Marketing the New Venture 231salesperson’s job. Salespersons are sources of market research, passing on customer
satisfaction information and data on how customers are receiving the competition.- Allocatingscarce products when supply cannot keep up with demand is one of the
more difficult tasks of sales.
Personal selling is most appropriate in a relationship that goes beyond mere transac-
tion. In such cases the relationship between salesperson and buyer is based on the sell-
er’s recognition, knowledge, and understanding of the buyer’s problems and needs, and
on the ability to solve those problems and meet those needs. It is one of the most expen-
sive ways to reach customers, but because of the intensity of the salesperson’s involve-
ment, it can be the most appropriate and most effective method.
Publicityis “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 favorable presentation of it on radio, television, or stage that is not paid for
by the sponsor.” By definition publicity is free, but many firms allocate significant budg-
ets to public relations, activities that create a favorable image in the mind of the pub-
lic. These reputation-building tactics, if successful, can be a source of SCA. For exam-
ple, many recent start-ups emphasize their “all natural” products and environmentally
conscious images. These companies are selling an altruistic image.
There are three distinctive attributes of publicity:
- Legitimacy. Many people believe almost everything they see or read, especially
when it comes from a previously credible source such as the local newspaper or tel-
evision station. Sometimes the media report publicity releases as if they were the
product of objective news reporting. - Surprise. A publicity release can catch buyers when they are not expecting a sales
pitch, packaging the information as news, not sales. Buyers who are not receptive
to advertisements or sales calls may listen intently to “news.” - Attractiveness. Like advertising, publicity aims to get the buyer’s attention. Its
context can bring other favorable images to customers’ minds.
Because the media are inundated with requests for publicity, it is not always easy for
a particular firm to stand out. A well-organized event reported in a well-written press
release can help. Good organizational citizenship is also a good source of publicity:
Participation in civic events and clubs, professional and trade associations, philanthrop-
ic activities, and well-regarded political causes are examples.
Sales promotionsare “those marketing activities, other than personal selling, adver-
tising, and publicity, that stimulate customer purchasing and dealer effectiveness.”
Examples include point-of-purchase displays, trade shows and exhibitions, promotional
events, and other nonroutine selling efforts. Sales promotions offer inducements to buy-
ers—reduced prices for items through coupons, volume discounts, or attractive financ-
ing terms. By effectively reducing the price, the seller increases the value to the buyer.
Such promotions are also attention-getters. They are often presented in urgent
terms—“a once-in-a-lifetime opportunity”—suggesting that quick action is needed. This
appeals to the economy-minded, low-income, non-brand-loyal shopper. One of the
most important sales promotions for a new venture is the Grand Opening Sale. This rep-