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Lagu Lecture 5O =#&Marketing, Selling, and Brand Building''Professor Rajendra K. Lagu Department of Electrical Engineering e-mail: rklagu@ee.iitb.ac.in Webpage: http://www.ee.iitb.ac.in/~rklagu T  *IU 0I]Importance of MarketingGood products mean nothing to the company if no customer is interested in buying them. Changes in customer requirements, tastes and sense of general technology landscape is important from strategic perspective.Customer-oriented ProcessesMarketing is the most important function Selling is a small sub-function of marketing Marketing identifies needs, competitors, segments Actual job of customer contact is the selling processZ Market AnalysishDifferentiation between product features and needs (car vs. transportation, movie vs. entertainment) Differentiation between needs and markets Market is a definable group of people favourably disposed towards buying a product. Location, age, income group and other attributes of the customer help us segment the market and estimate the market segment size.ii $4 P s of MarketingProduct: Features, benefits, value offered Price: Base price, discount, bundling Place: Direct, retail, mail order, Internet Promotion: Advertisements, promotional eventsBranding Creates a unique picture in customer s mind  has recognition cues Consistently meets quality expectation Provides feeling of safety, faith, confidence, familiarity Branding is a differentiation exercise Undifferentiated products look like commodities and so get commodity prices Segmentation is to be done on demographic, geographic, economic, religious, racial linesrr Why branding is important?fInternet era: Flood of information available to a customer  TV, print media, Web, movies Attention span of a person has gone down.  Attention Economy  scarcity of attention Companies must create a unique image of their product/service so that it does not need attention Use co-branding to reduce costs44  Brand Value Some monetary value is attached to the brand consciousness. Companies spend money to create brand so it reflects in the balance sheet under intangible assets. Brand identity helps generate sales. 6Top Ten Brands (USD Bn) Ref: http://www.interbrand.com77,!Buyer Psychology`What mental processes go on in a customer s mind before he/she makes the purchase decision? People buy from sales people they like. Similarities  we like people who are like us We like those people who we cooperate with toward common goals Social proof : Provide people with evidence that others like them have made this choice that we're recommending for them Element of authority: your expertise, your background, your credentials in a particular arena. (American Dental Association) Commitment and consistency: Sales person delivers what he promises .]]'"- " >" "  h$"$((,",00H4"488B<"< Selling ModesTransaction selling: Sell only one piece and forget Relationship selling: Continued interaction, service, repeat orders Partnering: Seller becomes an integral part of the customer s operations and help them do their business wellZSelling ProcessProspecting (Cold calls) Approach (Sales pre-presentation) Sales presentation and optional demo Trial closure Determine objections Handle objections Trial closure Make offer (bid) and negotiate Close Follow-upZSales Pre-Presentation"Introduce you and your company Indulge in a brief ice-breaker Bridge from ice-breaking to the purpose of your call Do skillful fact-finding of customer s needs Summarize the information obtained Agree on a date to revisit with the proposal Thank the customer for his time Sales PresentationState your name, company, premise of your proposal Establish credibility: Company history Hand out copies of accounts list State your competitive advantages Give quality assurances and exhibit pride in your product Cater to the group s behavioural style    Sales Operations StatisticsSales call costs on an average about USD 200 Sales person makes on an average 6 calls/day It usually takes about five calls before order closure Average sales per sales person per year: USD 500K  2 M Efforts: 40 hours/week of field work and 10 hours/week of office work %Qualities of a Successful Salesperson&&!Product knowledge: features, benefits Knowledge of the company he/she represents Knowledge of competing products and industry Customer knowledge: needs, company policies Negotiating capabilities Empathy, listening skills Presentation skills Time and territory management (being organized) ""L  ` ` ̙33` 333MMM` ff3333f` f` f` 3` AU)@>?" dZ@ ?" d'Osd@   @ ` n?" dd@   @@``PR    @ ` ` p>> $`.(  $  0`8' " d RClick to edit Master text styles Second level Third level Fourth level Fifth level!     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