Promoting & Selling Your business. Objectives of the workshop Establish if your business has a...

transcript

Promoting & SellingYour business

Objectives of the workshop

Establish if your business has a Marketing culture

Highlight the central role of customers to your business.

Examine ways to promote your business

Examine ways of improving your selling skills

Introduction to Marketing

Section 1.

What does the term Marketing mean to you?

What is Marketing?

Marketing is …a business philosophy which

puts the customer at the centre

of all your company’s activities

“A customer is the most important visitor to our

premises. He is not dependent on us; we are dependent

on him. He is not an interruption to our work; he is the

purpose for it. He is not an outsider to our business; he is part of it.

We are not doing him a favour by serving him,he is doing us a favour by giving us an opportunity to do

so”.

Mahatma Gandhi once said…

The Marketing Mix

Marketing Information

Marketing

Planning

Marketing

Activity

Marketing

Control

TargetCustomer

Product

Promotion

(Inc Sales)

The ExternalEnvironm

5th `P`

For People

Remember?

Marketing is more than ….

Advertising Selling Designing websites Sending out brochures Giving Christmas calendars to

customers

A simple definition:

Marketing is satisfying your customer’s needs

more effectively than your competitorswhile still making a profit

So who are your customer?

Who are your customers?

Your Customers are those groups you serve that have needs which you can satisfy

Exercise 1.

Who are your customers?

Take a few minutes to list all the customer groups serviced by

your business?

Craft Sector Example General Public Tourists Direct Sales to other independent shops Retail craft / giftware chains groups Customers at exhibitions & craft fairs Web customers Interior designers Specialist Commissions e.g. Wedding

invitations Agents / wholesalers

Do you monitor customer performance

Do you know who your largest and smallest customers are?

Do you know who your most and/or least profitable customers are?

Do you know what products they buy and why?

Do you know why they don’t buy all the products and services you provide?

Are you too dependent on one key customer?

The life-time value of a customer?

Calculate average daily sale / customer£3.50

By the number of sales each year£21.00/ week X 48 Weeks = £1,008/Yr

By number of years you keep the customerSay 20 years x £1,008

Gross life time sales value per customer£20,160

How to create business growth?

Sell more -Existing Products to Existing Customers

Sell new -Products to our Existing Customers

Find new-Customers for our Existing Products

Find new-Customers for New Products

Promotional Activity

Section 2.

Your Brand Develop the core values you wish to

portray Decide on a budget Ask graphic designers / printers to show

you completed works Make decision on price, quality of work

and personality Once you have a Corporate Identity /

Logo make sure you keep it consistent

What is Promotion?

Any form of communication used by business to send messages

to existing orpotential customers

Why promote your business?

To create Awareness for your product / service

Gain the Interest from the target audience

Sell benefits that satisfy their needs so that they Decide to buy your products / service

Encourage Action, invite participation or encourage them to make a decision

Promotion

Successful promotion depends on

Planning and Preparation

Stages in developing a Promotional Plan

Audience Who are you promoting to?

Objective What is it you want to achieve?

Tools & Which promotional tools should you use

Budget and how much will they cost?

Monitor & Are your achieving what you wanted toEvaluate achieve?

Who are your Audiences?

Have you segmented your markets? What customers are you targeting? Where are they located? Do they know you exist? If so, what do they think of you? If they don’t, how can you create

awareness with them?

Setting Clear Objectives

These could be, to:

• Move your audience along the buying process:

• Change perceptions of your business/company

• Build customer loyalty

• Stimulate demand

• Increase your distribution and sales

• Launch a new product / service

Promotional Tools Four main types

Advertising: any paid for form of non-personal promotion of goods and services by an identified sponsor

Sales Promotion: short term incentives to encourage purchase of product / service

Public Relations: activities designed to improve, maintain or protect a company or product image

Personal Selling: oral presentations with one or more prospective purchasers for the purpose of making a sale

Exercise 2

List 10 different promotional tools

which might be of use to your business?

Promotional Tools

Advertising

Sales Promotion

Public Relation

Personal Selling

Newspaper Magazines TV Radio Billboards Displays Packaging Logos Leaflets POS

Discounts Offers Exhibitions Vouchers Competitions Trade-ins Low Interest Rebates Direct Mail Loyalty cards

Press release Seminars Sponsorships Community R Charitable £ Speeches Interviews Workshops

Sales calls

Tele-sales

Sampling

Exhibitions

Incentives

Promotional Tools

TargetMarket

Word of mouth recommendations

Word Of Mouth

Extremely effective and common source of promotion for businesses

Advantages • Costs nothing• Requires little effort – just satisfy customers Disadvantages• You can’t control what they say • Slow to build • Can be very damaging if the customer has had a

bad experience

Promotional Tools

The Communications mix

Advertising

TargetMarket

Recognised method to raise profile and awareness to a wider audience.

Can be expensive and ineffective

Key to success lies in:1. Having a clear message 2. Planning and designing the advert3. Choosing the right place to advertise

Advertising

1. Have a clear message Inform customers of product and service Create awareness for a new business Build the image of a product or business Tell customers about a special event

/offer Counteract competitor efforts Reinforce and assure customers they

made the right choice

2. Designing the Advert Strong Headline Sell benefits Keep copy short Contact details Branding / logo

Note – select the best media for the target audience and get timing right

3. Choose the right media Newspapers Magazines Yellow Pages Local Radio TV Buses Billboards (48 Sheet) Adshels

Promotional Tools

Advertising

TargetMarket

Word of mouthrecommendations

Exhibitions

Choosing an exhibition

• Why are you considering this exhibition?

• What do you want to achieve?• Who else exhibits?• Who visits?• How much does it cost?

Planning for an exhibition

• Stand location• Stand design• Products and brochures• Personnel• Pre-selling

Exhibitions

Key issues to address to be effective:

At the exhibition• Manning the stand• Recording enquiries• Qualifying leads

After the exhibitionFollow-up on leads quickly!

Promotional Tools

Advertising

Exhibitions

TargetMarket

Direct mail &telesales

Direct Mail

Advantages:

Clearly targeted at specific prospects.

Economical way to target large numbers of prospects but in a personalised way.

Hidden from your competitors

Telesales

Advantages Instant opportunity to answer

questions about your products /service Get the opportunity to speak with right

person Cost effective compared to direct sales Measurable results Makes personal visits easier

Direct Mail / Telesales

Disadvantages

• Poorly researched prospect lists and databases provide a poor return.

• Irrelevant or bland message produces a negative image.

• Lack of planning for follow-up and fulfillment restricts success

Many companies now use telesales approaches, the receiver may put up barrier

Promotional Tools

Advertising

public relations,corporate events,sponsorship

exhibitions

TargetMarket

direct mail &telesales

One of the most under-utilised and cost effective forms of promotion:

• Public Relations

• Press Releases

• Sponsorships / Corporate events

Always be aware of potential news stories

Make sure the media is relevant to target audience and the story supports your

company image.

PR/Publicity

A good business story Investment in a refit or expansion New product / service launch Technological developments - R&D Company initiatives – NVQ / ISO Exclusive listings Expansion / Recruitment of new

Writing a Press Release

“What, Who, When, Where and Why”

What is happening? Who is responsible / attending? When and where is it happening? Why is it happening?

Press Release cont’d

In writing a press release: Be Concise – factual, no waffle Use quotes – from a relevant person

adds interest Provide editorial notes i.e.

background Provide contact names of 2 people Professional presentation Photographs if possible

Exercise 3

You are organising a charity event, you wish to attract as much

coverage as possible Write a short Press Release aimed at

the local press

Sponsorships How much has been requested? What return will you get ? Who will be promoting the event? Are the any possible sources of

conflict? Make sure these wont impact n you Would supporting them in another way

be better for you

Promotional Tools

Printed brochures;

Advertising

Public relations,corporate events,sponsorship

Exhibitions

TargetMarket

Promotional Literature

Consider how and when you will use the material.

Promote features and benefits

Keep literature up-to-date.

Ensure consistent branding.

Promotional Tools

Printed brochures;

Advertising

Exhibitions

TargetMarket

Web - email

Web Site

Consider what you want from a web site

• Get connected – email facilities

• Publish information on your organisation/

company, its products and services

• Interaction – sharing information, EDI

• Transaction - ability to sell online

• Integration- both parties can access

information

Web-Site

Just having a web site is not active promotion:

Integrate your web site into your overall promotional plans.

Effective Web Marketing

Careful selection of metatags Search engine registration Reciprocal links Banner Adverts Email newsletters Non web based promotion

Promotional Tools

Printed brochures;videos; CD roms;multi-media material

Advertising

Exhibitions

TargetMarket

Web-site

Sales Promotion

Point of sale

Sales Promotion Seasonal Sales periods Weekly / Monthly special offers Price Promotions Loyalty schemes Gift vouchers / money off coupons In-store demonstrations Competitions POS Window displays

Section 3.

Selling and the Sales Process

Sales Planning Grade your existing customers Decide what you want to sell them Develop prospect Lists for new

business Plan for Who, When, and Where you

are going to make a sales approach Set goals so that you have a target to

work towards

Sales Preparation Know you Product Know your Customer Know the Competition Have the right People Develop Sales Support Materials Prepare for the Sales Approach

and set objectives

Objectives..why are you there?

Typical Objectives:• generate sales revenue• opportunity to quote• product trial• Arrange a factory/facility

visit• awareness building

The Sales Process

Sales Process

Opening Probing Supporting Overcoming objections Negotiating Closing a sale

Opening...Agenda Setting

• First opportunity to take control• Demonstrates that:

• you are organised;• you have prepared;• you have objectives.

• Communicates confidence - the buyer is more likely to respect you and listen.

Probing

Probing allows you to establish a clear, complete, mutual understanding of the

customers needs.

Probing....

Closed probes limit customers response egs: “How many representatives do you have?” “Have you ever?” “How do you feel about...?” Open Probes help you identify / understand

customers needs, and increase the chances of the customer offering an opportunity :“what, when, how, who, in what way, ....”

Positioning probes and check questions :“Many of our customers have found that...what has been your experience?”

Softening probes for sensitive areas:“Would you mind me asking what.....?”

Express it positively............tell me about the problems...but which areas would you like to improve.

Exercise 4

List 10 questions which may be of use to you with a

prospective buyer.

Listening....

• Listen actively• Acknowledge• Allow time and opportunity to speak• Don’t prompt• Don’t interrupt• Understand context and content

Active Listening....

• Listening to understand

• Listening to win

• Listening to talk

Supporting....

Use features and benefits to provide information to the customer

Supporting....

The Supporting Process: acknowledge the need describe the relevant features and

benefits check for acceptance.

Benefits....

A product benefit can be defined as what the product or service will actually do for the customer

In a selling situation it is useful to translate all features into the relevant benefits

Never assume that the customer will make the translation from feature to benefit

To communicate the benefit simply state the feature and follow it with the benefit

Feature.....’and that means to you’ ....Benefit

Provide Proof & Build Confidence

Core product benefits & list of competitive advantages

Brochures and technical details Accreditations Press cuttings Samples

Deal with Objections

Be prepared for every objections List all objections in advance Discuss with your colleagues how

they address each objection Combine the outcomes to develop

a strong response to the objections

Write them down and practice

The 3 common objections• I’m happy with my current supplier!

- suggests Loyalty• I can’t see me needing that! - suggests lack of awareness to the

Demand• It’s too expensive! - Price objections can be a hidden

request for more information

Supplier Loyalty

Don’t undermine their current supplier Move slowly Ask lots of questions Identify a niche to show additional sales

opportunities Differentiate your offering Give supportive reasons for changing Suggest a trial order

Absence of Perceived Demand

Prepare your argument around wants and needs

Prove demand Quote current customer base Obtain an opening through active

questions

Price Objection

Comparison with other products, differentiate where possible

Question the customer on their requirements to show how your additional benefits can satisfy their needs

Look at the total product inc order size, terms volume discounts, after sales service, warranties etc

Negotiation

Identify all of the potential negotiation points that may arise

Set the negotiation limits that apply to each negotiation variable

Always pitch your opening stance high: the buyer might agree! it provides a basis for concession from

Exercise

Take five minutes and consider the answer(s) to this question.

What aspects of the product or service that you sell is negotiable?

Typical Negotiation Points

Price;

Specification;

Credit Terms;

Delivery Times;

Minimum Orders.

Negotiation:Concessions

A concession from the seller will give the buyer a feeling of power and control

Always maximise the sellers concession In order to deliver 4, which is actually

below the minimum order quantity of 10, we’ll have to incur double the distribution price per item

Negotiation:Concessions

Always minimise the buyers concession:“There is no need to offer us a three week lead time on delivery as we carry all lines in stock and call in your area weekly.”

When a concession is agreed: - clarify and use it as the basis for an attempt at closing:“So, if we agree to offer 5% ongoing nett invoice discount you’ll pay within 30 days of delivery of the goods. It that your understanding?”

“Okay, lets talk about an order”

Typical Buyer Negotiation Techniques

“Give us £5 off per case on the first container load and then we’ll look at a higher price on the second load.”

The Sellers Option: ask for a commitment for a second order

and price; assess the balance of power; sell the advantage of a mid-price and

establish this as the on-going price; defuse and wait for a reaction.

Negotiation

Resist the option to concede without negotiation:

• it suggests weakness• it suggests that you have more room for concessions.

Negotiation:Summary

• Identify negotiation points;• Calculate your concession range;• Pitch high and prepare to negotiate;• Maximise sellers concessions;• Minimise buyers concessions;• Never “roll-over”.

How To Close...• Review previously accepted benefits:

“let me go over some of the ways we can help you achieve your goals.”“lets go over what we’ve talked about so far..”

• Propose next steps for you and the customer:“if you’ll draw up a purchase order, I can process the order today”“I’d like to arrange for our technical manager to visit your warehouse, to do that I’ll need you to fax me the contact names and addresses”

How To Close...

Check For Acceptance:

“what do you think?”“how does that sound?”“Is that acceptable?”

Sales SummaryTo be successful remember Time is short - so use it effectively Preparation before hand Plan for and set set realistic goals Know your product / service Know the competition Prepare for objections Watch and listen for buying signals to

close Leave the door open

To Conclude

• Know your target audience.

• Have a well defined promotional objective.

• Carefully select the most effective mix of promotional tools.

• Consider your budget.

• Check results, if not working take corrective action.

• Use results to assist with future promotional decisions.

Promoting & Selling Your business. Objectives of the workshop Establish if your business has a...

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