Entry Modes + Sales Promotion + Advertising

8/7/2019 Entry Modes + Sales Promotion + Advertising

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PROMOTIONAL ACTIVITIESPROMOTIONAL ACTIVITIES

IN MARKETINGIN MARKETING



Role of PromotionRole of Promotion

To communicate with individuals, groups or organizationsTo communicate with individuals, groups or organizationsto directly or indirectly facilitate exchanges by informingto directly or indirectly facilitate exchanges by informingand persuading one or more audiences to accept anand persuading one or more audiences to accept anorganization's products.organization's products. --Companies must communicateCompanies must communicatewith their customers, this communication should not bewith their customers, this communication should not beleft to chance.left to chance.

Design communication to your specific target audience:Design communication to your specific target audience:

Target Market Target Market

Part of Target Market Part of Target Market Different stakeholders of your organization.Different stakeholders of your organization.



Scope and Importan

ce of Personal

Selling

Scope and Importan

ce of Personal

SellingIn the US, 14 million people are employed inIn the US, 14 million people are employed in

sales positions, according to the department of sales positions, according to the department of labor.labor.

Sales personnel include stockbrokers,Sales personnel include stockbrokers,manufacturing sales representatives, real estatemanufacturing sales representatives, real estatebrokers etc.brokers etc.Most students in this class will have beenMost students in this class will have been

employed as a sales person.employed as a sales person.



Nature of Personal Selling

Gives marketers:

�The greatest freedom to adjust a message to satisfy customers informational

needs, dynamic.

�Most precision, enabling marketers to focus on most promising leads. vs.

advertising, publicity and sales promotion

�Give more information

�Two way flow of information, interactivity.

�Discover the strengths and weaknesses of new products and pass this

information on to the marketing department.

�Highest cost. Businesses spend more on personal selling than on any other form

of promotional mix.

�Goals range from

finding prospects

convincing prospects to buy

keeping customers satisfied--help them pass the word along.



Elements of the Personal SellingElements of the Personal Selling

ProcessProcess Prospecting and EvaluatingProspecting and Evaluating

Seek names of prospects through salesSeek names of prospects through salesrecords, referrals etc., also responses torecords, referrals etc., also responses toadvertisements. Need to evaluate if theadvertisements. Need to evaluate if theperson is able (Undergraduate degree toperson is able (Undergraduate degree to

attend a graduate program), willing andattend a graduate program), willing andauthorized to buy. Blind prospectingauthorized to buy. Blind prospecting--relyrelyon phone directory etcon phone directory etc



Preapproach (Preparing)Preapproach (Preparing)

Review key decision makers esp. forReview key decision makers esp. forbusiness to business, but also familybusiness to business, but also family

assess credit historiesassess credit histories

prepare sales presentationsprepare sales presentations

identify product needs.identify product needs.

Helps present the presentation to meet Helps present the presentation to meet

the prospects needs.the prospects needs.



Approaching the CustomerApproaching the Customer

Manner in which the sales person contacts theManner in which the sales person contacts the

potential customer. First impression of the salespotential customer. First impression of the salesperson is Lasting and therefore important.person is Lasting and therefore important.Strive to develop a relationship rather than just Strive to develop a relationship rather than just push the product.push the product.

Can be based on referrals, cold calling or repeat Can be based on referrals, cold calling or repeat contact.contact.



Making the PresentationMaking the Presentation

Need to attract and hold the prospectsNeed to attract and hold the prospectsAAttention to stimulatettention to stimulate IInterest and stir upnterest and stir upDDesire in the product so the potentialesire in the product so the potential

customer takes the appropriatecustomer takes the appropriate AAction.ction.AIDAAIDATry to get the prospect to touch, hold orTry to get the prospect to touch, hold ortry the product. Must be able to changetry the product. Must be able to change

the presentation to meet the prospect the presentation to meet the prospect needsneeds



Three types of presentations:Three types of presentations:

S timulus Response Format:S timulus Response Format: Appropriate stimulus will initiate a buyAppropriate stimulus will initiate a buy

decision, use one appeal after another hoping to hit the right decision, use one appeal after another hoping to hit the right button...Counter Clerk @ McDonald's "Would you like fries with yourbutton...Counter Clerk @ McDonald's "Would you like fries with yourburger?"burger?"

F ormula S elling F ormat:F ormula S elling F ormat: (Canned S ales Presentation) memorized,(Canned S ales Presentation) memorized,repetitive, given to all customers interested in a specific product.repetitive, given to all customers interested in a specific product.Good for inexperienced sales people.Good for inexperienced sales people.Better with heavily advertised items that are presold.Better with heavily advertised items that are presold.

Telemarketing a credit card!!Telemarketing a credit card!!

N eed S atisfaction F ormat:N eed S atisfaction F ormat: Based on the principal that eachBased on the principal that eachcustomer has a different set of needs/desires., therefore the salescustomer has a different set of needs/desires., therefore the salespresentation should be adapted to the individual customer's needs,presentation should be adapted to the individual customer's needs,this is a key advantage of personal selling vs. advertising.this is a key advantage of personal selling vs. advertising.S ales person asks questions first, then makes the presentationS ales person asks questions first, then makes the presentationaccordingly.accordingly.N eed to do homework, listen well and allow customers to talk etc.N eed to do homework, listen well and allow customers to talk etc.Must answer two types of questions:Must answer two types of questions: for more informationfor more information

overcome objections.overcome objections.



ClosingClosing

Ask prospect to buy product/products. Use trialAsk prospect to buy product/products. Use trial

closes, IE ask about financial terms, preferredcloses, IE ask about financial terms, preferredmethod of delivery.method of delivery.20% sales people generally close 80% sales.,20% sales people generally close 80% sales.,Avon, over 1/2 US $1.4 bn business from 17%Avon, over 1/2 US $1.4 bn business from 17%

of 415,000 SRs.of 415,000 SRs.Need to be prepared to close at any time. TheNeed to be prepared to close at any time. Thefollowing are popular closing techniques:following are popular closing techniques:

Trial Close (Minor decision close)Trial Close (Minor decision close)

Assumptive close (Implied consent close)Assumptive close (Implied consent close) Urgency closeUrgency close

Ask for the sale closeAsk for the sale close



Following UpFollowing Up

Must follow up sale, determine if the orderMust follow up sale, determine if the orderwas delivered on time, installation OK etc.was delivered on time, installation OK etc.Also helps determine the prospects futureAlso helps determine the prospects futureneeds. Accomplishes four objectives:needs. Accomplishes four objectives:

customer gain short term satisfactioncustomer gain short term satisfaction

referrals are stimulatedreferrals are stimulated

in the long run, repurchasein the long run, repurchase

prevent cognitive dissonanceprevent cognitive dissonance



Management of SalesforceManagement of Salesforce

Establish Salesforce objectivesEstablish Salesforce objectives

Organizing the SalesforceOrganizing the Salesforce

Recruiting and Selecting SalespeopleRecruiting and Selecting Salespeople

Training Sales PersonnelTraining Sales Personnel

Compensating Sales PeopleCompensating Sales People

Motivating Sales PeopleMotivating Sales People



Sales Promotion MethodsSales Promotion Methods

Coupons:Coupons:

Demonstrations:Demonstrations:

Frequent User Incentives:Frequent User Incentives: Point of Purchase Display:Point of Purchase Display:

Free Samples:Free Samples:

Money Refunds/Rebates:Money Refunds/Rebates: Premium Items:Premium Items:

CentsCents--off Offer:off Offer:



Trade Sales Promotion TechniquesTrade Sales Promotion Techniques

Allowances and Discounts:Allowances and Discounts:

Cooperative Advertising:Cooperative Advertising:

Training of Sales Staff Training of Sales Staff



AdvertisingAdvertising



Scope and Importance of AdvertisingScope and Importance of Advertising

Advertisements are important for:Advertisements are important for: standardized productsstandardized products

products aimed at large marketsproducts aimed at large markets

products that have easily communicatedproducts that have easily communicatedfeaturesfeatures

products low in priceproducts low in price

products sold through independent products sold through independent channel members and/or are new.channel members and/or are new.



Nature of AdvertisingNature of Advertising Used by many types of organizations includingUsed by many types of organizations including

Churches, Universities, Civic groups andChurches, Universities, Civic groups andcharities, politicians!! Need to consider thecharities, politicians!! Need to consider thefollowing issues:following issues:

Does the product possess unique, important Does the product possess unique, important features to focus onfeatures to focus on Unique Selling Point Unique Selling Point (USP)(USP)

Are the hidden qualities important to the buyersAre the hidden qualities important to the buyers Is the general demand trend for the product Is the general demand trend for the product

adequateadequate Is the market potential for the product adequateIs the market potential for the product adequate

Is the competitive environment favorableIs the competitive environment favorable Is the organization able and willing to spend theIs the organization able and willing to spend the

required money to launch an advertisingrequired money to launch an advertisingcampaigncampaign



Functions and advantages ofFunctions and advantages ofsuccessful advertisingsuccessful advertising

Task of the salesman made easierTask of the salesman made easier



ObjectivesObjectives

Maintain demand for wellMaintain demand for well--known goodsknown goods

Introduce new and unknown goodsIntroduce new and unknown goods

Increase demand for wellIncrease demand for well--knownknowngoods/products/servicesgoods/products/services



Requirements of a good advertisementRequirements of a good advertisement

Attract attention (awareness)Attract attention (awareness)

Stimulate interest Stimulate interest

Create a desireCreate a desire

Bring about actionBring about action



Eight steps in an advertising campaignEight steps in an advertising campaign

Market researchMarket research

Setting out aimsSetting out aims

BudgetingBudgeting

Choice of media (television,Choice of media (television,newspaper/magazines, radio, web, outdoor)newspaper/magazines, radio, web, outdoor)

Choice of actors (New Trend)Choice of actors (New Trend)

Design and wordingDesign and wording CoCo--ordinationordination

Test resultsTest results



Use of AdvertisingUse of Advertising

Promoting Products or OrganizationsPromoting Products or Organizations

Stimulating Primary and Selective DemandStimulating Primary and Selective Demand

Offsetting Competitors AdvertisingOffsetting Competitors Advertising

Making salespersons more effectiveMaking salespersons more effective

Increasing use of product Increasing use of product Reminding and reinforcing customersReminding and reinforcing customers

Reducing Sales fluctuationsReducing Sales fluctuations



Developing an AdvertisingDeveloping an Advertising

CampaignCampaign Identify and Analyze the Advertising Target Identify and Analyze the Advertising Target

Defining Objectives.Defining Objectives.

Determine the Advertising AppropriationDetermine the Advertising Appropriation Creating an Advertising MessageCreating an Advertising Message

Developing a Media PlanDeveloping a Media Plan

Executing the CampaignExecuting the Campaign

Evaluating the effectiveness of the campaignEvaluating the effectiveness of the campaign

Documents

Entry Modes + Sales Promotion + Advertising