Transcript Communication( promotional ) in Industrial marketing

Ninth Lecture
On
Communication Mix
•
Marketing Communication tools
• Industrial & Consumer Communication Mix
1. Personal selling
2. Sales theories
3. Direct Marketing
4. Sales Promotion
5. Advertising
6. Public relations/ publicity
Marketing Communication Tools
Personal
Selling
Advertising
Direct
Marketing
Sales
Promotion
Publicity-PR
Industrial & Consumer Communication Mix
Industrial Marketing
Consumer Marketing
( ranking of promotional mix)
(ranking of promotional mix)
1.
Personal selling
1.
Advertising
2.
Direct marketing
2.
Sales promotion
3.
Sales promotion
3.
Personal selling
4.
Advertising
4.
Direct marketing
5.
Public relation/ publicity
5.
Public relation/ publicity
Personal Selling – Defined
Personal selling
refers to building
lasting Professional relationship
between the
buyer and seller
Contributions of Personal Selling
• Salespeople help stimulate the
economy
• Salespeople help with the
diffusion of innovation
• Salespeople provide solutions to
problems
• Salespeople provide expertise
and serve as information
resources
• Salespeople serve as advocates
for the customer when dealing
with the selling organization
Transaction-Focused vs. Relationship Focused
Transaction-Focused
•
•
•
•
Short term thinking
Making the sale has
priority over most
other considerations
Interaction between
buyer and seller is
competitive
Salesperson is selfinterest oriented
Relationship-Focused
•
•
•
•
Long term thinking
Developing the
relationship takes
priority over getting
the sale
Interaction between
buyer and seller is
collaborative.
Salesperson is
customer-oriented
Classification of Personal Selling Approaches
• Stimulus Response Selling
• Mental State Selling
• Need Satisfaction Selling
• Problem Solving Selling
Stimulus Response Selling
Sony vs. LG TV
Salesperson
Provides
Stimuli
Buyer
Responses
Sought
Continue
Process until
Purchase
Decision
Mental States Selling
Sony vs. LG TV
Attention
Interest
Conviction
Desire
Action
Need Satisfaction Selling
(Any color TV)
Uncover and
Confirm
Buyer Needs
Present
Offering to
Satisfy
Buyer Needs
Continue
Selling until
Purchase
Decision
THE EIGHT STEPS OF THE SALES PROCESS
8. Follow-up
7. Gaining Commitment
6. Meeting objections
5. Presentation
4. Need Assessment (ascertain buyer’s needs)
3. Approach (contacts between the buyer and seller)
2. Preapproach (qualifying leads)
1. Prospecting( master list)
Corporate Goals
Top management:
Corporate Goals
Coordinated through
of Marketing & Sales
Management
Achieving targeted
sales volume
Cost control
&
contribution to
Profits
Sustained future
growth
Crucial Role of Sales & Marketing Dept.
Promoters/
Directors
President
Vice presidents
Prod/Fin/HR
of
Sales Management
Vice president
Marketing
General Manager
Sales
Sales managers
Regional/product
Customer
is the king
Bottoms Up Approach
Sales Executives/
Salesmen
leads to the
realization
Organizational
goals
Personal selling by the salesman using the skills of salesmanship
Sales management
Sales
management
Personal
selling
Salesmanship
Salesman
directs
personal selling efforts
which are
Implemented
through the skills of
salesmanship
Theories of personal selling (related to salesmanship)
Seller Oriented : AIDAS
(Attention, Interest ,Desire, Action & Satisfaction)
Behavioral oriented
Buyer oriented
First Theory: AIDAS
(Attention, Interest ,Desire, Action,& Satisfaction)
Five Successive Mental States of customer:
Securing attention:
•
Sales person should put the prospect( new customer) in receptive state of mind
•
First few minutes of the interview are crucial & the first impression is important
•
He should be skilled conversationalist, friendly and with a genuine smile
AIDAS
Gaining interest
is a
•
Second goal is to intensify the prospects attention into strong interest
seller oriented theory
•
Explain product USP, technical features, benefits, etc
stressing
•
Try and match customer’s needs with what is being offered
Kindling desire
sales person
•
Third goal is to kindle the customer’s desire to ready to buy point
controlling the
•
Objections need answering to the prospects satisfaction
situation
Induction of action
•
If the above process is tactfully handled the customer should be ready to buy.
Building satisfaction
•
After the customer has given the order, he should get the feeling of great satisfaction that the salesman has
helped in making the right choice
Seller Oriented theory
Son in law
buying
Suitings & accessories
For marriage
( father in law paying)
Second theory: Buyer Oriented theory of selling
•
Buyer’s needs (or problems) receive major attention and sales person has
the role in meeting buyer’s requirement and total satisfaction( find solution)
•
Through interaction the sales person is expected to read psychology of the
buyer facilitating his buying decision.
•
Buying formula (stages of thinking process involved in buyer’s purchasing
decision)
Ascertain the Need
Offer the Product…..Adequacy/pleasant feeling
Trade name.... Adequacy/pleasant feeling
Purchase….
Buying habits
are
influenced by the
impact of
Advertisement
&
person selling skills
of
sales person
Satisfaction/ dissatisfaction
Buyer Oriented Theory
Toyota Corolla
New Honda City
Third theory: Behavioral equation based on stimulus response
Stimulus Response Model: Based on buying behavior & purchasing
decision process
Four essential elements of the stimulus response model :
1.
Drive: strong internal stimuli that impels the buyer’s response
2.
Cue : This stimuli about the product may come from advertising,
sales person or conversation with some friend
3
Response: What the buyer does
4.
Reinforcement : Reinforces buyer‘s decision to respond
• Behavioral theory of selling
Direct Marketing
Direct marketing tools are used to identify and create interest with
potential/ new customers, before sales persons visit them
Direct marketing tools are:
– Direct mail( promotional letters/ catalogues)
– Telemarketing (Marketing through a telephone)
– Online marketing channels( services ): Commercial on line
channels & internet
Sales Promotion
Whereas advertising gives a reason to buy, SP gives an incentive to
buy
Objective is to generate business leads and stimulating sales team to
follow up rigorously to convert them into customers
Sales/ business promotion tools are:






Trade shows/ exhibitions
Demonstrations
Sales contests
Promotional letters/ gifts
Seminars etc
Entertaining industrial customers
ADVERTISING
Scope
• It is any paid form of non – personal presentation and
promotion of ideas, goods, services by an identified
sponsor
Characteristics
• Good for awareness building as research can be wide
and quick
• Repetition allows simple messages to be effectively
communicated
• Impersonal and one-way (effectiveness)
• Limited capacity to close the sale
The 5 Ms of Advertising
• Mission – objectives
• Money – budgets
• Message – communication
• Media – what vehicles?
• Measurement - evaluation
Media Class Options
Television
Radio
Cinema
Press
•National
•Regional
Magazines
•Fashion
•Technical
•Trade
Posters
Industrial Advertising
Objectives:
Media used for advertising:
 Creating awareness
 Reaching members of buying
centre
 Increasing efficiency/ effectiveness
 Sales lead generation
 Supporting distribution channel
members
 In industrial directories/
yellow pages
 Industrial journals/ vertical
publications for textiles,
chemical, steel, infra
structure etc
 Business magazines like
Business world, Business
India, Business today, 4Ps
Business & Marketing, etc
 Use of advertising agencies
for print/ broad cast media
Public relations/ publicity
Objectives:
• PR representatives to focus on creating company image
• Maintaining good relations with customers suppliers, share holders,
employees, press, government officials etc.
• Publicity is a form of marketing public relations
• Publicity is low cost means of advertising and promotion leading to
company image building and generating leads from industrial buyers
THANK YOU
EFFECTIVE COMMUNICATION SKILLS
ARE KEY
TO YOUR SUCCESS IN ALL WALKS OF LIFE