2 Objectives of the workshop Establish if your business has a Marketing cultureHighlight the central role of customers to your business.Examine ways to promote your businessExamine ways of improving your selling skills
3 Introduction to Marketing Section 1.Ask the group - What is Marketing?
5 What is Marketing? Marketing is … a business philosophy which puts the customer at the centreof all your company’s activities
6 Mahatma Gandhi once said… “A customer is the most important visitor to ourpremises.He is not dependent on us; we are dependenton him.He is not an interruption to our work; he is thepurpose for it.He is not an outsider to our business; he is part of it.We are not doing him a favour by serving him,he is doing us a favour by giving us an opportunity to do so”.
7 Marketing Information The Marketing MixMarketing InformationProductMarketingControlTargetCustomersMarketingPlanningPlacePricePromotion(Inc Sales)MarketingActivity5th `P`For PeopleThe ExternalEnvironment
8 Giving Christmas calendars to customers Remember?Marketing is more than ….AdvertisingSellingDesigning websitesSending out brochuresGiving Christmas calendars to customers
9 A simple definition: Marketing is satisfying your customer’s needs more effectively than your competitorswhile still making a profit
11 Who are your customers?Your Customers are those groups you serve that have needs which you can satisfy
12 Take a few minutes to list all the customer groups serviced by Exercise 1.Who are your customers?Take a few minutes to list all the customer groups serviced byyour business?
13 Craft Sector Example General Public Tourists Direct Sales to other independent shopsRetail craft / giftware chains groupsCustomers at exhibitions & craft fairsWeb customersInterior designersSpecialist Commissions e.g. Wedding invitationsAgents / wholesalers
14 Do you monitor customer performance Do you know who your largest and smallest customers are?Do you know who your most and/or least profitable customers are?Do you know what products they buy and why?Do you know why they don’t buy all the products and services you provide?Are you too dependent on one key customer?
15 The life-time value of a customer? Calculate average daily sale / customer£3.50By the number of sales each year£21.00/ week X 48 Weeks = £1,008/YrBy number of years you keep the customerSay 20 years x £1,008Gross life time sales value per customer£20,160
16 How to create business growth? Sell more -Existing Products to Existing CustomersSell new -Products to our Existing CustomersFind new-Customers for our Existing ProductsCustomers for New Products
18 Your Brand Develop the core values you wish to portray Decide on a budgetAsk graphic designers / printers to show you completed worksMake decision on price, quality of work and personalityOnce you have a Corporate Identity / Logo make sure you keep it consistent
19 Any form of communication used by business to send messages What is Promotion?Any form of communication used by business to send messagesto existing orpotential customers
20 Why promote your business? To create Awareness for your product / serviceGain the Interest from the target audienceSell benefits that satisfy their needs so that they Decide to buy your products / serviceEncourage Action, invite participation or encourage them to make a decision
21 Planning and Preparation PromotionSuccessful promotiondepends onPlanning and Preparation
22 Stages in developing a Promotional Plan Audience Who are you promoting to?Objective What is it you want to achieve?Tools & Which promotional tools should you useBudget and how much will they cost?Monitor & Are your achieving what you wanted toEvaluate achieve?
23 Who are your Audiences? Have you segmented your markets? What customers are you targeting?Where are they located?Do they know you exist?If so, what do they think of you?If they don’t, how can you create awareness with them?
24 Setting Clear Objectives These could be, to:Move your audience along the buying process:Change perceptions of your business/companyBuild customer loyaltyStimulate demandIncrease your distribution and salesLaunch a new product / service
25 Promotional Tools Four main types Advertising: any paid for form of non-personal promotion of goods and services by an identified sponsorSales Promotion: short term incentives to encourage purchase of product / servicePublic Relations: activities designed to improve, maintain or protect a company or product imagePersonal Selling: oral presentations with one or more prospective purchasers for the purpose of making a sale
26 List 10 different promotional tools Exercise 2List 10 different promotional toolswhich might be of useto your business?
27 Promotional Tools Sales Promotion Public Relations Personal Selling AdvertisingNewspaper Magazines TV Radio Billboards Displays Packaging Logos Leaflets POSDiscounts Offers Exhibitions Vouchers Competitions Trade-ins Low Interest Rebates Direct Mail Loyalty cardsSales callsTele-salesSamplingExhibitionsIncentivesPress release Seminars Sponsorships Community R Charitable £ Speeches Interviews Workshops
28 Promotional ToolsWord of mouthrecommendationsTargetMarket
29 Extremely effective and common source of promotion for businesses Word Of MouthExtremely effective and common source of promotion for businessesAdvantagesCosts nothingRequires little effort – just satisfy customersDisadvantagesYou can’t control what they saySlow to buildCan be very damaging if the customer has had a bad experience
30 The Communications mix Promotional ToolsThe Communications mixWord of mouthrecommendationsAdvertisingTargetMarket
31 AdvertisingRecognised method to raise profile and awareness to a wider audience.Can be expensive and ineffectiveKey to success lies in:1. Having a clear message2. Planning and designing the advert3. Choosing the right place to advertise
32 1. Have a clear message Inform customers of product and service Create awareness for a new businessBuild the image of a product or businessTell customers about a special event /offerCounteract competitor effortsReinforce and assure customers they made the right choice
33 2. Designing the Advert Strong Headline Sell benefits Keep copy short Contact detailsBranding / logoNote – select the best media for the target audience and get timing right
34 3. Choose the right media Newspapers Magazines Yellow Pages Local RadioTVBusesBillboards (48 Sheet)Adshels
35 Promotional Tools Target Market Word of mouth recommendations AdvertisingTargetMarketExhibitions
36 Exhibitions Choosing an exhibition Why are you considering this exhibition?What do you want to achieve?Who else exhibits?Who visits?How much does it cost?
37 Planning for an exhibition Stand locationStand designProducts and brochuresPersonnelPre-selling
38 Key issues to address to be effective: ExhibitionsKey issues to address to be effective:At the exhibitionManning the standRecording enquiriesQualifying leadsAfter the exhibitionFollow-up on leads quickly!
39 Promotional Tools Target Market Word of mouth recommendations AdvertisingTargetMarketExhibitionsDirect mail &telesales
40 Direct Mail Advantages: Clearly targeted at specific prospects. Economical way to target large numbers of prospects but in a personalised way.Hidden from your competitors
41 TelesalesAdvantagesInstant opportunity to answer questions about your products /serviceGet the opportunity to speak with right personCost effective compared to direct salesMeasurable resultsMakes personal visits easier
42 Direct Mail / Telesales DisadvantagesPoorly researched prospect lists and databases provide a poor return.Irrelevant or bland message produces a negative image.Lack of planning for follow-up and fulfillment restricts successMany companies now use telesales approaches, the receiver may put up barrier
43 Promotional Tools Target Market Word of mouth recommendations AdvertisingTargetMarketexhibitionsdirect mail &telesalespublic relations,corporate events,sponsorship
44 PR/PublicityOne of the most under-utilised and cost effective forms of promotion:Public RelationsPress ReleasesSponsorships / Corporate eventsAlways be aware of potential news storiesMake sure the media is relevant to target audience and the story supports your company image.
45 A good business story Investment in a refit or expansion New product / service launchTechnological developments - R&DCompany initiatives – NVQ / ISOExclusive listingsExpansion / Recruitment of new staff
46 Writing a Press Release “What, Who, When, Where and Why”What is happening?Who is responsible / attending?When and where is it happening?Why is it happening?Show Examples
47 Press Release cont’d In writing a press release: Be Concise – factual, no waffleUse quotes – from a relevant person adds interestProvide editorial notes i.e. backgroundProvide contact names of 2 peopleProfessional presentationPhotographs if possible
48 Write a short Press Release aimed at the local press Exercise 3You are organising a charity event, you wish to attract as much coverage as possibleWrite a short Press Release aimed at the local press
49 Sponsorships How much has been requested? What return will you get ? Who will be promoting the event?Are the any possible sources of conflict?Make sure these wont impact n youWould supporting them in another way be better for you
50 Promotional Tools Target Market Word of mouth recommendations AdvertisingTargetMarketExhibitionsPrinted brochures;Direct mail &telesalesPublic relations,corporate events,sponsorship
51 Promotional Literature Consider how and when you will use the material.Promote features and benefitsKeep literature up-to-date.Ensure consistent branding.
52 Promotional Tools Target Market Word of mouth recommendations AdvertisingTargetMarketWeb -ExhibitionsPrinted brochures;Direct mail &telesalesPublic relations,corporate events,sponsorship
53 Web Site Consider what you want from a web site Get connected – facilitiesPublish information on your organisation/ company, its products and servicesInteraction – sharing information, EDITransaction - ability to sell onlineIntegration- both parties can access information
54 Web-Site Just having a web site is not active promotion: Integrate your web site into your overall promotional plans.
55 Effective Web Marketing Careful selection of metatagsSearch engine registrationReciprocal linksBanner AdvertsnewslettersNon web based promotion
56 Promotional Tools Target Market Point of sale Word of mouth recommendationsSales PromotionAdvertisingTargetMarketWeb-siteExhibitionsPrinted brochures;videos; CD roms;multi-media materialDirect mail &telesalesPublic relations,corporate events,sponsorship
57 Sales Promotion Seasonal Sales periods Weekly / Monthly special offers Price PromotionsLoyalty schemesGift vouchers / money off couponsIn-store demonstrationsCompetitionsPOSWindow displaysExamples
58 Selling and the Sales Process Section 3.Selling and theSales Process
59 Sales Planning Grade your existing customers Decide what you want to sell themDevelop prospect Lists for new businessPlan for Who, When, and Where you are going to make a sales approachSet goals so that you have a target to work towards
60 Sales Preparation Know you Product Know your Customer Know the CompetitionHave the right PeopleDevelop Sales Support MaterialsPrepare for the Sales Approach and set objectives
61 Objectives..why are you there? Typical Objectives:generate sales revenueopportunity to quoteproduct trialArrange a factory/facility visitawareness building
63 Sales Process Opening Probing Supporting Overcoming objections NegotiatingClosing a sale
64 Opening...Agenda Setting First opportunity to take controlDemonstrates that:you are organised;you have prepared;you have objectives.Communicates confidence - the buyer is more likely to respect you and listen.
65 ProbingProbing allows you to establish a clear, complete, mutual understanding of the customers needs.
66 Probing.... Closed probes limit customers response egs: “How many representatives do you have?”“Have you ever?”“How do you feel about...?”Open Probes help you identify / understand customers needs, and increase the chances of the customer offering an opportunity :“what, when, how, who, in what way, ....”Positioning probes and check questions :“Many of our customers have found that...what has been your experience?”Softening probes for sensitive areas:“Would you mind me asking what.....?”Express it positively.....tell me about the problems...but which areas would you like to improve.
67 List 10 questions which may Exercise 4List 10 questions which maybe of use to you with aprospective buyer.
68 Listening.... Listen actively Acknowledge Allow time and opportunity to speakDon’t promptDon’t interruptUnderstand context and content
69 Active Listening.... Listening to understand Listening to win Listening to talk
70 Use features and benefits to provide information to the customer Supporting....Use features and benefits to provide information to the customer
71 Supporting.... The Supporting Process: acknowledge the need describe the relevant features and benefitscheck for acceptance.
72 Benefits....A product benefit can be defined as what the product or service will actually do for the customerIn a selling situation it is useful to translate all features into the relevant benefitsNever assume that the customer will make the translation from feature to benefitTo communicate the benefit simply state the feature and follow it with the benefitFeature.....’and that means to you’ ....Benefit
73 Provide Proof & Build Confidence Core product benefits & list of competitive advantagesBrochures and technical detailsAccreditationsPress cuttingsSamples
74 Deal with Objections Be prepared for every objections List all objections in advanceDiscuss with your colleagues how they address each objectionCombine the outcomes to develop a strong response to the objectionsWrite them down and practice
75 The 3 common objections I’m happy with my current supplier! - suggests LoyaltyI can’t see me needing that!- suggests lack of awareness to the DemandIt’s too expensive!- Price objections can be a hidden request for more information
76 Supplier Loyalty Don’t undermine their current supplier Move slowly Ask lots of questionsIdentify a niche to show additional sales opportunitiesDifferentiate your offeringGive supportive reasons for changingSuggest a trial order
77 Absence of Perceived Demand Prepare your argument around wants and needsProve demandQuote current customer baseObtain an opening through active questions
78 Price ObjectionComparison with other products, differentiate where possibleQuestion the customer on their requirements to show how your additional benefits can satisfy their needsLook at the total product inc order size, terms volume discounts, after sales service, warranties etc
79 NegotiationIdentify all of the potential negotiation points that may ariseSet the negotiation limits that apply to each negotiation variableAlways pitch your opening stance high:the buyer might agree!it provides a basis for concession from you.
80 Take five minutes and consider the answer(s) to this question. ExerciseWhat aspects of the product or service that you sell is negotiable?Take five minutes and consider the answer(s) to this question.
82 Negotiation:Concessions A concession from the seller will give the buyer a feeling of power and controlAlways maximise the sellers concessionIn order to deliver 4, which is actually below the minimum order quantity of 10, we’ll have to incur double the distribution price per item
83 Negotiation:Concessions Always minimise the buyers concession:“There is no need to offer us a three week lead time on delivery as we carry all lines in stock and call in your area weekly.”When a concession is agreed: - clarify and use it as the basis for an attempt at closing:“So, if we agree to offer 5% ongoing nett invoice discount you’ll pay within 30 days of delivery of the goods. It that your understanding?”“Okay, lets talk about an order”
84 Typical Buyer Negotiation Techniques “Give us £5 off per case on the first container load and then we’ll look at a higher price on the second load.”The Sellers Option:ask for a commitment for a second order and price;assess the balance of power;sell the advantage of a mid-price and establish this as the on-going price;defuse and wait for a reaction.
85 Negotiation Resist the option to concede without negotiation: it suggests weaknessit suggests that you have more room for concessions.
86 Negotiation:Summary Identify negotiation points; Calculate your concession range;Pitch high and prepare to negotiate;Maximise sellers concessions;Minimise buyers concessions;Never “roll-over”.
87 How To Close... Review previously accepted benefits: “let me go over some of the ways we can help you achieve your goals.”“lets go over what we’ve talked about so far..”Propose next steps for you and the customer:“if you’ll draw up a purchase order, I can process the order today”“I’d like to arrange for our technical manager to visit your warehouse, to do that I’ll need you to fax me the contact names and addresses”
88 How To Close... Check For Acceptance: “how does that sound?” “what do you think?”“how does that sound?”“Is that acceptable?”
89 Sales Summary To be successful remember Time is short - so use it effectivelyPreparation before handPlan for and set set realistic goalsKnow your product / serviceKnow the competitionPrepare for objectionsWatch and listen for buying signals to closeLeave the door open
90 To Conclude Know your target audience. Have a well defined promotional objective.Carefully select the most effective mix of promotional tools.Consider your budget.Check results, if not working take corrective action.Use results to assist with future promotional decisions.