Managing & Understanding The Customer In Oil & Gas Industry.

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• Managing Understanding The Customer In Oil
  Gas Industry.
• Advance Level

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Personal selling defined

• Person-to-person dialogue
• Between prospective buyer and the seller
• Direct human contact
• Matching products to needs

• Involves developing relationships
• discovering and communicating customer needs
• communicating benefits

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Personal selling

• Personal selling is the most widely used means by
  which organizations communicate with their
  customers
• Used by profit and nonprofit organizations, big
  and small
• Money spent on personal selling far exceeds money
  spent on advertising

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Limitations of personal selling

• Expensive per contact
• Many sales calls may be needed to generate a
  single sale
• Labor intensive

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Types of personal selling tasks

• ORDER TAKING
• Do very little creative selling
• Write up orders
• Check invoices for accuracy
• Assure timely order processing
• May use suggestive selling

• Inside or field order- takers
• Telemarketers are often order-takers
• Due to improvements in inventory management and
  communications technology, some field
  order-takers have been replaced by computers

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Types of personal selling tasks

• ORDER GETTING
• Creative selling
• More time consuming
• Sell to new prospects (pioneers)
• Sell to continuing customers (account managers)
• Some use of telemarketing, particularly to small
  accounts

• Seek out customers
• Analyze their problems
• Discover solutions
• Sell solutions to customers

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Common activities of order-getting salespeople

• Selling function
• Working with orders
• Servicing the product
• Information management
• Servicing the account
• Conferences/meetings
• Training/recruiting
• Entertainment
• Out-of-town traveling
• Working with distributors

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THE CREATIVE SELLING PROCESS
FOLLOWING UP
CLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
APPROACHING THE PROSPECT
IDENTIFYING QUALIFYING PROSPECTS

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Identifying and qualifying prospects

• Identify prospects who have
• the need to buy
• the financial ability to buy
• the authority to buy

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Identifying and qualifying prospects

• Finding these prospects?
• Trade lists ( GNPC,NPA Website)
• Referrals
• Inquiries
• Internet visits
• Government publications
• Cheque returns
• Previous customers
• Internet smart agents

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The approach

• Initial contact
• Establish rapport
• Make a good impression
• Problem solver for prospective buyer
• Collect information

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Sales presentation

• Tell the product story
• Attention, interest, desire, action
• Use of appropriate sales aids (computers, videos,
  brochures)
• Importance of verbal and non verbal
  communications

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Handling objections

• Listen and learn first
• Yesbut
• Additional information
• Counter arguments
• Change product or service to overcome objection

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Closing the sale

• Know when to close
• Trial closing
• Assumptive closing
• Straightforward approach
• Summative approach
• Narrow the alternatives

When would you like to take delivery?

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Closing the Sale

• The point when the salesperson obtains agreement
  from customer.
• Customers are willing to purchase when
• Benefits have been explained.
• Features are demonstrated.

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When Can You Close?

• At any point in time
• Approach
• During Presentation
• Overcoming Objections

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Follow up

• Make sure all promises have been kept and the
  customer is satisfied with the purchase
• Resolve any problems encountered

Its working perfectly!!!

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Ethical issues in sales and sales management

• Kickbacks, bribes and gifts
• Price discrimination
• Cheating on expense accounts
• Misrepresentation

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CUSTOMER CARE-OUTLINE

• Definition of customer care
• Requirement of good customer care
• Why has customer service remained elusive?
• Who are the internal customers
• Customer service dynamics
• Reputation management
• Problem solving skills

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What is customer service

• Customer service is defined as the commitment to
  providing superior value to customers through
  caring customer contact, technical support and
  adding benefits in order to maximize service
  experience.

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Fundamental requirements of customersCustomer
wants and needs differ. However, most customers
are united in their quest for the following

• Service Depending on the level of involvement,
  customers will require some appreciable level of
  service delivery. High contact services such as
  buying fuel from the pumps require a high level
  of customer service.
• Appreciation Customers derive some pleasure when
  service providers appreciate their custom. Name
  recognition, courtesy, expressing gratitude and
  offering discounts are ways of showing
  appreciation.

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• Action Swift response to concerns, complains and
  questions provides reassurance to customers which
  enhances service experience.
• Price Customers need fair prices. Unfair prices
  give customers a sense of exploitation leading to
  negative customer encounters.
• Quality Customers desire products that meet
  stated attributes. In customer care, quality is a
  function of how a customer feels and not the
  inherent benefits of a product.

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• Why has customer service remained elusive?
• Lack of trained and qualified customer service
  staff
• Reluctance to invest in customer care
  infrastructure
• Failure to leverage on information technology to
  enhance customer service.
• Lack of periodic evaluation of customer service.
• Customer service providers inability to perceive
  themselves as customers.
• Absence of regular performance appraisal.
• Low level of empowerment.

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• Treating employees as internal customersAll
  employees need to be treated as internal
  customers. Organizations need to engage in a set
  of activities that will keep their employees
  happy before they can expect an exhibition of
  client care to external customers.According to
  Kotler, internal marketing deals with marketing
  by a service firm to train and effectively
  motivate customer contact employees and all the
  supporting services to work as a team of people
  to provide customer satisfaction.Oil and gas
  firms need to promote internal customer culture
  by

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• Creating an internal awareness of customer care
  vision and objectives.
• Determine the expectations of internal customers
  (employees)
• Communicating to internal customers using face to
  face meetings, intranet, newsletters etc.
• Set a feedback mechanism which employees
  (internal customers) can use to proffer
  suggestions complaints etc.
• When internal customers are satisfied, it will
  lead to manifold effects such as,
• Fewer shoddy goods. E.g. refining crude to
  desired standards
• Boosted morale of workers
• Diminished labour turnover
• Fewer apologies to customers. E.g. for incorrect
  bills to fuel wholesalers and distributors
• Enhanced company reputation
• Retention of valued customers.

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• Loss of customers
• Poor customer care can lead to the loss of
  valued customers with adverse consequences. The
  loss of customers lead to he following
• Loss of sales revenue
• Loss of future business
• Fall in competitive position
• Job redundancies
• Decline in reputation

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• CUSTOMER SERVICE DYNAMICS
• Satisfying and exceeding customer expectations
• Expectations involve our personal desire and
  vision of the results that will emanate from a
  service encounter.
• The following can be used to satisfy customer
  needs and exceed their expectations.
• Know your customers (who are they)
• Determine customer expectations.
• Inform customers of service standards.
• Live up to customer expectations.
• Maintain consistency and reliability.

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• REPUTATION MANAGEMENT
• Reputation management is the process of
  identifying the perceptions held by a companys
  publics and establishing a definite scheme to
  correct, maintain and enhance the companys
  image.
• Customer survey is a starting point but the
  perception of the larger stock of stakeholders
  should also be evaluated.
• Characteristics of a reputable firm
• Shows responsiveness to customers.
• Its trustworthy.
• Keeps and delivers service promise.
• Adds value to customers.

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• Compliant to ethics and statutory regulations
• Environmentally friendly . For instance, The EPA
  gave Tema Oil Refinery and Tema Lube Oil Company
  Ltd red ratings, a manifestation of poor
  environmental performance.
• Leverages on up to date technology
• Treats employees as internal customers
• Exhibits sound financial performance
• Has excellent internal and external
  communications
• Top management is customer friendly
• Is a good corporate citizen.

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• Firms reputed for excellent customer service.
• The impressions and reflections of customers
  represents the reputation company has
• An organization with a good customer service
  culture will exhibit the following features
• Conducts business with a human face
• It is amenable to change in industry practices
• Provides superior value to customers
• It is ethical and environmentally friendly
• Has a policy of customer is always right
• Empowers employees

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• Barriers to excellent customer care
• Hurdles faced by customer contact employees in
  the course of providing customer service can be
  categorized as
• a) Controllable Barriers Those within the
  influence and control of customer service
  employees.
• b) Uncontrollable Barriers Those obstacles that
  are beyond the spheres of control of the customer
  care employee.
• Barriers that customer service providers can
  surmount are
• Poor communication skills.
• Laziness.
• Inability to handle difficult customers
• Poor time management.
• Poor attitude.

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• Personal credibility
• To boost customer service, employees involved in
  customer service need to build some good sense of
  credibility by
• Practicing consistency Display professionalism,
  maintain composure and show warmness at all time.
• Keep to your words Endeavour to fulfill all your
  promises
• Develop your knowledge Understand the marketing
  mix of the firm.
• Be a team player.
• Be dedicated to satisfying customers.
• Express apology when there is a shortfall in
  service delivery.

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• Dealing with conflict
• Conflict emanates from hostile encounters due to
  opposing needs. Customer service employees
  regularly handle conflicts.
• Dealing with Conflict Involves
• Listen to customer viewpoints and opinions.
• Don't play the blame game.
• Avoid referring to negative past encounters.
• Use the diplomatic card to play the game.
• Use opportunity to solve broad problems.
• Brainstorm and offer the best solution.

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• Follow Ups in Problem Solving
• Follow ups involve attempts to find out whether
  devised solutions are working according to plan.
  It can help also measure customer satisfaction
• Keep customers informed about the status of their
  problem if the process to solve the issue is
  ongoing
• Provides an opportunity to let customers know the
  firm values their custom.
• Apologizing to a customer
• Acknowledge customers feeling
• Accept some responsibility for the problem
• Convey sincerity in verbal, written and
  non-verbal communication
• Ask for the opportunity to solve the problem
• Request the opportunity to continue doing
  business in the future.

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• EMPOWERMENT
• Empowerment involves giving a customer service
  providers adequate authority and responsibility
  to enable them make a range of decisions to
  service customers.
• Empowering customer service staff involves
• Clearly state customer service objectives.
• Set up effective customer service systems.
• Allow workers to take ownership of their
  decisions.
• Reward employees who exhibit excellent customer
  service.
• Long time commitment.

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CRM

• CRMCustomer relationship management. . .is the
  overall process of building and maintaining
  profitable customer relationships by delivering
  superior CUSTOMER VALUE and satisfaction.

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CRM

• "I haven't noticed the quantity going down but if
  I'm paying the same price and it is going smaller
  it will make me think again.
• BP going by their concept of satisfying their
  clients . You would have thought it would have
  got larger.
• "I love BP enough to pay the same amount for it
  products, but I'd rather the price went up and we
  got more quantity."

• Imogen Bliss, 20, favourite fuelling _at_ BP

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CRM

• It costs 5 to 10 times MORE to attract a new
  customer than it does to keep a current customer
  satisfied.
• Marketers must be concerned with the lifetime
  value of the customer (LCV)

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CRM (Key Concepts)

• Attracting, retaining and growing customers

• Customer equity
• ?The total combined customer lifetime values
  (LCV) of all customers.
• ?Measures a firm?s performance, but in a manner
  that looks to the future.

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CRM (Key Concepts)

• Building customer relationships and customer
  equity

• Customer relationship levels and tools
• ?Target market typically dictates type of
  relationship
• ?Basic relationships
• ?Full relationships
• ?Customer loyalty and retention programs
• ?Adding financial benefits
• ?Adding social benefits
• ?Adding structural ties

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KEY ACCOUNT MANAGEMENT

• KAM
• Pareto principle
• ?focus on the 20 of customers who contribute to
  80 of the profit
• ?Several stages of KAM
• ?Although relationships are being developed, KAM
  still deals initially with TRANSACTIONS

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TRANSACTION or RELATIONSHIP?

• Straight re buys are essentially, TRANSACTIONS
• Modified re buys may involve some NEGOTIATION
• New tasks are the area of OPPORTUNITY
• Particularly if the organisation knows what it
  wants but does not know how to get it
• More than a transaction, new business requires a
  RELATIONSHIP approach

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RELATIONSHIP MARKETING

• Christopher and Peck (1998) suggested that
  transactional approach may not be appropriate
• Market activity has become less of a TRANSACTION
  and more of a RELATIONSHIP between the buyers and
  sellers
• How can RELATIONSHIP MARKETING be characterised?

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CUSTOMER MARKETS

• Customer is always the PRIMARY focus
• Customer is the source of REVENUE
• The LOYALTY LADDER is a model showing how
  PROSPECTS may become ADVOCATES

Source Christopher, Payne Ballantyne (1991)
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Ladder of customer loyalty
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Understand The Buyer

• Key reading. Kotler (12thedn) Ch 5 6

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BUYERS DECISIONS IN PRACTICE

• Please think of a product that you bought
  recently. What decision process did you go
  through before you made the purchase?
• Discuss in Groups for 10 minutes and then choose
  TWO examples for presentation.
• Present to whole class, 5 minutes each example,
  by each Group.

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Understanding the Buyer

• Products
• Consumer Markets
• Business Markets

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CONSUMER MARKET

• Individuals and households who buy or acquire
  goods and services for personal consumption.

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CONSUMER BEHAVIOUR

• MARKETING STIMULI

• BUYER RESPONSE

BUYERS BLACK BOX

• 4Psproduct price place promotion. PEST
  Political Economic Social Cultural

• Product? Brand? Dealer? Purchase timing? Purchase
  amount?

Buyer characteristics Buyer decision process
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FACTORS INFLUENCING CONSUMER

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TYPES of CONSUMER BUYING DECISION BEHAVIOUR
High Involvement
Low involvement

• Brands significantly different

• VARIETY SEEKING

COMPLEX

• Few differences between brands

• HABITUAL

DISSONANCE REDUCING
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CONSUMER BUYER DECISION PROCESS

• Need recognition

• Information search

• Evaluate alternatives

• Purchase decision

Post purchase behaviour
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CONSUMER ADOPTION

• Buyer decision for NEW products
• Five stages of ADOPTION

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FIVE STAGES of ADOPTION

• Awareness
• Interest
• Evaluation
• Trial
• ADOPTION

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Business Market

• Characterise business markets and buying
  processes
• Know the factors influencing business buyer
  behaviour
• Explain how business buying decisions are made
• Be aware of the characteristics of government
  purchasing processes

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B2B

• Industrial markets (B2B) differ from consumer
  markets (B2C)
• Factors affecting B2B include
• ?Influence of global factors (Yip)
• ?Increasingly complex relationships between firms
• ?High technology context

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BUSINESS MARKETS (Structure)

• Fewer but larger buyers
• Geographic concentration
• Demand derived from consumer demand
• Relatively inelastic
• Fluctuating

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BUSINESS BUYING PROCESS

• Kotlers definition states that this is
• The decision by which business buyers determine
  which products and services their organisations
  need to purchase and the FIND, EVALUATE and
  CHOOSE among alternative suppliers and brands.
• The implicit assumption is that purchases are
  made from EXISTING offers in the market

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BUSINESS MARKETS

• BUYING UNIT
• ?More buyers and actors
• ?Professional purchasing effort

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PARTICIPANTS IN THE BUSINESS BUYING PROCESS

• USERS may initiate and specify
• INFLUENCERS define and evaluate alternatives
• BUYERS formal authority to purchase
• DECIDERS power to approve supplier
• GATEKEEPERS control information flow or access to
  other participants

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FACTORS INFLUENCING BUSINESS BUYER BEHAVIOUR

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TYPES of BUSINESS BUYING SITUATIONS

• STRAIGHT REBUY
• ?Routine reordering
• MODIFIED REBUY
• ?Change in specifications prices, terms, or
  suppliers
• NEW TASK
• ?Purchases product or service FOR THE FIRST TIME

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BUSINESS MARKETS

• DECISIONS
• ?Usually more complex
• ?More formalised
• ?Long term relationships and
• ?Close relationships between buyers and sellers

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• THANK TOU