The promotional budget

 Percentage of sales method

 Company may determine past or anticipated sales
and apply a percentage of sales as the
promotional budget.
 All available funds
 Company uses all available funds on the
promotional campaign .
 The promotional budget
 Matching the competition (also known as
competitive parity).
 Promotional expenditure based on market share of
competitors, or actual expenditure if known.
 Task or objective method
 Determine what tasks or objectives the promotion
must accomplish.
 Determine what it will cost to perform the task or
meet objective.
Skills of the sales person
 A good sales person requires various
attributes:
 Time management.
 Organising ability.
 Consulting skills.
 Communication skills.
 Problem-solving skills.
 Credibility (also a positive attitude).
 Managing the sales team
 Recruitment and selection
 Decide who the right person is for the job
and what attributes and qualifications
they should have.
 Choose the right people
 Various methods used are interview,
references, psychological and aptitude
tests, also physical examinations.
 Managing the sales team
 The induction
 A method used to familiarise a new employee
with their new working environment.
 The training
 Determine who should train new sales person.
 A training program should be developed to meet
company objectives which outline philosophy,
company and product overview.
Managing the sales team
 Sales people need:
 Coaching
∆ Spending time with a sales person to observe
and assist with their work practice, outcomes
and to develop knowledge and skills.
 Motivation
∆ Managers should find out what motivates an
individual.
∆ These include financial and non-financial
rewards.
 Compensation
 There are various forms of compensation:
 Straight salary.
 Straight commission.
 A third from of compensation used in
business is a combination of both methods.
This is used to motivate sales team
members with financial incentives.
 Types of advertising
 Consumer versus business advertising
 Emotional and rational vs informational.
 Product versus institutional advertising
 Focus on particular product or brand and
information and goodwill to company.
 Primary-demand and selective-demand
advertising
 Stimulate demand for generic or specific
brands
Which media should we use?
• To Choose the right medium for a promotional message, we
need to consider the following.
• What do we want our ads to do?
• Who are we trying to reach?
• What message do we want to communicate?
• How much will each medium cost?
 Media characteristics

• Newspapers
• Television
• Radio
• Magazines
• Direct Mail
• Outdoor advertising
• Yellow pages
• Internet
Did our advertising work?
• Here are some of the factors that make it difficult to
measure the sales impact of advertising
• Ads have different objectives
• Ads can have an effect over time
• The effects of ads are difficult to measure
 Methods used to measure
effectiveness include
• Direct tests: these measure or predict the sales volume
stemming from an advertising campaign
• Tabulating the number of inquiries from a direct-response
campaign
• Indirect tests: these measure something other than actual
sales (e.g. recall tests)
Choosing the right
sales promotion

• What are our promotional objectives?

• Who is our target market?
• Can our product be sampled?
• What will it cost to use the right promotional tool?
• What is the current economic condition?
Managing public relations
and publicity
 P.R. can be achieved by:
 Supporting charitable projects
 Supplying volunteers or other resources
 Participating in community-service events
 Sponsorship
 Providing information to customers via
newsletters.
 Managing public relations
and publicity (cont.)

 Publicity can be achieved by:

 structured news-release to the media
 co-ordinating personal communication with
a group
 co-ordinating one-to-one personal
communication (lobbying)