THE COMMUNICATION PROCESS
Modern marketing c a l l s for more than developing a good product, pricing it attractively and
making it accessible to target customers. Companies must also communicate with their
present and potential customers. Every company is inevitably cast into the role of
communicator and promoter.
What is communicated, however, should not be left to change. To communicate effectively,
companies hire advertising agencies to develop effective ads; sales promotion specialists to
design sales incentive programs and public relations firms to develop the corporate image.
They train their sales people to be friendly and knowledgeable. For most companies, the
questions are not whether to communicate but rather what to say, to whom, and how often.
A modern company manages a complex marketing communications system. The company
communicates with its middlemen, consumers and various publics. Its middlemen
communicate with their consumers and various publics.
Consumers engage in word-of-mouth communication with other consumers and publics.
Meanwhile each group provides communication feedback to every other group.
The marketing communication mix (also called the promotion mix) consists of four major
tools:
√ Advertising. Any paid form of non-personal presentation and promotion of ideals, goods or
services by an identified sponsor.
√ Sales Promotion. Short-term incentives to encourage purchase or sale of a product or
service.
√ Publicity. Non-personal stimulation of demand for a product, service or business unit by
planting commercially significant news about it in a published medium or obtaining
favourable presentation of it upon radio, television or stage that is not paid for by the
sponsor.
√ Personal Selling. Oral presentation in a conversation with one or more prospective
purchasers or the purpose of making sales.
Marketers need to understand how communication works.
Some years ago a communication model will answer:
■
Who,
■
Says what,
■
In what channel,
1
■
To whom,
■
With what effect.
Over the years, a communication model with nine elements has evolved, that shown in figure
8. Two elements represent the major parties in a communication sender and receiver.
Another two represent the major communication tools message and media. Four represent
major communication functions encoding, decoding, response and feedback .The last
element represents noise in the system.
These elements are defined as follows:
√ Sender. The party sending the message to another party (also called the source of
communicator).
√ Encoding. The process of putting thought into symbolic form.
√ Message. The set of symbols that the sender transmits.
√ Media. The communication channels thought which the Message moves from sender to
receiver.
√ Receiver. The party receiving the message sent by another party (also called the
audience or destination).
√ Response. The set of reactions that the receiver has after being exposed to the message.
√ Feedback. The part of the receiver's response that the receiver communicates back to the
sender.
√ Noise. Unplanned static or distortion during the communication process, resulting in the
receiver's receiving a different message than the sender sent.
The model underscores the key factors in effective communication. Senders must know what
audiences they want to reach and what responses they want. They must be skillful in encoding messages that take into account how the target audience usually decodes messages.
The source must transmit the message thought efficient media that reach the target audience.
Senders must develop feedback channels so that they can know the receiver's response to
the message.
Elements Affecting Shared Meaning
For a message to be effective, the sender's encoding process must mesh with the receiver's
decoding process. Schramm sees messages as e s s e n t i a l l y signs that must be familiar to
the receiver. The more the sender's field of experience overlaps with that of the receiver, the
more effective the message is likely to be. (See Figure 9).
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"The source can encode and the destination can decode, only in terms of the experience
each has had". This puts a burden a communicators from one social stratum (such as
advertising people) who want to communicate effectively with another stratum (such as
factory workers).
The sender's task is to get h i s or her message thought to the receiver. There is considerable
noise in the environment people are exposed to several hundred commercial messages a
day, aside from the other messages they attend to in their environment. Members of the
audience may not receive the intended message for any of three reasons. The first is
selective attention in that they will not notice a l l the stimuli. The second is selective
distribution in that they w i l l twist the message to hear what they want to hear. The third is
selective recall in that they will retain in permanent memory only a small fraction of the
messages that reach them.
The challenge to the communicator is to design a message that wins attention in sprite of the
surrounding distractions. Schramm suggested that the likelihood that a potential receiver will
attend to a message is given by.
Perceived reward strength - Perceived punishment strength
I livelihood of attention =----------------------------------------------------Perceived expenditure of effort
Selective attention explains why ads with bold headlines promising something, such as
"How to Make a M i l l i o n ; ' along with an arresting illustration and l it t le copy, have a
high likelihood of grabbing attention. For very little effort, the receiver has an opportunity to
gain a great reward. As for selective distortion, receivers have set attitudes, which lead to
expectations about what they will hear or see. They will hear what fits into their belief
system. As a result, receivers often add things to the message that are not there
(amplification) and do not notice other things that are there (leveling). The communicator's
task is to strive for message simplicity, clarity, interest and repetition, to get the main points
across to the audience.
As for selective recall, the communicator aims to get the message into the receiver's longterm memory. Long-term memory is the repository for all the information one has ever
proceed. In entering the receiver's long-term memory, the message has a change of
modifying the receiver's beliefs and attitudes. Bui first the message has to enter the
receiver's short-term memory, which is a limited-capacity store that processes incoming
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information. Whether the message passes from the receiver's short-term memory to his or
her long-term memory depends on the amount and type of message rehearsal by the
receiver. Rehearsal does not mean simple message repetition but rather the receiver's
elaborating on the meaning of the information in a way that brings into short-term memory
related thoughts previously stored in the receiver's long-term memory. If the receiver's initial
attitude toward the object is positive and he or she rehearses support arguments,
the message is likely to be accepted and have high recall. If the receiver's i n i t i a l attitude is
negative and the person rehearses counterarguments. The message is l i k e l y to be rejected
but to stay in long-term memory. Counterarguing inhibits persuasion by making an opposing
message available. Much of persuasion requires the receiver's rehearsal of his or her own
thoughts. Much of what is called persuasion is self-persuasion. M if there is no rehearsal of
arguments but simply discounting of the message, "I don't believe it," the receiver is
still more susceptible to subsequent influence than the receiver who counterargues.
Communicators have been looking for audience traits that correlate whit their degree of
persuasibility. People of high education and/or intelligence are thought to be less persuasible
but the evidence is inconclusive. Women have been found to be more persuasible than men,
although this is mediated by a women's acceptance of the prescribed female role. Women
who value traditional sex roles are influenceable than women who are less accepting of the
traditional roles. Persons who accept external standards to guide their behavior and who
have a weak self-concept appear to be more persuasible. Persons who are low in selfconfidence are also thought to be more persuasible. However, research by Cox and Bauer
showed a curvilinear relation between self-confidence and persuasibility, with those moderate
in self-confidence being the most persuasible. ' The communicator should look for audience
traits that correlate with persuasibility and use them to guide message and media
development.
Cartwright has outlined what must happen for a message to influence the behavior of
mother person:
♦
The "message" (that is, information, facts and so on) must reach the sense organs of
the persons who are to be influenced.
♦
Having reached the sense organs, the "'message" must be Accepted as a part of the
person's cognitive structure.
♦
To include a given action by mass persuasion, this action must be seen by the person
as a path to some goal that he has.
♦
To i n c l u d e a given action, an appropriate cognitive and mot i v a t i o n system must
gain control of the person's behavior at a particular point in time.
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Fiske and Hartley have outlined some factors that moderate the effect of a
communication:
■ The greater the monopoly of the communication source over the recipient, the greater
the change or effect in favour of the source over the recipient.
■
Communication effects are greatest where the message is in line with the existing
opinions, beliefs and dispositions of the receiver.
■
Communication can produce the most effective shifts on unfamiliar, lightly felt, peripheral
issues, which do not lie at the center of the recipient's value system.
■
Communication is more l i k e l y to be effective where the
source is believed to have expertise, high s t a t u s , objectivity
or l i k a b i l i t y , but particularly where the source has power
and can be identified with.
■
The social context, group or reference group will mediate
The communication and influence whether or not it is accepted.
13.1. The Promotion Mix
Companies are always searching for ways to gain efficiency by substituting one promotional
tool for another as its economics become more favourable. Many companies have replaced
some field sales activity with ads, direct mail and telemarketing. Other companies have
increased their sales promotion expenditures in relation to advertising, to gain quicker
sales. The relative substitutability among promotional tools explains why marketing
functions need to be coordinated in a single marketing departments.
Many factors influence the marketer's choice of promotional tools. We will examine these
factors in the following paragraphs.
13.2. Nature of Each Promotional Tools
Bach promotional tool:
•
Advertising,
•
Personal Selling,
•
Sales Promotion,
•
Publicity.
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Has its own unique characteristics and costs. Marketers have to understand these
characteristics in selecting them.
13.2.1. Advertising
Because of the many forms and uses of advertising, it is difficult to make all-embracing
generalizations about its distinctive qualities as a component of the promotional mix.
Yet the following qualities can be noted.
13.2.1.1. Public Presentation
A d v e r t i s i n g is a highly public mode of communication. Its p u b l i c nature confers a kind of
legitimacy on the product and also suggests a standardized offering. Because many persons
receive the same message, buyers know that their motives for purchasing the product w i l l
be publicly understood.
13.2.1.2. Pervasiveness
Advertising is a pervasive medium that permits the seller to repeat a message many times. It
also allows the buyer to r e c e i v e and compare the messages of various competitors. Largescale advertising by a seller says something positive about the seller's size, popularity and
success.
13.2.1.3. Amplified Expressiveness
Advertising provides opportunities for dramatizing the company and its products through the
artful use of print, sound and color. Sometimes, however, the tool's very success at expressiveness may d i l u t e or distract from the message.
13.2.1.4. Impersonality
Advertising cannot be as compelling as a company sales representative. The audience does
not feel obligated to pay attention or respond. Advertising is able to carry on only a monologue, not a dialogue, with the audience.
Advertising is an efficient way to reach numerous geographically dispersed buyers at a low
cost Per exposure. Certain forms of advertising, such as TV advertising, can be done on a
small budget, while other forms, such as newspaper advertising, can be done on a small
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budget. Advertising may have an effect on sales simply through its presence. Consumers
may believe a heavily advertised brand is one that offers "good value", "otherwise, why would
advertisers spend so much money backing a poor product?
13.2.2. Personal Selling
Personal selling is the most effective tool at certain stages of the buying process, particularly
in building up buyers' preference, conviction and action. The reason is that personal selling,
when compared with advertising, has three distinctive qualities:
13.2.2.1. Personal Confrontation
Personal s e l l i n g involves an alive, immediate and interactive relationship between two or
more persons. Each party is able to observe each other's needs and characteristics at close
hand and make immediate adjustments.
13.2.2.2. Cultivation
Personal selling permits all kinds of relationship to spring up, ranging from a matter-of-fact
selling relationship to a deep personal friendship. Effective sales representatives will normally
keep their customers' interests at heart if they want long-run relationship.
13.2.2.3. Response
Personal selling makes the buyer feel under some obligation for having listened to the sales
talk. The buyer has a greater need to attend and respond, even if the response is a polite
"thank you".
These distinctive qualities come at a cost. A sales force represents a greater long term
commitment than advertising. Advertising can be turned on and off, but the size of a sales
force is more difficult to alter.
13.2.3. Sales Promotion
Although sales promotion tools (coupons, contests, premiums and the like) are highly
diverse, they have three distinctive characteristics:
13.2.3.1. Communication
They gain attention and usually provide information that may lead the consumer to the
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product.
13.2.3.2. Incentive
They incorporate some concession, inducement or contribution that gives value to the
consumer.
13.2.3.3. I n v i t a t i o n
They include a d i s t i n c t invitation to engage in the transaction now.
Companies use sales promotion tools to create a stronger and quicker response. Sales
promotion can be used to dramatize product offers and to boost sagging sales. Sales
promotion effects are usually short run, however and are not effective in building long-run
brand preference.
13.2.4. Publicity
The appeal of publicity is based on its three distinctive qual i t i e s :
13.2.4.1.
High Credibility
News stories and features seem more authentic and credible to readers than ads do.
13.2.4.2.
Off Guard
Publicity can reach many prospects who might avoid sales people and advertisements. The
message gets to the buyers as news rather than as a sales-directed communication.
13.2.4.3. Dramatization
Publicity has, like advertising, a potential for dramatizing a company or product.
Marketers tend to underused product publicity or use it as an afterthought. Yet a wellthought-out publicity campaign coordinated with the order promotion-mix elements can be
extremely effective.
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13.3. Setting the Advertising Objectives
The first step in developing an advertising program is to set the advertising objectives. These
objectives must flow from prior decisions on the target market, market positioning and
marketing mix. The market-positioning and marketing-mix strategies define the job that
advertising must do in the total marketing program.
Advertising objectives can be classified as to whether t h e i r aim is to inform, persuade or
remind.
13.3.1. Informative Advertising
Informative advertising figures heavily in the pioneering stage of a product category, where
the objective is to build primary demand. Thud the yogurt industry initially had to inform
consumers to yogurt's nutritional benefits and many uses.
13.3.2. Persuasive Advertising
Persuasive advertising becomes important in the competitive stage, where a company's
objective is to build selective demand for a particular brand. Most of the advertising we view
falls into this category. For example, Chivas Regal attempts to persuade consumers that is
delivers status like no other brand of scotch. Some persuasive advertising has moved into
the category of comparison advertising, which seeks to e s t a b l i s h the superiority of one
brand through specific comparison with one or more other brands in the product class. '
Comparison advertising had been used in such product categories as deodorants, fast-food
hamburgers, toothpaste, tires and automobiles. The burger King Corporation successfully
developed comparison advertising for its franchise when it battled McDonald's in a burger
war over flame broiling versus frying hamburgers. Describes some guidelines for creating
successful comparison advertising.
13.3.3. Reminder Advertising
Reminder advertising is highly important in the mature stage of the product to keep the
consumer thinking about the product. Expensive four-color Coca-Cola ads in magazines
have the purpose not of informing or persuading but of reminding people to purchase CocaCola. A related form of advert i s i n g is reinforcement advertising , which seeks to assure
current purchasers that they have made in right choice. Aurotobile ads will often depict
satisfied customers enjoying some special feature of their new car.
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Possible Advertising Objectives
To inform:
Telling the market about a new product
Suggesting new uses for a product
Informing the market of a price change
explaining how the product works
Describing available services
Correcting false impressions
Reducing consumers' fears
B u i l d i n g a company image
To persuade:
Building brand preference
Encouraging switching to your brand
Persuading customer to purchase now
Persuading customer to receive a sales call
Changing customer's perception of
product attributes
To remind:
Reminding consumers that the product
may be needed in the near future
reminding them where to buy it
Keeping it in their minds during of seasons
Maintaining its top-of mind
awareness
The choice of the advertising objective should not be arbitrary but should be based on
thorough analyses of the current marketing situation. For example, if the product class is
mature and the company is the market leader and if brand usage, if the product class is new
and the company is not the market leader, bul its brand is superior to the leader, then the
proper objective is to advertise the brand's superiority over the market leader.
13.4. Public Relations
Public Relations (PR) is another important marketing tool. Until recently, however, it has
been treated as a marketing stepchild. The P u b l i c Relations department is typically
located at corporate headquarters; and its staff is so busy dealing with various p u b l i c s
(stockholders, employees, legislators, community leaders) that PR departments perform the
following five a c t i v i t i e s , most of which do not feed into direct product support.
♦ Press Relations. The aim o l ' press relations is to place newsworthy information into the
news media to attract attention to a person, product or service.
♦ Product Publicity. Product publicity involves various efforts to publicize specific
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products.
♦ Lobbying. Lobbying involves dealing with legislators and government officials to promote or
defeat l e g i s l a t i o n and regulation.
♦ Corporate Communications. This activity covers internal and external communications
and promotes understanding of the organization.
♦ Counselling. Counselling involves advising management about public issues and
company positions and image.
In addition, marketing managers and PR practitioners do not always talk the same language.
One major difference is that marketing managers are much more bottom-line oriented,
whereas PR practitioners, see their job as disseminating communications. But this is
changing in two ways:
First, companies are calling for much more market-oriented PR. They want their PR
department to manage all of their PR activities with a view to how these activities will
contribute toward marketing the company and improving the bottom line.
Second, companies arc requiring their PR departments to set up a special section c a l l e d
marketing PR, like financial PR and community PR, would stand as a separate service to a
corporate constituency, namely, the marketing department.
On the other hand the t h i r d element in the promotion mix that relies on mass communication
is PR. Dunn defines this activity as a promotional function that "uses two way communications to mesh the needs and interests of an institution or person with the needs and
interests of the various p u b l i c s with which that institution or person must communicate.
Some key definitions in public relations are listed in Table 3. Firms undertake public relations
for a product; for a product class, for a company as a whole; and for an industry.
Public Relations
Two-way communication to mesh the needs and interests of an institution or
person with those of publics.
Publics
Any target audience tied together or distinguished by some Interest or concern.
Public Affairs
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Planned effort to gain favorable reactions and influence and outside an organization
through actions and effective two-way communication; often emphasizes media and
government publics.
Publicity
Planned program to obtain favorable media coverage of topics important to an
organization.
Press Agentry
Generating publicity through attention-getting devices (usually blatant) or publicity
gimmickry.
Promotion
Marketing function used to build the image of a product or services through advertising.
PR. sales promotion or personal selling.
Propaganda
Attempt at persuasion of target audiences at all costs, using Unethical as well as
ethical forms of communication.
Advertising
Nonpersonal. persuasive, paid communication through the Media with
sponsors or brands identified in the message.
Key Definitions in Public Relations
The old name for marketing PR was publicity. But marketing PR goes beyond simple
publicity. Marketing PR. Can contribute to the following tasks:
♦
Assist in the launch of new products. The amazing commercial success of Cabbage
Patch Kids was due not so much to the paltry advertising budget of $ 500.000 but to
clever publicity, including donating the dolls to children in hospitals, sponsoring Cabbage
Patch Kids adoption parties for schoolchildren and so on.
♦
Assist in Repositioning a Mature Product. New York City had an extremely bad press in
the seventies until the "1 love
New York " campaign started to take root, bringing millions of additional tourists to the city.
♦
Build up Interest in a Product Category. Companies and trade associations have used
PR to rebuild interest in declining communities such as eggs, milk and potatoes and to
expand consumption of such products as tea and orange juice.
♦
Influence Specific Target Groups. McDonald's sponsors special neighborhood events in
Hispanic and black communities for good causes and in turn build up a good company
image.
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♦ Defend Products That Have Encountered Public Problems Johnson & Johnson's masterly
use of PR was a major factor in saving Tylenol from extinction.
♦
Build the Corporate linage in a Way That Projects Favorably on its Products. Iaccoca's
speeches and his autobiography helped project a whole new wining image for the
Chrysler Company.
Publicity has several unique advantages, it is credible: most people feel the mass media
would have no reason to carry favourable information about a product unless it were true.
Thus, PR reinforces the firm's advertising campaign by increasing awareness and the
believability of product claims. Publicity also makes it easier for the sales force to present a
case for the product. And it is low cost, in that there are few media costs. The major
disadvantage is that publicity is beyond the company's control, not only as to whether
the release will be run, but also what is said about the product.
Through PR, firms communicate with a variety of publics. They include:
♦
The ultimate consumer information about new products and new uses for old products.
♦ The financial community and stockholders signaling the maintenance of or improvement in
the company's profitability.
♦ The community with "good citizen" information.
♦ Prospective employees why the firm is a good place to work.
♦ Present employees to develop pride in the company.
♦ Supplies good company with which to build an enduring relationship.
This listing of audience suggests that publicity might be aimed at accomplishing different
objectives among different groups. Such objectives range from simple increasing awareness
of a company or its products to stimulating an actual response, such as sending for a free
bulletin.
Firms also use public relations to cope with an unexpected shock. This was the case with
the PR campaign Johnson & Johnson mounted when seven people died from poisoned
Tylenol capsules. J&J was able to restore confidence in the company and its Tylenol brand
due in part to its responsible and will-orchestrated public relations program.
13.4.1. Major Tools in Public Relations
Public relations professionals have at least eight PR tools at their disposal, namely;
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-News,
-Speeches,
-Events,
-Public Service Activities,
-Written Material,
-Audio-visual Material,
-Corporate Identity Media,
-Telephone Information Services.
They are described below.
13.4.1.1. News
One of the major tasks of PR professionals is to find or create favorable news about the
company and/or its products or people. Sometimes news stories are inherent in the situation
and sometimes the PR person can suggest events or activities that would create news. News
generation requires skill in developing a story concept and researching it extensively, much
as a reporter does. But the PR person's skill must go beyond preparing news. Getting the
media to accept press releases and attend press conference calls for marketing and
interpersonal skills. A good PR media director understands the press's needs for stories that
are interesting and timely and for press releases that are well written and attention getting.
The media director needs to cultivate as many news editors and reporters as possible. The
more the press is cultivated, the more likely it is to give more and better coverage to the
company.
13.4.1.2. Speeches
Speeches are another tool for creating product and company publicity. Some companies arc
carefully choosing their spokespersons and also using speech writers and coaches to help
improve their delivery.
13.4.1.3. Events
Companies can draw attention to new products or other company activities by arranging
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special events. These include news conferences, seminars, outings, exhibits, competitions,
anniversaries and so on, that will reach the target publics.
13.4.1.4. Public Service Activities
Companies can improve public goodwill by contributing money and time to good causes. The
company also encouraged its employees to participate in local programs as both tutors and
board members.
13.4.1.5. Written Material
Companies rely extensively on written materials to reach and influence their target markets.
These include annual reports, brochures, articles and company newsletters and magazines.
Brochures can play an important role in informing target customers about what a product
is, how it works and how it is to be assembled. Thoughtful articles written by company
executives can draw attention to the company and its products. Company newsletters and
magazines can help build up the company's image and convey important news to
target markets. They should have an appearance and content that is consistent and
supportive of the company's image.
13.4.1.6. Audio-Visual Material
Audio-Visual Material, such as films, slides-and-sound and video and audio cassettes are
coming into increasing use as communication tools. The cost of audio-visual materials is
usually greater than the cost of printed material, but so is the impact. They can provide highimpact product demonstrations and are likely to receive strong attention. In all cases, they
should be put together with care; if they are done badly, they can impress the audience
negatively rather than positively.
13.4.1.7. Corporate Identity Media
Normally a company's materials acquire separate looks, which causes confusion and misses
an opportunity to create and reinforce a corporate identity. In an over communicated society,
companies have to compete for attention. They should at least try to create a visual identity
that the public immediately recognized. The visual identity is carried by the company's permanent media logos, stationery, brochures, signs, business forms, business cards, buildings,
uniforms and rolling stock. The corporate identity media become a marketing tool when they
are attractive, distinctive and memorable. The company shoul select a good graphic design
consultant who will gel management to identify the essence of the company and they turn it
into a concept backed by strong visual symbols.
15
13.4.1. Major Tools in Public Relations
Public relations professionals have at least eight PR tools at their disposal, namely;
-News,
-Speeches,
-Events,
-Public Service Activities,
-Written Material,
-Audio-visual Material,
-Corporate Identity Media,
-Telephone Information Services.
They are described below.
13.4.1.1. News
One of the major tasks of PR professionals is to find or create favorable news about the
company and/or its products or people. Sometimes news stories are inherent in the situation
and sometimes the PR person can suggest events or activities that would create news. News
generation requires skill in developing a story concept and researching it extensively, much
as a reporter does. But the PR person's skill must go beyond preparing news. Getting the
media to accept press releases and attend press conference calls for marketing and
interpersonal skills. A good PR media director understands the press's needs for stories that
are interesting and timely and for press releases that are well written and attention getting.
The media director needs to cultivate as many news editors and reporters as possible. The
more the press is cultivated, the more likely it is to give more and better coverage to the
company.
13.4.1.2. Speeches
Speeches are another tool for creating product and company publicity. Some companies arc
carefully choosing their spokespersons and also using speech writers and coaches to help
improve their delivery.
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13.4.1.3. Events
Companies can draw attention to new products or other company activities by arranging
special events. These include news conferences, seminars, outings, exhibits, competitions,
anniversaries and so on, that will reach the target publics.
13.4.1.4. Public Service Activities
Companies can improve public goodwill by contributing money and time to good causes.
The company also encouraged its employees to participate in local programs as both
tutors and board members.
13.4.1.5. Written Material
Companies rely extensively on written materials to reach and influence their target
markets. These include annual reports, brochures, articles and company newsletters and
magazines. Brochures can play an important role in informing target customers about
what a product is, how it works and how it is to be assembled. Thoughtful articles
written by company executives can draw attention to the company and its products.
Company newsletters and magazines can help build up the company's image and
convey important news to target markets. They should have an appearance and
content that is consistent and supportive of the company's image.
13.4.1.6. Audio-Visual Material
Audio-Visual Material, such as films, slides-and-sound and video and audio cassettes are
coming into increasing use as communication tools. The cost of audio-visual materials is
usually greater than the cost of printed material, but so is the impact. They can provide highimpact product demonstrations and are likely to receive strong attention. In all cases, they
should be put together with care; if they are done badly, they can impress the audience
negatively rather than positively.
13.4.1.7. Corporate Identity Media
Normally a company's materials acquire separate looks, which causes confusion and misses
an opportunity to create and reinforce a corporate identity. In an over communicated society,
17
companies have to compete for attention. They should at least try to create a visual identity
that the public immediately recognized. The visual identity is carried by the company's permanent media logos, stationery, brochures, signs, business forms, business cards, buildings,
uniforms and rolling stock. The corporate identity media become a marketing tool when they
are attractive, distinctive and memorable. The company shoul select a good graphic design
consultant who will gel management to identify the essence of the company and they turn it
into a concept backed by strong visual symbols.
13.4.1.8. Telephone Information Services
A newer PR tool is a telephone number through which prospects and customers can get
information and better service from a company, many hospitals, for example, use the telephone to provide health messages, offer on-the-spot counseling and recommend physicians to
people seeking one.
13.5. The Sales Force
I don’t know who you are,
I don’t know your company,
I don’t know your company 's product,
I don’t know what your company stands for,
I don’t know your company's customers,
I don’t know your company's record,
I don’t know your company's reputation,
Now, what was it you wanted to sell me?
Sales personnel serve as the company's personal link to the customers. The sales
representative is the company to many of its customers and in turn brings back to the
company much needed intelligence about the customer. Therefore the company needs to
give its deepest though to issues in sales-force design, namely, developing sales-force
objectives, strategy, structure, size and compensation.
13.5.1. Sales-Force Objectives
√ Prospecting. Sales representatives find and cultivate new customers.
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√ Communicating. Sales representatives skillfully communicate information about the
company's products and service
√ Selling. Sales representatives know the art of "salesmanship" approaching, presenting,
answering objections and closing sales.
√ Servicing. Sales representatives provide various services to the customers consulting their
problems, rendering technical assistance, arranging financing and expediting delivery.
√ Information Gathering. Sales representatives conduct market research and intelligence
work and fill in call reports.
√ Allocating. Sales representatives are able to evaluate customer quality and allocate
scarce products during product shortages.
13.5.2. Sales-Force Strategy
Companies compete with each other to get orders from customers. They must deploy
their sales-ibices strategically so that they are calling on the right customers at the
right time and in the right way. Sales representatives can approach customers in
several ways:
- Sales representative to buyer. A sales representative talks to a prospect or customer in
person or over the phone.
- Sales Representative to Buyer Group. A sales representative makes a sales
presentation to a buying group.
- Sales ream to Buyer Group. A sales team (such as a company officer, a sales
representative and a sales engineer) makes a sales presentation to a buying group.
- Conference Selling. The sales representative brings resource people from the company to
meet with one or more buyers to discuss problems and mutual opportunities.
Thus the sales representative often acts as the "account manager 11 who arranges contacts
between various people in the buying and s el ling organizations. Selling increasingly calls for
teamwork, requiring the support of other personnel, such as top management major sales are
at stake; technical people, who supply technical information to the customer before, during or
after the purchase of the product; customer-service representatives, who provide installation,
maintenance and other services to the customer; and an office staff, consisting of sales
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analysts, other expediters and secretaries.
Once the company decides on a desirable selling approach, it can use either a direct or a
contractual sales force. A direct (or company) sales force consists of full or part-time
paid employees who work exclusively for the company, this sales force includes inside sales
personnel, who conduct business from their office using the telephone and receiving visits
from prospective buyers and field sales personnel, who travel and visit customers. A
contractual sales force consists of manufacturers' reps, sales agents or brokers, who
are paid a commission based on their sales.
13.5.3. Sales-Force Size
Once the company clarifies its sales-force strategy and structure, it is ready to consider
sales-force size. Sales representatives are one of the company's must productive and
expensive assets. Increasing their number will increase both sales and costs.
Most companies use the workload approach to establish sales-force size. This method
consists of the following steps:
■ Customers are grouped into size classes according to their annual sales volume.
■ The desirable call frequencies (number of sales calls on an account per year) are
established for each class. They reflect how much call intensity the company seek in relation
to competitors.
■ The number of accounts in each size class is multiplied by the corresponding call
frequency to arrive at the total workload for the country, in sales calls per year.
■ The average number of calls a sales representative can make per year is determined.
■ The number of sales representative needed is determined by dividing the total annual
calls required by the average annual calls made by a sales representative.
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