copyright 2003 mcgraw-hill australia pty ltd ppts t/a marketing 4/e by quester, mcguiggan, perrault...

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Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 1 Part 3: The marketing mix Chapter 16: Sales marketing Step 5: Design the marketing strategy

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Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

1

Part 3: The marketing mix

Chapter 16: Sales marketing

Step 5: Design the marketing strategy

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

2

When we finish this lecture you should• Understand the importance and nature of personal

selling• Understand the relationship between personal selling

and promotional strategy• Understand the elements of the personal selling process• Know what tasks the sales manager must perform to

manage the personal selling function• Understand how an appropriate compensation plan can

help motivate and control salespeople• Understand when and where, to use the three types of

sales presentation• Appreciate the importance of providing good customer

service• Appreciate the importance of building long-term

customer relationships

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

3

The personal selling role

• Often the single largest operating expense• 1 out of 10 in the labour force is in sales

work• Increasing professionalism

– Good selling means helping the customer to buy– Represent both organisation and customer– Market information– Planning strategy and allocating effort

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

4

Please insert Fig 16.1

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

5

Please insert Exhibit 16.1

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Basic sales tasks

Supporting

OrderTaking

OrderGetting

Sales job may involvea blend of sales tasks

PLEASE REPLACE WTH FIG 16.2 OVER A COUPLEOF SLIDES

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Supporting Salespeople

• MISSIONARY SALESPEOPLE– Supporting salespeople who work for producers,

calling on their intermediaries and the intermediaries' customers

• TECHNICAL SPECIALISTS– Supporting salespeople who provide technical

assistance to order-oriented salespeople

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Target markets

• Customers often divided into types• Specialist sales people cater for different

areas• Customers with large orders often require

special selling effort

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Sales Territory

A geographic area that is the responsibility of one or more salespeople.

• Bases for setting sales territories

– Geographic areas

– Customer types

– Account size

– Products to be sold

– Any combination of the above

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Telemarketing

• Using the telephone to "call" on customers or prospects

• Rapidly growing in popularity• Reduces travel time and expense• Especially useful for small accounts of less

expensive products• Often used to identify good prospects• Typically uses a prepared sales presentation

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

11

Please insert Fig 16.3

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

12

Please insert Exhibit 16.3a

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

13

Please insert Exhibit 16.4

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Salespeople Selection and Training• A written job description lays the ground work

—by specifying what tasks the salesperson needs to be able to do

• Commonly used selection tools are best when used in combination:– multiple interviews with several different people– personnel and psychological tests– background checks

• Initial and on-going training can help both experienced and inexperienced salespeople– company policies and practices– product information– selling techniques (and customer knowledge)

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Sales Compensation depends on desire for:

• Control• Incentives• Flexibility• Simplicity

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Selling Compensation Alternatives

Straight commission

Combination plan

Straight salary

Sales volume

Totalsellingexpense

PLEASE REPLACE WITH FIG 16.4

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Key Steps inPersonal Selling Process

Prospecting

Follow-up After the Sales Call

Select Target Customer

Plan Sales Presentation - prepared presentation- need satisfaction approach - selling formula approach

Make Sales Presentation- create interest- meet objections- arouse desire

Close Sale(get action)

Follow-up After the Sale

Set Effort Priorities

PLEASE REPLACE WITH FIG 16.5

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Sales Presentations

• The salesperson's effort to make a sale should be carefully planned

• Three basic approaches– prepared ("canned") sales presentation– consultative selling approach– selling formula approach

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Need-satisfactionapproach to salespresentations

Preparedapproachto salespresentations Selling-formula

approach to salespresentations

r

i

Time

Pa

ticipat

on

Salesperson

Customer

Time

Participation

Salesperson

Customer

Time

Participation

Salesperson

Customer

PLEASE REPLACE WITH FIG 16.6-16.8

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

20

Please insert Exhibit 16.7

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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The GAPs Model of Service Quality

Product and serviceProduct and service

Products and servicedelivery

Products and servicedelivery

Product and serviceProduct and service

Customer-driven productand service designs

and standards

Customer-driven productand service designs

and standards

Company perceptions ofcustomer expectations

Company perceptions ofcustomer expectations

External communicationsto customers

External communicationsto customers

CUSTOMER

COMPANY

Gap 2Gap 2

Gap 3Gap 3

Gap 5Gap 5

Gap 4Gap 4

PLEASE USE FIG 16.9

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Actions taken by Consumers in response to Product Dissatisfaction

Dissatisfactionoccurs

Dissatisfactionoccurs

Take actionTake action Take no actionTake no action

Take some formof private action

Take some formof private action

Take some formof direct action

Take some formof direct action

Take some formof public action

Take some formof public action

Stop buyingthat product/brand/store

Stop buyingthat product/brand/store

Warn friendsabout product/

brand/store

Warn friendsabout product/

brand/store

Complain tomanufacturer/

retailer

Complain tomanufacturer/

retailerSeek redress

from business

Seek redressfrom business

Take legalaction to

obtain redress

Take legalaction to

obtain redress

Complain toprivate or

governmentalagencies

Complain toprivate or

governmentalagencies

PLEASE REPLACE WITH FIG 16.10

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Relationship Marketing

• Places particular emphasis on long-term customer satisfaction

• Involves focused selection of specific customers and prospects

• Comprises strategies to build and develop long-lasting and profitable relationships with these customers

• Recognises that many sales situations require more than just a single business transaction

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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Please insert Exhibit 16.9

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy

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What we will be doing in the next chapter

• In the following chapter we will be discussing implementation and control of the planning process

• We will cover – The importance of forecasting in the planning

process– Why effective implementation is critical to

customer satisfaction and the achievement of corporate goals

– How planning and control can be combined to improve the marketing management process