promotion and personal selling exam solution

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PROMOTION AND PERSONAL SELLING EXAM AAST-MBA Spring 2016 Haitham Mohamed Ibrahim

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Page 1: Promotion and Personal Selling Exam Solution

PROMOTION AND PERSONAL SELLING EXAMAAST-MBA Spring 2016

Haitham Mohamed Ibrahim

Page 2: Promotion and Personal Selling Exam Solution

Answer of Question one:

KOMATRO LTD Co.

Contact: Haitham M Ibrahim 13, Fox StreetCEO- Komatro LTD Co. Washington, USAPhone:+1-564-236-777Fax:+1-02-584-319-9E-mail: [email protected]

Press ReleaseKomatro LTD Co. Terminates the E-coli Outbreak

Prompt action taken by the Co. as a response to the outbreak claim

Health officials in Washington state informed Komatro LTD Co. that they had discovered a link between several cases of E. coli 0157:H7 (E. coli bacterial poisoning) and Komatro fresh apple juice.

From the moment Komatro received the alarm (and even though no solid proof was provided, at the time, regarding the accuracy and relevance of this claim), they have acted immediately and taken every action possible to retrieve the cause of this outbreak and ensure future prevention. “Our number-one concern is the safety and well-being of people who drink our juices’ Said By Mr. Haitham M Ibrahim CEO- Komatro LTD Co.

To this end, Komatro have ordered a complete recall of all their products containing apple juice. This recall covered each and every of our retail outlets. The recall was thoroughly completed within a few hours thanks to multiple and efficient task teams that were formed and mobilized immediately after the onset of the alarming notification. The recall cost was around 10 millions which the company endured as per Mr Ibrahim announced lately.

Mr Ibrahim Said “We have immediately created an interactive website ( www.Komatro.com/carecenter ) for all of our valued customers to report any problem that they have had with our products. And a hot number (900-245-1566) to claim any incident. The company would like to express sympathy and regret for all those affected and promising to pay all medical costs that pertain to the E. coli outbreak immediately ’

Page 3: Promotion and Personal Selling Exam Solution

Answer of Question two:

An IMC plan should not be complex to develop, understand and apply by it executes; nor incomprehensible to its recipients. Being realistic about the club's marketing objectives is a key element of success for the IMC plan as some marketing tactics and communication channels are costly to implement and may not have t the desired effect. Several techniques are employable to develop an IMC plan. An always useful step is to raise the subject with members at the club meeting. Points on the agenda should include what sets the club apart from other clubs, what it offers that other clubs don't, and what the benefits of joining the club are.

The IMC plan should ideally include these messages and subsequent marketing activities. These are the “attractors” that appeal to new members and make people feel good about joining. It is also always useful to examine IMC campaigns of other clubs. This may help in developing and creating content for the IMC plan. It is not uncommon for clubs to make the mistake of pouring a lot money and dedicating a lot of time to “catch” new members while forgetting current ones. It might improve less expensive and more influential if the club would develop its IMC plan content to highlight the improvements to basic services, attitudes of staff towards members, and the standard of facilities.

The content for an IMC plan should be ideally developed under the following points:

Objectives: communicating only measurable and achievable goals that are comprehensible to the public e.g. establishing new tennis courts.

Situation analysis: This point is mainly concerned with communicating the club’s current situation (socio-culturally and financially). It is always helpful to carry out a SWOT analysis to identify the club’s strengths, weaknesses, opportunities, and threats.

Strategies: These include tools and activities to address the club's current and potential members. The key is to develop these tools and activities to target specific market segments. The main issue is to design, direct and communicate services at specific individuals or groups of members. Questions to be asked at this point include: what do members like, what do they read, where they go, how to attract their attention.

Budget: The communicated IMC plan content should be developed within a realistic marketing budget that corresponds to the club's current capabilities. Low-cost or no-cost strategies are a safe option to begin with.

Evaluation: The club should eventually and systematically evaluate the impact of IMC plan content and whether it has met the objectives. The marketing team should periodically collect copies of press clippings, media coverage and any feedback the club receives - positive or negative.

Promotional Techniques:

Page 4: Promotion and Personal Selling Exam Solution

There is a variety of applicable techniques that the club can use to market and promote itself:

1) A common practice is to use the club name, logo, letterheads and signage on promotional materials. Club name, logo and signage should be also widely communicated on promotional events, presentations, competitions and membership registration days.

2) Following the same logic is developing websites that are simple and effective in communicating with members, sponsors, supporters and the local community. A positive step is to include club members who have the skills to design and write the club’s website. Basic websites should cover the services and facilities offered by the club, a calendar of events and meetings, membership information and definitely the club’s contact details. The website should be ideally linked to related sites and search engines. A starting point is to ask schools, universities and recreation centers to include a link to the club’s website on theirs Members’ discussion forums are encouraged to be included on the website. The website’s content should be updated continually with new information.

3) On the same E-communication track, emails facilitate the communication between clubs and members. The club should however carefully consider the content and control the quantity of email messages sent out to members. It is commonly less provocative to members (whether current or potential) to receive a single email with a number of key points rather than multiple emails each with a single message. Attention should be paid when sending out mass emails to enter all the recipients’ email addresses in the "bcc" slot and not the "to" the "cc" slot. This helps prevent against future complaints from privacy infringements and spam mails.

4) Newsletters are a vital tool in promoting clubs as they provide information to members about events, activities, and news. Again, a positive step is to include club members with the skills to design and write the newsletter. Easy, personalized and direct channels should be incorporated in communicating the newsletter. It is less expensive to send newsletters to members by email rather than printing them. The newsletter should be also downloadable (or at least browse-able) from the website too. Newsletters are the most common and direct way of communicating with members, especially if it is via email. Newsletters should be clear and easy to read. Good newsletter needs to get all relevant information to the right people in a timely and accessible fashion.

5) Another effective tool is to design and communicate (distribute) flyers and brochures that contain the club's services and contact information. Mail boxes and notice boards (in community centers, recreation centers, schools and companies) are common delivery platform for flyers and brochures.

6) Distributing promotional T-shirts, caps, socks and uniforms freely can improve club’s image and at the same time promote events and activities at the club. Selling such items can also raise funds while also promoting the club.

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7) Paid Advertisement ensures a wide coverage through different forms of media e.g. Newspapers, radio, and television. The club management should carefully revise the content communicated in the advertisement. However advertisement media is commonly costly and thus it is always advisable to consider cheap and effective forms of promotion first. Nonetheless, if media advertisement is the chosen path, several considerations have to be carefully examined first. The following paragraphs shed more light on the subject.

8) Making a monthly magazine with the name of the club to promote for it’s news, services, offers, ..etc

9) Produce monthly video interview with a celebrity and a social media influencer about one of the main topics included in the magazine

10) Produce weekly video interview with one of the professionals in one of the fields included in the magazine

11) Produce monthly comic public interviews videos to raise the interaction with public

12) Sharing the video contents in the social media platforms (Facebook, Twitter, Instagram, Pinterest, Youtube).

13) Building community in the social media platforms (Facebook, Twitter, Instagram, Pinterest, Youtube).

14) Audience interacting with trainers on social media; creating “hashtag” for weekly live discussion with fitness trainers on Facebook and other channels

15) Audience and public figures interactive webinars on monthly bases to raise the interaction in our social media channels and website

16) Some topics needs more illustration (like first aid steps, fitness, DIY) will be videotaped and uploaded on Youtube, only the title and a little teasing introduction will be mentioned in the magazine accompanied with QR code. Watch and get your Prize!! With a little contest by the end of the video answers will be sent on magazine email a reply with prizes coupon for the winners (healthy drinks, healthy meals, healthy trips)

17) As a CSR activity; branded food box (Healthy Clean Food) distributed in different neighborhoods for people and restaurants to put food leftovers

18) Raising Alex Trainers' community, to meet the fitness, bodybuilding and sports trainers

19) Website will offer free articles, interviews with celebrities and professionals, interactive platform and free review for the issued magazines.

20) Competitions;

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Contest between friends followed up by the magazine news and updates posted on social media

To attend the club’s semi-annual event, collecting printed 3 consecutive editions of the magazine and participating to events contests

Using media to promote the club In order to raise the club's public profile, it is always useful to develop a good relationship with local media. This will definitely facilitate any future contact and simplify the usually tiresome advertising endeavors. The media is normally inclined towards Publishing or broadcasting content that appeals to and attracts their audiences.Accordingly, promoting the club through media should be accompanied by the trial to understand what the media is interested in covering and how such information can be provided. This is finally translated by the IMC campaign into finding creative ways to make information more interesting and attractive to attention. Newspaper and radio are common communication channels for promoting clubs and

their activities. Local newspapers are usually interested in covering club events but

sometimes don’t have the staff to cover the story. In this case, the marketing team can issue media releases as these are standard way to provide information to the media. Basic consideration in composing a press release is to write simply, state the facts, explain the concept and, show how it is useful. Clubs also commonly establish good contact with popular radio stations to let them know about the club, what the club is doing, and the types of events coming up.

Ensuring effective Communication to and from the club:In parallel to implementing the IMC plan, the club should ideally ensure an effective two-way communication channel with its members. The main issue here is that each club is unique and accordingly should strive to establish its own efficient ways of communicating with members. The communication responsibility is optimally open sharing by everyone in the club. The final goal is to maintain the communication fluent and running. A number of disciplines can ensure the smooth running of communication:Maintaining correspondence:Formal and informal correspondence (feedbacks, information, etc.) are commonly delivered via mailboxes and email inboxes in a club. A correspondence official should be assigned to go through the correspondence and distribute it to designated parties in an efficient way. Clubs also receive regular newsletters and bulletins from related and kindred entities (for example national sports organizations). Again, an official appointed by the club should ensure that management and members are aware of relevant information (news, events, deadlines, etc).Maintaining records and databases:The communication flow out and in a club should be ideally maintained in a comprehensive database. For ease of retrieving information the database should be organized to facilitate communication with for specific targeted groups. Such

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groups include for example management (top, middle and line), social members, seniors, veterans, sponsors and VIPs. The database should be ideally compatible with the email system employed in the club to allow targeted emails

Diversifying the types of communication channels incorporated:Employing formal marketing communication channelsFormal marketing enhances the club's profile and membership count. The club’s contact info should be listed in the telephone directory while membership registrations are advertised for instance in newspapers. Accompanying measures extend from offering discounts on family memberships to redecorating the club facilities. The list of formal marketing activities should be ideally organized in the Integrated Marked Communication (IMC) plan of the club.Employing informal marketing communication channelsRelevant techniques include encouraging marketing activities that club management and members can do informally on a daily basis. Examples include offering help and information to potential members over the phone as well as encouraging potential members (friends of current members) to join up. Both formal and informal marketing channels depend on club members talking positively about the club. So it is vital for the club to make every experience and contact with the club a positive and rewarding one

Answer of Question three:

The promotional discipline applied in the two offerings under investigation is “Bundle pricing”. In a bundle pricing, a company sells a package or set of goods or services for a cumulative lower price than if each item is bought separately. Pursuing a bundle pricing strategy allows accompany to augment and promote its sales by giving consumers a discount. However, several factors intervene to control the degree of success of a bundle pricing strategy while shaping the impact on the consumer decision making process. In comparing the two case offerings “Ariel & Downy” and “Domino’s pizza”, certain differences in the bundle pricing strategy applied for each are clearly identifiable.

The effect of demand:

In the case of Domino’s Pizza, knowing whether consumers want the pizza or other products (for example pasta) most, helps in determining the bundle that is most likely to sell and accordingly result in the biggest orders. If the consumers’ demand is relatively high on pizza, offering pasta at a lower price might convince consumers to add it to their order. The opposite is true if the demand is higher on the pasta.

The fact that Domino’s pizza offering is “buy 1pizza get 1 for free” suggests that neither pizzas nor other products are experiencing high demands at the time the promotion is made. The company is focusing its marketing efforts in a “concentric

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growth “mode through promoting and attempting to increase the sales of its main product i.e. pizzas. This is different in the case of “Ariel & Downy” because the offering is based on promoting in a “horizontal diversification” mode where a highly demanded product “Ariel: a prize selling washing detergent” is being bundle priced with a related company product “Downy: a fabric softener”. The main motive behind this pairing is most likely to promote “Downy”: increase consumers’ awareness about this particular product and consecutively motivate purchases. Domino’s Pizza shall need special techniques to be able to bundle price its “horizontally diversified” products.

In the real world, a company can’t continually change prices, but online, it can be done very quickly and efficiently. On its online website, Domino’s Pizza can track what products the consumers searched for first when they entered the website (most likely to be pizzas). At checkout, the company can offer a reduced price for other kindred products (e.g. the pasta or any other add-on) .The chances of bundle purchases can increase significantly in this scenario

Answer of Question Four:

The answer to this question is verbalized in correspondence to the personal selling process steps. The definition and related activities of each step are first explained. The steps are then applied to the services provided by Reaya Holding Co. that I’m a business development manager in it, Reaya is a healthcare management Co. we need personal selling specially in promoting the hospital services to:

o Doctors who want to refer cases or do operations inside the hospitalso Insurance companies who want to do contracts to refer their customers

o Corporates who want to refer patients directly from their in-house clinic to the hospitals

Personal Selling 7 steps:

1) Prospecting:

The prospecting step deals with the segmentation (logic categorization) of potential buyers on the basis of the need for the product/service and possessing the financial ability to buy it. Potential customers may be spotted and located through observation, enquiry and analysis of records of existing customers. On

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the same track, social contacts, business associations and dealers can be helpful in the segmentation and eventual targeting of potential buyers.

Related activities in Reaya:

 Gathering historical data of the clients (Doctors, Patients, Corporates, insurance companies, etc) developing enquiries lists and purchase-tendency questionnaires then contacting business associations and data banks for legal purchase of data.

Objections

 By the sales staff: prolonged times of data search and analysis (Big Data Analytics). By the segmented potential buyers: privacy infringements

Planned response:

Use specialized computer software for better categorization and filtering of data, outsource certain activities of the data hunting process and ensure legal ways of data collection. Also the focus groups especially with the Drs as B2B customer will give premium data.

2) Approaching:

Prior to contacting the prospective customers, the sales team should be fully aware of their contact details, needs, habits, spending capacity, motives, etc. This knowledge is essential in selecting the adequate sales appeal. With such knowledge, the customer is approached in a polite and dignified way. A salesperson’s approach is of critical importance as the first impression is the last impression. The salesperson should ideally start his approach by introducing himself and his product to the customer. A friendly smile always makes customer feel at home. When the salesperson is occupied with some other customer, he/she must assure the new customer that he would be attended to at the soonest occasion.

Related activities in Reaya:

Training sessions for salespersons on medical services and hospital departments.

Training sessions for salespersons on personal charisma and conduct code

Carrying out in-house approach demos to explain the rules of a successful approach and then assess the trainees’ progress

Unifying the approach techniques for the salesperson in the company gives a general air of consistency

Objections:

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By the sales staff: personalized and subjective motives to uncomely to the training recurrent objections to the tiring door-to-door approach of customers. By the approached potential buyers: lack of interest in the company’s service can see the approach as time waste or nuisance for them and customer loyalty to other companies

Planned response:

Incentives for salespersons complying to the training (financial incentives and less working hours)

Decreasing door-to-door approaches and encouraging E-commercial approach activities

More personalized approaches towards customers (within acceptable codes of conduct)

3) Presentation:

At this point, the salesperson starts to present the product and highlight its features in brief. The presentation should be continually updated and reformed in light of the customer’s response. The main goal for the salesperson is to continuously hold the attention of the potential buyer and create interest in the product.

Related activities Reaya:

Developing visually appealing and brief presentations training salespersons on the right vocal tone and adequate time frame

in which the presentation should be carried out

continuous in-house assessment of customers’ responses and feedbacks

Objections:

By the sales staff: lack of technical abilities and personal traits to carryout presentations in a timely and visually appealing manner, recurrent cases of inability to understand and correspond to the potential customers’ needs and “buying mood changes”. By the potential buyers: not being motivated or well-informed by the presentation

Planned response:

Changing salespersons assigned to customers in a well-controlled fashion. Continuously updating and reviewing presentation content in light of customer response

4) Demonstration:  

Demonstration is about maintaining customer's interest and arousing his desire. In this step, the salesperson displays and demonstrate the product to the

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potential buyer. The utility and distinctive qualities of the product are fully explained in order for the customer to realize the need for the product to satisfy his wants. Salespersons are rigorously advised in this step not be in a hurry to impress the customer and at the same time avoid controversy. Part of the salesperson skills at this step is to suggest uses of the product very commonly through creating an impulsive urge to possess the product by appealing to the customers’ human instincts.

Related activities Reaya:

Prepare site visits to demonstrate the hospitality services inside the hospitals

Developing presentation content that is more detailed and appealing to the exact wants (including the financial ability) of the potential buyer.

Preparing presentations and demonstration specifically for the Doctors and medical insurance companies

Objections:

By the potential buyers: buyers can be actually not interested in this sale and are merely browsing for purchasing or comparing the company’s offerings to another company.

Planned response:

Prepare virtual (computer graphic and video) demonstrations for customer in order to decrease load on sales staff

Without any pressure or formal obligations, customers at this point can be asked to fill in an application or a purchase request through the company. This step adds formality to the whole process and might deter customers from repudiation.

5) Handling   objections:  

A rule of thumb in the personal selling process is that a sale is not simply achieved bycreating interest and desire. Every individual customer shall strive to make the best bargain for his money. Presentations and demonstrations -though useful in introducing and explaining the product- can also adversely create doubts and questions in the buyer’s mind. The sales staff should have the patience and skills to clear all doubts and objections without entering into a controversy. Added to this, a salesperson should never lose his temper. Popular means of motivating and clearing the doubts of a hesitant or reluctant buyer include testimonials and money-back guarantee. This is because the customer must be convinced that his money is safe from the beginning and that he is making the best use of his money by purchasing the product from this particular company. This is why the salesperson should prove the superiority of the product over the competitive products in order to handle any costumer’s objection. Patience is a must with customers who ask too many queries and takes time in arriving at any decision.

Page 12: Promotion and Personal Selling Exam Solution

Related activities in Reaya:

Highlighting the importance of patience for salespersons to close deals and not lose customers

Prepare presentations on why should the customer feel satisfied with buying the Hospital Services.

Objections:

By the sales staff: lack of patience or not being clear enough on how to respond to customers’ objections.

By the potential buyers: objections regarding the hospitality and services, financial deal, socio-cultural needs, privacy, etc.

Planned response:

Categorize expected objections under hand-able categories: services objections, financial objections, socio-cultural objections, etc.

Prepare offerings and promotional response for expected objections

6) Closing the   sale:

Closing sale is the apex of the personal selling process. Special care should be paid at this step as inappropriate handling of the customer can result in loss of sale. The sales staff should coerce force to close the deal. Instead, the customer should be encouraged to feel that he has made the right and final decision. This is optimally achieved without imposing the salesperson’s personal view on the costumer .It is quite common at this step to perform final adjustment in prices. The salesperson should show maintain same degree of interest in the customer which was demonstrated during the approach step. Purchases should be settled in a cordial manner so that the customer feels inclined to deal with the vendor again. In closing the sale, the product/service should be handed over with speed and accuracy to the customer. Once the purchase is closed, the salesperson should suggest, present and even demonstrate relevant products.

Related activities in the company:

Prepare highly effective and fair legal documents to close the deal and receive the money in exchange for the transaction+ train staff how to maintain customer loyalty for future transactions.

Objections:

By the sales staff: lack of patience and not being clear enough on how to build and maintain customer loyalty for future transactions. By the potential buyers: need to make final adjustments (most commonly in prices)

Planned response:

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Be flexible to customer’s objections and develop loyalty programs and train the sales staff to ensure customer satisfaction

7) Post-sale   follow-up :  

Post-sale follow up is concerned with the activities performed to ensure that the customer’s satisfaction with the purchased item as well as the firm. These activities generically include installation, checking the smoothness of performance, maintenance and after-sales service. Post-sale follow up can very well aid in maintaining customer loyalty and at the same time preserve the good will of the company and enhance evaluate salesman's effectiveness.

Related activities in the company:

Develop a scheduled itinerary for the post-sales activities to be carried out after the sale is closed and assign responsibilities and success criteria for post-sales services

Objections:

By the sales staff: lack of knowledge and unwilling to take responsibility regards post-sale activities. By the potential buyers: distaste due to poor post-sales follow up

Planned response:

explain the importance of aftersales activities to sales staff and how this would surely increase third buying leads in the future and design an incentive program for salespersons based on aftersales follow-up+ rigorously apply the prepared scheduled itinerary for the post sales activities+ get feed backs from customers and act in their light.

Answer of Question Five:

All the below advertisements I did in my work in Andalusia Dental Centers in Jeddah

First ad:

Feminine appeal + Circus Layout

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Second ad:

Fear Appeal + picture window layout

Third Ad:

Rational appeal + Montage Layout

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Fourth Ad:

Youth Appeal + Mondrian grid layout

Fifth ad:

Humor appeal + Picture window layout

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