Pricing and Promotions, IMC, Personnel selling, and sales management, theories of selling, sales force automation

Pricing and Promotions, IMC, Personnel selling, and sales management, theories of selling, sales force automation

MARKETING PRESENTATIONPricing & PromotionsA 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 PromotionDevelop 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.PromotionPersonal 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...ToTraditional AdvertisingDigital/Interactive MediaMass MediaSpecialized MediaLow Agency AccountabilityHigh Agency AccountabilityTraditional CompensationPerformance-Based CompensationLimited Internet AccessWidespread Internet Availability

PERSONAL SELLINGPersonal 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 sellingPerson-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 buyers problem. Features of Personal sellingInitial 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 & PresentationSales 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 ManagementEthical Issues in Sales Management.Kick-backs, bribes and gifts.Price discrimination.Cheating on expense accounts.Misrepresentation.

THEORIES OF SELLING21AIDAS

Right set of circumstances

Buying Formula

Behavioral Equation Four Theories of Selling22A-Securing attention.

I-Gaining Interest.

D-Kindling desire.

A-Inducing Action.

S-Building Satisfaction.AIDAS theory of selling23Theory 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 Circumstances24 The name buying formula has been given by the late E.K. Strong.

It is a step-by-step explanation of the buyers needs.Reduced to its simplest form, the mental processes involved in a purchase are

need solution purchaseBuying FormulaNeed(or problem) solution purchase

satisfactionAfter adding the fourth element, it becomes need product and/or service and trade name purchase satisfaction/dissatisfactionAfter modification in the solution and satisfaction, the buying formula becomes adequacy pleasant feelings

need product and/or service and trade name purchase satisfaction/dissatisfactionAfter 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:DRIVES: a) INNATE DRIVES b) LEARNED DRIVES

Behavioral Equation Theory

2. CUES: a) PRODUCT CUES b) INFORMATIONAL CUES

3. RESPONSE

4. REINFORCEMENTSales 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.

Todays SFA Sales Process

Customized to the companys specific sales policies and procedures, known as sales process managementInclude a sequence of sales activities that can guide reps through each discrete step in the sales processSales process tools are not sophisticated

Activity ManagementOffer calendars to assist in planning of key customer eventsAutomates 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 tasksSales process and activity management are only as good as their ability to be tailored to intervals sales methods

Sales and Territory ManagementSales 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 taskOffering data and reporting options to provide on-demand access to sales activitiesTeams can be linked to headquarters specialistsSales managers can track territory assignments and monitor pipelines and leads for individual territoriesLimits on territories

Contact ManagementSubset of sales force automation that deals with organizing and managing data across and within a companys client and prospect organizationSoftware can contain various modules for maintaining local client databases, displaying updated organization charts, and allowing salespeople to maintain notes on specific clients or prospectsCan answer specific questions quicklyEnable salespeople to communicate their schedules to the organization at largeReal 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 dealsTools:can provide qualified leads through marketing campaigns or lead referralscan also track other prospect attributesThese capabilities can result in answers to questions that previously demanded guesswork

Configuration SupportTools:Allow a salesperson to input client and prospect information into an easy-to-use toolCRM products have evolved to leverage this information by providing product-specific configuration support to companies who must build products for their customersOften use graphical sales process (Figure 4-2) Page 82Order stage is reached, the tool can calculate a product configuration and price quote automaticallyCan then provide forms that facilitate electronic communication of the information to other areas of the company

Knowledge ManagementThe more information the betterSurplus of information To effectively use this information salespeople need easy access to itIntranets are a solutionKM are systems that can locate and store this information and provide users with a single application.Geographical boundaries are now non-existentCampus Overview

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