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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