Week 9 Flashcards
Public Relations
Building good relationships with the company’s various
publics by obtaining favourable publicity, building up a
good corporate image, and handling or heading off
unfavourable rumours, stories or events.
Public Relations includes
- Press / Media releases
- Sponsorship
- Special events
- Experiential
- Networking
Public Relations departments
• Press relations or press agency • Product publicity • Public affairs • Lobbying • Investor relations • Development (Not for profit)
Public Relations advantages
• Highly credible • Able to reach many prospects • Can “dramatise” the message • Is very effective when used with other types of promotion
Public Relations disadvantages
- Tends to be under-utilised
* Used as an after-thought
Public relations uses several tools:
- News
- Special
- Written materials
- Audio visual materials
- Corporate identity materials
- Storytelling and engaging using online materials
Publicity
Unpaid exposure in the media.
Personal Selling
Personal presentation by the firm’s salesforce for the
purpose of making sales and building customer
relationships.
Personal Selling includes
- Sales presentation
- Trade shows
- Tele-sales
Personal Selling advantages
• Effective for building preference, conviction and action • Interpersonal communication • Retains consumer interest for longer • Cost effective in markets with high ticket items or where there are few buyers
Personal Selling disadvantages
• Requires long term management commitment • Cost: US & Australian companies spend 3 times as much on personal selling as on advertising
Salesperson
An individual representing a company to customers by performing one or more of the following:
- Prospecting
- Communicating
- Selling
- Servicing
- Information gathering
- Relationship building
The Role of the Salesforce
Linking the company with its
customers, and customers with the company
Coordinating sales and marketing
Linking the company with its
customers, and customers with the company
• Identifying sales opportunities • Managing the buyer-seller relationship • Providing customer intelligence • Carrying out market research • Promoting the company to its target market • Act as customer ‘champions’ inside the company
Coordinating sales and marketing
Working together - inter-department
Sales / Marketing relationships
Designing a sales force structure
A salesforce can be divided along multiple lines of responsibility
Territorial
Product
Customers
Complex
Territorial
Assigns each salesperson to an exclusive geographic area to sell the company’s full line
Product
the salesperson specializes in selling only a portion of the
company’s products or lines
Customers
the salesperson specializes in selling only a portion of the
company’s products or lines
Complex
combining several types of salesforce structures
Salesforce size
Calculating the size of the
sales force
Group accounts into classes based on size, status or other factors related to the effort required to maintain them. Determine the number of salespeople required to call on each class of account.
Workload approach in practice
Photo 23/9/18
Personal selling process
- Prospecting and qualifying
- Pre-approach
- Approach
- Presentation and demonstration
- Handling objections
- Closing
- Followup
Sales Promotions
Short-term incentives to encourage the purchase or
sale of a product or service. Sales promotions are usually used together with advertising,
personal selling, direct marketing or other promotion mix tools.
Sales Promotions include
- Discounts
- Coupons
- Demonstrations
- Point of sale
- Incentive programs
- Merchandising
Sales promotion objectives
Consumer promotions
Trade promotions
Business promotions
Consumer promotions
Consumer promotions will urge short-term customer buying
Trade promotions
Trade promotions include getting retailers to carry new items and
more inventory
Business promotions
Business promotions are used to generate business leads, reward customers, and motivate sales people.
– For the salesforce, this includes getting support for current or
new products to sign up new accounts
Sales Promotion advantages
• Varied tool includes coupons, POS materials, premiums and more • Attracts consumer attention and provide incentives to purchase • Invites and rewards quick sales
Sales Promotion disadvantages
• Sales promotion effects
are often short lived
• Not as effective as
advertising or selling
Major sales promotion tools
Consumer promotions
- Free samples
- Premium offers
- Loyalty programs
- Contests
- Coupons
- Discounts
- Refunds
- Rebates
- Point of purchase
- Event sponsorship
Trade sales promotions
Present products to business customers and stimulate the products’
movement through the marketing channel.
Trade sales promotions examples
• Conventions and trade shows • Sales contests for marketing intermediaries – Gifts and premium money – Trade allowances – Cooperative advertising – Dealer listings
Other forms of promotion
Ambush marketing
Guerilla marketing
Product placement
Plug
Ambush marketing
presenting marketing messages at an event
that is sponsored by an unrelated business or a competitor
Guerilla marketing
tactical use of an aggressive and unconventional marketing approach to grab attention
Product placement
paid inclusion of products in movies, television shows, video games, songs and books
Plug
When the media overtly promotes a product within a program rather than as a separate advertisement
Developing the sales promotion program
• Decide on the size of the incentive • Conditions for participation • Promote and distribute the promotion • Determine the length of the promotion • Decide on how the promotion will be evaluated (measure against the objectives and return on investment)
Direct and digital marketing model
Direct & digital marketing is interacting directly with carefully targeted individual consumers and communities to obtain an immediate response and build lasting customer relationships Direct marketing and digital or online marketing must be carefully integrated with other elements of the marketing mix. Beyond brand and relationship building, direct and digital marketers usually seek a direct, immediate, and measurable
consumer response. Many companies still use direct and digital marketing as a
supplementary channel or medium. The direct and digital marketing model is rapidly changing the way companies think about building relationships with customers.
Benefits of direct and digital marketing to buyers
• Convenient • Easy • Private Access anywhere, anytime access
Benefits of direct and digital marketing to sellers
• Low-cost • Efficient • Speedy alternative • Flexibility Access to reach more buyers
Direct marketing
Interacting directly with carefully targeted individual
consumers and communities to both obtain an immediate response and build lasting customer relationships. Companies tailor offers and content to the needs and interests of narrowly defined segments or individual buyers using various methods.
Direct marketing includes
- Catalogues
- Telemarketing
- Electronic marketing
- Network marketing
Direct Marketing advantages
• Highly personalized form of communication • Immediate and customised • Interactive • Suited to highly targeted communications and relationship building
Direct Marketing disadvantages
• Can be ignored
• Getting the frequency
right can be difficult
Direct marekting methods
Direct print and reproduction
direct response Tv and radio
Telemarketing and telesales
Kiosks and electronic dispensing
Direct print and reproduction
Mail-outs of letters, product lists, samples, and paper-based and digital
catalogues on CD-ROM or DVD sent to a list or a known database of
customers, or to a targeted group that the marketer wishes to convert to
a database entry.
Direct print and reproduction marketing consists of
– Direct mail sent to both those the company wish to add as customers, and
– Those who have already responded to previous offers
Prediction that traditional forms of direct mail in coming years will decrease
Digital forms such as email, online social media and mobile
marketing are faster and lower cost
Direct-response television and radio
Where commercials are put to air that persuasively describe a product and then give a toll-free number for viewers to call and place an order.
Direct-response television and radio
• Often used to
– build a database
– make immediate sales
• Often companies employ sales
Acquisition media
Television and radio are sometimes used along with other media as acquisition media to build a customer database
– Home shopping channels on FTA–TV, and PAY–TV are part of direct and digital marketing categories as consumers click their remotes to interact
Telemarketing
• Inbound telemarketing - viewers are invited to call a 1800, 0055 or
1300 number and place their order
• Outbound telemarketing - Human telephone operators or
computers with voice recognition capabilities ‘cold call’, seeking an
order or perhaps a donation
Direct Marketing - Telesales
- Telesales usually involves a permanent part-time bank of telephone operators who routinely call known customers to take their orders.
- The only feature differentiating this method from telemarketing is that, in telesales, the calls are routinely made to regular customers, such as retailers
Kiosks and electronic dispensing
- Kiosks machines used to provide information and take orders.
- Electronic dispensing machines (EDMs) dispense and receive cash, as do the EFTPOS machines used by retailers
