EMGT 103 Sales and Marketing Management - Mapua Malayan Colleges

EMGT 103 SALES AND MARKETING MANAGEMENT Week 9-10, October 17-24, 2024  Organizational Chart CEO SALES SUPPORT n OPERATIONS FINANCE ENG’G IT HR MKTG Business Information Flow  What is S...

EMGT 103 SALES AND MARKETING MANAGEMENT Week 9-10, October 17-24, 2024  Organizational Chart CEO SALES SUPPORT n OPERATIONS FINANCE ENG’G IT HR MKTG Business Information Flow  What is Sales Sales  Trying to get the customer to like what the company produces.  Sales Management Sales management is the attainment of sales force goals in an effective and efficient manner Planning, through: Staffing, Training, Leading and Controlling organizational resources  Sales Performance Sales Management is the attainment of sales goals in an ethical, efficient, and effective manner.* Sales Performance Management is the practice of monitoring and guiding personnel to improve their SALES MANAGEMENT PROCESS Sales Levels  Sales Management Skills 1. CONCEPTUAL AND DECISION SKILLS Refer to the cognitive ability to see the organization as a whole and the relationships among its parts. 2. PEOPLE SKILLS Involve the ability to work with and through other people and to work effectively as a group member. 3. TECHNICAL SKILLS The ability to perform a specialized task that involves a certain method or process.  What is Marketing Sales  Trying to get the customer to like what the company produces. Marketing  Trying to get the company produce what the customer wants.  Definitions of Marketing  Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably  Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals  Marketing Management  Marketing Management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value The marketing concept  choosing and targeting appropriate customers  positioning your offering  interacting with those customers  controlling the marketing effort  continuity of performance Implications of Marketing  Who are our existing / potential customers?  What are their current / future needs?  How can we satisfy these needs? – Can we offer a product/ service that the customer would value? – Can we communicate with our customers? – Can we deliver a competitive product of service?  Objective of Sales and Marketing “Offering the right product, for the right market, at the right time, and at the right price”  4 P’s of Marketing 1.PRODUCT 2.PRICE 3.PLACE 4.PROMOTI ON  4 P’s of Marketing 1. Product - the actual item you are selling; the features or attributes you include or build into your products can help you differentiate your offerings from your competitors.  4 P’s of Marketing 2. Price - the amount that consumers will be willing to pay for a product. 3. Place - the consideration of where the product should be available—in stores and online—and how it will be displayed.  4 P’s of Marketing 4. Promotion - communication to consumers that they need this product and that it is priced appropriately. Promotion encompasses advertising, public relations, and the overall media strategy for introducing a  Products Decisions Product and Service Classification System? The Product Life Cycle stages? Growth/Share? Product Market? Five stages of the PLC  Five stages of the PLC  Product development - sales are zero, investment costs are high  Introduction - profits do not exist, heavy expense of product introduction  Growth - rapid market acceptance and increasing profits  Maturity - slowdown in sales growth. Profits level-off. Increase outlay to compete  Decline - sales fall-off and profits  Product and Service Classification System  Convenience goods - little effort, relatively inexpensive  Shopping goods - e.g ‘white goods’, DIY equipment, more expensive, infrequent  Speciality goods - extensive search e.g Jewellery, gourmet food  Pricing Decisions  Pricing strategies  Pricing exercise  Ten ways to ‘increase’ prices without increasing price - Winkler  Pricing strategies  Premium pricing – Uses a high price, but gives a good product/service exchange, e.g. Benz, The Ritz Hotel  Penetration pricing – offers low price to gain market share - then increases price , e.g. DITO Telecom - to attract new corporate clients  Economy pricing – placed at ‘no frills’, low price – e.g. Soups, spaghetti, beans - ‘economy’ brands  Pricing strategies  Price skimming – where prices are high - usually during introduction – ultimately prices will reduce to the ‘parity’  Psychological pricing – to get a customer to respond on an emotional, rather than rational basis  Product line pricing – rationale of a product range  Pricing strategies  Pricing variations – ‘off-peak’ pricing, early booking discounts, etc  Optional product-pricing  Captive product pricing – products that complement others  Product-bundle pricing – sellers combine several products at the same price  Ten ways to ‘increase’ prices without increasing price - Winkler  Revise the discount structure  Change the minimum order size  Charge for delivery and special services  Invoice for repairs on serviced equipment  Charge for engineering, installation  Charge for overtime on rushed  Ten ways to ‘increase’ prices without increasing price - Winkler  Produce less of the lower margin models in the line  Write penalty clauses into contracts  Change the physical characteristics of the product  Channel and Distribution Tactics A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption Six basic channel decisions  Direct or indirect channels  Single or multiple channels  Length of channel  Types of intermediaries  Number of intermediaries at each level  Which intermediaries? Avoid intra-channel conflict  Channel intermediaries – Agents  Mainly used in international markets  Commission agent - does not take title of the goods. Secures orders.  Stockist agent - hold ‘consignment’ stock  Control is difficult due to cultural differences Channel intermediaries - Wholesalers  Break down ‘bulk’  buys from producers and sell small quantities to retailers  Provides storage facilities  reduces contact cost between producer and consumer  Wholesaler takes some of the marketing responsibility e.g sales force, promotions  Channel intermediaries – Retailer  Much stronger personal relationship with the consumer  Hold a variety of products  Offer consumers credit  Promote and merchandise products  Price the final product  Channel intermediaries – Internet  Sell to a geographically disperse market  Able to target and focus on specific segments  Relatively low set-up costs  Use of e-commerce technology (for payment, shopping software, etc)  Paradigm shift in commerce and consumption Selection consideration  Market segment - must know the specific segment and target customer  Changes during plc - different channels are exploited at various stages of plc  Producer-distributor fit - their policies, strategies and image  Qualification assessment - experience and track record must be established  Promotions Decisions  Elements in the communication process  Promotions mix  The promotions message  Executions style  Media choice?  Promotional objectives Promotions Mix  Personal selling  Telemarketing  Direct mail  Trade fairs and exhibitions  Commercial television  Newspapers and magazines  Radio  Cinema  Point of sale displays  Packaging Promotional objectives  To support sales increases  To encourage trial  To create awareness  To inform about a feature or benefit  To remind  To reassure  To create an image  To modify attitudes  Objective of Sales and Marketing “Offering the right product, for the right market, at the right time, and at the right price” Questions? THANK YOU