1. Marketing & Sales How to Build Profitability Prepared by: Simin Foster PB Consulting & Training Services [email_address] November 2004

2. Presentation Objective

Assist you in creating sustainable value and differentiation for your business, and maximize your profitability.

3. Presentation Content

Part 1: The Key Building Blocks of Marketing & Sales Doing it Right!

Part 2: Doing Business in the Experience Economy Maximizing Profitability!

4. Part 1:The Key Building Blocks of Marketing & Sales

What is Marketing? What is Sales?

Marketing Context & Process

Marketing Mix Strategies

What is in a Marketing Plan?

Designing & Managing Sales Forces

Personal Selling

5. What is Marketing?

Marketing involves a companys process for:

• Product & Service definition- Characterizing products & services

• Positioning- Identifying & targeting market segments

• Pricing

• Promotion Communication with the customer

• Placing- Selecting channels of distribution

6. What is Sales?

Sales is a function that a company performs to establish personal link to the customer:

• Delivering products & services

• Taking Orders

• Creating awareness and/or demand

• Offering technical advise to customers

7. Marketing Context

Main Actors & Forces in Marketing:

• Customers

• Competitors

• Suppliers

• Intermediaries

• Partners

• Stakeholders

• Environmental Forces(demographic, economic, technological, political.legal, social/cultural)

8. The Marketing Management Process

Market research & analyses

Setting marketing goals & strategies

Planning the Marketing Program The Marketing Mix: Positioning, Product, Price, Promotion& Channels of distribution

Implementing the Marketing Plan

Evaluating marketing performance

Continuous monitoring & feedback-Updating & fine-tuning goals, strategies & plans

9. The Marketing Mix Strategy

Positioning Targeting, Unique Selling Proposition & Branding

Product- Service Attributes

Pricing Strategy

Promotion Mix

Place- Distribution Channels

10. Marketing Plan

Key Elements:

• Executive Summary

• Current Marketing Situation Researching & analyzing market forces & environmental trends

• Opportunity & Issue Analysis Researching market segments & Selecting target markets

• Objectives

• Marketing Strategy Differentiation, Positioning, Branding, Going Global, Promotional Mix

• Action Plans Organizing & Implementing Marketing Programs, e.g. The Communication Plan

• Projected Profit & Loss Statements

• Controls Evaluating & Controlling Marketing Performance

11. Effective Communication

Identify target audience

Set objectives awareness, generate leads, new product launch

Define Requirements reach, frequency.

Establish budget look for partners to do joint promotion

Prioritize spending

Decide on the communication mix be creative in using Public Relations opportunities

Maintain consistent message / look

Measure results

12. Communication Mix

Advertising any paid form of non-personal presentation of ideas, goods, or services

Sales Promotion Short term incentives to encourage purchase

Public Relations Non-paid favorable press

Personal Selling Oral presentation for the purpose of making sales

13. Designing the Salesforce

Salesforce Objectives

Salesforce Strategy

Salesforce Structure

Salesforce Compensation

14. Managing the Salesforce

Recruiting

Training

Directing

Motivating

Evaluating Performance

15. Personal Selling

Selling

• Prospecting & Qualifying

• Pre-approach

• Approach

• Presentation & Demonstration

• Handling Objections

• Closing

• Follow-up

Negotiation

• When to Negotiate

• Formulating a Bargaining Strategy

• Bargaining Tactics

Relationship Management

16. Part 2: Doing Business in the Experience Economy

Creating Powerful and Sustainable Value andDifferentiation

The Ultimate Profitability Zone

Whats Next??

Reference: The Experience Economy, by B. Joseph Pine & James H. Gilmore 17. Experiences A New Source of Value

Experiences are as distinct from Services as Services are from Goods

Goods are tangible products that companies standardize and inventorize

Services are intangible activities performed for a particular client

Experiences are memorable events that companies stage to engage individual clients in a personal way

18. Experiences A New Source of Value

Unique Products & Services are no longer enough- The Internet is the greatest force for commoditization

Businesses must adopt differentiation by staging Experiences to turn-on and engage their customers- While the work of the experience stager perishes, the value of the experience lingers

Customers value and pay a premium for Experience -Experiences are the foundation for sustainable differentiation & future economic growth.

19. Price of Birthday Offerings (The Experience Economy, by B. Joseph Pine & James H. Gilmore) 20. The Progression of Economic Value (The Experience Economy, by B. Joseph Pine & James H. Gilmore) 21. Staging Experiences is about Engaging Customers

The 4 realms ofExperience:

• Entertaining experiences are passively absorbed by customers

• Educational experiences are actively absorbed by customers

• Escapist experiences involve active participationwhile immersed in an environment

• Esthetic experiences involve passive participation while immersed in an environment

The richest experiences encompass aspects of all four realms

22. Creating Experiences

Theme the Experience:

• Envision a well-defined theme

• Script a participative story

• Mix experience of time, space & matter

• Create multiple places within a place

• Theme should fit the companys character

23. Creating Experiences

Harmonize Impressions with Positive Cues:

• The Experience must leave indelible impressions

• Introduce cues affirming the nature of the Experience

Eliminate Negative Cues:

• Eliminate cues that distract from the theme

• Too many haphazard cues can ruin an experience

24. Creating Experiences

Mix in Memorabilia:

• People purchase memorabilia as tangible artifacts of experiences

• The price point is a function of remembering the experience

Engage the Five Senses:

• The more sensory an Experience, the more memorable it will be

• A simple cue can heighten an experience through a single sense

25. Creating Experiences

Customizing a Service can be a sure way to staging a positive Experience

Less customer sacrifice turns an ordinary service into a memorable event

Stage a memorable surprise, create customer suspense

26. Work is Theatre

Theatre is not a metaphor, but a model

Use your products as props, your services as astage and your employees as performers to make every customer interaction as aonce-in-a lifetime event

Whenever employees work in front of customers, an act of theatre occurs- every action contributes to the total experience being staged

Your success depends on picking the right people to play the right parts.

27. The Enactment Model (The Experience Economy, by B. Joseph Pine & James H. Gilmore) 28. Customer is the Product

Welcome to the commoditization of Experience what is next??

When you customize an experience, you change the individual you guide Transformations

Guiding Transformation an emerging economy :

• Diagnose Aspirations

• Stage Experience(s)

• Sustain Transformation

29. Charge for It!

Dont give away Experiences or Transformation in order to sell existing offerings- Charge a premium for it

Companies should charge for the value they add, not the costs they incur

Not only retail stores, but entire shopping malls charge admission