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MARKETING, SALES & 

CUSTOMER SERVICES

NOTES

1. BASIC MARKETING PHILOSOPHY

Marketing is the marketing process responsible for identifying, anticipating and satisfying customer needs profitably.

Needs:      relates to the expectations of the customer

Features: characteristics or qualities

Benefits:  something good to receive or an advantage

2. THE MARKETING MIX

THE PRODUCT LIFE CYCLE

Extent the life of a product

THE LEVELS OF PRODUCT CONCEPT

THE BOSTON CONSULTING GROUP MATRIX

Relative market growth  .Vs.  Relative market share

THE DIRECTIONAL POLICY MATRIX

Business strength  .Vs.  Market attractiveness

FACTORS AFFECTING THE PRICE

(Loss Leader Products, Quality Products)

PRICING METHODS

Distribution of products, where they are sold and how they are sold.

The processes put in place before the marketing activity can take place.

 

3. THE PRINCIPLES OF MARKETING FINANCIAL SERVICES

Factors affecting the buying behavior

The division of market into smaller groups who have similar needs and similar behavioral patterns 

BENEFITS OF SEGMENTATION

DRAWBACKS OF SEGMENTATION

CHARACTERISTICS OF A SEGMENT

SEGMENTATION METHODS

According to the age, sex, life cycle

SEGMENT AGE CHARACTERISTICS PRODUCTS

Student

18-25

Money

Bank account/Student loan
Working single 16-24 Saving / Borrowing Credit Card /Debit Card/ Personal Loan / Savings Account
Married Couple 20-35 Buying first home/ Two incomes/ Expensive holidays Mortgage/ Home insurance/ Investments
Family with children 25-50 Limited disposable income/ Need to protect family/ Larger home Life cover/ mortgage/ health insurance/ personal loan
Empty Nesters 40-60 Rising disposable income/ plan for retirement Wills // TESSAs/ ISAs/ Pension provision
Retired 55+ Need financial security/ Long term care/ equity release Investment products/ Long term care

Segmentation according to where people live (ACORN) -A classification of residential neighborhoods

  • A -   Upper Middle Class:  upper managerial level
  • B -   Middle Class :              middle managerial level
  • C1-  Lower middle Class : junior management
  • C2 - Skilled working Class:skilled manual workers
  • D -   Working Class:             semi-skilled and unskilled manual workers
  • E-     Subsistence Level:    unemployed or on state benefit
  • Achievers
  • Socially conscious
  • Sustainers
  • Usage rate, how often
  • User Status - non-user, potential user, first time user
  • Readiness stage, awareness of product, level of interest

 

4. THE LOGIC OF A CORPORATE PLAN AND THE MARKETING PLAN       CONTAINED THEREIN

  • Major markets
  • Customers
  • Competitors
  • Environment developments
  • Organization's marketing objectives
  • Are the resources sufficient
  • Is the expenditure appropriate
  • What procedures are in place
  • Is personnel operating efficiently and effectively?
  • A review of pricing by looking at supply and demand
  • Review of each product
  • Analysis of the distribution systems
  • Review of the size and efficiency of the sales force

Strategic .Vs. Tactical Plan

5. RELATIONSHIP BETWEEN PROFIT, SERVICES AND CUSTOMER SELECTION

TRANSACTIONAL MARKETING RELATIONSHIP MARKETING
Single sale focus Regular/ongoing sales
Priced per transaction Pricing based on the value of the relationship
Price sensitive Less price sensitive
Competitive More loyalty
Short term focus Longer term perspective
Limited customer commitment Through thick and thin
limited exchange of confidential information Openness/trust developed over time though past service provided

 

6. HOW TO ORGANIZE MARKET RESEARCH

PRIMARY DATA

Being collected for the first time, either by observation or by questionnaire. 

SECONDARY DATA

Being gathered for another purpose, so it already exists. They can be gathered by both internal or external sources. 

Example of Sources of Secondary Data

  • Census of population
  • Monthly digest of statistics
  • Family Expenditure survey
  • National Income and Expenditure Blue Book
  • Financial Statistics

Advantages of Secondary Data

Disadvantages of Secondary Data

ADVANTAGES:

DISADVANTAGES:

Every company that gathers information on its customers and stores that information, should comply with the Data Protection Act. The Act deals with information stored on computers. 

The Act established a register of all users of personal information, including:

Data principles:

7. FEATURES AND BENEFITS OF PERSONAL SERVICES

 

8. CORPORATE SERVICES

9 KNOWLEDGE OF COMPETITORS AND THEIR SALES ACTIVITIES

Retailers and Supermarkets

Advantages:

Disadvantages:

10 PLANNING AND CONDUCTING SALES ACTIVITY

Lead --> Enquiry --> Appointment --> Sale

Top down sales plan  .Vs.   Bottom up  sales plan

11. CAMPAIGN SELLING

Careful targeting is essential so that it is not considered to be junk mail

Uses:

 

Uses:

Advantages:

Disadvantages

 

 

12. THE SALES INTERVIEW

THE BUYING PROCESS THE SELLING PROCESS
Recognize the problem Identify the customer's needs
Understand the problem and desire a solution Sell the solution in terms if features and benefits
Assess the alternative solutions Deal with queries (objections)
Make the purchase Close the sale
Validate the decision Follow-up

 

 

13. CREATING A SALES TEAM

Advantages:

  • Attract more people to the job
  • More trusted by people
  • Will not be tempted to oversell

Disadvantages:

  • Lack of motivation to do well
  • The successful ones will feel that they are not fairly rewarded

Advantages:

  • Are motivated to work hard
  • Not loose more for people they are not suited for the role
  • Attract proven successful salespeople

Disadvantages:

  • Struggle to recruit large number of people
  • Possibility of overselling

 

14. UNDERSTANDING INDIVIDUAL CUSTOMER EXPECTATIONS

 

15. PRESENTATION SKILLS

 

16. CREATING A POSITIVE, PROFESSIONAL AND KNOWLEDGEABLE IMAGE

17. COMMUNICATIONS

18. BALANCING THE NEEDS OF THE CUSTOMER WITH THOSE OF THE ORGANIZATION

 

19. CONTROLLING DELIVERY AND FOLLOW-UP ACTIVITY

20. EVALUATING CHANGE TO IMPROVE CUSTOMER SERVICE

22-Item scale based on 6 dimensions

tangibles, reliability, responsiveness, assurance, empathy, recovery

Uses

Limitations:

21. MONITORING AND IMPROVING PERFORMANCE

APPENDIX CODE OF ADVERTISING PRACTICE

ASA - Advertising Standards Authority