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Chapter 16 - Using Effective Promotions
77. In evaluating personal selling it is safe to conclude that it represents a form of
individualized advertising.
Feedback: Personal selling is face-to-face presentation and promotion of goods and services.
Advertising is non-personal communication through various media. Personal selling,
therefore, is not advertising.
78. The hallmark of an effective salesperson is the ability to complete a sale as soon as the
sales presentation is completed.
Feedback: The presentation stage of personal selling is usually followed by an effort to
answer questions and overcome objections. An effective salesperson will realize that
customers are likely to have legitimate questions and concerns, and will look at questions and
objections as an opportunity to improve relationships. Even after objections are answered, the
close may take some time.
79. Questions and objections from customers following a sales presentation indicate that a
salesperson was poorly prepared for his/her presentation.
Feedback: Customers often will have questions and legitimate concerns about a product. The
sales person should not take these concerns and doubts as an indication that the customer is
challenging the presentation. Rather, customer questions and concerns should be viewed as an
opportunity. In fact, by helping customers resolve their doubts, salespeople can create a better
relationship with the customer.
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90. An effective public relations program informs the public that the firm is responsive to
their needs.
91. To be effective and maintain its independence, the public relations department should
avoid establishing close relationships with the media, community leaders, and other
corporate stakeholders.
92. Using effective public relations involves establishing a dialogue with customers so that
information can be exchanged and trust can be developed.
93. Successful PR departments find that listening to the public is not enough. They have to
tell the public that they are being responsive.
94.
Chapter 16 - Using Effective Promotions
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Public relations departments work closely with media, avoiding the time consuming
effort of interacting with individual customers.
95. Using effective public relations requires listening to the public and developing policies
that reflect the public's interest.
96. PR firms find that their services can be enhanced and improved by listening to the public
in different forums including the Internet.
97. Publicity is often referred to as the talking arm of public relations.
98.
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Unlike other promotional tools, such as advertising and personal selling, publicity is free.
99. Compared to effective comparative advertising, publicity is generally considered less
believable.
100. One fact that marketers must keep in mind is that publicity can be either positive or
negative.
101. Compared to advertising, publicity offers a firm greater control over when and how
often the message is communicated.
102.
Chapter 16 - Using Effective Promotions
Publicity works and is often used only if the media finds the information interesting or
newsworthy.
103. The first step in the public relations process is to ensure that everyone in the
organization understands the firm's position on key issues. With this information widely
available, efforts can be made to persuade the public of the firm's virtues.
Feedback: Good public relations begins with listening to the public. Public relations is not
about generating propaganda to convince customers that they are always right. Instead, firms
that make effective use of public relations earn public trust and approval by being willing to
change their policies and procedures to make sure they are in the public interest.
104. As a manager for a firm that produces a variety of recreational equipment and sporting
goods, Kevin is convinced that his firm markets the safest, highest quality equipment in
the entire industry. Recent studies from the Consumer Product Safety Commission
support his position. Kevin feels that the best way to create an image of high quality, safe
products is to develop an extensive advertising campaign. Kevin realizes that publicity
lacks the credibility that advertising can generate.
Feedback: Aside from being free, the biggest advantage of publicity is that it is more
believable than advertising. Thus, if believability is a concern, Kevin should first write a press
release about the safety statistics that grabs the attention of media. If the news media report
this information, Kevin will not only save advertising money, but he may also enhance the
public's belief in the information presented.
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113. Internal sales promotion efforts target salespeople and employees that handle customer
complaints.
114. The use of coupons and sales contests represent internal public relations and sampling
activities.
115. The most effective sales promotion programs target customers, rather than employees
and marketing intermediaries.
116. Trade shows represent sales promotion programs designed to create product
enthusiasm from distributors and dealers.
117.
Chapter 16 - Using Effective Promotions
Virtual trade shows are not effective at promoting tangible goods therefore they promote
services rather than tangible products.
118. It's just as important to generate employee enthusiasm about a product as it is to attract
potential customers.
119. Sampling represents a quick and effective way to demonstrate a product's superiority
at the time when consumers are making a purchase decision.
120. As a salesperson for an electrical contractor, Greg is included as part of the target
audience for sales promotions from his own company.
Feedback: It's just as important to get employees enthusiastic about a sale as it is to attract
potential customers. The most important internal sales promotion efforts are directed at
salespeople and other customer-contact people.
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128. Multilevel selling schemes that reward consumers for directing other consumers to
specific websites represent an example of viral marketing.
129. A testimonial represents communication from a customer that praises a firm's
products.
130. While testimonials effectively promote products to new customers, they are not
effective in reaching existing customers.
131. Online chat rooms and bulletin boards offer opportunities for positive and negative
word-of-mouth promotion.
132.
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Any word-of-mouth promotion that puts a company's product in the public's attention is
good promotion.
133. A blog is an online diary that looks like a Web page but is easier to create and update
by posting text, photos, or links to another site.
134. There are millions of blogs on the Internet today but the number of new blogs seems
to have peaked meaning blogs will decrease steadily over the next few years.
135. Podcasting is a means of distributing audio and video programs but these programs
can only be seen and heard using technology such as an Apple iPod.
136.
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Podcasting enables independent producers to create self-published, syndicated "radio
shows."
137. The popularity of the Internet enables companies to decrease their emphasis on
traditional promotional tools such as TV advertising.
138. New technology allows marketers to promote products to consumers through cell
phones using text messaging.
139. Even though advances in mobile media present some interesting opportunities,
marketers expect that traditional promotions such as TV advertising will dominate
promotional efforts over the long term.
140.
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In the evaluation of the promotion, it's best to establish a promotional strategy that can
reach multiple targets rather than developing a separate promotion mix for each target
group.
141. Personal selling provides the most efficient element of the promotion mix for a firm
attempting to reach a large, homogeneous group of consumers.
142. In evaluating the promotion mix, it's fair to say that large organizations are best
reached through personal selling.
143. A pull strategy utilizes consumer demand for a product to motivate retailers and
wholesalers to actively market the product.
144.
Chapter 16 - Using Effective Promotions
Push strategies target consumers with sales promotion and heavy discounting that are
designed to create a strong demand for the product.
145. The objective of a push promotional strategy is to move a product through a
distribution channel by offering incentives to wholesalers and retailers to stock and sell
the merchandise.
146. The Internet provides an effective medium for consumers who pick their products
from online outlets or who do online comparison shopping.
147. A pick economy is a research term meaning the selection of global markets that a
company randomly decides to target for its goods and services.
