managing marketing communications
TRANSCRIPT
Lecture 14Managing marketing
communications.Advertising.
Personal selling.
Promotional mixPromotional mix• Advertising• Personal sales/selling• Sales promotion• PR• (Direct marketing)
Sales Promotion
Promotion: extended mix
Role of the promotional mix
To whom should we communicate?
How shall we evaluate the effect?
What should we communicate?
How should we communicate?
When should we communicate?
From whom do we want
communication?
How shall we judge the value?
What do we want in the
communication?
How do we want to be communicated
with?
When do we want communication?
Tools of the marketing promotional/communications
mix• The tools of the marketing The tools of the marketing communications mix are deliberately communications mix are deliberately selected for their ability to attract selected for their ability to attract customers, fulfill their desire for customers, fulfill their desire for information and ultimately persuade them information and ultimately persuade them to adopt the products.to adopt the products.
• They include They include advertising, sales advertising, sales promotions, public relations, direct and promotions, public relations, direct and interactive marketing communications interactive marketing communications and personal selling. and personal selling. Nowadays two more Nowadays two more tools – tools – direct marketingdirect marketing and and sponsorshipsponsorship are sometimes addedare sometimes added
‘‘Relative importance of Promotion Relative importance of Promotion Tools in Consumer versus Industrial Tools in Consumer versus Industrial
Markets’Markets’
Consumer goods
Promotional mix vs. Promotional mix vs. Communication mixCommunication mix• Actually, there is a very slight
difference between these two terms “promotional mix” and “communication mix”
• Although some marketers attribute different methods to “promotional mix” and “communication mix”
• Thus, direct marketing can refer to “communication mix”, while personal selling/sales to “promotional mix”
Corporate business objectives
Marketing objectives
Marketing strategy
Communications objectives
Communications strategy
Advertising objectives
Advertising strategy
Creative objectives
Creative strategy
Media objectives
Media strategy
Promotional Promotional operations and the operations and the planning frameworkplanning framework
Aims and objectives of the promotional Aims and objectives of the promotional communications processcommunications process
• Category needs Category needs
• Brand Brand awarenessawareness
• Brand attitudeBrand attitude
• Brand purchase Brand purchase intention intention
• Purchase Purchase facilitationfacilitation
• The perception and understanding The perception and understanding of the actual customer needsof the actual customer needs
• The ability of the consumer to The ability of the consumer to identify and associate with a identify and associate with a particular brand and differentiate particular brand and differentiate from another brand from another brand
• This relates to the consumer's This relates to the consumer's particular observations, view and particular observations, view and perceptions of the brand - cognitive perceptions of the brand - cognitive beliefs beliefs
• Once the category needs have been Once the category needs have been identified, the brand purchase identified, the brand purchase intention follows intention follows
• The purchase activity needs to be The purchase activity needs to be facilitated by the organization, by facilitated by the organization, by ensuring that the product is ensuring that the product is available at the right price and the available at the right price and the right place - this in essence is the right place - this in essence is the manifestation of the co-ordinated manifestation of the co-ordinated marketing mix.marketing mix.
Possible communications Possible communications objectivesobjectives • Clarification of customer needs
• Increasing brand awareness• Increasing product knowledge • Improving brand image• Improving company image• Increasing brand preference• Stimulating search behaviour• Increasing trial purchases• Increasing repeat purchases• Increasing word-of-mouth recommendation• Improving financial position• Increasing flexibility of the corporate image• Increasing co-operation from the trade• Enhancing the reputation with key stakeholders• Building up management ego.
Co-ordinated/Integrated marketing communications
• Co-ordinated marketing communications is Co-ordinated marketing communications is growing in importance in marketing today as growing in importance in marketing today as more and more organizations realize the more and more organizations realize the importance of taking a more structured, ordered importance of taking a more structured, ordered and integrative approach to their marketing and integrative approach to their marketing communications activities.communications activities.
• In the simplest form, it involves the integration In the simplest form, it involves the integration and cohesion of all elements of the marketing and cohesion of all elements of the marketing mix. mix.
• A campaign that is co-ordinated is planned, it is A campaign that is co-ordinated is planned, it is uniform in terms of its design, and it shares a uniform in terms of its design, and it shares a unique selling proposition (USP) and unique selling proposition (USP) and communicates the same message in a co-communicates the same message in a co-ordinated way. ordinated way.
• By combining more than one element of By combining more than one element of promotion, the message that is communicated is promotion, the message that is communicated is more powerful.more powerful.
IMC: exampleIMC: example• Walkers and Crisps have been involved Walkers and Crisps have been involved
in implementing a co-ordinated in implementing a co-ordinated campaign. campaign.
• This has been on both TV and poster This has been on both TV and poster advertising. advertising.
• In addition to that, they are developing a In addition to that, they are developing a consistent approach to advertising, using consistent approach to advertising, using key personalities to identify with their key personalities to identify with their products. products.
• As a result of this, Walker's market grew As a result of this, Walker's market grew by 21 per cent, while the crisp market by 21 per cent, while the crisp market generally rose only by 11 per cent.generally rose only by 11 per cent.
The driving forces of integrated The driving forces of integrated marketing communicationsmarketing communications
• Co-ordinated marketing communications often Co-ordinated marketing communications often means different things to different people, but in means different things to different people, but in the main the view is that it should embrace the the main the view is that it should embrace the marketing mix, the promotional mix, internal marketing mix, the promotional mix, internal communications and all those who contribute to communications and all those who contribute to the overall marketing communications process. the overall marketing communications process.
• This means that PR, advertising, direct mail, This means that PR, advertising, direct mail, trade promotions, consumer promotions, trade promotions, consumer promotions, packaging, point-of-sale signage, brochures, packaging, point-of-sale signage, brochures, literature, merchandize, websites and literature, merchandize, websites and sponsorship all have their own individual role, sponsorship all have their own individual role, but all achieve the corporate and marketing but all achieve the corporate and marketing objectives for the brand.objectives for the brand.
The driving forces of co-The driving forces of co-ordinated marketing ordinated marketing
communicationscommunications• Communication-based driversCommunication-based drivers
include technological advances include technological advances such as the Internet, databases, such as the Internet, databases, new segmentation techniques, new segmentation techniques, message effectiveness, more message effectiveness, more consistent brand images and the consistent brand images and the need to build brand reputations need to build brand reputations to provide clear identities.to provide clear identities.
AdvertisingAdvertising • Advertising is one of the most Advertising is one of the most
influential forms of communication influential forms of communication within the promotional mix, and the within the promotional mix, and the one that perhaps has the most impact one that perhaps has the most impact upon our everyday lives. upon our everyday lives.
• It does not matter where we go during It does not matter where we go during a day, it is likely that we are a day, it is likely that we are bombarded either by radio, billboard, bombarded either by radio, billboard, TV, cinema or by banner advertising on TV, cinema or by banner advertising on a regular basis.a regular basis.
Advertising: a definition•Advertising is a paid form of Advertising is a paid form of
non-formal communication non-formal communication that is transmitted through that is transmitted through mass media such as mass media such as television, radio, newspapers, television, radio, newspapers, magazines, direct mail, public magazines, direct mail, public transport vehicles, outdoor transport vehicles, outdoor displays and the Internetdisplays and the Internet.
Advertising and the marketing mix
• Advertising is used to support many Advertising is used to support many elements of the marketing mix, but in elements of the marketing mix, but in most instances the product and brand are most instances the product and brand are the key focus to advertising activities.the key focus to advertising activities.
• Advertising for both distribution and Advertising for both distribution and retailing is very much related to the retailing is very much related to the “push” and “pull" strategies that we “push” and “pull" strategies that we discussed earlier. discussed earlier.
• Advertising is focused on encouraging Advertising is focused on encouraging retailers to stock their products. retailers to stock their products.
Advertising objectives• Promoting product, organizations and Promoting product, organizations and
servicesservices• Stimulating demand or productsStimulating demand or products• Competing - offensive/defensive advertisingCompeting - offensive/defensive advertising• Increasing sales - growthIncreasing sales - growth• Educating the market- brand and product Educating the market- brand and product
awarenessawareness• Increasing the use of product and services - Increasing the use of product and services -
market developmentmarket development• Reminding and reinforcing - market Reminding and reinforcing - market
penetrationpenetration• Reducing fluctuationsReducing fluctuations
Creating awareness vs. Creating awareness vs. creating salescreating sales• However, there is a fine However, there is a fine line between line between
advertising to create sales and advertising advertising to create sales and advertising to create awarenessto create awareness and each of these will and each of these will require a different approach in order to require a different approach in order to achieve the long-term goals of the achieve the long-term goals of the organization.organization.
• It is quite clear that one of the key tools of It is quite clear that one of the key tools of the marketing communications mix to the marketing communications mix to support the sale of products is advertising. support the sale of products is advertising. This is particularly so for consumer-based This is particularly so for consumer-based products, where advertising serves to products, where advertising serves to create an awareness of the product, its create an awareness of the product, its characteristics, its image and buying characteristics, its image and buying habits.habits.
Functions of Advertising •To inform•To persuade•To sell
To inform Telling the market about a new productSuggesting new users for a productInforming the market of price changeExplaining how the product works
Describing available servicesCorrecting false impressionsReducing consumer’s fearsBuilding a company image
To persuade Building new preferencesEncouraging switching to your brandChanging customers’ perception of product attributes
Persuading customer to purchase nowPersuading customer to receive a sales call
To remind Reminding consumers that the product may be needed in the near futureReminding consumers where to buy it
Keeping in their minds during off seasons Maintaining its top-of-mind awareness
Types of Advertising
•Pioneer advertising•Competitive advertising•Comparative advertising
Pioneer advertising• This serves to inform consumers about the This serves to inform consumers about the
existence of a new product category. existence of a new product category. • The purpose of such activity is to stimulate The purpose of such activity is to stimulate
primary demand for a product which was primary demand for a product which was previously unknown in the marketplace, rather previously unknown in the marketplace, rather than identifying the particular attributes of a than identifying the particular attributes of a specific brand. specific brand.
• However, many new products are specifically However, many new products are specifically introduced by manufacturers with a strong introduced by manufacturers with a strong branding presence, in the hope that they will branding presence, in the hope that they will continue to 'own' the category even when joined continue to 'own' the category even when joined by other, similar products. by other, similar products.
• The portable tape player continues to be known The portable tape player continues to be known as the 'Walkman' even though it is manufactured as the 'Walkman' even though it is manufactured by several companies other than the originator, by several companies other than the originator, Sony.Sony.
Competitive advertising• This seeks to persuade consumers of the This seeks to persuade consumers of the
particular benefits and advantages which particular benefits and advantages which derive from a particular brand. derive from a particular brand.
• The intention is to increase selective demand The intention is to increase selective demand by providing information regarding the by providing information regarding the product attributes and benefits which may product attributes and benefits which may not be available from competitive products, not be available from competitive products, or, even where the attributes are shared, to or, even where the attributes are shared, to create the impression that they are the create the impression that they are the 'property' of the advertised brand. 'property' of the advertised brand.
• Intel, the manufacturers of computer chips, Intel, the manufacturers of computer chips, have used this approach to successfully brand have used this approach to successfully brand a component within another manufacturer's a component within another manufacturer's product with such success that it is almost product with such success that it is almost impossible to sell a computer without 'Intel impossible to sell a computer without 'Intel inside' in the mainstream market.inside' in the mainstream market.
Comparative advertising
•This relates to specific campaigns This relates to specific campaigns which directly compare one which directly compare one product's attributes with those of product's attributes with those of its competitors. its competitors.
•Many campaigns now directly Many campaigns now directly name competitors and make overt name competitors and make overt comparisons between the various comparisons between the various products/ services offered or prices products/ services offered or prices charged, in order to develop a charged, in order to develop a competitive advantage. competitive advantage.
Types of advertising
•Primary •Selective product or service
•Product or service range
•Institutional
Primary advertising• The objective with primary advertising The objective with primary advertising
is to stimulate a demand for a particular is to stimulate a demand for a particular product or service product or service
• For example, primary advertising is For example, primary advertising is used for the launch of an exhibition, a J. used for the launch of an exhibition, a J. K. Rowling Harry Potter novel or a new K. Rowling Harry Potter novel or a new James Bond movie.James Bond movie.
• However this form of advertising is not However this form of advertising is not confined to the B2C market: it is equally confined to the B2C market: it is equally applicable to the B2B market. applicable to the B2B market.
• Trade organisations as well as suppliers Trade organisations as well as suppliers use primary advertising to raise use primary advertising to raise awareness of products and services.awareness of products and services.
Selective product or service advertising
• A manufacturer focuses the advertising A manufacturer focuses the advertising on a single brand without any on a single brand without any reference to its corporate identity. reference to its corporate identity.
• The focus is clearly on the brand and The focus is clearly on the brand and not the brand owner. not the brand owner.
• For example, the various brands owned For example, the various brands owned by Procter & Gamble have their own by Procter & Gamble have their own individual identities. Unless a consumer individual identities. Unless a consumer studied the packaging closely, he or she studied the packaging closely, he or she would not know the brand was owned would not know the brand was owned by or marketed by Procter & Gamble.by or marketed by Procter & Gamble.
Product or service rangeadvertising• Here the focus is on the range of Here the focus is on the range of
products or services available under products or services available under one particular brand name. one particular brand name.
• For example, when Unilever advertises For example, when Unilever advertises its Dove brand, it might either advertise its Dove brand, it might either advertise selective elements of the range, for selective elements of the range, for example, soap, or advertise the full example, soap, or advertise the full brand range from soap to shampoo. brand range from soap to shampoo.
• By advertising the whole range By advertising the whole range Unilever is clearly stating to potential Unilever is clearly stating to potential and current customers that there is a and current customers that there is a Dove product for all their face and body Dove product for all their face and body cleansing needs.cleansing needs.
Institutional advertising• This is advertising that in some This is advertising that in some
way promotes the corporate way promotes the corporate identity, image and values of the identity, image and values of the organisation. organisation.
• The advertisement focused not The advertisement focused not on any one product but on the on any one product but on the diverse areas in which the diverse areas in which the company operated.company operated.
•Gasprom advertising
Types of advertising
•Informative•Persuasive•Reminding
Advertising and the PLCAdvertising and the PLC• At the introductory stage, the fundamental need will
be to create product awareness and to stimulate trial create product awareness and to stimulate trial of the new product.of the new product.
• Once the product has reached the growth stage, it will be important to use advertising to maintain consumer to maintain consumer demand and to ensure that the consumer's attention is demand and to ensure that the consumer's attention is focused on the advantages of the brandfocused on the advantages of the brand relative to its competition.
• In the maturity phase, the advertising will be required to maintain customer loyalty, together with other to maintain customer loyalty, together with other promotional devices, such as sales promotion.promotional devices, such as sales promotion.
• Finally, during the decline phase, advertising expenditures will be reduced significantly, reflecting the decline in brand volumes. The essential requirement will be to ensure that the decline can be to ensure that the decline can be slowed, although expenditures may well be directed slowed, although expenditures may well be directed towards reducing the stocks in the trade.towards reducing the stocks in the trade.
Define objectivesDefine objectives
and plan theand plan the
promotionalpromotional
campaigncampaign
DevelopDevelop
productproduct
awarenessawareness
stimulatestimulate
demand demand andand
attractattract
distributorsdistributors
CreateCreate
productproduct
acceptanceacceptance
and brandand brand
preferencepreference
Maintain and Maintain and enhance enhance brand loyalty, brand loyalty, convert convert buyers and buyers and distributors of distributors of competitive competitive brandsbrands
Phase Phase product product outout
Types of advertising media
Print mediaAs the name suggests this concerns As the name suggests this concerns
advertisements that appear in advertisements that appear in newspapers and magazines. The newspapers and magazines. The media can be divided into five media can be divided into five categoriescategories::– Daily newspapersDaily newspapers– Local and regional newspapersLocal and regional newspapers– Consumer magazinesConsumer magazines– Trade and professional magazinesTrade and professional magazines– Customer magazinesCustomer magazines
Types of advertising media
TelevisionOverall, TV is still regarded as the Overall, TV is still regarded as the best medium for achieving large-scale best medium for achieving large-scale coverage for products and services. coverage for products and services. As television is a combination of As television is a combination of sound and pictures it provides the sound and pictures it provides the perfect vehicle to visualise or perfect vehicle to visualise or demonstrate the product or service demonstrate the product or service being marketed, whether that is a car, being marketed, whether that is a car, an airline or a washing detergent.an airline or a washing detergent.
Types of advertising mediaCinema
• Cinema is useful in supporting Cinema is useful in supporting press and television campaigns. press and television campaigns.
• It can also be used to show It can also be used to show advertisements that would not be advertisements that would not be permitted on televisions stations permitted on televisions stations because of this type of product (for because of this type of product (for instance, alcoholic drinks) or the instance, alcoholic drinks) or the way it is advertised (for example, way it is advertised (for example, overtly sexual in content).overtly sexual in content).
Types of advertising mediaRadio
• Radio stations have become an excellent Radio stations have become an excellent outlet for advertising products and outlet for advertising products and services. services.
• Companies can choose the radio station Companies can choose the radio station that best serves their customer segments. that best serves their customer segments.
• Radio advertising normally costs less Radio advertising normally costs less than television advertising, so SMEs are than television advertising, so SMEs are able use radio as a means of advertising able use radio as a means of advertising their products and services.their products and services.
Types of advertising media
Outdoor billboard advertising• Outdoor advertising is usually Outdoor advertising is usually
strategically located near high-strategically located near high-density populations, busy road density populations, busy road junctions, walkways, at commuter junctions, walkways, at commuter stations or on vehicles. stations or on vehicles.
• The objective is to position a poster The objective is to position a poster showing a product or serviceshowing a product or service in a in a place where it will have high place where it will have high visibility.visibility.
Types of advertising mediaAmbient media (also known as fringe media)
• Ambient Media is usually amalgamated Ambient Media is usually amalgamated with outdoor advertising in many textbooks.with outdoor advertising in many textbooks.
• However, because of its format and its However, because of its format and its increasing presence it needs to stand alone increasing presence it needs to stand alone as a form of advertising media. As the word as a form of advertising media. As the word ambient suggests, such advertising is ambient suggests, such advertising is positioned 'in the surroundings or in the positioned 'in the surroundings or in the background'.background'.
Aerial This includes airships (often referred to as blimps), moving and static balloons, and banner towing.Airships and balloons flying over a location often carrying an array of advertising including illuminated signage across their length. With banner towing, specially equipped light aircraft tow banners across a location advertising, for example, a forthcoming event
GiveawayThese are normally standard sized postcards that feature an event, product or service. They are postcards.
Maps Tourist maps often feature small advertisements for a range of local products and services. These can include details of hotels, restaurants, sightseeing tours, car rentals, museums, art galleries and department stores.
Taxis This includes both exterior and interior advertising. In London, for example, the famous cabs are often emblazoned with brand logos advertising everything from airlines to newspapers and soft drinks. In some countries, for example, Singapore, taxis have illuminated signs on the roofs of the cabs.
Trolleys Trolleys at airports, supermarkets and train stations often feature advertising signage.This can range from promoting special in-store offers to credit cards and focal hotel and taxis services.
Washrooms In the United Kingdom especially this is one of the fast-growing forms of ambient media. Everyone has, at some time, the need to use the washroom in the restaurant or shopping mall. The advertising messages can range from health issues (using a condom to reduce the risk of HIV infection and unwanted pregnancy) and warnings about drinking and driving to special offers at local stores.
Tickets Although train, bus and cinema tickets, for example, are used over a relatively short time frame they can incorporate promotional elements. For instance on the reverse of a cinema ticket a soft drink, available from the concession counter, can be advertised. It could be used to publicise a special promotion for a limited period only.
Types of advertising media
Shock advertising• Inclusion of frightening, visceral, offensive, Inclusion of frightening, visceral, offensive,
taboo and emotion-provoking imagery and taboo and emotion-provoking imagery and words to promote a product, service/ words to promote a product, service/ concept or ideaconcept or idea
• It became part of the public's It became part of the public's consciousness with Oliviero Toscani's work consciousness with Oliviero Toscani's work for the Italian clothing company Benetton. for the Italian clothing company Benetton. Toscani's advertising focused not on Toscani's advertising focused not on clothes but on images often linked to clothes but on images often linked to society or tragic events of the time.society or tragic events of the time.
Repositioning through advertising
• Taking a more strategic perspective, Taking a more strategic perspective, advertising can also be used advertising can also be used to reposition to reposition a producta product and redefine it in the mind of and redefine it in the mind of the customer. the customer.
• Quite often this happens in response to Quite often this happens in response to competitive pressures and therefore both competitive pressures and therefore both aggressive and defensive advertising is aggressive and defensive advertising is likely to be used in order to improve or at likely to be used in order to improve or at least sustain a competitive position.least sustain a competitive position.
• Ultimately, the brand repositioning will Ultimately, the brand repositioning will need to provide an even stronger point of need to provide an even stronger point of differentiation for consumers. differentiation for consumers.
Repositioning involves changing the place an offering occupies in a
consumer’s mind relative to competitive offerings.
Beeline
How it was and how it is today (repositioning of Russian leading mobile operators)
Goldstar – LG
• In 1959, Goldstar produced South Korea's first In 1959, Goldstar produced South Korea's first radio. Many consumer electronics were sold radio. Many consumer electronics were sold under the brand name GoldStar, while some under the brand name GoldStar, while some other household products (not available outside other household products (not available outside South Korea) were sold under the brand name South Korea) were sold under the brand name of Lucky. The Lucky brand was famous for its of Lucky. The Lucky brand was famous for its hygiene products line such as soaps and Hi-Ti hygiene products line such as soaps and Hi-Ti laundry detergents, but most associated with laundry detergents, but most associated with its Lucky and Perioe toothpaste.its Lucky and Perioe toothpaste.
In 1995, so as to better compete in the Western In 1995, so as to better compete in the Western market, the company was renamed "LG", the market, the company was renamed "LG", the abbreviation of "Lucky Goldstar". More abbreviation of "Lucky Goldstar". More recently, the company associates its tagline recently, the company associates its tagline "Life's Good", with the letters LG. Since 2009, "Life's Good", with the letters LG. Since 2009, LG also owns the domain name LG also owns the domain name LG. comLG. com
Advertising and its influence on price • The role of marketing communications The role of marketing communications
is informing the target market about the is informing the target market about the price of a product or service offering. price of a product or service offering.
• This can be undertaken through This can be undertaken through advertising in addition to the other advertising in addition to the other elements of the promotional mix, for elements of the promotional mix, for example personal selling, promotions example personal selling, promotions and so on.and so on.
• However, they may not consider the However, they may not consider the price in isolation, indeed you will most price in isolation, indeed you will most likely consider it in respect of the likely consider it in respect of the product, its size, shape, smell, colour product, its size, shape, smell, colour and overall benefits.and overall benefits.
Advertising and its influence on price • Price issues will vary from product to Price issues will vary from product to
product and from target group to target product and from target group to target group, but the prominence that price group, but the prominence that price receives will depend upon a number of receives will depend upon a number of factors:factors:
•Target group Target group
•Level of involvement Level of involvement •Attitude to riskAttitude to risk•Complexity and technical nature of the Complexity and technical nature of the
product/serviceproduct/service•The importance of price to the decision-The importance of price to the decision-
making process.making process.
Personal selling: a Personal selling: a definitiondefinition- An interpersonal communication An interpersonal communication tool which involves face-to-face tool which involves face-to-face activities undertaken by activities undertaken by individuals, often representing an individuals, often representing an organization, in order to inform, organization, in order to inform, persuade or remind an individual persuade or remind an individual or group to take appropriate or group to take appropriate action, as required by the action, as required by the sponsor's representative.sponsor's representative.
Personal selling: characteristics
• It is a known fact that personal selling It is a known fact that personal selling is the most expensive element of the is the most expensive element of the marketing mix. marketing mix.
• It is resource intensive, time It is resource intensive, time ineffective, contributing little or no ineffective, contributing little or no economies of scale, with high contact economies of scale, with high contact costs and customer maintenance costs. costs and customer maintenance costs.
• However, it is probably one of the most However, it is probably one of the most effective methods of influencing effective methods of influencing decision-makers to the stage of decision-makers to the stage of adoption. adoption.
• Personal selling is often referred to as interpersonal communication and from this perspective three major sales behaviours, namely getting, giving and using information can be determined :
•Getting information refers to sales behaviours aimed at information acquisition, for example gathering information about customers, markets and competitors.
•Giving information refers to the dissemination of information to customers and other stakeholders, for example sales presentations and seminar meetings designed to provide information about products and an organisation's capabilities and reputation.
•Using information refers to the sales person's use of information to help solve a customer's problem.
The role of personal selling
Tasks of personal selling
Prospecting Finding new customers
Communicating Informing various stakeholders and feeding back information about the market
Selling The art of leading a prospect to a successful close
Information gathering
Reporting information about the market and reporting on individual activities
Servicing Consulting, arranging, counseling, fixing and solving a multitude of customer problems'
Allocating Placing scarce products and resources at times of shortage
Shaping Building and sustaining relationships with customers and other stakeholders
Strengths and weaknesses of personal selling
• Two-way interaction that provides fast, direct feedback.
• Personal selling allows for the receiver to focus attention on the salesperson.
• There is a greater level of participation in the decision process by the vendor than in the other tools.
• Costs per contact are extremely high.
• Reach and frequency through personal selling are always going to be low, regardless of the amount of funds available.
• Control over message delivery is very often low.
• There is also the disadvantage of message inconsistency.
Sales force objectives• Sales force objectives will not all relate directly Sales force objectives will not all relate directly
to increasing income. to increasing income. • They may also relate to cost saving, customer They may also relate to cost saving, customer
relationship management and developing new relationship management and developing new leads.leads.
• Therefore typical sales objectives could be:Therefore typical sales objectives could be:– To increase sales turnover by 20 per cent To increase sales turnover by 20 per cent
within a 12-month periodwithin a 12-month period– To reduce the number of clients with minimum To reduce the number of clients with minimum
viable order levels at the end of a 12-month viable order levels at the end of a 12-month periodperiod
– To reduce the cost of sales by 10 per cent To reduce the cost of sales by 10 per cent within a 6-month period o To increase the within a 6-month period o To increase the number of distribution outlets by 15 per cent number of distribution outlets by 15 per cent in a 12-month period.in a 12-month period.
Number of customers Large Small
Buyers' information needs Low High
Size and importance of purchase Small Large
Post-purchase service required Little A lot
Product complexity Low High
Distribution strategy Pull Push
Pricing policy Set Negotiate
Resources available for promotion Many Few
Advertising relatively important
Personal selling relatively important
Prospecting for customers
Qualifying prospects
Developing the relationship
Presenting the sales messages
Handling queries and objections
Closing the saleProviding service and support
Developing the relationship
Maintaining trust and commitment
Organization
Sales team coordinator
Profit generator/manager
Information channel
Technology and product
developer
Market Analyst and planner
OpportunistTrend spotter and forecaster
Researcher
Customer
Partner and supplier
Service provider
Vision of the supplier
Relationship manager
New roles for thе sales force
Thank you for Thank you for attention!attention!