Professional Documents
Culture Documents
Greetings,
This is your final exam, it is an open book exam, and every one knows that open book
exam does not mean to re-write what is in the book or to copy and paste. Your
understanding of the whole course, your thoughts, and your critical thinking are very
important to succeed and be distinct.
Read carefully all questions, follow instructions for each one, use your own way. Use
every possible source of information. Be unique, be distinct, be yourself.
Good luck.
Adham Abulnour
First question:-
Komatro is the health-conscious juice company which began a couple of decades ago when
Greg Steltenpohl, Gerry Percy and Bonnie Bassett began squeezing fresh oranges on a $200
hand juicer. The company was growing strongly with annual sales rising 30% per year and
approaching $90m. The company had established a strong brand with enormous member
loyalty.
On October 30, 1996, everything changed. Health officials in Washington state informed the
company that they had discovered a link between several cases of E. coli 0157:H7 (E. coli
bacterial poisoning) and Komatro fresh apple juice.
The link was confirmed on November 5. As the crisis played itself out, one child died and
more than 60 people in the Western United States and Canada became sick after drinking the
juice. Sales plummeted by 90%, Komatro's stock price fell 34%. Customers filed more than
20 personal-injury lawsuits and the company looked as though it could well be destroyed.
You are the Marcom Manager of Komatra Company, will be writing a press release to
handle the crisis that your company is facing.
Answer:
Komatro Incorporated
Seattle county.
Washington, USA
Komatro Incorporated
food industries
PRESS RELEASE
Komatro Inc. successfully contains and terminates the
E-coli outbreak in apple juice
The company responds to the outbreak claim with absolute efficiency and
utmost care towards the affected consumers
Washington, USA, January 5, 2015:
Our cherished Customers:
We, at Komatro Incorporated, are profoundly alarmed by the claim (issued by health
officials at the Washington State Department) that our apple juice products contain E. coli.
Our number-one concern is the safety and well-being of people who drink our juices. From
the moment we received the alarm (and even though no solid proof was provided, at the time,
regarding the accuracy and relevance of this claim), we have acted immediately and taken
every action possible to retrieve the cause of this outbreak and ensure future prevention.
To this end, we have ordered a complete recall of all our products containing apple juice. This
recall covered each and every of our retail outlets (numbering in thousands in several states).
The recall was thoroughly completed within a few hours thanks to multiple and efficient task
teams that were formed and mobilized immediately after the onset of the alarming notification.
The recall cost was in millions which the company endured because our most important
concern is the health of the consumer.
The company would like to express sympathy and regret for all those affected and is
immediately promising to pay all medical costs that pertain to the E. coli outbreak.
We have immediately created an interactive website (www.xxxx.com) for all of our valued
customers to report any problem that they have had with our products. Several press
conferences and TV encounters (viewable on our website) are being held to provide accurate
and reliable information on how we have contained the outbreak and improved our business
practices to avoid such alarming situation in the future. Company internal meetings are being
held on a daily basis to give our employees the chance to ask questions and get the latest
information on how to remedy the situation.
Our cherished customers,
All of us at Komatro are greatly distressed by this situation. Komatros first concern is
always to provide fresh natural products with no harmful preservatives or artificial
materials. We rigorously follow our vision statement and core values of responsibility,
honesty and trustworthiness. We sincerely apologize for any inconvenience or fear
stirred by the situation and we are acting by the minute to get our products back to the
public with optimum care as we have always treated you.
Thanks a lot for your understanding, commitment and loyalty.
###
Adham Marcom
President of Komatro Incorporated
For more information please contact Adham Marcom at: Marcom.Adham @komatro. org or use phone
contact: 001-000000000
Second question:You have been asked to advise a club to which you belong on how to manage its
communication program. Develop for the club its own communication model IMC campaign
and explain how the campaign can help the club identify its communication problems and
develop better communication program and activities.
Answer:
An IMC campaign developed to improve a clubs communication program should be optimally
constructed on a number of critical foundations:
club, a calendar of events and meetings, membership information and definitely the
club's contact details. The website should be ideally linked to related sites and search
engines. A starting point is to ask schools, universities and recreation centers to
include a link to the clubs website on theirs. Members discussion forums are
encouraged to be included on the website. The websites content should be updated
continually with new information.
3. On the same E-communication track, emails facilitate the communication between
clubs and members. The club should however carefully consider the content and
control the quantity of email messages sent out to members. It is commonly less
provocative to members (whether current or potential) to receive a single email with a
number of key points rather than multiple emails each with a single message.
Attention should be paid when sending out mass emails to enter all the recipients
email addresses in the "bcc" slot and not the "to" the "cc" slot. This helps prevent
against future complaints from privacy infringements and spam mails.
4. Newsletters are a vital tool in promoting clubs as they provide information to
members about events, activities, and news. Again, a positive step is to include club
members with the skills to design and write the newsletter. Easy, personalized and
direct channels should be incorporated in communicating the newsletter. It is less
expensive to send newsletters to members by email rather than printing them. The
newsletter should be also downloadable (or at least browse-able) from the website
too. Newsletters are the most common and direct way of communicating with
members, especially if it is via email. Newsletters should be clear and easy to read. A
good newsletter needs to get all relevant information to the right people in a timely
and accessible fashion.
5. Another effective tool is to design and communicate (distribute) flyers and brochures
that contain the club's services and contact information. Mail boxes and notice boards
(in community centers, recreation centers, schools and companies) are common
delivery platform for flyers and brochures.
6. Distributing promotional T-shirts, caps, socks and uniforms freely can improve a
club's image and at the same time promote events and activities at the club. Selling
such items can also raise funds while also promoting the club.
7. Paid Advertisement ensures a wide coverage through different forms of media e.g.
newspapers, radio, and television. The club management should carefully revise the
content communicated in the advertisement. However advertisement media is
commonly costly and thus it is always advisable to consider cheap and effective
forms of promotion first. Nonetheless, if media advertisement is the chosen path,
several considerations have to be carefully examined first. The following paragraphs
shed more light on the subject,
releases as these are standard way to provide information to the media. Basic consideration
in composing a press release is to write simply, state the facts, explain the concept and, show
how it is useful. Clubs also commonly establish good contact with popular radio stations to let
them know about the club, what the club is doing, and the types of events coming up.
Third Question:
Sales promotion is one of the integrated marketing communication tools; it is defined
as a direct inducement that offers an extra value or incentive for the product to the
sales force, distributers or the ultimate consumer with the primary objective of creating
an immediate sale. With respect to the two presented sales promotion offers below;
Offer 1: Dominos buy one large pizza and get the other free and Offer 2: Procter &
Gamble buy Ariel and get Downy for free. Please analyzing the two below offers, and
state how these two offers can affect the consumer Decision-Making process for the
promoted item.
Answer:
accordingly result in the biggest orders. If the consumers demand is relatively high on pizza,
offering pasta at a lower price might convince consumers to add it to their order. The opposite
is true if the demand is higher on the pasta. The fact that Dominos pizza offering is buy 1
pizza get 1 for free suggests that neither pizzas nor other products are experiencing high
demands at the time the promotion is made. The company is focusing its marketing efforts in
a concentric growth mode through promoting and attempting to increase the sales of its
main product i.e. pizzas.
This is different in the case of Ariel & Downy because the offering is based on promoting in
a horizontal diversification mode where a highly demanded product Ariel: a prize selling
washing detergent is being bundle priced with a related company product Downy: a fabric
softener. The main motive behind this pairing is most likely to promote Downy: increase
consumers awareness about this particular product and consecutively motivate purchases.
Dominos Pizza shall need special techniques to be able to bundle price its horizontally
diversified products. In the real world, a company cant continually change prices, but online,
it can be done very quickly and efficiently. On its online website, Dominos Pizza can track
what products the consumers searched for first when they entered the website (most likelt to
be pizzas). At checkout, the company can offer a reduced price for other kindred products
(e.g. the pasta or any other add-on) .The chances of bundle purchases can increase
significantly in this scenario.
With increased awareness about the products, the discounts (made through the bundle
pricing) start to act as a motivational incentive for purchase. Motivation is another key step in
the Purchasing Decision Making Process.
Fourth Question:
From your understanding of the personal selling process, describe how could you apply the
steps of the personal selling process on one of your products in your company, and explain
how you implement it from the first step " prospecting" till the last one " follow up' mentioning
as well the objections that your members are elaborating most of the time and how are you
going to overcome and deal with these objections till you make the close and the follow up.
Answer:
The answer to this question is verbalized in correspondence to the chronologic order of the
personal selling process steps. The definition and related activities of each step are first
explained. The steps are then applied to the services provided by a hypothetical company
working in the real-estate brokerage business. A brief description of objections that might be
faced in each step is then investigated with an action plan to overcome such expected
hindrances.
1. Pre-sale preparation:
The first step in personal selling deals with the selection, training and motivation of
salespersons. For a starter, the sales staff must be fully familiar with the product, the firm, the
market and the selling techniques. Sufficient information should be also provided on the
competitor's products and the degree of competition. Salespersons should be also acquainted
with the motives and behavior of potential buyers.
Related activities in the company: awareness campaigns and sales training for
salespersons+ in-house seminars about skills and qualifications required+ Rivals
assessment workshops
Objections: long durations of training sessions
Planned response: encourage e-learning and regular in-company exams to check
the progress of the sales staff.
2. Prospecting :
The prospecting step deals with the segmentation (logic categorization) of potential buyers on
the basis of the need for the product and possessing the financial ability to buy it. Potential
customers may be spotted and located through observation, enquiry and analysis of records
of existing customers. On the same track, social contacts, business associations and dealers
can be helpful in the segmentation and eventual targeting of potential buyers.
Related activities in the company: historical data collection+ developing enquiries
lists and purchase-tendency questionnaires+ contacting business associations and
data banks for legal purchase of data.
Objections: By the sales staff: prolonged times of data search and analysis (Big
Data Analytics).By the segmented potential buyers: privacy infringements
Planned response: Use specialized computer software for better categorization and
filtering of data+ outsource certain activities of the data hunting process+ Ensure
legal ways of data collection.
3. Approaching :
Prior to contacting the prospective customers, the sales team should be fully aware of their
contact details, needs, habits, spending capacity, motives, etc. This knowledge is essential in
selecting the adequate sales appeal. With such knowledge, the customer is approached in a
polite and dignified way. A salespersons approach is of critical importance as the first
impression is the last impression. The salesperson should ideally start his approach by
introducing himself and his product to the customer. A friendly smile always makes a
customer feel at home. When the salesperson is occupied with some other customer, he/she
must assure the new customer that he would be attended to at the soonest occasion.
4. Presentation :
At this point, the salesperson starts to present the product and highlight its features in brief.
The presentation should be continually updated and reformed in light of the customers
response. The main goal for the salesperson is to continuously hold the attention of the
potential buyer and create interest in the product.
5. Demonstration:
Demonstration is about maintaining customer's interest and arousing his desire. In this step,
the salesperson displays and demonstrate the product to the potential buyer. The utility and
distinctive qualities of the product are fully explained in order for the customer to realize the
need for the product to satisfy his wants. Salespersons are rigorously advised in this step not
be in a hurry to impress the customer and at the same time avoid controversy. Part of the
salesperson skills at this step is to suggest uses of the product very commonly through
creating an impulsive urge to possess the product by appealing to the customers human
instincts.
Related activities in the company: prepare site visits to demonstrate the product
(real-estate) + developing presentation content that is more detailed and appealing
to the exact wants (including the financial ability) of the potential buyer+ preparing
presentations and demonstration specifically for a customers family members who
might influence his/hers buying decision
Objections: By the sales staff: female salespersons in particular might object to site
visits while accompanying potential buyers to display the companys offerings+
salespersons refusing to slow things down with customers in order to give them
room to think the purchase over. Salespersons are always in a hurry to settle the
purchase and get paid their commission. By the potential buyers: buyers can be
actually not interested in this sale and are merely browsing for purchasing or
comparing the companys offerings to another company.
Planned response: prepare virtual (computer graphic and video) demonstrations for
customer in order to decrease load on sales staff + without any pressure or formal
obligations, customers at this point can be asked to fill in an application or a purchase
request through the company. This step adds formality to the whole process and
might deter customers from repudiation.
6. Handling objections:
A rule of thumb in the personal selling process is that a sale is not simply achieved by
creating interest and desire. Every individual customer shall strive to make the best bargain
for his money. Presentations and demonstrations -though useful in introducing and explaining
the product- can also adversely create doubts and questions in the buyers mind.
The sales staff should have the patience and skills to clear all doubts and objections without
entering into a controversy. Added to this, a salesperson should never lose his temper.
Popular means of motivating and clearing the doubts of a hesitant or reluctant buyer include
testimonials and money-back guarantee. This is because the customer must be convinced
that his money is safe from the beginning and that he is making the best use of his money by
purchasing the product from this particular company. This is why the salesperson should
prove the superiority of the product over the competitive products in order to handle any
costumers objection. Patience is a must with customers who ask too many queries and takes
time in arriving at any decision.
Related activities in the company: prepare highly effective and fair legal documents
to close the deal and receive the money in exchange for the transaction+ train staff
how to maintain customer loyalty for future transactions.
Objections: By the sales staff: lack of patience+ not being clear enough on how to
build and maintain customer loyalty for future transactions. By the potential buyers:
need to make final adjustments (most commonly in prices)
Planned response: be flexible to customers objections+ develop loyalty programs
and train the sales staff to ensure customer satisfaction
8. Post-sale follow-up :
Post-sale follow up is concerned with the activities performed to ensure that the customers
satisfaction with the purchased item as well as the firm. These activities generically include
installation, checking the smoothness of performance, maintenance and after-sales service.
Post-sale follow up can very well aid in maintaining customer loyalty and at the same time
preserve the good will of the company and enhance evaluate salesman's effectiveness.
Related activities in the company: develop a scheduled itinerary for the post-sales
activities to be carried out after the sale is closed+ assign responsibilities and
success criteria for post-sales services
Objections: By the sales staff: lack of knowledge and unwilling to take responsibility
regards post-sale activities. By the potential buyers: distaste due to poor post-sales
follow up
Planned response: explain the importance of aftersales activities to sales staff and
how this would surely increase third buying leads in the future+ design an incentive
program for salespersons based on aftersales follow-up+ rigorously apply the
prepared scheduled itinerary for the post sales activities+ get feed backs from
customers and act in their light.
Fifth Question
Design 4 advertisements for any product from your own choice using 4 different formatting
design styles with 4 different appeals.
Answer:
2-Format: circus
Appeal: Emotional: Social appeal