Contents

MKT4104

Integrated Marketing Communication

Class test 2, 10 marks, covering the three promotional tools the professor taught after advertising: sales promotion, personal selling, and public relations and publicity. Built from the lecture notes and checked against Belch and Belch, Advertising and Promotion. Terms are kept exactly as they were taught, with a hover definition where they are hard.

Class test 2 · 10 marks Sales promotion, personal selling, public relations 13 diagrams ≈ 35 min read

Syllabus map

Everything on the class test, and where it is answered

Three topics, taught to the same template the professor used for advertising. Open a topic to see what sits under it; every line is a link to the section that covers it.

Sales Promotion

Where the syllabus restarts after the midterm

The midterm stopped at advertising. The class test picks up the three tools that come after it in the promotional mix. All three are taught to the same template the professor used for advertising, so if you know the shape you already know what the questions will be: what the tool is, what makes it unique, what it is for, what its tools are, what decisions you take, and how you evaluate it.

AdvertisingmidtermSales promotionclass testPersonal sellingclass testPublic relationsclass testDirect marketingnot lecturedThe promotional mix
The three tools on this test are the ones that follow advertising in the mix.

What sales promotion is

Sales promotionA short-term incentive to encourage immediate purchase or sales of a product or service.A direct inducement offering extra value, to the sales force, the distributors or the consumer, aimed at an immediate sale. is a short-term incentive to encourage immediate purchase or sales of a product or service. Two words in that sentence carry the whole idea. Incentive means something extra is being handed over on top of the product itself, so the offer appeals to the pocketbook rather than to the mind the way advertising does. Short-term means the offer has an end date, and the end date is what makes people move now instead of later.

The book puts it the same way at more length: a direct inducement offering extra value or incentive for the product, to the sales force, the distributors or the ultimate consumer, with the primary objective of creating an immediate sale. It is best thought of as an acceleration toolA tool that speeds up the selling process rather than creating new demand.Sales promotion mostly makes a purchase happen sooner and larger, not out of nothing.. It does not usually create a customer who was never going to buy; it speeds up and enlarges a purchase that was already possible.

Platform
The ordinary forms the incentive takes in the market: discount, refund, commissionPay calculated as a share of what the salesperson sells.Supplies the incentive; the salary alongside it supplies the security., coupon, cashback, membership.
Uniqueness

Four things sales promotion does that no other tool does as well.

Immediate purchase invitationIt asks for the sale now, not eventually. The deadline is the message.
AttentionAn extra on offer cuts through clutterThe sheer volume of competing commercial messages an audience is exposed to.It weakens advertising, which is part of why budgets moved to promotion. that a plain claim cannot.
MeasurableCoupons come back, codes are redeemed, stock moves. You can count the response, which advertising struggles to do.
Incentive and rewardSomething of real value is given, a free tiffin box with the tea for instance, but it has to integrate with the product. An unrelated gift buys a transaction, not a customer.

What it is for

Every sales promotion question starts with the objective, because the objective is what decides which tool you pick and what counts as success afterwards. Seven are taught.

Objectives
1Clear the stockVacate stock that is ageing, seasonal or about to be replaced.
2TrialGet a non-user to try the brand once, usually with a sample or an introductory price.
3Repeat purchaseBring the same buyer back, usually through membership or a frequency programmeA scheme that rewards the customer for repeated purchase over time.The loyalty tool of the set. Airline miles are the model..
4Increase sales or consumptionMake the existing user buy more, or use more per occasion.
5Increase market shareTake volume from a competitor rather than grow the category.
6Enhance the IMC processGive the advertising something concrete to announce, so the two tools carry each other.
7Stock or carry a new productAimed at the trade: get the retailer to take the new line onto the shelf at all.

Why sales promotion grew

Advertising used to take nearly half of the promotional budget. Sales promotion now takes most of it. Nine reasons are given, and they divide naturally into pressure from the trade, pressure from the consumer, and pressure on the marketer.

Nine reasons
Growing power of retailersScanners and in-store systems gave retailers better sales data than the manufacturer had, so the power to demand promotions moved to them.
Declining brand loyaltyBuyers switch more readily, so a deal can move them and the absence of one can lose them.
Increased promotional sensitivityThe tendency of consumers to respond to, and then wait for, promotional offers.Once buyers learn to expect a deal, the deal stops being optional.Consumers have learned to wait for the offer, which makes the offer necessary.
Brand proliferationThe multiplication of similar brands in a category.One of the nine reasons sales promotion grew: with too many near-identical choices, the incentive becomes the tiebreaker.Too many near-identical brands on the shelf, so an incentive becomes the tiebreaker.
Fragmentation of consumer marketsThe mass audience broke into small segments, so mass advertising became less efficient than a targeted offer.
Short-term focus of marketersManagers are judged quarterly, and sales promotion is the one tool that moves a quarterly number.
Increased accountabilityBudgets must be justified, and a redemption count is easier to show than a shift in attitude.
CompetitionWhen a rival promotes, matching the offer is usually the only defence available quickly.
ClutterSo many messages compete that an extra value offer is one of the few things that still gets noticed.

Advantages and disadvantages

AdvantagesDisadvantages
Increases sales, quickly and visiblyDestruction of image: constant discounting teaches the market that the brand is a cheap brand
Affects consumer behaviour: it can buy a trial, a switch or a repeat that advertising alone would not producePrice: the incentive is paid out of margin, so volume can rise while profit falls
Allows price discrimination: the coupon user pays less and the indifferent buyer pays full price, from the same shelfShort-term orientation: it buys this quarter at the expense of brand building
Conflict of interest: what suits the sales target this month can damage the brand and annoy the trade
Watch the trap

Sales promotion and advertising are not rivals in an exam answer. Advertising builds the reason to buy over time, sales promotion converts that reason into a purchase now. An answer that praises one by attacking the other has missed the point of integration.

The tools

The tools are divided by who the incentive is aimed at. Consumer-oriented tools go to the end buyer and form part of a pull strategyPromotion aimed at the end consumer, so that demand pulls the product through the channel.Consumer-oriented sales promotion is part of a pull strategy.: they create demand so the customer asks the retailer for the brand. Trade-oriented tools go to wholesalers and retailers and form part of a push strategyPromotion aimed at the channel, so that wholesalers and retailers push the product to the customer.Trade-oriented sales promotion is part of a push strategy.: they persuade the channel to stock the brand and to work at selling it. Most real programmes run both at once, because getting the product onto the shelf and getting the customer to the shelf are two different problems.

Sales promotion toolsConsumer-oriented(pull)SampleCouponPremiumContests andsweepstakesRefunds and rebatesBonus packPrice-off dealFrequency programEvent marketingTrade-oriented(push)Contests anddealer incentivesTrade allowancePoint-of-purchasedisplaysTraining programTrade showsConsumer tools pull the customer into the shop; trade tools push theproduct onto the shelf. Most programmes run both at once.
Sales promotion tools split by who the incentive is aimed at.
Consumer-oriented
SampleA free quantity of the product, used to buy a first trial.
CouponA certificate giving a stated saving at purchase. The oldest and most widely used tool.
PremiumAn article offered free or at low cost as an incentive to buy the product.The tiffin box with the tea. It only works if it fits the product.An extra article given free or cheaply with the purchase.
Contests and sweepstakesA promotion whose winner is decided purely by chance.A contest needs skill from the entrant; a sweepstake does not.A contest needs skill; a sweepstake is pure chance. Both buy involvement, not just a sale.
Refunds and rebatesMoney back after the purchase, on proof of buying.
Bonus packExtra quantity of the product offered at the regular price.The saving sits in the pack rather than on the price tag, so the price image is protected.Extra quantity at the same price, so the saving is in the pack rather than on the price tag.
Price-off dealA temporary reduction in the price, marked on the package.The bluntest consumer tool, and the quickest to damage the price image.A straight temporary reduction marked on the pack.
Frequency programRewards that accumulate with repeated purchase, which is why it is the loyalty tool.
Event marketingBuilding or sponsoring an occasion at which the brand meets the customer directly.Sits between sales promotion and public relations.The brand builds or sponsors an occasion where the customer meets it directly.
Trade-oriented
Contests and dealer incentivesTargets and prizes for the retailer or the retail staff.
Trade allowanceA discount or financial incentive given to the retailer for stocking and promoting the product.The main trade-oriented tool, and the main cost in a push strategy.A financial discount to the retailer for stocking and promoting the product.
Point-of-purchase displaysMaterial supplied to the shop to win space and attention where the choice is actually made.Often abbreviated to POP.Material supplied to win space and attention inside the shop.
Training programThe manufacturer teaches the retailer's staff to sell the product properly.
Trade showsAn industry gathering where the channel is sold to directly.

Major decisions, and developing the programme

Four decisions run the whole activity. The third one opens out into five programme decisions of its own, which is where most of the marks sit.

1 Select the objectiveClear stock, win a trial, bring thecustomer back, lift share.2 Select the sales promotion toolsConsumer tools, trade tools or both,chosen to fit the objective.3 Develop and implement the programmeThe five programme decisions,drawn below.4 Evaluate the programmeSales effect, repeat purchase,loyalty, market share.
The four major decisions in a sales promotion.
Decide the size of the incentive1Set the conditions for participation2Decide how to promote and distribute it3Decide the length of the programme4Evaluate the programme5Sales effectRepeat purchaseLoyaltyMarket share
Developing the sales promotion programme, and what the last step measures.
The five programme decisions
1Size of the incentiveThere is a minimum below which nothing happens and a point above which you are simply giving away margin.
2Conditions for participationWho may take the offer, with what proof, and with what limits. This is what stops one buyer stripping the promotion.
3How to promote and distribute itThe offer has to reach people: on the pack, in the press, in store, by app. An offer nobody hears about is only a cost.
4Length of the programmeToo short and the regular buyer misses it; too long and it stops being an event and becomes the normal price.
5EvaluationRead against sales effectThe change in sales attributable to a campaign.The hardest effect to prove, because everything else is running at the same time., repeat purchase, loyalty and market share, not against redemption count alone.
Recall in one line each
  • Define sales promotion in one sentence, with the words short-term and incentive in it
  • Four points of uniqueness
  • Seven objectives
  • Nine reasons for growth
  • Three advantages and four disadvantages
  • Nine consumer tools and five trade tools, and which is pull and which is push
  • Four major decisions, then the five programme decisions

Personal Selling

The only tool where the customer can answer back

What personal selling is

Personal sellingTwo-way personal communication between a salesperson and an individual customer.The only tool in the mix where the audience answers back during the message. is the part of the promotional mix in which the organisation contacts the customer directly. Stated properly, it is two-way personal communication between a salesperson and an individual customer. Every other tool in the mix talks at an audience. This one talks to a person, and that person talks back in the same conversation, which is the source of all its advantages and all its cost.

Two-way communicationPersonal confrontationCultivation(long-lasting relationship)Response andpersonal obligationPersonalselling
The four qualities that make personal selling different from every other tool.
Uniqueness

Four qualities, and they follow from each other.

Two-way communicationThe message is not fixed in advance. The salesperson hears the answer and changes the next sentence, so the pitch is adjusted to the one customer in front of them.
Personal confrontationTwo people meeting face to face, each having to read and answer the other immediately.One of the four unique qualities of personal selling.Two people are face to face. Each has to read the other and respond immediately, which no advertisement ever has to do.
CultivationThe growth of a relationship over repeated contact, from a single sale to a long-lasting partnership.It is why personal selling is expensive per contact but cheap per relationship.Because the contact repeats, the relationship can be grown over years. Selling ranges from a single transaction all the way to a long-lasting relationship.
Response and personal obligationHaving been listened to, the customer feels some obligation to respond, even if only to listen politely. That obligation is what gets the appointment and sometimes the order.

Attitudes towards personal selling

A standard question asks what people think of selling as a career, and why those views are wrong. Learn both columns, because the marks are in the contrast.

The negative viewThe positive viewTravel away from familyIrregular hoursLoses glamourA waste of educationLittle respectAlways under pressureNeeds false promises and trickerySelling is essentialSelling is productiveSelling is something to be proud ofThe professional answer is the one on the right:nothing reaches the customer until someone sells it.
What people think of selling as a job, and what the trade says back.
The negative view

What the job is accused of being.

Travel away from familyThe territory has to be covered, so the salesperson is on the road.
IrregularityNo fixed hours; the customer's convenience sets the day.
Loses glamourSeen as a lesser job than marketing or brand management.
Waste of educationThe belief that a graduate should not be knocking on doors.
RespectThought of as a low-status job in social terms.
Always under pressureThe target is monthly and visible, and nothing hides a miss.
Need to false promise and trickeryThe suspicion that you cannot sell honestly.
The positive view

What the trade answers.

Selling is essentialNothing a company makes becomes revenue until someone sells it.
Selling is productiveIt creates the demand and the cash the rest of the firm runs on.
Selling is a proud professionIt is a skilled job done well by people who chose it, not a fallback.

How selling offers attractive career opportunities

Eight reasons, and they are the direct answer to the negative column above.

Eight opportunities
1Opportunity for advancementSales results are visible and countable, so promotion comes faster than in roles where contribution is hard to prove.
2Personal satisfactionYou see the result of your own work in a signed order, the same week.
3Job securityA person who can sell is the last person a firm lets go, in any economy.
4EarningsCommission means the ceiling is set by performance rather than by a grade.
5RespectEarned from customers who depend on the salesperson's advice, whatever the social stereotype says.
6IndependenceThe salesperson largely runs their own day and their own territory.
7VarietyDifferent customers, problems and places, instead of one desk.
8Interesting workThe work is solving a different person's problem each time.

The personal selling process

Seven steps, in order, from not knowing who the customer is to keeping them. The order matters: each step is wasted if the one before it was skipped.

Prospecting and qualifying1Find who could buy, check they canPre-approach2Learn about them before the callApproach3Meet, greet, and open the conversationPresentation and demonstration4Show the product against the needHandling objections5Treat it as a request for informationClosing6Read the signal, ask for the orderFollow-up7Deliver, check, earn the next order
The seven steps of the personal selling process.
1 Prospecting and qualifying
Identifying who could buy, and then checking that they actually can. ProspectingThe search for people or firms that could become customers.It finds names. Qualifying is the separate step that throws the useless ones away. finds names; qualifyingChecking that a prospect has the need, the money and the authority to buy.Skipping it is how salespeople waste a week on someone who was never going to buy. throws away the names that have no need, no money or no authority to decide. The four steps inside it are drawn below.
2 Pre-approach
The salesperson learns as much as possible about the prospect before making the sales call: what they buy now, from whom, what their problem is, who decides. The call is planned here, not improvised at the door.
3 Approach
How to meet and greet, and the opening line. A few seconds that decide whether the rest of the call happens at all.
4 Presentation and demonstration
Telling the product story and showing it work, framed as the answer to the need that qualifying identified. Showing beats telling.
5 Handling objections
Take the objection as an opportunity to provide more information, and keep a positive approach. An objection means the prospect is engaged enough to argue; silence is the bad sign.
6 Closing
Asking for the order, once the buyer gives a closing signalSomething the buyer says or does that shows they are ready to order.Often a question about delivery, price or terms rather than a yes.. The signal may be a question about delivery, price or terms rather than a yes.
7 Follow-up
Checking delivery, installation and satisfaction after the sale. This is where repeat business and referrals come from, and it is the step most often skipped.
Formulate theprospect definitionSearch outpotential accountsQualify and determineprobable requirementsRelate company productsto those requirements
The four steps inside prospecting and qualifying.
Steps in prospecting
1Formulating the prospect definitionDecide what a good prospect looks like before you start looking, otherwise you chase everybody.
2Searching out potential accountsWork the sources: directories, referrals, enquiries, existing customers, trade shows.
3Qualifying the prospect and determining probable requirementsConfirm they can buy, and work out roughly what they would need.
4Relating company products to the prospect's requirementsMatch what you sell to what they need, and drop the prospect if nothing matches.

Sales force management

Six steps. The first two build the sales force, the next two equip and pay it, and the last two keep it working.

1 Designing sales forcestrategy and structureTerritorial, product,customer or complex.2 Recruiting and selectingsalespeopleAgainst the professional andsuccessful characteristics.3 Training salespeopleOn the job and off the job.4 Compensating salespeopleSalary plus commission.5 Supervising salespeopleDirect the effort, keepmotivation up.6 Evaluating salespeopleSet the standard, measureagainst it, act on the gap.
The six steps of sales force management.

1 Designing sales force strategy and structure

The decision is how to divide the selling work: by territory, by product, by customer, or by some combination. The right answer depends on the organisation, its product line and its customers, and the note in the lecture is explicit about that: select an appropriate structure depending on the organisation. The same choice shows up under other names, such as a territory sales force, a customer manager or a brand manager.

Sales force structureTerritorialOne salesperson,one exclusive territorySells the company'sfull product lineProductSells only a portion ofthe company's productsFor wide or technicalproduct linesCustomerSells only to certaincustomers or industriesAlso called thecustomer managerstructureComplexA combination of anyof the other threeFor large firms sellingmany products tomany markets
The four sales force structures, chosen to suit the organisation.
The four structures
TerritorialA sales force in which each person has one exclusive area and sells the full product line in it.Simplest and cheapest, and it fixes responsibility on one person.Each salesperson gets an exclusive territory and sells the company's full product line in it. Simplest, cheapest, and it fixes responsibility on one person, but it needs the salesperson to know every product.
ProductThe sales force sells only a portion of the company's products or lines. Used when the line is wide or technical enough that nobody can know all of it.
CustomerThe sales force sells only to certain customers or industries. Used when different customer types buy in genuinely different ways.
ComplexA combination of any of the other types, for example territory by product. Used by large companies selling many products to many kinds of customer in many places.

2 Recruiting and selecting salespeople

Two sets of characteristics are taught, and they answer different questions. The professional characteristics are about attitude to the job, which is what you screen for at interview. The successful characteristics are about the person, which is what you assess and then develop.

Characteristics of a professional salesperson
  • Consciously chose the selling profession, rather than falling into it
  • Feels proud of being a salesperson
  • Maintains self-respect and independence
  • Knows there is no substitute for hard work
  • Believes that to sell is to serve
  • Is loyal to high earning, so performance is the measure
  • Possesses the basic ability to sell
Characteristics of asuccessful salespersonPhysicalSound healthVisual factors: hair,grooming, clothingNon-visual factors: voicequality, mannerism,coughing, sneezingPsychologicalConfidenceDeterminationSincerityOptimismEnthusiasmDependabilityImaginationInitiativeSocialInterpersonalcommunicationFriendlinessSocial graceConversational ability
The three sets of characteristics a successful salesperson is judged on.
Physical characteristics
Sound healthThe job is physically demanding, with travel and long days.
Visual factorsHair, grooming and clothing. The customer judges the company by them before a word is spoken.
Non-visual factorsVoice quality, mannerisms, and habits such as coughing and sneezing, which distract from the message.
Psychological characteristics
Confidence, determination, sincerity, optimism, enthusiasm, dependability, imagination and initiative. These are the qualities that survive rejection, which is the ordinary condition of the job.
Social characteristics
Interpersonal communication, friendliness, social grace and conversational ability. The ability to be comfortable with a stranger and make the stranger comfortable too.

3 to 6: training, compensating, supervising, evaluating

3 Training salespeople

Two forms, usually combined.

On the job trainingLearning to sell while selling, usually alongside an experienced salesperson.Realistic and cheap, but the mistakes are made on real customers.Learning while selling, usually alongside an experienced salesperson in a real territory. Cheap and realistic, but mistakes are made on real customers.
Off the job trainingClassroom and course training away from the territory.Safe and systematic, but it has to be transferred to the real call.Classroom and course work away from the territory: product knowledge, selling technique, company procedure. Safe and systematic, but it has to be transferred to the real call.
4 Compensating salespeople
Salary plus commission. The salary gives the security that stops good people leaving in a bad month and pays for the non-selling work, such as service and reporting. The commission supplies the incentive. The proportion between the two is the real decision: too much salary and effort drops, too much commission and the salesperson chases easy orders and ignores everything else.
5 Supervising salespeople
Directing the effort and keeping motivation up: how many calls, on whom, how the time is spent, and what support and recognition the salesperson gets. Supervision is how the plan survives contact with the territory.
6 Evaluating salespeople
Setting a standard, measuring performance against it, and acting on the gap. Quantitative measures cover sales results, such as orders, average order size and accounts, and sales effort, such as calls made on current and potential customers. Qualitative measures cover product knowledge, customer relations and appearance.

Evaluating the personal selling effort

Evaluating a salesperson is not the same as evaluating personal selling as part of the IMC programme. The second one is judged on what it contributed to the communication effort, and the book gives four criteria.

Four criteria
Provision of marketing intelligenceWhat the sales force fed back about competitor programmes, customer reactions and market trends. Nobody else in the company is in the market every day.
Follow-upContact after the sale to check delivery and satisfaction.The step most often skipped, and the one repeat business comes from. activitiesUse of brochures and correspondence with new and existing customers, and feedback on how well other promotional programmes landed.
Program implementationsHow many promotional programmes were actually put in place: displays used, cooperative advertising run and assessed.
Attainment of communications objectivesAccounts presented to, trial offers accepted, awareness and evaluation achieved.
Recall in one line each
  • Definition of personal selling, with two-way in it
  • Four points of uniqueness
  • Seven negatives and three positives about selling as a career
  • Eight career opportunities
  • Seven steps of the selling process, plus the four steps inside prospecting
  • Six steps of sales force management
  • Four sales force structures
  • Seven professional characteristics; physical, psychological and social sets
  • Four criteria for evaluating the personal selling effort

Public Relations and Publicity

Managing what everyone else says about you

What public relations is

Two definitions were given, and they answer two different questions. The first defines the public: any group who are directly or indirectly related to achieving the organisation's objectives. The second defines the function: building relationships with the company's various publicsAny group directly or indirectly related to achieving the organisation's objectives.Investors, media, regulators, neighbours and employees are all publics. by obtaining favourable publicityNews about a person, product or service appearing in the media, not directly paid for and with no identified sponsor.A subset of public relations, and the part the company controls least., building a good corporate image, and handling the rumours, stories and events that go against the company.

The book states it more formally as the management function which evaluates public attitudes, identifies the policies and procedures of an organisation with the public interest, and executes a programme of action to earn public understanding and acceptance. The useful point in all three versions is the same: the audience of public relations is wider than the customer. A bank, a regulator, a journalist and your own employees are all publics, and none of them is going to buy anything.

Uniqueness

Only two, but they are the whole case for the tool.

CredibilityThe message does not arrive labelled as an advertisement. Because it is not seen as paid for, the audience treats it as more objective and places more confidence in it.
Ability to catch buyer attentionNews gets read and passed on. People who skip advertisements will read a story, and tell someone else about it.

Types of public relations, and types of public

Two lists that are easy to confuse in an exam. The first is the set of relationships the PR function manages. The second is the set of groups those relationships are with.

Media relationsInvestor relationsGovernment relationsCommunity relationsInternal relationsMarketingcommunicationPublicrelations
The relationships the public relations function has to manage.
Types of public relations
  • Media relations
  • Investor relations
  • Government relations
  • Community relations
  • Internal relations
  • Marketing communication
Types of public
Financial publicInvestors and banks. They decide whether the company can raise money.
Media publicNewspapers, television and online outlets, who carry the company's news or its trouble.
Government publicRegulators, police and the forces. They decide what the company is allowed to do.
Citizen action publicConsumer groups, environmentalists and bodies such as BAPA, who can block or expose an activity.
Local publicNeighbourhood residents and community organisations around a plant or an outlet.
General publicThe wider population, whose overall image of the company affects everyone else's attitude to it.
Internal publicEmployees. They are an audience and a channel at the same time, since they talk to everyone outside.
Religious groupCommunities whose norms a campaign or a product can offend, and whose approval can carry it.
Watch the trap

Marketing communication appears inside the list of PR types. That is deliberate: public relationsThe management function that evaluates public attitudes and runs a programme of action to earn public understanding and acceptance.Its audience is every public, not only the customer. is not a substitute for the promotional mix, it is one of the relationships the organisation manages, and it supports the others.

Public relations tools

Twelve were listed. They are easier to hold if you group them by what the company is actually doing: giving something, telling something, or staging something.

Giving
SponsorshipPaying to support an event, team or cause and taking the public association with it.Buys goodwill and visibility at the same time.Paying for an event, a team or a cause and taking the association with it.
ScholarshipFunding education in the company's name, which buys goodwill over years rather than weeks.
Public facilitiesBuilding or maintaining something the community uses, such as a park or a bus shelter.
DonationDirect giving to a cause, usually at a visible moment.
Public service activitiesWork done for the community rather than for sale, for example a clean-up or a health camp.
Telling
NewsFinding or creating a story about the company and getting the media to run it.
SpeechesAn executive addressing a conference, a chamber or the press.
Written materialsAnnual reports, brochures, newsletters and articles.
Audiovisual materialsFilms, videos and presentations used with the public and the trade.
WebsiteThe company's own channel, where it controls the whole message.
Staging and signalling
Special eventsPress conferences, launches, anniversaries and open days, created so that there is something to report.
Corporate identity materialsThe visible signals that make a company recognisable: logo, stationery, signage, uniforms, vehicles.A public relations tool, because consistency is itself a message.Logos, stationery, signage, uniforms and vehicles, which make the company recognisable and consistent everywhere it appears.

Major decisions in public relations

1 Set the public relationsobjectiveCreate awareness, increasesales, promote the brand.2 Choose the PR messagesand vehiclesWhich story, through which tool:news, event, sponsorship, speech.3 Implement the PR planPlace the story and run the activity.4 Evaluate the PR resultsSurveys, audits, observation,read for sales andcommunication effect.
The four major decisions in public relations.
1 Setting public relations objectives
What the programme is for. Three are named: create awareness, increase sales, and promote the brand. The objective has to be set first because it decides both the message and the measure.
2 Choosing PR messages and vehicles
Which story to tell, and which tool carries it. If no story exists, the company creates one, which is what a special event is for.
3 Implementing the PR plan
Placing the story and running the activity. Timing is the hard part here, because the media decide when and whether to run it, not the company.
4 Evaluating PR results

Three methods, read for two kinds of effect.

SurveysAsk the public directly whether awareness, knowledge or attitude moved.
AuditCount and assess the coverage obtained: how much, where, and how favourable.
ObservationWatch what actually happened, in attendance, enquiries and behaviour.
Sales effectDid the activity move sales. The hardest to attribute, because so much else is running.
Communication effectThe change a campaign produced in awareness, knowledge or attitude.The fairer measure for public relations, since it is not asking for a sale.Did it move awareness, knowledge and attitude. The fairer measure for a tool that is not asking for a sale.

Publicity

The notes stop at the heading, so this section is taken from the book. Publicity is the generation of news about a person, product or service that appears in broadcast or print media. It is non-personal communication about an organisation, product, service or idea that is not directly paid for and not run under an identified sponsor, usually arriving as a news story, an editorial or an announcement.

Publicity is really a subset of public relations, which is why the two words get used as if they were the same thing. Three differences matter.

Public relationsPublicity
Time frameA concerted programme running over a long periodTypically a short-term, one-off piece
ControlDesigned by the firm or its agent, and usually controlled by itNot under the firm's control, and not paid for by it
ToneDesigned to be positive about the firmCan be positive or negative, and often starts from a source outside the firm
Why publicity is powerful
CredibilityIt is not perceived as sponsored by the company, so the audience trusts it more than an advertisement.
Media endorsementAppearing in a respected outlet reads as that outlet vouching for the claim.
News value and frequencyA genuine story gets repeated across outlets and locations at no cost to the company.
Word of mouthPeople pass on news. They do not pass on advertisements.
The two problems
TimingThe media decide when, or whether, the story runs. It can appear too early to be useful or too late to matter.
AccuracyA press releaseA written announcement sent to the media in the hope that they will run it.The main way publicity is sought, and the main place accuracy gets lost. is rewritten by someone else. Omissions and errors happen, and the published piece may not resemble what the company said.
The one-line answer

Public relations is the long programme the company runs to build its relationships. Publicity is the news that comes out of it, and the company controls the first far more than the second.

Recall in one line each
  • Define public relations twice: the public, and the function
  • Two points of uniqueness
  • Six types of public relations
  • Eight types of public, with an example of each
  • Twelve public relations tools
  • Four major decisions, and the three evaluation methods under the last one
  • Define publicity, and give three differences from public relations
  • Four reasons publicity is powerful, and its two problems

Last 20 minutes

The lists you must be able to write out from memory

Cover the answer, say the list out loud, then open it to check. Everything expands when printed.

Sales promotion in one sentence
  1. A short-term incentive
  2. to encourage immediate purchase or sales
  3. of a product or service
Sales promotion platform
  1. Discount
  2. Refund
  3. Commission
  4. Coupon
  5. Cashback
  6. Membership
Sales promotion: 4 points of uniqueness
  1. Immediate purchase invitation and engagement
  2. Attention
  3. Measurable
  4. Incentive and reward, integrated with the product
Sales promotion: 7 objectives
  1. Clear the stock
  2. Trial
  3. Repeat purchase
  4. Increase sales or consumption
  5. Increase market share
  6. Enhance the IMC process
  7. Stock or carry a new product
9 reasons sales promotion grew
  1. Growing power of retailers
  2. Declining brand loyalty
  3. Increased promotional sensitivity
  4. Brand proliferation
  5. Fragmentation of consumer markets
  6. Short-term focus of marketers
  7. Increased accountability
  8. Competition
  9. Clutter
Sales promotion: 3 advantages
  1. Increases sales
  2. Effect on consumer behaviour
  3. Price discriminationSelling the same product at different effective prices to different buyers.A coupon does this quietly: the price-sensitive buyer redeems it and everyone else pays full price.
Sales promotion: 4 disadvantages
  1. Destruction of image
  2. Price, paid out of margin
  3. Short-term orientation
  4. Conflict of interest
9 consumer-oriented tools
  1. Sample
  2. Coupon
  3. Premium
  4. Contests and sweepstakes
  5. Refunds and rebates
  6. Bonus pack
  7. Price-off deal
  8. Frequency program
  9. Event marketing
5 trade-oriented tools
  1. Contests and dealer incentives
  2. Trade allowance
  3. Point-of-purchase displays
  4. Training program
  5. Trade shows
Sales promotion: 4 major decisions
  1. Select the objective
  2. Select the tools
  3. Develop and implement the programme
  4. Evaluate
Developing the SP programme: 5 steps
  1. Decide the size of the incentive
  2. Set the conditions for participation
  3. Decide how to promote and distribute it
  4. Decide the length of the programme
  5. Evaluate the programme
Evaluating a sales promotion: 4 measures
  1. Sales effect
  2. Repeat purchase
  3. Loyalty
  4. Market share
Personal selling, defined
  1. Two-way personal communication
  2. between a salesperson and an individual customer
  3. the organisation contacting the customer directly
Personal selling: 4 points of uniqueness
  1. Two-way communication
  2. Personal confrontation
  3. Cultivation, a long-lasting relationship
  4. Response and personal obligation
Negative attitudes to selling (7)
  1. Travel away from family
  2. Irregularity
  3. Loses glamour
  4. Waste of education
  5. Little respect
  6. Always under pressure
  7. Needs false promises and trickery
Positive attitudes to selling (3)
  1. Selling is essential
  2. Selling is productive
  3. Selling is a proud profession
8 career opportunities in selling
  1. Opportunity for advancement
  2. Personal satisfaction
  3. Job security
  4. Earnings
  5. Respect
  6. Independence
  7. Variety
  8. Interesting work
Personal selling process: 7 steps
  1. Prospecting and qualifying
  2. Pre-approachLearning as much as possible about the prospect before making the sales call.The call is planned here, not improvised at the door.
  3. Approach
  4. Presentation and demonstration
  5. Handling objections
  6. Closing
  7. Follow-up
Steps in prospecting (4)
  1. Formulate the prospect definition
  2. Search out potential accounts
  3. Qualify the prospect and determine probable requirements
  4. Relate company products to those requirements
Sales force management: 6 steps
  1. Designing sales force strategy and structure
  2. Recruiting and selecting salespeople
  3. Training salespeople
  4. Compensating salespeople
  5. Supervising salespeople
  6. Evaluating salespeople
4 sales force structures
  1. Territorial: exclusive territory, full product line
  2. Product: only a portion of the product lines
  3. Customer: only certain customers or industries
  4. Complex: a combination of the others
Professional salesperson: 7 characteristics
  1. Consciously chose the selling profession
  2. Feels proud being a salesperson
  3. Maintains self-respect and independence
  4. Knows there is no substitute for hard work
  5. Believes to sell is to serve
  6. Loyal to high earning
  7. Possesses the basic ability to sell
Successful salesperson: 3 sets
  1. Physical: sound health, visual factors, non-visual factors
  2. Psychological: confidence, determination, sincerity, optimism, enthusiasm, dependability, imagination, initiative
  3. Social: interpersonal communication, friendly, social grace, conversational ability
Training and compensation
  1. On the job training
  2. Off the job training
  3. Salary plus commission
Evaluating personal selling: 4 criteria
  1. Provision of marketing intelligence
  2. Follow-up activities
  3. Program implementations
  4. Attainment of communications objectives
Public relations, defined twice
  1. The public: any group directly or indirectly related to achieving the organisational objective
  2. The function: building relationships with the company's publics by obtaining favourable publicity, building a good corporate image, and handling rumours, stories and events
Public relations: 2 points of uniqueness
  1. Credibility
  2. Ability to catch buyer attention
6 types of public relations
  1. Media
  2. Investor
  3. Government
  4. Community
  5. Internal
  6. Marketing communication
8 types of public
  1. Financial public: investors, banks
  2. Media public
  3. Government public: police, forces
  4. Citizen action public: BAPA, environmentalists
  5. Local public
  6. General public
  7. Internal public: employees
  8. Religious group
12 public relations tools
  1. Sponsorship
  2. Scholarship
  3. Public facilities
  4. Donation
  5. News
  6. Website
  7. Speeches
  8. Special events
  9. Written materials
  10. Corporate identity materials
  11. Audiovisual materials
  12. Public service activities
Public relations: 4 major decisions
  1. Setting the PR objective: awareness, sales, brand
  2. Choosing PR messages and vehicles
  3. Implementing the PR plan
  4. Evaluating PR results
Evaluating PR
  1. Methods: surveys, audit, observation
  2. Read for: sales effect and communication effect
Publicity, defined
  1. News about a person, product or service appearing in broadcast or print media
  2. Non-personal, not directly paid for, no identified sponsor
Publicity against public relations (3)
  1. Time: short-term piece against a long programme
  2. Control: not controlled or paid for by the firm
  3. Tone: can be negative, and often starts outside the firm
Why publicity is powerful (4)
  1. Credibility
  2. Perceived endorsement by the medium
  3. News value and frequency of exposure
  4. Word of mouth
Publicity: 2 problems
  1. Timing, decided by the media not the firm
  2. Accuracy, because the release is rewritten
MKT4104 · Integrated Marketing Communication · Class test 2 study guide Compiled from handwritten lecture notes, with terminology checked against Belch and Belch, Advertising and Promotion, 11th edition · Terminology preserved as taught

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