public relations, sales promotion and personal selling
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1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Prepared byDeborah Baker
Texas Christian University
13 Personal Selling
Public Relations, Sales Promotion and
2Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning ObjectivesLearning Objectives
1. Discuss the role of public relations in the promotional mix.
2. Define and state the objectives of sales promotion
3. Discuss the most common forms of consumer sales promotion
3Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning Objectives (continued)Learning Objectives (continued)
4. List the most common forms of trade sales promotion
5. Describe personal selling
6. Discuss the key differences between relationship selling and traditional selling
7. List the steps in the selling process
4Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning Objective Learning Objective
Discuss the role of public relations in the promotional mix
11
1
5Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
The Role of Public RelationsThe Role of Public Relations
Evaluates public attitudesEvaluates public attitudes
Identifies issues of public concernIdentifies issues of public concern
Executes programs to gain public acceptance Executes programs to gain public acceptance
1
6Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Functions of Public RelationsFunctions of Public Relations
Press relations Press relations
Product publicityProduct publicity
Corporate communicationCorporate communication
Public affairsPublic affairs
LobbyingLobbying
Employee and investor relationsEmployee and investor relations
1
7Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Public Relations ToolsPublic Relations Tools
Product placementProduct placement
Consumer educationConsumer education
Event sponsorshipEvent sponsorship
Issue sponsorshipIssue sponsorship
Internet Web sitesInternet Web sites
New product publicityNew product publicity
5
8Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Crisis ManagementCrisis Management
Crisis ManagementCrisis Management
A coordinated effort to handle the
effects of unfavorable publicity or of
an unfavorable event.
1
9Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning Objective Learning Objective
Define and state the objectives of sales promotion
Onlinehttp://www.xmradio.com
22
2
10Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Sales PromotionSales Promotion
Onlinehttp://www.on-lineclothingstores.comhttp://www1.coolsavings.com
Sales PromotionSales PromotionMarketing communication activities,
other than advertising, personal
selling, and public relations, in which
.
2
11Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Sales Promotion ObjectivesSales Promotion Objectives
2
ConsumerSales
Promotion
ConsumerSales
Promotion
Trade Sales
Promotion
Trade Sales
Promotion
Consumer market
Marketing channel
Goal = ??
12Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Uses of Sales PromotionUses of Sales Promotion
2
Immediate purchasesImmediate purchases
Increase trialIncrease trial
Boost consumer inventoryBoost consumer inventory
Encourage repurchaseEncourage repurchase
Increase ad effectivenessIncrease ad effectiveness
Encourage brand loyaltyEncourage brand loyalty
13Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Objectives of Sales PromotionObjectives of Sales Promotion
Type of BuyerType of Buyer
Loyal Customers
Competitor’sCustomers
Brand Switchers
Price Buyers
Desired ResultsDesired Results
•Reinforce behavior• Increase consumption•Change timing
•Break loyalty•Persuade to switch
•Persuade to buy your brand more often
•Appeal with low prices
•Supply added value
Sales PromotionSales PromotionExamples Examples
•Loyalty marketing•Bonus packs
•Sampling•Sweepstakes, contests, premiums
•Price-lowering promotion
•Trade deals
•Coupons, price-offpackages, refunds
•Trade deals
2
14Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning Objective Learning Objective
Discuss the most common forms of consumer sales promotion
33
3
15Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion
Coupons and RebatesCoupons and Rebates
PremiumsPremiums
Loyalty Marketing ProgramsLoyalty Marketing Programs
Contests & SweepstakesContests & Sweepstakes
Point-of-Purchase PromotionPoint-of-Purchase Promotion
3
16Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
CouponCoupon
RebateRebate
PremiumPremium
A certificate that entitles consumers to an immediate
price reduction.
A certificate that entitles consumers to an immediate
price reduction.
A cash refund given for the purchase of a product during
a specific period.
A cash refund given for the purchase of a product during
a specific period.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
An extra item offered to the consumer, usually in exchange
for some proof of purchase.
Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion
3
17Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
LoyaltyMarketingProgram
LoyaltyMarketingProgram
FrequentBuyer
Program
FrequentBuyer
Program
A promotional program designed to build long-term, mutually
beneficial relationships between a company and key customers.
A promotional program designed to build long-term, mutually
beneficial relationships between a company and key customers.
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
A loyalty program in which loyal consumers are rewarded for making multiple purchases.
Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion
3
18Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
ContestContest
SweepstakesSweepstakes
Promotions that require skill or ability to compete for
prizes.
Promotions that require skill or ability to compete for
prizes.
Promotions that depend on chance or luck, with
free participation.
Promotions that depend on chance or luck, with
free participation.
Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion
Onlinehttp://www.sweepstakesonline.com
3
19Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
SamplingSampling A promotional program that allows the consumer the opportunity to try a
product or service for free.
A promotional program that allows the consumer the opportunity to try a
product or service for free.
Tools for Consumer Sales Tools for Consumer Sales PromotionPromotion
3
20Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Methods of SamplingMethods of Sampling
Direct mailDirect mail
Door-to-door deliveryDoor-to-door delivery
Packaging with another productPackaging with another product
Retail store demonstrationRetail store demonstration
3
21Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Point-of-Purchase PromotionPoint-of-Purchase Promotion
Goals ofGoals of Point-of-PurchasePoint-of-Purchase DisplaysDisplays
Goals ofGoals of Point-of-PurchasePoint-of-Purchase DisplaysDisplays
Build traffic Build traffic
Advertise the productAdvertise the product
Induce impulse buyingInduce impulse buying
3
22Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Onlinehttp://www.upromote.com
Online Sales PromotionOnline Sales Promotion
Free merchandiseFree merchandise
SweepstakesSweepstakes
Free shippingFree shipping
3
23Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning Objective Learning Objective
List the most common forms of trade sales promotion
44
4
24Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Tools for Trade Sales PromotionTools for Trade Sales Promotion
Trade AllowancesTrade Allowances
Push MoneyPush Money
TrainingTraining
Free MerchandiseFree Merchandise
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
4
25Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Trade AllowanceTrade Allowance
Trade AllowanceTrade Allowance
A price reduction offered by
manufacturers to intermediaries,
such as wholesalers and retailers.
4
26Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Push MoneyPush Money
Push MoneyPush Money
Money offered to channel intermediaries
to encourage them to “push” products--
that is, to encourage other members of
the channel to sell the products.
4
27Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
The Role of Trade Sales The Role of Trade Sales PromotionPromotion
Improve trade relations
Gain new distributors
Build or reducedealer inventories
Obtain support forconsumer sales promotions
4
28Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning Objective Learning Objective
Describe personal selling55
5
29Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Advantages of Personal SellingAdvantages of Personal Selling
5
Detailed explanation or demonstration
Variable sales message
Directed at qualified prospects
Controllable adjustable selling costs
Effective at obtaining sale and gaining customer satisfaction
30Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Personal SellingPersonal Selling
Customers are concentrated
Customers are concentrated
Product is technically complex
Product is technically complex
There are few customersThere are few customers
Product is custom madeProduct is custom made
Product has a high valueProduct has a high value
Personal Selling Personal Selling is more important if...is more important if...
Customers are geographically dispersed
Customers are geographically dispersed
Product is simple to understand
Product is simple to understand
There are many customersThere are many customers
Product is standardizedProduct is standardized
Product has a low valueProduct has a low value
Advertising & Sales Promotion Advertising & Sales Promotion are more important if...are more important if...
5
31Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning Objective Learning Objective
Discuss the key differences between relationship selling and traditional selling
66
6
32Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Relationship SellingRelationship Selling
Relationship SellingRelationship Selling
A sales practice that involves building,
maintaining, and enhancing interactions
with customers in order to develop long-
term satisfaction through mutually
beneficial partnerships.
6
33Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Relationship Selling Relationship Selling versus Traditional Sellingversus Traditional Selling
Sell advice, assistance, counsel Sell products
TraditionalTraditionalPersonal SellingPersonal Selling
Focus on closing sales
Limited sales planning
Discuss productAssess “Product-specific” needs“Lone wolf” approach
Pricing/product focus
Short-term sales follow-up
Focus on customer’s bottom line
Sales planning is top priority
Build problem-solving environmentConduct discovery in scope of operationsTeam approachProfit impact and strategic benefit focusLong-term sales follow-up
Relationship SellingRelationship Selling
6
34Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Learning Objective Learning Objective
List the steps in the selling process
77
7
35Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Sales ProcessSales Process
Sales ProcessSales Process
The set of steps a salesperson goes
through in a particular organization
to sell a particular product or service.
7
36Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Steps in the Selling ProcessSteps in the Selling Process
Generate LeadsGenerate Leads
Qualify LeadsQualify Leads
Probe Customer NeedsProbe Customer Needs
Develop SolutionsDevelop Solutions
Handle ObjectionsHandle Objections
Close the SaleClose the Sale
7
37Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Time Spent in Key Steps of Selling Time Spent in Key Steps of Selling ProcessProcess
Key Selling Steps Traditional
Selling
Relationship
Selling
Generate Leads High Low
Qualify Leads Low High
Probe Needs Low High
Develop Solutions Low High
Handle Objections High Low
Close the sale High Low
Low High
7
38Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Online
http://www.zapdata.com
Generating LeadsGenerating Leads
AdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/
Telemarketing
Cold CallingCold Calling Internet Web Site
Internet Web Site ReferralsReferrals
Trade Shows/Conventions
Trade Shows/ConventionsNetworkingNetworking Company
RecordsCompany Records
7
39Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Cold CallingCold Calling
Cold CallingCold Calling
A form of lead generation in which the
salesperson approaches potential
buyers without any prior knowledge of
the prospects’ needs or financial status.
7
40Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Characteristics of Qualified LeadsCharacteristics of Qualified Leads
OnlineSearch for “sales networking clubs”
7
Recognized needRecognized need
Receptivity andaccessibility
Receptivity andaccessibility
41Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Needs AssessmentNeeds Assessment
Needs AssessmentNeeds Assessment
A determination of the customer’s
specific needs and wants and the range
of options a customer has for satisfying
them.
7
42Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Probing NeedsProbing Needs
Product or serviceProduct or service
Customers and their needsCustomers and their needs
CompetitionCompetition
IndustryIndustry
Salesperson must knoweverything
about...
Salesperson must knoweverything
about...
7
43Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Developing and Proposing Developing and Proposing SolutionsSolutions
Sales ProposalSales Proposal
Sales PresentationSales Presentation
7
44Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Powerful PresentationsPowerful Presentations
7
Be well prepared
Use eye contact
Ask open-ended questions
Be poised
Use hand gestures and voice inflection
Focus on the customer needs
Incorporate visual elements
Know how to operate the A/V equipment
Make sure the equipment works
PRACTICE, PRACTICE, PRACTICE!
45Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Handling ObjectionsHandling Objections
Use the objection to close the sale
Use the objection to close the sale
Anticipate specific objections
Anticipate specific objections
View objections as requests for information
View objections as requests for information
7
46Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Closing the SaleClosing the Sale
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for customer signals
Look for customer signals
7
47Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
Following UpFollowing Up
Employees are trainedEmployees are trained
Goods or service performas promised
Goods or service performas promised
Ensure delivery schedules are metEnsure delivery
schedules are met
7
48Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
In Summary, We discussed Several In Summary, We discussed Several Important Promotion TasksImportant Promotion Tasks
PR Sale Promotion Personal Selling
49Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 13
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