Uploaded byWilson Zehr
Sales Channels
The document outlines various sales channels and strategies within strategic marketing, distinguishing between B2B and B2C approaches. It discusses the importance of understanding customer behavior, existing market segments, and the role of promotion in channel effectiveness. Additionally, it emphasizes the complexities of channel selection, including factors such as product characteristics and sales cycles.
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Sales Channels
- 1. BA 495BA 495 SalesChannels W
- 2. S i ki d lStrategic Marketing Model The Offering 2
- 3. Place: Sales Channels Ud t d C t S i l R i tE i ti St thUnderstand Customer & Buying Behavior Special Requirements Imposed by Product Existing Strength & Role of Brand Maturity and Investment Existing Channels Channel Channel Cost & Selection Channel Cost & Margin Available Supported b P ti Slide 3 by Promotion
- 4. Channels: Market Selection Bto G B to BB to C “E t i ” “SMB” Slide 4 “Enterprise” or “SMB”
- 5. Consumer Markets BusinessMarkets Channels: Market Selection Consumer Markets • Demographic factors • Socioeconomic factors Business Markets • Industry segments (SIC) • Product segments• Socioeconomic factors • Geographic factors • Psychological factors • Product segments • Geographic segments • Common buying factors• Psychological factors • Consumption patterns G t M k t • Common buying factors • Customer size segments Government Markets • Military/Aerospace Federal Government • Campaigns/Elections 5 • Federal Government • State/Local
- 6. B C ChlB to C Channels* Producer Consumer Producer ConsumerRetailer Producer ConsumerRetailerDistributor Producer ConsumerRetailerWholesaler Distributor Slide 6 * Different channels can be used for sales & fulfillment
- 7. B C Chl Direct B to C Channels Producer Consumer Indirect Producer ConsumerRetailer* Indirect Producer ConsumerRetailerDistributor Producer ConsumerRetailerWholesaler Distributor Slide 7 * Can take the form of a franchise like McDonald’s
- 8. B B/G ChlB to B/G Channels B to B Producer Business B to B B to B B to B Producer BusinessRetailer* Industrial Distributor Value Added Reseller(VAR) Producer Business Manufacturers Rep Systems Integrators Producer Business Manufacturers Rep Industrial Distributor Slide 8 * Non-traditional examples: Office Depot, UPS Store, FedEx Office, LazerQuick, …
- 9. B C Il d B B T iB to C Includes B to B Transactions B to C Producer Consumer B to B B to B B to B Producer ConsumerRetailer B to B B to B B to B Producer ConsumerRetailerDistributor Producer ConsumerRetailerWholesaler Distributor Slide 9
- 10. R il SlRetail Sales Retail Store Selection Retailer Consumer Supermarket Full-Line Discount Specialty General MerchandiseFood Supercenter Category Specialist^ Department Convenience Company Store* Drug Off-Price Extreme ValueCompany Store*p y Warehouse Club p y ^ Includes “big box retailers” and “category killers” 10 * Company owned or franchise common in the fast food industry but can apply more broadly Source: modified from Marketing, 2nd edition, Grewal, D., Levy, M., 2010
- 11. R il SlRetail Sales Product/Brand Awareness Retailer Consumer signagesignage inserts coupons Slide 11
- 12. P tiPromotion “Push” vs.“Pull” Create Awareness and Demand Supplier P h Demand P llPush Pull Proper “Mix” Required Build Channel Activity Slide 12
- 13. B B/G Chl • Indirect (“Channels”) B to B/G Channels • Indirect ( Channels ) • Direct Sales Direct Sales Force (Traditional)– Direct Sales Force (Traditional) – Internet (Disintermediation) – Company StoreCompany Store • Direct Response – Direct MailDirect Mail – Infomercials – Catalogs…Cata ogs Slide 13
- 14. iPromotion Compliment Channel Online email website newsletterradio television telesales Offline b webinar events tradeshow viral affiliates magazine infomercial promotion discount banner social media blogswiki press outdoor direct mail yellow pages coupons portal directory search engine auction articles release public relations mail pages sports word-of-mouth Slide 14 engine articles newspapermarketing
- 15. Di t SlDirect Sales “Process” of (Consultative) Selling SEO emailPPCdirect mail televisionPR web site Offline Online viralbanners affiliates telesales print radiooutdoor infomercialcoupons auction marketplace social and more….and more…. AIDA SalesAIDA process Sales Funnel Sales
- 16. Di S lDirectSales Sales “Team” • Sales/Account Executive* – “Hunters” vs. “Farmers” – Commission vs. Quota • Sales Engineer Sales skills +– Sales skills + – Technical skills • Field Marketingg • Product Marketing • Sales Development Slide 16 * Telesales can also serve as primary account executives
- 17. Di S lDirectSales Sales Compensation over-quota over-ride bonus i i target compensation quota over quota driver:multiple commission “at risk” driver: - sales - units - margin multiple quota’s possible base - … Slide 17 Lot’s of variations possible…
- 18. Di S lDirectSales Opportunity Ownership Markets Existing New s Existing Sales Sales Development Products Development P New Marketing Business Development Slide 18
- 19. Di t SlDirect Sales “Process” of Selling Stage Prospect DataMarketing Stage p Opportunity Qualified Lead ership Opportunity Proposal Owne “Farm” Sales Client Sales “Hunt” Farm Product & Market Dependent
- 20. Di t SlDirect Sales “Process” of Selling Data Depends on Industry, Product, and CustomerProspect Qualified Lead and Customer Opportunity Proposal Sales Cycle Sales Client note: retail talks more about inventory “turns”
- 21. M k iSMarketing Support Sales Tools Prospect Stage Messaging matrix Marketing campaigns Lead scoring Support Each Stage in The Sales Process Lead scoring Opportunity Stage Sales presentation Product demonstration C titi l iCompetitive analysis Objection handler Proposal Stage Price list Quote template Cost justification worksheet Executive presentation Client Stage 21 Client Stage Periodic communication New promotions Sales
- 22. S l Fi & MSales Forecasting & Management ImplementationPlanning Data 100% Implementation Promotion Plan Planning Prospect Qualified Lead 30% 10% Lead Scoring Fi i l Plan Opportunity Proposal 5% 2% Financial Model Sales Proposal Client 2% 2%Sales Forecast C t R l ti hi M tCustomer Relationship Management (CRM) software commonly used today
- 23. S l Fi & MSales Forecasting & Management Lead Scoring • Rank Opportunities – Product Need – Existing Budget – Purchase Timeline A i R k B d A ti• Assign Rank-Based Actions A: Need, Budget, 30-day Close …… “Hot” - Focus B: Need Budget NurtureB: Need, Budget …… Nurture C: Need …… Inform
- 24. Direct Response ROI Driven TheOffer 20% Response Recipe20% Recipe ROI Driven LCV FocusLCV Focus The List 70% The Creative70% The Creative 10%
- 25. Ch l Sl iChannel Selection Other Considerations • Product Complexity – Shrink Wrap C l t i Ch l– Complete in Channel – Custom Solution • Product Price/Margin• Product Price/Margin – High Price Increases Perceived Risk – Direct Sales Expensive Channel – Channel Layers Add Cost • Sales Cycle Slide 25
- 26. Ch l CfliChannel Conflict Competition “IN” Channel Consumer Internet ConsumerBest BuyWholesaler Distributor HP ConsumerCostco ConsumerSafewayWholesaler Distributor P&G Slide 26
- 27. l h lkMulti-Channel Marketing Cisco Systemsy 27 Source: Marketing of High-technology Products and Innovations, Mohr, Jakki J., Sanjit Sengupta, and Stanley F. Slater, Chapter 9, Page 316
- 28. l h lkMulti-Channel Marketing Online Enterprise Lead Generators Postcards Call Lists p Qualified Leads Sign-ups Viral Marketing Orders Quotes Jobs Quotes Business Development Affiliates Account Management OperationsMarketing Google Adwords Production Facilities Small $$ Accounts Web Google Adwords Online Affiliates Promotions Newsletter SEO Web Site Small Business Orders