PR & Personal SellingPR & Personal Selling

Week 11

Prepared by : W. Rofianto

A management function

evaluates public attitudeswhichwhich

identifies the policies and proceduresandand

an organization with the public interestofof

executes a program of action (and communication)andand

earn public understanding and acceptancetoto

executes a program of action (and communication)

an organization with the public interest

identifies the policies and procedures

evaluates public attitudes

A management function

Public Relations Defined

PR Perspective and Integration

Customers

Employees

Investors

Government

Community

SuppliersSuppliers

Employees

Government

Investors

Customers

Public Relations Department

MarketingDepartment

PublicRelations

IntegratedIntegrated

Marketing Public Relations (MPR) Functions

Building marketplace excitement before media advertising breaks

Creating advertising news where there is no product news

Introducing a product with little or no advertising

Providing a value-added customer service

Building brand-to-customer bonds

Influencing influentials, providing information to opinion leaders

Improving ROI

Defending products at risk, giving consumers a reason to buy

Building marketplace excitement before media advertising breaks

Creating advertising news where there is no product news

Introducing a product with little or no advertising

Providing a value-added customer service

Building brand-to-customer bonds

Influencing influentials, providing information to opinion leaders

Improving ROI

Benefits of Marketing Public Relations (MPR)

Difficult to tie in slogans or other advertising devices

No standards for effective measurement

Lack of control over media

Media time and space aren’t guaranteed

A highly targeted way to conduct public relations

Endorsements by independent third parties

Achievement of credibility

Makes advertising messages more credible

Breaks though the clutter

Circumvents resistance to sales efforts

AdvantagesAdvantages DisadvantagesDisadvantages

Difficult to tie in slogans or other advertising devices

Lack of control over media

Media time and space aren’t guaranteed

A highly targeted way to conduct public relations

Endorsements by independent third parties / opinion leaders

Achievement of credibility

Makes advertising messages more credible

Breaks though the clutter

Circumvents resistance to sales efforts

Improved ROIImproved ROI

The Process of Public Relations

Measuring Program Effectiveness

Developing and Executing a PR Program

Establishing a PR Plan

Determining and Evaluating Public Attitudes

Developing and Executing a PR Program

Establishing a PR Plan

Determining and Evaluating Public Attitudes

Determining Public Relations Audiences

The Media

Governments

Financial GroupsThe Media

Governments

External or Independent

Educators

Civic and Business

Organizations

Educators

Civic and Business

Organizations

Customers and

Clients

Employees of the Firm

Vendors and

SuppliersCommunity Members

Stockholders and InvestorsStockholders and Investors

Customers and

Clients

Employees of the Firm

Vendors and

SuppliersCommunity Members

Internal or Associated

Implementing the PR Program

Press Releases

Community Involvement

Press Conferences

Exclusives

Interviews

The Internet

PR Tools

Press Releases

Community Involvement

Press Conferences

ExclusivesThe Internet

Credibility

Lead Generation

Cost Savings

Avoidance of Clutter

Image Building

SelectivitySelectivity

Lead Generation

Avoidance of Clutter

Cost Savings

Credibility

Advantages of Public Relations

PRProvides

Positive articles over time

Negative articles over time

Negative articles over time

Positive articles over time

Over timeOn the target audience

On specific target audiences

SubjectPublica-tion Reporter

Targetaudience

Over time On the target audience

On specific target audiences

SubjectPublica-tion Reporter

Criteria for Measuring PR Effectiveness

Percentage of positive and negative articles by . . .

Ratio of positive to negative articles

Percentage of . .

Total number of impressions . . .

May Be Out of the Marketer’s Control

Part of the PR Process

The Generation of News About a Person,

That Appears in the

Media

The Generation of News About a Person,

Product, or Service That Appears in the

Media

Part of the PR Process

The Generation of News About a Person,

Product, or Service That Appears in the

Media

Publicity

Image enhancementAssuming a position on

an issue or causeImage enhancement

Assuming a position on an issue or cause

Corporate Advertising

An extension of the PR function

Promotes the organization

Does not promote a specific product or service

An extension of the PR function

Does not promote a specific product or service

Seeks involvement

Create a positive

image for the firm

Communicate the

organization’s

viewpoint

Boost employee

morale

Establish

diversified

company’s identity

Help newly

deregulated

industries

Smooth labor

relationsBoost employee

morale

Communicate the

organization’s

viewpoint

Create a positive

image for the firm

Objectives of Corporate Advertising

Objectives

Positioning Ads

Sponsorship

Recruitment

General Image Ads

Financial Support

General Image Ads

Positioning Ads

Sponsorship

Recruitment

Types of Corporate Advertising

Image Advertising

Event Sponsorship

Advocacy Advertising

Cause-related Advertising

Advocacy Advertising

the propagation of ideas and elucidation of controversial social issues of public importance in a manner that supports the interests of the sponsor.

Raises questions of constitutionality and ethics

May have questionable effectiveness

Excellent vehicle for positioning the firm

Takes advantage of benefits derived from public relations

Reaches a selected target market

May have questionable effectiveness

Reaches a selected target market

Takes advantage of benefits derived from public relations

Excellent vehicle for positioning the firm

Advantages and Disadvantages of Corporate Advertising

AdvantagesAdvantages DisadvantagesDisadvantages

Relating to Stock Prices

Attitude Surveys

Relating to Stock Prices

Attitude Surveys

Measuring Corporate Advertising Effectiveness

Focus Group Research

Effective?

Price

• Final price

negotiable

• Price provides

adequate margin

Product or

Service

• Complex goods

or services

• Major purchase

decisions

• Personal

demonstration

required

Channels

• Channel short

and direct

• Training needed

by

intermediaries

• Selling needed

to push product

through

• Intermediaries

can provide

personal selling

Advertising

• Media do not

provide an

effective link

• Information can

not be provided

by media

• Sparse market

reduce

advertising

economies

PriceProduct or

ServiceChannels

When the Sales Force is a Major Part of IMC

Selling activity limited to

order-takingProvider Stage

Attempting to persuade customer

to buyPersuader Stage

Seeking out buyers perceived to

have a needProspector Stage

Buyers identify problems to be

met by goods

Problem-solver Stage

Seller determines buyer needs

and fulfills themProcreator Stage

Buyers identify problems to be

met by goods

Problem-solver Stage

Seeking out buyers perceived to

have a needProspector Stage

Attempting to persuade customer

to buyPersuader Stage

Selling activity limited to

order-takingProvider Stage

Stages of Personal Selling Evolution

Customer Relationship Management

The organization’s effort to develop a long term, cost effective link with individual customers for mutual benefit.

Following up and servicing the account

Closing the sale

Demonstrating capabilities of the product

Recommending a way to satisfy them

Determining customers’ needs and wants

Locating prospective customers

Closing the sale

Demonstrating capabilities of the product

Recommending a way to satisfy them

Determining customers’ needs and wants

Locating prospective customers

Personal Selling Responsibilities

This is essentially a support roleThis is essentially a support role

Requires the most skill and preparationRequires the most skill and preparation

Must assess situation, determine needs

This role is much more casual

Often involves straight rebuying

May not actually take the order

Often involves straight rebuying

Must assess situation, determine needs

This role is much more casual

Types of Sales Jobs

Creative Selling

Order Taking

Missionary Sales Rep

10 Traits of Effective Salespeople

1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection.

2. Sense of urgency: wanting to get it done now.

3. Ego drive: a combination of competitiveness and self esteem.

4. Assertiveness: the ability to firm and get one’s point across confidently.

5. Risk-taking: willing to innovate and take a chance.

6. Sociable: outgoing, friendly, talkative, and interested in others.

7. Abstract reasoning: ability to understand concepts and ideas.

8. Skepticism: a slight lack of trust and suspicion of others.

9. Creativity: the ability to think differently.

10. Empathy: the ability to place oneself in someone else’s shoes.

Reach may be

very limited

Reach may be

very limited

Message can be

tailored to recipient

Message can be

tailored to recipient

Two-way interaction

with prospect

Two-way interaction

with prospect

Prospect isn't likely

to be distracted

Prospect isn't likely

to be distractedCost is often

extremely high

Cost is often

extremely high

Personal Selling Advantages and Disadvantages

Possible management-sales

force conflict

Messages may be inconsistent

Seller involved in purchase

decision

Source of research information Potential ethical problems

AdvantagesAdvantages DisadvantagesDisadvantages

Possible management-sales

force conflict

Messages may be inconsistent

Seller involved in purchase

decision

Source of research information

Measures of Sales Results

Orders

Sales Volume

Margins

Customer Accounts

Sales Calls

Selling ExpensesSelling Expenses

Sales Calls

Customer Accounts

Margins

Sales Volume

Orders

Customer Service

Quantitative

Measures

Selling Skills

Sales Related Activities

Qualitative

Measures