Download - Marketing management ii
Pricing and Promotions, IMC, Personnel selling, and sales management, theories of selling, sales force automation
MARKETING PRESENTATION
Pricing & Promotions
“A price is not merely a function of costs and
margins...it is an expression of value.”
Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing
affects other marketing mix elements such as :-
• Product Features• Channel decisions• Promotion
Develop marketing strategy. Make market-mix decisions. Estimate the demand curve. Calculate cost. Understand environmental factors. Set pricing objectives. Determine pricing.
While there is no single recipe to determine pricing. The following is a general sequence of steps that might be followed for developing the pricing of a new product :-
Personal sellingMass sellingAdvertisingPublicitySales promotion.
Promotion
Personal selling- Is direct communication between seller and buyer.
Mass selling- Is non-personal selling. Advertising- Is a form of mass-selling. Publicity- Is an information that concerns
a person, group, event, or product and that is disseminated through various media to attract public notice.
Sales promotion- Is one of the seven aspects of the promotional mix.
According to American Marketing Association IMC or Integrated Marketing Communication is “A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.”
Five major shifts in the worlds of advertising, marketing and media have caused an increased interest in (and need for) IMC. These include:
Why IMC?
Shift From... To…
Traditional Advertising Digital/Interactive Media
Mass Media Specialized Media
Low Agency Accountability High Agency Accountability
Traditional Compensation Performance-Based Compensation
Limited Internet Access Widespread Internet Availability
PERSONAL SELLING
‘Personal selling’ is the most widely used means by which organizations communicate with their customers.
It involves oral conversations, either by telephone or face-to-face, between salespersons and prospective customers.
Personal selling
Person-to-person conversation. Between prospective buyer and the seller. So, it
involves in developing relationships between the buyer and seller.
Direct human contacts. Matching products to needs. Results in discovering and communicating customer
needs and thus able to understand and solve buyer’s problem.
Features of Personal selling
Initial contact. Establish rapport - Use of verbal and non verbal
communication. Make a good impression. Problem solver for prospective buyers - Tell the product story. Collect information. Use of appropriate sales aids (computers, videos, brochures,
etc). Know when to close after narrowing the alternatives.
Way of Approach & Presentation
‘Sales Management’ is the marketing management activity dealing with planning, organizing, directing, and controlling the personal selling effort. This includes recruiting, training, supervision, motivation, evaluation, and compensation of sales personnel.
Sales Management
Planning Setting sales objectives.
Organizing 1. Organizing sales activities. 2. Recruiting and selection.
Directing 1. Training and development. 2. Motivation & compensation.
Control Evaluating and controlling.
Sales Management
Ethical Issues in Sales Management.
Kick-backs, bribes and gifts.
Price discrimination. Cheating on expense
accounts. Misrepresentation.
THEORIES OF SELLING
AIDAS
“Right set of circumstances”
“Buying Formula”
“Behavioral Equation”
Four Theories of Selling
A-Securing attention.
I-Gaining Interest.
D-Kindling desire.
A-Inducing Action.
S-Building Satisfaction.
AIDAS theory of selling
Theory can be summarized as “Every thing was right”.
This theory is also known as “Situation-response” theory.
A sales person needs to be well skilled to handle the set of circumstances.
“Right Set of Circumstances”
The name “buying formula” has been given by the late E.K. Strong.
It is a step-by-step explanation of the buyer’s needs.
Reduced to its simplest form, the mental processes involved in a purchase are
need solution purchase
Buying Formula
Need(or problem) solution purchase
satisfaction
After adding the fourth element, it becomes
need product and/or service and trade
name purchase satisfaction/dissatisfaction
After modification in the solution and satisfaction, the buying formula becomes
adequacy pleasant feelings
need product and/or service and trade name purchase satisfaction/dissatisfaction
After adding adequacy and pleasant feelings, it becomes
Using a stimulus response model and incorporating findings from behavioral research, J.A. Howard explains buying behavior in terms of the purchasing decision process, viewed as phases of the learning process.
Four essential elements of the learning process included in the stimulus-response model are:
1. DRIVES: a) INNATE DRIVES b) LEARNED DRIVES
“Behavioral Equation” Theory
2. CUES: a) PRODUCT CUES b) INFORMATIONAL CUES
3. RESPONSE
4. REINFORCEMENT
Sales Force Automation(SFA)
Sales Force Automation is an important customer relationship management function that enhances the operations of the sales team. It focus on cultivating customer relationships and Improving customer satisfaction.
Today’s SFA Sales Process
◦ Customized to the company’s specific sales policies and procedures, known as sales process management
◦ Include a sequence of sales activities that can guide reps through each discrete step in the sales process
◦ Sales process tools are not sophisticated
Activity Management◦ Offer calendars to assist in planning of key
customer events◦ Automates both individual and organizational
to-do list ◦ Provides valuable post factor analysis of a sales
cycle; which allows the team to examine the duration and procedures involved in critical tasks
◦ Sales process and activity management are only as good as their ability to be tailored to intervals sales methods
Sales and Territory Management
Sales managers oversee tens or hundreds of sales teams and cannot stay abreast of every active sales initiative
Sales management tools can enable them to manage this large task◦ Offering data and reporting options to provide
on-demand access to sales activities◦ Teams can be linked to headquarters specialists◦ Sales managers can track territory assignments
and monitor pipelines and leads for individual territories
◦ Limits on territories
Contact Management◦ Subset of sales force automation that deals with
organizing and managing data across and within a company’s client and prospect organization
◦ Software can contain various modules for maintaining local client databases, displaying updated organization charts, and allowing salespeople to maintain notes on specific clients or prospects Can answer specific questions quickly Enable salespeople to communicate their schedules to
the organization at large◦ Real value of CM is in its capability to track
where customers are and who they are in terms of their influence with sales management functions
Lead ManagementAlso known as “opportunity management” and
“pipeline management”
◦ Aims to provide foolproof sales strategies so no sales task, document, or communication falls through the cracks
Sales people follow a defined approach to turning opportunities into deals
Tools:◦can provide qualified leads through marketing
campaigns or lead referrals◦can also track other prospect attributes◦These capabilities can result in answers to
questions that previously demanded guesswork
Configuration Support Tools:
◦ Allow a salesperson to input client and prospect information into an easy-to-use tool
◦ CRM products have evolved to leverage this information by providing product-specific configuration support to companies who must build products for their customers
◦ Often use graphical sales process (Figure 4-2) Page 82◦ Order stage is reached, the tool can calculate a
product configuration and price quote automatically◦ Can then provide forms that facilitate electronic
communication of the information to other areas of the company
Knowledge Management The more information the better
◦ Surplus of information ◦ To effectively use this information salespeople need
easy access to it Intranets are a solution
◦ KM are systems that can locate and store this information and provide users with a single application.
◦ Geographical boundaries are now non-existent
Campus Overview
907/A Uvarshad, GandhinagarHighway, Ahmedabad – 382422.
Ahmedabad Kolkata
Infinity Benchmark, 10th Floor, Plot G1,Block EP & GP, Sector V, Salt-Lake, Kolkata – 700091.
Mumbai
Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai – 400 064.
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