1 / 48

Business Decision Making ADMN2167 Marketing and sales

Business Decision Making ADMN2167 Marketing and sales. Professor: Bob Carpenter. Marketing and Sales. Marketing vs.Sales. Corporate awareness. Brand awareness. Brand Consideration. Marketing. Brand Preference. Purchase Intention. Sales. Purchase . Loyalty. Advocacy.

Gabriel
Download Presentation

Business Decision Making ADMN2167 Marketing and sales

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Business Decision MakingADMN2167Marketing and sales Professor: Bob Carpenter

  2. Marketing and Sales

  3. Marketing vs.Sales Corporate awareness Brand awareness Brand Consideration Marketing Brand Preference Purchase Intention Sales Purchase Loyalty Advocacy

  4. Marketing and Sales in Conflict? • Sales and Marketing functions evolve as company matures • Can end up with sales in marketing and marketing in sales. (depends on the industry and the product) • Friction can occur as a result of : • Economics and shared budget • Cultural differences …. Different sorts of people

  5. Four Types of Relationship • Undefined • Defined • Aligned • Integrated • See HBR “Ending the War between Marketing and Sales”

  6. Four Types of Relationship

  7. Marketing versus Sales

  8. Research into Sales • Learning International has researched: • How customers are changing and how sales staff develop stronger business relationships with them • How the competitive environment is changing and how organizations can differentiate themselves

  9. Research into Sales (2) • Customers are: • More knowledgeable • More analytical and systematic • Need agreement at higher levels in the organization • More demanding about what they want and value • More willing to share information

  10. Research into Sales (3) • Sales staff need: • To sell strategic solutions • Sell to a wider and higher level group of decision influencers • Become a trusted business consultant by • Demonstrating business knowledge • Demonstrating product knowledge • Helping customer understand and satisfy needs

  11. Research into Sales (4) • The most effective sales staff seen by customer in roles of: • Long term ally • Business consultant • Strategic orchestrator

  12. Research into Sales (5) • Sales staff competencies and characteristics: • Personality • Skills • Attitudes • Other characteristics

  13. Determinants of Salespeople’s Performance

  14. Sales Cycle • From segmentation to after sales service

  15. Typical Sales Cycle: Tasks Performed Through Sales Process

  16. Direct and Indirect Channels

  17. Channel Integration Map: Sales task Lead generation Qualification Bid & proposal Negotiation/ sale closure Fulfillment Customer care & support Channel $$$ Direct sales channel (field reps) Business partners Occasional support by sales reps to help partners close key strategic deals Telechannels Direct mail Internet $ Sales Cycle

  18. Channel Management • Must choose channel participants and arrange to ensure all obligations are assigned. • Motivate members to perform tasks necessary to achieve channel objectives. • Control any inter-channel conflict • Control and evaluate performance regularly

  19. Direct or Indirect? • Criteria for channel decisions

  20. Decision Criteria for Channels • Product fulfillment complexity • Extend of product customization • Accessibility • National vs. international • Cost • Customer preferences/wishes • Concentration vs. horsepower

  21. Three Important Sales Territory Traits Potential: measure of total business opportunity (commissions or compensation) for all salespeople in particular market Concentration: degree to which potential confined to few larger accounts in territory Geographic Dispersion: if high, sales effort will be wasted in travel time.

  22. Organizing Territories Geographical Organization • Most common form • If reduces travel distance and time between customers, this method usually minimizes costs. • Major disadvantage of geographical sales organization: each salesperson must be able to perform all selling tasks for all firm’s products and for all customers in territory. Product Organization • Salespersons specialize in relatively narrow components of total product line. • Prime benefit: enables sales force to develop deeper product knowledge level--enhances value of firm’s total offering to customers Market-Centered Organization • Salespeople learn specific requirements of industry or customer type; salespeople better prepared to identify and respond to buying influentials.

  23. Direct Sales Used When: • Product and service are complex so that seller needed to ensure proper fulfillment • Sales demand extensive negotiation • Segments are concentrated and ROI on direct costs is good • There are no viable indirect channel partners • Financially better deal

  24. Distributor Channel Used When: • Product availability is important. • Product is standard or software modifiable. • Local value added is important to customer • Product needs to be seen to sell. • Good fit with speciality distributors. • Advantageous to pass off credit issue to distributor

  25. Manufacturer’s Rep: Used When: • Product is not standard--closer to made-to-order. • Product has identifiable companions sold by MR to a particular industry. • MR serves customers beyond direct cost reach. • Relatively few customers, concentrated geographically and concentrated in few industries. • Customers order relatively infrequently and allow fairly long lead times.

  26. Direct or Indirect? • Pros and Cons

  27. Pros of Indirect Selling • Can use partners local industry knowledge. • Can access geographies that are beyond direct reach • Can accommodate market cultural differences (language, selling techniques) • Can retain focus / resources for other key activities

  28. Cons of Indirect Selling • Lose customer intimacy/visibility/ownership • Lose control of salesperson management • Share sales staff with other principals • Pay greater amount for coverage when sales have grown • Difficult to change back to direct

  29. Needs Satisfaction Selling Opening Probing CUSTOMER NEEDS Supporting Closing

  30. Needs Satisfaction Selling - Opening Your goal in opening is to reach agreement with the customer on what will be covered during the visit • Propose an agenda • State the value to the customer (of the agenda) • Check for acceptance

  31. Needs Satisfaction Selling - Probing Your goal in probing is to build a clear, complete and mutual understanding of a customer’s needs • To obtain a clear mutual understanding of: • What customer wants • Why its important • A complete understanding for a particular buying decision means you know • All customers needs • The priority of those needs • Mutual understandiing means you and customer share the same understanding

  32. Needs Satisfaction Selling - Probing • Use open and closed questions to understand circumstances and needs. • Open probes obtain richer information • Search for the “need behind the need”

  33. Needs Satisfaction Selling - Supporting Your goal in supporting is to help customer understand the specific ways in which your product and organization can satisfy an expressed need • Acknowledge customer’s need • Link need to benefit and features of product • Check for acceptance

  34. Needs Satisfaction Selling - Closing Your goal in closing is to reach agreement with the customer on the appropriate next steps, if any, for moving a mutually beneficial decision forward. • Review previously accepted benefits • Propose next steps including actions summary • Check for acceptance

  35. LaserQC Case • Segmentation • Develop benefits and features • Who will be in the buying center • Should there be micro segmentation • Selling cycle / key selling events • Channel design • Sales force organization

  36. Sales Management Direct and Indirect

  37. Direct Sales Force Management Issues • Selection • Training • Motivating • Weed and feed policy • Pricing discretion • Whose customer is it? • Setting goals and expectations

  38. Indirect Sales Force Management Issues • Selection • Training • Motivating – battle for mind space • Weed and feed policy • Pricing discretion • Whose customer is it? • Setting goals and expectations

  39. Selection Direct • Cost and risk of recruiting • Promotion from within • Balancing interpersonal skills and product knowledge

  40. Selection Indirect • Where do you find a partner? • How do you evaluate potential partner? • How do you get them started?

  41. Factors Limiting Choice of Industrial Channel • Availability of Good Intermediaries • Traditional Channel Patterns • Product Characteristics • Company Financial Resources • Competitive Strategies • Geographic Dispersion of Customers

  42. Training • Direct trained in product • Indirect have to train several staff (e.g. You are getting 1/10th of 10 people) • To be effective with indirect, you need windshield time • Indirect should already know selling, industry and customers

  43. Motivating • Direct can be intrinsically and extrinsically motivated • Indirect is a battle for mind space. • Indirect you must work through management to control rewards as directly as possible • Other products in indirect’s product offering competes with their own incentives

  44. Weed and Feed • Direct can be coached and mentored • Direct can be severed • Indirect is that. You can not intervene positively or negatively. • Difficult to change indirects

  45. Pricing Discretion • Direct can be some discretion but concern about selling on price • Indirect must have protecton in multi-channel situation • Who determines price, indirect or principal • Difficult to change indirects

  46. Whose customer is it? • Direct can sign non compete, no poach agreement • Indirect has greater ownership of customer than does principal • Can you access customer on any subject or have you foregone that right

  47. Setting goals and expectations • Direct should have clear goals agreed and close monitoring • Indirect should have clearly documented expectations, goals and division of tasks. What should be included? • Indirect goals may be with its management rather than reps:

  48. Ethics in Selling • You are selling an expensive ($23.5M) piece fabrication line to a business in an African country where it is customary to show appreciation to the decision taker by contributing to his/her personal wealth. There are 4 other bidders, 2 from Western Europe, 1 from South Korea and 1 from Brasil. You have an in country agent who looks after customer relations. The agent requests a commission structure which is 3% above his normal rate and says that it will be OK if the price is raised 3%. He’s in the know and that is why you recruited him. What would you do?

More Related