Selling & pricing strategy

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Selling & pricing strategy

  1. 1. PRINCIPLES OF MARKETING Selling & Pricing Strategy Ashraf Alsinglawi B.Sc. Pharmacy, MBA05/02/2013 Ashraf Alsinglawi 1
  2. 2. Relationship Selling vs. Traditional Methods: Definition and Purpose• Promoting is an important method of communicating the benefits of a product or service.• The traditional way of selling does not take into account developing a long-term relationship with customers and is more concerned with just making a sale.• The proper way of selling in a marketing environment is relationship selling.• This is concerned with solving customer product needs and delivering long-term customer service. 05/02/2013 Ashraf Alsinglawi 2
  3. 3. Relationship Selling vs. Traditional Methods: Definition and Purpose• Relationship or consultative sales is a sales technique that focuses on building, maintaining, and enhancing interactions in order to develop long- term customer satisfaction.• Key Differences Of Traditional Selling And Relationship: 05/02/2013 Ashraf Alsinglawi 3
  4. 4. Relationship Selling vs. Traditional Methods: Definition and Purpose• Key Difference #1: Consulting:  just selling products and services vs. selling, providing advice, assistance, and counsel  • Key Difference #2: Consumer Interest: closing the sale vs. freedom to act in the consumers best interest 05/02/2013 Ashraf Alsinglawi 4
  5. 5. Relationship Selling vs. Traditional Methods: Definition and Purpose• Key Difference #3: Planning: not have given much thought of any time to sales planning vs. prepared sales plan for overall forecasted sales and establishing a lot of talking points about the benefits • Key Difference #4: Problem Solving: most sales time telling customers about the product and downloading facts, statistics, or information directly to the customer vs. time investing in problem- solving for customer 05/02/2013 Ashraf Alsinglawi 5
  6. 6. Relationship Selling vs. Traditional Methods: Definition and Purpose• Key Difference #5: Teams: a lone wolf approach vs. team approach• Key Difference #6: Product Benefits: provide proposals about just the product and the pricing vs. focus on key product benefits that the product will offer the consumer• Key Difference #7: Follow-Up: making the sale in the short term and delivering the product vs. high concern about long-term relationship development through new follow-up techniques, social networking, maintenance reminders and gifts… 05/02/2013 Ashraf Alsinglawi 6
  7. 7. Summary• Smart companies realize that the key to long-term sales results and a happy customer is using relationship selling. Relationship or consultative selling is a sales technique that focuses on building, maintaining, and enhancing interactions in order to develop long-term customer satisfaction.• There are many differences between the sales methodology of traditional and relationship selling. The key focus of relationship selling is making the customer the ultimate focus and delivering long- term customer Ashraf Alsinglawi 05/02/2013 satisfaction. 7
  8. 8. Personal Selling: The Steps of the Selling Process• Personal selling is part of the overall promotional mix, which also contains advertising, sales promotion and public relations. • Personal selling is when a personal paid-for communication occurs between two people in an attempt to influence each other. 05/02/2013 Ashraf Alsinglawi 8
  9. 9. Personal Selling: The Steps of the Selling Process• Benefits Of Personal Selling: The general rule is that personal selling should be used when the target market is small in size and when the product is complicated and/or costly.• Due to the variations in the products that one sells and the variations in customers needs, personal selling is the ideal marketing approach. 05/02/2013 Ashraf Alsinglawi 9
  10. 10. Personal Selling: The Steps of the Selling Process• Personal Selling Steps: (sales process or cycle)1. Generating Leads: or (prospecting) identifying the people in the geographic area who are most likely to buy the product. Referrals are when friends recommend your business to their friends. This word of mouth is usually the best way of gaining customers. 05/02/2013 Ashraf Alsinglawi 10
  11. 11. Personal Selling: The Steps of the Selling Process2. Qualifying Leads: when a person has a recognized need, a willingness to see a salesperson and buying power.3. Approaching The Customer And Probing Needs: conduct a pre-approach where homework is completed on the customer. create a needs assessment of the customer by creating a customer profile. figure out what issues the customer may have and how to solve them with your products. 05/02/2013 Ashraf Alsinglawi 11
  12. 12. Personal Selling: The Steps of the Selling Process4. Developing And Proposing Solutions: a short presentation in which you will make a sales proposal to a prospective customer. You should have a list of recommendations and how you can help customers solve a current issue.5. Handling Objections: Use price plans for price objections Know more about your competitors Try to manage objections by your product’s features that will make the solution. 05/02/2013 Ashraf Alsinglawi 12
  13. 13. Personal Selling: The Steps of the Selling Process6. Closing The Sale: ask for the sale after the presentation be a good negotiator never gave up handle every objection be in good quality, polite and professional.7. Following Up: ensure delivery of the order that the quality is excellent that you answer all of the questions. that you call after each order and thanks the customer for the business emails and postcards are also used to remind the customer about your products excellent customer service. 05/02/2013 Ashraf Alsinglawi 13
  14. 14. Summary• Personal selling is part of the overall promotional mix, which also contains advertising, sales promotion and public relations. Personal selling is when a personal paid-for communication occurs between two people in an attempt to influence each other. The personal selling steps are generating leads, qualifying leads, approaching the customer and probing needs, developing proposing solutions, handling objections, closing the sale and following up. Finally, relationship selling is when a company builds and maintains an ongoing relationship with their clients in order to develop long-term partnerships. 05/02/2013 Ashraf Alsinglawi 14
  15. 15. Pricing Objectives: How Firms Decide on a Pricing Strategy• Price And Pricing Strategies: Price is one of the four Ps that make up the marketing mix. The other Ps of the marketing mix are product, promotion and place. A consumer must pay a price for a product or service, and price is what is given up in exchange to acquire a good or service. Price is very important to the marketer as well because it is the revenue thats acquired! Revenue is the price charged to customers multiplied by the number of units sold. 05/02/2013 Ashraf Alsinglawi 15
  16. 16. Pricing Objectives: How Firms Decide on a Pricing Strategy1. Profit-Oriented Pricing Objectives: Profit-maximization pricing means setting prices so that total revenue is as large as possible relative to total costs. This is the prime pricing strategy to use if you are in a monopoly. There are some other ways that the you can maximize profits: increase customer satisfaction, reduce costs, improve product efficiency and implementing more effective mass distribution. 05/02/2013 Ashraf Alsinglawi 16
  17. 17. Pricing Objectives: How Firms Decide on a Pricing Strategy2. Sales-Oriented Pricing Objectives: Sales-oriented pricing objectives are based on either market share or unit/dollar sales. Market share is a companys product sales as a percentage of total sales for that industry, and it can be shown via revenue or units. (achieved by aggressive pricing) You could also pursue a sales maximization strategy by not to be concerned with increasing market share but instead to be concerned with maximizing sales. This method means that you will not worry about the competition, the market or even profits - just sales!! (Large discounts) can result in a huge increase in sales. The cash infusion philosophy should only be a short run objective since it can hurt profits in the long run because products are so heavily discounted. 05/02/2013 Ashraf Alsinglawi 17
  18. 18. Pricing Objectives: How Firms Decide on a Pricing Strategy3. Status Quo Pricing Objectives: is a very conservative strategy since its objective is to maintain existing prices or meet competitors prices. If the competitors start increasing their production and sales, then you might need to change your pricing strategy. It depends where you are standing from your competitors. 05/02/2013 Ashraf Alsinglawi 18
  19. 19. Summary• Pricing is the most flexible of the overall marketing mix because it can be increased or lowered at any time. Companies can choose from either profit-oriented, sales-oriented or status quo pricing strategies to market their products or services. The right strategy depends on market conditions, the competition and overall corporate philosophies. In the end, the pricing strategy the company chooses to follow today might need to be altered based on changes to sales, profits, revenues and competitive threats! 05/02/2013 Ashraf Alsinglawi 19
  20. 20. All lasting business is built on friendship. alsinglawi@gmail.com +96279950400305/02/2013 Ashraf Alsinglawi 20

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