Marketing Exam 3

AIDA Model - Desire

"I like it --> I want it"

Steps in Planning and Executing an Advertising Campaign P.4

*Step 6: Creating Advertisements* -After identifying purpose, segment and type of media, the company begins to design the ad, be it content, color, music and design. - If Image is important: Television and Magazine - If Price is important: Radio and Newspaper - Message must stay consistent when being transferred through many media outlets. - How do Advertisers go about creating ads? - Consider the objectives of the ad, segmented audience, product/service unique selling propositions, and how ad will coordinate with other IMC elements. - Then they go about creating ad or ad campaign: - First thing audience notices is visual, so it should be eye-catching. - *Headline*: large text designed to grab attention - *Subhead*: Under headline and provides extra information about what it's selling - *Body copy*: Main text portion of ad which explains indepth info and moves consumer to action. - *Brand Elements*: Identifies the sponsor of the ad, usually through a logo. - Ad just be able to attract audience attention, provide reason for the audience to spend time viewing, and accomplish goal, where execution matches the medium.

The Five Cs Of Pricing: Cost

*Variable Costs*: Primarily labor and material - vary with production volume. *Fixed Costs*: Costs that remain essentially the same level. *Total Costs*: Sum of the fixed and variable costs.

Sales Promotion

- Special incentives or excitement-building events that encourage customers to purchase a particular product or service, such as: (Sales promotion tools can be used on Retailers, Wholesalers, or end-user consumer) 1. *Coupons*: Offers discounts on the product when it's purchased. These coupons may be incorporated into loyalty programs (CVS and how they use their loyalty program to provide people specific coupons that fits them best). 2. *Premium*: Offers item for free or at a bargain price to reward some type of behavior, such as buying, sampling or testing. Rewards build goodwill among consumers. Finding premium at reasonable cost can be challenging through. 3. *Contests*: Brand-sponsored competition that requires some form of skill or effort. 4. *Deal*: encourage customers to buy considering there is lower risk with the price decrease. Price decrease can be in many ways, such as decreasing price, buy-one-get-one, featured price lower than original. 5. *Sweepstakes*: offers prizes based on chance. Chance that sweepstakes will encourage more buys 6. *Sampling*: try product or service before making the buy decision. Most costly but most effective. 7. *Loyalty Programs*: designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time. Tied to long-term CRM programs, 8. *Point-of-purchase (POP) Displays*: Merchandise at checkout counter. like candy bar or magazine 9. *Rebates*: type of purchase in which price is reduced and returned in form of cash. 10. *Product Placement*: Marketers pay to have their product placed in nontraditional situation, such as television or movie program. (ex: As subtle as American Idol judges with Coke on the table)

Planning for and Measuring IMC Success: Measuring Success using Marketing Metrics

1. Traditional Media - When measuring IMC success, marketers should evaluate how often consumers have been exposed to various marketing communications. - firm measures frequency and reach to gauge consumers' exposure to marketing communications. (Single exposure is hardly enough to generate the desired response). - *Frequency*: measure of how often the audience is exposed to a communication within a specific amount of time. - *Reach*: Measure of consumers' exposure to marketing communications. OR, # that gained exposure to campaign. - Marketing communications managers usually state their media objectives in terms of *Gross Rating Points* (GRP) = Reach x Frequency - Gross Rating Points measure is used for various media advertising, such as *print, radio, or television*

Formulas for Breakeven and Target Profit

Break-even (in units) = Fixed Costs / (Price - Variable cost per unit) Target profit (in units) = Fixed Costs + desired profit / (Price - Variable cost per unit)

Public Relations

Considered "Free" media attention. The importance of PR has grown due to the price increase of other media. - Consumers are becoming more skeptical on marketing which is why PR is becoming more important. - Relatively passive strategy, but Public Relations is an organizational function that assist in maintaining a positive image, handling and heading off unfavorable stories or events and maintaining positive relationships with the media.

The Personal Selling Process: Step 1 - Generate and Qualify Leads

First step is to generate list of potential customers (*leads*) and assess their potential (*qualify*). - Not used extensively in retail setting. Important in B2B. *inbound marketing*: draws attention of customers through blogs, twitter, and LinkedIn rather than using traditional activities that require having to go out to get customers' attention, such as a sale call. *Trade Shows*: Major events attended by buyers who choose to be exposed to products and services *Cold Calls*: without appointment, salesperson calls or sees customer *Telemarketing*: method of prospecting in which sales people telephone potential customers. Expensive method.

Direct Marketing

Growing element in the IMC strategy that includes forms of communication like e-mail and mobile marketing. -Traditional Direct Marketing: Mail and catalogs sent through the mail. *Mobile Marketing*: Marketing through wireless handheld devices, like cellular phones. Examples: Websites, Blogs, and Social Media. Greatest increase in aggregate spending. -Increase use of customer databases has enabled marketers to identify and track customers over time and across purchase situations.

AIDA Model- Action

IMC can make customers do much more than purchase, such as: *The Lagged Effect*: A delayed response from a marketing communications campaign. Generally takes many exposures of an Ad before a customer acts on it. Example of Toyota and their hybrid Prius campaign where they didn't release the cars until 6 months after the campaign. THUS It was difficult to determine which exposure led to the purchase.

Planning for and Measuring IMC Success: *Setting and Allocating the IMC budget*

No one method should be used in isolation: 1. *Objective-and-task Method*: an IMC budgeting method utilized to determine the cost of undertaking specific tasks to accomplish communication objectives. Process involves setting objectives, choosing media and determining costs. 2. *Rule-of-Thumb Method*: Budgeting methods that base the IMC budget on either the firm's share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted. - ROT Methods have various limitations. Budgeting is not a simple process either. May take several rounds of negotiations among various managers, who are each competing for resources for their own areas of responsibility, to devise a final IMC budget.

Advertising Schedule

Specifying the timing and duration of advertising. 1. *Continuous Schedule*: Runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates. For example, P&G advertising their Tide brand throughout the year. 2. *Flighting*: Periods of heavy advertisements followed by periods of no advertisements. Example: Suntan lotion, which is usually advertised during the summer and not during winter months. 3. *Pulsing*: Combines continuous and flighting scheduling by promoting advertisements heavier in certain parts of the year, but advertising yearly. Ads spike during periods of low-demand.

The Five Cs Of Pricing: Company Objectives

Successful pricing strategies are built around the five critical components of pricing. Firms have different pricing models. Could be related to more sales, more profit, or reducing competition. *Profit Orientation*: Company objective that can be implemented by focusing on target profit pricing, maximizing profit and target return pricing. 1. Target Profit Pricing: Particular profit goal is one of their overriding concerns. Firms use price to stimulate certain levels of sales at certain profit per unit. 2. Maximizing Profits: Developing a mathematical formula to determine price at which profits are maximized. Extremely difficult. 3. Target Return Pricing: Designed to produce specific return on investment. Important is level of profits generated relative to investments.

The Personal Selling Process: Step 4 - Closing the Sale

*Closing the sale*: means obtaining commitment from customer to make a purchase. - Very stressful part of personal selling.

Sales Force Structure

*Company sales force*: comprised of people who are employees of the selling company and are engaged in the selling process. *independent agents (manufacturer's representatives)*: sales people who sell a manufacturer's product on an extended contract basis but are not employees of the manufacturer. - They are comprised by commissions and do not take physical ownership of product. - Independent agents helpful for new or small firms because they can achieve instant sales. Difficult to get reps to do something besides direct sales since they are paid on commission.

Pricing Strategies

*Everyday low pricing (EDLP)*: Companies use to emphasize their retail prices being at the regular non-sale price *High/low Pricing*: Pricing strategy that relies on promotion of sales during which prices are temp. reduced to encourage purchases. "Get them while they last" - Referencing actual selling price. When buys view the original selling price vs. the SELL price.

New Product Pricing Strategies

*Market Penetrations Strategy*: Growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers. - Set the initial price low for the introduction of the new product. Goal is to build sales, market share and profits quickly. *Experience curve effect*: Refers to drop in unit cost and increase in volume sold. As sales continue to grow, costs drop - allowing even further discounts in price. *Price Skimming*: Strategy of selling new product or service at high price that innovators and early adopters are willing to buy, then lowering the price after market becomes saturated for more sales.

Competition

*Oligopolistic competition*: Few firms dominate the market. Ex: Soda industry or airlines. - sometimes oligopolies have *price war*, where two or more firms compete by lowering their prices. If they lower their prices with intent of running other products out of business thats called *Predatory pricing* and illegal by the Sherman Antitrust Act. *Monopolistic Competition*: Single companies sell nearly homogeneous products but not completely similar. Not perfect substitutes. Example: Watch companies that sell the same product but different designs and functionality. *Pure Competition*: Large number of sellers offer standardized products and usually controlled prices by govt. Ex: Grain, gold and meat.

The Personal Selling Process: Step 2 - Preapproach and use of CRM systems.

*Preapproach*: occurs before step 1, entails getting more information about customer beforehand. setting goals for what needs to be accomplished. Salespeople often use CRM system to access information about customer. Important for customer to know ahead of time exactly what should be accomplished. - Demonstration of the system and short presentation about system would be appropriate. - *Role Playing*: Good technique for practicing sales presentation prior to meeting with customer. Acting out simulated situation with colleague.

The Five Cs Of Pricing: Customers

*Prestige Products or Services*: Goods or services that consumers buy for prestige, not functionality. *Price elasticity of demand*: Changes in quantity demanded divided by change in price. *Elasticity*: Market for product or service that is price sensitive. *Inelastic*: Price insensitive. Small changes in price will not generate changes in quantity demanded. *Dynamic Pricing/Individualized*: Price of product changes per customer, or seasonal/time of day. Even loyalty program will change offer. *Income Effect*: Changes in quantity demanded by customer depending on their income changing. *Substitution effect*: Ability to substitute products for the focal brand. More substitutes in market = high price elasticity of demand. *Cross-price elasticity*: % change in quantity demanded of product A compared with % change of q. demanded of product B. *Complimentary products*: Demand rise and fall together.

Focus of Advertisements

*Product-focused Advertisements*: Inform, persuade or remind customers about a specific product or service. - (Pepsi Max example in book regarding "Not all Zeros are created equal" reminding consumer to buy). 90% are Product-Focused. *Institutional Advertisements*: Inform, persuade or remind consumers about places, politics or an industry. - *Public Service Announcement (PSA)*: Focus on public welfare. Generally sponsored by non-profit organization, political groups, or religious organizations. Though these do inform, persuade and remind, they are specifically for the betterment of society. *Social Marketing*: PSA's are an example of this. SM brings attitudinal and behavioral change among the general public or a specific segment

Managing the Sales Force

*Sales Management*: Involves planning, direction and control of personal selling activities - including recruiting, selecting and training as they apply to the sales force.

Sales Orientation/Customer Orientation

*Sales Orientation*: Belief that increase in sales will help more than increase in profit. Or set prices very low to generate new sales and take sales away from competitors even at a loss. *Premium Pricing*: Firm places price above competitors to target consumers who always shop for the best or for whom price does not matter. *Competitor Orientation*: Firm should measure itself primarily with competition. For example, to discourage more competitors from entering the market the firm may lower prices. - Competitive Parity: Firm's strategy of setting prices that are similar to major competitors. - Status-Quo pricing: firm matches competitors pricing (Example of Delta and American Airlines matching from time to time. *Customer Orientation*: Firm measuring itself if it meets needs of customers. can be similar to premium pricing and targeting specific customer base.

Steps in Planning and Executing an Advertising Campaign P.2

*Step 3: Budget* - Firms must consider the role that advertising plays in their attempt to meet their overall promotional objective. - Advertising varies over the course of the Product Life Cycle. - Nature of the market also plaus importance. in B2B markets, less money focused on advertising (more put on personal selling). In B2C market more money put on advertising. *Step 4: Convey Message* -Marketers predict what key message it wants to communicate to the target audience & chooses which appeal would be proper. -Message provides audience a way to respond. Logical starting point on advertisement is to tout key benefits of product or service. -The ad must clearly illustrate problem-solving capabilities (ads solve problems offered by their products or services) - *Unique selling proposition (USP)*: Strategy of differentiating a product by communicating its unique attributes. Slogan and symbol. (e.i. Ford - Built Tough). - Must be unique and meaningful to consumer as well, not just brand. - Two forms of message appeals: *Informational Appeal* (help consumers purchase through factual information that encourages them to evaluate brand favorably on basis of key factors.) & *Emotional Appeal* (aims to satisfy consumers' emotional desires rather than their needs. Uses emotions like fear, safety, humor, love/sex, and nostalgia to create bond between consumer and brand.)

Steps in Planning and Executing an Advertising Campaign P.3

*Step 5: Evaluate and Select Media* - *Media planning*: Process of evaluating the "media mix" that will deliver the most consistent and compelling message to the audience. - *Media Mix*: Combination of media used and frequency of advertising on media channel. - *Media Buy*: Actual purchase of air-time and print space. Most expensive part of the advertising budget. Specifically Television advertising most expensive. - *Mass Media*: media sources able to reach large amounts of anonymous individuals, such as outdoor/indoor billboards, radio, newspaper, magazines. - *Niche Media*: are more focused and generally used to reach narrower segments, oftentimes w/ unique demographic characteristics or interests. (e.i. Specialty TV channels like Home, or unique magazines like Skateboard or girls only) - Choosing right medium is very important. Radio media, for example, very good with grocery commercials considering most people listen to it in the car while going to the store.

Steps in Planning and Executing an Advertising Campaign P.5

*Step 7: Assess Impact using Marketing Metrics* - effectiveness of campaign must be assessed before, during and after a campaign: 1. *Pretesting*: Assessments performed before campaign is implemented to determine elements are working how they should be. 2. *tracking*: Includes monitoring key factors like daily or weekly sales volume to assess any problems 3. *Post impact*: Advertisers assess campaigns impact after it has been implemented. This last stage, people assess sales and/or communication impact of ad or campaign. Many things effect sales, like preferences of people, attitudes, Sociocultural changes, in-store stock and even weather. *Lift*: additional sales contributed by advertising.

Online Marketing

- Firms use their *websites* to build their brand image and educate customers about their products or services as well as where they can be purchased - May sell merchandise directly to consumers over the internet - *Websites* usually built towards community building. Ex: Community reviews like on Amazon. Online product reviews increase customer loyalty and provider a competitive advantage for sites that offer them. - *Blogs* (weblog): a webpage that contains periodic posts; corporate blogs are new form of marketing communication. (Good blogs can communicate good word of mouth, announce special events, and allow company to respond directly to customers.) - Blog should be transparent and contain author's honest observations which can help customer with loyalty and trust. - *Social Media*: Media content used for social interactions such as YouTube, Facebook, and Twitter. (On these sites,consumers review, communicate about, and aggregate information about products, prices and promotions. - Assists in customer developing need recognition, information search, alternative evaluation and post purchase review

Public Relations - Sales Promotion

- Managing communications and relationships to achieve various objectives such as building a proper image for the firm, handling unfavorable stories from media, and maintaining positive relationship with media. Media coverage gathered through PR is seen as more objective than any other aspect in the IMC program. - *Cause-related marketing*: Where businesses and charities partner to market an image, a product, or a service for their mutual benefit. - *Event-sponsorship*: Popular PR tool, where corporation sponsors (financially or otherwise) a cultural, sport or entertainment event. (Redbull example,and how they sponsor extreme events).

Ethical and Legal Issues in Personal Selling

- Sales manager must treat everyone fairly and equally. With fairness, this includes hiring promotion, supervision, training, assigning duties and quotas, compensation and firing. - Salespeople must be honest and ethically sound. Must disclose all information to customer, because if not legal action could be taken upon not only salesperson, but another company. - Must be legal and ethical, but salespeople may not know boundary. Guidelines should be incorporated in the training process. Most important - Sales Managers should lead by example and do things correctly so the salespeople won't.

Steps in Planning and Executing an Advertising Campaign P.1

1. *Identify the target audience* - Conduct research to identity their target audience. Current users may or may not be the correct target audience, though. Example: Adidas on advertising to FIFA audience and partnering with Selena Gomez for music fans. 2. *Set the Advertising Objectives* - Advertising campaign objective are derived from overall objective and in the *advertising plan* (section of firm's overall marketing plan that entails ad objectives, what ad would accomplish, and how firm would deem something successful). - *Pull Strategy*: Goal is to get consumers to pull product through marketing channel by demanding it. Primarily advertising and consumer sales promo. -Consumer demands from retailer > Retailer demands from wholesaler > Wholesaler demands from manufacturer. (Ex: Pharmaceutical companies) - *Push Strategy*: Motivates sellers to push and highlight the product onto consumers. - Manufacturers to Wholesaler > Wholesaler to retailer > Retailer promotes to consumers > Consumer buys from retailer.

Roles of a Salesperson:

1. *Order getter*: salesperson whose primary responsibilities are identifying possible customers and trying to engage them in a attempt for a sale. (e.i. Coke-Cola goes to some headquarters to sell special promotion of Vanilla Coke is order getter). 2. *Order Taker*: Salesperson whose responsibility is to process routine orders, reorders or rebuys for products. (e.i. Colgate employs order takers around the globe to go into stores and take inventory, fix displays and make sure everything is going smoothly.) 3. *Sales Support Personnel*: enhance and help with overall selling process. (e.i. Best Buy customers had problems with computers, they could send out Geek-squad to assist. 4. Some sales people may be a combination of roles. Some firms use *selling teams*, which are combo of sale specialists whose primary duties are order getting, order taking or sales support but who work together on important accounts.

The AIDA Model - Awareness

1. Awareness: Brand awareness refers to a potentials customers ability to recognize or recall that the brand name is a particular type of retailer or product/service. (ex: Coca-Cola) - Two awareness metrics: *Aided recall* (when customers indicate they know the brand when the name is presented to them.) *Top-of-the-mind awareness* (When customer mention certain brand name when asked about a product or service. Ex: Harley Davidson and American motorcycles.) Disney is a good example of the Awareness part of the model. They provide multiple channel outlets for the people they promote. (Artist get's a show, they make music which plays on various media, and even make tours.)

Planning for and Measuring IMC Success: *Goals*

1. Firm needs to understand outcome they hope to achieve before they begin. 2. the goals can be *short term*, such as generating inquiries, increasing awareness, and prompting trial. The goals can be *long term*, such as increasing sales, market share, and customer loyalty. - Both goals, short-term and long-term, should be explicitly defined and measured. They may change over time. 3. Goals constitute part of the overall promotional plan, which is usually a subsection of the firm's marketing plan.

Channel Members

Channel members like retailers, warehousing and wholesalers. *Gray market*: Employs irregular but not necessarily illegal methods. May sell for discounted price to discount dealer. This nulls things like warranty if not sold by an authorized retailer. - Also may tarnish image of manufacturer if they cannot provide proper support and return policies as well.

Using Sales Promotion Tools

Lowering prices may lead to short term benefit, customers may purchase too many right now and not too much later - shifting purchases from the future to the present. *Cross-promoting*: Efforts of two or more firms joining together to reach a specific target market. (e.i. J. Crew x New Balance - J. Crew offers other brands within its store to broaden its selection.

Advertising Objectives And Types of Ads

Objectives are to inform, persuade, and remind consumers about the product/service/idea. (Example: Pi Day. objective isn't to sell something, but to inform.) 1. *Informational Ad*: Used to build brand awareness and relay information about upcoming sales or deals. Introduced in the growth stage of the product life cycle. "Primary Demand" 2. *Persuasive Advertising*: Motivates consumers to take action on a product, service or ideal. Instated during growth cycle, and even later stages of PLC to reposition brand, and to change consumers preexisting beliefs on brand. "Selective Demand" 3. *Reminder Advertising*: Communication used to remind or prompt repurchases, especially for products that have gained acceptance and now in the maturity stage. (e.i. Kleenix and how people's memories trigger their response to go and grab some. Not to think too hard either, and just grab a box.)

The AIDA Model - Interest

Once customer is aware that company/product exists, communication must work to increase interest level within consumer. After awareness comes persuasion. The consumer must WANT to further investigate the product/service. example: Disney plugs in ad for upcoming Star's tour on their very own TV show, so it targets the correct target of people.

Elements of IMC Strategy

Online marketing can be: *Interactive/direct* (Mobile marketing, blogs and Social Media) or *Passive/Indirect* (email marketing). Offline Marketing can also be: *interactive* (Personal selling, sales promotion like contests, and telemarketing) & *Passive* (Advertising, sales promotions like coupons, public relations, and direct marketing like catalogs).

Advertising

Paid form of communication utilized to relay information about an organization, product, service or idea designed to persuade the receiver to take some action on what the ad is relaying. Most visible element of the IMC strategy. Extremely effective at *creating awareness* and *generating interest*. - Advertising entails the placement of announcements and persuasive messages in time or space purchased in any of the mass media.

Legal and Ethical Aspects of Pricing

Puffery is fine, but claim should not be deceptive. ("Best deals in town" vs. "Lowest prices, guaranteed".) Regular price is 50% of products sold at that price. *Loss Leader Pricing*: takes the tactic one step further by lowering the price below the store's cost. *Bait and Switch*: Luring customer in with low price but then pressuring them into purchasing more expensive option. *Price discrimination*: Selling product to resellers at different prices for each of them. Considered price discrimination. *Price Fixing*: Practice of colluding with other firms to control prices. Either horizontal or vertical, where horizontal is clearly illegal, and vertical price falls into gray area. - *Horizontal price fixing*: When competitors work together to control prices - ultimately taking price out of the decision for consumers. - *Vertical Price Fixing*: Occurs when parties on same level (manufactuers and retailers) agree on certain price to sell to consumers. Often called MSRP.

Regulatory and Ethical issues in Advertising

Regulation of advertising involves a complex mix of formal laws and informal restrictions designed to protect consumers from deceptive practices. 1. FTC: Enforces truth in advertising laws, and defines deceptive and unfair ad practices. 2. FCC (Fed. Comm. Commission): Regulates interstate and international comm. by radio, t.v, satellite and cable. Limits obscenity and profanity and enforces restriction on lottery and tobacco ads. 3. FDA: Regulates packaging and definitions on packaging. Regulates food and dietary supplements and drugs/biological issues. -FTC is the primary enforcement agency for most mass media advertising, although it may cooperate with other agencies to accomplish goal. (ex: Floridian green bean coffee). *Puffery*: legal exaggeration of praise, stopping just short of deception, lavished on a product. (Less specific the claim, less chance of being deceptive.) (e.i. False Statement would be like "knife can cut through stone" when in reality it cannot)

Integrated Marketing Communications (IMC)

Represents the promotion P of the 4 P's. Encompasses a variety of communication disciplines, such as advertising, personal selling, sales promotion, Public Relations, direct marketing, and online marketing, like social media. - Combination to provide clarity, consistency and maximum communicative impact. - Three elements: The consumer, the channel through message travels through, and evaluation of the communication. Was it successful?

Recruiting and Selecting Salespeople

Salespeople very expensive to train, so company must be careful in who they choose. When recruiting people, personality matters, such as the following traits: 1. Personality: Good salespeople are friendly, sociable and like being around people. 2. Optimism: Good salespeople tend to look at the bright side of things. 3. Resilience: Good salespeople don't easy take no for an answer. They keep coming back. 4. Self-motivation: Salespeople have lots of freedom to spend their days, but if sales people aren't self motivated them the job wont get done. 5. Empathy: Good salespeople must care about their customers, their issues and their problems.

Sales Promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates and contests.

The Personal Selling Process: Step 3 - Sales Presentation

The Presentation: Beginning of the presentation most important part of selling process. By asking series of questions, salesperson can determine need of customer. When salesperson gets a good feel on where customer stands then help customer solve problem. - Personal selling oftentimes relies on storytelling *Handling Reservations*: Integral part of sales promotion is reservation or being rejected. Very likely to occur during the sales presentation. Usually relate to value, like the price is too high for the product or service.

Sales Training, Motivation and Compensating

Training in important even for people who have all the personality traits and skills. Online training cheaper alternative. Online training may never replace one-on-one. -Get to know employees and see how they like to be treated; whether it be through compensation, being alone or praise - either financial or nonfinancial *Financial Comp:* - Salary: form of fixed sum of money paid at regular intervals. - Commission: Comp. or financial incentive for salespeople based on a fixed percentage of their sales. - Bonus: Payment made at management's discretion when salesperson attains certain goal. Usually periodically. - Sales Contest: Short-term incentive designed to elicit a specific response from the sales force. (e.i. Volkswagon and how they give free vacation for whoever sells most cars) *Nonfinancial Comp.*: - Recognition is a big nonfinancial comp. As well as free vacation, plaques or a ring. -These rewards should be given out a meeting or printed in the company newsletter so many know about it. -------------------------------------------------------- *Objectively evaluating* someone includes looking at metrics, like the area they sold in, how many phone calls they made and sales per hour. *Subjectively Evaluating* someone would include valuating them for their behavior. Someone's opinion on how good someone is.

Scope and Nature of Personal Selling

Two-way flow of communication between buyer or buyers and seller, designed to influence the buyer's purchase decision. (Personal Selling can take place in person, over video chat, over the telephone or over the internet) *Relationship selling*: process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties.

Personal Selling

Two-way flow of communication. Intent is to influence buyer decision, and can take place face-to-face, and video teleconferencing. -Can be aimed at both channel members and end channel members. Can be used for both short and long term objectives. -Most expensive form of communication, but the best. Traditional direct marketing also includes e-mail which can be used to distribute special promotions and new information on upcoming merchandise.

Planning for and Measuring IMC Success: Measuring Success using Marketing Metrics P.2

[Web-Based Media] - Although GRP is an adequate measure for television and radio advertisements, assessing the effectiveness of a web-based communication effort in an IMC campaign generally requires web tracking software. - *Web tracking software*: Used to assess how much time viewers spend on particular webpages and the number of pages they view. [Planning, Implementing and Evaluating IMC Programs - an illustration of Google Advertising]: 1. *Social Shopping*: Using the internet to communicate about product preferences with other shoppers. 2. *Search Engine Marketing* (SEM): To reach new customers; a type of web advertising whereby companies pay for keywords that are used to catch customers' attention while browsing a search engine 3. *Impressions*: To estimate reach; the # of times an advertisement appears in front of the user. - Click-through-rate (CTR): # of times user clicks on an ad divided by # of impressions. 4. Relevance: in the context of search engine marketing (SEM), it is a metric used to determine how useful an advertisement is to the consumer. 5. Return on Marketing Investment (RoMI): The amount of profit divided by the value of the investment. - In the case of an ad, the ROI is: (Sales revenue generated by ad - Ad's Cost) / Ad's Cost

The Personal Selling Process: Step 5 - Follow Up

never really over when it comes to relationship selling even after the sale. Always have to follow up to solidify relationship through great service quality. *Five Service Quality Dimensions*: 1. Reliability: Salesperson and org. must deliver product to right place and time. 2. Responsiveness: Salesperson and org must be ready to deal with any problems that may arise. 3. Assurance: Customers must be assured that their product will work as said. 4. Empathy: Salesperson and support group must have good understanding of the problems presented by customer 5. Tangibles: Tangibles reflect the physical characteristics of the business (website and delivery materials). This influence is subtler than the other 4. - When customer's expectations are not met they often complain. - Post-sale follow-up call, email or letter reverts back to the first step in the sales process and restarts new order and sustaining the relationship.