chapter 12- marketing communication

8/12/2019 CHAPTER 12- Marketing Communication

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MARKETING COMMUNICATION:

PERSONAL SELLING, SALES

MANAGEMENT AND SALES

PROMOTION


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Promotionis applied marketingcommunication.

In the marketing mix, promotion servesthree purposes:

1. To Inform. Promotion provides factsabout the product and places where to

avail of the product. 2. To Persuade. Promotion encourages a

buyer to buy a product or to change hisattitude about the product.

3. To Remind. Promotion remindsconsumers to regularly buy a product.


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THE ELEMENTS OF PROMOTION

There are five elements of promotion: personalselling, advertising, publicity, public relations and

sales promotion.

These promotional strategies use three general types

of communication media:

1. Direct Human Communication. This is usually on a

face- to- face basis or on the telephone.

2. Indirect Communication. This is via a medium such

as radio, television, magazines, and newspapers.

3. Interactive Communication. This is making use of

some electronic medium such as the internet.


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PERSONAL SELLING

PERSONAL SELLING is the direct

presentation of a product or service to

a prospective customer by sales

representative of the company selling

it.

It is the most flexible means of

delivering a promotional message.


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Scope of Personal Selling

There are two kinds of personal selling:

1. Inside's selling- involves retail-store selling.

o It also includes employees who take orders over

the telephone. 2. Outside Selling- involves sales people going to

the customers.

o They make contact with customers by mail,

telephone, e-mail, or field selling where the salesperson sells at a customer's place of business orhome.


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Classification of Sales Persons

Seven types of sales persons fall under two

groups:

ORDER TAKERS

1. DELIVERY SALES PERSON

This sales person primarily delivers the

product. Few of these sales person do the actualselling. Usually, they take and fill orders.


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2. INSIDE ORDER TAKER

- This sales person takes orders at the seller'splace of business. The job of the salesperson's is

to serve them efficiently.3. OUTSIDE ORDER TAKER

- This salesperson goes to the customer in the

field and accepts an order. Most of the salesmade but outside order takers are repeat ordersof regular customers.


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MISSIONARY SALESPERSON

- This salesperson is not expected to take an order.

His job is to build goodwill, perform promotionalactivities and provide information and other

services for the customers. SALES ENGINEER

- This salesperson sells complex or technically

sophisticated products. The salesperson has the

ability to clearly explain the product to aprospective customer and adapt the product to thecustomer's needs.


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ORDER GETTERS

6. CREATIVE SALERSPERSONThis salesperson is involved in the creative

selling of goods, both tangible and intangibles.

Creative selling involves designing a system to fitthe needs of a particular customer.

7. PROFESSIONAL BUSINESS DEVELOPMENT

The responsibility of the salesperson is tobring in new business.


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The Creative Selling Process

Is a series of steps that provide guidelines for

the salesperson.

It is an adaptive process that begins with the

identification of potential customers and

tailors the sales presentation and product

offering to each prospect's needs.

The ultimate goal is customer satisfaction.


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Seven Steps in the Creative

Selling Process

Step One: LOCATING QUALIFIED PROSPECTS

Locating prospects is called PROSPECTING. Itconsists of Identifying prospective customers andqualifying necessary purchasing power, authority tobuy, and the willingness to buy.

Step Two: PRE- APPROACH PLANNING

This step involves gathering and evaluatinginformation about the prospect's situation. Thesalesperson needs to know the prospect'srequirements and any other relevant informationthat might help make the sale.


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Step Three: THE APPROACH

The approach involves making an initial

contact and establishing rapport with the

prospect.

The approach is intended to make a good

impression, attract the prospect's attention, and

ensure the prospect's willingness to listen to the

sales presentation.


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Step Four: THE SALES PRESENTATION

This is the salesperson's attempt to

persuasively communicate the products benefitsand explain appropriate courses of action to the

potential buyer.

An effective sales presentation tells theproduct "story".

This step can be explained by the acronym

AIDA that stands for Attention, Interest, Desire,and Action.


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A- attract Attention

The first task in a sales presentation is toattract the prospect's attention and to generate

curiosity.I- arouse Interest

The sales representative holds the prospects

attention and stimulates an interest in theproduct. The salesperson needs to show howthe product will benefit the prospect.


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D- create a Desire

Interest and desire for the product areestablished in a nearly simultaneous steps. There

are no definite pattern in these two steps but often,a product demonstration helps create a desire forthe product.

A- call for Action

After creating a desire, the sales representativenow moves into action by urging the prospect to

place an order.


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Step Five: HANDLING OBJECTIONS

Because objections explain reasons forresisting or postponing the buying decision, the

salesperson needs to listen and learn fromthem.

A salesperson who encounters an objection

can provide additional persuasive information,clarify the sales presentation, or offer the basicargument for the product in a different manner.


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Step Six: CLOSING THE SALE

In selling, the term closing indicates that thesale is being brought to a finish.

When the prospect's willingness to close is notclearly revealed, the salesperson may utilizewhat is called the trial close.

A Trial Close is a tactic indented to draw fromthe prospect information that will signalwhether a sale is near.


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Step Seven: THE FOLLOW UP

The closing of a sale must not be viewed as theend of the process but the start of the company's

relationship with a customer.The best way to keep customers it to follow upafter the sale.

During the follow-up, the salesperson makes sure

that everything has been handled as promised andthat the order was shipped promptly and received

on schedule in good condition.


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SALES MANAGEMENT

Is a marketing activity

dealing with planning,

organizing, directing, and

controlling the personal

selling effort.

Members of the sales force

are managed so that theirefforts are directed toward

organizational goals


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A sales manager is responsible for:

1. SETTING SALES OBJECTIVES

should be precise and quantifiable and shouldinclude a reasonable time frame given the

organization's resources, its overall promotional

strategy , and the competitive environment in

which it operates.


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2. ORGANIZING THE SALES FORCE

Since non-retail sales forces must regularly

contact their customers either face-to-face or by

telephone, sales departments are generally

organized so that sales personnel are responsible

for certain accounts.3. RECRUITING AND SELECTING SALES PERSONNEL

Recruiting starts with finding and hiring

individuals for sales positions in the company. Thetask of the sales manager is to get the right person

for the job.


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4. TRAINING THE SALES FORCE

Training of sales personnel is a continuousprocess.

Companies may send a newcomer to the fieldwith an experienced sales person or put the recruitthrough an intensive training program.

5. DEVELOPING AN EFFECTIVE COMPENSATIONPLAN

There are several ways of compensating the salesforce:

a. Straight Salary - this is an hourly or daily wageplan not tired to sales performance.

b. Straight Commission - this is payment tied tospecific units of sales performance.


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c. Quota-Bonus plan - in this method, each

salesperson is assigned a sales quota, that is a

specific level of sales to be achieved over a

specific period.

d. Salary Plus Commission - this compensation

plan combines two pay methods by granting the

salesperson a straight salary and a commissionon sales.


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6. MOTIVATING THE SALES FORCE

Many corporations use the element of sales

promotion such as sales contests, bonus plans,

prizes and trips to be won, and sales conventions

held nationally or internationally to keep sales

motivation high.7. EVALUATING AND CONTROLLING THE SALES

FORCE

Evaluation of a sales manager's or a sales

representative's performance is based on whether

he or she has met the appropriate goal or objective.


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SALESPROMOTION

Is a marketing device used tostimulate demand and facilitatepersonal selling.

There are two categories of

sales promotion: a.Trade Promotions- which are

geared towards the members ofthe distribution channel such as

the wholesalers and retailers. b. Consumer Promotions- which

are aimed at consumers.


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Sales Promotions Geared towards

Wholesalers and Retailers

1. TRADE SHOWS

The typical trade shows features booth where

producers, suppliers, and other marketers

display and provide information about their

products.

2.CONTESTS

Competition, stimulated by the chance to win

bonuses or prizes, helps increase the sale level.


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3. DISPLAY EQUIPMENT AND POINT-OF-PURCHASEMATERIALS

Display equipment such as dispensers and other

point-of-purchase materials are provided toretailers and wholesalers so that they canconveniently display or highlight the product to besold.

4. COOPERATIVE ADVERTISING AND PROMOTIONSuppliers share promotional expenses with theirretailers or wholesalers.

5. ALLOWANCES

are reduction in price, a rebate, merchandise, orany token given a retailer or wholesaler inconsideration for a large order.


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Sales Promotions Aimed At

Ultimate Consumers

1. PRODUCT SAMPLING

New customers are given a sample of the

product for the trial use.

2. COUPONS

Coupons have an attention-getting quality and

are often found as portions of print

advertisement, inserts in newspapers, or printed

on packages or placed inside packages.


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3. REBATES

With a rebate, a consumer gets money back from themanufacturer. It is a price reduction designed to induce

immediate purchase.4. CONTESTS AND SWEEPSTAKES

Contests and sweepstakes stimulate purchases bygiving consumers a chance to be big winners.

5.PREMIUMSA premium is a product offered free or at a reducedprice when another product, the key brand, is brought.

6. MULTIPLE-PURCHASE OFFERS

Multiple-purchase offers, such as offering threeproducts for the price of two, encourages bigger thannormal purchase and helps maintain customer loyalty.


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7. POINT-OF-PURCHASE MATERIALS

Banners, pamphlets, coasters, and other similarproducts may be used to provide information at the point

of purchase.8. PRODUCT PLACEMENTS

When a certain product brand is worn or used by acelebrity in a movie or television show, a very positive

message is communicated in a non-commercial setting.9. SALES PROMOTION TIE-INS

A tie-in involves a collaborative effort between two ormore companies that work as partnered in a promotionalundertaking.

Tie-ins generally borrow interest value from movies,sporting events or other marketing efforts.

chapter 12- marketing communication

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