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:– – – – –

Sales Promotion

• Deciding what specific tools to use:– – – – –

Consumer Promotions

• Goals:– – – – –

Consumer Promotions

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

Trade Promotions

• Goals:– – – –

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 …– Consumer promotion to…

• Growth– Trade promotions to …– Consumer promotions to …

• Maturity– Trade promotions to …– Consumer promotions to …

Public Relations

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

• Goals:– – – –

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– – – – – –

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

–

–

–

–

– Qualify prospects• Screen out poor leads

–

–

–

The Sales Process

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

• • • • •

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

• • •

The Sales Process

3. Sales presentation• Approaching the prospect

• • •

• Presenting and demonstrating• • •

• Dealing with resistance and objections

The Sales Process

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

• Valid and invalid objections• Techniques for handling objections

– – – – –

• Strive for a win-win outcome

The Sales Process

• Sales presentation (continued)– Close

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

– – –

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, preapproach, presentation, and post-purchase services.