Thứ Ba, 27 tháng 5, 2014

Public relations, sales promotion & personal selling


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Unit
Unit
Unit
Unit
12:
12:
12:
12:
Public
Public
Public
Public
Relations,
Relations,
Relations,
Relations,
Sales
Sales
Sales
Sales
Promotion,
Promotion,
Promotion,
Promotion,
and
and
and
and
Personal
Personal
Personal
Personal
Selling
Selling
Selling
Selling
Public
Public
Public
Public
Relations
Relations
Relations
Relations
and
and
and
and
Publicity:
Publicity:
Publicity:
Publicity:
Public
Public
Public
Public
relations
relations
relations
relations
is
an
organization

s
communications
that
seek
to
build
good
relationships
with
an
organization

s
publics,
including
consumers,
stockholders,
and
legislators.
It
includes
obtaining
favorable
publicity,
building
up
a
good

corporate
image,

and
handling
or
heading
off
unfavorable
rumors,
stories,
and
events.
Publicity
Publicity
Publicity
Publicity
is
unpaid
communication
about
an
organization
that
appears
in
the
mass
media.
Public
relations
may
consist
of
writing
press
releases,
holding
special
events,
conducting
and
publishing
consumer
surveys
about
a
product
or
the
company,
and
efforts
to
put
a
positive
spin
on
negative
company
news.
Unlike
sales
promotions,
public
relations
activities
do
not
usually
seek
a
short-term
increase
in
sales.
Instead,
they
try
to
craft
a
long-term
positive
image
for
the
product
or
the
organization.
Compared
with
personal
selling,
advertising,
and
sales
promotions,
expenditures
for
public
relations
are
usually
low
in
most
organizations.
Since
companies
do
not
pay
for
publicity,
they
have
less
control
over
the
publication
of
good
or
bad
company
news.
But
this
often
means
that
consumers
find
this
type
of
news
source
more
believable
than
if
the
information
were
disseminated
directly
by
the
company.
Marketing
Marketing
Marketing
Marketing
and
and
and
and
Nonmarketing
Nonmarketing
Nonmarketing
Nonmarketing
Public
Public
Public
Public
Relations:
Relations:
Relations:
Relations:
The
basic
rule
of
public
relations
is
to
do
something
good
and
then
talk
about
it.
Public
relations
is
crucial
to
an
organization

s
ability
to
establish
and
maintain
a
favorable
image.
Nonmarketing
Nonmarketing
Nonmarketing
Nonmarketing
public
public
public
public
relations
relations
relations
relations
refers
to
a
company

s
messages
about
general
management
issues.
When
a
company
makes
a
decision
that
affects
any
of
its
publics,
input
from
public
relations
specialists
can
help
to
smooth
its
dealings
with
those
publics.
A
company,
for
example,
that
decides
to
close
a
plant
would
need
advice
on
how
to
deal
with
the
local
community.
Other
examples
include
a
company

s
attempts
to
gain
favorable
public
opinion
during
a
long
strike
or
an
open
letter
to
Congress
published
in
a
newspaper
during
congressional
debates
on
a
bill
that
would
affect
a
particular
industry.
Marketing
Marketing
Marketing
Marketing
public
public
public
public
relations
relations
relations
relations
refers
to
narrowly
focused
public
relations
activities
that
directly
support
marketing
goals.
Marketing
public
relations
involves
an
organization

s
relationships
with
consumers
or
other
groups
about
marketing
concerns
and
can
be
either
proactive
or
reactive
.
With
proactive
marketing
public
relations
,
the
marketer
takes
the
initiative
and
seeks
out
opportunities
for
promoting
the
firm

s
products,
often
including
distribution
of
press
releases
and
feature
articles.
It
is
a
powerful
marketing
tool
since
it
adds
news
coverage
that
reinforces
direct
promotion
activities.
Although
some
publicity
happens
naturally,
more
typically
a

buzz

needs
to
be
created
by
a
firm

s
publicists.
Reactive
marketing
public
relations
responds
to
an
external
situation
that
has
potential
negative
consequences
for
the
organization.
The
goal
in
this
case
is
to
manage
the
flow
of
information
to
address
concerns
so
that
consumers
don

t
panic
and
distributors
don

t
abandon
the
product.
The
Internet
has
expanded
the
capabilities
of
the
traditional
public
relations
function.
Corporate
websites
post
testimonials
from
customers,
make
new
product
announcements,
and
respond
quickly
to
important
events.
News
releases
posted
on
the
company
website
may
double
as
sales
vehicles.
The
Internet
can
also
be
very
effective
in
handling
company
crises.
With
a
host
of
Internet
news
sites,
companies
can
respond
to
a
crisis
online
in
far
less
time
than
other
forms
of
communication
such
as
press
releases
or
conferences.
Public
Public
Public
Public
Relations
Relations
Relations
Relations
Objectives:
Objectives:
Objectives:
Objectives:
Public
relations
specialists
need
to
operate
at
many
levels
to
ensure
that
various
publics
of
a
company
receive
coordinated,
positive
messages
about
the
firm.
These
groups
include
customers,
suppliers,
employees,
the
media,
stockholders,
and
government
regulators.
Companies
that
practice
integrated
marketing
communication
strategies
know
that
public
relations
strategies
are
best
used
in
concert
with
advertising,
sales
promotion,
and
personal
selling
in
order
to
send
a
consistent
message
to
customers
and
other
stakeholders.
As
part
of
the
total
IMC
plan,
public
relations
departments
may
perform
any
or
all
of
the
following
functions
to
achieve
communications
objectives:

Public
Affairs

Building
and
maintaining
national
or
local
community
relations.

Lobbying

Building
and
maintaining
relations
with
legislators
and
government
officials
to
influence
legislation
and
regulation.

Investor
Relations

Maintaining
relationships
with
shareholders
and
others
in
the
financial
community.

Development

Public
relations
with
donors
or
members
of
nonprofit
organizations
to
gain
financial
or
volunteer
support.

Location
PR

Enhancing
the
image
of
a
city,
region,
or
country.

Press
Relations

Creating
and
placing
newsworthy
information
in
the
news
media
to
attract
attention
to
a
person
or
product.

Product
Publicity

Publicizing
specific
products
to
consumers
as
well
as
other
organizations.
Public
Public
Public
Public
Relations
Relations
Relations
Relations
Tools:
Tools:
Tools:
Tools:
Public
relations
professionals
use
several
tools.
They
use:

News
,

Speeches
,

Special
Events
,

Mobile
Marketing
,

Written
Materials
,

Audiovisual
Materials
,

Corporate
Identity
Materials
,
and

Public
Service
Activities
.
One
of
the
major
tools
is
news
.
PR
professionals
find
or
create
favorable
news
about
the
organization
and
its
products
or
people.
Speeches
can
also
create
product
and
company
publicity.
Increasingly,
company
executives
must
field
questions
from
the
media
or
give
talks
at
trade
associations
or
sales
meetings.
Another
common
PR
tool
is
special
events
,
ranging
from
news
conferences,
press
tours,
grand
openings,
and
fireworks
displays
to
laser
shows,
hot
air
balloon
releases,
multimedia
presentations
and
star-studded
spectaculars,
and
educational
programs
designed
to
reach
and
interest
target
publics.
Recently,
mobile
marketing

traveling
promotional
tours
that
bring
the
brand
to
consumers

has
emerged
as
an
effective
way
to
build
one-to-one
relationships
with
targeted
consumers.
Public
relations
people
also
prepare
written
materials
to
reach
and
influence
their
target
markets.
These
materials
include
annual
reports,
brochures,
articles,
and
company
newsletters
and
magazines.
Audiovisual
materials
,
such
as
films,
slide-and-sound
programs,
and
video-
and
audiocassettes,
are
being
used
increasingly
as
communication
tools.
Corporate
identity
materials
can
also
help
create
a
corporate
identity
that
the
public
immediately
recognizes.
Logos,
stationery,
brochures,
signs,
business
forms,
business
cards,
buildings,
uniforms,
and
company
cars
and
trucks

all
become
marketing
tools
when
they
are
attractive,
distinctive,
and
memorable.
Finally,
companies
can
improve
public
goodwill
by
contributing
money
and
time
to
public
service
activities
.
Planning
Planning
Planning
Planning
a
a
a
a
Public
Public
Public
Public
Relations
Relations
Relations
Relations
Campaign:
Campaign:
Campaign:
Campaign:
A
public
relations
campaign
is
a
coordinated
effort
to
communicate
with
one
or
more
of
the
organization

s
publics.
This
is
a
three-step
process
of:
1.
Developing
Objectives,
2.
Executing,
and
3.
Evaluating.
The
organization
must
first
develop
clear
objectives
for
the
PR
program
that
define
the
message
it
wants
people
to
hear.
The
PR
specialists
must
develop
a
campaign
strategy
that
includes:

a
statement
of
objectives;

a
situation
analysis;

specification
of
target
publics,
messages
to
be
communicated,
and
specific
program
elements
to
be
used;

a
timetable
and
budget;
and

a
discussion
of
how
the
program
will
be
evaluated.
Execution
of
the
campaign
means
deciding
precisely
how
the
message
should
be
communicated
to
the
targeted
publics
and
implementing
the
decisions.
An
organization
can
use
a
variety
of
public
relations
tools:
news
conferences,
special
events,
written
materials,
etc.
One
of
the
barriers
to
greater
reliance
on
public
relations
campaigns
is
the
difficulty
encountered
when
trying
to
gauge
their
effectiveness.
It
is
possible
to
tell
if
a
PR
campaign
is
getting
media
exposure,
though
it

s
more
difficult
to
gauge
bottom-line
impact.
In-house
assessments,
awareness
and
preference
research
studies,
and
the
measurement
of
print
and
broadcast
coverage
generated
by
PR
activities
as
well
as
impression
counts
can
be
used
in
the
PR
campaign
evaluation.
Sales
Sales
Sales
Sales
Promotion:
Promotion:
Promotion:
Promotion:
Sales
Sales
Sales
Sales
Promotion
Promotion
Promotion
Promotion
is
the
use
of
short-term
incentives
to
encourage
the
purchase
or
sale
of
a
product.
Sales
promotions
are
programs
such
as
contests,
coupons,
displays,
trade
shows,
samples,
premiums,
product
demonstrations,
or
other
incentives
that
marketers
design
to
build
interest
in
or
encourage
purchase
of
a
product
during
a
specified
time
period.
Sales
promotions
are
intended
to
stimulate
immediate
action,
often
in
the
form
of
a
purchase,
rather
than
to
build
long-term
loyalty.
Whereas
advertising
and
personal
selling
offer
reasons
to
buy
a
product,
sales
promotion
offers
reasons
to
buy
now
.
Sales
promotion
geared
to
marketing
intermediaries
is
called
trade
trade
trade
trade
promotion
promotion
promotion
promotion
.
Companies
actually
spend
about
as
much
on
trade
promotion
as
on
advertising
and
consumer-oriented
sales
promotion
combined.
Trade
promotion
strategies
include
offering
free
merchandise,
buyback
allowances,
and
merchandise
allowances
along
with
sponsorship
of
sales
contests
to
encourage
wholesalers
and
retailers
to
sell
more
of
certain
products
or
product
lines.
Sales
promotion
tools
are
used
by
most
organizations,
including
manufacturers,
distributors,
retailers,
trade
associations,
and
not-for-profit
institutions.
They
are
targeted
toward
final
buyers,
retailers
and
wholesalers,
business
customers,
and
members
of
the
sales
force.
Several
factors
have
contributed
to
the
rapid
growth
of
sales
promotion,
particularly
in
consumer
markets.
First,
inside
the
company,
product
managers
face
greater
pressures
to
increase
their
current
sales;
and
sales
promotion
is
viewed
as
an
effective
short-run
sales
tool.
Second,
externally,
the
company
faces
more
competition;
and
competing
brands
are
less
differentiated.
Increasingly,
competitors
are
using
sales
promotion
to
help
differentiate
their
offers.
Third,
advertising
efficiency
has
declined
because
of
rising
costs,
media
clutter,
and
legal
constraints.
Finally,
consumers
have
become
more
deal
oriented,
and
ever-larger
retailers
are
demanding
more
deals
from
manufacturers.
The
growing
use
of
sales
promotion
has
resulted
in
promotion
clutter,
similar
to
advertising
clutter,
however.
Consumers
are
increasingly
tuning
out
sales
promotions,
weakening
their
ability
to
trigger
immediate
purchase.
Manufacturers
are
now
searching
for
ways
to
rise
above
the
clutter,
such
as
offering
larger
coupon
values
or
creating
more
dramatic
point-of
purchase
displays.
Sales
Sales
Sales
Sales
Promotion
Promotion
Promotion
Promotion
Objectives:
Objectives:
Objectives:
Objectives:
Sales
promotion
objectives
differ
widely:

Increase
Short-Term
Sales
(consumer
promotion)

Build
Long-Term
Market
Share
(consumer
promotion)

Encourage
Retailers
to
Carry
New
Items
and
Additional
Inventory
(trade
promotion)

Encourage
Retailers
to
Advertise
and
Provide
More
Shelf
Space
(trade
promotion)

Encourage
Retailers
to
Buy
Ahead
(trade
promotion)

Increase
Sales
Force
Support
(sales
force
promotion)

Increase
Number
of
New
Accounts
(sales
force
promotion)
Sellers
may
use
consumer
promotions
to
increase
short-term
sales
or
to
help
build
long-term
market
share.
Objectives
for
trade
promotions
include
getting
retailers
to
carry
new
items
and
more
inventory,
getting
them
to
advertise
the
product
and
give
it
more
shelf
space,
and
getting
them
to
buy
ahead.
Sales
force
promotion
objectives
include
getting
more
sales
force
support
for
current
or
new
products
or
getting
salespeople
to
sign
up
new
accounts.
Sales
promotions
are
usually
used
together
with
advertising,
personal
selling,
or
other
promotion
mix
tools.
Consumer
promotions
must
usually
be
advertised
and
can
add
excitement
and
pulling
power
to
ads.
Trade
and
sales
force
promotions
support
the
firm

s
personal
selling
process.
In
general,
rather
than
creating
only
short-term
sales
or
temporary
brand
switching,
sales
promotions
should
help
to
reinforce
the
product

s
position
and
build
long-term
customer
relationships.
Increasingly,
marketers
are
avoiding

quick
fix,

price-only
promotions
in
favor
of
promotions
designed
to
build
brand
equity.
Consumer-Oriented
Consumer-Oriented
Consumer-Oriented
Consumer-Oriented
Sales
Sales
Sales
Sales
Promotion:
Promotion:
Promotion:
Promotion:
The
main
consumer
promotion
tools
include
samples,
coupons,
cash
refunds,
price
packs,
premiums,
advertising
specialties,
patronage
rewards,
point-of-purchase
displays
and
demonstrations,
and
contests,
sweepstakes,
and
games.
Consumer-oriented
sales
promotions
can
be
classified
as
either
price-based
or
attention-getting
consumer
promotion.
Price-Based
Consumer
Promotion
Price-based
consumer
promotions
emphasize
short-term
price
reductions
or
refunds,
encouraging
consumers
to
choose
a
brand
while
the
deal
is
on.
If
used
too
frequently,
however,
consumers
become
conditioned
to
purchase
the
product
only
at
the
lower
promotional
price.
Coupons
A
coupon
coupon
coupon
coupon
is
a
certificate
that
gives
buyers
a
saving
when
they
purchase
a
specified
product.
Coupons
can
stimulate
sales
of
a
mature
brand
or
promote
early
trial
of
a
new
brand.
Redemption
rates
have
been
declining
in
recent
years,
however,
as
a
result
of
coupon
clutter.
Most
major
consumer
goods
companies
are
issuing
fewer
coupons
and
targeting
them
more
carefully.
They
are
also
cultivating
new
outlets
for
distributing
coupons,
such
as
supermarket
shelf
dispensers,
electronic
point-of-sale
coupon
printers,
or

paperless
coupon
systems.

Cash
Rebate
Offers
A
cash
cash
cash
cash
rebate
rebate
rebate
rebate
is
an
offer
to
refund
part
of
the
purchase
price
of
a
product
to
consumers
who
send
a

proof
of
purchase

to
the
manufacturer.
Price
Packs
A
price
price
price
price
pack
pack
pack
pack
is
a
reduced
price
that
is
marked
by
the
producer
directly
on
the
label
or
package.
Price
packs
can
be
single
packages
sold
at
a
reduced
price,
or
two
related
products
banded
together.
Price
packs
are
very
effective

even
more
so
than
coupons

in
stimulating
short-term
sales.
Patronage
Rewards
A
patronage
patronage
patronage
patronage
reward
reward
reward
reward
is
cash
or
other
award
for
the
regular
use
of
a
certain
company

s
products.
Special
Packs
A
special
special
special
special
pack
pack
pack
pack
is
a
package
that
gives
the
shopper
more
product
instead
of
lowering
its
price.
A
special
pack
also
can
be
a
separate
product
given
away
along
with
another
product.
Attention-Getting
Consumer
Promotion
Attention-getting
consumer
promotions
stimulate
interest
in
and
publicity
for
a
company

s
products.
Samples
A
sample
sample
sample
sample
is
a
small
amount
of
a
product
offered
to
consumers
for
trial.
Sampling
is
the
most
effective

but
most
expensive

way
to
introduce
a
new
product.
About
84
percent
of
consumer
packaged-goods
marketers
use
sampling
as
a
part
of
their
promotion
strategy.
Some
samples
are
free;
for
others,
companies
charge
a
small
amount
to
offset
its
cost.
The
sample
might
be
delivered
door-to-door,
sent
by
mail,
handed
out
in
a
store,
attached
to
another
product,
or
featured
in
an
ad.
Samples
can
also
come
with
the
morning
newspaper,
in
a
sample
pack,
or
via
the
Internet.
Premiums
A
premium
premium
premium
premium
is
a
good
offered
either
free
or
at
low
cost
as
an
incentive
to
buy
a
product.
A
premium
is
not
the
product
being
promoted.
It
is
used
as
an
incentive
to
encourage
purchase
of
the
featured
product.
A
premium
may
come
inside
or
outside
the
package,
or
through
the
mail.
Advertising
Specialties
An
advertising
advertising
advertising
advertising
specialty
specialty
specialty
specialty
is
a
useful
article
imprinted
with
an
advertiser

s
name,
given
as
a
gift
to
consumers.
Typical
items
include
pens,
calendars,
key
rings,
matches,
shopping
bags,
T-shirts,
caps,
nail
files,
and
coffee
mugs.
In
a
recent
study,
63
percent
of
all
consumers
surveyed
were
either
carrying
or
wearing
an
ad
specialty
item.
More
than
three-quarters
of
those
who
had
an
item
could
recall
the
advertiser

s
name
or
message
before
showing
the
item
to
the
interviewer.
Point-of-Purchase
(POP)
Promotions
A
point-of-purchase
point-of-purchase
point-of-purchase
point-of-purchase
promotion
promotion
promotion
promotion
is
a
display
or
demonstration
that
takes
place
at
the
point
of
purchase
or
sale.
Unfortunately,
many
retailers
do
not
like
to
handle
the
hundreds
of
displays,
signs,
and
posters
they
receive
from
manufacturers
each
year.
Manufacturers
have
responded
by
offering
better
POP
materials,
tying
them
in
with
television
or
print
messages,
and
offering
to
set
them
up.
Contests,
Sweepstakes,
and
Games
Contests
Contests
Contests
Contests
,
sweepstakes
sweepstakes
sweepstakes
sweepstakes
,
and
games
games
games
games
are
promotional
events
that
give
consumers
the
chance
to
win
something

such
as
cash,
trips,
or
goods

by
luck
or
through
extra
effort.
A
contest
calls
for
consumers
to
submit
an
entry

a
jingle,
guess,
or
suggestion

to
be
judged
by
a
panel
that
will
select
the
best
entries.
A
sweepstakes
calls
for
consumers
to
submit
their
names
for
a
drawing.
A
game
presents
consumers
with
something

bingo
numbers,
missing
letters

every
time
they
buy,
which
may
or
may
not
help
them
win
a
prize.
Trade-Oriented
Trade-Oriented
Trade-Oriented
Trade-Oriented
Promotion:
Promotion:
Promotion:
Promotion:
Manufacturers
direct
more
sales
promotion
dollars
toward
retailers
and
wholesalers
(78
percent)
than
to
consumers
(22
percent).
Trade
promotion
can
persuade
resellers
to
carry
a
brand,
give
it
shelf
space,
promote
it
in
advertising,
and
push
it
to
consumers.
Shelf
space
is
so
scarce
these
days
that
manufacturers
often
have
to
offer
discounts,
allowances,
buy-back
guarantees,
or
free
goods
to
retailers
and
wholesalers
to
get
products
on
the
shelf
and,
once
there,
to
stay
on
it.
Manufacturers
use
several
trade
promotion
tools.
Many
of
the
tools
used
for
consumer
promotions

contests,
premiums,
displays

can
also
be
used
as
trade
promotions.
Discounts
A
discount
discount
discount
discount
is
a
straight
reduction
in
price
on
purchases
during
a
stated
period
of
time.
This
is
also
called
price-off
,
off-invoice
,
or
off-list
.
The
discount
could
be
based
on
the
volume
of
the
product
ordered.
Allowances
An
allowance
allowance
allowance
allowance
is
promotional
money
paid
by
manufacturers
to
retailers
in
return
for
an
agreement
to
feature
the
manufacturer

s
products
in
some
way.
An
advertising
allowance
compensates
retailers
for
advertising
the
product.
A
display
allowance
compensates
them
for
using
special
displays.
Conventions
and
Trade
Shows
Many
companies
and
trade
associations
organize
conventions
and
trade
shows
to
promote
their
products.
Firms
selling
to
the
industry
show
their
products
at
the
trade
trade
trade
trade
show
show
show
show
.
A
trade
trade
trade
trade
show
show
show
show
is
an
event
at
which
many
companies
set
up
elaborate
exhibits
to
show
their
products,
give
away
samples,
distribute
product
literature,
and
troll
for
new
business
contacts.
Trade
shows
are
major
vehicles
for
manufacturers
to
show
off
their
product
lines
to
wholesalers
and
retailers.
More
than
4,300
trade
shows
take
place
every
year,
drawing
as
many
as
85
million
people.
Vendors
receive
many
benefits,
such
as
opportunities
to
find
new
sales
leads,
contact
customers,
introduce
new
products,
meet
new
customers,
sell
more
to
present
customers,
and
educate
customers
with
publications
and
audiovisual
materials.
Trade
shows
also
help
companies
reach
many
prospects
not
reached
through
their
sales
forces.
About
90
percent
of
a
trade
show

s
visitors
see
a
company

s
salespeople
for
the
first
time
at
the
show.
Business
marketers
may
spend
as
much
as
35
percent
of
their
annual
promotion
budgets
on
trade
shows.
Other
Programs
Manufacturers
may
offer
free
free
free
free
goods
goods
goods
goods
,
which
are
extra
cases
of
merchandise,
to
resellers
who
buy
a
certain
quantity
or
who
feature
a
certain
flavor
or
size.
They
may
offer
push
push
push
push
money
money
money
money

cash
or
gifts
to
dealers
or
their
sales
forces
to

push

the
manufacturer

s
goods.
Most
retailers
also
charge
manufacturers
slotting
slotting
slotting
slotting
fees
fees
fees
fees

payments
demanded
by
retailers
before
they
will
accept
new
products
and
find

slots

for
them
on
the
shelves.
Manufacturers
may
also
give
retailers
free
specialty
specialty
specialty
specialty
advertising
advertising
advertising
advertising
items
items
items
items
that
carry
the
company

s
name,
such
as
pens,
pencils,
calendars,
paperweights,
matchbooks,
memo
pads,
and
yardsticks.
For
more
expensive
and
highly
complex
products,
manufacturers
often
provide
specialized
specialized
specialized
specialized
training
training
training
training
for
retail
salespeople.
This
background
helps
salespeople
explain
features,
competitive
advantages,
and
other
information
to
consumers.
Training
can
be
provided
in
several
ways:
A
manufacturer

s
sales
representative
can
conduct
training
sessions
during
regular
sales
calls,
or
the
firm
can
distribute
sales
literature
and
videocassettes.
Sales
Sales
Sales
Sales
Force
Force
Force
Force
Promotion:
Promotion:
Promotion:
Promotion:
Sales
force
promotion
is
directed
at
the
company

s
own
sales
force
(oftentimes
the
manufacturer

s
sales
force)

rather
than
a
business
customer

s
sales
force
which
is
in
the
distribution
channel,
such
as
a
retailer

s
sales
force.
Contests,
for
example,
could
be
used
to
urge
the
sales
force
to
increase
their
efforts,
with
prizes
going
to
the
top
performers.
A
sales
sales
sales
sales
contest
contest
contest
contest
is
a
contest
for
salespeople
to
motivate
them
to
increase
their
sales
performance
over
a
given
period.
Sales
contests
motivate
and
recognize
good
company
performers,
who
may
receive
trips,
cash
prizes,
or
other
gifts.
Sales
contests
work
best
when
they
are
tied
to
measurable
and
achievable
sales
objectives.
Other
incentives
could
also
be
provided
to
encourage
the
sales
force
to
increase
new
accounts
in
addition
to
boosting
sales.
Personal
Personal
Personal
Personal
Selling:
Selling:
Selling:
Selling:
Personal
Personal
Personal
Personal
selling
selling
selling
selling
is
promotional
presentation
by
the
firm

s
sales
force
conducted
on
a
person-to-person
basis
with
the
buyer
for
the
purpose
of
making
sales
and
building
customer
relationships.
Personal
selling
is
the
oldest
form
of
promotion.
This
direct
form
of
promotion
may
be
conducted
face-to-face,
over
the
telephone,
through
videoconferencing,
or
through
interactive
computer
links
between
the
buyer
and
the
seller.
This
direct
contact
with
the
customer
gives
the
salesperson
the
opportunity
to
be
flexible
and
modify
the
sales
message
to
coincide
with
the
customer

s
needs.
The
salesperson
can
get
immediate
feedback
from
the
customer.
This
form
of
promotion
has
a
high
cost
per
contact
with
the
customer.
The
average
sales
call
costs
about
$300.
It
is
difficult
to
ensure
consistency
of
message
when
it
is
delivered
by
many
different
company
representatives.
The
credibility
of
salespeople
often
depends
on
the
quality
of
their
company

s
image,
which
has
been
created
by
other
promotion
strategies.
About
14
million
people
in
the
U.S.
are
employed
in
personal
selling.
Today,
most
salespeople
are
well-educated,
well-trained
professionals
who
work
to
build
and
maintain
long-term
customer
relationships
by
listening
to
their
customers,
assessing
customer
needs,
and
organizing
the
company

s
efforts
to
solve
customer
problems.
The
term
salesperson
covers
a
wide
range
of
positions.
At
one
extreme,
a
salesperson
might
be
largely
an
order
taker
,
such
as
a
department
store
salesperson
standing
behind
a
counter.
At
the
other
extreme
are
order
getters
,
whose
positions
demand
the
creative
selling
of
products
ranging
from
appliances,
industrial
equipment,
and
airplanes
to
insurance,
advertising,
and
information
technology
services.
The
The
The
The
Role
Role
Role
Role
of
of
of
of
Personal
Personal
Personal
Personal
Selling:
Selling:
Selling:
Selling:
Generally,
a
personal
sales
effort
is
more
important
when
a
firm
engages
in
a
push
strategy
,
in
which
the
goal
is
to
push
the
product
through
the
distribution
channel
so
that
it
is
available
to
consumers.
Personal
selling
also
is
likely
to
be
crucial
in
B2B
contexts
when
direct
interaction
with
upper-level
management
is
required
to
secure
an
important
sale

and
often
when
intense
price
negotiations
occur
before
the
sale
is
made.
In
addition,
inexperienced
buyers
may
need
the
hands-on
assistance
that
a
professional
salesperson
can
provide.
Firms
selling
products
that
consumers
buy
infrequently,
such
as
computers,
lawn
mowers,
and
college
educations,
often
rely
heavily
on
personal
selling,
as
do
firms
selling
complex
or
very
expensive
products
that
need
a
salesperson
to
explain,
justify,
and
sell
them.
Personal
selling,
however,
has
some
disadvantages
that
limit
the
role
played
by
personal
selling
in
the
promotion
mix.
First,
when
the
dollar
amount
of
individual
purchases
is
low,
it
isn

t
economically
feasible
to
use
personal
selling.
The
cost
per
contact
with
a
customer
is
high
compared
to
other
forms
of
communication,
such
as
advertising.
Salespeople
can
also
only
make
a
limited
number
of
sales
calls
a
day.
Reliance
on
personal
selling
is
effective
only
when
the
success
ratio
is
at
its
highest.
Because
the
cost
of
utilizing
salespeople
is
high,
telemarketing
is
growing
in
popularity.
The
types
of
salespeople
and
their
functions
vary
considerably.
The
person
who
processes
a
computer
purchase
over
the
phone
is
an
order
order
order
order
taker
taker
taker
taker
,
a
salesperson
whose
primary
function
is
to
facilitate
transactions
that
the
customer
initiates.
Order
takers
include
both
inside
and
outside
salespeople.
Most
retail
salespeople
are
inside
order
takers,
but
often
wholesalers,
dealers,
and
distributors
employ
salespeople
to
wait
on
customers.
In
contrast,
a
computer
technician
is
a
technical
technical
technical
technical
specialist
specialist
specialist
specialist
,
a
sales
support
person
with
a
high
level
of
technical
expertise
who
assists
in
product
demonstrations,
recommendations
for
complex
equipment,
and
setup
of
machinery.
The
technical
specialist

s
job
is
to
provide
sales
support
rather
than
actually
closing
the
sale.
The
technical
specialist
promotes
the
firm
and
tries
to
stimulate
demand
for
a
product
to
make
it
easier
for
colleagues
to
actually
make
the
sale.
Sometimes
a
person
whose
job
is
to
lay
the
groundwork
is
known
as
a
missionary
missionary
missionary
missionary
salesperson
salesperson
salesperson
salesperson
.
This
is
a
salesperson
who
promotes
the
firm
and
tries
to
stimulate
demand
for
a
product,
but
does
not
actually
complete
a
sale.
Many
firms
find
that
the
selling
function
is
best
handled
by
team
team
team
team
selling
selling
selling
selling
,
using
teams
of
people
from
sales,
marketing,
engineering,
finance,
technical
support,
and
even
upper
management
to
service
large,
complex
accounts.
Finally,
the
person
who
actually
convinces
the
customer
to
buy
is
an
order
order
order
order
getter
getter
getter
getter
,
a
salesperson
who
works
creatively
to
develop
relationships
with
customers
or
to
generate
new
sales.
Approaches
Approaches
Approaches
Approaches
to
to
to
to
Personal
Personal
Personal
Personal
Selling:
Selling:
Selling:
Selling:
Personal
selling
is
one
of
the
oldest
forms
of
promotion,
but
its
image
has
been
tarnished
by
smooth-talking
pitchmen
who
have
sometimes
said
anything
to
make
a
sale.
In
more
recent
years,
personal
selling
has
begun
to
redeem
itself
as
a
profession
and
has
moved
from
a
transactional,
hard-sell
technique
to
a
relationship
marketing
approach.
Transactional
Marketing
The
hard
sell
is
a
high-pressure
process.
Hard-sell
tactics
are
a
form
of
transactional
transactional
transactional
transactional
selling
selling
selling
selling
,
a
form
of
personal
selling
that
focuses
on
making
an
immediate
sale
with
little
or
no
attempt
to
develop
a
relationship
with
the
customer.
As
customers,
the
hard
sell
makes
us
feel
manipulated
and
resentful.
This
technique
also
contributes
to
the
negative
image
many
of
us
have
of
obnoxious
salespeople.
Relationship
Marketing
Today

s
professional
salesperson
is
more
likely
to
practice
relationship
relationship
relationship
relationship
selling
selling
selling
selling
,
a
form
of
personal
selling
in
which
the
salesperson
seeks
to
develop
a
mutually
satisfying
relationship
with
the
consumer.
Relationship
selling
involves
winning
,
keeping
,
and
developing
customers.
Winning
a
customer
means
converting
an
interested
prospect
into
someone
who
is
convinced
that
the
product
holds
value
for
him
or
her.
Keeping
a
customer
means
ensuring
that
the
customer
gets
what
he
or
she
paid
for.
Developing
a
customer
means
satisfying
the
customer
so
that
he
or
she
will
be
counted
on
to
provide
future
business.
The
professional
salesperson
who
genuinely
adheres
to
the
principles
of
relationship
marketing
is
a
relationship
builder
and
a
customer
problem
solver.
The
The
The
The
Creative
Creative
Creative
Creative
Selling
Selling
Selling
Selling
Process:
Process:
Process:
Process:
Selling
is
seldom
boring.
Every
customer,
every
sales
call,
and
every
salesperson
are
unique.
Some
salespeople
are
successful
primarily
because
they
know
so
much
about
what
they
sell.
Others
are
successful
because
they
have
built
strong
relationships
with
customers
who
look
forward
to
their
visits.
Most
salespeople
understand
and
engage
in
a
series
of
activities
necessary
to
bring
about
a
transaction.
Complex
or
expensive
sales
require
careful
planning,
and
successful
selling
in
these
cases
is
more
likely
if
the
salesperson
undergoes
a
systematic
series
of
steps
known
as
the
creative
creative
creative
creative
selling
selling
selling
selling
process
process
process
process
.
These
steps
require
the
salesperson
to
seek
out
customers,
analyze
their
needs,
determine
how
product
attributes
provide
benefits,
and
then
decide
how
best
to
communicate
this
to
the
prospects.
The
steps
in
the
process
include
prospecting
,
qualifying
,
preapproach
,
approach
,
sales
presentation
,
demonstration
,
handling
objections
,
closing
,
and
follow-up
.
Prospecting
Prospecting
Prospecting
Prospecting
Prospecting
is
the
step
of
the
selling
process
that
includes
identifying
and
developing
a
list
of
potential
or
prospective
customers.
Prospects
or
sales
leads
can
come
from
existing
customer
lists,
telephone
directories,
or
commercially
available
databases.
Sometimes
companies
generate
sales
leads
through
their
advertising
or
sales
promotions
by
letting
customers
request
more
information.
One
way
to
generate
leads
is
through
cold
calling
,
when
the
salesperson
contacts
prospects
without
prior
introduction
or
arrangement.
Salespeople
also
rely
on
referrals
.
Current
clients
who
are
satisfied
with
their
purchase
often
give
referrals.
Qualifying
Salespeople
next
need
to
qualify
qualify
qualify
qualify
their
prospects
prospects
prospects
prospects
,
the
step
of
the
selling
process
that
determines
how

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