Transcript Basic Sales Skills - Charles Warner`s Website

The Media

The commercial media consist of enterprises
that:
1.
2.

Create or acquire content.
Distribution of content (news, information,
entertainment, or data) to an audience.
Content ----- Medium ----- Audience
(Method of distribution)
Packaging or Retail
Media Industry Structure
Distribution:
*
Distribution:
Segment
Content
Key
Function
* Creative data
production
* Aggregation
* Marketing and
promotion
* Wholesale
distribution
* Delivery to
final customer
Examples
* Artist/production
house
* Author/imprint
* Journalist/title
* Cable channel
* Book publisher
* Newspaper/
magazine publisher
* TV/radio network
* Cable systems
* Book retailer
* Newsstands/postal
services
* Newspaper delivery
* Local TV/radio
stations
* Billboards
Packaging
* The Curse of the Mogul, Knee, Greenwald, and Seave, Portfolio, 2009.
Retail
Mapping to Assess Competitive Advantage
D
e
c
r
e
a
s
i
n
g
A
d
v
a
n
t
a
g
e
Increasing Competitive Advantage * (# of competitors go down)
Content
Continuous (ongoing relationship)
Mixed
Discrete (one
time, no scale)
Packaging
Retail
Physical (sales
force)
Local *
Hybrid
Mixed
Electronic
* Barriers to entry
*The Curse of the Mogul, Knee, Greenwald, and Seave, Portfolio, 2009.
National/Global
Media Business Models
Advertising
Only
(Single Rev.
Stream)
Advertising/
Subscription
Transaction
Subscription Hybrid Only
(Single Rev.
(Dual Rev. Stream) (Single Rev. Stream) Stream)
TV
Cable
HBO
DVDs
Radio
Newspapers
Newsletters
Music
Google
Magazines
Mobile
Outdoor
Content
access
is free
Content creation, distribution,
and advertising-delivery
business
Movies
Content
access
cost is low
Content creation,
distribution, access, and
advertising-delivery
business
Content
access
cost is
higher
Content creation,
distribution, and
access business
Content
ownership
cost is
highest
Content creation,
distribution, and retail
business
Supply and Demand

Demand for advertising opportunities is up
–
–

Global ad spending increases every year 2-4%
Especially demand for video advertising online and in
mobile (online growth +15%, mobile +25%)
Supply of advertising inventory has gone from
scarcity to abundance
–
–
All TV, radio pricing used to be based on scarcity,
now just big, live events are
Newspaper and magazine pricing used to be based on
size and placement, now it’s a mess
The Internet Changed Everything


Advertising opportunities – inventory – is
abundant, in fact it’s virtually infinite
Search (Google) garners about half of all online
advertising revenue
–
–
–

Performance-based (CPC) pricing
Relevance of results
A million customers
TV CPMs have gone up slightly, but ratings have
plummeted, thus revenue is down.
The Internet Changed Everything

Selling media
–
–
–

Ad Words
Negotiating more
DSPs (demand-side platforms)
Buying media
–
–
Networks, exchanges, and trading desks (SSPs,
supply-side platforms)
Targeting platforms (Blue Kai)
Consumers/Customers


A consumer uses a product: TV, radio, websites
= audience or readers
A customer buys a product: newsletters, music,,
DVDs
Advertisers are customers for radio, TV, magazines,
websites—they buy access to audience/readers/users
– Subscription revenue is relatively minor except for
cable companies
– Who is P&G’s customer?
In some businesses the consumer and the customer are
the same person
–

–
Detergent, razors
Purpose of a Corporation

To create and keep customers
–

To serve stakeholders
–
–
–
–
–

Can’t make a profit unless you have customers
Consumers/audience
Customers/advertisers
Society
Employees
Stockholders (owners, investors, lenders)
To survive
–
–
Need profits
Need to innovate and adapt (innovator’s dilemma—disruptive
technologies)
Create a Customer

Must satisfy unmet consumer/audience needs
and wants—benefits sought (might be
unrecognized)
–
–
–

Create a differential, sustainable, promotable
competitive advantage that will get
customers/audience and keep them
–
–

Stories
Search
Social media
Best way – high barrier to entry (TV stations, cable)
Next best – great products
Create a business model that monitizes
content/audience/traffic
Media Selling
What Is Selling?

Selling is about getting customers and keeping
them



It involves a process of helping
customers/buyers get what they want
It is not a manipulative process in which
salespeople get customers/buyers to do things
they don’t want to do
Selling is about building trusting relationships,
and guided by three basic relationship rules
Basic Relationship Rules (For Sellers
and Buyers)
1.
Do unto others as they would have others do
unto them.
–
2.
People like and trust people exactly like
themselves
–
3.
Treat them the way they want to be treated.
Find similarities and areas of mutual interest.
People don’t care how much you know until
they know how much you care
Purpose

What is the Purpose of ad-supported media?
–
–
–
–
“To bring our audience and advertisers together” KOMC/KRZK, Branson, MO
“To help people sell more Fords,’ Lowry Mays,
former of CEO Clear Channel Communications
To “create a customer” - Peter Drucker
Ad-supported media are in the advertising delivery
business

Thus, agencies and the media are co-dependent
Objectives

What are salespeople’s objectives?
1.
To get results for customers


2.
3.
4.
Should be – not universal
Buyers need to teach salespeople this objective
To develop new business
To retain and increase current business
Increase customer loyalty with insight selling
Insight Selling

The Challenger Sale
–
–
–
Teaching
Tailoring
Taking control of the conversation
Strategies

What are salespeople’s sales strategies?
1.
2.
3.
Sell solutions to marketing/advertising problems
Reinforce the value of advertising and of their
medium
Create value for their product

4.
5.
Before negotiating or discussing price
Become the preferred supplier
Innovate


Big Ideas
Packages and sponsorships
Functions

Salespeople’s functions (key skills)
1.
2.
Create a differential competitive advantage in a
buyer’s mind
Provide insights

3.
4.
Including how to buy the medium (Google)
Manage relationships
Solve problems
–
–
–
Big Ideas
Insights
Easy to buy
Related Functions
To represent the customer to sales
management (inside selling)
1.
Reinforce and help salespeople with this function
–

Give them justifying arguments
To provide customer service
To monitor the marketplace for sales
management
2.
3.
–
Help salespeople, don’t lie to them
Biggest Problem In Sales Organizations


People do what they are paid to do
Wrong incentives lead to wrong, counterproductive behavior
–
E.g.. Wall Street and bankers and the sub-prime
mortgage debacle led to the Great Recession
Buyers

Ask all salespeople how they are paid (their
incentives)
–
–
If primarily on commission, they are out for
themselves, not the company and they will lower
rates to get an order, to maintain relationships, and
keep their list intact.
If primarily on making budget, virtually the same as
being on commission, but will drop rates more near
the end of the month or quarter. They are in a
dilemma, but their short-term interests come first.


Learn to trade favors, if you trust the
salesperson
Learn negotiating skills
–
–
–
–
–
–
Talk price early
Open low, come up slowly
Have an effective concession pattern (get smaller)
You never get anything you don’t ask for
Competitors vs. cooperators
See Advanced Negotiating Seminar at
http://www.charleswarner.us/AdvancedNegotiating.p
pt


If a salesperson’s company/product is important
to you, get to know the salesperson’s top
management (highest level possible) and
negotiate with him/her
Manage these relationships with important
vendor management assiduously and objectively
in your self-interest (your organization’s and
your own).
–
–
Network , cable TV
Top six websites (70%)

Carefully design your career
–
–
Media becoming ever more important
Focus on planning

–
Exchanges and trading desks taking over buying
Specialize



TV
Online
Mobile