Basic marketing

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Marketing seminar conducted for a hotel in Metro Manila, training material for non marketing personnel who just need a snap shot of how marketing works for them to use in their respective job

Marketing seminar conducted for a hotel in Metro Manila, training material for non marketing personnel who just need a snap shot of how marketing works for them to use in their respective job

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  • 1. Basic Marketing By romualdo romeo ortiz
  • 2. HOUSE RULES “No one has the monopoly of knowledge.” Be receptive to inputs. Have an open mind. Don’t shoot down an idea, no matter how absurd or crazy it is. Some topics may not be important to you, but may be important to the other participants.
  • 3. HOUSE RULES “We are all equal.” Disregard position / age / gender. Use language you are at ease with. Communicate to understand.
  • 4. HOUSE RULES “Let us not argue nor debate but only discuss.” Graciously challenge a point whenever necessary. Respect the side of others. Share your ideas. Avoid off tangent topics / discussions.
  • 5. HOUSE RULES “Let us be on time.” Please come on time for all sessions.
  • 6. HOUSE RULES “100% Attention to the sessions.” Cellular phones on silent or vibra mode. Phone calls allowed only during break time or off session.
  • 7. HOUSE RULES “Practice 5’S” Clean as you go.
  • 8. Course Objectives 1. To learn the basic concept of sales marketing 2. To have the right framework to perform effectively and efficiently with sales & marketing tasks. (Sales & Marketing Force Competency) 3. To learn the basic Sales Process and selling techniques. (Prospecting, Communication, Objection Handling) goto
  • 9. Basic Concept of Marketing Module 1 By Romualdo Romeo A. Ortiz
  • 10. What is Marketing???? Marketing is an action word with “Market” as the root Word.. And .... Ing . It would be best to define first the root word.. Before we define marketing
  • 11. “Palengke” a place where seller bring their goods to be sold. Also a place where buyers “ mamimili” go to , to buy goods They want What is Market???? It’s a place where the buyer and seller meets to have An exchange to satisfy their needs and wants 1 a (1) : a meeting together of people for the purpose of trade by private purchase and sale and usually not by auction (2) : the people assembled at such a meeting b (1) : a public place where a market is held; especially : a place where provisions are sold at wholesale <a farmers' market> (2) : a retail establishment usually of a specified kind <a fish market> 2 archaic : the act or an instance of buying and selling It’s a place where the buyer and seller meets to have An exchange to satisfy their needs and wants Consist of all potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want.
  • 12. 1 : action or process <running> <sleeping> : instance of an action or process <a meeting> Denotes action Ing 2 a : product or result of an action or process <an engraving> — often in plural <earnings> b : something used in an action or process <a bed covering> <the lining of a coat> 3 : action or process connected with (a specified thing) <boating>
  • 13. It is a process wherein the product is sold and bought by The seller and the buyer ( customer ) respectively Marketing the area of economic activity in which buyers and sellers come together and the forces of supply and demand affect prices “Getting the right goods, to the right people, In the right place, at the right time at the right price with the right level of communication profitably
  • 14. Sales sāl n 1: the act of selling ; esp : transfer of ownership of property from one person to another for a price 2. the business of selling What is Sales ???
  • 15. 2 a (1) : something produced; especially : commodity 1 (2) : Is any something (as a service) that is act or performance that one party can offer to another that is b : marketed or sold as a commodity essentially intangible and does not something resulting from or resultnecessarily following anything of in the ownership of from a set conditions <a product of his environment> Promotion the act of furthering the growth or development of something is a powerful short-term marketing tool the element in an organization’s marketing mix that serves to inform, persuade and remind 1 organization and/or its the market of the a : physical environment : space b : a way for admission products or transit c : physical surroundings : atmosphere Product Marketing anything that can be offered to a market to satisfy a want or need something produced a set of tangible attributes, including 1 archaic : value, worth packaging, color, price, quality, and 2 a : the quantity of one thing and is brand, plus the services that exchanged or demanded in barter or reputation of the seller. sale for another service,amount of may be a good, b : the person, place money given or set idea or as consideration for the sale of a specified thing Price the amount of money given or asked for a specified thing Place The channel /method where The product /service is sold or offered can be real or virtual
  • 16. •Brand Promotion •Advertising: tri media, posters, cinema videos, new media •PR & Events sponsorship •Sales promotion •Trade promotion •Telephone selling •Brochures •Catalogues •Direct Mail •Sales force Promotion •Remote •Multi-media •Telephone •Paper •Face to face •Shop •Personal service •Third party agency Product Marketing Place Price • Customer benefit • Quality • Design • Technical feature • Branding • Packaging • Service • Training •Discounts •Bundling items or price separately •Lump sum or piece rate •Rebates or loyalty scheme •Undersell or oversell the competition
  • 17. 4 C vs. 4 P Product Price Customer Want/ Need Convenience Place Cost Communication Promotion
  • 18. Right frame work for marketing Module 2 By Romualdo Romeo Ortiz
  • 19. Basic Sales Transaction Offers Product Buyer Seller Money Satisfaction Sales sāl n 1: the act of selling ; esp : transfer of ownership of property from one person to another for a price 2. the business of selling
  • 20. Simple Marketing System PROMOTION COMMUNICATION Good/Service /Product Sellers Buyers Money INFORMATION PRODUCT PRICE PLACE
  • 21. Sales vs. Marketing The selling concept Factory Products Selling & Promoting Profit through sales volume Integrated Marketing Profit through customer satisfaction The marketing concept Target Market Customer needs
  • 22. Sales Vs. Marketing Sales • Introverted • Inward looking • Starts w/ the product • Shorter time horizon • Is about revenue this week • Focus on one aspect of your business Marketing • Extroverted • Outward looking • Starts w/ the customer • Longer time horizon • About profit this year • The ethos of the organization
  • 23. What a company offers in the marketplace can be categorize to five Pure Tangible Offer consist only of a tangible Good such as soap, toothpaste, or salt Tangible w/ accompanying services Car , Computer Hybrid Equal part of goods and services Restaurant food and service Major services +minor goods & services Pure services Airline Major is the service, minor is the tangible Psychotherapy, massages
  • 24. Lets briefly define & discuss Services are intangible. Unlike physical products it can not be seen, tasted, felt, heard or smelled before they are bought. What customers do to reduce uncertainty, they look for signs or evidence of the service quality And they draw their inferences about service quality on 6 elements Place, People, Physical evidence, Processes communication (promotion )materials, symbols (branding) and price they see.
  • 25. Place Ambience, The physical setting must connote quick, precise, concise service, clean, layout of the store, traffic flow should be carefully planned People the selection , training, and motivation of employees make a huge impact on customer satisfaction Physical evidence Building/Façade etc Processes Advertising Price •Look and observable style of dealing with customer that carries out its intended Customer Value Proposition (cvp), cleanliness , speed or other benefit, should be and looks like state of the art materials: Brochure, leaflet , poster, streamer , etc ,symbols (branding) Is a name , term, sign, symbol or design or a combination of them intended to identify the goods or service of one seller or group of sellers and to differentiate them from those of competitor The value offered for the service
  • 26. People Physical evidence Processes Service quality Place, Physical evidence, Communication (promotion )materials symbols (branding) Price Processes
  • 27. Lets briefly define & discuss For product , marketers are task to add abstract ideas, Marketing’s task is to put physical evidence and imagery on the abstract offers. Whereas Task of service provider is to "manage the evidence," to tangibilize the intangible,
  • 28. Lets briefly define & discuss What we wish to provide the customer is a service that can eventually give him A TRULY MEMORABLE EXPERIENCE
  • 29. Basic Sales Process Module 3 By Romualdo Romeo Ortiz
  • 30. Six Steps In Selling Process • • • • • • Prospecting Researching Approaching the prospect Presentation Handling objections Closing the deal
  • 31. Prospecting A planned and systematic process of identifying qualified or possible people to avail of our products or services.
  • 32. Why is Prospecting Important? Prospecting salesman is important to every because it means finding suitable people to whom you can sell your product or services and without enough of such people, no salesman can survive.
  • 33. Increasing your BATTING AVERAGE • By focusing on the QUANTITY of your leads • By improving the QUALITY of your leads. • By increasing your conversion ratio through QUALITY SELLING SKILLS.
  • 34. P - Provide yourself a list of prospects. R O - Record new prospects daily. - Organize your prospecting activities into a regular habit. - Subject “suspects” to the ARENA test - QUALIFY them. - Plan your search. - Exercise your imagination. - Collect referred leads from every contact. - Train yourself to eliminate “china egg.” S P E C T
  • 35. QUALIFYING THE PROSPECT - Ability to pay - Reasonably approachable - Eligibility to buy - Need or want - Authority/Influence in Decisions
  • 36. WORKSHOP Where do you get prospects? List down your prospects.
  • 37. Prospecting • • • • • • Referral Prospecting Non-referral prospecting KKK Among people you know Among old clients Among total stranger
  • 38. Researching • • • • • • • • Personal Information Financial resources Buying Pattern Personality type Schedule Company profile Product line Decision Maker The discount & Freebie grabber : the type who would always demand Something extra, like discounts, rebates & gifts The evasive buyer: difficult to get hold, does not reply to text, calls Keeps rescheduling appointments. Get help from his secretary The complaining buyer always have something against you & your Company, treat this with understanding, empathy & patience Domineering buyer a strong willed & powerful & difficult to get along With, but can be a positive ally & friend once you gain his trust Analytical suspicious buyer this one wants everything in writing, hate Foul ups, be careful when dealing with this, impress him by name Dropping of trusted people & companies
  • 39. THE APPROACH Making the Right Impression
  • 40. Approaching The Prospect • By phone or by email • By sending formal proposal • By meeting prospect personally
  • 41. 10 Effective Strategies In Approaching Prospects • Introducing yourself • Introducing your product • Emphasizing consumer benefit • Piquing the prospects curiosity • Offering premium or reward • • • • • Starting with a demo Posing questions Using statistics Paying a complement Obtaining a referral
  • 42. 12 Essentials of an Effective Approach • Pick the proper place and time correct timing • Use interesting opening statement or question use visual grabber • Promptly hand over your business card • Be brave & confident but courteous • Gauge the mood of your prospect • Strike up a conversation • Ask Questions • Make the prospect feel at ease • Get the complete undivided attention • State your offer clearly and succintly • Make an appointment • Keep your appointment and arrive on time
  • 43. Elements of a Formal Sales Proposal Title Page: Present an attactive, professional Looking title page that clearly specify the name Of sender and the date Cover Letter: Grab attention by briefly summing Up sales offer. This should be long enough to cover The essential parts & short enough to keep it exciting Table of content:List all the tables, illustrations In addition to all section & subsections Body present an outline of the prospects current Situation priot to use of the proposed system. Highlight Benefits and sales offering. Show cost benefit ratio & amount of investment needed.Show proof that offer Will result to tremendous savings & multiple benefit Summary: state your proposition in a single brief Concise statement that can easily & quickly read & understood Contract Provides the prospect with a firm legal Document to sign or discuss
  • 44. Proper Introduction  USE HIS NAME CORRECTLY The sound of a person’s own name is the sweetest sound in his language. Always address the customer by name, if you can possibly find out his name.  USE YOUR NAME CORRECTLY When you state your name give your first name first, then your surname.
  • 45. Make THE HANDSHAKE Work For You, Not Against You “TAKE YOUR LEAD from the customers.”
  • 46. COMMUNICATION SENDER ------------ MESSAGE ------------- RECEIVER
  • 47. One-way Communication V.S. Two-way Communication
  • 48. 3 ELEMENTS OF COMMUNICATION Non-verbal (Gestures) Tone of Voice Words Used
  • 49. Words    Include Technical Jargon only if necessary Use Acceptable Levels of the English or Pilipino Language Connotation and Associations of Words must be positive
  • 50. INTERACTION SKILLS Questioning and Listening
  • 51. INVESTIGATION Asking Right Questions at the Right Time
  • 52. Why Ask Questions? When asked the right way and at the right time, questions can give you direct insight into the heart and soul of your prospects and provide you with road map of where you should take your discussion. To obtain information To provide information To check comprehension To measure interest To encourage client participation
  • 53. Asking Questions: How to Do It Two Main Types of Questions Open: • Open questions require some amount of explanation to be answered. • When you want to explore what your prospect thinks about a particular vehicle, you should use open questions. • However, if you need a simple yes or no response, then open questions are definitely out. Closed: • Closed questions can be answered with a simple yes or no or another such specific response. • If you merely want to get specific answer to specific questions - and to avoid wasting time with a lot of needless discussion - then you should use closed questions.
  • 54. Use of Questions TO:    Determine Problems Understand Requests Establish Needs TO:  Ask Customer to explain requests or problems TO:  Ask for more information to determine a course of action TO:  Get Agreement USE: Open Questions USE: Open Question USE: Both Open & Closed USE: Closed
  • 55. WORKSHOP How do we approach . . . 1. Prospects who are endorsed or referred to us? 2. Prospects who walk-in the branch the first time. 3. Regular walk-in Top customers.
  • 56. The Presentation The AIDA approach A ttention I nterest D esire A ction
  • 57. Planning Your Presentation • • • • • • Product Target client Call Objective Product story Product tag line Opening statement • Main presentation • Possible objection & counter objections • Sources • Closing
  • 58. Ingredients of Effective Presentation • Establish your legitimacy and demonstrate your expertise • Establish rapport • Mention all the benefits your product or service offers • Have conviction • Be clear accurate and precise • Be creative and give life to the presentation • Customize your presentation according to the personality, interest & needs of the client • Try to keep clients interest and focus on your presentation • Give the client a chance to speak out and listen to everything he has to say • Provide the client with a print out of your presentation • Rehearse and critique your presentation
  • 59. Handling objections
  • 60. “The salesman’s job starts when the customer says NO! ”
  • 61. Objection Handling • Remember that answering an objection is not a matter of pointing out that the prospect is wrong, or his logic faulty. • You must work with him to show proposition will do for him. what your
  • 62. Objection Handling • The only way to answer an objection satisfactorily is to sell Benefits and more Benefits until he is convinced that the sacrifice he must make to obtain your product is worthwhile. To do this, one must have the techniques required in handling objections.
  • 63. The ABC’s in Dealing with the “NO” Anticipating the Common Objections Boomerang Compensating Delaying your answer
  • 64. The ABC’s in Dealing with the “NO” Expressing it as a question Factual Justification Giving a Demonstration Handling it with a Closing Action
  • 65. WORKSHOP What do you think are the common objections that may be thrown at you? How will you handle them? What would Be your answers to these objections?
  • 66. Objection Handling Product / Feature Objections – • This can be avoided if the Branch Manager/Sales Agent is well prepared. The product or service will have been offered in the first place because it genuinely contains benefits for the buyer
  • 67. Objection Handling Competition / Loyalty Objections • This is an expression of the prospect’s confidence in his existing supplier. This is a real challenge to the Branch Manager/Sales Agent . • Do not knock the opposition. It would amount to an attack on the client’s judgment.
  • 68. Objection Handling Competition / Loyalty Objections • Here the Branch Manager/Sales Agent must be patient. • Offer your service as a safeguard. This will not commit the buyer. Then, find good reasons for returning to see him.
  • 69. Objection Handling Price Objections – More often than not, the propsect is not so much interested in price as in VALUE FOR MONEY. So the Branch Manager/Sales Agent points out the benefits of his proposal in terms of its profitability or savings and links them to the consequent return to the prospect.
  • 70. Objection Handling Company Objection Based upon the company’s financial standing, personnel, business. Time / Delay Objections – This is a difficult one to cope with because it seems a reasonable thing for the buyer to do. After all it could be genuine. On the other hand, it could be a means of avoiding making a decision for some other reason. It could be the prospect is still not convinced, or that he genuinely needs time to think.
  • 71. Objection Handling Techniques 1. Anticipating the Common Objections (“Raise it First”) There are some objections that can be raised by the branch manager/sales agent at the initial stages of his/her presentation. However, this technique must be used carefully since the objection that was raised by the branch manager/sales agent may not be a concern of the prospect in the first place.
  • 72. Objection Handling Techniques 2. Boomerang – The objection raised by the prospect is used by the branch manager/sales agent to reinforce his claims or his presentation.
  • 73. Objection Handling Techniques 3. Compensating (Admit and Compensate) There will be times when a branch manager/sales agent will have to simply admit that the objection of the prospect is valid -- but he cannot take this sitting down. A prospect may say that the product is very expensive, and while the branch manager/sales agent may accept that his product may be premium priced, he compensates by explaining the concept of “value for money” by giving the other benefits of his product.
  • 74. Objection Handling Techniques 4. Delaying your answer To buy more time, a branch manager/sales agent may respond by saying “Let me answer that question in a little while.” Just be careful not to forget to go back to the objection afterwards.
  • 75. Objection Handling Techniques 5. Expressing it as a question Another way of handling objections is through the use of questions. Rephrase the objection and ask the prospect questions to clarify your thinking as to what the prospect is really asking for.
  • 76. Objection Handling Techniques 6. Factual Justification The use of facts and data can further support your claims or answers. The more objective the data is, the more reliable it can be used to handle objections. 7. Giving a Demonstration A good way of dealing with an objection is through “SHOWING.” Let them appreciate the product through their other senses.
  • 77. Objection Handling Techniques 8. Handling it with a Closing Action Challenge them to purchase if you are able to prove that you’re right.
  • 78.    How You Can Be Prepared To Answer Any Objection sure your Attitude towards objections Make Show your prospects that you welcome them. is right. Acquire sufficient Knowledge on your company and the products or services you are offering. Develop Skills in handling objections by listing all objections and questions you are likely to hear from prospects and the best answers to each questions.
  • 79. How You Can Be Prepared To Answer Any Objection   Create the best combination of words to sell enough benefits to get him to agree his question has been answered satisfactorily. Believe in what you’re saying!
  • 80. K-A-S-H Knowledge Skills Attitudes HABITS
  • 81. Handling Objections 8 common sources of objection • They do not trust you and your company • They have doubts about the quality of the products/service you are offering • They are not convince that they need the product / service • The product/service is not attractive to them& it does not have what they are looking for • They cannot afford the productor they are not satisfied with the price package • They are not satisfied with the terms & conditions of the sales • They are not satisfied with your delivery of service • The product is new & unknown no demand yet
  • 82. 10 Steps In Handling Objections Or Addressing Concern • Prepare ready answer to possible objections • Listen to all the clients questions & querries & objections • Respond promptly • Keep a cool head • Be friendly & pleasant • • • • Always keep to the point Reassure the client Allow small concession Don’t hesitate to make referral • Don’t lose contact with the client
  • 83. How to Respond Promptly • • • • • • The direct approach The indirect approach The boomerang approach The probing & questioning approach The compensation/ offsetting approach The ignore approach
  • 84. Handling Difficult Sales Situation • • • • Your first sales call Facing the competitor The demanding customer Customer tantrums ( hot headed difficult customer ) • Personal favor • The elusive customer • Fear of rejection
  • 85. Closing the Deal
  • 86. Closing A Deal When to close the deal…. When the client… • Closely examines the product and read the label, ask you to describe the product/service in more details or asks a lot of questions regarding the terms of the sale • Nods in agreement or say yes to your explanations • Smiles a lot and seems to be in a pleasant mood • Asks about the details of delivery or installation • Starts to negotiate about the price, discounts, trade offs , terms and policies of the sales, including service warranties • Asks for assurance regarding products quality, durability etc
  • 87. Closing A Deal When to close the deal…. When the client… • • • • Asks about the mode of paymentand related company policies Request a demo of the product or a product sample for trial Request for a plant tour or an audience with your superior Shows an attitude of ownership such as “ I agree that this original Amorsolo painting will definitely enhance our living room” • Wants to see the manual for how to correctly operate your product
  • 88. How To Close A Deal Keep this in mind that your goal is to Obtain from the client. • A firm commitment , a signed order a verbal acceptance that the client will buy your product/service • A positive agreement , a promise that he will buy in the immediate future
  • 89. How To Close A Deal How to determine the state of your customer mind Your clients response on the following will give you a good idea • Have I explained everything to your satisfaction so far • Was I able to address all of your concerns • Have I provided the solutions to your problems • Are you convinced that product x is truly qualified to satisfy your needs and wants
  • 90. Closing techniques • The Direct Close • The positive choice close • The boomerang • The summary close • The Reference verbal proof • The concession close • The Example close • The caution close/score method • The isolation close • The Benjamin Franklin close • The sharp single close • The negative close • The puppy dog close If client customer is already showing visible buying signal don’t hesitate to ask directly Whether she would want to buy
  • 91. Direct close Indication :Buyer is sending buying signal and answers yes to your leading questions, then it is safe to assume that customer is interested enough to buy, do not hesitate to ask the customer directly whether she would want to buy the product. Ex. Do we have a deal? Can I have our commitment When can I call you for an order? Do we have an agreement? Can I have your order? How soon or where do you like the products delivered? When is the best time to get the P.O.? Can I take your order now and I can pick up the payment this afternoon?
  • 92. Positive choice Indication: Present the client with two choices whichever he picks will imply that he has agreed to buy. In other words, the moment he chooses implied he has accepted the offer Example Do you prefer the larger blister pack or the smaller ones? The sachets or poly bags? Would you like the ads to start in March or April? Do you prefer to pay in cash or instalment? Blue or red?
  • 93. Boomerang Indication: you answer the client question by asking another question, this one meant to imply that the client is buying Client asking for a particular feature, ask if he would prefer his unit to come with That feature. Does this come in a variety of color’s ? How many color’s would you prefer?
  • 94. Summary close Indication: involves first summarizing the main points of your presentation, emphasizing all the significant qualities of your product that the other products of the same kind do not have. Ex. Our product is to so and so. We will provide you with so and so and so. And here The details of your order....
  • 95. Reference/Verbal proof close Indication: Citing a recognized and trusted authority as a reference. Ex. Our product has passed ISO 9001 standard Our existing clients include some of the top companies in the Philippines like, SMC, Robinson, Ayala Our product is biodegradable and duly approved by BFADD
  • 96. Concession Close Indication: In sales lingo, a concession is something that costs you or your company a little but has a high perceived value for the customer. Ex: I will offer you a small price reduction f you order now. I will offer you a small specification change at no extra cost We offer a 10 % discount for a Php 3 million minimum purchase Buy within the next two weeks and you can avail of a 20 % discount
  • 97. Caution close/Score Method Instead of telling the client what she will gain if she buys your product, here point out instead what the client will lose if she does not avail of the offer. Do not sound threatening, rather adopt a helpful attitude, works will client who does not want to lose, or who tend to regret their decisions Ex: If you do not place your order now there is a chance the Product will be out of stock and the inflation rate will be higher In the feature. Our special discount is good until next week, if you do not order by then you will not be able to avail the promo price Act now or you miss out on our special 40% discount
  • 98. Isolation close Indication: after neutralizing all of the clients concerns, he comes up with last minute one, tell him you will isolate it and work on that issue only until you have manage to dissolved it. Ex: Is this the only thing bothering you? If I could remove your doubts about this Will you buy? If I can shorten the delivery time as you want, will that make you happy?
  • 99. Ben Franklin Close Indication: Write in a piece of paper the Yes and NO column. Explain to client to list down all his reasons favoring the decision under the Yes, and all his reasons against the decision in the No column, Then help the customer list down all the positive things about offer that you have agreed almost always the benefit you helped him list will outnumber the clients objections
  • 100. Sharp angle Indication: Use this method when you have a tough client who fires a lot of demanding questions at you. The moment he asks for something, ask him whether he will sign the contract if you can provide what he wants?
  • 101. Example close Indication: Describe how a former client with the same objection decided to take the risk and accepted the offer and how they are doing well. Or you may describe how a previous customer with the same dilemma refused your offer and ended up losing. Quickly follow up this example with your closing question
  • 102. Negative close Indication: This technique emphasizes the disadvantage or perceived weakness of the product or service and asking the client if he still wants to proceed in buying. Ex: Here is a refrigerator that exceeds customer expectation With respect to quality, durability and service warranty. The only Problem is it has too much space inside that a newly wed couple Would find it difficult filling up. Will this ref fit your need in the Next couple of years? Will you pay in cash or credit?
  • 103. Puppy dog close Indication: Involves using the product as a lure, letting the client sample it and take it home like a puppy dog. Like a puppy dog it is expected to work into the heart of the client until he finds it indispensible. This work extremely well especially if your product has new features that you are sure your client will fall in love with. After some time when you feel the “puppy dog” has done its job, drop by and take it back and to have your order form signed
  • 104. Thank you