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8/7/2019 Selling vs Marketing
http://slidepdf.com/reader/full/selling-vs-marketing 2/27
Sales and marketing areSales and marketing aredifferentdifferent
Marketing: What and how to sell
Selling: moving the product
Relationship management
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MarketingMarketing
What?² Product characteristics - ACCTO
² Price sensitivity
Market Characteristics² Size
² Defensible
² Sustainable
How?² Channels
Inform² Routes
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Product or ServiceProduct or ServiceRequirementsRequirements
Know about it
Opportunity to purchase²
shelf space Satisfy a real or perceived need
Affordable (but not too cheap)
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Basic Economics IBasic Economics I
Demand curve: Price depends on volume
Elasticity e = P(
Q
---- -------
(P QPrice P
Quantity Q
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Supply CurveSupply Curve
Stable point is at intersection (Spiderdiagram)
Price P
Quantity Q
Supply
S
Demand
D
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Cost of ProductionCost of Production
-10
-5
0
5
10
15
20
25
1 3 5 7 911
13
15
Quantity
Money Unit Cost
Unit Price
Profit/unit
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Gross ProfitGross Profit
0
20
40
60
80
100
120
1 2 3 4 5 6 7 8 9 10
Quantity
Money Revenue
Expenditure
Gross Profit
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ChannelsChannels
Direct Sales
Distributor/Retailer²
Distributors are your customers� National
� International
Chose carefully -² changing is expensive and difficult
² Key sales
² Opinion formers
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Direct salesDirect sales
Bespoke -² sales staff/ Customer relationship manager
² cash flow
Mail order requirements² Product
² Guarantees
² Stocking
² Support
² Key accounts
² Market communications
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Distribution ChannelDistribution Channel Typical product
² 40%manufacturer
� development, materials, overheads, profit,research
² 30% distributor
� Advertising, stocking, profit
² 30% retailer
� Local adverts, shop front, staff, profit
International² Localisation
² Country agent
� control/performance
² Trade fairs
� DTI outward bound missions
� Embassy
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Ballpark pricingBallpark pricing
Sales price: 1000.00
Factory price: (60%) 600.00
Cost (30% of factory price) 200.00Net profit /unit (10% of factory price) 60.00
Annual sales (Million): 1.00 (guess)
Profit £M 60.00
Set-up and fixed costs (£M) : 50.00 (including initial marketing)
Stocking (6 months at cost) 100.00
Capital need 150.00
Payback time 2.50 years
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Market CommunicationsMarket Communications
Targeting
Advertising² I
mage² Message
² Sales - MOP
� General - Newspapers, TV
� Specific - Trade press, specialist magazines
PR
Direct mail² List brokers
� 1-2% response
� Control and record-keeping
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ExhibitionsExhibitions
Expensive, hard work
Make it obvious
Place for meetings, not cold sales Preparation
² Stand
² Exhibits
² Manual
²
Travel and accommodation
Be attentive
Follow-up² Timeliness
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Sales techniques: listenSales techniques: listento the customerto the customer
Needs
Concerns
Authority
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Stages in SellingStages in Selling
Prospecting
Pre-approach
Approach Survey
Proposal
Demonstration
Close Service
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ProspectingProspecting
Locating the most likely buyers² Cold calling
� DirectorsGuides, Yearbooks
� Local council offices, Chambers of Commerce
� Institutional meetings
² Qualified Prospects
� Marketing response: Advertising, PR, Mailings
� Service organisation, exhibitions
How many?² 10% result in a sale
² Maybe 2 calls per day
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PrePre--approachapproach
Research² Who are the decision makers?
² What is the management structure?
² What are their concerns?
Preparation² Presentation
² Visiting cards, brochures
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ApproachApproach
Listen, establish mutual ground
Contact building
Generalities
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SurveySurvey
Needs, requirements
Constraints
Budget Structure, contacts, decision points
Timescale
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ProposalProposal
Sell the benefits to the customer² F.A.B
² U.S.Ps
² Price is not an issue; value is
� Lifetime cost
� Service, reliability, reputation
Sales proposal² Introduction
² Objectives
² Recommendations
² Benefits
² Financial Justification
² Warranty and service
² Company Background
² Price and conditions
Follow-up
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DemonstrationDemonstration
Objectives
Administration²
Who, where, maps, car parking, accommodation² Greeting, seating
² Catering: coffee, lunch or sandwiches
Script² Rehearse, and stick to the script
² Points to emphasise, or not
Sum up
Agree follow-up
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CloseClose
Small step at a time
Advantages
Customers concerns² hidden agenda
Kicker² Discount, limited offer
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Planning and RecordsPlanning and Records
Graded Prospect List
Sales Forecasts
Call analysis
Sales Cost analysis
Company ContactPrevious Contact Next Contact
Name Address Phone Fax Name Decision Makers Potentia l % Date Who Action
Company Amount ------Time Analysis------- Product Analysis Comments
Q1 Q2 Q3 Q4
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Control and CommissionsControl and Commissions Control
² Sales organisation structure
� By product
� Geographical
�
By channel, key account Measurement
� Cost per sale
� Response rate
� Timeliness
� Individual measures, targets
Commission² Don·t stint
� Basic salary
² Pay on delivery, or payment