Effective Selling And Marketing - principles, techniques & practice

EFFECTIVE SELLING AND MARKETING

principles, techniques & practice 

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PREFACE

In the modern business world, knowledge of sales and marketing management would give an edge to the entrepreneur. If he is not knowledgeable in sales and marketing, at least he should employ a sales or marketing manager who is.

We are now living in a high-tech world, where we have to keep upgrading our technology regularly. One area of technology that might have been ignored could be marketing and selling skills, which could have been taken for granted. What is the point of upgrading our products or services with new technologies when our marketing people are deficient in the marketing skills or knowledge to sell them?

There are a host of B-schools in the U.S. and the U.K. that conduct business courses for those in business, selling and marketing. Perhaps, the most famous one is the Harvard Business School, which is well-known for its case studies.

The busy businessman or professional might not have the time to take up a course with Harvard Business School or the like to acquire some marketing knowledge. But, a simple book like Effective Selling And Marketing, which is the author’s second sales and marketing book, would surely help to fill up the gaps in his sales and marketing knowledge.

For serious students of sales and marketing, especially those who are sitting for sales and marketing exams, Effective Selling And Marketing would be good revision material.

For the great benefit of those about to enter or already in the field of sales and marketing, or, in business, six actual marketing plans carrying some industry trade secrets (previously implemented by the author), and, information on finance, aids and incentives are there to lend a helping hand. Selling and marketing techniques, including the latest in marketing through the world wide web, are also included. Two challenging case studies are included as well in the book to whet the reader’s appetite for marketing aggression.

In two long chapters towards the end of the book, the author shares with the reader his considerable experiences in sales and marketing, providing some important tips at the same time.

This book has been adopted as a reference text by two professional bodies and has been commended.

Kerwin Mathew, Ph.D., CPM

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CONTENTS

PART ONE  -  PRINCIPLES & TECHNIQUES

1)  Introduction To Marketing

2)  Functions Of A Marketing Executive

3)  Marketing Effectiveness

4)  The Marketing Environment

5)  Marketing And Finance

6)  Marketing Research

7)  Product Policy

8)  Marketing Communication

9)  Sales Management

10)  Channels Of Distribution

11)  Pricing And Demand

12)  Marketing Of Industrial Goods And Services

13)  International Marketing

14)  Consumer Behaviour

15)  Market Characteristic

16)  Break-even Analysis

17)  Marketing Mix And Its Manipulation

18)  Marketing Plan

19)  The World Wide Web And Its Importance To The Marketer

20)  Selling

21)  Attitude Towards Customers And Prospects

22)  Epiloque

PART TWO  -  PRACTICE

A)  Actual Examples Of Marketing Plans:

i)    Marketing Plan For ABC Realty Pte. Ltd.

ii)  Marketing Plan For Taff, Pax And Fork-lift Trucks

iii)  Marketing/Business Plan For Hi-Tech Electronics Business

iv)  Marketing Plan For Dot.Com Business

v)  Marketing Plan For Computers, Peripherals, Software And Back-Up Services

vi)  Brief Marketing Plan For CAD/CAM Equipment

B)  Case Studies

APPENDIX  -  FINANCE, AIDS AND INCENTIVES FOR BUSINESSES

i)   Finance For The Businessman

ii)  Financial Aids And Tax Incentives For The Businessman

PART ONE  -  PRINCIPLES & TECHNIQUES 

1  INTRODUCTION TO MARKETING

Everyone is probably familiar with the terms, market and marketing. In fact, we are part of the market. In short, we are all the market. When companies say they are aiming their product(s) at a certain section or niche of the market, they are, in effect, aiming them at some of us, e.g., the upper middle-class, the housewife, or, the student.

Marketing is the reasoned study of the market, whereby the marketer, or the person carrying out the marketing activity, carries out a systematic analysis of the market, applying market research techniques, statistical methods and sound business judgement. The result is a marketing plan incorporating the marketing/sales activities that are to be carried out in the forthcoming year.

Objectives Of Marketing

The aim of marketing is to make selling superfluous. In marketing, we should strive to know and understand the customer so well that the product or service fits him and sells itself.

Marketing is a human activity directed at satisfying needs and wants through exchange processes. It involves appealing to and satisfying the following human needs:-

Self-Actualisation Needs 

(Need for challenge & self-improvement)

Esteem Needs

(Need for respect and admiration)

Social Needs

(Need for friendship and companionship)

Safety/Security Needs

(Need for physical safety, job security &

retirement security, even, in the form of pension, etc.)

Physiological Needs

(Need for the basics of life, i.e., food, clothing & shelter)  

Abraham H. Maslow’s Hierarchy Of Needs

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How should the marketer go about appealing to his market? He could certainly do so through advertising, distributing sales brochures, selling (making sales pitches), etc.. He could apply the AIDA communication strategy, viz., creating:-

1)  Attention (Make the potential customer aware of your product or service.)

2)  Interest (Make him want to know more about your product or service.)

3)  Desire (Make him want your product or service.)

4)  Action (Make him buy your product or service.)

The marketer could be regarded as the march-maker, whose job is to match-make the supplier/manufacturer (bridegroom) and the customer (bride):-

Customer      ←     Marketer      →       Supplier/Manufacturer

(Bride)    (Match-maker)      (Bridegroom)

Marketing requires the acceptance of consumer orientation by the board of directors, chief executive, management and employees in every activity within the organisation.

This marketing philosophy then becomes the major driving and co-ordinating force of the whole enterprise. In other words, the customer must come first in the mind of everyone within the organisation. (The CUSTOMER is KING.)

Unfortunately, in many organisations, this is hardly the case. It is up to top management and the marketing department to provide the necessary training and the guidance within the company to ensure that the CUSTOMER is given TOP PRIORITY. This should help the company to survive and do well in a highly competitive market.

The three fundamentals of the marketing function as a whole are as follows:-

1)  The recognition and anticipation of demand.

2)  The stimulation of demand.

3)  The satisfaction of demand. 

2  FUNCTIONS OF THE MARKETING EXECUTIVE

There seems to be considerable confusion as to the roles of the marketing executive and the sales executive. We are not unfamiliar with the sight of the well-attired gentleman in tie, plain long-sleeved shirt and dark pants, carrying a stylish brief-case, whose business card might flash such titles as sales executive, sales engineer, or, product specialist. This person is normally the salesperson who carries out personal selling activities, who directly bears upon a potential customer to coerce him or her into placing an order for his product(s) or service(s).

However, the marketing executive does something that is more of a management nature (a function which is also normally performed by the sales manger). He is normally involved in the following activities:-

1)  He directly controls marketing research.

2)  He directly controls advertising and sales promotion.

3)  He directly controls sales and distribution.

4)  He directly controls after-sales service.

5)  He is closely involved in product planning.

6)  He is closely involved in product development.

7)  He is closely involved in public relations and promoting the company’s image.

As in the other professions, the marketing executive needs to have certain qualities. The following are some of the qualities the marketing executive ought to possess:-

1)  He should have good conceptual quality (foresight and analytical mind).

2)  He should be good at planning.

3)  He should be good at implementing (executing and evaluating plans).

4)  He should have a good understanding of economics, the behavioural

sciences, finance, statistics, mathematics and operational research.

What Does Marketing Involve?

Marketing basically involves the following (mix):-

1)  Product (planning)

2)  Pricing

3)  Place (of distribution)

4)  Promotion

We call them the 4 Ps!!!

Other Factors To Be Considered

The marketer should also be concerned with demographic factors such as:-

1)  Social influences, e.g., culture, values, etc..

2)  Urban & rural communities/population. 

3)  Family income levels.

4)  Occupation.

5)  Education.

6)  Age.

7)  Sex.

8)  Informal social group membership.

9)  Race or nationality.

10) Religion.

3  MARKETING EFFECTIVENESS

The marketer match-makes the manufacturer and the consumer. He is responsible for the distribution of the product from the manufacturer to the consumer.

Marketing is aimed at making the customer know and understand the product or service so well that it fits him and sells itself. It is a human activity directed at satisfying needs and wants through exchange processes. It is a system of business activities designed to plan, price, promote and distribute goods and services for the benefit of the market (both present and potential household consumers and industrial users).

What Marketing Is

Marketing involves a managerial and systems definition. It has to be consumer oriented, i.e., consumers’ wants and needs have to be satisfied effectively. It involves a wide range of activities and is interrelated with other company activities. To be successful it should maximise sales and profits in the long run  -  there should be repeated purchases from customers.

It includes selling, merchandising, the utilising of distribution channels, e.g., retailers and wholesalers, and physical distribution, e.g., transportation, warehousing and stock control. It involves all activities that are carried out in putting a product on the market.

More than one-quarter of the workforce here is employed in jobs related to marketing, signifying the importance of marketing.

The Consumer

The consumer is the core of any marketing effort. He could be considered the final judge of whether the company will succeed or fail. Any marketing effort is ultimately aimed at the consumer.

The marketer can to some extent influence the consumer and must understand how the consumer behaves and what makes him prefer one product over another, as well as what influences his purchase decision.

The consumer has the following needs: physiological needs, safety/security needs, social needs, esteem needs and self-actualisation needs (in accordance with Maslow’s Hierarchy of Needs).

The following is the process of influencing a consumer’s purchase decision:-

a)  An unsatisfied need creates tension, which in turn activates motives and

wants.

b)  Certain motives and wants create a favourable orientation towards certain

products, which leads to a purchase decision.

c)  The consumer’s motives and wants are influenced by his internal attributes

and the external factors.

d)  The consumer’s perceptual filter determines what external factors will finally

affect him.

e)  The consumer’s purchase decisions and the external factors will affect his

internal attributes.

Needs Influence (Internal Influence)

The consumer has needs. The presence of unsatisfied needs enables the marketer to find those goods and services that will satisfy the customer. As needs cannot be fully satisfied at any one time, the marketer can sell many types of goods and services.

The marketer does not depend on the economic value of the product to make a sale. To appeal to the higher level needs of the consumer such as the self-esteem and the self-actualisation needs, the marketer could resort to methods such as better sales promotion and advertising, which emphasise the product attributes other than the price.

Motives And Wants Influence (Internal Influence)

Motives and wants, unlike needs, are learnt from contacts in the environment and are not innate in people. The same set of needs will generate different motives and wants. Unsatisfied needs create tension and generate motives and wants.

Satisfying these unfulfilled needs would reduce tension. An understanding of the consumer’s motives and wants would affect the marketer’s advertising, product pricing and channeling policies.

Other Internal Influences  

Stored Information

Stored information is information about a good or service, a suitable price and the seller gathered from previous buying experience, friends or relatives, or some other source. It may not be complete or related to the marketer’s product.

The marketer should find out how much the buyer actually knows about his product. He should then try to correct any mistaken notion, fill the gaps in existing information, and, connect all the information so that it makes sense to the buyer.

Personality Of Consumer

Everyone has an unique personality. The marketer should sell products that are suitable for certain types of personalities. He could create certain personality traits through his products, e.g., certain clothes give a feeling of being outgoing and daring while others may be viewed as conservative.

The marketer should know the personality traits of consumers and their implications for his marketing strategy.

Attitudes Of Consumers

The attitudes of consumers are usually the result of experience or both home and school education. They are actually loosely held views or opinions which can be changed or cultivated.

They could be changed by the marketer to some extent. The marketer could correct any unfavourable attitude of consumers towards his product by developing more goodwill through corporate advertising or performing some social and public services.

Values Of Consumers

The consumer normally has strongly held attitudes about what is desirable and undesirable  -  what ought to be rather than what is.  These attitudes may be considered a part of legal, political and business decisions and are very difficult to change or influence.

The marketer should avoid offending certain values strongly held by consumers. He should ensure that his pricing and advertising strategies do not upset the value system of any group of consumers. Values are not as easily changed as attitudes but could be changed with time.

Perceptual Filter

Needs cannot be influenced. Other internal characteristics such as motives, wants, stored information, personality, attitudes and values could be influenced through the perception and learning processes.

The perceptual filter changes the effects of external factors on consumers. It also eliminates some of the external factors that can influence consumer behaviour.

Perception and learning are affected by both the internal and external factors. Perception largely depends on what is actually seen, past experiences, values and needs. Simultaneously, there is learning from previous purchase decisions. This learning from previous purchase decisions affects how one would perceive the next purchase.

Other Influence (External Influence)

Consumer’s Purchase Decision And External Factors

The consumer’s purchase decision is also affected by external factors, such as marketing and environmental factors. The marketing factors are the four Ps of marketing, viz., product, price, promotion and place. The environmental factors include competition, supply, government