Chapter 17 Packet Notes Flashcards
Marketing communications that inform and persuade consumers.
- Personal selling
- Advertising
- Sales promotional tools
Marketing Communications: Getting the Message Across
- Source
- Message
- Channel
- Receiver
Communication Process Components
The message sender.
Source
The content being sent.
Message
The path the message travels.
Channel
The recipient of the message.
Receiver
- Nonpersonal advertising- advertising
- Personal- personal selling
- Special forms- sales promotion
Forms of Promotional Communication
A blend of nonpersonal, personal, and special forms for communication techniques aimed at a target market.
Promotional Mix
- Geographical nature of target market
- Size of promotional budget
- Product’s characteristics
Makeup of the Promotional Mix is Determined by:
- Allocating a percentage of sales.
- Deciding how much can be spared.
- Spending as much as the competition.
- Determining what it takes to do the job.
How Much Should a Small Business Spend on Promotion?
- WTDJ: What it takes to do the job
- APS: A Percentage of sales
- WCS: What can be spared
- ACS: As much as the competition spends
Key Terms
A sales presentation (promotion) delivered in a one-on-one manner.
Personal Selling
- Product knowledge
- Well-prepared sales presentation
- Ability to build good will
Personal Selling Requires:
- Successfully educate customers about the product’s advantages, uses, and limitations.
- Answer customer questions and counter customer objections.
Salespersons use Product Knowlege to:
Personal selling becomes order-taking when a salesperson lacks ____ ______.
Product Knowledge
A systematic process of continually looking for new customers.
Prospecting
- Personal referrals
- Impersonal referrals
- Marketer-initiated contacts
- Customer-initiated contacts
Prospecting Techniques
Salesperson initiates customer contact through referral by another party known to the customer.
Personal Referrals
Information on potential new customers developed from public records and published sources.
Impersonal Referrals
Market surveys are used to identify prospects.
Marketer-Initiated Contacts
Potential customers are identified through their contacts with the firm.
Customer-Initiated Contacts
- Nonfinancial rewards
- Financial rewards
Compensation for Salespeople
- Personal recognition of employees by the firm.
- Plaques and “Employee of the Month” awards
- Providing “perks” to superior performers
- Personal satisfaction drawn by salespersons from doing their work well.
Nonfinancial Rewards
- Commissions
- Straight salary
- Combination of commissions and salary
Financial Rewards
- Compensation paid as precentage of sales productivity.
- Strong sales motivator
Commissions
Compensation paid regardless of sales made.
Straight Salary
Balance of two compensation forms is adjusted to provide an increasing proportion of commission as salesperson gains experience.
Combination of Commissions and Salary
The impersonal presentation of a business idea through mass media.
Advertising
- To sell by informing, persuading, and reminding.
- To serve as complement to product quality and efficient service.
- To properly reflect changes in customer needs and preferences.
Advertising Objectives
- Product advertising
- Institutional advertising
Two Basic Types of Advertising
The presentation of a business idea designed to make potential customers aware of a specific product or service and create a desire for it.
Product Advertising
The presentation fo information about a particular firm, designed to enhance the firm’s image.
Institutional Advertising
- Frequency of advertising
- Where to advertise
Advertising Decision Factors
With regularity for effectiveness and continuity.
- Introduction of new uses for established products.
- Introduction of new products and services.
Frequency of Advertising
Appropriate media mix determined by:
- Geographical area for target market coverage
- Customer type targeted by advertising campaign
- Advertising media customarily used by industry
- Type of business
- Advertising on the World Wide Web (Internet)
Where to Advertise
- Sales promotion
- Specialties
- Trade show exhibits
- Publicity
- When to use sales promotion
Sales Promotional Tools
An inclusive term for any promotional techniques that are neither personal selling or advertising.
- Used in combination with personal selling and advertising.
Sales Promotion
Tangible and enduring functional items of worth distributed personally to recipients that serve as reminders of the firm.
- Pens, key chains, magnets, and clothing imprinted with the name, logo, or slogan of hte firm.
Specialties
- Provide hands-on experience with products.
- Are less costly than personal selling.
Trade Show Exhibits
Information about a firm and its products or services that appears as a news item, usually free of charge.
- Provides visibility for the firm
- Requires regular contacts with the news media
Publicity
- For manufacturers
- For wholesalers
- For retailers
When to use Sales Promotion
To stimulate channel members- retailers and wholesalers- to market a firm’s products.
For Manufacturers
To induce retailers to buy inventories earlier than they normally would.
For Wholesalers
To persuade customers to make a purchase.
For Retailers
