MARKETING ENVIRONMENT

1
MARKETING ENVIRONMENT
ENVIRONMENTAL MONITORING

• (A) GATHERING INFO REGARDING A CO EXTERNAL
• ENVIRONMENT
• (B) FORECASTING THE INFACT OF TRENDS

2
TWO LEVELS OF EXTERNAL FORCES

• MACRO INFLUENCES THAT AFFECT ALL FIRMS

• DEMOGRAPHICS
• ECONOMIC CONDITIONS
• CULTURE
• LAWS

• MICRO INFLUENCES THAT AFFECT A
• PARTICULAR FIRM

• SUPPLIERS
• MARKETING INTERMEDIARIES
• CUSTOMERS

3
SUCCESSFUL MARKETING DEPENDS ON A
FIRMS ABILITY TO MANAGE ITS PROGRAMS WITHIN ITS
ENVIRONMENT
AN EXECUTIVE TO KNOW TO RECOGNIZE AND
RESPOND PROFITABLY TO ONMET NEEDS AND TRENDS
WHAT MAKES UP THE FIRMS ENVIRONMENT AND HOW
TO MONITOR IT IN
SYSTEMATIC
WAY ONGOING
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EXTERNAL MACRO- ENVIRONMENT
CANCER CURE PRACTICAL ELECTRIC CARS VOICE CONTROL
LED COMPUTERS COGNITIVE ENHANCERS
FOR SCANNIN G OF UNMET NEEDS
TRENDS
A RECEPTION OF FUTURE
DIRECTION OF SEQUENCE OF EVENTS WHICH HAVE
SOME MOMENTUM AND DURABILITY
WIDE IMPLICATIONS
TRENDS! FAD! MEGA TRENDS!
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SIX MAJOR FORCES
SOCIAL CULTURAL FORCES
DEMOGRAPHY
COMPANYS MARKETING PROGRAMME
ECONOMIC CONDITIONS
POLITICAL LEAGAL FORCES
COMPETITION
TECHNOLOGY
EXTERNAL MACRO-ENVIRONMENT OF A COMPANYS
MARKETING PROGRAM
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1. DEMOGRAPHIC FORCES
STATISTICAL STUDY OF HUMAN POPULATION AND ITS
DISTRIBUTION

• SIZE AND GROWTH RATE
• AGE DISTRIBUTION AND ETHNIC MIX
• EDUCATIONAL LEVELS
• HOUSEHOLD PATTERNS
• AGING
• MIDDLE INCOME BOOM
• GEOGRAPHICAL SHIFTS
• GROWTH OF MINORITY MARKETS

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ECONOMIC ENVIRONMENT
PURCHASING POWER

• INDUSTRIAL SECTOR
• INFRASTRUCTOR
• CONSUMER GOODS
• SERVICES SECTOR

EXPLOSION OF MIDDLE CLASS
TWO FACTORS
CHANGE IN EDUCATIONAL AND OCCUPATIONAL PROVIDE CH
ANGE OF ATTITUDE FROM THRIFT TO SPENDING
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• HIGH GROWTH IN SERVICE INDUSTRY
• HIGH INCOME JOBS.. COMPUTERS MANAGEMENT
• .. BANKING CONSULTANCY
• .. TOURISM HOTEL INDUSTRY

• GROWTH OF DUAL/ MULTIPLE INCOME FAMILIES

• MORE WOMEN IN JOBS

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CHILDREN
NEW POTENT ELEMENT IN ENVIRONMENT

• CONFECTIONARY
• CLOTHES
• AS O COKE
• PEPSI

• INCREASING
• POCKET MONEY

• SIGNIFICANT ROLE AS
• INFLUENCERS AND DECISION MAKERS

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LIBERALISATION OF INDIAN ECONOMY
MNCs INCREASING THEIR STAKE
3 M .. GOLDSTAR . COKE .. HII
. PG
GILLETTE INDIAN SHAVING PRODUCTS HONDA KIN
ETIC HONDA PEPSI FOODS .. VOLTAS
MARKETING WARFARE ON INDIAN TURF BECAME INTENDSE
AND HIGHLY COMPETITIVE
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INCREASING EXPORT OPPORTUNITIES

• CENTRAL ASIAN REPUBLICS OPENING UP
• INCREASING DEMAND FOR FRESH AND PROCESSED
• AG PRODUCTS MARINE PRODUCTS

FOREIGN DIRECT INVESTMENT IS COMING IN EIG WAY
RURAL SEGMENT GROWING YEAR FAST
80 - POP. RESIDE IN VILLAGES 40 GOP ..
EMANATE FROM AGRICULTURE HEAVY DEMAND FOR DURABLE
AND PACKAGED PRODUCTS
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3. TECHNOLOGICAL ENVIRONMENT
TECHNOLOGY APPLICATION OF KNOWLEDGE
ENCOMPASSING THE RELATES CONCEPTS OF
SCIENCE.
SIGNIFICANT INFACT ON MARKETING ENVIRONMENT
NEW TECHNOLOGIES COMING UP
SEMI- CONDUCTORS . TO SUPER CONDUSTORS MANUAL
TYPEWRITERS .. WORD PROCESSORS
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INFORMATION TECHNOLOGY.. REVOLUTIONARY CHANC
ES
WE .. ARE COMING IN AGE OF INFORMATION SUPE
R HIGHWAYS

• RADIO PAGING
• CELLULAR TELEPHONES
• E-MAIL
• VIDEO CONFERENCING
• MULTI MEDIA

TECHNOLOGY PARKS

• NEW QUALITY SPECIFICATIONS COMING UP
• ISO 9000 SERIES
• NEW DEVELOPMENTS IN LASERS, ANTIBIOTICS,
• VIDEO GAMES, PLASTICS, AIR TRAVEL . FLY-
• BY-WIRE TECHNOLOGY

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4. SOCIAL CULTURE FORCES

• ROLE OF MEN WOMEN
• GROWTH OF NUCLEAR FAMILIES
• INCREASING WESTERNALIZATION
• CHANGE IN INDIAN WOMEN

GROWTH IN EDUCATION MEDIA INFLUENCE GROWTH OF
WORKING WOMEN

• GROWING NOVEAU RUCH SEGMENT
• MASS .. SEGMENTED MARKETING
• CHANGING ATTITUDES
• MORE AWARENESS ABOUT HEALTH AND
• FITNESS HEALTH MAGAZINES. .MORE DEMAND
• OF FITNESS PRODUCTS . HEALTH DRINKS
• TREND TOWARDS IMPULSE BUYING

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POLITICO LEGAL ENVIRONMENT
POLITICAL ENVIRONMENT . AFFECT
MARKETING DECISIONS
LAWS
GOVT. AGENCIES
PRESSURE GROUPS

• BUSINESS LEGISLATION

• MONITARY AND
• FISCAL POLICIES
• SOCIAL LEGISLATION
• AND REGULATION
• REGULATION AND
• DEREGULATION

• TO PROTECT Cos FROM
• EACH OTHER
• TO PROTECT CONSUMERS
• FROM UNFAIR PRACTICES
• TO PROTECT INTERESTS
• OF SOCIETY

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6. COMPETITION
COMPETITIVE ENVIRONMENT .. MAJOR INFLUENCE
ON ITS PROGRAMS
BRAND COMPETITION .. FROM SIMILAR
BRANDS/ PRODUCTS SUBSTITUTE PRODUCTS
THAT SATISFY THE SAME NEED GENERAL
COMPETITION . EVERY CO. IS RIVAL FOR
CONSUMERS BUYING POWER
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EXTERNAL MICRO-ENVIRONMENT

• FIRMS MARKET
• ITS SUPPLIERS
• MARKETING INTERMEDIARIES

MARKET
PEOPLE OR ORGANIZATIONS WITH WANTS OR NEEDS TO
SATISFY, MONEY TO SPEND AND THE WILLINGNESS TO
SPEND IT.

• PEOPLE OF ORGANIZATIONS WITH NEEDS / WANTS
• THEIR PURCHASING POWER
• THEIR BUYING BEHAVIOUR

SUPPLIERS
LONG- TERM CO-OPERATIVE RELATIONSHIPS
IMPORTANT COMPONENT OF OVER-ALL SYSTEM
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INTERMEDIARIES
INDEPENDENT BUSINESS ORGANI- ZATIONS THAT
FACILITATE FLOW OF GOODS OR SERVICES
BETWEEN MARKETING ORGANIZATION AND MARKET
TWO TYPES MIDDLEMEN FACILITATING ORGANIZATIONS
MARKET
SUPPLIERS
COMPANYS MARKETING PROGRAMME
INTERMEDIARIES
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ORGANIZATIONS INTERNAL ENVIRONMENT
INTERNAL FORCES THAT ARE CONTROLLABLE
BY MANAGEMENT

• FIRMS PRODUCTION, FINANCIAL, PERSONAL
• ACTIVITIES
• COS LOCATION
• ITS RD STRENGTH
• OVER-ALL IMAGE OF THE FIRM

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ECONOMIC CONDITIONS
DEMOGRAPHY
COMPETITION
COS MKTG PROGRAMME
FINANCIAL RESOURCES
SUPPLIERS
PRO- DUCTION FACILITIES
HUMAN
MARKET
RESOURCE
INTER MEDIARIES
COS IMAGE
INTER NEDIARIES
LOCATION
R D
SOCIAL CULTURAL FORCES
TECHNOLOGY
POLITICAL LEGAL FORCES
A COMPANYS COMPLETE MARKETING ENVIRONMENT
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ENVIRONMENT SCANNING
PROCESS BY WHICH A MKTG ORG. IDENTIFIES,ANALYZES
AND FORECASTS THE IMPACT OF RELEVANT ENVIRONMENTAL
FORCES ON IT
LINE MANAGERS TO

• IDENTIFY
• MONITOR
• FORECAST
• INTERPRET

ENVIRONMENTAL CHANGES ON CONTINOUS BASIS
LIKE ROTATING RADAR DETECTION UNIT TO TRACK DOWN
SCANNING

• MOVEMENT IN MARKETS
• MOVEMENT BY COMPETITORS
• CHANGES IN OTHER MACRO-
• ENVIRONMENT FORCES

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EX IN APPROACH IN EX APPROACH SPIRE
SYSTEMATIC PROCEDURE FOR IDENTIFYING THE RELEVANT
ENVIRONMENTS
IDENTIFY POTENTIALLY RELEVANT ENVIRONMENTAL
CHANGES
MONITOR DETERMINE NATURE, DIRECTION, RATE OF
CHANGE, MAGNITUDE OF FORCES
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FORECAST PROBABILITY OF IMPACT,TIMING
OF POTENTIAL CONSEQUENCES
DEVELOP AND IMPLEMENT STRATEGIC RESPONSES
ENVIRONMENTAL SCANNING ACTION AN
OVERVIEW
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PRODUCT ANALYSIS
PRODUCT
A PRODUCT IS SOMETHING THAT CAN BE OFFERED TO A
MARKET FOR ATTENTION, ACQUISITION, USE OR
CONSUMPTION
PHYSICAL OBJECTS SERVICES PERSONALITIES PLACES ORG
ANIZATIONS, AND IDEA
IT INCLUDES
25
PRODUCT IS A SET OF TANGIBLE AND
INTANGIBLE ATTRIBUTES THAT LEADS TO
CUSTOMER SATISFACTION

• TANGIBLE
• EXTENDED
• GENERIC PRODUCT
• CORE PRODUCT
• FORMAL PRODUCT
• AUGMENTED PRODUCT

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PRODUCT MIX DECISIONS
MANY PRODUCT LINES .. MAKE UP PRODUCT -
MIX
PRODUCT LINE
A GROUP OF PRODUCTS WITHIN A PRODUCT CLASS THAT
ARE CLOSELY RELATED
SATISFY COMMON NEEDS
USED TOGETHER
SOLD TO SAME CUSTOMER GROUPS
MARKETED THROUGH SAME OUTLET
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PRODUCT - MIX
THE COMPOSITE OF PRODUCTS OFFERED FOR SALE BY A
FIRM OR BUSINESS UNIT
WIDTH LENGTH DEPTH
PRODUCT WIDTH
NUMBER OF DIFFERENT PRODUCT LINES IN A COMPANY
PRODUCT LINE - LENGTH
TOTAL NUMBER OF ITEMS IN PRODUCT - MIX
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PRODUCT DEPTH
VARIANTS OFFERED IN EACH PRODUCT IN THE
LINE NUMBER OF VERSIONS OFFERED OF EACH PRODUCT
IN THE LINE
PRODUCT LINE CONSISTENCY
PRODUCT LINES HOW CLOSELY THEY ARE RELATED
IN
END - USE
PRODUCTION REQUIREMENTS
DISTRIBUTION CHANNELS ETC.
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BRAND DECISIONS
BRAND IS A NAME, TERM, SIGN, SYMBOL OR DESIGN OR
A COMBINATION OF THEM INTENDED TO IDENTIFY THE
GOODS OR SERVICES OF ONE SELLER AND TO
DIFFERENTIATE THEM FROM THOSE OF COMPETITORS
A BRAND IS A SELLERS PROMISE TO
CONSISTENTLY DELIVER A SPECIFIC SET OF FEATURES,
BENEFITS AND SERVICES TO BUYERS
FOUR LEVELS OF MEANING
ATTRIBUTES
BENEFITS
VALUES
PERSONALITY
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IMPORTANT BRAND DECISIONS

• TO BRAND OR NOT TO BRAND

FAMILIAR BRAND NAMES PROVIDE

• INFORMATION
• RECOGNITION
• CONFIDENCE
• HELPS IN DEVELOPING BRAND EQUITY

• BRAND NAME DECISIONS

INDIVIDUAL BRAND NAMES
FAMILY BRAND NAMES
UMBRELLA BRANDS
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• BRAND STRATEGY DECISIONS

• NEW BRANDS (MULTI- BRAND STRATEGY)
• BRAND EXTENSION

• BRAND POSITIONING

PACKAGING DECISIONS
PACKAGING INCLUDES THE ACTIVITIES OF
DESIGNING AND PRODUCING THE CONTAINER OR WRAPPER
FOR A PRODUCT

• PROTECTION
• CONVENIENCE
• ASSURANCE
• ENCOURAGEMENT
• CONFIDENCE
• EMOTIONAL APPEAL

OFFERS
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PRODUCT LFE CYCLE

• PLC PORTRAYS DISTINCT STAGES IN THE SALES
• HISTORY OF A PRODUCT
• PLC STAGE IDENTIFICATIO RESULTS IN BETTER
• MARKETING PLANNING
• PLC CONCEPT SUGGESTS

PRODUCTS HAVE A LIMITED LIFE
PRODUCT SALES PASS THROUGH DISTINCT STAGES, EACH
POSING DIFFERENT CHALLENGES TO THE SELLER
PRODUCTS REQUIRE DIFFERENT MARKETING STRATEGIES
IN EACH STAGE OF THEIR LIFE-CYCLES.
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SALES AND PROFITS
D
C
A
B
SALES
A- INTRODUCTION B- GROWTH C- MATURITY D- DECLINE
PROFIT
TIME
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STYLES FASHIONS FADS
BASIC AND DISTINCTIVE MODE OF EXPRESSION CLOTHING
FORMAL VS. CASUAL
STYLE
CURRENTLY ACCEPTED OR POPULAR STYLE IN A GIVEN
FIELD
FASHION
FASHION THAT ENTER QUCKLY, PEAK EARLY AND
DECLINES VERY FAST
FADS
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FAD
FASHION
STYLE
SALES
SALES
SALES
TIME
TIME
TIME
(A) (B) (C)
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PHASE- I INTRODUCTION
STAGE JUST AFTER THE LAUNCH SALES GROWTH
SLOW PROFITS MAY BE LACKING BECAUSE OF
LOW SALES VOLUME
HIGH DISTRIBUTION AND PROMOTION EXPENSES
HIGH COST OF MARKET DEVELOPMENT
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TYPICAL FEATURES

• HIGH PRODUCT FAILURE RATE
• LITTLE COMPETITION
• FREQUENT PRODUCT MODIFICATION
• HIGH PRODUCTION AND MARKETING COST
• HIGH DEALER MARGINS

PROMOTION
DIFFERENT PRICE/ PROMOTION LEVELS CAN BE
COMBINES PRICE
LOW
HIGH
SLOW SKIMMING
RAPID SKIMMING
HIGH
SLOW PENETRATION
RAPID PENETRATION
LOW
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STRATEGY
DEVELOP PRODUCT AWARENESS
INTENSIVE PERSONAL SELLING
SALE TO HIGH INCOME GROUPS
HEAVY SAMPLING / COUPENING FOR CONVE- NIENCE
GOODS EDUCATIONAL ADVERTISING PERSONAL SELLING
FOR SPECIALITY PDT.
LIMITED DISTRIBUTION
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PHASE II GROWTH
IF PRODUCT SATISFIED MARKET .. IT WILL
ENTER GROWTH PHASE
SALES GROW AT INCREASING RATE
COMPETITION BUILDS UP FAST
NO. OF DISTRIBUTION OUTLETS GO UP
PROFITS HEALTHY .. REACH AT PEAK PROMOTION/
SALES RATIO GO DOWN
40
STRATEGY
EFFORT IS TO SUSTAIN RAPID MARKET GROWTH RATE AND
CAPTURING A DOMINANT POSITION IMPROVING PRODUCT
QUALITY AND ADDING NEW FEATURES AND MODELS MORE
PRODUCT EXPOSURE ENTRY INTO NEW MARKET
SEGMENTS AGGRESSIVE DISTRIBUTION STRATEGY SWITCH
FROM CATEGORY RELATED PROMOTION TO BRAND PROMOTION
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PHASE III MATURITY
LONGEST STAGE OF PLC MOST PRODUCTS IN THIS
STAGE MOST MARKETING STRATEGIES FOR MATURE
PRODUCTS
THREE SUB- STAGES
GROWTH MATURITY RATE OF SALES GROWTH BEGINS TO
DECLINE BECAUSE OF DISTRIBUTION
SATURATION FULLEST POSSIBLE TAPPING OF
MARKET ALREADY OVER
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STABLE MATURITY SALES FLATTEN ON PER-CAPITA
BASIS FUTURE SALES BY POPULATION GROWTH AND
REPLACEMENT DEMAND
DECAYING MATURITY ABSOLUTE LEVEL OF SALES STARTS
DECLINING CUSTOMERS MOVE TO RIVAL
PRODUCTS/ SUBSTITUTES
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GENERAL FEATURES

• CUT- THROAT COMPETITION
• PROFIT EROSION
• WEAK AND MARGINAL COMPETITORS DROP OUT
• STRONG COMPETITORS TRY FOR COMPETITIVE
• ADVANTAGE
• PRICES AND PROFICTS CONTINUE TO FALL
• DEALERS MARGINS SHRINK AND RELUCTANCE
• TO PUSH THE PEODUCTS

44
BASIC STRATEGIES IN MATURITY STAGE
(A) MARKET MODIFICATION

• LIFE OF PRODUCT CAN BE EXPANDED BY MARKET
• STRETCHING
• CONCENTRATING ON MARKET SEGMENTS YET
• UNTAPPED
• STIMULATING INCREASED USAGE AMONG
• CURRENT USERS
• PROMOTING MORE VARIED USAGE AMONG
• CURRENT USERS
• INCREASING NO. OF USE SITUATIONS USE OF
• BOROLINE FOR MANY PURPOSES

45
REPOSITIONING THE BRAND CHANGING THE CUSTOMERS
PERCEPTIONS OF THE PLACE A PRODUCT OR BRAND
OCCUPIES IN A GIVEN MARKET

• MILKMAID
• JOHNSONS BABY LOTION
• COMPLAN
• CHOCOLATE CADBURYS

46
(B) THE PRODUCT MODIFICATION
PRODUCT RELAUNCH TO BOOST UP SALES
QUALITY IMPROVEMENT INCREASING FUNCTIONAL
PERFORMANCE OF PRODUCT DURABILITY, RELIABILITY
ETC.
AMBASSADOR- NOVA
AMBASSADOR VESPA XE PREMIER PADMINI
VESPA 150
NEW LATCHES UNHOLSTRY, ETC.
47
FEATURE IMPROVEMENT
ADDING UP NEW FEATURES THAT EXPANDS PRODUCTS
VERSTALITY, SAFETY, OR CONVENIENCE
FORHANS FLOURIDE
FORHANS COLGATE
COLGATE FLOURIGUARD
ONE PROBLEM FEATURES HIGHLY IMITABLE
STYLE IMPROVEMENT INCREASING AESTHETIC APPEAL IN
CONTRAST TO FUNCTIONAL APPEAL CHANGE IN COLOR /
TEXTURE / PACKAGE
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(C) MARKET MIX MODIFICATION
SALES STIMULATION BY ALTERING MARKETING MIX SLASH
ING PRICES TO ATTRACT NEW CONSUMERS MORE
EFFECTIVE ADVERTISING CAMPAIGNS HEAVY USE OF
SALES PROMOTION TECHNIQUES ALTERING DISTRIBUTION
- CHANNELS
PROBLEM
ALL METHODS ARE HIGHLY IMITABLE
49
PHASE-IV DECLINE
WARNING SIGNAL PERMANENT DROP IN SALES MOST
PRODUCTS EVENTUALLY ENTERS IN DECLINE PHASE RATE
OF DECLINE DEPENDS ON
CHANGE IN CONSUMERS TASTES AND ADOPTION OF
SUBSTITUTE PRODUCTS TECHNOLOGICAL INNOVATIONS
DEVELOPMENT OF EFFECTIVE SUSTITUTES
DECLINING DEMAND . FORCE MANY COMPETITORS OUT
OF MARKET PROMOTION BECOMES SELECTIVE LESS
EXPOSURE
50
STRATEGY IN DECLINE PHASE
IDENTIFY WEAK PRODUCTS THROUGH COMPREHENSIVE
MARKETING RESEARCH
DETERMINE APPROPRIATE RESPONSE

• TO STAY ON
• OR
• TO DROP THE PRODUCT

IF DECISIONS IS TO STAY
THREE OPTIONS

• CONTINUE PAST
• PRACTICES

• CONTINUATION
• STRATEGY

51

• CONCENTRATION - CONCENTRATE RESOURCES IN
• STRATEGY STRONGEST MARKETS

(C ) HARVESTING - REDUCING EXPENSES TO
STRATEGY INCREASE PROFITS
IF DECISION IS TO DROP

• WHEN PRODUCTS RATING FAIL TO MEET
• COMPETITION ON CERTAIN KEY CRITERIA

DROPPING IT COMPLETELY SELLING OR TRANSFERING IT
TO OTHER COMPANY
OPTION
52
PERSONAL SELLING
THIS TOOL IS A DIALOGUE REST OF THE PROMO TOOLS
ARE MONOLOGUES.
PROCESS OF INDUCING AND ASSISTING A
PROSPECTIVE BUYER TO BUY A COMMODITY OR SERVICE
OR TO ACT FAVOURABLY UPON A IDEA THAT HAS
COMMER- CIAL SIGNIFICANT TO THE SELLER
PROCESS WHEREBY THE SELLER ASCERTAINS ACTIVATES
AND SATISFIES THE NEEDS AND WANTS OF THE BUYER TO
THE MUTUAL, CONTINUOUS BENEFIT OF THE BUYER AND
THE SELLER
53
VERY STRONG PROMO-TOOL
INVOLVES TWO-WAY FACE-TO-FACE OR DIRECT
RELATIONSHIP BETWEEN SELLER AND BUYER
A PERSUASIVE PROCESS
FOCUS ON PROBLEM- SOLVING PERSPECTIVE
EDUCATIVE PROCESS
MODERN TREND TOWARD . PRO- ACTIVE APPROACH
HIGHLY CREATIVE
54
PERSONAL SELLING
AMA
THE PERSONAL OR IMPERSONAL PROCESS OF
ASSISTING AND / OR PERSUADING A PROSPECTIVE
CUSTOMER TO BUY A COMMODITY OR SERVICE OR TO
ACT FAVOURABLY UPON AN IDEA THAT HAS A
COMMER- CIAL SIGNIFICANCE TO THE SELLER
ART OF SUCCESSFULLY PERSUADING PROSPECTS
OR CUSTOMERS TO BUY PRODUCTS OR SERVICES
FROM WHICH THEY CAN DERIVE SUITABLE
BENEFITS, THEREBY, INCREASING THEIR TOTAL
SATISFACTION,
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M - MIX
PRODUCT
PRICE
PLACE
PROMOTION
PS
ADV.
SP
PR
SALES MGT

• PLANNING
• BUDGETING
• RECRUITMENT/
• SELECTION
• TRAINING

• COMPENSATING
• MOTIVATING
• DESIGNING
• TERRITORIES
• EVALUATING
• PERFORMANCE

SALES MANAGEMENT
PLANNING, IMPLEMENTATION AND CONTROL OF PERSONAL
CONTACT PROGRAMMES DESIGNED TO ACHIEVE THE SALES
OBJECTIVE OF THE FIRM
56
SELLING STRATEGIES
NEW BUSINESS STRATEGY
.. PRIMARLY CONCERNED WITH OBTAINIGN SALES
SEEKING NEW CUSTOMERS WHO WILL REPUR-
CHASE ON CONTINUOUS BASIS OR NEW BUYERS ON
CONTINUING BASIS (INSURANCE REAL ESTATE)
ASSISTING MIDDLEMEN THAN OBTAINING
SALES
TRADE SELLING STRATEGY
W
R
MERCHANDISING LOGISTICAL PROMOTIONAL PRODUCT
INFO. SUPPORT
57
.. S.F. TO WORK WITH CUSTOMERS
PHARMACEUTICAL SALES REPS
MISSIONARY SELLING STRATEGY
TO CONTACT PHYSICIANS
SELLING TO AN EXISTING CUSTOMER BASE .. AND
PROVIDING
CONSULTATIVE/TECHNICAL SELLING STRATEGY

• TECHNICAL
• APPLICATION
• ASSISTANCE

58
CUSTOMER NEEDS DIFFERENT
PRODUCT/ MKT DRIVEN DESIGN
MARKET DRIVEN DESIGN
COMPLEX RANGE OF PRODUCTS
SIMPLE PRODUCT OFFERING
PRODUCT DRIVEN DESIGN
GEOGRAPHY DRIVEN DESIGN
SALES ORGANIZATION DESIGNS
CUSTOMER NEEDS SIMILAR
59
SELLING STRATEGY
ANALYZE THE SELLING SITUATION
SET SALES FORCE OBJECTIVES
FORMULATE SELLING STRATEGY
DESIGN SALES ORGANIZATION
RECRUIT, TRAIN AND MANAGE
EVALUATE AND CONTROL
60
FACTORS INFLUENCE THE ROLE OF PERSONAL SELLING IN
A FIRMS MARKETING STRATEGY.
EMPHASIS DEVOTED TO PS RELATIVE TO OTHER PROMO
TOOLS
THE FIRMS MKTG. OBJECTIVES, STRATEGY AND
RESOURCES
COMMUNICATIONS TASKS TO BE ACCOMPLISHED BY THE
PROMO- MIX.
THE TARGET MARKET
PRODUCT CHC.
DISTRIBUTION POLICIES
SPECIFIC PS ACTIVITIES REQUIRED
ACCOUNT MGT POLICIES
PRICING POLICIES
61
PERSONAL SELLING PROCES
GETTING SALES LEADS
PROSPECTING

• INTERNAL SOURCES
• EXTERNAL SOURCES

QUALIFYING
GATHERING MORE INFO ABOUT PROSPECTS

• CAN THEY BENEFIT FROM
• PURCHASE
• CAN THEY AFFORD IT
• ARE QUALIFIED TO MAKE
• DECISION?

62

• COLLECTING SPECIFIC INFO ABOUT PROSPECTS
  BACKGROUND, PDT NEEDS
• DETAIL HOME WORK FOR BETTER
  SALES PRESENTATION

PREPARING THE PRE-APPROACH
3.
APPROACHING THE PROSPECT
APPROACH CHOOSEN TO ESTABLISH CONTACT
WITH PROSPECT
4.
HEART OF PERSONAL SELLING
MAKING THE SALES PRESENTATION
5.

• COMMUNICATE PDT.MESSAGE
• BUILDS UP DESIRE FOR
• PRODUCT
• APPROACHES
• STIMULUS- RESPONSE SELLING

63

• BARRIERS SELLING

• Traditional barrier approach
• never ending spiral

• FORMULIZED SELLING
• NEED SATISFACTION
• SELLING

HANDLING OBJECTIONS
ENCOURAGING PROSPECTS TO VOICE OBJECTION
6.

• TO PROVIDE FEEDBACK
• HANDLES OBJECTIONS IN
• POSITIVE FASHION

64
CLOSING THE SALES
ASKING THE PROSPECT FOR ORDER
7.

• PICKING UP CUES AND
• SIGNALS FROM PROSPECTS
• TO KNOW WHEN THEY ARE
• READY TO BUY

FOLLOW-UP THE SALES
ENSURING TIMELY DELIVERY
8.

• PRODUCT . DAMAGE FREE
• INSTALLED PROPERLY

65
SALES PRESENTATION
PRODUCT FEATURES
OBJECTIVES
TO DEVELOP
ADVANTAGES
BENEFITS
ABOUT
KNOWLEDGE
1
MARKETING PLAN
BUSINESS PROPOSAL
2
POSITIVE BELIEFS
3
NEED .. INTO WANT
DESIRE
SPECIFIC PRODUCT IS BEST YOU ARE THE BEST SOURCE
TO BUY FROM
ATTITUDE
4
VE ATTITUDE
5
CONVICTION
CUSTOMER GET CONVINCED ABOUT THE DEAL
6
SALES SUCCES
66
ESSENTIAL STEPS OF PRESENTATIONS
FEATURES ADVANTAGES BENEFITS (FAB)
FULLY DISCUSS YOUR PRODUCT
1.
HOW TO USE
PRESENT YOUR MARKETING PLAN
HOW TO RESEL (FOR RESELLER)
2
(FOR CONSUMER)
EXPLIAN YOUR BUSINESS PROPOSITION
WHATS IN IT FOR YOUR CUSTOMER
67
SALES PRESENTATION
MIX
PARTICIPATION
PERSUASIVE COMMUNICATION
DEMONSTRATION
SALES PERSON
PROOF
DRAMATIZATION
VISUAL AIDS
68
PERSUASIVE COMMUNICATION FACTORS

• USE QUESTIONS
• HAVE EMPATHY
• KEEP THE MESSAGE SIMPLE
• CREATE MUTUAL TRUST
• LISTEN
• HAVE A VE ATTITUDE AND ENTHUSIASM
• BE BELIEVABLE
• LOGICAL REASONING
• PERSUASIVE SUGGESTIONS
• A SENSE OF FUN
• PERSONALIZED RELATIONSHIP
• TRUST
• POSITIVE BODY LANGUAGE
• CONTROLLED PRESENTATION
• DIPLOMACY
• CONVERSATION STYLE

FOR NORMAL PERSUASIVE COMMUNICATION
FACTORS SPECIFIC TO PRESENTATION
69
PRODUCTIVITY

• NON- PERSONAL STIMULATION OF DEMAND FOR A
• PRODUCT, SERVICE OR IDEA BY MEANS OF
• COMMERCIALLY SIGNIFICANT NEWS PLANTED IN
• THE MASS MEDIA AND NOT PAID FOR DIRECTLY
• BY A SPONSOR
• ANY UNPAID FORM OF NON- PERSONAL
• PRESENTATION OF IDEAS, GOODS OR SERVICES

PUBLIC RELATIONS
BORDER CONCEPT
70
PR
BUILDING UP GOOD RELATIONS WITH THE COMPANYS
VARIOUS PUBLICS BY OBTAINING FAVORABLE PUBLICITY,
BUILDING UP A GOOD CORPORATE IMAGE AND
HANDLING OF UNFAVORABLE RUMOURS, STORIES
OR EVENTS

• PRESS RELATIONS
• PRODUCT PUBLICITY
• CORPORATE COMMUNICATIONS
• LOBBYING
• COUNSELING

PR TOOLS
71
PRODUCTS
PEOPLE
USED TODAY TO PROMOTE
PLACES
PR
IDEAS
ACTIVITIES
ORGANIZATIONS
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ADVERTISING
TRANSLATED FROM GREEK MEANS TO TURN PEOPLE
TO IDEA
IT IS A COMMUNICATION PROCESS THAT PERSUADES
OTHERS TO ACT FAVOURABLY UPON THE IDEA, PRODUCT
OR SERVICE WHICH THEN PRODUCES PROFIT FOR SELLER
ANY PAID FORM OF NON-PERSONAL PRESENTA- TION AND
PROMOTION OF IDEAS, GOODS OR SERVICES BY AN
IDENTIFIED SPONSOR
NON-PERSONAL FORM OF COMMUNICATION CONDUCTED
THROUGH PAID MEDIA UNDER CLEAR SPONSORSHIP
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CHARACTERISTICS OF ADVERTISING

• PAID FORM
• NON-PERSONAL PRESENTATION
• AN IDENTIFIED SPONSOR
• INFORMATION AND PERSUASION
• CONTROLLED FORM

CONTENT TIMING FOCUS
CONTRO- LLED BY SPONSOR
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TYPES OF ADVERTISING
OBJECTIVE.. TO EARN PROFIT SOUND BUSINESS PURPOSE
COMMERCIAL ADVERTISING
FOR PROMOTING SOCIAL CAUSES ABSENCE OF ANY PROFIT
MOTIVE
NON-COMMERCIAL ADVERTISING
TO CREATE DEMAND FOR BASIC PRODUCTS
PRIMARY DEMAND
vs
SELECTIVE DEMAND ADVERTISING
TO CREATE DEMAND FOR SPECIFIC BRANDS (BRAND
ADVERTISING)
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DIRECT ACTION
TO GET IMMEDIATE SALES
vs
TO CREATE A FAVORABLE ATTITUDE TOWARDS
THE PRODUCT FOR LONG-TERM GAIN
INDIRECT ACTION ADVERTISING