Since then, the company’s annual sales have grown. One of the most valuable principals, according to Jack, was the GIGS-recommended Customer-Relationship Management (CRM) approach that tracks activities ND results. It improved communication processes among management, clarified expectations, and kept the focus on priorities. Jack explains, CRM approach could be a valuable tool for focusing on and tracking the most critical measurements across our entire business.
Together with my management team, we Isolated and weighted 20 key measurements that would have the biggest impact in improving our business results. Those measurements became our core focus for the next year. We post charts that depict progress in achieving our metrics to maintain our visual focus. And at ACH monthly management meeting, the manager whose area has attained the highest sales during the previous month earns the Achievement Award and a 520 gift certificate.
Don’t waste your time!
Order your assignment!
PEPCO completed the most profitable year 2012 in its history-??38% higher than previous year . Plus, the most recent quarter was profitable-??an exceptional achievement considering that first quarter historically has been not only its slowest of the year, but actually unprofitable. What’s more, distributor revenues are up 21% over last year. GIGS has provided PEPCO with sales management principles that not only improve sales exults, but also when implemented across the entire organization improve overall growth and results.
The main advantages and disadvantages of personal selling can be summarized as follows: Advantages Disadvantages High customer attention Message is customized Interactivity Persuasive impact Potential for development of relationship Adapt able Opportunity to close the sale High cost Labor intensive Expensive Can only reach a limited number of customers point-of-sale merchandising can be said to be a specialist form Of personal selling. POS merchandising involves face-to-face contact between sales representatives of producers and the retail trade.
A merchandiser will visit a range of suitable retail premises in his/her area and encourage the retailer to stock products from a range. The visit also provides the opportunity for the merchandiser to check on stock levels and to check whether the product is being displayed optimally. As Jack Explains that CRM approach could be a valuable tool for focusing on and tracking the most critical measurements across our entire business.. And at each monthly management meeting, the manager whose area has attained the highest sales during the previous month earns the Achievement Award and a $20 gift certificate. 2 Illustrate the buyer behavior process you (as a buyer) would go through if you are approached by a personal seller trying to sell you PEPCO products. Research suggests that customers go through a five-stage decision-making process in any purchase. This is summarized in the diagram below: This model is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice! ) The model implies that customers pass through all stages in every purchase.
However, in more routine purchases, customers often skip or reverse some of the stages. The buying process starts with need recognition. A customer can obtain information from several sources: ; Personal sources: family, friends, neighbors etc ; Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays ; Public sources: newspapers, radio, television, consumer organizations; specialist magazines ; Experiential sources: handling examining, using the product Why should a marketer need to understand the customer evaluation process?
The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations. In high- involvement decisions, the marketer needs to provide a good deal of information about the positive consequences of buying. The sales force may need to stress the important attributes of the product, the advantages compared with the competition; and maybe even encourage “trial” or “sampling” of the product in the hope of securing the sale.
Post-purchase evaluation – Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common or customers to experience concerns after making a purchase decision. This arises from a concept that is known as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. 1. 3 Analyses the roles of sales team of PEPCO.
Creating concepts for new products In order for PEPCO to create new products or to prolong consumers’ interest in existing products, the Marketing division analyses consumer needs to generate new ideas. They then discuss these with Sales to ensure that they believe customers will buy them. Additionally, Sales may identify consumer needs by working closely with customers and will then communicate these needs to Marketing. Communicating the final concept to Sales Marketing and Category Development equip Sales with a sales rationale to present to their customers.
The Sales and the Point Of purchase deep rodents investigate methods of ensuring the product is prominently displayed in the stores. When compiled, this package becomes Point of Purchase material. Presenting the opportunity to customers Any new PEPCO product or development will need to be ‘sold’ to customers before they will agree to stock it on their shelves. To do this the Sales team invite all the key decision makers within their customers’ organization (e. G. Buyers, merchandisers, supply chain managers) to a meeting, during which they will outline the benefits of the new product.
It is vitally important that the customer sees the benefit of the product to them and to the consumer. Market research statistics will usually play a key role in illustrating the potential of the product along with persuasive rationales from the Sales am. During the course of the meeting, the sales team will explain the key features of the product, present their evidence to show consumer need and will attempt to show how stocking the product will encourage purchase The brand name could be a benefit to the customer and may persuade them to stock the item.
Once buyers have decided that they would like to stock PEPCO products, a price is negotiated as well as an in-store location and plans for special promotions. Year plan for the product Once the buyer has agreed to stock a product, PEPCO Account Managers work tit Category Planning and Finance to create a promotional plan and sales targets for the year for that product. Working with Supply Chain Sales work closely with the Supply Chain function to inform them of estimated sales volumes in order to enable them to instruct the factory to manufacture the quantity of product required.
These sales predictions are constantly reviewed in the light of changing conditions to ensure their accuracy as the year progresses. PEPCO looks for high volume of products sold because the higher the volume of sales, the lower the unit cost as illustrated in the diagram. Evaluation An important part of the Account Manager’s role is to constantly evaluate the performance of the product within customers’ stores.
Aspects that are evaluated include the sale of stock compared with internal forecasts, profit made, the analysis of Pepco share of the market for a product and customer feedback. This information is then used to create future plans, identify what worked well and what could be improved for next time. 2. 1 Discuss the principles of personal selling practiced at PEPCO Principles of Personal Selling:- Sales Professionalism Negotiation Relationship Marketing
SALES PROFESSIONALISM All Sales-training Approaches try to convert a salesperson from a passive order taker into an active order getter Order Taker:- That Customers know their own needs Resend attempts to influence them Prefer courteous and self-effacing salesperson Two Basic become a order getter: Sales-oriented Approach Stresses high pressure techniques Customer-oriented approach Stresses customer problem solving No approach works best in all circumstances NEGOTIATIONS Much Business-to-business selling involves negotiating skills The two parties need to reach agreement 1 )Price 2)Others term of sales
Salesperson need to win without making deep concessions that will hurt profitability There are 2 exchanges in marketing 1)Routine exchange: administered program of pricing and distribution 2)Negotiated exchange: price and other term area set via bargaining behavior RELATIONSHIP MARKETING The principles of personal selling and negotiation thus far described are transaction oriented because their purpose is to close a specific sale.
The company must build a long-term supplier customer relationship by demonstrating that it has the capabilities to serve the account’s needs in a superior way over the long run. The company must build relationship marketing rather than transaction marketing, because larger customers are often global and prefer suppliers that can : 1 . Sell and deliver a coordinated set of products and services to many locations. 2. Quickly solve problems that arise in different locations. 3. Work closely with customer teams to improve products and processes.
To succeed in winning and maintaining accounts in today’s demanding environment, company must : 1. Encourage sales teamwork. 2. Reward it with appropriate compensation for work on shared accounts 3. Establish better goals 4. Measured for their sales force . Reinforce the importance of teamwork in their training programs The organization will begin to focus as much on managing its customers as on managing its products. 2. 2 Investigate the stages in the personal selling process when carrying out sales presentations for PEPCO products.
Steps in personal Selling process Personal Selling consists of the following steps. 1 . Pre-sale preparation: The first step in personal selling is the selection, training and motivation of salesperson. The salesperson must be fully familiar with the product, the firm, the market and the selling techniques. They should be well-informed about the competitor’s products and the degree Of competition. They should also be acquainted with the motives and behavior of prospective buyers. 2.
Prospecting : It refers to locating or searching out prospective buyers who have the need for the product and the ability to buy it. Potential customers may be spotted through observation, enquiry and analysis of records of existing customers. Social contacts, business associations and dealers can be helpful in the identification of potential buyers. 3. Approaching : Before calling on the prospects, the salesperson should fully earn their number, needs, habits, spending capacity, motives, etc.
Such knowledge helps in selecting the right sales appeal. After such learning, the salesperson should approach the customer in a polite and dignified way. He should introduce himself and his product to the customer. He should greet the customer with a smile and make him feel at home. He should introduce himself and his product to the customer. 4. Presentation : The presentation should be matched with the attitude of the prospect so that the salesman can continuously hold his attention and create interest in the product.