Page 186 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes
The plan is to send catalogues to people who have moved or who no longer are active
buyers. They can then order directly through the company or through a salesperson.
Initial expectations are modest. Avon hopes catalogue sales will reach $25 million the first
year. In the long run, Avon hopes to penetrate major cities and suburbs, the places where
much of the female work force is absent at prime selling times. Avon is also increasing the
use of toll free numbers in conjunction with this strategy.
Questions
1. What are the significant issues in the case?
2. Do you think Avon’s approach in response for changing conditions is right for
products that need personal contact by saleswomen?
3. Suggest any other solution than what Avon is planning to do.

Source: Pat Solan, ”Avon Looks Beyond Direct Sales,” Advertising Age, February 22, 1993

10.2 Public Relations

Public relations' is defined in a variety of ways by different authors. Institute of Public Relations,
UK defines it in the following words:
"Public relations practice is the deliberate, planned, and sustained effort to establish and maintain
mutual understanding between an organisation and its public."

According to Raymond Simon, perhaps the most comprehensive definition has been offered by
Public Relations, which is the weekly newsletter of the industry:
"The management function which evaluates public attitudes, identifies the policies and procedures
of an organisation with the public interest, and executes a programme of action (and
communication) to earn public understanding and acceptance."
The first step is to determine the target audience because the objectives could be totally different
for each different public segment. The target audiences may be internal or external.

Internal audiences are employees of the company, company shareholders, and unions. All these
groups have their stakes in the company and are also referred as internal stakeholders. Employees
in different locations, unions, and shareholders should receive relevant information regularly
about company activities.
External audiences include channel members, customers and other important groups. Customers
may be strongly influenced positively or negatively by promotional campaigns or publicity.
Channel members can directly affect a company's operations and mass media promotions, and
company sales people maintain relevant information flow. Media may or may not report
publicity, and great care should be taken to release interesting information to print and
audiovisual media. Financial institutions lend money and are interested in financial well being
of the company and also the goodwill company can generate. Lastly, government, special interest
groups, and communities keep a watch that concerns environmental pollution, harassment of
women employees, or any other unfair treatment of employees.

10.2.1 Setting Objectives

Marketing Public Relations (MPR) can serve to accomplish a variety of promotional objectives.
Some of them are:
1. Build Excitement Prior to Product Introduction.

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