The exam body:
First question:-
Komatro is the health-conscious juice company which began a couple of decades ago when Greg Steltenpohl, Gerry Percy and Bonnie Bassett began squeezing fresh oranges on a $200 hand juicer. The company was growing strongly with annual sales rising 30% per year and approaching $90m. The company had established a strong brand with enormous customer loyalty.
On October 30, 1996, everything changed. Health officials in Washington state informed the company that they had discovered a link between several cases of E. coli 0157:H7 (E. coli bacterial poisoning) and Komatro fresh apple juice.
The link was confirmed on November 5. As the crisis played itself out, one child died and more than 60 people in the Western United States and Canada became sick after drinking the juice. Sales plummeted by 90%, Komatro's stock price fell 34%. Customers filed more than 20 personal-injury lawsuits and the company looked as though it could well be destroyed.
You are the Marcom Manager of Komatra Company, will be writing a press release to handle the crisis that your company is facing.
Second question:-
You have been asked to advise a club to which you belong on how to manage its communication program.
Develop for the club its own communication model “IMC campaign” and explain how the campaign can help the club identify its communication problems and develop better communication program and activities.
Third Question:
Question 3:
Sales promotion is one of the integrated marketing communication tools; it is defined as “a direct inducement that offers an extra value or incentive for the product to the sales force, distributers or the ultimate consumer with the primary objective of creating an immediate sale”. With respect to the two presented sales promotion offers below; Offer 1: Dominos “buy one large pizza and get the other free” and Offer 2: Procter & Gamble “buy Ariel and get Downy for free”. Please analyzing the two below offers, and state how these two offers can affect the consumer Decision-Making process for the promoted item.
Fourth Question:
From your understanding of the personal selling process, describe how could you apply the steps of the personal selling process on one of your products in your company, and explain how you implement it from the first step " prospecting" till
2. Answer of Question one:
KOMATRO LTD Co.
Contact: Haitham M Ibrahim 13, Fox Street
CEO- Komatro LTD Co. Washington, USA
Phone:+1-564-236-777
Fax:+1-02-584-319-9
E-mail: HaithamIbrahim@Komatro.com
Press Release
Komatro 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 ’
3. 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:
4. 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.
5. 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;
6. • 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
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
7. Diversifying the types of communication channels incorporated:
Employing formal marketing communication channels
Formal 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 channels
Relevant 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
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
8. 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 hospitals
o 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
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:
9. 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:
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
10. 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 feat
ures 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
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
11. 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 achi
eved 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.
12. 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)
13. Planned response:
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
14. Second ad:
Fear Appeal + picture window layout
Third Ad:
Rational appeal + Montage Layout