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Marketing:AnIntroductionFifteenthEditionChapter13PersonalSellingandSalesPromotionCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)13.1Discusstheroleofacompany’ssalespeopleinengagingcustomers,creatingcustomervalue,andbuildingcustomerrelationships.13.2Identifyandexplainthesixmajorsalesforcemanagementsteps.ObjectivesOutline(2of2)13.3Discussthepersonalsellingprocess,distinguishingbetweentransaction-orientedmarketingandrelationshipmarketing.13.4Explainhowsalespromotioncampaignsaredevelopedandimplemented.FirstStop:Salesforce:YouNeedaGreatSalesForcetoSellSalesforceSalesforce’scloud-based“CustomerSuccessPlatform”providesawidearrayofcustomerrelationshipmanagementtoolsthathelpitscustomers“superchargetheirsales.”ObjectiveOutline
13.1Discusstheroleofacompany’ssalespeopleincreatingvalueforcustomersandbuildingcustomerrelationships.PersonalSelling(1of2)Personalpresentationsbyasalesforcetoengagecustomers,makesales,andbuildcustomerrelationshipsSalesperson:Representsacompanytocustomersbyperformingthefollowingactivities:ProspectingandcommunicatingSellingandservicingGatheringinformationandbuildingrelationshipsPersonalSelling(2of2)Professionalselling:Ittakesmorethanfasttalkandawarmsmiletosellexpensiveairplanes.Boeing’srealchallengeistowinandkeepbusinessbybuildingpartnershipswithcustomers.TheRoleoftheSalesForceLinksthecompanywithitscustomersCoordinates
marketingandsalesObjectiveOutline13.1SummaryPersonalselling—engagingcustomers,makingsales,andbuildingcustomerrelationshipsAsalesforceservesasacriticallinkbetweenacompanyanditscustomers.Prospecting,communicating,selling,servicing,informationgathering,andrelationshipbuildingObjectiveOutline13.2Identifyandexplainthesixmajorsalesforcemanagementsteps.SalesForceManagementSalesforcemanagement—analyzing,planning,implementing,andcontrollingsalesforceactivitiesFigure13.1MajorStepsinSalesForceManagementDesigningtheSalesForceStrategyandStructureTypesofsalesforcestructures:TerritorialProductCustomer(ormarket)SalespeoplecanbespecializedbyCustomerandterritoryProductandterritoryProductandcustomerTerritory,product,andcustomerTheSalesForceStructureCustomersalesforcestructure:P&G’sWalmartCustomerBusinessDevelopmentsalesteamconsistsofhundredsofP&GerswhoworkcloselywithWalmartbuyersinWalmart’shometownofBentonville,Arkansas.SalesForceSizeMayrangefromonlyafewtothousandsCompaniesmayusetheworkloadapproachtosetsalesforcesize.Accountsgroupedintoclassesbasedonsize,status,ortheamountofeffortrequiredtomaintaintheaccountNumberofsalespeopleneededtocalloneachclassofaccountsisthendeterminedOtherSalesForceStrategyandStructureIssuesOutsidesalesforce(fieldsalesforce)TravelstocalloncustomersinthefieldInsidesalesforceConductsbusinessfromtheirofficesviatelephone,theInternet,orvisitsfromprospectivebuyersTechnicalsalessupportpeopleSalesassistantsTelemarketersandonlinesellersTeamsellingTeamsofpeoplefromdifferentdepartmentsusedtoservicelarge,complexaccountsRecruitingandSelectingSalespeopleAcompanyshouldanalyzethesalesjobandthecharacteristicsofitsmostsuccessfulsalespeople.Sourcesfortherecruitmentofsalespeople:ReferralsfromcurrentsalespeopleEmploymentagenciesInternetandonlinesocialmediaPostingadsandnoticesCollegeplacementservicesSalespeopleatothercompaniesTrainingSalespeopleGoalsoftrainingaretoteachsalespeopleAboutdifferenttypesofcustomersHowtoselleffectivelyAboutthecompany’sobjectives,organization,products,andthestrategiesofcompetitorsOnlinetrainingbuildssalesskillsusingvideos,Internet-basedexercises,orsimulations.Virtualinstructor-ledtraining(VILT)CompensatingSalespeople(1of2)ElementsofcompensationFixedamount—salaryVariableamount—commissionsorbonusesCompensatingSalespeople(2of2)Salesforcecompensation:Agoodcompensationplanbothmotivatessalespeopleanddirectstheiractivities.SupervisingSalespeopleHelpsalespeopleworksmartbydoingtherightthingsintherightwaysToolsofsupervision:CallplanTime-and-dutyanalysisSalesforceautomationsystemMotivatingSalespeopleEncouragesalespeopletoworkhardandenergeticallytowardsalesforcegoalsManagementcanboostsalesforcemoraleandperformancethroughitsOrganizationalclimateSalesquotasPositiveincentivesEvaluatingSalespeopleandSalesForcePerformanceManagementgetsinformationaboutitssalespeopleFromsales,call,andexpensereportsBymonitoringthesalesandprofitperformancedatainthesalesperson’sterritoryThroughpersonalobservation,customersurveys,andtalkswithothersalespeopleFormalevaluationsforcemanagementtodevelopstandardsforjudgingperformance.SocialSelling:UsingDigitalPlatformsandToolsProvidesalespeoplewithpowerfultoolsforIdentifyingandlearningaboutprospectsEngagingcustomersCreatingcustomervalueClosingsalesNurturingcustomerrelationshipsHelpsalesforcestobemoreefficient,cost-effective,andproductiveObjectiveOutline13.2SummarySalesforcemanagement—analyzing,planning,implementing,andcontrollingsalesforceactivitiesMajorstepsinsalesforcemanagement:Designingsalesforcestrategyandstructure,recruiting,selecting,training,compensating,supervising,andevaluatingthefirm’ssalespeopleObjectiveOutline13.3Discussthepersonalsellingprocess,distinguishingbetweentransaction-orientedmarketingandrelationshipmarketing.Figure13.2StepsintheSellingProcessThePersonalSellingProcess(1of2)Valueselling—demonstratinganddeliveringsuperiorcustomervaluecapturingareturnonthatvaluethatisfairforboththecustomerandthecompanyValuesellingrequires:ListeningtocustomersUnderstandingcustomers’needsCoordinatingthecompany’seffortstocreatelastingrelationshipsbasedoncustomervalueThePersonalSellingProcess(2of2)Salesmanagement’schallengeistotransformsalespeopleintocompanyadvocatesforvalue.ObjectiveOutline13.3SummarySellinginvolvesaseven-stepprocess:ProspectingandqualifyingPreapproachApproachPresentationanddemonstrationHandlingobjectionsClosingFollow-upRelationshipmarketingProfitablelong-termrelationshipsBasedoncustomervalueandsatisfactionObjectiveOutline13.4Explainhowsalespromotioncampaignsaredevelopedandimplemented.SalesPromotion(1of2)Short-termincentivestoencouragethepurchaseorsaleofaproductoraserviceSalespromotiontargetsFinalbuyers—ConsumerpromotionsRetailersandwholesalers—TradepromotionsBusinesscustomers—BusinesspromotionsMembersofthesalesforce—SalesforcepromotionsSalesPromotion(2of2)Manyfactorshavecontributedtotherapidgrowthofsalespromotion.Productmanagersviewpromotionasaneffectiveshort-runsalestool.Competitorsusesalespromotiontodifferentiatetheiroffers.Advertisingefficiencyhasdeclined.Salespromotionshelpattracttoday’smorethrift-orientedconsumers.SalesPromotionObjectivesConsumerpromotionsTourgeshort-termcustomerbuyingorboostcustomer-brandengagementTradepromotionsTogetretailerstocarrynewitemsandmoreinventory,buyahead,orpromotethecompany’sproductsandgivethemmoreshelfspaceBusinesspromotionsTogeneratebusinessleads,stimulatepurchases,rewardcustomers,andmotivatesalespeopleConsumerPromotionTools(1of2)ToolsDescriptionSamplesOffersofatrialamountofaproductMosteffectiveandexpensiveCouponsCertificatesthatsavebuyersmoneywhentheypurchasespecifiedproductsRebates(cashrefunds)PricereductionoccursafterthepurchaseCustomersendsproofofpurchasetothemanufacturer,whichthenrefundspartofthepurchasepricebymailPricepacks(cents-offdeals)OffersconsumerssavingsofftheregularpriceofaproductPremiumsGoodsofferedeitherfreeoratlowcostasanincentivetobuyaproductConsumerPromotionTools(2of2)ToolsDescriptionAdvertisingspecialtiesUsefularticlesimprintedwithanadvertiser’sname,logo,ormessagethataregivenasgiftstoconsumersPoint-of-purchase(POP)promotionsDisplaysanddemonstrationsthattakeplaceatthepointofsaleContests,sweepstakes,andgamesGiveconsumersthechancetowinsomethingEventmarketing(oreventsponsorships)Creatingabrand-marketingeventorservingasasoleorparticipatingsponsorofeventscreatedbyothersEventMarketingEventmarketing:RedBullhasturnedeventmarketingintoascience.Ithostshundredsofeventseachyeardesignedtobringthehigh-octaneworldofRedBulltoitscommunityofenthusiasts.TradePromotionsUsedtopersuaderesellerstocarryabrand,giveitshelfspace,andpromoteitinadsTradepromotiontools:Contests,premiums,anddisplaysDiscountsandallowancesFreegoodsPushmoneySpecialtyadvertisingitemsBusinessPromotionsUsedtogeneratebusinessleads,stimulatepurchases,rewardcustomers,andmotivatesalespeopleBusinesspromotiontools:ConventionsandtradeshowsSalescontestsDevelopingtheSalesPromotionProgramSalespromotionprogramdesigndecisions:DeterminethesizeoftheincentiveSetconditionsforparticipationDeterminehowtopromoteanddistributethepromotionprogramSetthelengthofthepromotionEvaluatethepromotionObjectiveOutline13.4SummarySalespromotionobjectives—consumerpromotions,tradepromotions,andbusinesspromotionsConsumerpromotiontools—samples,coupons,rebates,pricepacks,andpremiumsTradepromotiontools—contests,premiums,anddisplays,discountsandallowances,freegoods,pushmoney,andspecialtyadvertisingitemsBusinesspromotiontools—conventionsandtradeshows,andsalescontestsFinalThoughtsThefastest-growingsalestrendistheexplosioninsocialselling---usingsocialmedia.Howdoesthistrendaffectsalesforces?Marketing:AnIntroductionFifteenthEditionChapter14DigitalMarketingCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)14.1Definedigital
marketinganddiscussitsrapidgrowthandbenefitstocustomersandcompanies.14.2Discusstheconsumerandmarketresearchrequiredtodesignaneffectivedigitalmarketingcampaign.ObjectivesOutline(2of2)
14.3Discussthedifferentdigitalchannelsandmediaandexplainhowcompaniesemploythemtocreateanomni-channelmarketingstrategy.14.4Identifyanddiscussthepublicpolicyissuespresentedbydigitalmarketing.FirstStop:Coca-Cola’sDigitalMarketing:MakingtheBrandaPartoftheConsumer’sStoryCoca-Coladigital,mobile,andsocialmediacampaignssparkbrandconversations,buildbrandcommunity,andmakethebrandapartofconsumers’lives.ObjectiveOutline14.1Definedigitalmarketinganddiscussitsrapidgrowthandbenefitstocustomersandcompanies.DigitalMarketingUsestechnology-intensiveplatforms—theinternet,mobiledevices,andsocialmediato:engagewithindividualconsumers,consumercommunities,andbusinesses.Theseplatforms:ProvideinformationBuildengagementPersuadeconsumersInducebrandpurchaseDrivelong-term,profitablerelationshipsFigure14.1TheDigitalMarketingProcessNewDirectMarketingModel(1of2)TheExpediaGroup’sTunitandthefamousRoamingGnomemakeiteasyforcustomersto“WanderWisely.”NewDirectMarketingModel(2of2)Somecompaniesstillusedigitalmarketingasasupplementarychannelormedium.Formanycompaniestoday,digitalmarketingconstitutesacompletemodelfordoingbusiness.RapidGrowthofDigitalMarketingFastest-growingformofmarketingDigitalmarketingbecomingmoreinternet-basedDigitalmarketingcaimsasurgingshareofmarketingspendingandsalesIncludesonlinedisplayandsearchadvertising,video,socialmedia,mobile,emailBenefitsofDirectandDigitalMarketingtoBuyersBuyersConvenient,easy,andprivateEasybuyer-sellerinteractionQuickaccesstoproductsandrelevantinformationBrandengagementandcommunitySellersLow-cost,efficient,andspeedyBuildclose,personalized,interactive,one-to-onecustomerrelationshipsGreaterflexibilityObjectiveOutline14.1SummaryDirectanddigitalmarketing—engagingdirectlywithindividualconsumersandcustomercommunitiestobothobtainanimmediateresponseandbuildlastingcustomerrelationshipsForbuyers,digitalmarketingisconvenientandeasytouse,Forsellers,directmarketingoftenprovidesalow-cost,efficient,speedyalternativeforreachingtheirmarkets.ObjectiveOutline14.2Discusstheconsumerandmarketresearchrequiredtodesignaneffectivedigitalmarketingcampaign.PreparingforaDigitalMarketingCampaign
(1of2)Adigitalmarketingcampaignstartswithdevelopingadeepknowledgeofdigitalconsumersandtheiromni-channelnavigationbehavior.KnowingtheDigitalCustomerGoodmarketingresearchprovidesconsumerinsightstoguidethedesignandimplementationofdigitalmarketingcampaigns.Digitalconsumerpersonas—detailed,nuanced,andtangiblerepresentationsofprototypicalconsumerstobetargetedbythedigitalmarketingcampaign.Figure14.2ADigitalConsumerPersonaObjectiveOutline14.2SummaryConsumerinsightswillpoweradigitalmarketingcampaign.Digitalmarketersconstructdigitalconsumerpersonasthatcapturetargetedconsumers’behaviors.Marketersmustunderstandomni-channelnavigationbehavior.Digitalmarketingallowsforeasytestingofmarketingapproaches.Marketersmustuseexperimentation.ObjectiveOutline14.3Discussthedifferentdigitalchannelsandmediaandexplainhowcompaniesemploythemtocreateanomni-channelmarketingstrategy.UnderstandingConsumerOmni-ChannelNavigationBehavior(1of2)Omni-channelnavigationbehavior:Toeffectivelymarkettoconsumerswiththerightmarketingcontentattherightplaceandtime,marketersmustunderstandwhichchannelsconsumersareusingateachstageofthecustomerjourney.UnderstandingConsumerOmni-ChannelNavigationBehavior(2of2)Consumeromni-channelnavigationbehavior:Theconsumer’suseofmultiplemarketingchannelsChallenges:TrackingtheconsumerdecisionprocessisdifficultThepatternofchannelnavigationvariesCompaniesmust:researchandunderstandconsumeromni-channelnavigation.usedatafusion,integratingdataUsingExperimentationtoUnderstandWhatWorksExperimentationinthedigitalmarketingcanassess:changesinpricingeffectivenessofdifferentonlineproductofferingsbrandmessagespresentationformats.Marketersmustpreparefordigitalmarketingcampaignsbygainingadeepknowledgeofthedigitalconsumer.OnlineMarketingMarketingviatheinternetusingcompanyWebsites,onlineadsandpromotions,email,onlinevideo,andblogsMarketingWebsites:EngageconsumerstomovethemclosertoadirectpurchaseorothermarketingoutcomeBrandedcommunityWebsites:Presentbrandcontentthatengagesconsumersandcreatescustomer-brandcommunityOnlineAdvertisingOnlineadvertising:AppearswhileconsumersarebrowsingonlineOnlinedisplayads:Digitaladsthatappearonaninternetormobilescreenrelatingtotheinformationbeingviewed.Search-relatedads:Text-andimage-basedadsandlinksappearatoporalongsidesearchengineresultsEmailmarketing:Sendinghighlytargeted,highlypersonalized,relationship-buildingmarketingmessagesviaemailSpam:Unsolicited,unwantedcommercialemailmessagesOnlineVideos(1of2)PostingdigitalvideocontentonbrandWebsitesorsocialmediaViralmarketing:Videos,ads,andothermarketingcontentthatcustomersseekoutorpassalongtofriendsOnlineVideos(2of2)Viralmarketing:Manymarketersworktocreatevideos,ads,andothermarketingcontentthataresoinfectiousthatcustomerswillseekthemoutandpassthemalongtotheirfriends.BlogsandOtherOnlineForumsOnlinejournalsofnarrowlydefinedtopicswherepeopleandcompaniesposttheirthoughtsandothercontentBenefits:Afresh,original,personal,andinexpensivewaytoenterintoconsumeronlineconversationsLimitations:Cluttered,difficulttocontrolandlargelyaconsumer-controlledmediumSocialMediaMarketing(1of3)Socialmedia:Independentandcommercialonlinecommunitieswherepeoplecongregate,tosocializeandsharemessages,opinions,pictures,videos,andothercontentMarketersengagesocialmediaintwoways:UsingtheexistingonesSettinguptheirownSocialMediaMarketing(2of3)TypesandFunctionsofSocialMediaImageandvideoplatformsSocialbookmarkingplatformsInfluenceplatformsMessagingplatformsCrowdfundingplatformsBlogs/microblogsLocationplatformsNicheworkingplatformsWikisServicenetworkingplatformsReviewsandratingsEventplatformsLivestreamingplatformsSocialMediaMarketingAdvantagesandChallengesAdvantagesTargetedandpersonalInteractiveImmediateandtimelyCost-effectiveEngagementandsocialsharingcapabilitiesChallengesEffectiveusageuncertainDifficulttomeasuretheresultsLargelyusercontrolledSocialMediaMarketing(3of3)TheJetBluesocialmediateamrespondstoeverysingleTwittermentionitreceives,withanimpressiveaverageresponsetimeof10minutes.MobileMarketing(1of2)PromotionalcontentdeliveredtoconsumersthroughtheirmobiledevicesEngagescustomersanywhere,anytimeduringthebuyingandrelationship-buildingprocessesMobileMarketing(2of2)Mobilemarketing:Forconsumers,asmartphoneortabletcanbeahandyshoppingcompanion.Asaresult,mobileadvertisingspendingissurging.CreatinganIntegratedOmni-ChannelStrategy(1of2)Today’sconsumersareincreasinglyadeptatomni-channelnavigationduringtheshoppingprocess.Omni-channelmarketing:Creatingaseamlesscross-channelbuyingexperienceOvercomingtheChallengestoOmni-ChannelMarketingAligningOmni-ChannelMarketingandtheOverallBusinessModel.AligningOrganizationalIncentivesandStructures.AligningtheMarketingMixCreatinganIntegratedOmni-ChannelStrategy(2of2)Omni-channelstrategies:TheHomeDepotadoptedwhatitcallsa“OneHomeDepot”strategydesignedtocreate“aninterconnected,frictionlessshoppingexperiencethatenablesourcustomerstoseamlesslyblendthedigitalandphysicalworlds.”ObjectiveOutline14.3Summary(1of2)Newwaytocreatecustomervalue,engagecustomers,andbuildcustomerrelationshipsOnlinemarketingtakesseveralformswebsitesonlineadvertisingandpromotionsemailmarketingonlinevideoblogsObjectiveOutline14.3Summary(2of2)Socialmedia—onlineplacestocongregate,socialize,andexchangeviewsandinformationBrandsuseexistingorsetuptheirownSocialmediaadvantagesandchallenges:Advantage—engagementandsocialsharingcapabilitiesChallenge—consumers’controloversocialmediacontentMobilemarketing—messages,promotions,andothe
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