Professional Documents
Culture Documents
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Level 1, 398 Lonsdale Street, Melbourne, Victoria, 3000 Australia
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Contents
This unit describes the performance outcomes, skills and knowledge required to coordinate and
review the promotion of an organisation's products and services.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of
endorsement.
This unit applies to individuals with a broad knowledge of the promotion of products and
services specific to an organisation. They may have responsibility to provide guidance or to
delegate aspects of these tasks to others.
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Elements and Performance Criteria
ELEMENT PERFORMANCE CRITERIA
1. Plan promotional activities 1.1. Identify and assess promotional activities to ensure
compatibility with organisational requirements
1.2. Plan and schedule promotional activities according to the
marketing needs of the organisation
1.3. Determine overall promotional objectives in consultation
with designated individuals and groups
1.4. Ensure that time lines and costs for promotion of activities
are realistic and consistent with budget resources
1.5. Develop action plans to provide details of products and
services being promoted
2. Coordinate promotional 2.1. Ensure personnel and resources to support
activities promotional activities are identified and prepared to
facilitate the achievement of promotional goals
2.2. Identify and agree roles and responsibilities for delivery of
promotional services and allocate to relevant personnel
2.3. Establish and conduct relationships with targeted groups in
a manner which enhances the positive image of the
organisation
2.4. Use networks to assist in the implementation of promotional
activities
3. Review and report on 3.1. Analyse audience feedback and data to determine the
promotional activities impact of the promotional activity on the delivery of
products and services
3.2. Assess effectiveness of planning processes to identify
possible improvements in future activities
3.3. Collect feedback and provide to personnel and agencies
involved in promotional activity
ELEMENT PERFORMANCE CRITERIA
3.4. Analyse costs and time lines to evaluate the benefits
accruing from the promotional activities
3.5. Prepare conclusions and recommendations from verifiable
evidence and provide constructive advice on future
directions of promotional activities
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REQUIRED SKILLS AND KNOWLEDGE
This section describes the skills and knowledge required for this unit.
Required skills
• literacy skills to read a variety of texts; to prepare general information and papers; and to
write formal and informal letters according to target audience
• technology skills to select and use technology appropriate to a task
• problem-solving skills to manage contingencies in promotional activities
• numeracy skills to analyse data and to compare time lines and promotional costs against
budgets.
Required knowledge
• key provisions of relevant legislation from all levels of government that may affect
aspects of business operations, such as:
• anti-discrimination legislation
• ethical principles
• codes of practice
• privacy laws
• environmental issues
• occupational health and safety (OHS)
• planning processes for organising promotional activities organisational marketing plan
and associated budgets.
Making and increasing sales needs thought and strategy. You should understand your
market, product and customer base; know legal sales techniques and how to keep
customers through loyalty schemes, fair trading; and having payment, refund and
warranty options.
The basic rules of selling are always the same, whether you're dealing with customers in
person, by phone, business-to-business or in a retail environment. However it's
1
Sources: http://www.business.vic.gov.au/BUSVIC/STANDARD/PC_50351.html
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important to be aware of the legal obligations around over the phone and in person
sales outlined on this page.
When making a sale, it's important to remember to create AIDA (Attention, Interest,
Desire, Action):
• get the customer's attention
• stimulate the customer's interest
• create the desire to buy
• confirm the action to be taken
Sales should always be part of a full marketing plan. Visit the marketing section for more
detail on this.
Prospect lists
A prospect list is simply a record of people who are potential clients, including existing
clients.
It classifies clients as a prospect or suspect:
• suspects: anyone who might be a possible sales lead (referrals, enquiries from ads
or just cold calling) but haven't yet declared their interest in your products and/or
services
• prospects: a suspect you've spoken to who's interested in your product or service
A successful prospect list will show an increase in the number of entries as well as
the number and size of sales.
Prospect details
Your prospect list can contain details such as:
• name and address of prospect
• key decision makers' names and position names are they already
customers?
• expected dollar value of sales project (opportunity value)
• what contacts have been made so far? (opportunity cost)
• subsidiaries names and locations
• company's main suppliers
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The main decision maker isn't always the only person you need to convince, and the
authority to buy your product or service may be distributed through a number of
people.
There are at least three stages in a buying decision, including:
• the influencer - a key user of the product, perhaps a manager of a department
• the specifier - draws up the requirement, often led by the influencer
• a final decision maker - has the authority to agree or veto a deal and to sign the
cheque
It's generally best to aim as high up the chain as you can. If it's the managing director
who'll sign the cheque for your product, that's who you need to call. Make sure you
research online or call them directly to make sure you're talking to the right person.
Once you get through to the person you're targeting, you need to persuade them why
it's worth meeting you. Pick one key benefit of your product or service and tailor the
way you present it to fit the particular customer.
In a non-contact sale, you must provide the following details to the consumer:
• your name and business address and/or phone number
• the price and all fees and charges of the goods or service
• postal or delivery charges
• any cooling-off and cancellation rights the customer may have and how they can
exercise them
Telemarketing
Telemarketers must hang up immediately upon request and not call back for at least 30
days.
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Door-to-door sales
A contact sale takes place when you and your customer are together at a customer's
home, workplace, expo, trade fair or field day. Door-to-door sales are contact sales and
must comply with the
requirements of the Australian
Consumer Law
(ACL) for goods and services of
$50 or more. A contact sales
agreement must:
• be in writing and signed
by the consumer
• contain all the terms of
the agreement, including
the price and all fees and
charges
• contain your name and
business address
• include on the front page the statutory notice of the 10 day cooling-off period
from and including the day the customer has signed or received the agreement. It
should also state any details of additional rights to cancel the agreement is set out
in the information attached to the agreement
• include the statutory notice of the cancellation process required if the consumer
cancels the sale within the cooling-off period.
You must not engage in misleading, deceptive or unjust conduct in relation to the sale
and you must comply with the credit laws, if credit is going to be provided in
conjunction with the sale of goods or service. Never conduct door-to-door sales for the
sole purpose of selling credit, except by prior arrangement with the resident, as this is a
criminal offence.
If a consumer decides to cancel a contract during the 'cooling-off' period, notice must
be given in writing. You must then refund all monies paid under the agreement.
However, you're entitled to make a reasonable charge for any services rendered prior to
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the cancellation of the agreement or offer, or for any goods the consumer is unable to
return.
Fair Trading
Fair trading rules apply to businesses selling to other businesses and those selling to
consumers. It allows all businesses to be competitive and have a fair chance of
succeeding, while also protecting consumers.
The single total price includes any charges, taxes, fees, levies or duties you expect a
customer to pay. If the price or parts may vary you must also mention this, e.g. extra
costs for materials or postage.
The person you sent the goods to doesn't have to pay unless:
• they decide they want the goods you have sent
• they have wilfully lost or damaged the goods
You can get the goods back at your own expense within three months of the person
receiving them or one month after they notified you they had received unordered
goods, whichever is the earliest. If you don't take any action within that time, the person
becomes the legal owner of the goods unless they unreasonably deny you access to
reclaim the goods or they knew (or should have reasonably known) the goods were not
for them e.g.
they were sent to the wrong address
Delivery of goods
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It is an offence to accept payment for goods and services you are not able to supply
within a reasonable time, or for goods and services materially different from what was
agreed in the contract.
You are required to conspicuously display the cooling-off cancellation notice in the
contract, and are prohibited from requiring payment for services before the expiry of the
cooling-off period.
Unlawful discrimination is: treating someone unfairly in the above areas on the basis of
one or more of the following attributes age, disability, industrial activity, marital,
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parental or carer status, physical features, political beliefs or activity, pregnancy, race,
religious beliefs or activity, sex or sexual orientation and gender identity.
Sexual harassment is: behaviour of a sexual nature that is unwelcome, unsolicited and
unreciprocated. It occurs in circumstances where a reasonable person would have
anticipated the other person would be offended, humiliated or intimidated.
A person must not sexually harass a customer or client while providing or offering to
provide goods and services. Likewise, a customer or client must not sexually harass
anyone who is providing them with, or helping them select, goods and services.
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Product or Service Price2
It is important that you put the right price on your goods or services.
You should think through the following when choosing a price for your product or
service:
• find out through market research what your competitors are charging and how
much your customers are willing to pay for your product
• know how much it costs to offer and deliver your products, so that you know
whether you are making any money at the price you are selling
• if you'll offer discounts for cash (or additional costs for cheque or credit card)
• decide when to give a discount or increase the price
• how you'll market the price of your products and services so that they are
attractive to your customers e.g. are you targeting bargain hunters or customers
who want the best and are willing to pay for it
• how you communicate the value of your product
• whether you need to charge GST
Giving discounts
There are a number of ways to influence customers to buy more.
Discount pricing
Adjust a basic price to reward your customers
for certain responses such as early payment of
bills
2
Source: http://www.business.vic.gov.au/BUSVIC/STANDARD/PC_60732.html
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e.g. pays a bill earlier than 30 days they get a 2% discount off the bill.
Quantity discounts
Price reduction to buyers who buy large volumes e.g. buy 10 get one free.
Functional discounts
A price reduction offered by your business to trade members who perform certain
functions such as selling, storing and record keeping.
Seasonal discounts
Price reduction to customers who buy merchandise or services out of season e.g. mid-
week for restaurants, winter for surf shops allowances: reductions for customers who
give something in return e.g. trade-in of current car for a reduced price on a new car.
Segmented pricing
Price reduction to one part of your market e.g. students, senior citizens.
Product
You need to understand your customers' needs in developing your products and
services.
Before you put your product in the marketplace make sure you know the benefits you
are offering to your customers. Is there a need for your product or service and what
features will be valued by your customers? You should also have a plan on how you'll
keep your product updated.
Once you've thought about your actual product or service you need to consider its
branding and presentation.
Branding
A brand can be a name, symbol, design or any other feature unique to your business
which sets you apart from your competitors. A brand can be improved by doing the
following:
3
Source: http://www.business.vic.gov.au/BUSVIC/STANDARD/PC_60731.html
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• making sure your business has a reputation for excellent service, quality and
reliability
• being known for community involvement e.g. contributing to charities
• being easily recognised, understood and consistent
• keeping your customers informed and responding quickly to their needs
• being honest and fair
• your products and services are readily available to the customers all staff are
knowledgeable about your product/service
There's no point having a really recognisable name and symbol if people associate it
with poor service.
Place
Place refers to how the product or service gets to the customer. This includes the place
where the product/service can be bought as well as the distribution channel.
Location
Will you need premises of your own? Consider placing your product in other retail
businesses or outlets.
Delivery
Depending on how often you deliver and to where, you will need to think about the
different forms of transport.
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Service level agreements with your distributors/clients
Will you sell on a commission basis or offer replacements or repairs if something goes
wrong.
Display presentation
Try to place and present your products where they can get the maximum exposure in
window displays and shop floors.
Print advertising
Points to remember when advertising in
newspapers and magazines are:
• keep your message short and
simple
• select papers or magazines likely to
be read by your target customers
• ask to have your advertisement on
the right hand side as this is more
likely to be seen
• use colours or shades of
white/grey/black to frame
headings. If others are using colour,
stay with black and white as it is cheaper and you will stand out
• repetition is more effective than single advertising, check advertising costs to
make sure you can schedule more than one ad
• less is more - don't try and say too much
• don't forget to promote your web address
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Watch out! Under section 29 of the Fair Trading (Amendment) Act 2003, commercial
advertisements in newspapers have to include specific identification information. It
includes options to protect the privacy of traders as required.
The Act requires traders to include their full personal name, their company name or their
registered business name but have the option of including the street address of the
business, a business name registration number or a business licence number.
Radio
The most popular radio time slots are from 6am to 10am and 4pm to 7pm when people
are listening to the radio while driving to and from work or taking public transport.
Avoid overnight time slots unless your target market are night owls.
When planning radio communications consider approaching the radio stations located
in the areas relevant to your target customers or the stations research indicates would
most likely be listened to by your target audience (not just the ones you like).
Television
Television (TV) marketing can be a very effective way to launch your business, product or
service and increase sales, if you have the budget. If you have a small business, consider
Channel 31 or your regional TV station, as the cost may be within your budget. The cost
for TV advertising can vary and is based on the number of viewers and the length of
your commercial or advertisement.
Tip: to keep costs down consider getting a student to shoot and edit your TV ad, joint
advertising with similar businesses or submitting your product to a lifestyle program or
shopping channel.
Public relations
Public relations or publicity is messages sent to the media or general public to build a
good corporate image. The important thing is to have a newsworthy item to tell people
about.
You can make news by doing the following:
• conduct a poll or survey
• issue a report, analysis or prediction
• interview a celebrity in your community about an issue relating to your business
• host a contest/give an award
• stage or sponsor a community event
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• organise a trade promotion or tie in to someone else’s
Web-based marketing should follow the same rules as normal marketing except it
should keep any content even shorter. People's attention span when online is incredibly
short so if you can’t get your point across quickly you’re wasting your time.
Tip: To find out how to set up a website and what legal requirements you'll need to
meet when marketing online visit the online business section of Business Victoria (see
Related content). Before embarking on email campaigns make sure you understand
about the SPAM Act (see Related content).
You may choose to advertise a price which isn't the total price e.g. a price without GST,
payment by instalments or a menu with a 10% surcharge on public holidays. Under the
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Australian Consumer Law (ACL) this is known as 'component pricing' and this price
must always be accompanied by the single total price.
The single total price includes any charges, taxes, fees, levies or duties you expect a
customer to pay. If the price or parts may vary you must also mention this, e.g. extra
costs for materials or postage.
Personal selling
Personal selling is verbal or face-to-face communication with potential buyers of your
product or service with the intention of making a sale. The personal selling may focus
initially on developing a relationship with the potential buyer, but will always ultimately
end with an attempt to 'close the sale'.
Direct marketing
Direct marketing is targeting a person or a company by sending things such as fliers,
emails, postcards or sales presentation letters with the objective of generating new
business or raising the profile of an organisation or product.
4
Source: http://www.business.vic.gov.au/BUSVIC/STANDARD/PC_62854.html
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Watch out! You will require a 'permit to distribute handbills' from your local council if
you intend to display, hand out or distribute leaflets, notices, pamphlets, fliers or any
other form of advertising or promotional material in Victoria. For further information
contact your local council.
Direct marketing is very much oriented towards immediate response. Direct marketers
can tell you very quickly how successful (or unsuccessful) their promotion is, because
they have the responses to prove it.
So what is the most compelling tool that direct marketers use in order to gain that
response? It's the offer.
To have an impact you must cleverly target the offer to appeal to the intended audience.
It's not much use offering a free trial of a newly launched lawn mower to people who
live in high-rise apartments. You must design the offer in such a way that it creates
interest.
Here are examples of offers that direct marketers have found to be the most effective
over the years:
Payment offer
Offers such as 'bill me later' and interest free credit are both very powerful concepts that
regularly increase response substantially - which is why they are used so often.
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timeframe can give prospects a feeling of being hassled, while too long a period leads
to inaction and lack of response.
Discount offer
Discounts are popular and are most effective where the value of a product or service is
well known. Discounts are better expressed in money terms rather than a percentage,
i.e. 'save $50' is better than '25 percent off'.
However, with discounting there is definitely a downside. Discounting eats into profits
very directly and can adversely affect the image of a business. There is also the old
adage, 'live by price, die by price'. After all, your competitors can always discount
further. Once you become known as a discounter, many customers will only buy from
you when you offer discounts.
This process may seem backwards to some who would expect to make the media
decision first. That is, if an organization is sales-driven, it would first attempt to perform
number four above. However, a market-driven firm realizes that is must perform the
first three steps prior to media choice.
Traditionally, the role of promotion has been identified as to ‘inform, persuade, and
remind.’
While these stages are always necessary, often one or the other has taken place prior to
the creation of a promotion program. For example, most consumers in the U.S. culture
are aware of and understand the benefits of Coca-Cola and where to find the product,
so informational advertising may not be necessary (http://www.cocacola.com/).
However, CocaCola must continually work hard to keep its name in front of consumers
and remind them that the product is available and that it will provide the consumer with
certain benefits. “Reminder advertising” is often placed by market leaders to support
other promotional campaigns that are in progress. Thus, Coca-Cola is committed to
constant advertising, although most consumers are aware of the product in over two
hundred countries (see http://www.cocacola.com/). When you think of target markets,
realize that they are always changing. People age and change over time, therefore,
target markets do the same thing. So, new Coca-Cola ads while persuading and
reminding a portion of the target market, also continually inform a certain part of the
target market who due to age or culture are not aware of the product yet.
History shows that market leaders can quickly lose their competitive position if they
don’t constantly keep their name in front of their target market. This is particularly true
with today’s media saturation and intense competition. As we discussed in Chapter
Three, the target audience for consumer products is usually defined in terms of
demographic, psychographic, geographic, and behavioristic attributes. Once we have
clearly defined the target market, we create marketing programs to communication with
members of the target market.
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Description of benefits to be delivered to the target market
It is imperative to understand what benefits (not product features) the target market will
receive by buying our product or service and this description should be crafted in words
that communicate these benefits to members of the target market. Thus, the notion of
“empathy” with the target market becomes critical. If we don’t really understand our
customers well, it will show in our attempts to communicate with them. For example, if
our target market first seeks the minimization of financial risk in their purchase, we
might choose to provide a thirtyday money back guarantee. Whereas, if our target
market is more interested in minimizing technological risk in their purchase, we might
choose to decrease this perceived risk by providing a twelve-month ‘technology trade-
up program’ or adopting promotion comprised of user testimonials dealing with the
product.
Just as in planning, the word ‘strategy’ is used in several different ways in promotion
management. First, strategy can refer to an overall game plan or orientation to the
promotion program. For example, a company might discover through research that
their target customers seek reliability above all other attributes thus the organization
might adopt a strategy of ‘emphasis on reliability.’
On the other hand, an organization might adopt a ‘direct mail strategy’ if it finds that
direct mail would be the best way to reach its customers. Hence, use of the word
‘strategy’ has no guidelines and can confuse the issue. We recommend that when the
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reader uses the word strategy, the reader provide an explanation regarding how the
strategy would be implemented. This leaves no doubt regarding the word’s meaning.
Communication objectives can be driven by measures such as product awareness,
knowledge (of certain attributes or benefits) or preference. Each of these measures can
be used to assess how effective promotional efforts have been in attaining their
objectives.
Traditionally, we employ a promotion mix to effectively budget and distribute funds for
promotion. The promotion mix includes the following components:
When creating a promotion program we attempt to meld the four elements together in
a cogent way so that each element supports the other and provides the target audience
with a consistent message over time. This practice is call ‘integrated promotion
management’ or ‘integrated marketing communications.’
As discussed above, there are four steps to creating successful promotion programs:
Another of the questions in Marie’s study was ‘Why do you make purchases from
Marie’s Gift
Shop?’ One of the responses to this question on the survey was “I am familiar with the
Ruohonen family.” Over sixty percent responded affirmatively to this question
indicating that one of their main buying motives was to ‘support local businesses’ and
that the customer ‘enjoyed visiting with members of the Ruohonen family.’ Thus, most
customers were already familiar with Marie’s Gift Shop before buying from the shop.
Therefore, the three primary benefits customers were seeking were determined to be:
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After a meeting with a local marketing communications firm, these benefits were used
as a guide for creating a promotion strategy for Marie’s Gift Shop. Marie’s decided to
adopt this approach as a long-term strategy and committed to this strategy for a three
year period, thus, adoption of a promotion strategy should not usually be seen as short-
term.
Overview of Advertising
If you do an internet search on the word, ‘advertising’, you will find many different
references and categories presented there. Some researchers estimate that by the age
of eighteen the average person in the U.S. was viewed well over one million
advertisements and that figure is probably very low if we consider all commercial
messages to which we are exposed in the U.S. What are the implications of this
staggering statistic? First, most of us consider ourselves ‘experts’ in advertising because
we have seen so many ads. However, to be truly expert, one must understand and
develop the attribute of ‘empathy.’ Empathy is simply being able to understand another
person’s feelings are reactions to events in his or her environment. It is easy to feel
sympathy for someone who is only twenty-one years old but dying of cancer. However,
it is much more challenging to understand how that person must feel. This example
demonstrates how fundamentally unimportant most advertising is to the
average person. However, advertising is sometimes very important to us as individuals.
Why? First, we often use advertising as a way to identify right and wrong behaviors:
both fundamental and minor behaviors in society. For example, some ads give us cues
about ‘what is cool’ and what is ‘not cool’ in everyday behaviors. You might want to
access http://www.nickatnight.com/ and click on the index and go to the ‘retromercials’
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section found in ‘Tvland’ (http://www.tvland.com/TVL.jhtml) to see commercials that for
the most part are over thirty years old. Can you identify how ‘cool behavior’ and ‘uncool
behavior’ have changed in the last few decades?
The tobacco industry continues to advertise heavily through alternative means that
avoid regulations of the Federal Trade Commission (FTC), thus easily avoiding the law,
while continuing to advertise a product proven hazardous the health of its users. For
example, note how the motion picture industry continues to accept money to feature its
products in films. Review the following article found at:
http://www.ftc.gov/os/comments/tobaccocomments2/siegelmichaelmdmph.htm
Also, the reader might want to review the website of a company that has as its core
business the ‘placement’ of products in various media vehicles. ( review:
http://www.productivity.net/Company Profile.htm
Personal selling is the worst nightmare most of my marketing students have about a
career in marketing. Why? I think they see personal selling as a low status, low paid
career full of disappointments and lack of personal freedom. In one way the students
are correct, almost any career in personal selling is going have many disappointments if
one defines a customer not saying ‘yes’ instantly as a disappointment. However, a
career in personal selling can yield a most rewarding professional life if a person can
develop a strong self-esteem and truly believes in what s/he is selling. As Peter Drucker,
a leading writer in marketing and management, has said: “(true)…. marketing involves
almost no selling.” Mr. Drucker refers to the fact that if a marketer does his or her job
and understands and delivers a product or service solution that the customer is truly
seeking, it only remains for the marketer to explain how this solution will provide the
benefits sought, and the customer is then willing and eager to buy. Why does this
sound so unrealistic to many of us? Because, as consumers, we rarely experience a
solution that is so well researched or a seller who values the customer this much. As
mentioned earlier in the text, most companies in the U.S. are sales driven and not
market driven, so that their primary concern is not customer satisfaction but selling the
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customer what the company has available to sell. Therefore, it is no surprise that many
consumers are dissatisfied with the product and services they buy. However, as
competition forces organizations to be more customer-oriented, the remaining firms
that are solely salesdriven will eventually disappear from the economic landscape.
Traditionally in personal selling, organizations follow a process from the time preceding
customer contact to the time following the sale, including some follow-up activity. In
many organizational markets, this follow-up stage is called ‘post-sales support’ and is
one of the most effective methods for keeping customers. Investing in retaining current
customers is much more cost-efficient than ignoring current customers in search of new
customers. This approach, used historically with many consumer products is called
‘churning’ and is adopted by sales driven firms. New and used car sales are examples of
product categories that used the churning method for decades, although, due in some
cases to the efforts of new car manufacturers, this practice is becoming less popular.
New car manufacturers are recognizing that their long-term success depends on
building and nurturing a diverse customer base. This requires on-going customer
research and an honest commitment to customers in all production and services
systems that are responsible for delivering customer satisfaction. Today this
commitment is still rare, but in the future it will be essential. Check out the website for
Saturn automobiles (http://www.saturnbp.com/index.jhtml) to observe the efforts put
forth by this company to be truly customer-oriented. For example, check out the “My
Saturn” section on the Saturn website.
Many firms view the personal selling process as a ‘sales funnel,’ that is, the process
begins with many different possible customers, and narrows over time to more specific
customers who are first identified as ‘qualified prospects.’ A qualified prospect can be
defined as an individual, family, or organization that is likely to be seeking the benefits
we seek to provide and has the ability to obtain those benefits by entering into a
relationship with our organization. Thus, locating and identifying qualified prospects
becomes a primary function of the marketing or sales effort. However, we must
remember that if an organization is truly marketing oriented, this process is made much
easier because the customer profile created early on in product or service development
has already given clear definition to our target customers.
After identifying qualified prospects, it remains to contact these prospects and consult
with them about our chosen solution to their product needs in terms of the benefits
they are seeking which we aspire to provide. Thus, while the ‘sales funnel’ begins with a
profile of our target customer and the benefits that s/he wants, the number of prospects
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decreases as we proceed through the sales process. As we gather more information
about what customers we can better satisfy, we continually use this information as
feedback to more precisely align our solution with the benefits sought by our target
market. The ‘delivery system’ of the organization must strive to maintain flexibility
throughout the personal selling process and be capable of adjusting the product
solution to meet needs of customers as the organization gains better resolution about
what those needs are exactly.
Most traditional models of the selling process have the process culminate in a
‘presentation’ and then proceed to a ‘feedback’ stage that occurs after a presentation
and purchase. While this approach to modeling the process if helpful, it denies the
required dynamic nature of customer relationships and often is too inflexible to be of
maximum use. That is, as we learn more about exactly what benefits our customers are
seeking, we must continually adjust our product or service offering to better provide
those benefits. For example, a response to feedback from customers in a restaurant that
‘this place it too smoky,’ must be forthcoming very quickly if the restaurant is to be
successful. While this response is not as easy with tangible products, especially high
technology products, organizations marketing such goods must always aspire to solicit
this kind of feedback and respond to it as quickly as possible.
For more information on personal selling and sales management consult the two topics
at the following website:
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other theme (for example, see
http://search.yahoo.com/search?p=international+trade+shows&n=25 ).
You might also want to check out this website that operates in the United Kingdom
(http://www.isp.org.uk/welcome.html), it is an industry sponsored web presence.
Overview of Publicity
Publicity differs from advertising in that the advertiser does not pay for the space in the
medium or publication with publicity. That is, a new feature is placed because it
ostensibly will be of interest to the readers of the publication. Check out this website
for an example of a firm that does publicity exclusively: http://www.publicity.com/mri/.
There are also public service announcements that often attain similar objectives. The
challenge with publicity is preparing an article that is newsworthy and of interest to the
readers of a publication. Obtain a copy of a local newspaper, and see if you can find an
article included in the newspaper that you believe was published without a charge to
the advertiser based on its interest to readers.
For example, the Gazette in Colorado Springs, Colorado (http://www.gazette.com /)
publishes an article on a new car every week. This article is usually published without a
charge to the manufacturer of the car because the editors of the Gazette believe that
readers will find the article newsworthy and of special interest. The same may be true of
articles containing restaurant and movie reviews.
The main requirement of obtaining publicity in most media is that the article placed
should be newsworthy and credible and of special interest to viewers or readers.
After different parts of the organization agree upon what image the organization seeks
to attain, an integrated marketing communications (MARCOM) program can be
established and implemented. All components of the promotion mix then have some
underlying concept to reinforce. For example, in the example of Marie’s Gift Shop
described above, Marie wanted to make sure that all communications with customers,
employees, and suppliers used the same logo and letterhead. Marie also realized that
an emphasis on personal service, the availability of unique products, and the consistency
of local ownership would be critical to maintain her chosen organizational image. We
will describe Marie’s chosen MARCOM program at length later on.
A Note on Positioning
As we have indicated, it is essential to know who the target customer is and what
benefits s/he is seeking. For example, there is usually a temptation to ignore this
requirement and attempt to ‘be all things to all people.’ For example, recently a group
of MBA students at a university decided to enter into a business venture together.
Several students in the group had managed to save some funds through various means.
Two students had recently left military service and two others had received a ‘departure
bonus’ from a high technology firm. The students agreed that they wanted to open a
restaurant together. When asked who their target market would be the students
responded “Well, everyone who eats.” Obviously, this definition of a target market is
too broad and provides insufficient guidance about the “Five W’s and H” (who, what,
when, where, why, and how) of the whole concept of the business. The students needed
to more clearly define the concept of the restaurant and precisely who they were
expecting to serve in the business. For example, the needs of those who are searching
for ‘a fast lunch’ will differ significantly from those who aspire to ‘relax and talk’ over
their lunch. It would be difficult to position a restaurant to simultaneously meet all of
these needs well.
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Promotional Activity Feedback
Flexibility stands between an organisation growing its share of the job market and
remaining profitable, or falling behind.
Surveys
Definition
5
Source:
http://toolboxes.flexiblelearning.net.au/demosites/series9/903/content/resources/10_promoting_employment_s
ervices/05_feedback_activity/page_006.htm
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The collection of information from a common group through interviews or the
application of questionnaires to a representative sample of that group.
Use
Surveys are usually used when opinions are being sought about a particular product or
service, either an existing one or a newly proposed one. For example, you may distribute
a survey to businesses within a three kilometre radius of your organisation's office, to
assess the level of market awareness concerning your organisation's brand and services
and the percentage of businesses that outsource their recruitment.
Questionnaires
Definition
Questionnaires are the most common marketing evaluation (feedback) method. They
are used for structured interviews, written surveys, email and Internet surveys to obtain
information concerning the consumer's (eg employer or job seeker's) level of
satisfaction with particular products and/or services.
Use
Questionnaires can be used to collect information on a target group's reaction to a
product or service or to assess internal procedures, client management skills, post-
placement support and promotional activities, to name a few.
Feedback forms
Definition
Feedback forms invite specific comments on a specific aspect of a product or service.
Use
Feedback forms can be used to evaluate presentations and information and training
sessions, etc.
Informal feedback
Definition
Some of the most valuable feedback concerning products and/or service delivery is
gathered during casual conversation.
Use
Every conversation presents an opportunity to invite feedback, especially from
employers. Asking key questions about specific aspects of a presentation, products or
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services during an informal conversation can reveal a wealth of information to help you
enhance your service delivery.
• Is it easy for the target recipients (eg employer, job seeker, external referral
agency staff) to complete?
• Is it self-explanatory or will the recipient need assistance in completing it?
• By law, will you be able to keep and use the information collected (eg potential
employers' names and contact details)?
• Are the questions of a professional standing that reflect well on the organisation?
• Will the questions return the data needed to evaluate the promotion?
A report on your promotional activity does not have to be a long or detailed document.
However, the information in your report should answer the following key questions:
Finally, your report should end with your conclusions about the promotional activity and
any recommendations about this activity, or promotional activities that should follow on
from it.
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ASSESSMENT
BSBMKG413 – Promote products and services
Student Name
Student ID
Unit commenced (Date)
Unit Completed (Date)
I hereby certify that I have undertaken these
assessment tasks utilising my own work
without assistance from any other parties. I
have not knowingly plagiarised any work in
completing these assessment activities.
Student Signature
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ACTIVITY 1
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ACTIVITY
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ACTIVITY
1. Obtain a magazine advertisement for which you think the target market is clearly
defined and comment on what you believe are the characteristics of that target
market.
2. Obtain three magazine ads, one that primarily is designed to ‘inform,’ one that
tries to ‘persuade,’ and one that ‘reminds.’
3. Use the keyword ‘Professional selling’ to search the internet. Write a one-page
essay on your findings.
4. Agree or disagree with the following statement and explain your answer using
materials found in this resource. “If everyone is your customer, then no one is
your customer.”
Read the following article and summarise the main points made by Pauline
Douglas6:
6
Source: http://www.splash.net.au/articles/sales.html
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ACTIVITY
Sales Promotion
Article by Pauline Douglas
The science of promoting products and services in
Australia is called Sales Promotion.
If you are the same as most Australian consumers, you probably have a favourite
food or clothing store and your cupboards are filled from week to week with the
same consumer products that you are familiar with and trust.
How about the various services you partake in such as your hair dresser or your
doctor? Odds are that you also have your preferred practitioner services, and are
probably not too comfortable to change these kind of services on a regular basis.
Sales Promotion is very much a social science, that takes into consideration that
humans are fundamentally creatures of habit, and will take a new product or service
into their lives based upon the following principals:
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habits by developing the perception, familiarity and trust around a new product or
service. The objective is the gaining of new and repeat customers.
Consumers are introduced to new products and services in one, or all of the
following ways (in order of importance and impact) ...
Word of mouth promotion (reputation) is by far the most powerful form of sales
promotion - particularly if introduced by a person that the consumer knows and
trusts, such as a friend or family member. Sales Representatives and Sales
Assistants also play a key role to the verbal promotion of products and services.
Point of Sale (POS) Promotion is the next most powerful way in which consumers
will be brought face to face with a new product or service. The challenge is to gain
the interest and trust of the consumer through carefully thought out packaging,
display and pricing.
Many food, beverage and cosmetic industries will combine the power of word of
mouth and POS promotion, to incorporate a "Sampling Promotion" to enhance the
effectiveness of Sales.
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ACTIVITY 5
Pick any one product or service you are familiar with in a business you are familiar with
and develop a promotional strategy for it. You must include:
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Assessment Mapping
Assessment Activities/Criteria
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Activity 2 1.1, 1.2, 1.3, 1.4, - key provisions of relevant - literacy skills to read - designing and
1.5 legislation from all levels of a variety of texts; to delivering
government that may affect prepare general promotional
aspects of business information and presentations -
operations, such as: papers; and to write evaluating
• anti-discrimination promotional impacts
formal and informal
legislation - presenting and
letters according to
• ethical principles advocating
target audience -
• codes of practice promotional
technology skills to strategies within the
• privacy laws
select and use organisation -
• environmental issues
technology assessing and
• occupational health and
appropriate to a task reporting on
safety (OHS)
- problem-solving customer
- planning processes
skills to manage satisfaction
for organising promotional
activities contingencies in
- organisational promotional activities
marketing plan and - numeracy skills to
associated budgets. analyse data and to
compare time lines
and promotional
costs against budgets.
Activity 3 1.1 - key provisions of relevant - literacy skills to read - designing and
2.2 legislation from all levels of a variety of texts; to delivering promotional
Assessment Activities/Criteria
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government that may affect prepare general presentations
aspects of business information and - evaluating
operations, such as: papers; and to write promotional impacts
• anti-discrimination formal and informal - presenting and
legislation letters according to advocating
• ethical principles promotional
target audience -
• codes of practice strategies within the
technology skills to
• privacy laws organisation -
select and use
assessing and
• environmental issues technology reporting on
• occupational health and appropriate to a task customer
safety (OHS)
- problem-solving satisfaction
- planning processes
skills to manage
for organising promotional
contingencies in
activities
promotional activities
- organisational
- numeracy skills to
marketing plan and
analyse data and to
associated budgets.
compare time lines
and promotional
costs against budgets.
Activity 4 2.1, 2.2, 2.3, 2.4 - key provisions of relevant - literacy skills to read - designing and
legislation from all levels of a variety of texts; to delivering
government that may affect prepare general promotional
aspects of business information and presentations -
operations, such as: papers; and to write evaluating
• anti-discrimination promotional impacts
formal and informal
legislation - presenting and
letters according to
• ethical principles advocating
target audience - promotional
• codes of practice
technology skills to strategies within the
• privacy laws
select and use organisation -
• environmental issues
technology assessing and
• occupational health and
appropriate to a task reporting on
safety (OHS)
- problem-solving customer
- planning processes
skills to manage satisfaction
for organising promotional
activities contingencies in
- organisational promotional activities
marketing plan and - numeracy skills to
associated budgets. analyse data and to
compare time lines
and promotional
costs against
budgets.
Activity 5 1.1, 1.2, 1.3, 1.4, - key provisions of relevant - literacy skills to read - designing and
1.5 legislation from all levels of a variety of texts; to delivering
2.1, 2.2, 2.3, 2.4 government that may affect prepare general promotional
3.1, 3.2, 3.3, 3.4, aspects of business information and presentations -
3.5 operations, such as: papers; and to write evaluating
• anti-discrimination promotional impacts
formal and informal
legislation - presenting and
letters according to
• ethical principles advocating
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Assessment Activities/Criteria
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BSBMKG413 – Promote products and services
Student Name
Comments
Assessor (Name)
Assessor Signature
Date
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