Session 20 - Promotion 2 Flashcards
What is transactional selling vs relationship selling?
Transactional: Focus more on just selling products or selling, the relationship between sales people and customers is week (e.g. mcdonald’s). Does more selling than listening and emphasizes adding new customers
Relationship: focus more on building long term relationships with customers through interacting with customers constantly (banks). Focus on learning about needs, more listening than selling and build long term relationships through credibility, trust and responsiveness
What are the different forms of personal selling?
- Order takers: process routine orders or reorders for product already sold. Often represent products that are highly standardized
- Order getters (aka sales reps): Identify prospective customers, persuade customers to buy products, close sales, follow up on customers after sales
Typically work with B2B products and complex customers, know the customers better than any person in the company, very expensive, enjoy high salaries and personal growth, makes sales calls, do little cold calling as they often serve existing customers
What is public relations?
Nonpersonal presentation of information for a company
Focuses on all the relationships an organization has with various publics. they want to persuade media gatekeepers to cover their capanies.
what is publics?
al groups of people which an organization interacts: employees, members, local communities, shareholders, customer other institutions
Who are stakeholders?
People who have a stake in a company or organization
What are gatekeepers?
Writers, editors, producers, talk-show coordinators, and newscasters
What tools are used in public relations?
News, speeches, special events, written materials, websites
What are the costs of public relations vs advertising?
Public relations are cheaper than advertising
Company does not pay for the space or time in the media, it pays staff to develop and circulate information and to manage events
What is credibility in public relations vs advertising?
- Public rends to trust the media more than they do advertisers.
- Consumers assume a story is legitimate if it appears in the media
what is control in public relations vs advertising?
- With news stories, public relations strategists are at the mercy of the media gatekeeper
- No guarantee that your story will run. The story may be rewritten or reorganized
- In contract, advertising runs exactly as the client who paid for it has approved, and as scheduled
What is sales promotions
- Refers to short-term promotion activities to encourage purchase or sales of a product
- Can be directed at consumers or channels members
- usually lasts for only a limited time period
- Can be implemented quickly and get sales results sooner than advertising
What has caused rapid growth of sales promotions
- Product managers are under pressure to increase current sales
- Companies face more competition
- Competing brands offer less differentiation
- Advertising efficacy has declined due to rising costs
- Consumers have become more deal-oriented
What are the objectives of sales promotion?
- Build awareness for the promoted product
- Provide information about the product
- Present an economic incentive to buyer to purchase product
- Create an invitation to buy now
What are examples of sales promotion?
Samples: A trial amount of product
Coupons: Certificates that give buyers a saving when they purchase specified products
Rebates: Similar to coupons except that the price reduction occurs after the purchase
Point of purchase: Located in high-traffic areas near the cash register or end of an aisle
Contests and sweepstakes: Give consumers the change to win something such as cash, trips or good, by luck or extra effort
