PERSONAL SELLING

(MEANING)

Personal selling is selling technique involved between person to person and between the prospective buyer and seller. Personal selling consists of human contact and direct communication rather than impersonal mass communication.

Personal selling involves developing customers relationship, discovering & communicating customer needs, matching the appropriate products with these needs.

PERSONAL SELLING
(MEANING) Personal selling is the most significant promotional tool in terms of number of people employed. Personal selling is so important because the sales person is the catalyst that making reaction in the Marketing activities. Eg: Business Firms, factories, Retailers, Banks, Hotels, Personal Computers, Laptops For Institutes, Audio Visual Equipments etc

METHODS OF PERSONAL SELLING

a) Retail selling : Selling to ultimate consumer. Field Selling : Business to business selling that take place in the prospective customer's place of business. Telemarketing : Using the Telephone as the primary means of communicating with prospective customers & Telemarketers often used computers for order taking. Inside Selling : Business to business selling in the Sales persons place of business.

b)

c)

d)

Characteristics (P.S)
1) PERSONAL SELLING IS FLEXIBLE.

2) PERSONAL SELLING BUILDS RELATIONSHIPS.

3) PERSONAL SELLING PRODUCE IMMEDIATE RESPONSE.

STEPS IN PERSONAL SELLING

PROSPECTING & QUALIFYING PREAPPROACH APPROACH

CLOSING

HANDLING OBJECTIVES

PRESENTATION & DEMONSTRATION

FOLLOW UP

Marketing Planning
Henry Fayol stated, Marketing planning refers to forecasting and providing a means of examining action.

Marketing planning involves the setting of marketing objectives, choice of marketing mix, selection of markets and designing of marketing programs for each productmarket for a specified future period.

Nature of Marketing Planning

It is based on marketing information system. It is an unending process because selling is a continuous process, not a single act. It is a process of building the foundation of confidence with every prospect and future sales, rests on that foundation. This foundation is created by : 1) Understanding the basic needs which should be satisfied. 2) Identifying the prospects that we have those needs n wants. 3) Making the prospects recognize the needs 4) Convincing the prospects that the product will satisfy his needs.

Importance of Marketing Planning

1. Planning focuses on future direction, values and sense of purpose in which basic objective tell the direction of the growth. Planning helps to identify potential market opportunities and threats.

2.

3.
4. 5.

Planning offers standards of performance for comparison and evaluation of actual performance.
Planning provides a unique decision-making framework and facilitate co-ordination of efforts. Planning enables the organization to tune in business with the environment and establish a profitable relationship with the environment.

Benefits of Marketing Planning

1. Makes the company basically Market/Consumeroriented.

2. Encourages systematic thinking-ahead by management.

3. Helps to identify the opportunities and the problems.

4. Due to marketing planning, at the time of planning we can get new ideas due to group efforts.

5. Planning injects innovations in the product or organization.

Marketing planning is of two types namely: On the bases of time planning can be classified into two as: 1) 2) Short Term Planning. Long Term Planning.

Marketing planning cam also be classified under the heading Firm perspective/marketing perspective as: 1) 2) Operational Marketing Planning. Strategic Marketing planning.

Marketing Planning Process

Planning generally means looking into the future. According to Henry Fayol Marketing planning refers to forecasting and providing a means of examining the future and drawing up a plan of action. Another feature of marketing planning is that it is an unending process. This is because selling is continuous process and not a single act.

MARKETING PLANNING PROCESS

Conceptual Process

Operational Process Developing The Marketing action Coordinating marketing action Evaluation of marketing Program.

Assess areas of marketing opportunities.

Determining market goals.

Strategic Marketing Planning Process

Defining organizational goals Establishing strategic business unit (SBU) Setting Marketing Objectives Situation Analysis Developing marketing strategy

Implementing tactics
Monitoring results

1) Defining organizational goals: It refers to a long time commitment to a type of business and a place in market. 2) Establishing strategic business unit: Each SBU is a self-contained division, product line or product department with in an organization with a specific market focus and a manager with complete responsibility for integrating all functions into a strategy.

3) Setting marketing objectives: Marketing objectives are not independent but are closely related to business goals. The objectives should be formulated in quantitative and qualitative statements.

4) Situation analysis: It is one of the preparatory exercises for setting marketing objectives. In this analysis, an organization identifies the marketing opportunities and potential problem it faces.

5) Developing marketing strategies: A marketing strategy outlines the manner in which marketing mix is used to attract and satisfy the target markets and accomplish the organizations objectives. 6) Implementing tactics: Whatever strategies are developed, they are implemented in the marketing areas.

7) Monitoring results: The results arising out of marketing planning are monitored and the deviations are corrected for achieving desired results.

Boston Consulting Group Approach (BCG)

The Boston Consulting Group is a leading management consultant firm in US, developed an approach known as BCG Growth Share Matrix. Two variables taken in this matrix were: 1) The Market Growth Rate. 2) Relative Market Share of an SBU. Market growth rate is shown in the vertical axis, which represents the annual growth rate of the market which the SBU operated. The Relative market share of SBU is hone on the horizontal axis.

24

High

22 20

Stars 4

3 2

Question marks 1

18
16 14 12 10 8 6 4

Market Growth Rate (%)

5 Cash cows

7
Dogs 8

Low

2 0

10

8.0

6.0

4.0

2.0

1.5

1.0

0.8

0.5

0.1

High

Relative Market Share

Low

The BCG matrix categorized SBU into four groups

1. 2. 3. 4.

Question marks. Stars. Cash cows. Dogs.

1. Question Marks:
These SBUs struggling to make there presence felt in a high market growth areas. Most of the SBUs in this segment is in the initial period of their launch. The firm has to decide whether it should continue to invest in these SBUs or not.

2. Stars:
These are the SBUs in which the firm has acquired market leadership. This situation occurs only when the firm has successfully evolved strategies to convert Question Marks into Stars.

3. Cash Cows:
These SBUs are generating desired cash for the company. In this the company already occupies a market leader position. In this, the Brands are household and the Firm has to do very little to market them. Eg. Colgate, Lux, Lifebuoy and Godrej products (Godrej falling)

4. Dogs:
These SBUs have lost their glamour. The firm has lost the market leadership and market is also not growing at a high rate. The recommended strategy is to KILL THE DOG or DROP THE PRODUCT from product line.

Marketing Audit :
Meaning:

Marketing audit is a comprehensive systematic, independent and periodic examination of a company (or) business units and recommending a plan of actions to improve the companys marketing performance A market audit is a systematic critical review and appraisal of the environment and the companys marketing operations. It is a powerful tool in ascertaining whether a company is in its dynamic phase and under rapidly changing marketing environment (or) not.

 Marketing audit may also referred to as situation analysis.

A marketing audit included a careful appraisal of a companys past performance as well as an evaluation of its marketing strength. Thus its is a systematic and thorough examination of company's marketing position.

Types: There are two types of marketing audits 1. Horizontal marketing audit. 2. Vertical marketing audit.

Components Of Marketing Audit

Part I. Marketing Environment Audit
(a) Macro (b) Task environment: environment: 1. Markets. 1. Demographic. 2. Customers. 2. Economic. 3. Competitors. 3. Environmental. 4. Distribution & 4. Technological. Dealers. 5. Political. 5. Suppliers. 6. Cultural. 6. Facilitators & Marketing Firms. 7. Publics.

Components Of Marketing Audit

Part II. Marketing Strategy Audit
Business Mission. Marketing Objectives & Goals. Strategy.

Components Of Marketing Audit

Part III. Marketing Organization Audit
1. Formal Structure. 2. Functional Efficiency. 3. Interface Efficiency.

Components Of Marketing Audit

Part IV. Marketing System Audit
1. 2. 3. 4. Marketing Information System. Marketing Planning System. Marketing Control System. New-Product Development System.

Components Of Marketing Audit

Part V. Marketing Productivity Audit
1. Profitability Analysis.
2. Cost-Effectiveness Analysis.

Components Of Marketing Audit

Part VI. Marketing Function Audit
1. 2. 3. 4. Products. Distribution. Price. Advertising, Sales, Promotion, Publicity & Direct Marketing. 5. Sales Force.