1 CHAPTER 11 SALES, DISTRIBUTION, AND CUSTOMER RELATIONSHIP MANAGEMENT Avon Example?change to meet customers: Personal selling-> Internet sales->New products for younger women 1. DISTRIBUTION AND THE SALE OF PRODUCTS TO CUSTOMERS a. Types of distribution channels i. Company owned or licensed distributors: --ads --financing/delivery --service and support ii. Wholesalers?resell to other companies/stores +cheaper -lose control of effective ads/service -they sell competitor?s products too! iii. Retailers?sell to customers --could get from wholesalers --could get from manufacturer 2 Wal-mart, Dole --could use online retail store iv. Direct distribution --?factory direct? ??cut out ?middle-man?? --buy your books from publisher?s website?! b. How much of which??called ?distribution MIX?-- c. Factors affecting the choice of distribution mix (see chart ?choice of distribution mix? in book) i. Product characteristics? 1. Complex?more sales promotion/trained sales folks, distributors, ?close to customer? (computer rep. vs. banana rep.) 2. Standard?wholesaler, retailer, or direct?ads > than personal 3 sales ii. Importance of the purchase to the final customer 1. Very?personal sales force 2. Not very?retail/direct iii. The need to customize the product 1. much?personal sales force 2. little?retail/direct iv. [outsourcing?good or bad??low tech outsourced, high-tech created here!] d. Gaining a competitive advantage with the right distribution mix --Avon is?Revlon isn?t i. The impact of IT --customize it your own ?Beemer? --use all that ?self-entered? data (phone # at Kroger/Supercuts gives them 4 your address, amount purchased..time of day.. 2. APPROACHES TO SALES AND SELLING (as opposed to distribution-earlier) a. Selling complex products i. Technical selling?detailed tech knowledge?to sell ii. Missionary selling?product info., goodwill,?for future sale iii. Creative selling?tech knowledge + pers. Experience??we can do it? somehow!? b. Selling standardized products i. Trade selling?company to company?not to consumers ii. Retail selling?to final customer iii. Telemarketing-persuading over phone iv. [telemarketing?do not callbarb2rightdoor-to- door] 5 3. 6 STAGES IN THE SELLING PROCESS (?six stages? chart in book) a. Prospecting for customers --their website, their customers, who they now buy from, who decides, ?why ours is better? case? b. Making the initial contact --?low hanging fruit??? --?cold calls? c. The sales presentation --see chapter 6 --be enthusiastic --give them the details THEY want to hear --don?t give up/know when to give up! d. Handling objections --know what questions to expect (list?) --?yes?but?? e. Closing the sale --know when to ask the question --know what to ?throw in?.. 6 --offer extras, assuming ?yes? f. After-sales follow-up and info gathering 7 4. CUSTOMER RELATIONSHIP MANAGEMENT (?CRM??an IT system)?3 parts (1) CRM and sales?shares product and customer info.?sales rep. eval., pricing, financing. Order processing. (2) CRM and after-sales support? computerized help/customer feedback? Mariott, Taco Bell, Supercuts, 1800- 2advise i. [healthcare price quotes: slow company systembarb2rightfast agent web-based system] (3) CRM and marketing --computerized market research and segments. --do current ads work? (?bring in this coupon?) --differentiation/segmentation?know when it?s changing! lou squyres Chapter 11 -- outline
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