Marketing: Chapters 17, 18 & 20

Selling styles Chapter 20

- Adaptive selling - adjusting presentation to fit the selling situation - Consultative selling - focuses on problem identification - business to business marketing

Types of sales promotion Chapter 18

- Consumer-oriented sales promotion - sales tools used to support a company's advertising and personal selling - Trade-oriented sales promotions - support a company's ads directed to wholesalers, retailers or distributors

Roles of Salesforce Chapter 20

- Link between firm and customers - Salespeople are the company in the consumer's eyes - Dominant role in firm's marketing program - Probe customers - they really need to understand what customers need and want - Adjust marketing offers - salespeople may need to change things to complete a sale - Negotiate terms of sales - Build long-term personal relationships

Forms of Personal Selling Chapter 20

- Order-taking salespeople - processes routine order that were already sold by the company -> preserve ongoing relationship - Order-getting salespeople - identifies customers and gives them information about a product - Customer sales support personnel - perform a variety of services

Types of Advertisements Chapter 18

- Product advertisements - focus on selling a good or service A. Pioneering (informational) - intro stage; inform customers or build primary demand B. Competitive (persuasive) - growth stage; build selective demand; comparative, promotes specific benefits of your brand; can also be used to change perception of a brand or product C. Reminder - maturity stage; reinforce previous knowledge; keeps consumers thinking about a product D. Institutional - build goodwill or image for an organization as opposed to a specific product

Key Takeaways Chapter 17

- The promotional mix consists of advertising, personal selling, public relations/publicity, sales promotion, and direct marketing. These tools vary greatly with respect to flexibility, cost, and level of seller control. - Ultimate consumer programs rely more on advertising while personal selling is more important to industrial buyers

Team Selling Chapter 20

- Used to service large, complex accounts; can include experts from different areas of the selling firm - Downfalls: potential to overwhelm the customer and deciding/maintaining team roles Types: A. conference selling - firm meets with buyers to discuss problems and opportunity B. seminar selling - educational program for customer's technical staff

Methods for handling objections Chapter 20

1. Acknowledge and convert objection - "yes, the price is high because we use the finest materials, let me show you..." 2. Postpone - "i will address that issue shortly" 3. Agree and neutralize - agree with objection and then shows it is unimportant 4. Accept the objection - stimulate further discussion of objection 5. Denial - based on misinformation 6. Ignore the objection

Increasing the Value of Promotion Chapter 18

1. Building long term relationships - increased engagements with consumers 2. Self-regulation - increased efforts to help consumers gain confidence in communication efforts

Promotion Decision Process Chapter 17

1. Planning - identify target audience, specify objectives, set budget, select right promotional tools, design promotion, and schedule promotion 2. Implementation - pretest, then carry out promotion 3. Evaluation - posttest, make needed changes

The Personal Selling Process Chapter 20

1. Prospecting - identifying and qualifying potential customers 2. Pre-approach - gather information and decide how to approach the prospect 3. Approach - gain a prospect's attention, stimulate interest and make transition to the presentation; first impression is critical 4. Presentation/Demonstration - begin converting a prospect into a customer by creating a desire for the product or service 5. Handling objections - discuss problems, find solutions 6. Closing - obtain a purchase commitment from the prospect and create a customer 7. Follow up - ensure that the customer is satisfied with the product or service; resolve any problems to ensure future sales

Sales management process Chapter 20

1. Sales plan formulation - set objectives, organize salesforce, develop account management policies 2. Sales plan implementation - salesforce recruitment, selection training, motivation and compensation 3. Salesforce evaluation - quantitative assessment of performance, behavioral evaluation

Types of institutional advertisements Chapter 18

A. Advocacy - state firm's position on an issue B. Pioneering institutional - what a company is, what it can do, where it is located C. Competitive institutional - promote advantage of one product class over another (milk over soda) D. Reminder institutional - bring company's name to attention of target market

Types of trade oriented sales promotions Chapter 18

A. Allowances and discounts - i. Merchandise allowance - reimbursing a retailer for extra in-store support ii. Case allowance - discount on each case order during a certain time period iii. Finance allowance - paying retailers for financing costs associated with consumer sales promotions B. Cooperative advertising - manufacturer pays a percentage of retailer's local ad expenses for advertising the manufacturer's products C. Training of distributor's salesforce

Types of consumer-oriented sales promotion Chapter 18

A. Coupons - offer discounted price to consumer; stimulates demand, encourages retailer support; cause consumers to delay purchases B. Deals - short-term price reductions; used to increase trial or in reaction to a competitor, reduce consumer risk; cause consumers to delay purchases, reduce perceived value C. Premiums - products offered for free or reduced price; build goodwill and company image; consumers buy for premium rather than the product itself D. Contests - consumers apply their skill to win a prize; increase customer involvement and purchases; require creative or analytical thinking E. Sweepstakes - participants submit entry for chance at a prize; encourages brand loyalty and increased purchases or visits to store; sales drop after sweepstakes end F. Samples - offering the product for free or at a greatly reduced price; encourages product trial, low risk to consumer; high cost for company G. Loyalty programs - sales programs used to encourage repeat customers; creates brand loyalty; expensive H. Point of purchase displays - in store ads for a product; high product visibility; hard to get retailers to allocate high traffic space in store I. Rebates - offers the return of a portion of the price of a product based on proof of purchase; stimulates demand; easily copied, steals future sales, reduces perceived product value J. Product placements - use of a brand name/product in a movie, TV show, video game, or commercial; demonstrate product uses, positive message in noncommercial setting; little control over presentation of product

Carrying out advertising program Chapter 18

A. Full-service agency - does research, selects media, develops copy, and produces artwork; coordinates integrated campaigns with all marketing efforts B. Limited-service (specialty) agency - specializes in one aspect of creative process; usually provides creative production work; buys previously unpurchased media space C. In-house agency - made up of company's own advertising staff, may provide a range of services depending on company needs

Organization sales structure for salespeople Chapter 20

A. Geography - based on customer location B. Customer - based on industry C. Product - based on specific product

Types of prospects Chapter 20

A. Lead - name of person who may be a possible customer B. Prospect - customer who wants or need product C. Qualified prospect - person who wants the product, can afford it and can make the decision to buy it Methods of finding prospects: A. Trade shows, conferences, internet, social networks B. Cold canvassing/cold calling - sales person opens a directory, picks a name, contacts the person -> high refusal rate

Types of customer sales support personnel Chapter 20

A. Missionary salespeople - promote new products B. Sales engineer - solves costumer problems and has technical expertise C. Team selling - using entire team of professionals in selling to and servicing major customers - when specialized knowledge is needed

Types of order taking Chapter 20

A. Outside order takes - visit customers and replenish inventory stocks B. Inside order takes/order clerks - answer questions and take order for customers -> inbound telemarketing - customers call to ask questions and make purchases

Methods for setting promotional budget Chapter 17

A. Percentage of sales - funds are allocated to promotion as a percentage of past or anticipated sales B. Competitive parity - matching competitor's absolute level of spending or proportion point of market share C. All you can afford - money is allocated to promotion only after all other budget items are covered -> fiscally conservative (small businesses) D. Objective and task - company determines promotion objectives, outlines tasks, determines cost from there

Pretesting advertisements Chapter 18

A. Portfolio tests - tests actual advertisement with other ads to gauge reaction to new ad B. Jury tests - showing ad copy to panel of customers and having them rate it C. Theater tests - consumers invited to view new television shows or movies where test commercials are shown

Push vs. Pull Strategy Chapter 17

A. Push strategy - directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product - personal selling and sales promotions very important; pushing product through channels to consumers; promotes intermediaries B. Pull strategy - directing promotional mix at ultimate consumers to encourage them to ask retailer for product

Types of personal selling Chapter 20

A. Relationship selling - building ties to customers based on a salesperson's attention and commitment to customer needs over time -> creates customer value B. Partnership/Enterprise selling - buyers and sellers combine expertise to create customized solutions for mutual benefit

Types of presentations Chapter 20

A. Stimulus response format - given appropriate stimulus, prospect will buy the product - try one sales appeal after another B. Formula selling format - presentation consists of info that must be provided in an accurate, thorough and step by step manner to inform the prospect -> canned sales presentation -> memorized standardized message C. Need satisfaction format - emphasizes probing the prospect and identifying their needs and interests and tailoring the presentation to them

Different media alternatives Chapter 18

A. Television - choice of large or specific audience, effective; high cost, short exposure time, can't convey complex info B. Radio - target specific local audiences, ads placed quickly; no visual element, short exposure, can't convey complex messages C. Magazines - target specific audiences, high-quality color, can be saved, can convey complex messages; long time to place ad, competing with other magazine features, high cost D. Newspapers - covers local markets, quick ad placement, can be saved, quick consumer response, low cost; competing with other paper features, short life span, poor color quality E. Yellow pages - excellent geographic coverage, long life span, always available; competitive directories in many markets, difficult to keep up to date F. Internet - wide range of video and audio capabilities, interactive ads; requires large files and time to load, effectiveness hard to gauge G. Outdoor - low cost, high visibility in local markets, repeat exposure; message must be short and simple, lack of control over who actually sees ad, traffic hazard H. Direct mail - high selectivity, can convey complex information, highly personalized, high quality graphics; high cost per contact, junk mail gives company bad image I. Place based media - nontraditional forms of advertisements, ie. airports, health clubs, hotels

Closing techniques Chapter 20

A. Trial close - asking the prospect to make a decision on some aspect of the purchase - "do you want the grey or blue one" B. Assumptive close - asking prospect to consider choice concerning delivery, warranty, etc. C. Urgency close - commit the prospect quickly by making reference to the timeliness of the purchase - "the low interest ends next week"

Promotional Elements Chapter 17

A. advertising - mass selling B. personal selling - customized interaction C. public relations - mass selling D. sales promotion - mass selling E. direct marketing - customized interaction

A. Advertising Chapter 17

Any paid form of non-personal communication about an organization or product by an identified sponsor - Advantages: efficient means for reaching large numbers; creates demand for product; very high degree of control over message creation and distribution; repeatable - Disadvantages: high costs; difficult to receive good feedback and measure impact; lack of control over who actually sees the message; one-way, impersonal communication

B. Personal selling Chapter 17

Any paid form or personal presentation of goods and services for the purpose of making sales and building customer relationships - Advantages: immediate feedback, persuasive, select audience, can give complex info; more genuine/personal, individualized service, establishes a long-term relationship; potential for up-selling; flexibility - Disadvantages: expensive per exposure; inconsistent, messages differ between sales people; lack of control over the creation/delivery of the message

C. Public relations Chapter 17

Building good relations with the company's various publics by obtaining favorable publicity, building up good corporate image and handling or heading off unfavorable rumors, stories, and events Publicity - non-personal, indirectly paid presentation of an organization (news story) - Advantages: most credible source in consumer's mind; can fix problems; inexpensive, no direct payment - Disadvantages: difficult to get media cooperation; lack of control; can appear disingenuous depending on the situation and how it's handled

Wasted coverage Chapter 17

Communication with consumers who are not in the target audience

E. Direct marketing Chapter 17

Direct communication with consumer to generate a response in form of order, visit, request for further information, etc. - Advantages: geo-demographic targeting; direct communication; relevance to consumer; highly customizable, adaptable - Disadvantages: annoying to consumer; declining customer response; the necessary database management is expensive

Noise Chapter 17

Extraneous factors that can work against effective communication by distorting messages or feedback received ie. printing error, accent, slang

Scheduling advertising Chapter 18

Factors: - Buyer turnover - how often new buyers enter market to buy the product - Purchase frequency - how often is product purchased - Forgetting rate - speed buyers forget brand if advertising not seen Approaches: - Continuous (steady) schedule - run continuously throughout year - Flighting (intermittent) schedule - reflect seasonal demand - Pulse (burst) schedule - flighting mixed with continuous because of increases in demand, new products, etc.

Developing an IMC Program Chapter 17

Four W's of developing a promotion program: - Who is the target audience? - behavioral targeting, research consumer interests/needs - What are the promotion objectives, budget, kinds of promotions available? - where in the adoption process/hierarchy of effects are the target consumers? - Where should the promotion be run? - When should it be run?

Integrated Marketing Communications (IMC) Chapter 17

Marketing communications programs that coordinate all promotional activities - advertising, personal selling, sales promotion, public relations, and direct marketing - to provide a consistent message across all audiences

Designing an Advertisement Chapter 18

Message content: - Fear appeals - source credibility is important - Humor Appeals - most attention-grabbing and memorable usually, but the content is more likely to be remembered than the actual brand/product; humor is not universal - Sex appeals - using or being associated with a product will make the consumer more attractive Selecting the right media: - Reach - how many people/households will see the ad - Frequency - the number of times people will see the ad - Related to target audience, type of product, nature of message, objectives, budget, costs of alternatives - Knowing media habits of target audience - Product attributes may necessitate certain media be used - Cost

Sales management Chapter 20

Planning the selling program and implementing and evaluating the personal selling effort

Assessing the Advertising Program Chapter 18

Posttests - used to determine whether ad accomplished its intended purpose A. Aided recall - subject asked what they remember about an ad B. Unaided recall - subjects asked what ads they generally remember, no specific prompting C. Attitude tests - measure changes in subject's attitudes after seeing ad D. Inquiry tests - additional product information, product samples, or premiums are offered to an ad's viewers/readers E. Sales tests - involve controlled experiments such as using different advertising campaigns in different markets and then comparing consumer purchasing reports to determine effectiveness of ad campaign

Communication Chapter 17

Process of conveying a message to others Elements of communication: a. source - company or person who has info to convey b. message- info sent by source c. channel of communication - conveys the message (salesperson, advertisement) d. receiver - consumers who read, hear, see message e. encoding - having sender transform idea into set of symbols f. decoding - receiver take symbols (the message) and transform back into an idea

How stage of product's life cycle and stage of consumer's adoption process affects development of promotional mix Chapter 17

Product Life Cycle - Advertising is most important during introduction period of product life cycle, personal selling during growth, and sales promotion in maturity and decline a. introduction stage -to inform: publicity, advertising, sale-force calling intermediaries, sales promotion like free samples b. growth stage -to persuade: personal selling, advertising to differentiate c. maturity stage -to remind: reminder advertising, sales promotion(discounts), limited personal selling, direct-mail reminders d. decline stage -to phase out: little money spent on promotion Adoption Process a. pre-purchase stage -advertising is most important because informing is the goal, sales promotions like free samples b. purchase stage - personal selling is the most important, advertising low, sales promotions like coupons, direct marketing c. postpurchase stage - salesperson still important, advertising for assurance, sales promotion

Public Relations Chapter 18

Publicity tools - methods of obtaining non-personal presentation of an organization or product without direct cost Types: A. News releases - inform media of an idea for a story B. News conference - to introduce new products or big changes C. Public service announcements - free time donated by media - used for non profits D. High visibility individuals

Feedback loop Chapter 17

Response - impact of the message on the receiver Feedback - sender's interpretation of response and whether message was decoded as intended

D. Sales promotion Chapter 17

Short-term inducement of value offered to arouse interest in buying a product - Advantages: no limit to creativity or possibilities; can really make people buy things NOW; great for introduction and trial; flexible - Disadvantages: easily abused; don't necessarily create brand loyalty; possible negative effect on buyer behavior; lead to promotion wars; easily duplicated

Developing the Promotional Mix Chapter 17

Some of the factors affecting the selection of a promotional mix: - Target market - different targets respond better to different forms of promotion - Stage of the product's life cycle - Characteristics of the product - complexity, risk, ancillary services (degree of service/support required after sale) - Stage of adoption process - The budget

Sales plan Chapter 20

Statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed

Key account management Chapter 20

The practice of using team selling to focus on important customers so as to build mutually beneficial long term cooperative relationships

Field of experience Chapter 17

The sender and receiver of a message must have a similar understanding and knowledge they apply to the message -> without this there will be a miscommunication

Personal selling Chapter 20

Two way flow of communication between a buyer and seller (often face to face) designed to influence a person's or group's purchase decision

Direct Marketing Chapter 17

Value of direct marketing to consumers: - Don't have to go to store - Can shop 24 hours a day - Saves time - Avoid salespeople - Privacy - Save money Value of direct marketing to sellers: - High level of use - Generates responses - - Direct orders - result of offers that contain all necessary info - Lead generation - offer designed to generate interest in a product so consumers ask for additional information - Traffic generation - offer designed to motivate people to visit a business Technological, Global and Ethical Issues: - Privacy and legal issues relating to data collection and direct mailing, lack of reliability and safety in global mail systems, availability of credit

Promotional mix Chapter 17

promotional elements including communication tools, advertising, personal selling , sales promotion, public relations, and direct marketing

Account management policies Chapter 20

specifying whom salespeople should contact, what kinds of selling and customer service should be engaged in and how these activities should be carried out