Micro-Marketing

Micro-marketing is the performance of activities that seek

to accomplish an organization's objectives by anticipating
customer or client needs and directing a flow of need
satisfying goods and services from producer to customer or
client. Key elements include:
Applies to profit and nonprofit organisations.
* Goods beyond just persuading customers to buy.
* Begins with customer needs.
* Marketing only one of many key management functions.
* Builds a relationship with the customer.
Macro-Marketing
Macro-marketing is a social process that directs an
economy's flow of goods and services from
producers to consumers in a way that effectively
matches supply and demand and accomplishes the
objectives of society. Key elements include:
● Identifying the kind of macro-marketing system in
place
● Assessing its effectiveness and fairness
(recognizing that "fair“ is culturally determined).
Key Concepts of Macro-Marketing Systems Development
Pure Subsistence Economy. Under this system, every family produces all they
need. No exchanges occur and no macro-marketing system exists.
Markets. When families begin to produce some things more than they need of
some things and develop new need or want for things they do not produce, the
concept of a market evolves. Initially, the family simply trades or barters some of
their excess items for the excess items offered by another family, later a central
market develops where the families go to barter more conveniently.
Middlemen. Central markets still lake time. Among the first macro-marketing
system elements to emerge is the middleman - a person who specializes in trade
rather than production. Because of the expertise of this person, a "something" is
added to the exchange process. More formally, by bringing buyers and sellers (or
traders) together more efficiently, middlemen (intermediaries) contribute time and
place utility.
Monetary System. Very quickly now, people realize the need to standardize trade.
Bartering takes a lot of time and limits exchanges to specific product forms for
both buyer and seller. The introduction of money allows the middleman to expand
services, create inventories, and offer inducements for even greater choice in the
central market.
Sales Promotion Objectives:
• Knowing the advantages and disadvantages of the promotion
methods.
• Understanding the integrated marketing consumption concept.
• Understanding the importance of promotion objectives.
• Understanding how direct response promotion is helping
marketers to develop more targets blends.
• Knowing how the communication process affects promotion
planning.
• Understanding how customer initiated interactive communication
different.
• Understanding how to determine how much to spend on
promotion methods.
The Importance and Role of Personal Selling

Marketing managers must decide how much and what kind of

personal selling is appropriate for each marketing mix.
Personal Selling Requires Strategy Decisions. As part of their
marketing strategy marketing managers must decide:
(1) how many salespeople they need. (2) what kind of salespeople
they need. (3) what kind of sales presentation to use. (4) how to
select and train salespeople, and (5) how to supervise and motivate
them.
Personal Selling is Important. The ability to sell products and
services is Important to all companies and absolutely critical to
some. Salespeople must be able to meet both customer needs and
company expectations. It's also economically Important: 1 of 10
people employed in the U.S. is employed in sales.
Selling is Helping. Salespeople don't Just sell, they help customers
make good Buying decisions. In working to meet customer needs
and matching them with appropriate products, salespeople build
lasting relationships with customers.
Salespeople are the Company. To many customers, the salesperson
is the company. How that person behaves is -all the customer will
ever know about the company.
Salespeople Provide feedback. The perceptive salesperson
provides feedback to the company on what "customer-; think, feel,
and want.
Salespeople Can be Strategy Planners. Because they know their
territory arid their market belter than anyone else, salespeople
make strategy decisions everyday about how to manipulate
promotional mix elements to fit the needs of their customers.
Types of Opportunities In pharmaceutical marketing:
Market penetration: Market penetration means trying to
increase sales of a firm's present products in its present
markets. This typically calls for a more aggressive
marketing mix to increase the use or rate of purchase
among current customers or to attract competitors'
customers or nonusers to the company's products.
Market development: Market development means trying
to increase sales by selling present products in new
markets. This typo of opportunity can focus on either
opening up new channels of distribution, as in going
international (or the first time, or on finding new uses for
the product that will logically extend into new consumer
markets.
Product development: Product development means
offering new or improved products to present markets. In
response to the needs of present markets, this type of
opportunity may add or modify product features, create
several quality levels, or add more types and/or sizes of
products to provide the present market with more
choices.
Diversification: Diversification means moving into totally
different lines of business. Diversification involves both
new products and new markets and presents the most
challenging opportunities. Because of this dual
difference, diversification involves higher risks.
Basic Sales Tasks
Order-Getting: Order-getting means seeking possible buyers with a
well-organized sales presentation designed to sell a good, service, or
idea. Order getters are concerned with establishing effective
relationships with new customers and developing new business. Order
getters locus on results -- not style. As the primary source of product
information for the potential customer, order getters must be experts
about every aspect of their products.
Order-Taking Order-taking is the routine completion of sales made
regularly to target customers. Order takers sell to regular customers,
completing sales transactions and maintaining relationships. Order
takers, especially in light of information technology and computerized
links between buyers and sellers, need to be highly trained competent
individuals. Order-taking activities can make the difference between
keeping or, loosing a customer.
Supporting: Supporting salespeople help the order-oriented
salespeople but they don't try to get orders themselves. there are two
types:
o Missionary Salespeople. These are supporting sales people who
work for producers by calling on their middlemen and customers. They
create goodwill and provide training and information.
o Technical Specialists. These people provide technical know-how in
support of order-oriented salespeople.
Approaches to Sales Presentations
Prepared Approach. Approach uses a memorized presentation that is not
adapted to each individual customer. It is often used when the
prospective sale 1s low in value, only a short presentation is possible, or
the salesperson is not yet very skilled. This "canned" approach has the
virtue of standardizing the presentation but suffers from the weakness
of being rigid and treating all customers alike.
Consultative Selling Approach. This approach involves developing a good
understanding of the individual -customer's needs before trying to close
the sale. After making general opening comments, the salesperson asks
the customer questions and listens carefully to the answers to identify
unique. customer needs. This is a problem-solving orientation and the
salesperson acts as a "consultant" to help the customer solve his or her
needs.
Selling Formula Approach. This approach starts out with a rehearsed
presentation. perhaps from memory or extemporaneously from an
outline, but moves toward more customer interaction, questioning, and
participation during the course of the presentation.
Allowances in sales promotion:

Advertising Allowances: These are price reductions given to firms

in the channel to encourage them to advertise or otherwise
promote the supplier's products locally.
Stocking Allowances: Also called slotting allowances, these are
given to middlemen to get shelf space for a product.
Push Money Allowances: In support of a pushing effort,
manufacturers or wholesalers give money to retailers to be used as
incentives for their salesclerks to aggressively push the targeted
items.
Trade-in Allowances: The customer receives a price reduction for
used products when similar new products are bought.
Steps in the Personal Selling Process :
Prospecting: Prospecting focuses on identifying new customers.
But at this same level in the process, the salesperson needs to
assess the needs of established customers and set priorities.
Without clear priorities, the salesperson will undoubtedly make
inefficient use of his or her time. Also, because of multiple buying
influence, a salesperson may have to do some hard detective work
to find the real purchase decision makers.
•Select Target Customer: Selecting target customers involves
identifying factors for success --●what the customer needs ● what
the company offers, and ● how will the salesperson can find a good
match. Because some potential customers are more attractive to
the company than others, a company often develops a grading
scheme to rank potential customers.
Plan Sales Presentation: The sales presentation is the salesperson's
effort to make a sale or address a customer's problem. Before
making the presentation, the salesperson should learn as much
about the client as possible, even who makes the purchase
decisions and the key criteria they use. Better information allows
the salesperson to custom-design a presentation to match specific
customer needs.
Make Sales Presentation: Salespeople usually choose among one
or more approaches when making "the sales" presentation.
Close Sale: Presentations should end with a close -- here the
salesperson asks for the customer's business. The best salespeople
learn how to close effectively.
Follow-up: Whether the presentation ends in a sale or a request
for more Information, the salesperson should take care to contact
the customer again soon after the call.