Public Relations, Sales Promotion, Personal Selling
Public Relations
• Attempts to influence the attitudes and perceptions of consumers, stockholders, and other stakeholders toward companies, brands, politicians, celebrities, not-for-profit organizations
• Do something good, then talk about it
Objectives of Public Relations• Introducing new products to manufacturers
• Introducing new products to consumers
• Influencing government legislation
• Enhancing the image of a city, region, or country
• Calling attention to a firm’s involvement with the community
Planning a PR Campaign
Develop Objectives
Execute the PR Campaign
Evaluate the Campaign
PR Campaign Strategy
• Statement of objectives• Situation analysis• Specification of target audiences, messages
to be communicated, specific program elements to be used
• Timetable and budget• Discussion of how the program will be
evaluated
Press Release Types
• Timely topics
• Research project stories
• Consumer information
Sponsorships
• PR activities through which companies provide financial support to help fund an event in return for publicized recognition of the company’s contribution
• Examples:– Olympics– NASCAR
Measuring Effectiveness of PR Efforts
• In-house assessment
• Awareness and Preference Studies
• Counting of press clippings
• Impression counts
Sales Promotion
• Programs that marketers design to build interest in or encourage purchase of a product or service during a specified time period
Sales Promotions by Target• Consumers (pull)
– Coupons
– Samples
– Contests
– Bonus packs
– Premiums
– Rebates
– Frequency programs
– Brand placement
• Trade (push)– Trade shows
– Incentive programs
– POP displays
– Push money
– Promotional products
– Cooperative promotions
Brand Placements
• Practice of integrating specific products and brands into filmed entertainment– name brand product is used as a prop or set in TV show
or movie– increase brand awareness and image
• 3 types of brand placements– visual - brand can be observed on set– verbal - actor mentions brand by name– hands-on - actor uses or interacts with product
Sales promotion alternativesSales promotion alternatives
Personal Selling
• Occurs when a company representative contacts a prospect directly regarding a product
• Critical for many push strategies, B2B products, products that are complex and expensive, and product requiring a “personal touch”
Types of Salespeople
• Order takers
• Technical specialists
• Missionary salespeople
• Team selling
• Order getters
How outside order-getting salespeople spend their How outside order-getting salespeople spend their time each weektime each week
Approaches to Personal Selling
• Transactional Marketing: The Hard Sell
• Relationship Selling– Winning customers– Keeping customers– Developing customers
The Selling Process
Stages and objectives of the personal selling processStages and objectives of the personal selling process
U.S. salesforce composition and changeU.S. salesforce composition and change
Sales Management
• Process of planning, implementing, and controlling the personal selling function– Setting Sales Force Objectives– Creating a Sales Force Strategy– Recruiting, Training, Rewarding Salespeople– Evaluating the Sales Force
The Sales Force Management Process
Organizing the sales force by customerOrganizing the sales force by customer
Organizing the sales force by productOrganizing the sales force by product
Organizing the sales force by geographyOrganizing the sales force by geography
Sales Force Compensation
• Straight commission plan
• Commission-with-draw plan*
• Straight salary compensation plan
• Quota-bonus plan
* Commission draws may or may not be recoverable
Sales Compensation Examples
Category Base Bonus/Commission
Total
Executive $71,693 $36,966 $108,572
TopPerformer
$70,832 $56,687 $125,844
Mid-Level $46,563 $42,515 $88,734
Low-Level $36,906 $20,569 $57,571
Average $53,293 $31,441 $84,004
Sales Compensation by Industry
Industry Compensation
Computer Software and Services
$115,680
Professional Services $87,678
Manufacturing $74,139
Telecommunications $115,576
Sales Incentives
• Leisure trips/ travel
• Merchandise/ gifts
• Recognition dinners
• Plaques/ awards
• Cash
• Cars, memberships, expense treatment