SELLING – art of persuasion/ to create value for a
looking for a more personalised item.
firm at the point of contract.
PERSONAL SELLING- is the personal contact with
one or more buyers for the purpose of making a sale.
CUSTOMER RETENTION AND DELETION- many
companies find that 80 per cent of their sales come
from 20 per cent of their customers.
DATABASE AND KNOWLEDGE MANAGEMENT- the
modern salesforce needs to be trained in the use and
creation of customer databases, and how to use the
internet to aid the sales task.
CUSTOMER RELATIONSHIP MANAGEMENT- customer
relationship management requires that the salesforce
focuses on the long term and not simply on closing
the next sale.
MARKETING THE PRODUCT- the modern salesperson
is involved in a much broader range of activities than
simply planning and making a sales presentation
PROBLEM SOLVING AND SYSTEM SELLING- much of
modern selling, particularly in B2B situations, is based
upon the salesperson acting as a consultant working
with the customer to identify problems, determine
needs and propose and implement effective solutions.
SATISFYING NEEDS AND ADDING VALUE- the modern
salesperson must have the ability to identify and
satisfy customer needs.
CONSUMER MARKETS- are markets where the
distinguishing characteristic is that the customer is
purchasing products and services their own or their
family’s use.
BUSINESS TO BUSINESS (B2B) MARKETS- are
characterised by often large and powerful buyers,
purchasing predominantly for the furtherance of
organisational objectives and in an organisational
context using skilled/professional buyers.
MARKET SEGMENTATION- is the process of
identifying those clusters of customers in a market
that share similar needs and wants and will respond in
a unique way to a given marketing effort.
MARKET SEGMENTATION AND TARGETING- are two
of the most useful concepts in marketing, and a set of
techniques has been developed to aid companies in
their application.
BEST VALUE FOR MONEY- This type is typically bought
by offices and households that have writing
instruments in virtually every room.
SEEKING SPECIFIC BENEFITS- Here consumers are
IMPULSE BUY IMPULSE BUYS- are unplanned.
Innovative designs will attract this segment, largely
because the consumer is buying for pleasure.
THE MARKETING MIX – a concept which is central to
modern marketing practice
PRODUCT- covers anything a company offers to
customers to satisfy their needs.
PRODUCT LIFE-CYCLE- is analogous to the life-cycle
pattern of humans and has four distinct stages –
introduction (birth), growth, maturity and eventually
decline.
PRICING- objectives must be determined, price levels
set, decisions made as to credit and discount policies
and a procedure established for making price changes.
BUYING POWER OF CUSTOMERS- A vital element in
marketing buying.
MARKET-BASED PRICING- commences by considering
the worth or value customers see in owning a product
and considering their opportunities for acquiring
comparable products or brands.
DISTRIBUTION- element of the marketing mix,
particularly the management of physical distribution,
has long been felt to be one of the areas in business
where substantial improvements and cost savings can
be made.
THE INTERNAL CUSTOMER – all employees and
associates of the business are important; they are the
point of contact with the external customer.
THE EXTERNAL CUSTOMER – they buy goods from the
business and they are also customers the business
hopes to attract in the future.
PRICE- Travis Perkins does not aim to be the cheapest.
Its aim is to provide value for money and a service
that customers can rely upon.
PRODUCT- Travis Perkins needs to be aware of
lifestyle and fashion changes when it decides which
products are offered for sale.
PLACE- Accessibility for customer and supplier is vital
to the success of any business.
PROMOTION- All businesses need to tell the customer
what they have to offer.
MARKET POTENTIAL- is the maximum possible sales
available for an entire industry during a stated period
of time.
SALES POTENTIAL is the maximum possible portion of
that market which a company could reasonably hope
to achieve under the most favourable conditions.
SALES FORECAST is the portion of the sales potential
that the company estimates it will achieve.
PROMOTIONAL MIX as selling is only one element in
the promotion part of this mix
PUSH STRATEGY is one in which the focus of
marketing effort is aimed at pushing the product
through the channel of distribution.
PULL STRATEGY relies much more heavily on
advertising to promote the product to the final
consumer
CONSUMERS are individuals who buy products and
services for personal consumption
INITIATOR: the person who begins the process of
considering a purchase. Information may be gathered
by this person to help the decision.
INFLUENCER: the person who attempts to persuade
others in the group concerning the outcome of the
decision. Influencers typically gather information and
attempt to impose their choice criteria on the
decision.
DECIDER: the individual with the power and/or
financial authority to make the ultimate choice
regarding which product to buy.
BUYER: the person who conducts the transaction:
who calls the supplier, visits the store, makes the
payment and effects delivery.
USER: the actual consumer/user of the product.
1. EVALUATIVE (CHOICE) CRITERIA: these are the
dimensions used by consumers to compare or
evaluate products or brands. In the car example, the
8relevant evaluative criteria may be fuel economy,
purchase price and reliability.
2. BELIEFS: these are the degrees to which, in the
consumer’s mind, a product possesses various
characteristics, e.g., roominess.
3. ATTITUDES: these are the degrees of liking or
disliking a product and are in turn dependent on the
evaluative criteria used to judge the products and the
beliefs about the product measured by those criteria.
4. INTENTIONS: these measure the probability that
attitudes will be acted upon. The assumption is that
favourable attitudes will increase purchase intentions,
i.e., the probability that the consumer will buy.
CHOICE CRITERIA are the various features (and
benefits) a customer uses when evaluating products
and services. They provide the grounds for deciding to
purchase one brand or another.
PERSONAL INFLUENCES a second group of factors that
influences the consumer decision-making process
concerns the psychology of the individuals concerned.
BRAND PERSONALITY is the characterisation of
brands as perceived by consumers
LIFESTYLE refers to the patterns of living as expressed
in a person’s activities, interests and opinions
REFERENCE GROUP is used to indicate a group of
people that influences a person’s attitude or
behaviour.
THREE ELEMENTS BY FISHER
1. STRUCTURE: the ‘who’ factor – who participates in
the decision-making process and their particular roles.
2. PROCESS: the ‘how’ factor – the pattern of
information getting, analysis, evaluation and decision-
making which takes place as the purchasing
organisation moves towards a decision.
3. CONTENT: the ‘what’ factor – the choice criteria
used at different stages of the process and by
different members of the decision-making unit.
SIX ROLES IN THE STRUCTURE OF THE DMU:
1. INITIATORS: those who begin the purchase process.
2. USERS: those who actually use the product.
3. DECIDERS: those who have the authority to select
the supplier/model.
4. INFLUENCERS: those who provide information and
add decision criteria throughout the process.
5. BUYERS: those who have authority to execute the
contractual arrangements.
6. GATEKEEPERS: those who control the flow of
information, e.g., secretaries who may allow or
prevent access to a DMU member, or a buyer whose
agreement must be sought before a supplier can
contact other members of the DMU.
CONTENT this aspect of organisational buyer
behaviour refers to the choice criteria used by
members of the DMU to evaluate supplier proposals
ORGANISATIONAL BUYING MAY BE TO SPECIFIC
REQUIREMENTS It is not uncommon in business-to-
business marketing for buyers to determine product
specifications and for sellers to tailor their product
offerings to meet them.
JUST-IN-TIME (JIT) PURCHASING concept aims to
minimise stocks by organising a supply system which
provides materials and components as they are
required.
LEASE is a contract by which the owner of an asset
(e.g., a car) grants the right to use the asset for a
period of time to another party in exchange for
payment of rent.
REVERSE MARKETING is that the purchaser takes the
initiative in approaching new or existing suppliers and
persuading them to meet their supply requirements
OPERATING LEASE is for a shorter period of time, is
cancellable and not completely amortised.
FINANCIAL LEASE is a longer-term arrangement that is
fully amortised over the term of the contract.
EVALUATION OF PROPOSALS AND SELECTION OF
SUPPLIERS- Each proposal will be evaluated in the
light of the criteria deemed to be important to each
DMU member. It is important to realise that various
members may use different criteria when judging
proposals. Although this may cause problems, the
outcome of this procedure is the selection of a
supplier or suppliers.
GLOBALISATION OF MARKETS as domestic markets
saturate, companies are expanding abroad to achieve
sales and profit growth.
FRAGMENTATION OF MARKETS driven by differences
in income levels, lifestyles, personalities, experiences
and race, markets are fragmenting to form market
segments.
INTELLIGENCE: enhancing customer knowledge to add
value to customer relationships
INTERFACES: refocusing salesforce efforts into the
management and exploitation of critical interfaces
that affect customer value (for example, with
customer relationship management and key account
management).
INTEGRATION: the process of welding all the
company’s activities and processes that affect
customer value into a single, integrated and sustained
point of value delivery to customers
SALES CHANNEL is the route that goods take through
the selling process from supplier to customer
FEWER CUSTOMERS institutions and businesses
purchase goods either for use in their own
organisations or for use in the manufacture of other
goods.
COMPLEX PURCHASING DECISIONS buying decisions
often involve a large number of people, particularly in
the case of a public authority where a purchasing
committee may be involved in a major purchase.
THERE ARE A NUMBER OF DIFFERENT TYPES OF
PRODUCTION:
1. JOB (OR UNIT OR PROJECT) PRODUCTION: an item
is produced or constructed to individual customer
requirements. It is difficult to forecast demand in such
circumstances. Examples are ships, tailormade suits
and hospital construction.
2. BATCH PRODUCTION: a number of products or
components are made at the same time, but not on a
continuous basis. As with job production, batches are
normally made to individual customer requirements,
but sometimes batches are produced in anticipation
of orders. Product examples are books, furniture and
clothes.
3. FLOW (OR MASS OR LINE) PRODUCTION: this is
continuous production of identical or similar products
that are made in anticipation of sales. Examples are
motor cars, video recorders and washing machines.
4. PROCESS (OR CONTINUOUS) PRODUCTION: the
production unit has raw materials coming into the
manufacturing process and a finished product
emerging at the end. Examples are chemicals, brewing
and plastic processes.
PHYSICAL EVIDENCE is included because of the
intangibility of services
CONTINUITIES these are sets of merchandise that can
be collected through a series of purchases.
TRADE PROMOTIONS the aim is usually to push
products through the channel towards the customer
EXHIBITIONS are tangentially related to sales settings
as the objective is not to sell from display stands,
although in some circumstances
PUBLIC RELATIONS covers a broader spectrum than
selling or, indeed, marketing