Lecture given on 6.2.2014 to bachelor studens as part of a course on Marketing Communications

1. Marketing communications
Personal Selling, Sales Promotion, Public
Relations, Publicity and Sponsoring
Tuija Marstio
Lohja
www.laurea.fi
6.2.2014

2. Personal selling is an exchange of values
”Personal selling is the process of informing
customers and persuading them to purchase
products through personal communication in and
exchange situation.” (Dibb et al. 1998)
• It is not something you do to someone, it’s
something you do for and with someone
• Selling starts by selling your personality

3. Advantages of Personal Selling
•
•
•
•
Two-way communication
Tailored messages
Minimised disturbances
Salesperson involved in the decision-making
process
• Tool for gathering market research / customer
data

4. Disadvantages of Personal Selling
• Identical message cannot be repeated
• Conflicts between salespeople and sales
management
• Expense
• Poor coverage

5. Tasks of a Salesperson
•
•
•
•
•
Communication
Sales
Relationship management
Teamwork
Database tasks
(Vuokko, 2003)

6. Stages of Selling
1.Mapping and seeking customers
2. Needs assessment
3. Preparation for the sales
situation
4. Sales negotiation
5. Offer
6. Closing the sale
7. Follow-up

7. Reflection: New qualities of a sales person
How has the role of a salesperson changed in
the era of digitalization?
What new qualities should he/she have?

8. Sales Promotion
(Vuokko, 2003)

9. Sales Promotion
Sales promotion: offering incentives to members of the
distribution chain, sales organisation and consumers
that increase the sale of products and services
- Only succeeds if the additional advantage
brings some value to the target group
(Vuokko, 2003)

10. Objectives
1. To increase sales
2. To develop new sales leads
3. To gain trade acceptance from retailers
4. To move excessive stock

11. Promotions targeted at the
distribution chain
Sales Promotion Targets and Forms
Manufacturer
Promotional measures targeted at sales
staff
Sales staff
Distribution channel members
Retail
promotion measures
Consumer
(Vuokko, 2003)
Consumer
promotions

12. Sales Promotion Measures
- Own Sales Organisation
1. Meetings, information and training events,
bulletins that provide information for sales staff
2. Sales support material
3. Sales competitions with an award
(Vuokko, 2003)

13. SP Methods - Members of the
Distribution Chain
1. Informing about e.g. products, upcoming campaigns,
company plans
2. Training events, sales meetings, company visits
3. Industry fairs and exhibitions
4. Systems that facilitate the order process
5. Reductions
6. Support for product placement
7. Freebies, promotional gifts
8. Sales competitions, bonuses, incentives
9. Campaign support, joint marketing
10. Retail material: product leaflets, posters, stands
(Blythe, 2006; Vuokko, 2003)

14. SP targeted at Consumers
1. Reductions, reimbursements for unsatisfied customers
2. Complementary gifts, bonus packages
3. Free samples, trial offers
4. Customer loyalty programmes
5. Extra equipment, additional advantages
6. Promotional gifts, promotional goods
7. Competitions, prize draws
8. Demonstrations, tastings; the organiser of the tasting being
present increases efficiency
9. Fairs, exhibitions, presentations
10. In-store advertising; e.g. in-store TV, posters
(Blythe, 2006; Vuokko, 2003)

15. Reflection: If Sales Promotion Does Not Work
- In what kind of situations the sales
promotion does not work?
- What can be the pitfalls of sales
promotion ?

16. Free Ladas boost sales by 36 %
(Smith & De Zoek, 2011)

17. Examples of creative sales promotion
The Sunday Sport offered a free test kit that
helped readers to determine whether their
mother-in-law were, in fact, aliens. The
paper sold out within hours
Opening of the
Ramada Hotel in
Manchester
(Smith & De Zoek, 2011, Blythe, 2006)

18. Public Relations
= Means of creating goodwill value for a company
- Aiming to gain and maintain the understanding and
support of the stakeholders that the organisation
depends on or is interested in.
(Blythe, 2006; Vuokko, 2003)

19. • PR is about creating images, not making
sales
• PR is a long-term activity, with long-term
pay-offs

20. PR Measures impacting Internal
Stakeholders
Seeking to make staff feel it is an essential part of the
company. Aiming for a feeling of togetherness,
commitment to the company, work motivation, and staff
awareness of organisational issues
Means:
 Open communication
 Creating a feeling of ”you are important to us”
(Vuokko, 2003)

21. PR measures Impacting External
Stakeholders
Target groups include customers, suppliers,
subcontractors, funders, media, authorities, trade
associations and the general public. The aim is to create
a positive attitude towards the company.
Means:
 'Open house' events, openings
 Arranging company visits for different stakeholders
 Extranet e.g. with raw material distributors
 Lobbying
(Vuokko, 2003)

22. The Body Shop requires all its franchise
operations to run projects to benefit their local
communities.
This gives a positive image of the company to the
community.

23. Maslow’s hierarchy of needs

24. The hierarchy of organisational needs by Pearson
Requirements
Typical PR activityOrganisational
need
Output
Money, machines,
manpower, materials
Staff programmes to attract the right people
Survival
Cash flow, profits,
customers
Publicity aimed at customers; events
publishing the firm and its products
Morale
Employee job
satisfaction
Staff newsletters, morale boosting activities,
staff parties etc.
Acceptability
Approval by the
external stakeholders
External PR, shareholder reports, lobbying,
events for suppliers and customers,
favourable press releases
Leadership
Havind a respected
position in the
company’s chosen
field
Corporate-image building exercises,
customer-care activities, sponsorship of
research in universties, publicity about new
products etc.
(Blythe, 2006)

25. Publicity
= Conscious effort to gain "free" time or space
in the media for positive news or other stories about the
company
- Uncontrollable: ultimately, the media decides
what types of news it creates on the basis
of a press event or press release
- Large target group, general public
- Important to also be able to handle negative publicity
(Vuokko, 2003)

26. Reputation management
- or can it be managed?
• Identity forms basis for reputation
• What ever you decide to do be prepared to discuss it
in an interview.
• Negative reputation can have a direct correlation to
disappearing clients
• At the same time transparency can be a very positive
force for marketing and for building a good
reputation
(Aula & Mantere, 2005;Keskinen, Lipiäinen, 2013)

27. A company with good reputation
- Attracts emplyees
- Attracts investors
- Influence on decision making of the
buyers > a competitive edge
- Stands out from the crowd
(Aula & Mantere, 2005)

29. CASE Southwest Airlines
- SA planned to move on free seating instead of the
fixed seats to be reserved in advance > negative
feedback through the blog
> General Director Gary Kelly replied
via blog to inform that
the plan was abandoned

30. Case Nestlé

31. • Nestle informed, that it will delete all
comments with a modified logo.
• Nestlé: ” Thank you for the lessons of
good conduct….But this is our site and we
define the rules.”
• More than 100 000 FB-fans followed the
discussion in real time. Apart from
destroying the rain forests the company
was now being accused also for
censorzhip

33. Reflection: How to calm down the
rage online ?
- Have an emergency plan for online-fuzz: who to
contact, how to decide on actions, who replies, etc.
- Precaution: keep the loyal customers active online
- Clarify the situation: what has happened?
- Apologize if there is a reason
- React asap
- Respond always in a constructive way
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34. Sponsoring
= Hiring and exploiting a certain person, group, event or
other activity, for defined marketing communication
purposes
- The main aim is to achieve media publicity and
visibility as well as to support product development
-
”Companies want to show they are good corporate
citizens”
- Important to define the purpose of sponsoring and the
expected return from the sponsor
(Vuokko, 2003)

35. Most Popular Areas of Sponsoring:
SPORTS (60%)
- Team sports, youth sports, sports events (ice-hockey 19%)
CULTURE (13%)
- Art events, art institutions,
entertainment events, individual
artist
OTHER (27%)
- Society
- Education
- Social welfare
- Environment (e.g. Baltic Sea)
- Television, radio, film
- Science
(KL 29.9.11, Sponsorointibarometri 2010)

36. Sponsoring and Brand Building
= Linking the brand commercially to the object of
sponsoring
- Aims for a long-term
effect
(Aaker, 2000)

37. 2.Offers an
experience
1. Mobilises the
organiser
6. Integrates the
brand into the link
between the event
and customer
5. Develops brand
associations
BUILDING
BRANDS
THROUGH
SPONSORING
3. Introduces new
products or
technology
4. Creates brand
visibility

38. 1. Mobilising: Employees are proud to be connected to e.g. an
interesting event. Emotional advantages become increasingly strong
when employees take part in events.
2. Offering an experience to customers: A unique way to reward key
customers – receive box seats for the Opera Festival. Annual
experience: belonging to a ”brand family” - enhancing customer
loyalty. Membership in exclusive customer group.
3. Introducing new products: Aiming for media publicity through
sponsoring. E.g. presenting a new product at an event.
4. Creating visibility:
Measuring: Brand recognition before and after the event, number of
times sponsoring was mentioned, how many people see
5. Developing associations: Brand – Sponsor – Desired association
(triangle)
6. Link between event and customer: - impacts a sense of
identification: The object of sponsoring is an important part of life
and means for expressing one's identity. The public enjoys the event,
and this experience is transferred to the brand.

39. Sponsored area
Sponsoring company
Sponsoring
return
Support,
e.g. support
advertising
Media
coverage
Final target group
(Vuokko, 2003)
Sponsoring as a
means of
communication

40. Kauppalehti 16.10.2008:
”Olvilla on toisenlaiset tavoitteet”
•
•
•
•
Hartwall: Jokerit
Koff: HIFK
Olvi: Tappara ja Kalpa
Olli Heikkilä, Brand and Communications
Director at Olvi: ”We've tried take care of
what's most important. Finding workforce
cannot be taken for granted even in our
case…”
→ 80% of sponsorship funds to Ylä-Savo
region

41. ”Treading one's own path creates respect”
• Energy company St1 gained wide
appreciation when it began to
sponsor skiing after the doping
scandal of 2001
• - ”Skiing gives us a foothold in
the whole of Finland, close to our
local branches.”
(Ekonomi 2/2009)

43. References:
• P. Aula & S. Mantere, 2005. Hyvä yritys – strateginen
maineenhallinta;
• D. Aaker & E. Joachimsthaler, 2000: Brändien johtaminen;
• J. Blythe,2006: Essentials of Marketing Communications;
• T. Keskinen & J. Lipiäinen, 2013: Asiakkaan matkassa;
• T. Rope, 2005: Suuri Markkinointikirja;
• P. Vuokko, 2003: Markkinointiviestintä – merkitys, vaikutus,
keinot;
• PR Smith 6 De Zook, 2011.Marketing Communications
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