Principle of Marketing

Principles of exchange packaging Overview and own(prenominal) change advance Mix individualized sell advertizement universality sales procession Elements in the Communication forge (Fig. 14. 2) advance schema Strategic object lenss Appropriate Tasks Budget implementation valuation and Control Strategic Issues integration human relationships Goals Information, Persuasion, Reminder Consumer Considerations AIETA Model show incorporate Marketing Communications (Fig. 14. 1) advertisement individualised merchandising gross r regular(a)ue promotion Public relations Direct marketing A charm of the Communications accomplishMarketers View Communications as the Management of the node consanguinity Over snip by means of the Following legs Preselling Preselling sell Selling PostPost utilization Consumption Consuming Consuming AIETA The Adoption Process crop Life Cycle AIETA and the Promotion Mix The right tool for the job. aw atomic number 18ness advertizement - teaser campaigns -pioneering ads -jingles/slogans -outdoor -internet banners forwarding - novelsworthy stunts -news announcements -trade announcements Interest advertizing -information ads -image ads Evaluation advertizement -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 interest stories Publicity -consumer wel furthere reports ain Selling -mentions -samples -brochures, and so on someoneal Selling -benefits (prepared or economy set outes) Personal Selling -consultatory selling Personal Selling -closed deal Personal Selling -consultative selling sales Promotion -demonstrations -displays -tie-ins gross sales Promotion -trade discounts -trade allowances gross revenue Promotion -samples -coupons -rebates -price packs -premiumsgross revenue Promotion -patronage rewards -contests Promotion TargetsPush/ hook Promotion Mix Strategies scheme that Calls for expenditure A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand. Strategy Selected Depends on Type of ProductMarket &038 Product Life-Cycle Stage Strategy that Calls for Using the gross revenueforce and Trade Promotion to Push the Product Through the Channels. reach the Total Promotion Budget hotshot of the Hardest Marketing Decisions Facing a community is How much(prenominal) to Spend on Promotion. inexpensive Percentage of sales Percentage of SalesBased on What the Company throne Afford Based on a Certain Percentage Based on a Certain Percentage of menstruation or Forecasted Sales of Current or Forecasted Sales Based on the opponents Based on the foes Promotion Budget Promotion Budget object-and-Task Objective-and-Task Based on find out Based on Determining Objectives &038 Tasks, so Objectives &038 Tasks, Then Estimating represents Estimating Costs Competitive-Parity Competitive-Parity Objective and Task Method cha racter of Objective and Task Budgeting Sales Management and Personal Selling Strategic objectives Awarenessmentions, samples, and so onInterestbenefit information, missionary Evaluationconsultative selling Trialconsultative selling (closing) Adoptionconsultative selling The Role of the Sales enduringness Personal selling is effective beca drop salespeople can canvas adjust negotiate build study step in Sales durability Management (Fig. 16. 1) Designing Salesforce Strategy and expression Designing Salesforce Strategy and Structure Recruiting and Selecting Salespeople Recruiting and Selecting Salespeople develop Salespeople provision Salespeople Compensating Salespeople Compensating Salespeople Supervising Salespeople Supervising Salespeople Evaluating Salespeople Evaluating Salespeople nearly Traits of Good Salespeople Selecting Salespeople Sales Aptitude Sales Aptitude Other Characteristics Other Characteristics filling Process usually Evaluates a Persons Personality Trai ts Personality Traits analytical and Analytical and Organizational Skills Organizational Skills Sales motor Organization In-ho office Flexible say Low varying be choice drain High fixed cost Agents (Mfr. Reps) Simple Low fixed costs Less control High variable costs Designing Sales Force Strategy and Structure Sales Force Size productive and expensive assets shrivel up in size reportload approachSales force size Increases with Decreases with Training Salespeople The Average Sales Training design lasts for Four Months and Has the Following Goals Help Salespeople go through &038 Identify With the Company Learn near the Products Learn more or less Competitors and guests Characteristics Learn How to groom Effective intromissions Understand Field Procedures and Responsibilities Compensating Salespeople To inveigle Salespeople, a Company essential move over an To Attract Salespeople, a Company Must Have an Attractive envision do Up of Several Elements Attractive Plan Mad e Up of Several Elements restore Fixed mensuration AmountUsually a Usually a requital Salary Variable Variable Amount Amount Usually Usually Commissions Commissions Or Bon wasting diseases Or Bonuses Expense Expense gross profit margin Allowance For Job For Job associate Related Expenses Expenses Supervising Salespeople tell Salespeople Directing Salespeople Identify node Targets &038 Identify client Targets &038 Call Norms Call Norms Develop survey Target Develop Prospect Target Use Sales Time efficiently Use Sales Time expeditiously one-year Call Plan Annual Call Plan Time-and-Duty analytic thinking Time-and-Duty Analysis Sales Force Automation Sales Force Automation prompt Salespeople Motivating Salespeople Organizational humour Organizational Climate Sales Quotas Sales Quotas confident(p) Incentives Positive Incentives Sales Meetings Sales Meetings Sales Contests Sales Contests Honors and Trips Honors and Trips Merchandise/ bills Merchandise/ Cash How Salesp eople 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 mind For Ways to Increase the Amount of Time Salespeople Spend Selling. EvaluationMatch the measures with the objectives win Sales Satisfaction impudently products New accounts Costs Steps in the Selling Process Prospecting Prospecting Qualifying Qualifying Preapproach Preapproach cuddle Approach sales representative Identifies Qualified effectiveness sales representative Identifies Qualified Potential Customers. Customers. Process of Identifying Good Prospects Process of Identifying Good Prospects and masking let out Poor Ones. and Screening Out Poor Ones. sales representative Learns as Much as Possible Salesperson Learns as Much as Possible About a Prospective Customer onwards About a Prospective Customer Before Making a Sales Call.Making a Sales Call. Salesperson Meets the purchaser and Gets Salesper son Meets the Buyer and Gets the Relationship Off to a Good Start. the Relationship Off to a Good Start. Steps in the Selling Process Presentation Presentation Handling Handling Objections Objections closing curtain Closing Follow-Up 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 on the Sale and Ensures Occurs After the Sale and Ensures Customer Satisfaction and extract Customer Satisfaction and Repeat Business. Business. s readiness Selling Professional selling Preliminaries are not important Questions/Answers SPIN office staff Problems Implications Needs-Payoffs SPIN selling Easiflo S B S B S Do you use Contortomat gondolas? Yes, ternion of them. And, are they catchy for your operators to use? Yes, earlier heavily, but they last learn.We could dis work on that operating difficulty with our new Easiflo system. B What does your system cost? S The fundamental system is most $120,000, and B $120,000 proficient to make a machine easier to use? You moldiness be kidding Example Selling Easiflo S Do you use Contortomat machines? (Situation) B Yes, lead of them. S And, are they difficult for your operators to use? (Problem) B Yes, rather hard, but they lastly 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 essential 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 issue? (Implication) B Not much. Weve specially prepare three people. S If youve yet 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 trouble.While were waiting for a replacement to be trained. S It sounds like the difficulty of using the Contortomat machines may be causing a turnover problem with operators. Is that right? (Implication) B Yes, people applyt like using them, so operators usually move intot stay with us long. S What does this turnover mean in price of facts of life costs? (Implication) Well, it takes a straddle months to get proficient thats by chance $4000 in wages. Plus we pay Contortomat $ vitamin D for training. And, $1000 for travel, since that training is off-site.Hey, thats about $5000 perand weve trained at least quintette this year. S So, thats $25,000 in training costs in less than 6 months. If youve trained that many pe ople in so little time, the turnover must result in production losses, doesnt it? (Implication) B Not really. As I said, we avoid bottlenecks by getting the other operators to work extra time. Or, we send the work out. S Doesnt the overtime add even more to your costs? (Implication) B Yes, thats true. And, even at double pay, the operators fatiguet like working it. That believably contributes to the turnover.S I can feel how displace the work outside must increase your costs, but are in that respect other implications? Does the flavour stay the similar? (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 mercy of the contractors schedule? (Implication) B You dont want to know I just got off the phone three hours, chasing down a late delivery. S So, from what youve said, be piddle the Contortomats are difficult to use, youve spent $25,000 in training costs this y ear and youre getting expensive operator turnover.Youve got bottlenecks in production, and they result in expensive overtime and force you to send jobs outside. But sending jobs outside reduces quality and creates scheduling problems. B When you look at it that way, those Contoromat machines are creating a very serious problem indeed. hurt approach Contortomats are hard to use. $120,000 is far too much money 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.