Principles of Marketing

1. 12 Principles of Marketing Personal Selling & Sales Promotion Advertising & Public Relations

2. The Promotion Mix Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. • Broadcast, Print, Internet, Outdoor • Developing Advertising Programs • Setting advertising objectives • Setting the advertising budget • Developing advertising strategy • Evaluating advertising campaigns

3. Advertising Developing Advertising Programs An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time Objectives are classified by primary purpose • Inform • Persuade • Remind 15-5

4. Developing Advertising Programs Informative advertising is used when introducing a new product category; the objective is to build primary demand • Comparative advertising directly or indirectly compares the brand with one or more other brands Persuasive advertising is important with increased competition to build selective demand Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product 15-6

5. Advertising Developing the Advertising Strategy Advertising strategy is the strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating the advertising message and selecting the advertising media. Advertisements need to break through the clutter: • Gain attention • Communicate well 15-12

6. Developing Advertising Programs: Creating the Advertising Message Steps in creating effective advertising messages • Message strategy • Creative concept • Message execution Message strategy is the general message that will be communicated to consumers • Identifies consumer benefits 15-15

7. Advertising Developing Advertising Programs Creating the Advertising Message Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign Characteristics of the appeals include: • Meaningful • Believable • Distinctive 15-17

8. Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial evidence or endorsement Advertising Developing Advertising Programs Creating the Advertising Message Message execution captures the target market’s attention and interest and can include the following execution styles: 15-18

9. Personal Selling Personal selling is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships • Sales presentations • Trade shows • Incentive programs The goal of the personal selling process is to get new customers and obtain orders from them

10. Personal Selling The Nature of Personal Selling Examples of people who do the selling include: • Salespeople • Sales representatives • District managers • Account executives • Sales engineers • Agents • Account development representatives 16-4

11. Personal Selling Personal selling is the interpersonal part of the promotion mix and can include: • Face-to-face communication • Telephone communication • Video or Web conferencing Sales quotas are standards stating the amount salespeople should sell and how sales should be divided among the company’s products 16-6

12. Personal Selling Managing the Sales Force: Sales Force Structure Territorial sales force structure refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory • Defines salesperson’s job • Fixes accountability • Lowers sales expenses • Improves relationship building & selling effectiveness 16-11

13. Personal Selling:Sales Force Structure Product sales force structure refers to a structure where each salesperson sells along product lines • Improves product knowledge • Can lead to territorial conflicts Customer sales force structure refers to a structure where each salesperson sells along customer or industry lines • Improves customer relationships 16-12

14. Personal Selling Managing the Sales Force Other Sales Force Strategy and Structure Issues Team selling is used to service large complex accounts and can include experts from: • Sales • Marketing • Technical • R&D • Engineering • Operations • Finance 16-20

15. Personal Selling Managing the Sales Force Other Sales Force Strategy and Structure Issues Some challenges of team selling • Customers used to working with one salesperson may become confused or overwhelmed • Salespeople used to working alone can have difficulties working with and trusting teams • Evaluating individual contributions can lead to compensation issues 16-21

16. The Personal Selling Process Closing is the process where salespeople should recognize signals from the buyer, including physical actions, comments, and questions to close the sale Handling objections is the process where salespeople resolve problems that are logical, psychological, or unspoken 16-45

17. The Personal Selling Process When handling objections from buyers, salespeople should: • Be positive • Seek out hidden objections • Ask the buyers to clarify any objections • Take objections as opportunities to provide more information • Turn objections into reasons for buying 16-44

18. Sales Promotion Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service • Discounts • Coupons • Displays • Demonstrations

19. Rapid Growth of Sales Promotion: Types of Sales Promotions • Consumer promotions • Trade promotions • Sales force promotions Consumer promotions objectives are to: • Urge short-term customer buying • Enhance long-term customer relationships 16-50

20. Sales Promotion Objectives Trade promotions urge retailers to: • Carry new items or more inventory • Buy in advance • Advertise company products • Get more shelf space Sales force promotion objectives include getting: • More sales force support for new or current products • Salespeople to sign up new accounts 16-55