Lecture notes on introduction to Marketing management

lecture notes on strategic marketing management and what is sales promotion in marketing management, what role does sales management play in marketing
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Published Date:17-07-2017
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Sales & Marketing Management Personnel Management Personnel Management Personnel Management Business Description Financial Management Goals and Outcomes Business Offerings Sales & Marketing Management BIZBITE CONSULTING GROUP Sales & Marketing Management We made every effort to ensure that these materials comply with the requirements of copyright clearances and appropriate credits. BizBite Consulting Group will attempt to incorporate in future printings any corrections communicated to it. Copyright 2000, 2004 BizBite Consulting Group A division of CorNu Enterprise 1412-621 Discovery Street Victoria, BC V8W 2X2 All Rights Reserved Printed in Canada Table of Contents Introduction to Sales and 1. Sales Territory Marketing .................................. 1 Management .......................... 172 A. Marketing Management....... 7 2. Target Market ............... 176 1. Market Analysis ................ 9 3. Developing Market & Sales Force Potential ...................... 184 2. Marketing Questionnaire17 4. Maximizing Customer Sales 3. The Importance of Media & Staff Potential.................... 201 Planning ................................... 36 5. Maximizing Sales Force 4. Pricing Philosophies& Potential ................................. 212 Approaches .............................. 57 6. Personal Performance 5. Pricing Policy................... 64 Outcomes (PPO).................... 229 6. The Effects of Discounting 7. Manager Assessment Tools Prices ........................................ 84 244 7. Store Merchandising....... 91 7.1 Staff Review Questionnaire Summary of Marketing ................................................. 246 Management .......................... 105 7.2 Senior Staff Position B. Sales Staff Training........... 107 Assessment............................. 251 1. The Art of Selling.......... 109 8. Management Styles & Leadership Skills................... 263 2. Qualifying & Serving Customer Needs .................... 135 9. The Use of Positive Reinforcement with Personnel 3. Telemarketing ............... 147 280 4. Presentation Skills......... 155 10. Commission Sales 5. Preparing for a Sales Agreement.............................. 286 Meeting................................... 164 Summary of Sales & Marketing Summary of Sales Staff Management .......................... 294 Training ................................. 168 Glossary of Terms................. 297 C. Sales Staff Management ... 170 i BizBite disclaimer Personal experience of the author is the bases of this material. BizBite Consulting Group (known as BizBite) makes no representations or warranties regarding the use of this material in whole or in part and assumes no liability for any claims, losses, or damages arising from the use of the material. Don't construe this material as taking professional advice from the author or BizBite Protection of copyright This course is the intellectual property of BizBite, a partnership registered in the province of British Columbia, Canada. International copyright law protects it. The purchasers of this material may only use it for their personal use or, as a training tool, within their business. It is illegal to copy, modify, or transfer this material, or BizBite may authorize any other BizBite materials or any documentation pertaining to them except as in advance. BizBite materials, in whole or in part, prohibit any modification or merged portion of this, except as authorized in advance. If you transfer possession of any copy, modification, or merged portions of any BizBite materials without authorization, you may be liable for prosecution and BizBite may take legal action against you and/or your company. ii Credit Page The founders of BizBite Consulting Group and developers of BizBite's dynamic approach to business education are Graeme Robertson and Dr. Shirley Chapman. The following people contributed to this document: Content Specialist J. Graeme Robertson J. Graeme Robertson J. Graeme Robertson Graeme Robertson is a seasoned business management professional with over 30 years of experience. He has held senior positions in retail, wholesale, and distribution operations. Additionally, Mr. Robertson was Regional Manager for a national personnel-consulting firm and he has been actively engaged in business management consulting for over 20 years. Designer and Developer Dr. Shirley Chapman Dr. Shirley Chapman Dr. Shirley Chapman B. Ed. M.Ed. Ph.D. Dr. Shirley Chapman is a veteran educator with over 30 years of experience. She is an expert in course/program design and development. Her experience covers public schools, colleges, and universities. Shirley is experienced in designing and developing training specifically for delivery face-to-face, on-line (Internet), and manual for organizations, colleges, and businesses. She is responsible for the page layout and format as well as the graphics in any materials that she designs. Proofreader—Precision Proofreading—Deborah Wright editpreproof.bc.ca http://www.preproof.bc.ca iii Table of Contents Major Headings Subheadings Introduction to sales and marketing management Market analysis Marketing Management Marketing questionnaire The importance of media planning Pricing philosophies and approaches Pricing policy Effects of discounting prices Store merchandizing The art of selling Sales Staff Training Qualifying & serving customer needs Telemarketing Presentation skills Preparing a sales meeting Sales territory management Sales Staff Management Target market Developing market and sales potential Maximizing customer sales and staff potential Maximizing sales force potential Personal performance outcomes (PPO) Staff review questionnaire—form Senior staff position assessment—form Management styles and leadership skills The use of positive reinforcement with personnel Commission sales agreement—form iv Introduction to Sales and Marketing Personnel Management Business Description Goals and Results Financial Management Business Offerings Sales & Marketing Management Glossary Glossary Each term that is used in this section is defined in the Glossary. You will notice that the first time it is used it is coloured green in Bold Italics. Just click on the Glossary in the Bookmarks or Thumbnails to find the definition. Alternatively, print the Glossary. Sales & Marketing Management © 1 You can divide business into six major areas. They are: 1. Describing the business 4. Marketing the business and its offerings 2. Setting the goals and outcomes of the business 5. Financial management of the business 3. Determining the 6. Personnel management and offerings of the business motivation We have represented these six areas as a six-pointed star. Each part of the star represents one part of the business. You will see this star used throughout our training packages. In this package, we will only be focusing on one point of the star—Sales and Marketing Management. This star symbolizes how all of these elements work together and how each is equally important to the success of the business. If a business manager does a poor job of thinking through and developing one of the elements, it can have a serious effect on the success of the business. Sales and Marketing Management is Sales and Marketing Management is o on ne e c co om mp po on ne en nt t o of f a a b bu us siin ne es ss s Sales & Marketing Management © 2 How is sales and marketing management organized? We will divide Sales and Marketing Management into three major sections: 1. Marketing Management 2. Sales Staff Training 3. Sales Staff Management We have divided each major section into several subsections. These subsections will be itemized in the appropriate introduction. For example: For example: For example: Marketing Management has seven sub headings 1. Market analysis 2. Marketing questionnaire 3. The importance of media planning 4. Pricing philosophies and approaches 5. Pricing policy 6. The effects of discounting pricing 7. Store merchandizing Most of the subsections begin with an Introduction and a How to Use the Section and conclude with a Summary. Celebrate It is important that you recognize your achievement and celebrate each small step. Take a break and celebrate it. We will offer you opportunities to celebrate at the end of each major section and the subheadings. Have fun with them. We had fun creating them for you Sales & Marketing Management © 3 Suggestions on how to use this learning package We have organized sales and marketing management so that you decide: Û In what order you want to access the various titles Û If you want to ignore any titles or sections Û How many times you want to revisit the material You can move to any part of the program by clicking on any heading listed in the bookmarks to the right of this page. If you need a definition from the Glossary, just click on the bookmark Glossary and scroll down to the term. All terms listed in the Glossary are coloured green, bolded and italicized once in each section that they are used. As you move through each section, compare the methods presented to the way you do things now. Use many of the questions posed in the examples to test your knowledge of your market, your customers, and your employees. When examples are given, try to think of similar situations you have experienced in your business. We have included in this material two complete internal analyses and training tools that you may use directly in your business. They are (the): 1. Marketing Questionnaire—is a very effective business analysis tool that examines every aspect of your business from a marketing perspective. It is recommended that more than one key person do the questionnaire. You may be surprised at how the answers compare. Please note that when you use this questionnaire that there are no spaces for answers. 2. The Art of Selling—is a complete sales training program that can effectively train both inside and outside sales people. 3. Sales and Marketing Management—provides business owners or managers with essential knowledge and skills they require managing their business from a sales and marketing perspective. Users of this material can anticipate the immediate use or be to apply many of the ideas and methods. These ideas and methods are universal in nature and really apply to the operation of any business. The examples shown and the forms and questionnaires illustrated may need to be adapted to your business. Sales & Marketing Management © 4 The success or failure of a business depends ultimately on the sale of its products or services. Generally, business calls these offerings. Planning implementing and managing the marketing strategy is the focus of Sales and Marketing Management. The Sales and Marketing manager must possess a complex mix of: Analytical skills Planning Skills Business management training Prioritizing and time management skills People management skills Decision-making skills The Sales and Marketing manager brings all of these skills sets to bear on a daily basis as he or she responds to the ever changing conditions of the market. The success or failure of a business and the ability of a business to grow in an orderly and profitable way will also depend on: Û The quality of the people hired Û How well staff are motivated Û How well staff are directed to achieve the goals of the business This is particularly true of the sales and marketing management part of managing the company. It takes well-directed and motivated people to implement the overall marketing plan and marketing strategies of a company. It requires management who is constantly aware of changes that are occurring in the marketplace and is able to adapt the people and resources of the company to deal with the changes. Sales & Marketing Management © 5 In every section of Sales and Marketing Management, you should frequently pause to consider how to apply the ideas in your business. This material would help you to fine-tune your sales and marketing management skills. In small companies, the owner or general manager fulfills this role. In medium size and larger companies, the role of sales and marketing manager may be split into two functions, sales manager and marketing manager. In practice, there can be a lot of crossover in areas of responsibility and the duties will vary with the company. Sales and Marketing Management will examine the responsibility of the Marketing manager. It will examine typical problems encountered by sales managers and it will discuss solutions to these problems. This material will give you grounding in sales and marketing management. You will be able to implement immediately many of the ideas presented in your business. Use of terms This package will be using several terms that may be different from the ones with which you are familiar: Customers/clients—you may be most familiar with the term customers or you may prefer the term clients. We use both terms. Offerings—for your business, you may be selling only a service, or you may be selling both products and services. In either case, you are marketing offerings to customers/clients. We will use all three terms. Sales & Marketing Management © 6 A. Marketing Management General overview of marketing management In Marketing Management, we will discuss the analysis, planning, and decision making that a marketing manager must carry out to implement a marketing plan and a marketing strategy for a company. The marketing manager should make decisions based on the market research that was prepared for the company's business plan. Based on this research, the marketing manager will: Û Complete a thorough market analysis Û Analyzes the company's physical, financial and people resources Û Develop a marketing strategy that responds to market conditions and makes the best use of the company's resources Sales & Marketing Management © 7 In Market Management, we will discuss how the marketing manager makes these decisions. Marketing Management has seven sections: 1. Market analysis 4. Pricing philosophies & approaches 2. Marketing questionnaire 5. Pricing policy 3. The importance of media planning 6. The effects of discounting prices 7. Store merchandising Sales & Marketing Management © 8 1. Market Analysis Introduction Market analysis can be a very detailed process depending on: The nature and type of business The location of the business and the market it serves The nature of the offerings of the business The market to be targeted by the business The competition in the market The resources available to the company All of these points are the subjects of scrutiny in the process of market analysis. Questions are asked of the data collected, data is analyzed, and conclusions are drawn. These conclusions are used in the formulation of the marketing strategy of the company. There are three parts to market analysis: 1. Research 2. Analysis 3. Draw conclusions Once the market research is finished and you have analyzed the research, you should draw some conclusions about your market. This information will form part of an overall marketing strategy. How to use this information Once the market research and analysis is completed, you should decide how the market conditions will affect your business-offering profile by revisiting the information gathered about your Customers Competition Suppliers If you need assistance in researching the above three topics, we have a complete set of instructions in The Business Plan. Sales & Marketing Management © 9 Uses for the market analysis You make use of the market analysis when you are: Determining or reassessing your business’s offerings Preparing a business plan Designing a marketing plan Writing a financial plan—forecasting, planning, and budgeting the future course of the business Writing the short-term goals and outcomes of the business for the next 12– 18 months Carrying out a market analysis The marketplace is constantly changing and a business must be constantly adapting to the changes or it will not remain in business for long. Researching the marketplace is important because it will indicate how developing or future changes in the market may affect any market segments within your business, or your business as a whole. We use three heading for carrying out market analysis: A. Research B. Analysis C. Draw conclusions A. Research Research is divided into three parts: 1. Setting the perspective for your research 2. Locating the information for your research 3. Research questions Sales & Marketing Management © 10 1. Setting the perspective for your research Before commencing your research, you need to make some initial decisions. You need to decide how you will answer the research questions. What stance will you take? Your business will determine the stance. If your business only provides services, then research the following questions from that stance (accounting, childcare, auctioning, golf lessons, or career planning). If your business provides product and services, then research the following questions of the basis of the products, categories of products, or the product mix (health preparations, gardening supplies, desktop publishing, or waste collection). If your business has several market segments then you should answer the questions for each of them. You might want to use these questions to research your kind of business (hardware, coffeehouse, accounting firm, video store, tourism, or multi-level marketing). 2. Locating the information for your research Common sources for market research information are government, industry, and consumer publications. Local business organizations like the Chamber of Commerce are also good sources. The following is a list of other research sources that can be helpful. All of these should be available at your local public library. (See The Business Plan— Appendix for other resources.) Canadian Business Directory Scott's Directories Business Opportunities Sourcing System: Contacts Target Marketing Made In Canada: BOSS Market Research Handbook Canadian Trade Index Financial Post Canadian Markets Fraser's Canadian Trade Directory Compusearch Market and Social Consumer Reports Research Ltd. Sources Directory Sales & Marketing Management © 11 3. Research questions Kinds of questions that can be used: Describe the industry trends—local, regional, and national Where is it going—what are the trends that are influencing the market currently? What new developments have there been in the marketplace recently? What is no longer being used or done? Is the market growing, diversifying, niching, or shrinking? If so, at what rate and what is the change? What are those in the industry saying the future will bring? (Research trade publication at the library) Are there other questions that apply to your business? B. Analyze Analyze your answers using a form that is meaningful to you (points, sentences, charts). When you are analyzing, you are examining the research material in detail to discover its meaning or essential features. You are looking for relationships in the market and to your business. Finally, you are deciding on the value of this information to your business. This information is important because it will indicate how developing or future changes in the market may affect any of your market segments within your business, or your business as a whole. Because of the above analysis, there are four possible conclusions that can be drawn that can lead to further research of the market: a. Decline of business revenue b. Growing market c. Shrinking market d. An increasingly specialized market Is there another possible conclusion; if so, record it. The expansion of each of these possibilities is below. Each of them may require further research. Sales & Marketing Management © 12 a. Decline of business revenue If it is determined that certain products that account for a major portion of business revenue will probably decline in terms of revenue contribution over the next 3–5 years, then you should ask the following questions: Why is the product revenue likely to decline? Either the product becomes obsolete or there remains a niche or specialty market for the product. What product or products will be taking its place? What associated or accessory products might be affected? Does the new product involve new or innovative technology? What related products will be necessary to stock in order to support the new product? How are consumer preferences changing? Is the decline in the product an isolated thing or is it an indication of a larger shift in the market? b. Growing market If your research indicates that the market is growing, some questions to ask are: How fast is the market growing? In what way is it growing? Will the demand grow for products of the same type or is the trend towards offering the customer more choices of Quality performance Appearance Price What will this mean to your business in terms of investment in inventory, trained staff, product support, store space, and marketing expense? Sales & Marketing Management © 13 c. Shrinking market If your research indicates that the market is shrinking some questions to ask are: How fast is the market shrinking? In what way is it shrinking? Will there always be a demand for some of the products? If so, which products will likely be retained, and how much investment will they require? What will the return on investment be of handling the product? In other words, will it be worth keeping? d. An increasingly specialized market If your research indicates that, the market is becoming increasingly specialized in the marketing of the products to the consumer; then asks the following questions: What is the rate of specialization? What will be the major areas of specialization? How big will each specialized market be in your business area? Would you be able to sustain your business if you specialized? What volume of sales would needed to be generated in the more specialized product assortment to break even and make a profit. Would specialization make the business more vulnerable to changes in the market? How many other businesses are also specializing in your market? If everyone specializes, will that create a market for some businesses to remain generalists? In that event, what is that market potential if specialists take a major part of the market? Sales & Marketing Management © 14

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