Sales Promotion, Public Relations, and Personal Selling
Transcript of Sales Promotion, Public Relations, and Personal Selling
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:– Short-term results– Competitive pressure– Buyers’ expectations– Low levels of retail selling– Door openers
Sales Promotion
• Deciding what specific tools to use:– Nature of the target audience– Marketing communication objectives– Nature of the product– Cost of the tool– Current economic conditions
Consumer Promotions
• Goals:– Encourage product trial– Encourage continued buying and use– Encourage purchase and use of related products– Support IMC strategy to gain faster, more
measurable results– Build a marketing database
Consumer Promotions
• Techniques– Coupons– Samples– Frequency marketing programs– Sweepstakes and contests– Premiums– Price promotions– Refunds and rebates– Displays
Trade Promotions
• Goals:– Add channel partners (especially retailers)– Induce retailers to carry more stock– Enhance retailer support of the brand– Strengthen relationships with retailers
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 get distribution– Consumer promotion to get trial
• Growth– Trade promotions to reinforce relationships with
retailers (defense against competitors)– Consumer promotions to expand customer base
• Maturity– Trade promotions to reinforce relationships with
retailers (defense against competitors)– Consumer promotions to fight off competition
Public Relations
• Types:– Corporate PR– Marketing public relations (MPR)– Event sponsorship– Publicity
• Goals:– Raise awareness– Inform and educate– Build trust and understanding– Open communication lines
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– Team selling– Systems selling– Global sales teams– Relationship selling– Telemarketing and Internet selling– Sales force automation
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
– Referrals
– Networking
– Data sources
– Cold calls
– Qualify prospects• Screen out poor leads
– Authority to buy
– Ability to buy
– Willingness to buy
The Sales Process
2. Preapproach– Gather information about prospect company and individual– Set call objectives
• Gather information• Provide sales literature• Conduct needs-assessment• Make appointment for next sales call• Make a sale
– Decide on overall sales strategy– Decide on best approach, timing
• Personal visit• Phone call• Letter
The Sales Process
3. Sales presentation• Approaching the prospect
• Appearance• Opening words• Follow-up remarks
• Presenting and demonstrating• Canned presentation• Formula presentation• Needs-satisfaction presentation
• Dealing with resistance and objections
The Sales Process
• Sales presentation (continued)– Dealing with resistance and objections
• Valid and invalid objections• Techniques for handling objections
– Put off – Switch focus – Offset – Denial – Provide proof
• Strive for a win-win outcome
The Sales Process
• Sales presentation (continued)– Close
• Obtain prospect’s agreement to buy• Try to close after:
– Positive verbal cues– Positive nonverbal cues– Conclusion of presentation or demonstration
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, pre-approach, presentation, and post-purchase services.