Personal Selling and Marketing Strategies - Assignment Example

PERSONAL SELLING AND MARKETING STRATEGIES By Location Personal Selling and Marketing Strategies 1. Explain how personal selling support the promotion According to Kotler and Armstrong (2010) definition of marketing strategy, it is a marketing plan designed by the business operators to achieve their specific marketing goals or objectives. For example, a firm can have a goal to become a market leader by satisfying its customers. Therefore, the strategy shall be build around researching and developing a marketing mix to please the customers. Some of the marketing goals aimed by most businesses are customer retention, increase products and services awareness, sales objectives and cost efficiency Promotion mix is business tools that are used by entrepreneurs to pass information effectively to customers regarding the various benefits of their goods and services (Baker 2014). Therefore, it involves combining strategies and allocating resources in a cost-effective way. One of the objectives of a promotional mix is to increase the demand of a product or service. During product cycle, this strategy is used to increase the sales although a product may reach a saturation point, and the company turns to a new product. The Second objective is presenting information about the existence of the products and services. The customers or consumers need to understand the full information about the product that may include its availability and benefits. The last objective is to differentiate the product. In circumstances when we have many competitors in the market, firms opt to differentiate their products to look different from what their competitors offer. Personal selling is face to face or a direct two-way communication between the buyer and seller with an aim of making a sale. Moreover, it involves developing a good relationship with the customer, identifying their needs and also adjusts the products to fit their needs. More companies prefer personal selling because it results to more profit although it is costly. Personal selling is considered as more efficient in business growth. Therefore, it plays vital roles in supporting the achievements of goals of the promotional mix. Personal selling increases the demand of products and services by increasing the products’ awareness towards purchase. When customers become aware of the availability of the product, then its demand will increase since they will start buying it. Through presenting information to the customers, personal selling is good at explaining the products’ information or any aspect related to the products hence giving explicit information regarding the product (Smith, Gopalakrishna & Smith 2004). 1.2. Compare buyer behavior and the decision making process in different situations Business buyer behavior refers to the buying of goods and services by the various businesses and uses them for further production of other goods and services or selling them to other businesses. When making buying decisions, various factors that include environmental, organizational, individual and interpersonal influence business buyers. On environmental factors, the demand and supply conditions affect the decisions by the buyers. If the prices of raw materials increase, the organization will for another alternative. On the organizational factors, the objectives, procedures, policies and structure of the organization affect the business buying decisions since the criteria used may differ. Interpersonal factors diverse roles in influencing buying decision. Power conflict, experience and skills in an organization may lead to complications in the buying decisions. Lastly individuals in an organization may influence the buying decision through their, expertise, authority or relationships with other members or individuals. Similarly, business buyers are subjected to major influences that include economic and personal factors. About economic factors, buyers prefer suppliers who provide best service or product and lower prices. Therefore, buyers will change their decisions because of the strong economic benefits. Also, marketers have realized that emotion is crucial in the business buying decisions. Business buying process refers to the process of identifying the products or service to purchase, verify their qualities or choose among the brands and carry out transaction process. In an organization, the buying center is the decision making unit. Therefore, it includes all the individuals and units that are involved in making key decisions in the business. These members include the following but not limited to: users, buyers, influencers, gatekeepers and the deciders. In organization, the users refer to those people who will buy or use the products and services. Similarly, they are the ones who initiate the buying proposal. The influencers define specification and give relevant information that will be used to evaluate alternatives. The most important influencers are the technical personnel. Buyers on the other hand are the people who have the authority who select vendors and also negotiate. Similarly, they select the suppliers they want and arrange payments terms. We also have the deciders who have the power (formal or informal) to choose and approve the selected supplier. Lastly, the gatekeepers have the role to control the flow of information in the organization. The gate keepers include personal secretary, purchasing agent and technical personnel. However, there are eight stages in a business buying process, and they are explained as follows. The business buying process begins with Problem recognition. This is the initial phase of a buying process whereby the marketing organization realizes a problem that can be solved by acquiring a particular service. After the problem recognition, a general need description is prepared. However, it consists of the description of the characteristics and quantity of the item on demand. Thereafter, product specification follows and this involves using value analysis engineering team. The buying organization develops technical product specifications for the item. The team will also come up with the best characteristics of the product and specify them well. The next process that comes after product specification is the supplier search. At this stage, the buyer engages in supplier search to find good vendors. Next is proposal solicitation. At this stage of the buying process, qualified suppliers are invited to submit their proposals. Sometimes the item can be complicated and in such case, the buyer will request for detailed written proposals from each of the potential suppliers. After the proposal solicitation, the buying organization then selects the supplier. Therefore it involves reviewing the proposals and selecting the supplier(s) they consider better. During the process, the suppliers are drawn following their attributes and relative performances. The suppliers are selected and an order-routine specification is conducted. This is the second last thing that buyers prepare, and it is the final order consisting of the chosen supplier(s) and lists items. The last process is the performance review whereby suppliers’ performances are critically reviewed. Also, users may be contacted to give their satisfaction. Therefore, the outcome of the review may make the members of the buying center continue, modify or drop the arrangement in question. The business buying process is as follows. According to Kotler and Armstrong (2010), the three types of buying situation include the following; straight rebuy, modified rebuy, and new task. In straight rebuy, the buyer makes fewer decisions and also is involved in reordering something without any modification. On the other hand, modified rebuy involves a buyer modifying product prices, terms, specifications or even suppliers. Lastly, the buyer makes most decisions in the new task and particularly, the buyer must give a decision on price limits of the products, their specifications, and terms of payment and service. Additionally, more decisions must be made on suppliers, the terms of payment and the quantity of the order. 1.3. Analyze the role of sales teams within the marketing strategy The sales teams carry out diverse roles within the marketing strategies. In prospecting the sales teams try to locate the possibility of getting potential customers. After prospecting, the sales teams engage in carrying out a pre-approach whereby details of the prospect buyer are collected. The sales persons will determine their clients’ needs that have not been satisfied. This will help in the preparation of the sales plan. The next role is the approach whereby the sales teams directly interact with the customer and come up with the ways to satisfy their needs and wants. Similarly, the sales team will demonstrate or present the capabilities of their firm or company in providing satisfaction. Products are described in suitable language, and samples are also offered (Baker 2014). The sales teams also handle the various objections and complaints from the customers. Specifically, this occurs after the sales presentation, and the sales teams play a role in ensuring that the complaints are interpreted clearly and removed tactfully. Additionally, the sales persons are involved in closing of the sales and orders taking. Lastly, the sales teams always conduct post-sales actions. In this case the salesperson will write the orders, arrange for their dispatch and delivery, and finally the sales person will decide on his or her best mode of payment. Personal selling results to actual sale of the product or service on offer. Therefore, this increases the sales outcome or profit. Also, personal selling provides the customers with education about the product’s differentiation and availability. Personal selling is a good compliment to advertising hence this reduces the cost that would have been used to cater for advertising (Manning, Ahearne & Reece 2011). References Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan. Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson Education. Manning, G. L., Ahearne, M., & Reece, B. L. (2011). Selling today. Pearson Higher Ed. Smith, T. M., Gopalakrishna, S., & Smith, P. M. (2004). The complementary effect of trade shows on personal selling. International Journal of Research in Marketing, 21(1), 61-76. Read More