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Sales & Marketing


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Sales & Marketing

  1. 1. Marketing & Sales How to Build Profitability Prepared by: Simin Foster PB Consulting & Training Services [email_address] November 2004
  2. 2. Presentation Objective <ul><li>Assist you in creating sustainable value and differentiation for your business, and maximize your profitability. </li></ul>
  3. 3. Presentation Content <ul><li>Part 1: The Key Building Blocks of Marketing & Sales – Doing it Right! </li></ul><ul><li>Part 2: Doing Business in the “Experience” Economy – Maximizing Profitability! </li></ul>
  4. 4. Part 1: The Key Building Blocks of Marketing & Sales <ul><li>What is Marketing? What is Sales? </li></ul><ul><li>Marketing Context & Process </li></ul><ul><li>Marketing Mix Strategies </li></ul><ul><li>What is in a Marketing Plan? </li></ul><ul><li>Designing & Managing Sales Forces </li></ul><ul><li>Personal Selling </li></ul>
  5. 5. What is Marketing? <ul><li>Marketing involves a company’s process for: </li></ul><ul><ul><li>Product & Service definition - Characterizing products & services </li></ul></ul><ul><ul><li>Positioning - Identifying & targeting market segments </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Promotion – Communication with the customer </li></ul></ul><ul><ul><li>Placing - Selecting channels of distribution </li></ul></ul>
  6. 6. What is Sales? <ul><li>Sales is a function that a company performs to establish personal link to the customer: </li></ul><ul><ul><li>Delivering products & services </li></ul></ul><ul><ul><li>Taking Orders </li></ul></ul><ul><ul><li>Creating awareness and/or demand </li></ul></ul><ul><ul><li>Offering technical advise to customers </li></ul></ul>
  7. 7. Marketing Context <ul><li>Main Actors & Forces in Marketing: </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Intermediaries </li></ul></ul><ul><ul><li>Partners </li></ul></ul><ul><ul><li>Stakeholders </li></ul></ul><ul><ul><li>Environmental Forces (demographic, economic, technological,, social/cultural) </li></ul></ul>
  8. 8. The Marketing Management Process <ul><li>Market research & analyses </li></ul><ul><li>Setting marketing goals & strategies </li></ul><ul><li>Planning the Marketing Program – The Marketing Mix: Positioning, Product, Price, Promotion& Channels of distribution </li></ul><ul><li>Implementing the Marketing Plan </li></ul><ul><li>Evaluating marketing performance </li></ul><ul><li>Continuous monitoring & feedback - Updating & fine-tuning goals, strategies & plans </li></ul>
  9. 9. The Marketing Mix Strategy <ul><li>Positioning – Targeting, Unique Selling Proposition & Branding </li></ul><ul><li>Product - Service Attributes </li></ul><ul><li>Pricing Strategy </li></ul><ul><li>Promotion Mix </li></ul><ul><li>Place - Distribution Channels </li></ul>
  10. 10. Marketing Plan <ul><li>Key Elements: </li></ul><ul><ul><li>Executive Summary </li></ul></ul><ul><ul><li>Current Marketing Situation – Researching & analyzing market forces & environmental trends </li></ul></ul><ul><ul><li>Opportunity & Issue Analysis – Researching market segments & Selecting target markets </li></ul></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Marketing Strategy – Differentiation, Positioning, Branding, Going Global, Promotional Mix… </li></ul></ul><ul><ul><li>Action Plans – Organizing & Implementing Marketing Programs, e.g. The Communication Plan </li></ul></ul><ul><ul><li>Projected Profit & Loss Statements </li></ul></ul><ul><ul><li>Controls – Evaluating & Controlling Marketing Performance </li></ul></ul>
  11. 11. Effective Communication <ul><li>Identify target audience </li></ul><ul><li>Set objectives – awareness, generate leads, new product launch…… </li></ul><ul><li>Define Requirements – reach, frequency…. </li></ul><ul><li>Establish budget – look for partners to do joint promotion </li></ul><ul><li>Prioritize spending </li></ul><ul><li>Decide on the communication mix – be creative in using Public Relations opportunities </li></ul><ul><li>Maintain consistent message / look </li></ul><ul><li>Measure results </li></ul>
  12. 12. Communication Mix <ul><li>Advertising – any paid form of non-personal presentation of ideas, goods, or services </li></ul><ul><li>Sales Promotion – Short term incentives to encourage purchase </li></ul><ul><li>Public Relations – Non-paid favorable press </li></ul><ul><li>Personal Selling – Oral presentation for the purpose of making sales </li></ul>
  13. 13. Designing the Salesforce <ul><li>Salesforce Objectives </li></ul><ul><li>Salesforce Strategy </li></ul><ul><li>Salesforce Structure </li></ul><ul><li>Salesforce Compensation </li></ul>
  14. 14. Managing the Salesforce <ul><li>Recruiting </li></ul><ul><li>Training </li></ul><ul><li>Directing </li></ul><ul><li>Motivating </li></ul><ul><li>Evaluating Performance </li></ul>
  15. 15. Personal Selling <ul><li>Selling </li></ul><ul><ul><li>Prospecting & Qualifying </li></ul></ul><ul><ul><li>Pre-approach </li></ul></ul><ul><ul><li>Approach </li></ul></ul><ul><ul><li>Presentation & Demonstration </li></ul></ul><ul><ul><li>Handling Objections </li></ul></ul><ul><ul><li>Closing </li></ul></ul><ul><ul><li>Follow-up </li></ul></ul><ul><li>Negotiation </li></ul><ul><ul><li>When to Negotiate </li></ul></ul><ul><ul><li>Formulating a Bargaining Strategy </li></ul></ul><ul><ul><li>Bargaining Tactics </li></ul></ul><ul><li>Relationship Management </li></ul>
  16. 16. Part 2: Doing Business in the “Experience” Economy <ul><li>Creating Powerful and Sustainable Value and Differentiation </li></ul><ul><li>The Ultimate Profitability Zone </li></ul><ul><li>What’s Next?? </li></ul>Reference: The Experience Economy, by B. Joseph Pine & James H. Gilmore
  17. 17. Experiences – A New Source of Value <ul><li>Experiences are as distinct from Services as Services are from Goods </li></ul><ul><li>Goods are tangible products that companies standardize and inventorize </li></ul><ul><li>Services are intangible activities performed for a particular client </li></ul><ul><li>Experiences are memorable events that companies stage to engage individual clients in a personal way </li></ul>
  18. 18. Experiences – A New Source of Value <ul><li>Unique Products & Services are no longer enough - The Internet is the greatest force for commoditization </li></ul><ul><li>Businesses must adopt differentiation by staging “Experiences” to turn-on and engage their customers - While the work of the experience stager perishes, the value of the experience lingers </li></ul><ul><li>Customers value and pay a premium for “Experience” - “Experiences” are the foundation for sustainable differentiation & future economic growth. </li></ul>
  19. 19. Price of Birthday Offerings (The Experience Economy, by B. Joseph Pine & James H. Gilmore)
  20. 20. The Progression of Economic Value (The Experience Economy, by B. Joseph Pine & James H. Gilmore)
  21. 21. Staging Experiences is about “Engaging Customers” <ul><li>The 4 realms of “Experience”: </li></ul><ul><ul><li>“ Entertaining” experiences are passively absorbed by customers </li></ul></ul><ul><ul><li>“ Educational” experiences are actively absorbed by customers </li></ul></ul><ul><ul><li>“ Escapist” experiences involve active participation while immersed in an environment </li></ul></ul><ul><ul><li>“ Esthetic” experiences involve passive participation while immersed in an environment </li></ul></ul><ul><li>The richest experiences encompass aspects of all four realms </li></ul>
  22. 22. Creating Experiences <ul><li>Theme the Experience: </li></ul><ul><ul><li>Envision a well-defined theme </li></ul></ul><ul><ul><li>Script a participative story </li></ul></ul><ul><ul><li>Mix experience of time, space & matter </li></ul></ul><ul><ul><li>Create multiple places within a place </li></ul></ul><ul><ul><li>Theme should fit the company’s character </li></ul></ul>
  23. 23. Creating Experiences <ul><li>Harmonize Impressions with Positive Cues: </li></ul><ul><ul><li>The Experience must leave indelible impressions </li></ul></ul><ul><ul><li>Introduce cues affirming the nature of the Experience </li></ul></ul><ul><li>Eliminate Negative Cues: </li></ul><ul><ul><li>Eliminate cues that distract from the theme </li></ul></ul><ul><ul><li>Too many haphazard cues can ruin an experience </li></ul></ul>
  24. 24. Creating Experiences <ul><li>Mix in Memorabilia: </li></ul><ul><ul><li>People purchase memorabilia as tangible artifacts of experiences </li></ul></ul><ul><ul><li>The price point is a function of remembering the experience </li></ul></ul><ul><li>Engage the Five Senses: </li></ul><ul><ul><li>The more sensory an Experience, the more memorable it will be </li></ul></ul><ul><ul><li>A simple cue can heighten an experience through a single sense </li></ul></ul>
  25. 25. Creating Experiences <ul><li>Customizing a Service can be a sure way to staging a positive Experience </li></ul><ul><li>Less customer sacrifice turns an ordinary service into a memorable event </li></ul><ul><li>Stage a memorable surprise, create customer suspense </li></ul>
  26. 26. Work is Theatre <ul><li>Theatre is not a metaphor, but a model </li></ul><ul><li>Use your products as props, your services as a stage and your employees as performers to make every customer interaction as a once-in-a lifetime event </li></ul><ul><li>Whenever employees work in front of customers, an act of theatre occurs - every action contributes to the total experience being staged </li></ul><ul><li>Your success depends on picking the right people to play the right parts. </li></ul>
  27. 27. The Enactment Model (The Experience Economy, by B. Joseph Pine & James H. Gilmore)
  28. 28. Customer is the Product <ul><li>Welcome to the commoditization of Experience – what is next?? </li></ul><ul><li>When you customize an experience, you change the individual – you guide “Transformations” </li></ul><ul><li>Guiding Transformation – an emerging economy : </li></ul><ul><ul><li>Diagnose Aspirations </li></ul></ul><ul><ul><li>Stage Experience(s) </li></ul></ul><ul><ul><li>Sustain Transformation </li></ul></ul>
  29. 29. Charge for It! <ul><li>Don’t give away Experiences or Transformation in order to sell existing offerings - Charge a premium for it </li></ul><ul><li>Companies should charge for the value they add, not the costs they incur </li></ul><ul><li>Not only retail stores, but entire shopping malls charge admission </li></ul>