PSM Lecture
I. What is MC? Trends in MC
MC mix
Integrated MC
II. What is personal selling and sales management? Trends in Sales Management/Personal selling Definitions and overview
III. What is Marketing & Sales Integration?
http://www.adweek.com/news-gallery/advertising-branding/10-best-ads-2014-161692
An average American is exposed to 3000 advertising messages every day!
Sources?
What does this tell about the consuming environment?
http://www.marketingprofs.com/charts/2015/26727/projected-2015-2017-ad-spend-growth-by-region-and-channel
Current trends in marketing communication:
Audience fragmentation
Response: content available in multiple platforms Response: message personalization
Demand for increased efficiency (traditional mass media communication primarily stimulates awareness &
attitudes, less effective in directly influencing demand) Decreasing effectiveness of mass media communication
Response: combining mass media communication with internet advertising and social media targeting
Current trends in marketing communication:
Technology development:
One-pipe convergence (single broadband feed for TV, PC, DVD etc.)
Inside media: outdoor posters digital screens New point-of-sale innovations
Internet revolution: business models of print media becoming obsolete
Current trends in marketing communication:
Customer development:
Social media has transformed people from receivers to communicators
From passive consumers of media (and advertising) to active seekers of knowledge
Usage of different media has changed rapidly and continues to change
From TV and newspapers to internet to social media to messaging services to…?
“Messages and related media used to communicate with a market.” Or… ”The communication between an organization and its target audiences on all matters that affect marketing performance”
Targeted to the firm´s stakeholders: customers, subcontractors, financers, media, employers, shareholders
Creates demand directly, or phenomena that positively affect demand
Informing, persuading, ensuring, reminding the markets
Includes: advertising, branding, brand language, direct marketing, graphic design, marketing, packaging, promotion, publicity,
sponsorship, public relations, sales, sales promotion and online marketing
What is marketing communications?
Marketing communications is the "promotion" part of the "marketing mix" or the "four Ps": price, place, promotion, and product. It can also refer to the strategy used by a company or individual to reach their target market
through various types of communication.
tools: marketing communications mix
process: sender, message, media, receiver
Marketing communications mix:
Personal selling Advertising
Sales promotion, point-of-sale & merchandising
Direct marketing
Publicity / public relations
Corporate identity / image Packaging
Exhibitions
Word of mouth
Product placement Sponsorship
Different activities affect different stages of
the consumer decision-making process!
Effectiveness of MC tools:
Budget allocations by type of goods (example) (Varey 2002)
Advertising Publicity Sales promotion Personal selling Consumer: low value – chocolate bar 50 % 10 % 25 % 15 % Consumer: high value – car 35 % 10 % 25 % 30 % Industrial: low value – office supplies 20 % 10 % 25 % 25 % Industrial: high value – machinery 10 % 10 % 25 % 55 % Liisa-Maija Sainio
What is integrated
marketing communications?
Kotler (1999): Integration and coordination of many
communications channels to deliver a clear, consistent & compelling message about the organization and its products Percy (2008): Planning and execution of all types of
advertising-like and promotion-like messages selected for
brand, service, or company, in order to meet common set of
communication objectives, more particularly, to support a
single ”positioning”.
Selected target audience groups
Key drivers of integrated communications:
loss of faith in mass media advertising media cost inflation
need for more impact
need for more cost-effectiveness and efficiency media fragmentation
audience fragmentation
increased reliance on highly targeted communication methods
Key drivers of integrated communications:
low levels of brand differentiation technological evolutions
overlapping audiences
more complex decision-making units need to build more customer loyalty move towards relationship marketing globalization of marketing strategies
Dimensions of IMC:
Promotional mix integration
Integration of promotional mix with the other elements of the marketing mix!
Integration of creative themes, concepts & messages Intra- & interorganizational integration
Dimensions of IMC:
Information and database systems Internal vs. external audiences
Integration with corporate identity
Geographical integration (national vs. global brands)
Anssi Tarkiainen Evolution of the role of selling
and sales management
Adapted from Manning and Reece, 2004, p.5
Industrial Economy 1860 -1960
Information Economy 1960 - 2020
Manufacturing and transportation Capital and natural resources
Products and factories Meeting sales quotas
Information technology
Strategic resource is information Customer relationships
Anssi Tarkiainen
Changes in the selling environment
Colletti & Fiss (2006, HBR):
- Customers have gained power
- Customers have gone global
- Channels have proliferated
- More product companies sell services
Anssi Tarkiainen
Changes in sales management
Critical issues in reinventing the sales organization:
1) Building long-term relationships with customers
2) Creating sales organization structures that are adaptable to needs of different customer groups
3) Creating commitment
4) Sales management has shifted from commanding to coaching
5) Use of technology
6) Salesperson performance evaluation
II. Personal selling and sales
management
What is personal selling?
Manning & Reece (2004): Personal selling involves person-to-person
communication with a prospect. It is a process of developing relationships; discovering needs; matching the appropriate products with these needs; and communicating benefits through informing, reminding, or persuading.
Anderson (1995): Selling The use of persuasive communication to negotiate mutually beneficial agreements.
Kurtz & Hodge (1991): Personal selling is defined as an interpersonal persuasive process designed to influence some person’s decision.
Anssi Tarkiainen
Position of selling and marketing
Traditionally personal selling is considered to be a component of the promotion in the marketing mix. (Jobber & Lancaster, 2003)
1. Price: Price levels, credit terms, price changes, discounts
2. Product: features, packaging, quality, range
3. Promotion: advertising, publicity, sales promotion, personal selling
4. Place: inventory, channels of distribution, number of intermediaries
Personal selling is a form of personalized, customized communication.
Anssi Tarkiainen
Position of selling and marketing
Personal selling
Sales promotion and publicity Advertising
Personal selling
Sales promotion and publicity Advertising
Awareness - Comprehension - Conviction - Purchase Consumer goods --- Industrial goods
Adapt
ed from Donaldson, 19
Anssi Tarkiainen
Sales management
1. Formulation of a sales program
2. Implementation of the sales program
3. Evaluation and control of the sales program
Anssi Tarkiainen
An overview of sales management
Environment Internal Environment Account manag. Policies Sales force Organization Sales planning Deployment Supervision Selection, Training, Motivating Personal characteristics Performance Evaluation And control Control Outcomes Salesperson Performance Determinants Sales Manag. Activities Marketing Strategy External Environment Marketing Activities
Job and role Perceptions and requirements
Adapted from
III. Marketing & Sales Integration?
“In many companies, sales forces and marketers feud like Capulets and Montagues –with disastrous results.”
- Kotler, Rackham, & Krishnaswamy, (2006)
”IMC coordination efforts within marketing largely ignore the most significant marketing tool for communicating and influencing relationships with
customers—the company’s sales force”
-Rouzies et al. (2005)
Anssi Tarkiainen
Position of sales in promotion mix?
Startups and small businesses often do not establish a formal marketing group at all they equate marketing with selling
Eventually, when a marketing person(s) is hired, his/her role is in helping salesforce
- market research
- works with advertising and promotions
- developing collateral material for sales force - finding and qualifying leads to sales force
At this stage the relationship between marketing and sales functions is usually positive.
Anssi Tarkiainen
Position of sales in promotion mix?
As companies become larger and more successful, the role of marketing often changes into segmenting, targeting and positioning.
Marketing becomes an independent player. It often starts to compete with sales for funding
Marketing starts to work more closely with other departments Focus on brands
Anssi Tarkiainen
Position of sales in promotion mix?
Friction in the integration of sales and marketing:
- Economic
- Need to divide budget between sales and marketing
- Cultural
- Time: future vs. present
- Behind the desk vs. in the field
- Broad appeal vs. needs of individual customers
- Strengthening brand vs. increasing sales
