Transcript Principles of Marketing

Principles of
Marketing
Lecture-37
Summary
of
Lecture-36
Sales Force
Management
Steps in the
Selling Process
Managing the
Sales force
Designing Sales force Strategy and Structure
Recruiting and Selecting Salespeople
Training Salespeople
Compensating Salespeople
Supervising Salespeople
Evaluating Salespeople
Today’s Topics
Sales force Management (cont..)
Direct Marketing
Supervising
Salespeople
Directing Salesperson
Motivating Salesperson
Motivating
Salespeople
• Organizational Climate
• Sales Quotas
• Positive Incentives
– Honors
– Awards
– Merchandise/ Cash
– Trips
How
Salespeople
Spend Their
Time
Service Administrative
Tasks
Calls
17%
12%
Telephone
Selling
21%
Face-to-Face
Selling
30%
Waiting/
Traveling
20%
Companies
Look For Ways
to Increase the
Amount of Time
Salespeople
Spend Selling.
Evaluating
Salespeople
Expense
Reports
Sales
Report
Sources
of
Information
Call
Reports
Work
Plan
Annual
Territory
Marketing Plan
Quantitative Criteria
– Orders
• Number of orders obtained
• Average order size (units or dollars)
• Number of orders canceled by customers
– Sales volume
• Dollar sales volume
• Unit sales volume
• By customer type
• By product category
• Translated into market share
• Percentage of sales quota achieved
– Margins
• Gross margin
• Net profit
• By customer type
• By product category
– Customer accounts
• Number of new accounts
• Number of lost accounts
• Percentage of accounts sold
• Number of overdue accounts
• Collections made of accounts receivable
– Sales calls
• Number made on current customers
• Number made on potential new accounts
• Average time spent per call
• Number of sales presentations
• Selling time versus nonselling time
• Call frequency ratio per customer type
– Selling expenses
• Average per sales call
• As percentage of sales volume
• As percentage of sales quota
• Direct-selling expense ratios
• Indirect-selling expense ratios
– Customer service
• Number of service calls
• Displays set up
• Delivery cost per unit sold
• Months of inventory held, by
customer type
• Number of customer complaints
• Percentage of goods returned
– Selling skills
• Knowing the company and its policies
• Knowing competitors’ products and
sales strategies
• Understanding of selling techniques
• Customer feedback (positive and negative)
• Product knowledge
• Customer knowledge
• Execution of selling techniques
• Quality of sales presentations
• Communication skills
Qualitative Criteria
– Sales-related activities
• Territory management: sales call
preparation, scheduling, routing, and time
utilization
• Marketing intelligence: new product
ideas, competitive activities, new
customer preferences
• Follow-ups: use of promotional
brochures and correspondence with
current and potential accounts
• Customer relations
• Report preparation and timely
submission
– Personal characteristics
• Cooperation
• Human relations
• Enthusiasm motivation
• Judgment
• Care of company property
• Appearance
• Self-improvement efforts
• Patience
• Punctuality
• Initiative
• Resourcefulness
• Health
• Sales management potential
• Ethical and moral behavior
Developing the Sales force
Recruiting
Selecting
Training
Direct Marketing
One-to-One
Marketing
Direct communications
with carefully targeted
individual consumers to
obtain an immediate
response.
Direct Marketing
 Fastest growing
promotional mix element
 Easy to narrowly target a
segment
 Measure outcomes
easier
 Databases are extremely
important
Direct Marketing
Breaks
through ad
clutter
Better
targeting
reduces
waste
Direct Marketing Consists of
Direct Connections With
Carefully Targeted Individual
Consumers to Both Obtain an
Immediate Response and
Cultivate Lasting Customer
Relationships.
Most Mass Marketing
Involves One-Way
Communications
Aimed At Consumers.
Direct Marketing
Involves Two-Way
Interactions With
Customers.
Focuses on Share of Customer
Direct
Marketing
Develops Customers
Finds Products for Customers
Focuses on Share of Market
Mass
Marketing
Develops Products
Finds Customers for Products
Communications
Process Differences
Message is
Personalized
Channel is
Direct
Noise is
not present
Individual Response
is captured
The New Direct
Marketing Model
 Some firms use direct marketing as a
supplemental medium.
 For many companies, direct marketing
- especially Internet and e-commerce
companies - constitutes a new and
complete model for doing business.
 Some firms use the new direct model
as their only approach.
 Experts envision a day when all buying
and selling will involve direct
connections between companies and
their customers.
Advantages of
Direct Marketing

The ability to identify the most
profitable customer.

The ability to create long-term
relationships with customers.

The ability to target marketing efforts
only to those people most likely to be
interested.

The ability to offer varied messages to
different consumers.

Increased knowledge about the
customer.
Factors Driving
Direct Marketing Growth
Predictive
Modeling
Convenience
Immediate
Sales
Shrinking
Media Audiences
Customized
Products
Fragmented
Markets
Price
Sensitivity
Demassification – Focus is
Toward Minimarkets
Higher Costs of Driving, Traffic
and Parking Congestion
Consumers Lack of Time
Convenience of Ordering
From Direct Marketers
Growth of Customer Databases
Forms of Direct
Marketing
Face-to-Face
Selling
Online
Marketing
Telemarketing
Kiosk
Marketing
Direct
Mail
Direct-Response
TV Marketing
Catalog
Techniques of Direct
Marketing
Electronic
Media
Telemarketing
Print
Media
Direct Mail
Direct Selling
Broadcast
Media
Direct Mail
Advantages
Disadvantages
Self-Contained Message
High Cost Per Exposure
Flexibility
Potential Delivery Delays
Thorough Target Market
Coverage
Lack of Support From Other
Media
Fewer Distractions From
Other Media
Easy to Ignore
Large Number of Mail-Order
Buyers
Seen as Wasteful, Harmful to
Environment
Customer Databases
Customer Databases are an
Organized Collection of
Comprehensive Data About
Individual Customers or Prospects
Including:
– Geographic,
– Demographic,
– Psychographic, and
– Behavioral Data.
Direct
Marketing is...
With a
Focus
on...
Share of
Customer
Customer-Based
Information-Intensive
Long-Term Oriented
Individualized
Through
Use of...
Database
Technology
Database Marketing
Database Marketing is the
Process of Building,
Maintaining, and Using
Customer Databases and
Other Databases for the
Purposes of Contacting and
Transacting With Customers.
Marketing Database
The compilation of names,
addresses, and other pieces of
pertinent information about
individual customers
and prospects that affects what
and how marketers
sell to them.
How Companies Use Their
Databases ?
Identifying Prospects
Deciding Which Customers Should
Receive a Particular Offer
Deepening Customer Loyalty
Reactivating Customer Purchases
Enough for
today. . .
Summary
Supervising
Salespeople
Motivating
Salespeople
Evaluating
Salespeople
Direct Marketing
Direct Marketing
Breaks
through ad
clutter
Better
targeting
reduces
waste
Advantages of
Direct Marketing
Factors Driving
Direct Marketing Growth
Forms of Direct
Marketing
Customer Databases
Next….
Public Relations
Principles of
Marketing
Lecture-37