Selling and Marketing

Industrial Management

Innovative Assignment

Introduction:

Main 3 areas of Business:

- Finance

- Production

- Sales

Sales (Marketing) Organization :

- By Function

- By Area

- By product group

- By end user category

Functional organization:

The functional organization is usual for the small or medium sized company

with a limited range of related products.

Functional organization has various functional(marketing) departments or

specialists reporting to a sales or a marketing director.

Functional organization has the advantage of administrative simplicity.

Functional organization suffers from certain disadvantages such as:

a) Inadequate detailed planning for specific products and markets, since no

body is assigned full responsibility for any product or market.

b) Products that are not favorites with various functional specialists tend to get

neglected.

Marketing director

salesmanager

Marketing researchmanager

Exportmanager

Advertising and salesPromotion manager

Area based organization:

The area based organization is one of the more common ones in use for

concerns with a relatively limited range of products requiring selling and

distribution to be on a more or less nationwide scale through many outlets.

Product organization:

This type of sales organization is employed when there is range of relatively

unrelated product groups which require different selling methods and the

company sales forces require their particular market and techanical

knowledge.

Marketing director

Sales managerproduct-x

Sales manager Product-y

Marketing services manager

Sales managerProduct-z

End use and customer class sales organization:

If an enterprise is selling a substantial range of products to dissimilar types of

customers or for different uses, the selling operations are split up by type of

customer or end use.

Separate sales forces are necessary.

However, marketing services may either be kept centralized or again split up

as per the particular division of the selling operations.

THE SELLING CONCEPT VS MARKETING CONCEPT

The selling concept:

the selling concept is a management orientation that assumes that consumers

will normally not buy enough of the company’s products unless they are

approached with a substantial selling and promotion effort.

The marketing concept:

the marketing concept is a management orientation that holds that the key

task of the organization is to determined the needs, wants, and values of

target market and to adopt the organization to deliver the desired satisfaction

more efficiently than its competitors.

The two orientations differ from each other for example:

i. selling focuses on the needs of the seller whereas marketing focuses

on the needs of the buyer.

ii. Selling is preoccupied with the seller’s need to convert his products

into cash, whereas marketing lays emphasis on satisfying the needs

of the customer by means of the product.

FOCUS MEANS END

The marketing

concept

Customer integrated profits throughneeds marketing customer satisfaction

Products selling and profits throughpromotion sales volume

The selling

concept

i. Actually, Marketing is another name for selling, with the inference that it is a rather longhaired method.

ii. Marketing is a more expensive way of selling.

MARKET RESEARCH

• Definition

Market research may be defined as an organized approach which includes all

research activities involved in marketing problems:

i. Gathering, recording and analyzing the utility and marketability of the

product;

ii. the nature of demand;

iii. the nature of competition;

iv. The methods of marketing; and

v. Other aspects of movements of products from the stage of production to

the point where they get consumed.

Objectives of marketing research

It is measures sale trends and sales potential.

it analysis distribution, economic trends, and profitability.

It determines advertising effectiveness, consumer reaction and dealer

reaction.

it studies market potential market shares.

It conducts demand and price.

It keeps a business in touch with markets.

It explores new markets and helps developing new products.

It guides sales promotion efforts.

scope of market research:

1. Measurement of market potential,

2. Determination of market characteristics,

3. Market share analysis,

4. Competitive product studies,

5. Short and long range forecasting, Studies of business trends,

6. Testing of existing products,

7. Product mix studies,

8. Acquisition studies,

9. Media research,

10. Pricing studies,

11. Packaging research

12. Distribution channel studies, etc.

Advertising

Advertising can become an established essentials of a country’s economy. It contributes to broad geographic system of distribution; to the volume sells, an essential corollary of mass production; and to the pricing of many products within the economics means of average man.

Just as communication is vital to good internal management, so is advertising vital to the earning of profit

Advertising is generally regarded as a form of communication. The purpose of which is to convey the concepts about the company, goods and services by mean of words, pictures, diagrams, sounds, color, music, shapes and symbols on two level of significance – the national and the emotional.

Advertising is any paid form of non personal presentation and promotion of ideas, goods and services by an identified sponsor.

Advertising may define as commercial message to the public, designed to

inform potential and establish consumer and to encourage sells for the

advertiser.

Advertising can stimulate demand and, where necessary, can even create

demand where non exist .

Advertising arouse public interest, fosters a buying attitude and raises

consumer demand for the product of the company.

Functions and objectives of advertising

It introduces new company product to public

It enhances potential buyer’s responses to company and it’s offering.

It tells that a product which the customers want exists and from where it can be procured and at what price.

It is undertaken to reduce selling cost; because large volume of production will lead to economies, if, through advertising, it can supported by mass distribution.

It makes the product stand against competitors product.

It convinces retailers that they should keep the product of their company.

It creates a confidence in the minds of buyers regarding quality of goods and products.

Functions of advertising department

Preparation and control of advertising budget.

Determining the appropriation or allocation of funds to be spent on advertising and sales promotion activities.

Liaison with advertising agency.

Supervising advertising and market research

Keeping in touch with representatives of important media.

Cooperation with sales and other departments

Distribution of advertising material

Production and supervision of sales and promotion

Merchandising the advertisement.

Co-ordination with the employer and public relation department for improving public and employee relations.

The advertising agency

An advertising agency is a group of specialists in

Research

Preparation of copy

Art

Production

Selection and contact of media

Who provides expert services and to product manufacturers as regards:

The art of advertising

Preparing advertising policies

Planning and preparing advertisements

Sales promotion campaign

Recommendation of media

The preparation of copy

Types of advertising

1) institutional and goodwill type

It is designed to promote and idea or the name of company in eyes of public. Attractive

new years gift’s calendars bearing the name of company can be distributed to the public for

institutional advertising or special art painting can be run in magazines under the company

name

2) direct action type:

It is designed to sell company’s product or services. Newspaper and magazines are full of

such advertisement- all inducing customers to come and buy products of a firm.

Advertising media

Newspapers

Magazines

Radio

Televisions

Direct mail

Public transportation

Outdoor billboards

Exhibits and displays

Slides in cinemas

Catalogues, handouts. Leaflets etc.

Various steps involved in planning and preparing the advertisements Decide purpose

Decide message to be conveyed

Should hold public interest

Is educative and suggestive

Is humorous as well

Put ideas into symbols of some kind, words, pictures, shapes, music etc.

Select advertising media accordingly- to convey information to public.

Keep a written record of the advertising programmed.

Sales Promotion

All the activities that go into the development of sales or those that are intended to raise the demand level for a product very quickly can be grouped under the SALES PROMOTION.

It includes those marketing activities, other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as displays shows and exhibition, demonstration and various non recurrent selling efforts not in the ordinary routine.

It focus the attention of customer at the actual point of sales in the shops with such effectiveness that both the advertiser and dealer are benefitted. The main purpose is to increase sales.

It plays critical role in introductory and maturity stages of the product life cycle and helps during rapid inflation.

The whole idea behind it is to bring the name of manufacturer before wholesaler, retailer, and consumers in order to stimulate their interest in the product.

Sales Promotion Methods

Consumer promotion

Trade promotion

Sales force promotion

Good public relations

Good customer relations

Display

Product exhibitions, demonstrations, and conferences

Holding competitions and awarding prizes to winners.

Product styling and packaging

Channels of distribution

Producers generally do not sell their products directly to final users. Between

them and the final user stand a number of marketing intermediates

performing a variety of function and bearing variety of names.

They are called marketing channels, trade channels, channels of distribution.

Channels of distribution refer to the exchange of ownership of the product

until it reaches the final user.

Different channels are shown:

Manufacturer------------------------------------------------------- consumer

Manufacturer---------------------------retailer--------------- consumer

Manufacturer--------wholesaler---------retailer------- consumer

1) Direct Channel:

The direct channel is very effective and profitable for goods which have a high profit margin e.g. office machines, accounting machines, computers.

In direct selling producer has maximum control over selling practices and policies.

2) Indirect Channel:

Selling through a middle name is indirect distribution. This method does very well with the products of low profit margin.

Middleman buys goods and there by reducing the risk of stocking of goods.

They keep the producers informed about the prevailing market trends.

GOOD ADVERTISEMENTS

Bad Advertisement: