Marketing and its Relationship to Sales

Professional Selling

Marketing and its Relationship to Sales

1OverviewMarketing versus SalesMarket AnalysisMarketing ObjectivesSegmentation and TargetingMarket PlanningAction Steps and Metrics2Words to WatchVisionMissionEnvironmentTargetSegmentDemographicsPsychographics Chapter 2 #3Words to WatchMarketing MixProductPull StrategyDistributionValue Chain Chapter 2 #4Words to WatchBonus WordsPenetration PricingSkimmingValue PricingPromotions Chapter 2 #5Marketing Versus Sales1Chapter6Sales and MarketingThese are not the same thingBut Sales and Marketing are not ___________

Photo courtesy ou.edu Chapter 2 #7Difference Between Sales and MarketingMarketing is a _____________conceptadapting and adjusting the total business to meet the changing needs of customersSelling is a _______________conceptactivities that get business todayactivity that pays the bills and generates a positive cash flow today!

Chapter 2 #8Marketing deals with the big picture -- what is going on in the marketplace and how you organize your resources to deal with those changesMarketing deals with programs, policies, resources available (people, equipment, inventory, services) distribution, communications with customers, etc.Marketing is setting goals and the plan for reaching itMarketing operates within a time frame of months or yearsSelling is a subset of marketingSelling is what puts legs on marketing planSelling is face to face -- belly to bellySelling is deciding how many calls to make today, who to call on today and tomorrow, what to talk about on the sales callSelling is generating sales dollars to meet budgetSelling operates within a time frame of minuets and daysMust help dealer understand and become both better sellers and marketers Marketing greatly enhances good selling . . .. . . make good selling great!Difference Between Sales and MarketingMarketing looks at customers _____________ _________________Sales looks at customers one by one

Chapter 2 #9Marketing deals with the big picture -- what is going on in the marketplace and how you organize your resources to deal with those changesMarketing deals with programs, policies, resources available (people, equipment, inventory, services) distribution, communications with customers, etc.Marketing is setting goals and the plan for reaching itMarketing operates within a time frame of months or yearsSelling is a subset of marketingSelling is what puts legs on marketing planSelling is face to face -- belly to bellySelling is deciding how many calls to make today, who to call on today and tomorrow, what to talk about on the sales callSelling is generating sales dollars to meet budgetSelling operates within a time frame of minuets and daysMust help dealer understand and become both better sellers and marketers Marketing greatly enhances good selling . . .. . . make good selling great!A working definition of marketing_____________needs and wantsto manage the process of satisfying customersprofitablyDeveloped by Purdue University

Chapter 2 #10Key Words . . .AnticipatingNeeds And WantsTargeted Customers Management ProcessCustomer SatisfactionProfitabilityGood Marketers know what a customers needs are before the customer Knows

InnovationThe sales area should help anticipate needs and wantsOften hears first hand about satisfactionAnd understands customer profits better than any other part of the company Photo Courtesy Ashokagears.net

WE ARE THE ________OF THE CUSTOMER! Chapter 2 #11Marketing DefinedMarketing decisions are made in every area that touches the customerMarketing determines the segments of customers who respond similarly to offersMarketing defines which customer segments will be targetedMarketing responds to the company environment

Chapter 2 #12What Do We Stand For?

Company Mission:Who do we DO in pursuit of our Vision?Company Vision:Who do we WANT our company to be? Chapter 2 #13A Brief Introduction to StrategyPresentFutureResources Chapter 2 #Strategy starts with decisions of what we want the future to look like. Then we determine how we compare on those things today. And then choose how to use our resources to get to the desired future.

14Marketing Plans

Market AnalysisMarketing ObjectivesSegment and Target Market Mix Strategies productpricedistributionpromotion, including salespeopleAction PlansMeasure Results Chapter 2 #Market Planning starts with the same strategy approach. Based on the companys mission and vision, we then assess where we are today and determine what future marketing objectives we want to meet in terms of metrics and with which customers. We then use our resources (marketing mix) over time (action plans) to try to reach our objectives. As we travel down the path, we measure results.15Market Analysis1Chapter16Marketing Environment Chapter 2 #17

Economic SituationClosely intertwined with politicsGlobal and localSupport and tariffsCommodity prices_______________________Consumer spendingAvailability of Capital and Interest ratesCurrency and Exchange rates Chapter 2 #18Social TrendsDemographicsAgesEducationGender______________________Attitudes and OpinionsMotivationsBehaviors, Habits, or Lifestyle

Chapter 2 #19

Political and Regulatory IssuesEPAFDAUSDA

IRSFAAOthers

Chapter 2 #20Technology________________Product DevelopmentProduction AutomationProcess ImprovementsLogisticsKnowledge Systems

Chapter 2 #21

CompetitionExamine all the factors in their marketing mixPrice, Place, Product, Promotion, People____________________ Chapter 2 #22AnalysisA company must also consider its own strengths and weaknesses, as well as the external opportunities and threats.

Combined, these are often referred to as _______________ analyses. Chapter 2 #23Examples of StrengthsProduct performance________________ImageExamples of WeaknessesDeliveryBillingLimited offering

Chapter 2 #24Examples of OpportunitiesBuyers moving into your areaCompetitors leavingAchieving higher efficiencyExamples of ThreatsA new competitorEconomic uncertaintyProducts going ____________

Chapter 2 #25Objectives1Chapter26ObjectivesAre the measurable components of the future desired state.

If the mission of the company were a box. The objectives would state ______________ _____________________ the box should be at some point in the future. Chapter 2 #27ObjectivesFinancialRevenueCashGross Margin_____________Product VolumeNon-Financial_______________Customer TurnoverConcentrationPenetrationProduct Mix

Chapter 2 #28Segmentation and Targeting1Chapter29Segment CharacteristicsMeasurable (Can you find out how many there are?)Substantial (Is it big enough?)Accessible (Can you __________ people in the segment?)Differentiable (can you tell them apart?)Actionable (Can you act on the differences?) Chapter 2 #30 TargetingTargeting or prioritizing some segments does not mean that the general market is not importantTo be most effective, programs and products must be taken directly to those for whom they were targetedDeveloped by Purdue University

Chapter 2 #31An ExampleSome marketers target specific segments based on their __________ or self-image.

Chapter 2 #32Targeted Segments for SalesIn the example for Harley-Davidson, imagine if dealer sales people began to try to target a different segmentBuyers would be ______________Money spent on advertising would be wastedSales would likely drop

Sales targets must be consistent with marketing targets Chapter 2 #33Market Planning1Chapter34Marketing MixThe Marketing Mix is a set of tools used to accomplish marketing objectives:Selecting CustomersProductsPricesPlaces (Distribution)PromotionPeopleIn response to the companys internal and external ________________Target CustomerProductPricePlacePromotionPeople Chapter 2 #35ProductsThe tools marketers use with products include:

ProductsServicesInformation

Often marketers seek to penetrate a market by selling more products to existing customers, which is often referred to as _____________

Chapter 2 #36ProductsProducts may create two types of ________:Tangible Value Easily measured, see, touch, feelIntangible ValueReputationBrandReduced time or convenience

Chapter 2 #37

PricingPrice is the only part of the marketing mix that generates revenueToo low wont cover costsToo high will discourage customersSometimes the salesperson or sales department has ___________ to adjust price Chapter 2 #38Several Methods for Determining PriceMark-up (or cost-plus) pricing adds a set amount or percentage to the cost of the product._____________ pricing match competitorsTarget margin pricing sets prices to achieve a set profit percentage. ROI pricing sets price so that projected sales volumes will achieve company profitability goals.

Chapter 2 #39PricingValue-based pricing is based on willingness to pay rather than production cost______________ new products enter the market at a low price in order to obtain market share quickly.Skim pricing -- new product prices are initially set high so as to capture margin from early buyers.

Chapter 2 #40

PromotionPromotion is the process of informing people about your company or productsIt includes message and media choicesSelling is just one ________________, and is an expensive way to get a message to customers, but can be effectiveMessages from the sales force should be consistent with the companys overall promotional messages

Chapter 2 #41PromotionTwo common strategies ofPromotion include Push and Pull

Push strategies push the product through the _________ by encouraging distributors to sell it.Pull strategies pull the product through the channel by encouraging consumers or end users to demand it.

Chapter 2 #42Promotional Toolsdirect mailtraining seminarswebpagetext updatessamplesbrochurestrade showspress releasesknowledge basesnewslettersadvertisinggiftssponsorshipsindustry activitiespurchase incentives Chapter 2 #43DistributionDistribution is the Place P of the marketing mix.This includes simple things like store hours and ____________

Chapter 2 #44Other Components of DistributionFormulating (to provide product in the right sizes and containers)Shipping Warehousing inventoryTracking/billing for product shippedCustomer serviceCoordinating ____________ Chapter 2 #45PeopleThere are several objectives of the People component of the marketing mixMaking sure people are aligned around a messageMaking sure they have the talents and skills neededMaking sure they know targeted segmentsReinforcing their role as points of difference from competitors Chapter 2 #46

Marketing MixAn Example:

Disney WorldTarget CustomerProductPricePlacePromotionPeople Chapter 2 #47Marketing MixAn Example:

Disney WorldEntertainment Experience$100 per person364 Days/Year?WOM, TV Ads, SellingCastmembersFamilies Chapter 2 #48Action Plans and Metrics1Chapter49

Action StepsAction steps are specific tactics required to reach objectives with specific customer segments

Marketers must determineWhich tool to use whereAnd when Chapter 2 #50MetricsMetrics are different than objectives in that the metrics are ________, used to measure the box of objectives.

Chapter 2 #51MetricsSales people may be asked to track performance and ____________ metricsInformation flow about customers may be tracked in automated systems.Marketing objectives should be monitored and measured throughout the period instead of _________________. Chapter 2 #52Summary1Chapter53Sales success is dependent on marketing strategies and customer needs.Marketing success is dependent on sales efforts and fulfilling customers needs.Satisfaction of customers needs is dependent on ________ sales efforts and marketing strategies Chapter 2 #54SummaryMarketing is a long term strategyMarketing looks at customers in groupsMarketers accomplish the companys mission through analyzing the internal and external environments and using marketing mix tools to bridge the gap between current and future states. Chapter 2 #55SummarySales people are one component of marketing and must work in a manner consistent with the companys marketing plan

Chapter 2 #56