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Marketing communications
Personal Selling, Sales Promotion, Public
Relations, Publicity and Sponsoring
Tuija Marstio

Lohj...
Personal selling is an exchange of values
”Personal selling is the process of informing
customers and persuading them to p...
Advantages of Personal Selling
•
•
•
•

Two-way communication
Tailored messages
Minimised disturbances
Salesperson involve...
Disadvantages of Personal Selling
• Identical message cannot be repeated
• Conflicts between salespeople and sales
managem...
Tasks of a Salesperson
•
•
•
•
•

Communication
Sales
Relationship management
Teamwork
Database tasks

(Vuokko, 2003)
Stages of Selling
1.Mapping and seeking customers
2. Needs assessment
3. Preparation for the sales
situation
4. Sales nego...
Reflection: New qualities of a sales person

How has the role of a salesperson changed in
the era of digitalization?
What ...
Sales Promotion

(Vuokko, 2003)
Sales Promotion

Sales promotion: offering incentives to members of the
distribution chain, sales organisation and consume...
Objectives

1. To increase sales
2. To develop new sales leads

3. To gain trade acceptance from retailers
4. To move exce...
Promotions targeted at the
distribution chain

Sales Promotion Targets and Forms

Manufacturer
Promotional measures target...
Sales Promotion Measures
- Own Sales Organisation

1. Meetings, information and training events,
bulletins that provide in...
SP Methods - Members of the
Distribution Chain
1. Informing about e.g. products, upcoming campaigns,
company plans
2. Trai...
SP targeted at Consumers

1. Reductions, reimbursements for unsatisfied customers
2. Complementary gifts, bonus packages
3...
Reflection: If Sales Promotion Does Not Work

- In what kind of situations the sales
promotion does not work?
- What can b...
Free Ladas boost sales by 36 %

(Smith & De Zoek, 2011)
Examples of creative sales promotion
The Sunday Sport offered a free test kit that
helped readers to determine whether the...
Public Relations

= Means of creating goodwill value for a company
- Aiming to gain and maintain the understanding and
sup...
• PR is about creating images, not making
sales
• PR is a long-term activity, with long-term
pay-offs
PR Measures impacting Internal
Stakeholders

Seeking to make staff feel it is an essential part of the
company. Aiming for...
PR measures Impacting External
Stakeholders
Target groups include customers, suppliers,
subcontractors, funders, media, au...
The Body Shop requires all its franchise
operations to run projects to benefit their local
communities.

This gives a posi...
Maslow’s hierarchy of needs
The hierarchy of organisational needs by Pearson
Requirements

Typical PR activityOrganisational
need

Output

Money, mach...
Publicity

= Conscious effort to gain "free" time or space
in the media for positive news or other stories about the
compa...
Reputation management
- or can it be managed?
• Identity forms basis for reputation
• What ever you decide to do be prepar...
A company with good reputation

- Attracts emplyees
- Attracts investors
- Influence on decision making of the
buyers > a ...
CASE Southwest Airlines
- SA planned to move on free seating instead of the
fixed seats to be reserved in advance > negati...
Case Nestlé
• Nestle informed, that it will delete all
comments with a modified logo.
• Nestlé: ” Thank you for the lessons of
good co...
Reflection: How to calm down the
rage online ?
- Have an emergency plan for online-fuzz: who to
contact, how to decide on ...
Sponsoring

= Hiring and exploiting a certain person, group, event or
other activity, for defined marketing communication
...
Most Popular Areas of Sponsoring:
SPORTS (60%)
- Team sports, youth sports, sports events (ice-hockey 19%)
CULTURE (13%)
-...
Sponsoring and Brand Building

= Linking the brand commercially to the object of
sponsoring
- Aims for a long-term
effect
...
2.Offers an
experience

1. Mobilises the
organiser

6. Integrates the
brand into the link
between the event
and customer

...
1. Mobilising: Employees are proud to be connected to e.g. an
interesting event. Emotional advantages become increasingly ...
Sponsored area
Sponsoring company

Sponsoring
return

Support,
e.g. support
advertising

Media
coverage

Final target grou...
Kauppalehti 16.10.2008:
”Olvilla on toisenlaiset tavoitteet”
•
•
•
•

Hartwall: Jokerit
Koff: HIFK
Olvi: Tappara ja Kalpa
...
”Treading one's own path creates respect”
• Energy company St1 gained wide
appreciation when it began to
sponsor skiing af...
References:

• P. Aula & S. Mantere, 2005. Hyvä yritys – strateginen
maineenhallinta;
• D. Aaker & E. Joachimsthaler, 2000...
Personal selling, sales promotion, PR
Personal selling, sales promotion, PR
Personal selling, sales promotion, PR
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Personal selling, sales promotion, PR

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Lecture given on 6.2.2014 to bachelor studens as part of a course on Marketing Communications

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Personal selling, sales promotion, PR

  1. 1. Marketing communications Personal Selling, Sales Promotion, Public Relations, Publicity and Sponsoring Tuija Marstio Lohja www.laurea.fi 6.2.2014
  2. 2. Personal selling is an exchange of values ”Personal selling is the process of informing customers and persuading them to purchase products through personal communication in and exchange situation.” (Dibb et al. 1998) • It is not something you do to someone, it’s something you do for and with someone • Selling starts by selling your personality
  3. 3. Advantages of Personal Selling • • • • Two-way communication Tailored messages Minimised disturbances Salesperson involved in the decision-making process • Tool for gathering market research / customer data
  4. 4. Disadvantages of Personal Selling • Identical message cannot be repeated • Conflicts between salespeople and sales management • Expense • Poor coverage
  5. 5. Tasks of a Salesperson • • • • • Communication Sales Relationship management Teamwork Database tasks (Vuokko, 2003)
  6. 6. Stages of Selling 1.Mapping and seeking customers 2. Needs assessment 3. Preparation for the sales situation 4. Sales negotiation 5. Offer 6. Closing the sale 7. Follow-up
  7. 7. Reflection: New qualities of a sales person How has the role of a salesperson changed in the era of digitalization? What new qualities should he/she have?
  8. 8. Sales Promotion (Vuokko, 2003)
  9. 9. Sales Promotion Sales promotion: offering incentives to members of the distribution chain, sales organisation and consumers that increase the sale of products and services - Only succeeds if the additional advantage brings some value to the target group (Vuokko, 2003)
  10. 10. Objectives 1. To increase sales 2. To develop new sales leads 3. To gain trade acceptance from retailers 4. To move excessive stock
  11. 11. Promotions targeted at the distribution chain Sales Promotion Targets and Forms Manufacturer Promotional measures targeted at sales staff Sales staff Distribution channel members Retail promotion measures Consumer (Vuokko, 2003) Consumer promotions
  12. 12. Sales Promotion Measures - Own Sales Organisation 1. Meetings, information and training events, bulletins that provide information for sales staff 2. Sales support material 3. Sales competitions with an award (Vuokko, 2003)
  13. 13. SP Methods - Members of the Distribution Chain 1. Informing about e.g. products, upcoming campaigns, company plans 2. Training events, sales meetings, company visits 3. Industry fairs and exhibitions 4. Systems that facilitate the order process 5. Reductions 6. Support for product placement 7. Freebies, promotional gifts 8. Sales competitions, bonuses, incentives 9. Campaign support, joint marketing 10. Retail material: product leaflets, posters, stands (Blythe, 2006; Vuokko, 2003)
  14. 14. SP targeted at Consumers 1. Reductions, reimbursements for unsatisfied customers 2. Complementary gifts, bonus packages 3. Free samples, trial offers 4. Customer loyalty programmes 5. Extra equipment, additional advantages 6. Promotional gifts, promotional goods 7. Competitions, prize draws 8. Demonstrations, tastings; the organiser of the tasting being present increases efficiency 9. Fairs, exhibitions, presentations 10. In-store advertising; e.g. in-store TV, posters (Blythe, 2006; Vuokko, 2003)
  15. 15. Reflection: If Sales Promotion Does Not Work - In what kind of situations the sales promotion does not work? - What can be the pitfalls of sales promotion ?
  16. 16. Free Ladas boost sales by 36 % (Smith & De Zoek, 2011)
  17. 17. Examples of creative sales promotion The Sunday Sport offered a free test kit that helped readers to determine whether their mother-in-law were, in fact, aliens. The paper sold out within hours Opening of the Ramada Hotel in Manchester (Smith & De Zoek, 2011, Blythe, 2006)
  18. 18. Public Relations = Means of creating goodwill value for a company - Aiming to gain and maintain the understanding and support of the stakeholders that the organisation depends on or is interested in. (Blythe, 2006; Vuokko, 2003)
  19. 19. • PR is about creating images, not making sales • PR is a long-term activity, with long-term pay-offs
  20. 20. PR Measures impacting Internal Stakeholders Seeking to make staff feel it is an essential part of the company. Aiming for a feeling of togetherness, commitment to the company, work motivation, and staff awareness of organisational issues Means:  Open communication  Creating a feeling of ”you are important to us” (Vuokko, 2003)
  21. 21. PR measures Impacting External Stakeholders Target groups include customers, suppliers, subcontractors, funders, media, authorities, trade associations and the general public. The aim is to create a positive attitude towards the company. Means:  'Open house' events, openings  Arranging company visits for different stakeholders  Extranet e.g. with raw material distributors  Lobbying (Vuokko, 2003)
  22. 22. The Body Shop requires all its franchise operations to run projects to benefit their local communities. This gives a positive image of the company to the community.
  23. 23. Maslow’s hierarchy of needs
  24. 24. The hierarchy of organisational needs by Pearson Requirements Typical PR activityOrganisational need Output Money, machines, manpower, materials Staff programmes to attract the right people Survival Cash flow, profits, customers Publicity aimed at customers; events publishing the firm and its products Morale Employee job satisfaction Staff newsletters, morale boosting activities, staff parties etc. Acceptability Approval by the external stakeholders External PR, shareholder reports, lobbying, events for suppliers and customers, favourable press releases Leadership Havind a respected position in the company’s chosen field Corporate-image building exercises, customer-care activities, sponsorship of research in universties, publicity about new products etc. (Blythe, 2006)
  25. 25. Publicity = Conscious effort to gain "free" time or space in the media for positive news or other stories about the company - Uncontrollable: ultimately, the media decides what types of news it creates on the basis of a press event or press release - Large target group, general public - Important to also be able to handle negative publicity (Vuokko, 2003)
  26. 26. Reputation management - or can it be managed? • Identity forms basis for reputation • What ever you decide to do be prepared to discuss it in an interview. • Negative reputation can have a direct correlation to disappearing clients • At the same time transparency can be a very positive force for marketing and for building a good reputation (Aula & Mantere, 2005;Keskinen, Lipiäinen, 2013)
  27. 27. A company with good reputation - Attracts emplyees - Attracts investors - Influence on decision making of the buyers > a competitive edge - Stands out from the crowd (Aula & Mantere, 2005)
  28. 28. CASE Southwest Airlines - SA planned to move on free seating instead of the fixed seats to be reserved in advance > negative feedback through the blog > General Director Gary Kelly replied via blog to inform that the plan was abandoned
  29. 29. Case Nestlé
  30. 30. • Nestle informed, that it will delete all comments with a modified logo. • Nestlé: ” Thank you for the lessons of good conduct….But this is our site and we define the rules.” • More than 100 000 FB-fans followed the discussion in real time. Apart from destroying the rain forests the company was now being accused also for censorzhip
  31. 31. Reflection: How to calm down the rage online ? - Have an emergency plan for online-fuzz: who to contact, how to decide on actions, who replies, etc. - Precaution: keep the loyal customers active online - Clarify the situation: what has happened? - Apologize if there is a reason - React asap - Respond always in a constructive way 33
  32. 32. Sponsoring = Hiring and exploiting a certain person, group, event or other activity, for defined marketing communication purposes - The main aim is to achieve media publicity and visibility as well as to support product development - ”Companies want to show they are good corporate citizens” - Important to define the purpose of sponsoring and the expected return from the sponsor (Vuokko, 2003)
  33. 33. Most Popular Areas of Sponsoring: SPORTS (60%) - Team sports, youth sports, sports events (ice-hockey 19%) CULTURE (13%) - Art events, art institutions, entertainment events, individual artist OTHER (27%) - Society - Education - Social welfare - Environment (e.g. Baltic Sea) - Television, radio, film - Science (KL 29.9.11, Sponsorointibarometri 2010)
  34. 34. Sponsoring and Brand Building = Linking the brand commercially to the object of sponsoring - Aims for a long-term effect (Aaker, 2000)
  35. 35. 2.Offers an experience 1. Mobilises the organiser 6. Integrates the brand into the link between the event and customer 5. Develops brand associations BUILDING BRANDS THROUGH SPONSORING 3. Introduces new products or technology 4. Creates brand visibility
  36. 36. 1. Mobilising: Employees are proud to be connected to e.g. an interesting event. Emotional advantages become increasingly strong when employees take part in events. 2. Offering an experience to customers: A unique way to reward key customers – receive box seats for the Opera Festival. Annual experience: belonging to a ”brand family” - enhancing customer loyalty. Membership in exclusive customer group. 3. Introducing new products: Aiming for media publicity through sponsoring. E.g. presenting a new product at an event. 4. Creating visibility: Measuring: Brand recognition before and after the event, number of times sponsoring was mentioned, how many people see 5. Developing associations: Brand – Sponsor – Desired association (triangle) 6. Link between event and customer: - impacts a sense of identification: The object of sponsoring is an important part of life and means for expressing one's identity. The public enjoys the event, and this experience is transferred to the brand.
  37. 37. Sponsored area Sponsoring company Sponsoring return Support, e.g. support advertising Media coverage Final target group (Vuokko, 2003) Sponsoring as a means of communication
  38. 38. Kauppalehti 16.10.2008: ”Olvilla on toisenlaiset tavoitteet” • • • • Hartwall: Jokerit Koff: HIFK Olvi: Tappara ja Kalpa Olli Heikkilä, Brand and Communications Director at Olvi: ”We've tried take care of what's most important. Finding workforce cannot be taken for granted even in our case…” → 80% of sponsorship funds to Ylä-Savo region
  39. 39. ”Treading one's own path creates respect” • Energy company St1 gained wide appreciation when it began to sponsor skiing after the doping scandal of 2001 • - ”Skiing gives us a foothold in the whole of Finland, close to our local branches.” (Ekonomi 2/2009)
  40. 40. References: • P. Aula & S. Mantere, 2005. Hyvä yritys – strateginen maineenhallinta; • D. Aaker & E. Joachimsthaler, 2000: Brändien johtaminen; • J. Blythe,2006: Essentials of Marketing Communications; • T. Keskinen & J. Lipiäinen, 2013: Asiakkaan matkassa; • T. Rope, 2005: Suuri Markkinointikirja; • P. Vuokko, 2003: Markkinointiviestintä – merkitys, vaikutus, keinot; • PR Smith 6 De Zook, 2011.Marketing Communications 43

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