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Marketing and Selling:

Sales and marketing are different Basic economics Marketing; Channels ; Market Communications Stages in Selling Control and Commissions

Sales and marketing are different 
 

Marketing: What and how to sell Selling: moving the product Relationship management

Marketing  What? ² Product characteristics .ACCTO ² Price sensitivity  Market Characteristics ² Size ² Defensible ² Sustainable   How? ² Channels Inform ² Routes .

Product or Service Requirements     Know about it Opportunity to purchase ² shelf space Satisfy a real or perceived need Affordable (but not too cheap) .

actual and potential ² Demographics  Market surveys ² Qualitative ‡ groups. usability testing ² Quantitative ‡ Surveys. test marketing   Distribution channels Market Communications .A brief introduction to market analysis  Desk research ² Existing market or solutions ² Competition.

Basic Economics I  Demand curve: Price depends on volume Elasticity e = P (Q ---.------(P Q Price P Quantity Q .

Supply Curve  Stable point is at intersection (Spider diagram) Supply S Price P Demand D Quantity Q .

Cost of Production 25 20 15 Money 10 5 0 1 3 5 7 9 11 13 -5 -10 Quantity 15 Unit Cost Unit Price Profit/unit .

Gross Profit 120 100 Money 80 60 40 20 0 1 2 3 4 5 6 7 Quantity 8 9 10 Revenue Expenditure Gross Profit .

Channels   Direct Sales Distributor/Retailer ² Distributors are your customers ‡ National ‡ International  Chose carefully ² changing is expensive and difficult ² Key sales ² Opinion formers .

Direct sales  Bespoke ² sales staff/ Customer relationship manager ² cash flow  Mail order requirements ² ² ² ² ² ² Product Guarantees Stocking Support Key accounts Market communications .

materials. shop front. profit  International ² Localisation ² Country agent ‡ control/performance ² Trade fairs ‡ DTI outward bound missions ‡ Embassy . staff. profit. overheads.Distribution Channel  Typical product ² 40% manufacturer ‡ development. stocking. profit ² 30% retailer ‡ Local adverts. research ² 30% distributor ‡ Advertising.

00 Payback time 2.00 (including initial marketing) 100.00 (guess) 60.00 600.00 1.Ballpark pricing Sales price: Factory price: (60%) Cost (30% of factory price) Net profit/unit (10% of factory price) Annual sales (Million): Profit £M Set-up and fixed costs (£M) : Stocking (6 months at cost) Capital need 1000.00 50.50 years .00 150.00 200.00 60.

Newspapers.MOP ‡ General . specialist magazines   PR Direct mail ² List brokers ‡ 1-2% response ‡ Control and record-keeping .Trade press.Market Communications   Targeting Advertising ² Image ² Message ² Sales . TV ‡ Specific .

Exhibitions     Expensive. hard work Make it obvious Place for meetings. not cold sales Preparation ² ² ² ² Stand Exhibits Manual Travel and accommodation   Be attentive Follow-up ² Timeliness .

Sales techniques: listen to the customer    Needs Concerns Authority .

Stages in Selling         Prospecting Pre-approach Approach Survey Proposal Demonstration Close Service .

exhibitions  How many? ² 10% result in a sale ² Maybe 2 calls per day .Prospecting  Locating the most likely buyers ² Cold calling ‡ Directors Guides. Yearbooks ‡ Local council offices. Chambers of Commerce ‡ Institutional meetings ² Qualified Prospects ‡ Marketing response: Advertising. Mailings ‡ Service organisation. PR.

brochures .PrePre-approach  Research ² Who are the decision makers? ² What is the management structure? ² What are their concerns?  Preparation ² Presentation ² Visiting cards.

establish mutual ground Contact building Generalities .Approach    Listen.

contacts.Survey      Needs. decision points Timescale . requirements Constraints Budget Structure.

 Sell the benefits to the customer ² F.S.B ² U. reliability.A. value is ‡ Lifetime cost ‡ Service.Ps ² Price is not an issue. reputation Proposal  Sales proposal ² ² ² ² ² ² ² ² Introduction Objectives Recommendations Benefits Financial Justification Warranty and service Company Background Price and conditions  Follow-up .

where. maps. car parking. or not   Sum up Agree follow-up . seating ² Catering: coffee.Demonstration   Objectives Administration ² Who. lunch or sandwiches  Script ² Rehearse. accommodation ² Greeting. and stick to the script ² Points to emphasise.

Close     Small step at a time Advantages Customers concerns ² hidden agenda Kicker ² Discount. limited offer .

Service  Relationship management ² ² ² ² communications contact point Regular liaison early warnings   Spec changes and the consequences Meeting milestones .

Planning and Records  Company Name Graded Prospect List Contact Name Phone Fax Decision Makers Potential % Previous Contact Date Who Action Next Contact Date Who Action Address  Company Sales Forecasts ------Time Analysis------Q1 Q2 Q3 Q4 Product Analysis Comments Amount   Call analysis Sales Cost analysis .

targets  Commission ² Don·t stint ‡ Basic salary ² Pay on delivery. or payment .Control and Commissions  Control ² Sales organisation structure ‡ By product ‡ Geographical ‡ By channel. key account  Measurement ‡ ‡ ‡ ‡ Cost per sale Response rate Timeliness Individual measures.