Transcript Strategic profit model

Chapter
15
Some questions answered in
Chapter 15
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 1
What is a reseller?
How does the buying process of a reseller
differ from the buying process of an
end user?
What common terms and
conditions apply to such sales,
and how do they affect sales?
How do salespeople help
resellers sell their products
and services?
How do salespeople build
partnerships with resellers?
What role do trade shows and
markets play in the sale of goods to
the trade?
Chapter
15
Remember when we talked about
how that music CD gets to you?
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Electronic
equipment
mfr.
Changing role
of salespeople
Plastic
parts mfr.
Recording
company
Wholesalers
Telephone
company
Spiffs
Terminology
Packaging
mfr.
Accounting
firm
15 - 2
Distributor
Trucking
firm
Retailer
Consumer
Chapter
15
Could anyone get excited selling
electrical fixtures?
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 3
Are you focusing on
the product or on what
the product does for the
retailer?
Chapter
15
Why buy Banquet frozen meals?
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
CONSUMER
Coupon means lower price,
saves money
RETAILER
Coupon will increase sales
Easy to prepare –
anyone can fix a
good meal
Heavy advertising will
improve awareness
Large portions will fill
just about anyone
Growing segment
means growing sales
Spiffs
Terminology
15 - 4
Variety means Banquet can be
part of almost every evening
meal without getting tired of it
Competitive pricing to build
sales
Banquet is well-known and
trusted
Banquet has strong market
image, means fast consumer
acceptance
Chapter
15
Return on investment
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 5
Think of a major purchase you’ve made.
What was your return on your investment?
Chapter
15
Marketing math
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 6
Tom’s Tropical Fish Store
buys an exotic tropical
fish for $10 and sells it for
$15. The markup is:
1. 15%
2. 25%
3. 50%
4. 100%
5. 150%
Chapter
15
There are three major questions
often asked by a reseller
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Regarding turnover:
How quickly and easily will your
product sell?
Terminology
Regarding sales:
How much of it will I sell?
Regarding profit margin:
At what profit will it sell?
15 - 7
The Strategic Profit Model
Chapter
15
Questions
answered
Resellers
Exhibit 15.2
Return on
investment
Gross
Margin
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Net Profit
Margin
Wholesalers
Net
Sales
Spiffs
Terminology
Net
Profit
Gross Margin
Return on
Investment
Net
Sales
Inventory
Turnover
Inventory
15 - 8
Total
Expenses
Net
Sales
Cost of
Goods Sold
Variable
Expenses
Fixed
Expenses
Chapter
15
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 9
How is the Internet changing the role and
importance of salespeople?
Chapter
15
Working with wholesalers
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 10
There are many manufacturers of
products for setting up and
maintaining fish aquariums. A
company like Aquarium Systems
would like its wholesalers to
recommend its products rather
than competing brands. In terms
of its wholesaler, Aquarium
Systems would like to create:
1. product awareness
2. brand equity
3. product equity
4. mind share
5. brand loyalty
Chapter
15
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 11
Why might a retailer be opposed to spiffs?
Chapter
15
Any questions about the terminology?
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 12
Automatic
replenishment (AR)
Breaking bulk
Buyback
Cash discounts
Category captain
Category
management
Consignment
Contests
Co-op advertising
Deferred dating
Efficient customer
response (ECR)
Electronic data
interchange (EDI)
Forward buy
Freestanding insert
Gross profit margin
Guaranteed price
Inventory turnover
Just in time inventory
(JIT)
Letters of credit
List price
Markdown
Market share
Markup
Merchandise markets
Mind share
Net price
Net profit margin
Net sales
Push money (PM)
Quick response
(QR)
Resellers
Selling history
Spiffs
Stock keeping unit
(SKU)
Strategic profit
model (SPM)
Suggested retail
price
Trade discounts
Trade fairs
Trade promotions
Trade shows
Turnaround
Chapter
15
Questions
answered
Resellers
Return on
investment
Marketing
math
Strategic
Profit Model
Changing role
of salespeople
Wholesalers
Spiffs
Terminology
15 - 13