Marketing Strategy for Social Enterprise

Day 2

Part II

Dnet/MSH 1

Dnet/MSH 2

Mass Selling

Personal Selling

Sales Promotion

Different methods of promotion Advertising Publicity

Dnet/MSH 3

• Contests• Coupons• Aisle displays• Samples• Trade shows• Point-of-purchase

materials• Banners & streamers• Frequent buyer

programs• Sponsored events

• Price deals• Promotion allowances• Sales constests• Calendars & gifts• Trade shows•Meetings• Catalogs•Merchandising aids• Videos

Aimed at wholesalers or retailers

• Contests & Bonuses•Meetings• Portfolios & Displays• Sales aids • Training materials

Aimed at company’s own sales force

Aimed at consumers or users

Dnet/MSH 4

Sales Promotion Managers

Advertising Managers

Sales Managers

Marketing Managers

IntegratedMarketing

Communications

Dnet/MSH 5

Persuading

Informing

Reminding

Dnet/MSH 6

Finalconsumers

request (pull)product

Finalconsumers

request (pull)product

Businesscustomers

request (pull)product

Businesscustomers

request (pull)product

Producer’s promotion blendPersonal selling, sales promotion, advertising,

and publicity

Producer’s promotion blendPersonal selling, sales promotion, advertising,

and publicity

Wholesalers’promotion

push

Wholesalers’promotion

push

Retailers’promotion

push

Retailers’promotion

push

Wholesalers’promotion

push

Wholesalers’promotion

pushPromotionto businesscustomers

Promotion to channel members

Promotionto final

customers

Dnet/MSH 7

Innovators(3–5%)

Laggards ornonadopters

(5–16%)

Earlyadopters(10–15%)

Earlymajority

(34%)

Latemajority

(34%)

Time5

20

50

90

Dnet/MSH 8

Dnet/MSH 9

“This new idea is good”

“Our brand is best”

“Our brand is better, really”

“Let’s tell those who

still want our product”Dnet/MSH 10

Percentage of Sales

Task Method

Dnet/MSH 11

Sales force provides market

information

Helping to buy is good selling

Requires strategy decisions

Salespeople can be strategy

planners

Personal Selling

Is Important

Salespeople represent whole

company & customers

Dnet/MSH 12

Trained, Not Born

Specific, Written Job Description

All Salespeople Need Training

Dnet/MSH 13

Consultative Approach

Selling Formula

Approach

Prepared Approach

ThreePresentationApproaches

Dnet/MSH 14

Evaluate needs

Preplan sales call and presentation(s)

Set effort priorities

Select target customer

Prospect

Close the sale (get action)

Make sales presentation

Follow up after sales call to establish

relationship

Follow-up after the purchase to maintain

and enhance relationship

Feedback

Dnet/MSH 15

Dnet/MSH 16

Profit orientedTarget return

Maximize profits

Sales oriented

Dollar or unit sales growth

Growth in market share

Status quo oriented

Meeting competition

Nonprice competition

Pricing objectives

Dnet/MSH 17

$10

$20

$100

$60

$40

$20

Cost per unit = $80

$100 list price

10% price cut new price = $90

50% profit margin cut

Dnet/MSH 18

Dnet/MSH 19

Dnet/MSH 20

Dnet/MSH 21

Dnet/MSH 22

Price (P)

Qty (Q)

Rev (R = PxQ)

Total

VC (TVC)

Fixed Cost

(FC)

Total Cost

(TC=TVC+FC)

Profit (P=R-

TC)

Marginal revenue (MR*)

Marginal Cost (MC*)

Marginal Profit

(MP*) $200 0 $0 $0 $200 $200 -$200

175 1 175 60 200 260 -85 $175 $60 $115160 2 320 120 200 320 0 145 60 85145 3 435 180 200 380 55 115 60 55135 4 540 240 200 440 100 105 60 45125 5 625 300 200 500 125 85 60 25115 6 690 360 200 560 130 65 60 5105 7 735 420 200 620 115 45 60 -15

95 8 760 480 200 680 80 25 60 -3585 9 765 540 200 740 25 5 60 -5575 10 750 600 200 800 -50 15 180 -16565 11 715 660 200 860 -145 -45 180 -225

17-23

Dnet/MSH 23