensation Examples

Category Base Bonus/Commission

Total

Executive $71,693 $36,966 $108,572

TopPerformer

$70,832 $56,687 $125,844

Mid-Level $46,563 $42,515 $88,734

Low-Level $36,906 $20,569 $57,571

Average $53,293 $31,441 $84,004

Sales Compensation by Industry

Industry Compensation

Computer Software and Services

$115,680

Professional Services $87,678

Manufacturing $74,139

Telecommunications $115,576

Sales Incentives

• Leisure trips/ travel

• Merchandise/ gifts

• Recognition dinners

• Plaques/ awards

• Cash

• Cars, memberships, expense treatment