Sources of Differential Advantage

1
Chapter 15

• Sources of Differential Advantage
• Features of company/product perceived by TM as
  significant and superior.
• Features Quality, Rapid Delivery, Low Prices,
  Excellent Services, Unmatched Feature

2
Chapter 15

• Promotional Strategy Equation
• PS TM PM
• Promotional Mix (PM)
• Personal Selling
• Advertising
• Sales Promotion short term, definite end
• Public Relations

3
Chapter 15

• (P. 514, Ex. 15.2)
• The Communication Model
• NOISE

SENDER
ENCODING
MESSAGE CHANNEL
DECODING
RECEIVER
FEEDBACK COMMON FRAME OF REFERENCE
4
Chapter 15

• Goals and Tasks of Promotion
• Inform
• Persuade
• Remind
• Promotional Goals and AIDA
• Awareness
• Interest
• Desire
• Action

5
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• Factors Affection Promotional Mix
• Nature of the product
• Business or consumer
• Type of good
• Costs and risks
• Stage in product life cycle
• Target market characteristics
• Type of buying decision
• Routine to complex
• Available funds
• Push and pull

6
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• Personal Selling
• -Direct communication between a sales
  representative and a prospective buyer in an
  attempt to influence each other in a purchase
  situation.

7
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• Relationship Selling
• Multistage Process
• Emphasis on personalization
• High level of empathy
• Build mutual trust
• Deliver anticipated, long-term, value-added
  benefits

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• Steps in the Selling Process
• Generate leads lead generation, prospecting
• Qualify leads lead qualification
• Consists of 3 things
• A recognized need
• Buying power authority and money
• Receptivity and accessibility
• Approaching the customer
• What you need to know
• Product knowledge
• The customers and their needs
• The competition
• The industry

9
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• Steps in the Selling Process (cont.)
• Developing and proposing solutions the
  presentation
• Handling objections
• Close the sale
• Follow up

10
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• Sales Management Tasks
• Define sales goals and the sales process
• Determine sales force structure industry-based,
  market based, key account
• Recruiting and training the sales force year
  round training for all experience levels
• Compensating and motivating the sales force
• Compensation straight commission, straight
  salary, combination

11
Chapter 15

• Sales Management Tasks (cont.)
• Use rewards a lot be inspirational
• Evaluate the sales force
• Feedback on
• sales volume,
• contribution to profit,
• calls per order,
• sales or profits or call,
• percentage of calls,
• achieving goals
• Effective Sales Leaders (ex. 15.11, P. 541)

12
Chapter 15

• Terms
• Promotional Strategy
• Differential Advantage
• Communication Process (Terms 7)
• Integrated Marketing Communications
• Push and Pull Strategies
• Relationship Selling
• Seven Steps in Selling Process
• Referral
• Networking
• Prequalifiers
• Needs Assessment