2167 Class 9 Marketing and Sales

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<ul><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 1/48</p><p>Business Decision MakingADMN2167</p><p>Marketing and sales</p><p>Professor: Bob Carpenter</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 2/48</p><p>Marketing and Sales</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 3/48</p><p>Marketing vs.Sales</p><p>Corporate awareness</p><p>Brand awarenessBrand Consideration</p><p>Brand Preference</p><p>Purchase Intention</p><p>PurchaseLoyalty</p><p>Advocacy</p><p>Marketing</p><p>Sales</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 4/48</p><p>Marketing and Sales in Conflict?</p><p> Sales and Marketing functions evolve ascompany matures</p><p> Can end up with sales in marketing andmarketing in sales. (depends on the industryand the product)</p><p> Friction can occur as a result of : Economics and shared budget</p><p> Cultural differences . Different sorts of people</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 5/48</p><p>Four Types of Relationship</p><p> Undefined</p><p> Defined Aligned</p><p> Integrated</p><p> See HBR Ending the War betweenMarketing and Sales</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 6/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 7/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 8/48</p><p>Research into Sales</p><p> Learning International has researched:</p><p> How customers are changing and how sales staffdevelop stronger business relationships with</p><p>them</p><p> How the competitive environment is changing</p><p>and how organizations can differentiatethemselves</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 9/48</p><p>Research into Sales (2)</p><p> Customers are:</p><p> More knowledgeable More analytical and systematic</p><p> Need agreement at higher levels in the</p><p>organization</p><p> More demanding about what they want and value</p><p> More willing to share information</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 10/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 11/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 12/48</p><p>Research into Sales (5)</p><p> Sales staff competencies and characteristics:</p><p> Personality Skills</p><p> Attitudes</p><p> Other characteristics</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 13/48</p><p>Determinants of Salespeoples Performance</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 14/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 15/48</p><p>Typical Sales Cycle: Tasks Performed Through Sales Process</p><p>Lead Generation Triggered by sales call, by customers response to direct mail, or</p><p>by Web request for information, firm makes initial contact with</p><p>prospect.</p><p>Lead Qualification Potential customer screened: prospects need for product or</p><p>service, buying interest, funding, and timeframe for making thepurchase all assessed.</p><p>Bid and Proposal Bid and Proposal prepared to meet customers requirements (a</p><p>complex task for large technical projects)</p><p>Negotiations and Sales</p><p>Closure</p><p>Negotiation of prices, terms, and conditions, followed by</p><p>agreement on a binding contract.</p><p>Fulfillment For standardized product or service, delivery of offering to</p><p>customer. Configuration, customization, and installation for more</p><p>complex sales.</p><p>Customer Care and Support Post-sale problem resolution, customer guidance, and ongoing</p><p>contact to ensure customer retention, loyalty, and growth.</p><p>SOURCE: Adapted from Lawrence G. Friedman, Go To Market Strategy: Advanced Techniques and Tools for Selling More Products, To More Customer, More Profitably (Boston:</p><p>Butterworth-Heinemann, 2002), pp. 234-236.</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 16/48</p><p>Direct and Indirect Channels</p><p>Direct Indirect</p><p>r: ep:aster</p><p>Dist:</p><p>Ind: Dist</p><p>tocks</p><p>Ind: Dist</p><p>o stocks</p><p>anu acturer or rincipal</p><p>Web</p><p>based</p><p>utsideales</p><p>Inside</p><p>sales</p><p>ustomers</p><p>utsourced</p><p>Telesales</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 17/48</p><p>Channel Integration Map:Salestask</p><p>Channel</p><p>Leadgeneration</p><p>Qualification Bid &amp;proposal</p><p>Negotiation/sale closure</p><p>Fulfi llment Customer care&amp; support</p><p>Direct saleschannel(field reps)</p><p>Businesspartners</p><p>Telechannels</p><p>Direct mail</p><p>Internet</p><p>Sales Cycle</p><p>$$$</p><p>$</p><p>Occasional supportby sales reps to</p><p>help partners</p><p>close keystrategic deals</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 18/48</p><p>Channel Management</p><p> Must choose channel participants and arrange to</p><p>ensure all obligations are assigned. Motivate members to perform tasks necessary to</p><p>achieve channel objectives.</p><p> Control any inter-channel conflict</p><p> Control and evaluate performance regularly</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 19/48</p><p>Direct or Indirect?</p><p> Criteria for channel decisions</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 20/48</p><p>Decision Criteria for Channels</p><p> Product fulfillment complexity</p><p> Extend of product customization Accessibility</p><p> National vs. international</p><p> Cost Customer preferences/wishes</p><p> Concentration vs. horsepower</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 21/48 </p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 22/48</p><p>Organizing TerritoriesGeographical Organization Most common form If reduces travel distance and time between customers, this method usually</p><p>minimizes costs.</p><p> Major disadvantage of geographical sales organization: each salesperson mustbe able to perform all selling tasks for all firms products and for allcustomers in territory.</p><p>Product Organization Salespersons specialize in relatively narrow components of total product line.</p><p> Prime benefit: enables sales force to develop deeper product knowledge level--enhances value of firms total offering to customers</p><p>Market-Centered Organization Salespeople learn specific requirements of industry or customer type;</p><p>salespeople better prepared to identify and respond to buying influentials.</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 23/48</p><p>Direct Sales Used When:</p><p> Product and service are complex so that seller needed</p><p>to ensure proper fulfillment</p><p> Sales demand extensive negotiation</p><p> Segments are concentrated and ROI on direct costs is</p><p>good</p><p> There are no viable indirect channel partners</p><p> Financially better deal</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 24/48</p><p>Distributor Channel Used When:</p><p> Product availability is important.</p><p> Product is standard or software modifiable.</p><p> Local value added is important to customer</p><p> Product needs to be seen to sell.</p><p> Good fit with speciality distributors.</p><p>Advantageous to pass off credit issue to distributor</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 25/48</p><p>Manufacturers Rep: Used When:</p><p> Product is not standard--closer to made-to-order.</p><p> Product has identifiable companions sold by MR to aparticular industry.</p><p> MR serves customers beyond direct cost reach.</p><p> Relatively few customers, concentrated geographically</p><p>and concentrated in few industries. Customers order relatively infrequently and allow fairly</p><p>long lead times.</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 26/48</p><p>Direct or Indirect?</p><p> Pros and Cons</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 27/48 </p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 28/48</p><p>Cons of Indirect Selling</p><p> Lose customer intimacy/visibility/ownership</p><p> Lose control of salesperson management Share sales staff with other principals</p><p> Pay greater amount for coverage when sales</p><p>have grown</p><p> Difficult to change back to direct</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 29/48 </p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 30/48</p><p>Needs Satisfaction Selling - Opening</p><p>Your goal in opening is to reach agreement</p><p>with the customer on what will be coveredduring the visit</p><p> Propose an agenda</p><p> State the value to the customer (of the agenda)</p><p> Check for acceptance</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 31/48 </p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 32/48</p><p>Needs Satisfaction Selling - Probing</p><p> Use open and closed questions to understand</p><p>circumstances and needs.</p><p> Open probes obtain richer information</p><p> Search for the need behind the need</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 33/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 34/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 35/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 36/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 37/48</p><p>Direct Sales Force Management Issues</p><p> Selection</p><p> Training Motivating</p><p> Weed and feed policy</p><p>Pricing discretion</p><p> Whose customer is it?</p><p> Setting goals and expectations</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 38/48</p><p>Indirect Sales Force Management Issues</p><p> Selection</p><p> Training Motivating battle for mind space</p><p> Weed and feed policy</p><p>Pricing discretion</p><p> Whose customer is it?</p><p> Setting goals and expectations</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 39/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 40/48</p><p>Selection Indirect</p><p> Where do you find a partner?</p><p> How do you evaluate potential partner? How do you get them started?</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 41/48</p><p>Factors Limiting Choice of Industrial Channel</p><p> Availability of Good Intermediaries</p><p> Traditional Channel Patterns</p><p> Product Characteristics</p><p> Company Financial Resources</p><p> Competitive Strategies</p><p> Geographic Dispersion of Customers</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 42/48</p><p>Training</p><p> Direct trained in product</p><p> Indirect have to train several staff (e.g.Y</p><p>ou aregetting 1/10th of 10 people)</p><p> To be effective with indirect, you need</p><p>windshield time</p><p> Indirect should already know selling, industry</p><p>and customers</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 43/48</p><p>Motivating</p><p> Direct can be intrinsically and extrinsically</p><p>motivated</p><p> Indirect is a battle for mind space.</p><p> Indirect you must work through management</p><p>to control rewards as directly as possible</p><p> Other products in indirects product offering</p><p>competes with their own incentives</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 44/48</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 45/48</p><p>Pricing Discretion</p><p> Direct can be some discretion but concern</p><p>about selling on price</p><p> Indirect must have protecton in multi-channel</p><p>situation</p><p> Who determines price, indirect or principal</p><p> Difficult to change indirects</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 46/48</p><p>Whose customer is it?</p><p> Direct can sign non compete, no poach</p><p>agreement</p><p> Indirect has greater ownership of customer</p><p>than does principal</p><p> Can you access customer on any subject or</p><p>have you foregone that right</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 47/48</p><p>Setting goals and expectations</p><p> Direct should have clear goals agreed and</p><p>close monitoring</p><p> Indirect should have clearly documented</p><p>expectations, goals and division of tasks. What</p><p>should be included?</p><p> Indirect goals may be with its managementrather than reps:</p></li><li><p>8/8/2019 2167 Class 9 Marketing and Sales</p><p> 48/48</p><p>Ethics in Selling</p><p> You are selling an expensive ($23.5M) piecefabrication line to a business in an African country</p><p>where it is customary to show appreciation to thedecision taker by contributing to his/her personalwealth. There are 4 other bidders, 2 from WesternEurope, 1 from South Korea and 1 from Brasil. Youhave an in country agent who looks after customerrelations. The agent requests a commission structure</p><p>which is 3% above his normal rate and says that it willbe OK if the price is raised 3%. Hes in the know andthat is why you recruited him. What would you do?</p></li></ul>