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 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 time 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 process U.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 customer Organizing the sales force by product Organizing 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/ Total Commission Executive $71,693 $36,966 $108,572 Top Performer Mid-Level $70,832 $56,687 $125,844 $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 Professional Services $115,680 Manufacturing $74,139 Telecommunications $115,576 $87,678 Sales Incentives • • • • • • Leisure trips/ travel Merchandise/ gifts Recognition dinners Plaques/ awards Cash Cars, memberships, expense treatment