Pricing and Promotions, IMC, Personnel selling, and sales management, theories of selling, sales force automation

A price is not merely a function of costs and margins...it is an expression of value.

Product Features Channel decisions Promotion

Develop marketing strategy. Make market-mix decisions. Estimate the demand curve. Calculate cost. Understand environmental factors. Set pricing objectives. Determine pricing.

 Personal

selling Mass selling Advertising Publicity Sales promotion.

Personal selling- Is direct communication between seller and buyer. Mass selling- Is non-personal selling. Advertising- Is a form of mass-selling. Publicity- Is an information that concerns a person, group, event, or product and that is disseminated through various media to attract public notice. Sales promotion- Is one of the seven aspects of the promotional mix.

According to American Marketing Association IMC or Integrated Marketing Communication is A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.

Five major shifts in the worlds of advertising, marketing and Shift From... To media have caused an increased interest in (and need for) IMC. Traditional Advertising Digital/Interactive Media These include:
Mass Media
Low Agency Accountability Traditional Compensation
Limited Internet Access

Specialized Media
High Agency Accountability Performance-Based Compensation
Widespread Internet Availability

Personal selling is the most widely used means by which organizations communicate with their customers. It involves oral conversations, either by telephone or face-to-face, between salespersons and prospective customers.

Person-to-person conversation. Between prospective buyer and the seller. So, it involves in developing relationships between the buyer and seller. Direct human contacts. Matching products to needs. Results in discovering and communicating customer needs and thus able to understand and solve buyers problem.

Initial contact. Establish rapport - Use of verbal and non verbal communication. Make a good impression. Problem solver for prospective buyers - Tell the product story. Collect information. Use of appropriate sales aids (computers, videos, brochures, etc). Know when to close after narrowing the alternatives.

Sales Management is the marketing management activity dealing with planning, organizing, directing, and controlling the personal selling effort. This includes recruiting, training, supervision, motivation, evaluation, and compensation of sales personnel.

Planning

Setting sales objectives. 1. Organizing sales activities. 2. Recruiting and selection.

1. Training and development. 2. Motivation & compensation.

Organizing

Directing

Control

Evaluating and controlling.

Kick-backs, bribes and gifts. Price discrimination. Cheating on expense accounts. Misrepresentation.

AIDAS Right set of circumstances

Buying Formula
Behavioral Equation

A-Securing attention. I-Gaining Interest.

D-Kindling desire.
A-Inducing Action. S-Building Satisfaction.

Theory can be summarized as Every thing

was right.

This theory is also known as Situationresponse theory. A sales person needs to be well skilled to handle the set of circumstances.

The name buying formula has been given by the late E.K. Strong.

It is a step-by-step explanation of the buyers needs. Reduced to its simplest form, the mental processes involved in a purchase are
need solution purchase

Need(or problem)

solution

purchase

satisfaction

need product and/or service and trade name purchase satisfaction/dissatisfaction

feelings

adequacy

pleasant

need product and/or service and trade name purchase satisfaction/dissatisfaction

Using a stimulus response model and incorporating findings from behavioral research, J.A. Howard explains buying behavior in terms of the purchasing decision process, viewed as phases of the learning process. Four essential elements of the learning process included in the stimulus-response model are: 1. DRIVES: a) INNATE DRIVES b) LEARNED DRIVES

2. CUES: a) PRODUCT CUES b) INFORMATIONAL CUES 3. RESPONSE 4. REINFORCEMENT

Sales Force Automation is an important customer relationship management function that enhances the operations of the sales team. It focus on cultivating customer relationships and Improving customer satisfaction.

Sales

Process

Customized to the companys specific sales policies and procedures, known as sales process management

Include a sequence of sales activities that can guide

reps through each discrete step in the sales process Sales process tools are not sophisticated

 Offer calendars to assist in planning of key customer events Automates both individual and organizational todo list Provides valuable post factor analysis of a sales cycle; which allows the team to examine the duration and procedures involved in critical tasks Sales process and activity management are only as good as their ability to be tailored to intervals sales methods

Sales managers oversee tens or hundreds of sales teams and cannot stay abreast of every active sales initiative Sales management tools can enable them to manage this large task Offering data and reporting options to provide on-demand access to sales activities Teams can be linked to headquarters specialists Sales managers can track territory assignments and monitor pipelines and leads for individual territories Limits on territories

 Subset of sales force automation that deals with organizing and managing data across and within a companys client and prospect organization Software can contain various modules for maintaining local client databases, displaying updated organization charts, and allowing salespeople to maintain notes on specific clients or prospects

Real value of CM is in its capability to track where customers are and who they are in terms of their influence with sales management functions

Can answer specific questions quickly Enable salespeople to communicate their schedules to the organization at large

Also known as opportunity management and pipeline management

Aims to provide foolproof sales strategies so no sales task, document, or communication falls through the cracks

Sales people follow a defined approach to turning opportunities into deals

Tools: can provide qualified leads through marketing campaigns or lead referrals can also track other prospect attributes These capabilities can result in answers to questions that previously demanded guesswork

Tools:

Allow a salesperson to input client and prospect information into an easy-to-use tool CRM products have evolved to leverage this information by providing product-specific configuration support to companies who must build products for their customers Often use graphical sales process (Figure 4-2) Page 82 Order stage is reached, the tool can calculate a product configuration and price quote automatically Can then provide forms that facilitate electronic communication of the information to other areas of the company

The more information the better

Surplus of information To effectively use this information salespeople need easy access to it Intranets are a solution KM are systems that can locate and store this information and provide users with a single application. Geographical boundaries are now non-existent

Ahmedabad

Kolkata

Mumbai

907/A Uvarshad, Gandhinagar Highway, Ahmedabad 382422.

Infinity Benchmark, 10th Floor, Plot G1, Block EP & GP, Sector V, Salt-Lake, Kolkata 700091.

Goldline Business Centre Linkway Estate, Next to Chincholi Fire Brigade, Malad (West), Mumbai 400 064.

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