Chapter 15

Advertising and Public Relations

Topics to Cover

• Public Relations– Role and impact– Tools

Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

Public relations is used to promote product, people, ideas, and activities

Public Relations

• Public relations department functions include:– Press relations or press agency– Product publicity– Public affairs– Lobbying– Investor relations– Development

Public RelationsFunctions of PR Department

Press relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product, or service

Product publicity involves publicizing specific products

Public RelationsFunctions of PR Department

Public affairs involves building and maintaining national or local community relations

Lobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulation

Public RelationsFunctions of PR Department

Investor relations involves maintaining relationships with shareholders and others in the financial community

Development involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support

Public RelationsFunctions of PR Department

• Lower cost than advertising• Stronger impact on public awareness than

advertising

Public RelationsRole and Impact

Tools of Public Relations

News SpeechesSpecial events

Written materials

Audiovisual materials

Corporate identity

materials

Tools of Public Relations

Public service activities Buzz marketing

Social networking Mobile tour marketing

Chapter 16

Personal Selling and Sales Promotion

Topics to Cover

• Personal Selling• Role of the Sales Force• Managing the Sales Force

Personal Selling

Personal selling is the personal presentation of the firm’s sales force for the purpose of making sales and building customer relationships

Personal Selling

Personal selling is the interpersonal part of the promotion mix and can include:

• Face-to-face communication• Telephone communication• Video or Web conferencing

The Nature of Personal Selling

Personal Selling

Salespeople are an effective link between the company and its customers to produce customer value and company profit by:

• Representing the company to customers• Representing customers to the company• Working closely with marketing

The Nature of Personal Selling

Managing the Sales Force

Sales force management is the analysis, planning, implementation, and control of sales force activities

Managing the Sales ForceDesigning Sales Force Structure

Territorial sales force structure

Product sales force structure

Customer sales force structure

Complex sales force structure

Managing the Sales ForceDesigning Sales Force Structure

Territorial sales force structure refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory

Managing the Sales ForceDesigning Sales Force Structure

Territorial sales force structure• Defines salesperson’s job • Fixes accountability• Lowers sales expenses• Improves relationship building and selling

effectiveness

Managing the Sales ForceDesigning Sales Force Structure

Product sales force structure refers to a structure where each salesperson sells along product lines

• Improves product knowledge• Can lead to territorial conflicts

Managing the Sales ForceDesigning Sales Force Structure

Customer sales force structure refers to a structure where each salesperson sells along customer or industry lines

• Improves customer relationships

Managing the Sales ForceDesigning Sales Force Structure

Complex sales force structure covers a wide variety of products sold to many types of customers over a broad geographic area and combines several types of sales force structures

Managing the Sales ForceSize of Sales Force

Salespeople are one of the company’s most productive and expensive assets.

• Increases in sales force size can increase sales and costs

Managing the Sales ForceSize of Sales Force

Workload approach to sales forces size refers to grouping accounts into different classes to determine the number of salespeople needed