Promotion: Involves communicating information between seller and buyer to influence attitude and behavior

A) Personal Selling

B) Mass Selling (Advertising)

C) Publicity

D) Sales Promotion

B) Mass Selling: Communicating with a large number of customers Advertising: Paid form of nonpersonal ideas, etc.

C) Publicity: Unpaid form of nonpersonal ideas, etc.

D) Sales Promotion: Activities other than A, B, and C, that stimulate interest, trial, purchase, etc. (See Exhibit 14-2)
 
 

Reinforcing present attitudes or changing attitudes and behavior

Promotion seeks to shift demand curve. See exhibit 14-3!!!

Three types of promotion objectives:

1) Informing: educating

2) Persuading: Develop favorable attitudes

3) Reminding: Repeat sales

The communication process. See exhibit 14-5

Note: Different audiences see the same message in different ways.

When indirect channels are best -- middlemen can often help producers serve customer needs at a lower cost.
 
 

Pushing: uses personal selling, advertising, sales promotion. Sales people handle most of important communication See exhibit 14-8

Pulling: gets customers to ask middlemen for product. Aggressive promotion to final users. Uses sales promotion (contests, free samples, etc.)
 

The AIDA model -- Awareness, Interest, Desire and Action

The Adoption Curve: See exhibit 14-9

• Innovators: first to adopt, take risks, young, well educated, mobile
• Early Adopters: opinion leaders, young, mobile, important!!
• Early Majority: avoid risk, try after early adopters
• Late Majority: cautious about new ideas, older, little use of marketing information

Laggards: older, less educated, do things the way they have done in the past

1) The budget

2) Nature of product/stage in life cycle

The budget: Determine objectives: Which methods are most economical? Size of the promotion budget affects promotion efficiency and blend. See methods, bottom of page 442.

Life cycle:

1) Introduction: primary demand ( your idea)

2) Growth: selective demand ( your brand)

3) Maturity: reminder type advertising

4) Decline: speed up or slow down
 

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Marketing managers must decide:

• How many salespeople
• What kind
• Type of sales presentation
• How to select and train
• How to motivate

Good salespeople help the customer purchase products/services. They are problems solvers!!

They represent the company and the customer, aid in market information function, and can be strategy planners
 
 

Three basic tasks:

1) Order getters: seeking buyers with well organized sales presentation designed to sell product/service/idea -- sell           concepts/ideas

2) Ordertakers: complete sales, work on improving relationships. e.g. check out clerks

3) Supporting tasks: activities aimed at getting sales in the long run (2 types):

• Missionary salespeople: work for producers and call on middlemen
• Technical specialists: provide tech support to order oriented people
   

Different target markets need different selling tasks.

Must specify tasks, then divide responsibilities, then determine number of people needed.
 
 

Note: a friendly personality and nice appearance does not necessarily make a good sales person!!!!

Need a job description outlining what a person is expected to do.

Need to train in the following areas: policies and practices, product information, professional selling skills
 
 

Two decisions: level of compensation and method of payment

Amount of salary varies with job and skills

Method can be: straight salary, straight commission, or combination

Incentive plan should be large only if there is a direct relationship between effort and results.

Need incentive flexibility: in selling costs, among territories, among people, and among products

Keep it simple!!!

Note:  See Exhibit 15-2 for relationship between personal selling expenses and sales volume for straight commission, straight salary, and combination plan.
 
 

 KEY STEPS

1) Prospecting: follow all leads, then qualify prospects

2) Select target customer

3) Plan sales presentation: use consultative approach -- act as consultant to solve problem

4) Make sales presentation: Create interest, meet objectives, arouse desire (Awareness, Interest, Desire, Action)

5) Close Sale: ask for sale

6) Follow-up!!!

Note:  Read about the Consultative Selling Process.  This may be on our last test!!