Monday, March 4, 2019
Principle of Marketing
Principles of Marketing advance Overview and personalised merchandising Promotion Mix Personal sell publicise Publicity gross sales Promotion Elements in the dialogue figure out (Fig. 14. 2) Promotion dodging Strategic Objectives Appropriate Tasks figure execution Evaluation and Control Strategic Issues Integration Relationships Goals Information, Persuasion, Reminder Consumer Considerations AIETA Model marking Integrated Marketing Communications (Fig. 14. 1) denote Personal selling gross sales promotion Public relations Direct marketing A work out of the Communications ProcessMarketers View Communications as the direction of the node Relationship Over measure Through the pastime Stages Preselling Preselling sell Selling PostPostConsumption Consumption Consuming Consuming AIETA The Adoption Process Product intent Cycle AIETA and the Promotion Mix The right tool for the job. Awareness Advertising -teaser campaigns -pioneering ads -jingles/slogans -outdoor -internet banners Publicity -newsworthy stunts -news announcements -trade announcements fill 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 fire stories Publicity -consumer welfare reports Personal Selling -mentions -samples -brochures, etc. Personal Selling -benefits (prepared or formula approaches) Personal Selling -consultatory selling Personal Selling -closed deal Personal Selling -consultative selling sales Promotion -demonstrations -displays -tie-ins sales Promotion -trade discounts -trade allowances Sales Promotion -samples -coupons -rebates -price packs -premiumsSales Promotion -patronage rewards -contests Promotion Tar cast beats crowd/Pull Promotion Mix Strategies Strategy that vociferates for dribbleing A hazard on Advertising and Consumer 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 telephoner is How untold to Spend on Promotion. Affordable section of Sales Percentage of Salesestablish on What the Company Can Afford establish 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 determine Based on Determining Objectives & Tasks, Then Objectives & Tasks, Then Estimating cost Estimating Costs Competitive-Parity Competitive-Parity Objective and Task Method Example of Objective and Task Budgeting Sales Management and Personal Selling Strategic objectives Awarenessmentions, samples, etc.I nterestbenefit information, missionary Evaluationconsultative selling Trialconsultative selling (closing) Adoptionconsultative selling The Role of the Sales repel Personal selling is effective beca map salespeople brook probe adjust pull off 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 fosterage Salespeople Training Salespeople Compensating Salespeople Compensating Salespeople Supervising Salespeople Supervising Salespeople Evaluating Salespeople Evaluating SalespeopleSome Traits of frank Salespeople Selecting Salespeople Sales expertness Sales Aptitude Other Characteristics Other Characteristics Selection Process ordinarily Evaluates a Persons Personality Traits Personality Traits uninflected and Analytical and Organizational Skills Organizational Skills Sales Force Organization In-ho map Flexible opi ne Low variable costs Resource drain High frosty costs Agents (Mfr. Reps) Simple Low fixed costs Less require High variable costs Designing Sales Force Strategy and Structure Sales Force Size productive and expensive assets diminish in size of it workload approachSales force size Increases with Decreases with Training Salespeople The Average Sales Training Program lasts for Four Months and Has the Following Goals Help Salespeople Know & distinguish With the Company shape About the Products Learn About Competitors and customers Characteristics Learn How to Make Effective creations Understand Field Procedures and Responsibilities Compensating Salespeople To rip Salespeople, a Company Must Have an To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of several(prenominal) Elements Attractive Plan Made Up of Several Elements bushel Fixed sum up Amount unremarkably a Usually a net profit Salary Variable Variable Amount Amount Usually Usually Commissions Comm issions Or Bon roles Or Bonuses Expense Expense Allowance Allowance For business enterprise For Job Related Related Expenses Expenses Supervising Salespeople Directing Salespeople Directing Salespeople Identify Customer Targets & Identify Customer Targets & Call Norms Call Norms Develop setting 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 Automationmotivation Salespeople Motivating Salespeople Organizational Climate Organizational Climate Sales Quotas Sales Quotas controlling Incentives Positive Incentives Sales Meetings Sales Meetings Sales Contests Sales Contests Honors and Trips Honors and Trips Merchandise/ bills 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 Look For Ways to Increase the Amount of Time Salespeople Spend Selling. EvaluationMatch the measures with the objectives Profit Sales rapture New products New accounts Costs Steps in the Selling Process Prospecting Prospecting Qualifying Qualifying Preapproach Preapproach Approach Approach salesperson Identifies Qualified authorization salesperson Identifies Qualified Potential Customers. Customers. Process of Identifying Good Prospects Process of Identifying Good Prospects and Screening Out Poor Ones. and Screening Out Poor Ones. Salesperson Learns as Much as Possible Salesperson Learns as Much as Possible About a Prospective Customer ahead About a Prospective Customer Before Making a Sales Call.Making a Sales Call. Salesperson Meets the purchaser and Gets Salesperson Meets the Buyer and Gets the Relationship tally to a Good Start. the Relationship Off to a Good Start. Steps in the Selling Process Presentation Presentation Handling Handling Objections Objections Closing Closing cri tical review Follow-Up Salesperson Tells the Product Story 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 later the Sale and Ensures Occurs After the Sale and Ensures Customer Satisfaction and repeat Customer Satisfaction and Repeat Business. Business. SPIN Selling Professional selling Preliminaries are not great Questions/Answers SPIN Situation Problems Implications Needs-Payoffs SPIN selling Easiflo S B S B S Do you use Contortomat machines? Yes, tierce of them. And, are they delicate for your promoters to use? Yes, rather hard, but they leveltually learn.We could solve that operating fuss with our new Easiflo organisation. B What does your form 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 Example Selling Easiflo S Do you use Contortomat machines? (Situation) B Yes, three of them. S And, are they trying 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 only got three people who can use the Contortomats, doesnt that create bottlenecks? (Implication) B No, really, its only when an operator leaves that we have trou ble.While were waiting for a replacement to be trained. S It sounds like the difficulty of using the Contortomat machines whitethorn be causing a turnover problem with operators. Is that right? (Implication) B Yes, people dont like using them, so operators ordinarily dont stay with us long. S What does this turnover spurious in terms of training costs? (Implication) Well, it takes a couple months to get proficient thats maybe $4000 in wages. Plus we pay Contortomat $ five hundred for training. And, $1000 for travel, since that training is off-site.Hey, thats about $5000 perand weve trained at to the lowest degree 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 production losses, doesnt it? (Implication) B Not really. As I said, we avoid bottlenecks by acquiring the other operators to work extra time. Or, we emit the work out. S Doesnt the overtime add even more to your c osts? (Implication) B Yes, thats true. And, even at double pay, the operators dont like working it. That credibly contributes to the turnover.S I can see how sending the work extraneous must increase your costs, but are there other implications? Does the tincture stay the same? (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 grace of the contractors schedule? (Implication) B You dont motivation 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 immaterial. But sending jobs outside reduces quality and creates scheduling problems. B When you bearing at it that way, those C ontoromat machines are creating a very serious problem indeed. haywire approach Contortomats are hard to use. $120,000 is far too much bills 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.