Week 3 sales and marketing Flashcards
what is marketing?
overall way in which you position and promote your product or service. It covers areas such as advertising, market research, distribution and packaging.
what is sales?
the interaction with your customers that produces orders. Sales is the specific process that takes place just prior to the order being written up or the cash register ringing.
what are 4 p’s marketing?
Promotion
Place
Product
Price
What are Product success factors?
New products New applications Convenience Improved performance Status Packaging Appearance and styling Remember: evolutionary is OK!
Price - why start high?
• It’s more difficult to raise than lower pricing • Low prices sometimes indicate low quality • You need to make a profit! • You can spark a price war – e.g. discount airlines
Why is Place important?
Often overlooked – but some businesses are primarily about distribution (e.g. coke)
- how purchaser obtain product?
- how competitors distribute?
- manage distribution?
- focus distribution where?
- alternative?
What is virtual PLACE?
Website Key characteristics: • Professional design • Tracking and analytics • Search engine optimisation (SEO) • Email capturing
What is Promotion about? Elements of effective promotion?
- how customer find out
- Be specific
- State your goals
- Establish a system of measurement
- Hold your expenses accountable
- Consider frequency over reach
what is paid advertising?
• Analyse your competitor’s strategies • Talk with advertising representatives • Develop a focused and accountable plan
what is free advertising?
Not really free - word of mouth? • Write specific story concepts attractive to media • Make certain the stories enhance your business plan • Plan for the long term - social media
what is an effective salespeople?
understands customer’s needs and business capability
Key sales objectives?
- sale priority
- orders in advance
- sales effort
- be organised
- Ethical (create right ethical environment and compensate based on long-term performance)
what are the 3 market analysis?
market research + targeting + testing
what did the study by Song, Wang, Parry find?
some researchers argue that entrepreneurs do not need formal processes to collect and use market information, others suggest that the use of formal market information processes is positively related to firm performance
New venture performance is positively associated with the use of formal processes for utilizing market information.
Contrary to expectations, the level of customer interaction has a negative relationship with the use of formal processes for market information utilization and no significant relationship with performance
The problem with just talking to your customers: competition?
- Your value proposition may be the same – but your relative value proposition may not.
- Your clients may like you – but not your product
- Most people don’t like giving bad news
