Presentation on theme: "Chapter 10 Marketing communication and personal selling"— Presentation transcript:
1 Chapter 10 Marketing communication and personal selling
2 Learning objectives1 Discuss the role of promotion in the marketing mix2 Discuss the elements of the promotional mix3 Describe the communication process4 Explain the goals and tasks of promotion5 Discuss the AIDA concept and its relationship to the promotional mix
3 Learning objectives (cont.) 6 Describe the factors that affect the promotional mix7 Describe personal selling8 Discuss the key differences between relationship selling and traditional selling9 List the steps in the selling process10 Describe the functions of sales management
4 Define the term marketing Learning objective 1Discuss the role of promotion in the marketing mixDefine the term marketing
5 1PromotionCommunication by marketers that informs, persuades and reminds potential buyers of a product in order to influence an opinion or elicit a response.
6 1Promotional strategyA plan for the optimal use of the elements of promotion:advertisingpublic relationspersonal sellingsales promotion.
7 Overall marketing objectives 1The role of promotionOverall marketing objectivesPromotional mixAdvertisingPublic relationsPersonal sellingSales promotionPromotion planMarketing mixProductDistributionPromotionPriceTarget market
8 Describe four marketing management philosophies. Learning objective 2Describe four marketing management philosophies.Discuss the elements of the promotional mix
9 Elements of the promotional mix 2Elements of the promotional mixAdvertisingPublic relationsPersonal sellingSales promotion
10 2Promotional mixCombination of promotion tools used to reach the target market and fulfill the organisation’s overall goals.
11 2AdvertisingImpersonal, one-way mass communication about a product or organisation that is paid for by a marketer.
12 2Public relationsThe marketing function that evaluates public attitudes, identifies areas within the organisation that the public may be interested in and executes a program of action to earn public understanding and acceptance.
13 2PublicityPublic information about a company, good or service appearing in the mass media as a news item.
14 2Sales promotionMarketing activities – other than personal selling, advertising and public relations – that stimulate consumer buying and dealer effectiveness.
15 2Personal sellingPlanned presentation to one or more prospective buyers for the purpose of making a sale.
16 Integrated marketing communication 2Integrated marketing communicationThe method of carefully coordinating all promotional activities to produce a consistent, unified message that is customer-focused.
17 Describe four marketing management philosophies. Learning objective 3Describe four marketing management philosophies.Describe the communication process
18 3CommunicationThe process by which we exchange or share meanings through a common set of symbols.
19 Marketing communication 3Marketing communicationCategories of communication:interpersonal communicationmass communication
20 The communication process 3The communication processAs sendersAs receiversInformPersuadeRemindDevelop messagesAdapt messagesSpot new communication opportunities
21 The sender and encoding 3The sender and encodingSenderThe originator of the message in the communication process.EncodingThe conversion of a sender’s ideas and thoughts into a message, usually in the form of words or signs.
22 The communication process 3The communication processNoiseSenderEncoding messageMessage channelDecoding messageReceiverMessage channel
23 Learning objective 4Explain the goals and tasks of promotion
24 Goals and tasks of promotion 4Goals and tasks of promotionInformingRemindingTargetaudiencePersuading
25 Goals and tasks of promotion (cont.) 4Goals and tasks of promotion (cont.)Informative objectiveIncrease awarenessExplain how product worksSuggest new usesBuild company image
26 Goals and tasks of promotion (cont.) 4Goals and tasks of promotion (cont.)Persuasion objectiveEncourage brand switchingChange customers’ perception of product attributesInfluence buying decisionPersuade customers to call
27 Goals and tasks of promotion (cont.) 4Goals and tasks of promotion (cont.)Reminder objectiveRemind customers that product may be neededRemind customers where to buy productMaintain customer awareness
28 Learning objective 5Discuss the AIDA concept and its relationship to the promotional mix
29 5The AIDA ConceptModel that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.AttentionInterestDesireAction
30 AIDA and the promotional mix 5AIDA and the promotional mixAwarenessInterestDesireActionPersonalsellingSomewhateffectiveVeryAdvertisingVeryeffectiveSomewhatNotSalespromotionSomewhateffectiveSomewhateffectiveVeryeffectiveVeryeffectivePublicrelationsVeryeffectiveNot
31 Learning objective 6Describe the factors that affect the promotional mix
32 Factors affecting the promotional mix 6Factors affecting the promotional mixNature of productStage in product life cycleTarget market factorsType of buying decisionPromotion fundsPush or pull strategy
33 Nature of the product 6 Product characteristics Business product vs consumer productCosts and risksSocial risk
34 Stage in the product life cycle 6Stage in the product life cycleMaturityMaturityGrowthGrowthDeclineSales ($)IntroductionTime
35 Product life cycle and the promotional mix 6Product life cycle and the promotional mixMaturitySales ($)GrowthDeclineIntroductionTimeLight advertising, pre-introduction publicityHeavy use ofadvertising,PR forawareness,salespromotionfor trialAdvertising,PR, brandloyalty,personalselling fordistributionAds decrease,sales promotion,personal selling, reminder andpersuasiveAds and PRdecrease,limitedsalespromotion,personalselling fordistribution
37 Type of buying decision 6Type of buying decisionRoutineadvertisingsales promotionNot routine or complexpublic relationsComplexpersonal selling
38 Available funds 6 Trade-offs with funds available Number of people in target marketQuality of communication neededRelative costs of promotional elements
39 Push and pull strategies 6Push and pull strategiesPush strategyManufacturerpromotes towholesalerWholesalerpromotes toretailerRetailerpromotes toconsumerConsumerbuys fromretailerOrders to manufacturerPull strategyManufacturerpromotes toconsumerConsumerdemandsproductfrom retailerRetailerdemands product from wholesalerWholesalerdemandsproduct frommanufacturerOrders to manufacturer
41 7Personal sellingProvides a detailed explanation or demonstration of product.Message can be varied to fit the needs of each prospective customer.Can be directed to specific qualified prospects.Costs can be controlled by adjusting sales force size.
42 Learning objective 8Discuss the key differences between relationship selling and traditional selling
43 8Relationship sellingA sales practice that involves building, maintaining and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
44 Relationship selling (cont.) 8Relationship selling (cont.)Focus: Building mutual trustLong-term value-added benefits to buyer
45 Relationship vs traditional selling 8Relationship vs traditional sellingTraditional personal sellingSell productsFocus on closing salesLimited sales planningDiscuss productAssess ‘product-specific’ needs‘Lone wolf’ approachPricing/product focusShort-term sales follow-upRelationship sellingSell advice, assistance, counselFocus on customer’s bottom lineSales planning is top priorityBuild problem-solving environmentConduct discovery in scope of operationsTeam approachProfit impact and strategic benefit focusLong-term sales follow-up
46 Learning objective 9List the steps in the selling process
47 Steps in the selling process 9Steps in the selling processGenerate leadsQualify leadsProbe customer needsDevelop solutionsHandle objectionsClose the saleFollow up
48 Learning objective 10Describe the functions of sales management
49 Sales management responsibilities 10Sales management responsibilitiesDefine sales goals and sales processDetermine sales force structureRecruit and train sales forceCompensate and motivate sales teamEvaluate sales team