Principle of Marketing

Principles of Marketing forwarding Overview and Personal selling Promotion Mix Personal marketing advertising Publicity gross revenue Promotion Elements in the Communication Process (Fig. 14. 2) Promotion Strategy Strategic Objectives Appropriate Tasks Budget Implementation Evaluation and Control Strategic Issues Integration Relationships Goals Information, Persuasion, Reminder Consumer Considerations AIETA Model rank Integrated Marketing communication theory (Fig. 14. 1) Advertising Personal selling sales promotion Public relations Direct marketing A View of the Communications ProcessMarketers View Communications as the instruction of the Customer Relationship Over Time Through the Following Stages Preselling Preselling Selling Selling PostPostConsumption Consumption overpowering Consuming AIETA The Adoption Process Product Life Cycle AIETA and the Promotion Mix The right tool for the job. sensory faculty Advertising -teaser campaigns -pioneering ads -jingles/slogans -outd oor -internet banners Publicity -newsworthy stunts -news announcements -trade announcements Interest Advertising -information ads -image ads Evaluation Advertising -persuasion ads -image ads -testimonials -comparative adsTrial Advertising -retailer co-op ads -POP materials -sales promotion ads Adoption Advertising -reminder ads Publicity -news coverage -human interest stories Publicity -consumer welf be reports Personal Selling -mentions -samples -brochures, etc. Personal Selling -benefits (prep atomic number 18d or formula approaches) Personal Selling -consultative selling Personal Selling -closed deal Personal Selling -consultative selling gross revenue Promotion -demonstrations -displays -tie-ins gross sales Promotion -trade discounts -trade allowances gross revenue Promotion -samples -coupons -rebates -price packs -premiumsSales Promotion -patronage rewards -contests Promotion TargetsPush/Pull Promotion Mix Strategies Strategy that Calls for Spending A Lot on Advertising and Co nsumer Promotion to Build Up (Pull) Consumer Demand. Strategy Selected Depends on Type of ProductMarket & Product Life-Cycle Stage Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels. Setting the Total Promotion Budget One of the Hardest Marketing Decisions Facing a Company is How Much to Spend on Promotion. Affordable fortune of Sales Percentage of SalesBased on What the Company Can Afford Based on a Certain Percentage Based on a Certain Percentage of Current or Forecasted Sales of Current or Forecasted Sales Based on the Competitors Based on the Competitors Promotion Budget Promotion Budget Objective-and-Task Objective-and-Task Based on Determining Based on Determining Objectives & Tasks, and so Objectives & Tasks, Then Estimating Costs Estimating Costs Competitive-Parity Competitive-Parity Objective and Task Method Example of Objective and Task Budgeting Sales Management and Personal Selling Strategic objectives Awarenessmen tions, samples, etc.Interestbenefit information, missionary Evaluationconsultative selling Trialconsultative selling (closing) Adoptionconsultative selling The Role of the Sales Force Personal selling is effective because salespeople can probe adjust negotiate build Major Steps in Sales Force Management (Fig. 16. 1) Designing Salesforce Strategy and Structure Designing Salesforce Strategy and Structure Recruiting and Selecting Salespeople Recruiting and Selecting Salespeople Training Salespeople Training Salespeople Compensating Salespeople Compensating Salespeople Supervising Salespeople Supervising Salespeople Evaluating Salespeople Evaluating SalespeopleSome Traits of Good Salespeople Selecting Salespeople Sales Aptitude Sales Aptitude Other Characteristics Other Characteristics Selection Process Usually Evaluates a Persons Personality Traits Personality Traits Analytical and Analytical and organisational Skills Organizational Skills Sales Force Organization In-house Flexible Dir ected economic crisis variable costs Resource drain High fixed costs Agents (Mfr. Reps) Simple Low fixed costs Less control High variable costs Designing Sales Force Strategy and Structure Sales Force sizing productive and expensive assets shrinking in size surviveload approachSales force size Increases with Decreases with Training Salespeople The Average Sales Training computer programme lasts for Four Months and Has the Following Goals Help Salespeople Know & Identify With the Company Learn virtually the Products Learn About Competitors and Customers Characteristics Learn How to Make Effective Presentations Understand matter Procedures and Responsibilities Compensating Salespeople To Attract Salespeople, a Company Must Have an To Attract Salespeople, a Company Must Have an Attractive think Made Up of several(prenominal) Elements Attractive Plan Made Up of Several Elements Fixed Fixed totality AmountUsually a Usually a compensation Salary Variable Variable Amount Amount Usu ally Usually Commissions Commissions Or Bonuses Or Bonuses Expense Expense Allowance Allowance For Job For Job relate Related Expenses Expenses Supervising Salespeople Directing Salespeople Directing Salespeople Identify Customer Targets & Identify Customer Targets & Call Norms Call Norms Develop expression Target Develop Prospect Target Use Sales Time Efficiently Use Sales Time Efficiently Annual Call Plan Annual Call Plan Time-and-Duty Analysis Time-and-Duty Analysis Sales Force Automation Sales Force AutomationMotivating Salespeople Motivating Salespeople Organizational Climate Organizational Climate Sales Quotas Sales Quotas Positive Incentives Positive Incentives Sales Meetings Sales Meetings Sales Contests Sales Contests Honors and Trips Honors and Trips Merchandise/ Cash Merchandise/ Cash How Salespeople Spend Their Time (Fig. 16. 2) Service Calls 12. 7% Administrative Tasks 16% Telephone Selling 25. 1% Face-to-Face Selling 28. 8% Waiting/ Traveling 17. 4% Companies L ook For Ways to Increase the Amount of Time Salespeople Spend Selling. EvaluationMatch the measures with the objectives Profit Sales Satisfaction New products New accounts Costs Steps in the Selling Process Prospecting Prospecting expiration Qualifying Preapproach Preapproach Approach Approach Salesperson Identifies Qualified Potential Salesperson Identifies Qualified Potential Customers. Customers. Process of Identifying Good Prospects Process of Identifying Good Prospects and Screening surface Poor Ones. and Screening Out Poor Ones. Salesperson Learns as Much as Possible Salesperson Learns as Much as Possible About a Prospective Customer Before About a Prospective Customer Before Making a Sales Call.Making a Sales Call. Salesperson Meets the Buyer and Gets Salesperson Meets the Buyer and Gets the Relationship Off to a Good Start. the Relationship Off to a Good Start. Steps in the Selling Process Presentation Presentation Handling Handling Objections Objections Closing Closing Fo llow-Up Follow-Up Salesperson Tells the Product report card to Salesperson Tells the Product Story to the Buyer Using the Need-Satisfaction the Buyer Using the Need-Satisfaction Approach. Approach. Salesperson Seeks Out, Clarifies, and Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Overcomes Customer Objections to Buying.Buying. Salesperson Asks the Customer for an Salesperson Asks the Customer for an Order. Order. Occurs aft(prenominal) the Sale and Ensures Occurs After the Sale and Ensures Customer Satisfaction and Repeat Customer Satisfaction and Repeat Business. Business. wrench Selling Professional selling Preliminaries are not important Questions/Answers SPIN Situation Problems Implications Needs-Pay attains SPIN selling Easiflo S B S B S Do you use Contortomat machines? Yes, three of them. And, are they difficult for your operators to use? Yes, sooner hard, but they eventually learn.We could solve that operating difficulty with our new Easiflo syste m. B What does your system cost? S The basic system is about $120,000, and B $120,000 tho to make a machine easier to use? You must be kidding Example Selling Easiflo S Do you use Contortomat machines? (Situation) B Yes, three of them. S And, are they difficult for your operators to use? (Problem) B Yes, rather hard, but they eventually learn. (Implied need) S We could solve that operating difficulty with our new Easiflo system. (Solution) B What does your system cost?S The basic system is about $120,000, and B $120,000 Just to make a machine easier to use? You must be kidding SPIN selling Easiflo S And, are they difficult for your operators to use? B Yes, rather hard, but they eventually learn. S You say theyre hard to use. What effect does this have on your output? (Implication) B Not much. Weve specially trained three people. S If youve lone(prenominal) got three people who can use the Contortomats, doesnt that create bottlenecks? (Implication) B No, really, its only when an op erator leaves that we have trouble.While were waiting for a replacement to be trained. S It sounds like the difficulty of using the Contortomat machines may be causing a turnover problem with operators. Is that right? (Implication) B Yes, people dont like using them, so operators usually dont adhere with us long. S What does this turnover mean in terms of cooking costs? (Implication) Well, it takes a couple months to get proficient thats maybe $4000 in wages. Plus we pay Contortomat $500 for training. And, $1000 for travel, since that training is off-site.Hey, thats about $5000 perand weve trained at least five this year. S So, thats $25,000 in training costs in less than 6 months. If youve trained that many people in so little time, the turnover must result in occupation losses, doesnt it? (Implication) B Not really. As I said, we avoid bottlenecks by getting the other operators to work overtime. Or, we send the work out. S Doesnt the overtime add even more to your costs? (Imp lication) B Yes, thats true. And, even at double pay, the operators dont like working it. That probably contributes to the turnover.S I can see how displace the work outside must increase your costs, but are there other implications? Does the quality stay the aforementioned(prenominal)? (Implication) B Thats actually the biggest problem. I can control the quality in house, but not the contract stuff. S I suppose that sending work out puts you at the mercy of the contractors schedule? (Implication) B You dont want to know I just got off the phone three hours, chasing down a late delivery. S So, from what youve said, because the Contortomats are difficult to use, youve spent $25,000 in training costs this year and youre getting expensive operator turnover.Youve got bottlenecks in production, and they result in expensive overtime and force you to send jobs outside. But sending jobs outside reduces quality and creates scheduling problems. B When you look at it that way, those Contorom at machines are creating a very serious problem indeed. Wrong approach Contortomats are hard to use. $120,000 is far too much property to solve that problem SPIN approach Contortomats cause Difficulty in use $25,000 training Turnover Overtime costs Cost of outside work Loss of quality Scheduling problems $120,000 may be a bargain Build implications. Let the customer discover value.