Deck 15: Public Relations, Sales Promotion, and Personal Selling

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Question
Sally Burke works for Hi-Tech Electronics. Her responsibilities include selecting items to advertise in her company's Sunday newspaper FSIs. One hot item is a 50-inch flat-panel plasma TV. The list price is $4,999, but her manager tells her to advertise it at $3,999, since customers can apply for a $1,000 mail-in rebate. The advertised price has attracted many people to buy the TV; however, Sally has heard several complaints from customers who found the rebate process unusually complex and were denied a rebate because the manufacturer claimed they hadn't provided the required information. She would prefer to advertise the "real" list price, knowing that customers are not guaranteed to receive a rebate.
Visit a local electronics store-or Web site-and find a product being sold with a mail-in rebate offer. Are the rebate instructions clear? Would you take the time to complete the process?
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Question
Discuss the most common forms of consumer sales promotion. Consumer forms of sales promotion include coupons and rebates, premiums, loyalty marketing programs, contests and sweepstakes, sampling, and point-of-purchase displays. Coupons are certificates entitling consumers to an immediate price reduction when they purchase a product or service. Coupons are a particularly good way to encourage product trial and brand switching. Similar to coupons, rebates provide purchasers with a price reduction, although it is not immediate. To receive a rebate, consumers generally must mail in a rebate form with a proof of purchase. Premiums offer an extra item or incentive to the consumer for buying a product or service. Premiums reinforce the consumer's purchase decision, increase consumption, and persuade nonusers to switch brands. Rewarding loyal customers is the basis of loyalty marketing programs. Loyalty programs are extremely effective at building long-term, mutually beneficial relationships between a company and its key customers. Contests and sweepstakes are generally designed to create interest, often to encourage brand switching. Because consumers perceive risk in trying new products, sampling is an effective method for gaining new customers. Finally, point-of-purchase displays set up at the retailer's location build traffic, advertise the product, and induce impulse buying.
3.1 Discuss how different forms of sales promotion can erode or build brand loyalty. If a company's objective is to enhance customer loyalty to its products, what sales promotion techniques will be most appropriate?
3.2 What forms of consumer sales promotion might induce impulse purchases? What forms of sales promotion are more effective at persuading consumers to switch brands?
3.3 Consider the different consumer sales promotion tools. Give an example of how each type of tool has influenced you to purchase-or purchase more of-a product or service.
3.4 Not everyone thinks supermarket shopper cards are a bargain. Go to www.nocards.org and read several pages. Is the information on the site compelling? What do you think of shopper cards? You may want to use the Internet to research shopper cards in more detail before forming an opinion.
3.5 Contests and sweepstakes are very common in the entertainment industry. Radio stations have contests almost weekly (some daily); local television morning shows quiz viewers on trivia; even movies offer sweepstakes in conjunction with film previews and premiere nights. Think of a television or radio program unlikely to have contests or sweepstakes (things like Cops, The View, Scooby Doo, or your local classical music radio station, for example). Once you have chosen your program, design a contest or sweepstake to promote the show or the channel on which it airs. List the objectives, and describe the rationale behind each part of your promotion.
3.6 How can uPromote.com help you with your sales promotions efforts (visit www.upromote.com )? What kind of marketing budget would you need to take advantage of its services? What kind of company would be best served by uPromote.com?
Question
At age 71, Ron "Ronco" Popeil is an avid inventor, tireless entrepreneur, clever marketer, and master salesman all in one. He just happens to be an American icon, too. The godfather of the infomercial, Popeil even has his famous Veg-O-Matic on display in the Smithsonian Institution as an American cultural artifact. His other famous products include the food dehydrator, the Ronco spray gun, and the Popeil Pocket Fisherman.
As a teenager, Popeil helped his father sell his kitchen gadgets at local Woolworth's and later, in the 1950s, on the Chicago fair circuit. That is probably why his famous shtick, which included such memorable catchphrases as "But wait, there's more," "Priced so low," and "Operators are standing by," always seemed like a blend between sincere eccentric inventor and excitable carnival barker. The combination suited him well and brought him enough financial success that he could afford to take his act to television. In the 1960s, he incorporated Ronco, and its name became synonymous with gadgets like the smokeless ashtray and Mr. Microphone.
Regardless of the product he is selling or the catchy pitch phrases he invents on the fly to sell them, Popeil is always sincere. "The easiest thing to do in the world is to sell a product I believe in," he has said. "If I spent two years creating a product, conceiving it, tinkering with it, I can get up and sell it. Who can sell it better than the guy who invented it?" Len Green, a professor in entrepreneurship at Babson College, says, "Ron is one of a kind. He is different from the rest because he not only invents, he sells. Most entrepreneurs come up with a concept and then give it to others to manufacture or sell. He's his own best salesman."
Though Popeil has suffered his fair share of flops, like spray-on hair and a brief bankruptcy in 1987, he has always managed to bounce back. Returning from bankruptcy, he relaunched the popular food dehydrator in 1990, and 8 years later he designed and sold his most successful product ever, the Showtime rotisserie BBQ. Having sold over seven million units for four installments of $39.95 each, the rotisserie alone has grossed over $1 billion in sales. During the taping of the infomercial for that product, the live studio audience was treated to yet another of Popeil's catchphrases that has become part of the fabric of American speech. "Just set it and forget it!" is now used to sell all kinds of non-Popeil products from VCRs and digital video recorders to ovens and coffeemaker.
Through the medium of television, Popeil was able to reach tens of millions of people. With an innate ability to invent or improve on everyday household products, his live product demonstrations captured the imaginations and dollars of generations of consumers. In 1976, he was even the subject of what was probably Dan Aykroyd's most famous bit on Saturday Night Live. Parodying Popeil, Aykroyd hawked "Rovco's Super Bass-O-Matic '76," which was capable of turning a bass or any other "small aquatic creature" into liquid without any "scaling, cutting or gutting."
Having recently sold Ronco to an investment group for over $55 million and accumulated a personal net worth of over $100 million, Popeil has had the last laugh. He will continue to serve as a product developer, pitchman, and consultant for the new company and already promises an even bigger hit than the Showtime rotisserie. Having identified a market of over 20 million Americans who fry turkeys every year, Popeil says he has a new fryer on the way that will make it possible to safely fry a 20-pound turkey in 70 minutes-indoors. Given that he has created over 150 products and invented personal selling via the mass marketing medium, there is little reason to doubt him.
As Barbara Gross, professor of marketing at California State University, Northridge, states, "His success speaks for itself; probably that has more to do with his personality. He's comfortable and sincere. He comes across like he really believes in it. When you hear him talk, you never feel like he's lying to you.
Do you think it is likely that America will ever see someone like Ron Popeil in the future? Why or why not?
Question
List the most common forms of trade sales promotion. Manufacturers use many of the same sales promotion tools used in consumer promotions, such as sales contests, premiums, and point-of-purchase displays. In addition, manufacturers and channel intermediaries use several unique promotional strategies: trade allowances, push money, training programs, free merchandise, store demonstrations, and meetings, conventions, and trade shows.
4.1 How does trade sales promotion differ from consumer sales promotion? How is it the same?
4.2 What are the main forms of trade sales promotion? Which type might be most enticing to a grocery store manager? To a buyer for a major electronics chain?
4.3 Form a team of three to five students. As marketing managers, you are in charge of selling Dixie cups. Design a consumer sales promotion plan and trade sales promotion plan for your product. Incorporate at least three different promotion tools into each plan. Share your results with the other teams in the class.
Question
Steve Van Doren, son of Vans founder, is the self-proclaimed "ambassador of fun" at Vans. Because the company doesn't want to discount its products or lower its prices, it has to find other ways to create value for consumers. So, to keep the brand energized, the company is constantly developing promotions that can only be described as fun, an important element for attracting trendsetting customers. The core of Vans's strategy revolves around unique and authentic contests and giveaways. The company relies on word-of-mouth advertising and credible personal selling. In this video segment, Vans marketers explain how they use Web sites, contests, giveaways, and athletic events to attract and keep customers.
How does Vans use giveaways and contests to market its products? Why do these strategies work so well for Vans?
Question
Describe personal selling. Personal selling is direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other in a purchase situation. Broadly speaking, all businesspeople use personal selling to promote themselves and their ideas. Personal selling offers several advantages over other forms of promotion. Personal selling allows salespeople to thoroughly explain and demonstrate a product. Salespeople have the flexibility to tailor a sales proposal to the needs and preferences of individual customers. Personal selling is more efficient than other forms of promotion because salespeople target qualified prospects and avoid wasting efforts on unlikely buyers. Personal selling affords greater managerial control over promotion costs. Finally, personal selling is the most effective method of closing a sale and producing satisfied customers.
5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?
Question
At age 71, Ron "Ronco" Popeil is an avid inventor, tireless entrepreneur, clever marketer, and master salesman all in one. He just happens to be an American icon, too. The godfather of the infomercial, Popeil even has his famous Veg-O-Matic on display in the Smithsonian Institution as an American cultural artifact. His other famous products include the food dehydrator, the Ronco spray gun, and the Popeil Pocket Fisherman.
As a teenager, Popeil helped his father sell his kitchen gadgets at local Woolworth's and later, in the 1950s, on the Chicago fair circuit. That is probably why his famous shtick, which included such memorable catchphrases as "But wait, there's more," "Priced so low," and "Operators are standing by," always seemed like a blend between sincere eccentric inventor and excitable carnival barker. The combination suited him well and brought him enough financial success that he could afford to take his act to television. In the 1960s, he incorporated Ronco, and its name became synonymous with gadgets like the smokeless ashtray and Mr. Microphone.
Regardless of the product he is selling or the catchy pitch phrases he invents on the fly to sell them, Popeil is always sincere. "The easiest thing to do in the world is to sell a product I believe in," he has said. "If I spent two years creating a product, conceiving it, tinkering with it, I can get up and sell it. Who can sell it better than the guy who invented it?" Len Green, a professor in entrepreneurship at Babson College, says, "Ron is one of a kind. He is different from the rest because he not only invents, he sells. Most entrepreneurs come up with a concept and then give it to others to manufacture or sell. He's his own best salesman."
Though Popeil has suffered his fair share of flops, like spray-on hair and a brief bankruptcy in 1987, he has always managed to bounce back. Returning from bankruptcy, he relaunched the popular food dehydrator in 1990, and 8 years later he designed and sold his most successful product ever, the Showtime rotisserie BBQ. Having sold over seven million units for four installments of $39.95 each, the rotisserie alone has grossed over $1 billion in sales. During the taping of the infomercial for that product, the live studio audience was treated to yet another of Popeil's catchphrases that has become part of the fabric of American speech. "Just set it and forget it!" is now used to sell all kinds of non-Popeil products from VCRs and digital video recorders to ovens and coffeemaker.
Through the medium of television, Popeil was able to reach tens of millions of people. With an innate ability to invent or improve on everyday household products, his live product demonstrations captured the imaginations and dollars of generations of consumers. In 1976, he was even the subject of what was probably Dan Aykroyd's most famous bit on Saturday Night Live. Parodying Popeil, Aykroyd hawked "Rovco's Super Bass-O-Matic '76," which was capable of turning a bass or any other "small aquatic creature" into liquid without any "scaling, cutting or gutting."
Having recently sold Ronco to an investment group for over $55 million and accumulated a personal net worth of over $100 million, Popeil has had the last laugh. He will continue to serve as a product developer, pitchman, and consultant for the new company and already promises an even bigger hit than the Showtime rotisserie. Having identified a market of over 20 million Americans who fry turkeys every year, Popeil says he has a new fryer on the way that will make it possible to safely fry a 20-pound turkey in 70 minutes-indoors. Given that he has created over 150 products and invented personal selling via the mass marketing medium, there is little reason to doubt him.
As Barbara Gross, professor of marketing at California State University, Northridge, states, "His success speaks for itself; probably that has more to do with his personality. He's comfortable and sincere. He comes across like he really believes in it. When you hear him talk, you never feel like he's lying to you.
What does Ron Popeil bring to personal selling that makes him so effective?
Question
Discuss the key differences between relationship selling and traditional selling. Relationship selling is the practice of building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. Traditional selling, on the other hand, is transaction focused. That is, the salesperson is most concerned with making onetime sales and moving on to the next prospect. Salespeople practicing relationship selling spend more time understanding a prospect's needs and developing solutions to meet those needs.
6.1 What are the key differences between relationship selling and traditional methods of selling? What types of products or services do you think would be conducive to relationship selling?
6.2 Based on the key differences between traditional and relationship selling, which type of sales approach would you use as a salesperson? Do the different approaches require different personal strengths or attributes?
Question
Have you ever waited forever to get a fast-food hamburger? Have you even been left to languish in a dressing room by a salesperson who left for a coffee break? If so, you already know that sales and customer service are integral parts of marketing. While you are working on this chapter, keep a journal of your personal sales and/or customer service experiences with local merchants. Don't ignore the details. Even such things as how crowded a store or restaurant is when you visit may affect your perceptions of the service you received.
Activities
1. Keep your journal for a week, recording all sales and service transactions, if possible, on the day they occur.
2. At the end of the week, examine your journal, and pick the most noteworthy entry. Provide the basic information about the transaction: company where it occurred, type of transaction (purchase, return, complaint, etc.), type of good or service involved, and so forth.
3. Once you have the outlined the situation, evaluate the experience. Use the information about selling in this chapter as support for your evaluation. For example, did the salesperson seem to treat the situation as an individual, discrete transaction, or did he or she seem interested in building a relationship?
4. Finally, make recommendations as to how the company can improve its sales and/or service. Suggestions should be logical and achievable (meaning you have to consider the cost of implementing your suggestion).
Question
List the steps in the selling process. The selling process is composed of seven basic steps: (1) generating leads, (2) qualifying leads, (3) approaching the customer and probing needs, (4) developing and proposing solutions, (5) handling objections, (6) closing the sale, and (7) following up.
7.1 You are a new salesperson for a well-known medical software company, and one of your clients is a large group of physicians. You have just arranged an initial meeting with the office manager. Develop a list of questions you might ask at this meeting to uncover the group's specific needs.
7.2 What does sales follow-up entail? Why is it an essential step in the selling process, particularly from the perspective of relationship selling? How does it relate to cognitive dissonance?
7.3 How many ways can zapdata ( www.zapdata.com ) benefit salespeople? Which of its services would be most useful to marketing managers? Other businesspeople?
7.4 Consider each step in the selling process. Which steps could be conducted through technology (Internet, webinars, etc.)? Which are most important to handle "face-to-face"?
Question
Sally Burke works for Hi-Tech Electronics. Her responsibilities include selecting items to advertise in her company's Sunday newspaper FSIs. One hot item is a 50-inch flat-panel plasma TV. The list price is $4,999, but her manager tells her to advertise it at $3,999, since customers can apply for a $1,000 mail-in rebate. The advertised price has attracted many people to buy the TV; however, Sally has heard several complaints from customers who found the rebate process unusually complex and were denied a rebate because the manufacturer claimed they hadn't provided the required information. She would prefer to advertise the "real" list price, knowing that customers are not guaranteed to receive a rebate.
Is it unethical to advertise products at their post-rebate price in order to increase sales? Why or why not? What is another sales promotion method Hi-Tech Electronics could use to persuade customers to buy their plasma TV at the store?
Question
For the next stage of the strategic planning process you'll focus on your chosen company's sales promotion and personal selling decisions. Use the following exercises to guide you through the final elements of Part 4 of your strategic marketing plan:
1. Evaluate or create printed materials for you chosen company (such as data sheets, brochures, stationery, or rate cards). Does the literature sufficiently answer questions? Provide enough information for further contact? Effectively promote product features and customer service? Note a differential or competitive advantage?
2. Think about ways your promotions could turn a first-time customer or dealhunter into a repeat, loyal customer. Which sales promotion tools should your company use? What trade shows could your firm attend? Search the Eventline database for trade shows appropriate to your firm. Order media kits and explore the feasibility and costs of attending those trade shows. For a listing of tradeshows, go to www.exhibitornet.com and look for the directory of shows, or the Trade Show News Network at www.tsnn.com.
3. What other sales promotion tools could your firm use? What are the costs? What is the impact of using these methods on pricing?
4. Will you need a sales force? Identify and justify the best type (internal or external) and structure (product, customer, geographic, etc.) for your firm's sales force. You may find that in e-marketing, a sales force is more of a customer service and customer relations management tool. True selling activities may be limited to selling and buying online media space and links. In many circumstances, forming strategic partnerships and distribution deals have replaced traditional sales in the Internet space. What types of alliances and partnerships will you pursue? Will you work with other online firms, offline firms, or both?
Question
Discuss the role of public relations in the promotional mix. Public relations is a vital part of a firm's promotional mix. A company fosters good publicity to enhance its image and promote its products. Popular public relations tools include new-product publicity, product placements, consumer education, sponsorships, and Web sites. An equally important aspect of public relations is managing unfavorable publicity to minimize damage to a firm's image.
1.1 How can advertising and publicity work together? Give an example.
1.2 As the new public relations director for a sportswear company, you have been asked to set public relations objectives for a new line of athletic shoes to be introduced to the teen market. Draft a memo outlining the objectives you propose for the shoe's introduction and your reasons for them.
1.3 Review the newspapers in your area for one week. Try to review several and varied newspapers (local, campus, cultural, countercultural, etc.) During this period, cut out all the event advertisements that list sponsors. Once you have your collection, spread them out so you can see them all at once. Identify any patterns or connections between the type of event and its sponsors. Identify companies that sponsor more than one event. What do sponsors tell you about target markets? After analyzing the ads, write a brief paragraph summarizing your discoveries.
Question
Steve Van Doren, son of Vans founder, is the self-proclaimed "ambassador of fun" at Vans. Because the company doesn't want to discount its products or lower its prices, it has to find other ways to create value for consumers. So, to keep the brand energized, the company is constantly developing promotions that can only be described as fun, an important element for attracting trendsetting customers. The core of Vans's strategy revolves around unique and authentic contests and giveaways. The company relies on word-of-mouth advertising and credible personal selling. In this video segment, Vans marketers explain how they use Web sites, contests, giveaways, and athletic events to attract and keep customers.
How does Vans approach recruiting and training its sales force?
Question
At age 71, Ron "Ronco" Popeil is an avid inventor, tireless entrepreneur, clever marketer, and master salesman all in one. He just happens to be an American icon, too. The godfather of the infomercial, Popeil even has his famous Veg-O-Matic on display in the Smithsonian Institution as an American cultural artifact. His other famous products include the food dehydrator, the Ronco spray gun, and the Popeil Pocket Fisherman.
As a teenager, Popeil helped his father sell his kitchen gadgets at local Woolworth's and later, in the 1950s, on the Chicago fair circuit. That is probably why his famous shtick, which included such memorable catchphrases as "But wait, there's more," "Priced so low," and "Operators are standing by," always seemed like a blend between sincere eccentric inventor and excitable carnival barker. The combination suited him well and brought him enough financial success that he could afford to take his act to television. In the 1960s, he incorporated Ronco, and its name became synonymous with gadgets like the smokeless ashtray and Mr. Microphone.
Regardless of the product he is selling or the catchy pitch phrases he invents on the fly to sell them, Popeil is always sincere. "The easiest thing to do in the world is to sell a product I believe in," he has said. "If I spent two years creating a product, conceiving it, tinkering with it, I can get up and sell it. Who can sell it better than the guy who invented it?" Len Green, a professor in entrepreneurship at Babson College, says, "Ron is one of a kind. He is different from the rest because he not only invents, he sells. Most entrepreneurs come up with a concept and then give it to others to manufacture or sell. He's his own best salesman."
Though Popeil has suffered his fair share of flops, like spray-on hair and a brief bankruptcy in 1987, he has always managed to bounce back. Returning from bankruptcy, he relaunched the popular food dehydrator in 1990, and 8 years later he designed and sold his most successful product ever, the Showtime rotisserie BBQ. Having sold over seven million units for four installments of $39.95 each, the rotisserie alone has grossed over $1 billion in sales. During the taping of the infomercial for that product, the live studio audience was treated to yet another of Popeil's catchphrases that has become part of the fabric of American speech. "Just set it and forget it!" is now used to sell all kinds of non-Popeil products from VCRs and digital video recorders to ovens and coffeemaker.
Through the medium of television, Popeil was able to reach tens of millions of people. With an innate ability to invent or improve on everyday household products, his live product demonstrations captured the imaginations and dollars of generations of consumers. In 1976, he was even the subject of what was probably Dan Aykroyd's most famous bit on Saturday Night Live. Parodying Popeil, Aykroyd hawked "Rovco's Super Bass-O-Matic '76," which was capable of turning a bass or any other "small aquatic creature" into liquid without any "scaling, cutting or gutting."
Having recently sold Ronco to an investment group for over $55 million and accumulated a personal net worth of over $100 million, Popeil has had the last laugh. He will continue to serve as a product developer, pitchman, and consultant for the new company and already promises an even bigger hit than the Showtime rotisserie. Having identified a market of over 20 million Americans who fry turkeys every year, Popeil says he has a new fryer on the way that will make it possible to safely fry a 20-pound turkey in 70 minutes-indoors. Given that he has created over 150 products and invented personal selling via the mass marketing medium, there is little reason to doubt him.
As Barbara Gross, professor of marketing at California State University, Northridge, states, "His success speaks for itself; probably that has more to do with his personality. He's comfortable and sincere. He comes across like he really believes in it. When you hear him talk, you never feel like he's lying to you.
What trade sales promotion tools does he use? Why does he use sales promotion tools when he is selling direct to consumers?
Question
Sally Burke works for Hi-Tech Electronics. Her responsibilities include selecting items to advertise in her company's Sunday newspaper FSIs. One hot item is a 50-inch flat-panel plasma TV. The list price is $4,999, but her manager tells her to advertise it at $3,999, since customers can apply for a $1,000 mail-in rebate. The advertised price has attracted many people to buy the TV; however, Sally has heard several complaints from customers who found the rebate process unusually complex and were denied a rebate because the manufacturer claimed they hadn't provided the required information. She would prefer to advertise the "real" list price, knowing that customers are not guaranteed to receive a rebate.
Rebate programs are commonly used by electronics manufacturers because the rebates arouse consumers' interest in buying products; yet only half of purchasers ultimately claim their rebates. Is a rebate program itself unethical if the manufacturer knows consumers are unlikely to receive their money?
Question
Define and state the objectives of sales promotion. Sales promotion consists of those marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value. The main objectives of sales promotion are to increase trial purchases, consumer inventories, and repeat purchases. Sales promotion is also used to encourage brand switching and to build brand loyalty. Sales promotion supports advertising activities.
2.1 What is the primary factor that determines sales promotion objectives? Name some different types of sales promotion techniques, and explain the type of customer they are intended to influence.
2.2 You have recently been assigned the task of developing promotional techniques to introduce your company's new product, a Cajun chicken sandwich. Advertising spending is limited, so the introduction will include only some low-budget sales promotion techniques. Write a sales promotion plan that will increase awareness of your new sandwich and allow your customer base to try it risk-free.
Question
Steve Van Doren, son of Vans founder, is the self-proclaimed "ambassador of fun" at Vans. Because the company doesn't want to discount its products or lower its prices, it has to find other ways to create value for consumers. So, to keep the brand energized, the company is constantly developing promotions that can only be described as fun, an important element for attracting trendsetting customers. The core of Vans's strategy revolves around unique and authentic contests and giveaways. The company relies on word-of-mouth advertising and credible personal selling. In this video segment, Vans marketers explain how they use Web sites, contests, giveaways, and athletic events to attract and keep customers.
How have trade shows changed in recent years? What is Vans's main goal at trade shows today?
Question
At age 71, Ron "Ronco" Popeil is an avid inventor, tireless entrepreneur, clever marketer, and master salesman all in one. He just happens to be an American icon, too. The godfather of the infomercial, Popeil even has his famous Veg-O-Matic on display in the Smithsonian Institution as an American cultural artifact. His other famous products include the food dehydrator, the Ronco spray gun, and the Popeil Pocket Fisherman.
As a teenager, Popeil helped his father sell his kitchen gadgets at local Woolworth's and later, in the 1950s, on the Chicago fair circuit. That is probably why his famous shtick, which included such memorable catchphrases as "But wait, there's more," "Priced so low," and "Operators are standing by," always seemed like a blend between sincere eccentric inventor and excitable carnival barker. The combination suited him well and brought him enough financial success that he could afford to take his act to television. In the 1960s, he incorporated Ronco, and its name became synonymous with gadgets like the smokeless ashtray and Mr. Microphone.
Regardless of the product he is selling or the catchy pitch phrases he invents on the fly to sell them, Popeil is always sincere. "The easiest thing to do in the world is to sell a product I believe in," he has said. "If I spent two years creating a product, conceiving it, tinkering with it, I can get up and sell it. Who can sell it better than the guy who invented it?" Len Green, a professor in entrepreneurship at Babson College, says, "Ron is one of a kind. He is different from the rest because he not only invents, he sells. Most entrepreneurs come up with a concept and then give it to others to manufacture or sell. He's his own best salesman."
Though Popeil has suffered his fair share of flops, like spray-on hair and a brief bankruptcy in 1987, he has always managed to bounce back. Returning from bankruptcy, he relaunched the popular food dehydrator in 1990, and 8 years later he designed and sold his most successful product ever, the Showtime rotisserie BBQ. Having sold over seven million units for four installments of $39.95 each, the rotisserie alone has grossed over $1 billion in sales. During the taping of the infomercial for that product, the live studio audience was treated to yet another of Popeil's catchphrases that has become part of the fabric of American speech. "Just set it and forget it!" is now used to sell all kinds of non-Popeil products from VCRs and digital video recorders to ovens and coffeemaker.
Through the medium of television, Popeil was able to reach tens of millions of people. With an innate ability to invent or improve on everyday household products, his live product demonstrations captured the imaginations and dollars of generations of consumers. In 1976, he was even the subject of what was probably Dan Aykroyd's most famous bit on Saturday Night Live. Parodying Popeil, Aykroyd hawked "Rovco's Super Bass-O-Matic '76," which was capable of turning a bass or any other "small aquatic creature" into liquid without any "scaling, cutting or gutting."
Having recently sold Ronco to an investment group for over $55 million and accumulated a personal net worth of over $100 million, Popeil has had the last laugh. He will continue to serve as a product developer, pitchman, and consultant for the new company and already promises an even bigger hit than the Showtime rotisserie. Having identified a market of over 20 million Americans who fry turkeys every year, Popeil says he has a new fryer on the way that will make it possible to safely fry a 20-pound turkey in 70 minutes-indoors. Given that he has created over 150 products and invented personal selling via the mass marketing medium, there is little reason to doubt him.
As Barbara Gross, professor of marketing at California State University, Northridge, states, "His success speaks for itself; probably that has more to do with his personality. He's comfortable and sincere. He comes across like he really believes in it. When you hear him talk, you never feel like he's lying to you.
Explain how Popeil's selling tactics allow him to achieve the desired objectives of sales promotions.
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Deck 15: Public Relations, Sales Promotion, and Personal Selling
1
Sally Burke works for Hi-Tech Electronics. Her responsibilities include selecting items to advertise in her company's Sunday newspaper FSIs. One hot item is a 50-inch flat-panel plasma TV. The list price is $4,999, but her manager tells her to advertise it at $3,999, since customers can apply for a $1,000 mail-in rebate. The advertised price has attracted many people to buy the TV; however, Sally has heard several complaints from customers who found the rebate process unusually complex and were denied a rebate because the manufacturer claimed they hadn't provided the required information. She would prefer to advertise the "real" list price, knowing that customers are not guaranteed to receive a rebate.
Visit a local electronics store-or Web site-and find a product being sold with a mail-in rebate offer. Are the rebate instructions clear? Would you take the time to complete the process?
Activity Based
Locate an in-store or online rebate offer and review the terms. Determine if you would follow through in obtaining the rebate if you were to purchase the product. Note the strengths and weaknesses of the rebate process for the product you find.
2
Discuss the most common forms of consumer sales promotion. Consumer forms of sales promotion include coupons and rebates, premiums, loyalty marketing programs, contests and sweepstakes, sampling, and point-of-purchase displays. Coupons are certificates entitling consumers to an immediate price reduction when they purchase a product or service. Coupons are a particularly good way to encourage product trial and brand switching. Similar to coupons, rebates provide purchasers with a price reduction, although it is not immediate. To receive a rebate, consumers generally must mail in a rebate form with a proof of purchase. Premiums offer an extra item or incentive to the consumer for buying a product or service. Premiums reinforce the consumer's purchase decision, increase consumption, and persuade nonusers to switch brands. Rewarding loyal customers is the basis of loyalty marketing programs. Loyalty programs are extremely effective at building long-term, mutually beneficial relationships between a company and its key customers. Contests and sweepstakes are generally designed to create interest, often to encourage brand switching. Because consumers perceive risk in trying new products, sampling is an effective method for gaining new customers. Finally, point-of-purchase displays set up at the retailer's location build traffic, advertise the product, and induce impulse buying.
3.1 Discuss how different forms of sales promotion can erode or build brand loyalty. If a company's objective is to enhance customer loyalty to its products, what sales promotion techniques will be most appropriate?
3.2 What forms of consumer sales promotion might induce impulse purchases? What forms of sales promotion are more effective at persuading consumers to switch brands?
3.3 Consider the different consumer sales promotion tools. Give an example of how each type of tool has influenced you to purchase-or purchase more of-a product or service.
3.4 Not everyone thinks supermarket shopper cards are a bargain. Go to www.nocards.org and read several pages. Is the information on the site compelling? What do you think of shopper cards? You may want to use the Internet to research shopper cards in more detail before forming an opinion.
3.5 Contests and sweepstakes are very common in the entertainment industry. Radio stations have contests almost weekly (some daily); local television morning shows quiz viewers on trivia; even movies offer sweepstakes in conjunction with film previews and premiere nights. Think of a television or radio program unlikely to have contests or sweepstakes (things like Cops, The View, Scooby Doo, or your local classical music radio station, for example). Once you have chosen your program, design a contest or sweepstake to promote the show or the channel on which it airs. List the objectives, and describe the rationale behind each part of your promotion.
3.6 How can uPromote.com help you with your sales promotions efforts (visit www.upromote.com )? What kind of marketing budget would you need to take advantage of its services? What kind of company would be best served by uPromote.com?
not answer
3
At age 71, Ron "Ronco" Popeil is an avid inventor, tireless entrepreneur, clever marketer, and master salesman all in one. He just happens to be an American icon, too. The godfather of the infomercial, Popeil even has his famous Veg-O-Matic on display in the Smithsonian Institution as an American cultural artifact. His other famous products include the food dehydrator, the Ronco spray gun, and the Popeil Pocket Fisherman.
As a teenager, Popeil helped his father sell his kitchen gadgets at local Woolworth's and later, in the 1950s, on the Chicago fair circuit. That is probably why his famous shtick, which included such memorable catchphrases as "But wait, there's more," "Priced so low," and "Operators are standing by," always seemed like a blend between sincere eccentric inventor and excitable carnival barker. The combination suited him well and brought him enough financial success that he could afford to take his act to television. In the 1960s, he incorporated Ronco, and its name became synonymous with gadgets like the smokeless ashtray and Mr. Microphone.
Regardless of the product he is selling or the catchy pitch phrases he invents on the fly to sell them, Popeil is always sincere. "The easiest thing to do in the world is to sell a product I believe in," he has said. "If I spent two years creating a product, conceiving it, tinkering with it, I can get up and sell it. Who can sell it better than the guy who invented it?" Len Green, a professor in entrepreneurship at Babson College, says, "Ron is one of a kind. He is different from the rest because he not only invents, he sells. Most entrepreneurs come up with a concept and then give it to others to manufacture or sell. He's his own best salesman."
Though Popeil has suffered his fair share of flops, like spray-on hair and a brief bankruptcy in 1987, he has always managed to bounce back. Returning from bankruptcy, he relaunched the popular food dehydrator in 1990, and 8 years later he designed and sold his most successful product ever, the Showtime rotisserie BBQ. Having sold over seven million units for four installments of $39.95 each, the rotisserie alone has grossed over $1 billion in sales. During the taping of the infomercial for that product, the live studio audience was treated to yet another of Popeil's catchphrases that has become part of the fabric of American speech. "Just set it and forget it!" is now used to sell all kinds of non-Popeil products from VCRs and digital video recorders to ovens and coffeemaker.
Through the medium of television, Popeil was able to reach tens of millions of people. With an innate ability to invent or improve on everyday household products, his live product demonstrations captured the imaginations and dollars of generations of consumers. In 1976, he was even the subject of what was probably Dan Aykroyd's most famous bit on Saturday Night Live. Parodying Popeil, Aykroyd hawked "Rovco's Super Bass-O-Matic '76," which was capable of turning a bass or any other "small aquatic creature" into liquid without any "scaling, cutting or gutting."
Having recently sold Ronco to an investment group for over $55 million and accumulated a personal net worth of over $100 million, Popeil has had the last laugh. He will continue to serve as a product developer, pitchman, and consultant for the new company and already promises an even bigger hit than the Showtime rotisserie. Having identified a market of over 20 million Americans who fry turkeys every year, Popeil says he has a new fryer on the way that will make it possible to safely fry a 20-pound turkey in 70 minutes-indoors. Given that he has created over 150 products and invented personal selling via the mass marketing medium, there is little reason to doubt him.
As Barbara Gross, professor of marketing at California State University, Northridge, states, "His success speaks for itself; probably that has more to do with his personality. He's comfortable and sincere. He comes across like he really believes in it. When you hear him talk, you never feel like he's lying to you.
Do you think it is likely that America will ever see someone like Ron Popeil in the future? Why or why not?
Mr. RP, pleasant personality, and genuine sales appeal made his products genuine and won him wide recognition and sales. His sales style and approach have transcended sales and promotional strategies to become part of popular culture. Because of this occurrence, it is not likely that there will ever be another quite likes him in the future. With so many competitors within various product segments, it will be difficult for a single salesperson to enjoy the kind of notoriety and success as Popeil has done in the past. Additionally, sales promotion strategies for many products do not follow the infomercial and demonstration routes as in the past. With television viewership, dwindling, other mediums are being used to market and advertise products with increasing frequency.
4
List the most common forms of trade sales promotion. Manufacturers use many of the same sales promotion tools used in consumer promotions, such as sales contests, premiums, and point-of-purchase displays. In addition, manufacturers and channel intermediaries use several unique promotional strategies: trade allowances, push money, training programs, free merchandise, store demonstrations, and meetings, conventions, and trade shows.
4.1 How does trade sales promotion differ from consumer sales promotion? How is it the same?
4.2 What are the main forms of trade sales promotion? Which type might be most enticing to a grocery store manager? To a buyer for a major electronics chain?
4.3 Form a team of three to five students. As marketing managers, you are in charge of selling Dixie cups. Design a consumer sales promotion plan and trade sales promotion plan for your product. Incorporate at least three different promotion tools into each plan. Share your results with the other teams in the class.
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5
Steve Van Doren, son of Vans founder, is the self-proclaimed "ambassador of fun" at Vans. Because the company doesn't want to discount its products or lower its prices, it has to find other ways to create value for consumers. So, to keep the brand energized, the company is constantly developing promotions that can only be described as fun, an important element for attracting trendsetting customers. The core of Vans's strategy revolves around unique and authentic contests and giveaways. The company relies on word-of-mouth advertising and credible personal selling. In this video segment, Vans marketers explain how they use Web sites, contests, giveaways, and athletic events to attract and keep customers.
How does Vans use giveaways and contests to market its products? Why do these strategies work so well for Vans?
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6
Describe personal selling. Personal selling is direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other in a purchase situation. Broadly speaking, all businesspeople use personal selling to promote themselves and their ideas. Personal selling offers several advantages over other forms of promotion. Personal selling allows salespeople to thoroughly explain and demonstrate a product. Salespeople have the flexibility to tailor a sales proposal to the needs and preferences of individual customers. Personal selling is more efficient than other forms of promotion because salespeople target qualified prospects and avoid wasting efforts on unlikely buyers. Personal selling affords greater managerial control over promotion costs. Finally, personal selling is the most effective method of closing a sale and producing satisfied customers.
5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?
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7
At age 71, Ron "Ronco" Popeil is an avid inventor, tireless entrepreneur, clever marketer, and master salesman all in one. He just happens to be an American icon, too. The godfather of the infomercial, Popeil even has his famous Veg-O-Matic on display in the Smithsonian Institution as an American cultural artifact. His other famous products include the food dehydrator, the Ronco spray gun, and the Popeil Pocket Fisherman.
As a teenager, Popeil helped his father sell his kitchen gadgets at local Woolworth's and later, in the 1950s, on the Chicago fair circuit. That is probably why his famous shtick, which included such memorable catchphrases as "But wait, there's more," "Priced so low," and "Operators are standing by," always seemed like a blend between sincere eccentric inventor and excitable carnival barker. The combination suited him well and brought him enough financial success that he could afford to take his act to television. In the 1960s, he incorporated Ronco, and its name became synonymous with gadgets like the smokeless ashtray and Mr. Microphone.
Regardless of the product he is selling or the catchy pitch phrases he invents on the fly to sell them, Popeil is always sincere. "The easiest thing to do in the world is to sell a product I believe in," he has said. "If I spent two years creating a product, conceiving it, tinkering with it, I can get up and sell it. Who can sell it better than the guy who invented it?" Len Green, a professor in entrepreneurship at Babson College, says, "Ron is one of a kind. He is different from the rest because he not only invents, he sells. Most entrepreneurs come up with a concept and then give it to others to manufacture or sell. He's his own best salesman."
Though Popeil has suffered his fair share of flops, like spray-on hair and a brief bankruptcy in 1987, he has always managed to bounce back. Returning from bankruptcy, he relaunched the popular food dehydrator in 1990, and 8 years later he designed and sold his most successful product ever, the Showtime rotisserie BBQ. Having sold over seven million units for four installments of $39.95 each, the rotisserie alone has grossed over $1 billion in sales. During the taping of the infomercial for that product, the live studio audience was treated to yet another of Popeil's catchphrases that has become part of the fabric of American speech. "Just set it and forget it!" is now used to sell all kinds of non-Popeil products from VCRs and digital video recorders to ovens and coffeemaker.
Through the medium of television, Popeil was able to reach tens of millions of people. With an innate ability to invent or improve on everyday household products, his live product demonstrations captured the imaginations and dollars of generations of consumers. In 1976, he was even the subject of what was probably Dan Aykroyd's most famous bit on Saturday Night Live. Parodying Popeil, Aykroyd hawked "Rovco's Super Bass-O-Matic '76," which was capable of turning a bass or any other "small aquatic creature" into liquid without any "scaling, cutting or gutting."
Having recently sold Ronco to an investment group for over $55 million and accumulated a personal net worth of over $100 million, Popeil has had the last laugh. He will continue to serve as a product developer, pitchman, and consultant for the new company and already promises an even bigger hit than the Showtime rotisserie. Having identified a market of over 20 million Americans who fry turkeys every year, Popeil says he has a new fryer on the way that will make it possible to safely fry a 20-pound turkey in 70 minutes-indoors. Given that he has created over 150 products and invented personal selling via the mass marketing medium, there is little reason to doubt him.
As Barbara Gross, professor of marketing at California State University, Northridge, states, "His success speaks for itself; probably that has more to do with his personality. He's comfortable and sincere. He comes across like he really believes in it. When you hear him talk, you never feel like he's lying to you.
What does Ron Popeil bring to personal selling that makes him so effective?
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8
Discuss the key differences between relationship selling and traditional selling. Relationship selling is the practice of building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. Traditional selling, on the other hand, is transaction focused. That is, the salesperson is most concerned with making onetime sales and moving on to the next prospect. Salespeople practicing relationship selling spend more time understanding a prospect's needs and developing solutions to meet those needs.
6.1 What are the key differences between relationship selling and traditional methods of selling? What types of products or services do you think would be conducive to relationship selling?
6.2 Based on the key differences between traditional and relationship selling, which type of sales approach would you use as a salesperson? Do the different approaches require different personal strengths or attributes?
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9
Have you ever waited forever to get a fast-food hamburger? Have you even been left to languish in a dressing room by a salesperson who left for a coffee break? If so, you already know that sales and customer service are integral parts of marketing. While you are working on this chapter, keep a journal of your personal sales and/or customer service experiences with local merchants. Don't ignore the details. Even such things as how crowded a store or restaurant is when you visit may affect your perceptions of the service you received.
Activities
1. Keep your journal for a week, recording all sales and service transactions, if possible, on the day they occur.
2. At the end of the week, examine your journal, and pick the most noteworthy entry. Provide the basic information about the transaction: company where it occurred, type of transaction (purchase, return, complaint, etc.), type of good or service involved, and so forth.
3. Once you have the outlined the situation, evaluate the experience. Use the information about selling in this chapter as support for your evaluation. For example, did the salesperson seem to treat the situation as an individual, discrete transaction, or did he or she seem interested in building a relationship?
4. Finally, make recommendations as to how the company can improve its sales and/or service. Suggestions should be logical and achievable (meaning you have to consider the cost of implementing your suggestion).
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10
List the steps in the selling process. The selling process is composed of seven basic steps: (1) generating leads, (2) qualifying leads, (3) approaching the customer and probing needs, (4) developing and proposing solutions, (5) handling objections, (6) closing the sale, and (7) following up.
7.1 You are a new salesperson for a well-known medical software company, and one of your clients is a large group of physicians. You have just arranged an initial meeting with the office manager. Develop a list of questions you might ask at this meeting to uncover the group's specific needs.
7.2 What does sales follow-up entail? Why is it an essential step in the selling process, particularly from the perspective of relationship selling? How does it relate to cognitive dissonance?
7.3 How many ways can zapdata ( www.zapdata.com ) benefit salespeople? Which of its services would be most useful to marketing managers? Other businesspeople?
7.4 Consider each step in the selling process. Which steps could be conducted through technology (Internet, webinars, etc.)? Which are most important to handle "face-to-face"?
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11
Sally Burke works for Hi-Tech Electronics. Her responsibilities include selecting items to advertise in her company's Sunday newspaper FSIs. One hot item is a 50-inch flat-panel plasma TV. The list price is $4,999, but her manager tells her to advertise it at $3,999, since customers can apply for a $1,000 mail-in rebate. The advertised price has attracted many people to buy the TV; however, Sally has heard several complaints from customers who found the rebate process unusually complex and were denied a rebate because the manufacturer claimed they hadn't provided the required information. She would prefer to advertise the "real" list price, knowing that customers are not guaranteed to receive a rebate.
Is it unethical to advertise products at their post-rebate price in order to increase sales? Why or why not? What is another sales promotion method Hi-Tech Electronics could use to persuade customers to buy their plasma TV at the store?
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12
For the next stage of the strategic planning process you'll focus on your chosen company's sales promotion and personal selling decisions. Use the following exercises to guide you through the final elements of Part 4 of your strategic marketing plan:
1. Evaluate or create printed materials for you chosen company (such as data sheets, brochures, stationery, or rate cards). Does the literature sufficiently answer questions? Provide enough information for further contact? Effectively promote product features and customer service? Note a differential or competitive advantage?
2. Think about ways your promotions could turn a first-time customer or dealhunter into a repeat, loyal customer. Which sales promotion tools should your company use? What trade shows could your firm attend? Search the Eventline database for trade shows appropriate to your firm. Order media kits and explore the feasibility and costs of attending those trade shows. For a listing of tradeshows, go to www.exhibitornet.com and look for the directory of shows, or the Trade Show News Network at www.tsnn.com.
3. What other sales promotion tools could your firm use? What are the costs? What is the impact of using these methods on pricing?
4. Will you need a sales force? Identify and justify the best type (internal or external) and structure (product, customer, geographic, etc.) for your firm's sales force. You may find that in e-marketing, a sales force is more of a customer service and customer relations management tool. True selling activities may be limited to selling and buying online media space and links. In many circumstances, forming strategic partnerships and distribution deals have replaced traditional sales in the Internet space. What types of alliances and partnerships will you pursue? Will you work with other online firms, offline firms, or both?
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13
Discuss the role of public relations in the promotional mix. Public relations is a vital part of a firm's promotional mix. A company fosters good publicity to enhance its image and promote its products. Popular public relations tools include new-product publicity, product placements, consumer education, sponsorships, and Web sites. An equally important aspect of public relations is managing unfavorable publicity to minimize damage to a firm's image.
1.1 How can advertising and publicity work together? Give an example.
1.2 As the new public relations director for a sportswear company, you have been asked to set public relations objectives for a new line of athletic shoes to be introduced to the teen market. Draft a memo outlining the objectives you propose for the shoe's introduction and your reasons for them.
1.3 Review the newspapers in your area for one week. Try to review several and varied newspapers (local, campus, cultural, countercultural, etc.) During this period, cut out all the event advertisements that list sponsors. Once you have your collection, spread them out so you can see them all at once. Identify any patterns or connections between the type of event and its sponsors. Identify companies that sponsor more than one event. What do sponsors tell you about target markets? After analyzing the ads, write a brief paragraph summarizing your discoveries.
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14
Steve Van Doren, son of Vans founder, is the self-proclaimed "ambassador of fun" at Vans. Because the company doesn't want to discount its products or lower its prices, it has to find other ways to create value for consumers. So, to keep the brand energized, the company is constantly developing promotions that can only be described as fun, an important element for attracting trendsetting customers. The core of Vans's strategy revolves around unique and authentic contests and giveaways. The company relies on word-of-mouth advertising and credible personal selling. In this video segment, Vans marketers explain how they use Web sites, contests, giveaways, and athletic events to attract and keep customers.
How does Vans approach recruiting and training its sales force?
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15
At age 71, Ron "Ronco" Popeil is an avid inventor, tireless entrepreneur, clever marketer, and master salesman all in one. He just happens to be an American icon, too. The godfather of the infomercial, Popeil even has his famous Veg-O-Matic on display in the Smithsonian Institution as an American cultural artifact. His other famous products include the food dehydrator, the Ronco spray gun, and the Popeil Pocket Fisherman.
As a teenager, Popeil helped his father sell his kitchen gadgets at local Woolworth's and later, in the 1950s, on the Chicago fair circuit. That is probably why his famous shtick, which included such memorable catchphrases as "But wait, there's more," "Priced so low," and "Operators are standing by," always seemed like a blend between sincere eccentric inventor and excitable carnival barker. The combination suited him well and brought him enough financial success that he could afford to take his act to television. In the 1960s, he incorporated Ronco, and its name became synonymous with gadgets like the smokeless ashtray and Mr. Microphone.
Regardless of the product he is selling or the catchy pitch phrases he invents on the fly to sell them, Popeil is always sincere. "The easiest thing to do in the world is to sell a product I believe in," he has said. "If I spent two years creating a product, conceiving it, tinkering with it, I can get up and sell it. Who can sell it better than the guy who invented it?" Len Green, a professor in entrepreneurship at Babson College, says, "Ron is one of a kind. He is different from the rest because he not only invents, he sells. Most entrepreneurs come up with a concept and then give it to others to manufacture or sell. He's his own best salesman."
Though Popeil has suffered his fair share of flops, like spray-on hair and a brief bankruptcy in 1987, he has always managed to bounce back. Returning from bankruptcy, he relaunched the popular food dehydrator in 1990, and 8 years later he designed and sold his most successful product ever, the Showtime rotisserie BBQ. Having sold over seven million units for four installments of $39.95 each, the rotisserie alone has grossed over $1 billion in sales. During the taping of the infomercial for that product, the live studio audience was treated to yet another of Popeil's catchphrases that has become part of the fabric of American speech. "Just set it and forget it!" is now used to sell all kinds of non-Popeil products from VCRs and digital video recorders to ovens and coffeemaker.
Through the medium of television, Popeil was able to reach tens of millions of people. With an innate ability to invent or improve on everyday household products, his live product demonstrations captured the imaginations and dollars of generations of consumers. In 1976, he was even the subject of what was probably Dan Aykroyd's most famous bit on Saturday Night Live. Parodying Popeil, Aykroyd hawked "Rovco's Super Bass-O-Matic '76," which was capable of turning a bass or any other "small aquatic creature" into liquid without any "scaling, cutting or gutting."
Having recently sold Ronco to an investment group for over $55 million and accumulated a personal net worth of over $100 million, Popeil has had the last laugh. He will continue to serve as a product developer, pitchman, and consultant for the new company and already promises an even bigger hit than the Showtime rotisserie. Having identified a market of over 20 million Americans who fry turkeys every year, Popeil says he has a new fryer on the way that will make it possible to safely fry a 20-pound turkey in 70 minutes-indoors. Given that he has created over 150 products and invented personal selling via the mass marketing medium, there is little reason to doubt him.
As Barbara Gross, professor of marketing at California State University, Northridge, states, "His success speaks for itself; probably that has more to do with his personality. He's comfortable and sincere. He comes across like he really believes in it. When you hear him talk, you never feel like he's lying to you.
What trade sales promotion tools does he use? Why does he use sales promotion tools when he is selling direct to consumers?
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16
Sally Burke works for Hi-Tech Electronics. Her responsibilities include selecting items to advertise in her company's Sunday newspaper FSIs. One hot item is a 50-inch flat-panel plasma TV. The list price is $4,999, but her manager tells her to advertise it at $3,999, since customers can apply for a $1,000 mail-in rebate. The advertised price has attracted many people to buy the TV; however, Sally has heard several complaints from customers who found the rebate process unusually complex and were denied a rebate because the manufacturer claimed they hadn't provided the required information. She would prefer to advertise the "real" list price, knowing that customers are not guaranteed to receive a rebate.
Rebate programs are commonly used by electronics manufacturers because the rebates arouse consumers' interest in buying products; yet only half of purchasers ultimately claim their rebates. Is a rebate program itself unethical if the manufacturer knows consumers are unlikely to receive their money?
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17
Define and state the objectives of sales promotion. Sales promotion consists of those marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value. The main objectives of sales promotion are to increase trial purchases, consumer inventories, and repeat purchases. Sales promotion is also used to encourage brand switching and to build brand loyalty. Sales promotion supports advertising activities.
2.1 What is the primary factor that determines sales promotion objectives? Name some different types of sales promotion techniques, and explain the type of customer they are intended to influence.
2.2 You have recently been assigned the task of developing promotional techniques to introduce your company's new product, a Cajun chicken sandwich. Advertising spending is limited, so the introduction will include only some low-budget sales promotion techniques. Write a sales promotion plan that will increase awareness of your new sandwich and allow your customer base to try it risk-free.
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18
Steve Van Doren, son of Vans founder, is the self-proclaimed "ambassador of fun" at Vans. Because the company doesn't want to discount its products or lower its prices, it has to find other ways to create value for consumers. So, to keep the brand energized, the company is constantly developing promotions that can only be described as fun, an important element for attracting trendsetting customers. The core of Vans's strategy revolves around unique and authentic contests and giveaways. The company relies on word-of-mouth advertising and credible personal selling. In this video segment, Vans marketers explain how they use Web sites, contests, giveaways, and athletic events to attract and keep customers.
How have trade shows changed in recent years? What is Vans's main goal at trade shows today?
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19
At age 71, Ron "Ronco" Popeil is an avid inventor, tireless entrepreneur, clever marketer, and master salesman all in one. He just happens to be an American icon, too. The godfather of the infomercial, Popeil even has his famous Veg-O-Matic on display in the Smithsonian Institution as an American cultural artifact. His other famous products include the food dehydrator, the Ronco spray gun, and the Popeil Pocket Fisherman.
As a teenager, Popeil helped his father sell his kitchen gadgets at local Woolworth's and later, in the 1950s, on the Chicago fair circuit. That is probably why his famous shtick, which included such memorable catchphrases as "But wait, there's more," "Priced so low," and "Operators are standing by," always seemed like a blend between sincere eccentric inventor and excitable carnival barker. The combination suited him well and brought him enough financial success that he could afford to take his act to television. In the 1960s, he incorporated Ronco, and its name became synonymous with gadgets like the smokeless ashtray and Mr. Microphone.
Regardless of the product he is selling or the catchy pitch phrases he invents on the fly to sell them, Popeil is always sincere. "The easiest thing to do in the world is to sell a product I believe in," he has said. "If I spent two years creating a product, conceiving it, tinkering with it, I can get up and sell it. Who can sell it better than the guy who invented it?" Len Green, a professor in entrepreneurship at Babson College, says, "Ron is one of a kind. He is different from the rest because he not only invents, he sells. Most entrepreneurs come up with a concept and then give it to others to manufacture or sell. He's his own best salesman."
Though Popeil has suffered his fair share of flops, like spray-on hair and a brief bankruptcy in 1987, he has always managed to bounce back. Returning from bankruptcy, he relaunched the popular food dehydrator in 1990, and 8 years later he designed and sold his most successful product ever, the Showtime rotisserie BBQ. Having sold over seven million units for four installments of $39.95 each, the rotisserie alone has grossed over $1 billion in sales. During the taping of the infomercial for that product, the live studio audience was treated to yet another of Popeil's catchphrases that has become part of the fabric of American speech. "Just set it and forget it!" is now used to sell all kinds of non-Popeil products from VCRs and digital video recorders to ovens and coffeemaker.
Through the medium of television, Popeil was able to reach tens of millions of people. With an innate ability to invent or improve on everyday household products, his live product demonstrations captured the imaginations and dollars of generations of consumers. In 1976, he was even the subject of what was probably Dan Aykroyd's most famous bit on Saturday Night Live. Parodying Popeil, Aykroyd hawked "Rovco's Super Bass-O-Matic '76," which was capable of turning a bass or any other "small aquatic creature" into liquid without any "scaling, cutting or gutting."
Having recently sold Ronco to an investment group for over $55 million and accumulated a personal net worth of over $100 million, Popeil has had the last laugh. He will continue to serve as a product developer, pitchman, and consultant for the new company and already promises an even bigger hit than the Showtime rotisserie. Having identified a market of over 20 million Americans who fry turkeys every year, Popeil says he has a new fryer on the way that will make it possible to safely fry a 20-pound turkey in 70 minutes-indoors. Given that he has created over 150 products and invented personal selling via the mass marketing medium, there is little reason to doubt him.
As Barbara Gross, professor of marketing at California State University, Northridge, states, "His success speaks for itself; probably that has more to do with his personality. He's comfortable and sincere. He comes across like he really believes in it. When you hear him talk, you never feel like he's lying to you.
Explain how Popeil's selling tactics allow him to achieve the desired objectives of sales promotions.
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Unlock for access to all 19 flashcards in this deck.