Marketing http://marketing365.blog Marketing As A Package Mon, 06 Nov 2017 14:25:46 +0000 en-US hourly 1 https://wordpress.org/?v=4.9 138208591 Sales Organization Structures http://marketing365.blog/sales-organization-structures/ Wed, 16 Aug 2017 12:31:42 +0000 http://marketing365.blog/?p=490 Sales Organization Structure depicts a formal relationship that exists between workers in an organization in relationship to their positions.

The following are some of the sales organization structures;

  • Functional Organizational Structure

In this structure, various departments are established on the basis of operations done such as sales departments, advertisement, sales promotion, credit, finance etc. The structure gets all the advantages of specialization.

Shareholders

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Managing Director/ CEO

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Advertising Manager Marketing Manager Sales Promotion Manager Finance Manager

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After Sales Services Manager Product Planning Manager Sales Manager

  • On The Basis of Regions

If a company has a very wide sales territory, i.e. nationally or internationally it may choose to prepare its swales organization structure on this basis.

The entire territory is subdivided into regions and a Regional Manager is appointed. The activities of the Regional Manager are subdivided and controlled by the Sales Manager. The departments of advertisement, sales promotion and marketing research are established as central departments.

Marketing Manager

Marketing Research Manager Product Development Manager Advertisement and Promotion Manager Sales Manager

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Regional Manager Region A Regional Manager Region B

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Sales Supervisors

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Salesmen

  • On the Basis of Product / Brand

In this case, when a company produces more than one product it can establish its sales organization structure on the basis of products.

Different departments are established for the different products. A Sales Manager is appointed for every product and is responsible for all the operations in the department.

The units of advertisement, sales promotion, marketing research, may be established as central departments.

Marketing Manager

Marketing Research Manager Product Planning Manager Sales Manager (Brand A) Sales Manager (Brand B)

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Salesmen Brand A Salesmen Brand B

  • On the Basis of Customers

A sales organization structure can also be prepared on the basis of the nature of the customers. Various departments are established for different customers such as the wholesale department, retail sales department, and export department. The departments of advertisement, sales promotion, marketing research, etc. can be established as central departments.

Shareholders

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Board of Directors

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Marketing Manager

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Sales Manager

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Wholesale Manager Retail Manager

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Domestic Sales Manager Foreign Sales Manager

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Sales Assistants
Salesmen

]]> 490 Sales Organization http://marketing365.blog/sales-organization/ Wed, 16 Aug 2017 09:52:51 +0000 http://marketing365.blog/?p=464 My definition to a Sales Organization is; one that carefully plans and co-ordinates towards the objective of putting a product or service in the hands of the consumers.

A Sales Organization performs various activities which are considered necessary for delivering goods and services of a company into the hands of the ultimate consumers. All these activities must be governed by some crucial principles.

Principles of a Sales Organization.

  • Goals

A sales organization must be governed by some pre-determined goals. Goals are set to measure the success of a given organization.

goal

  • Specialization

The distribution of work among the workers should be in such a way that everyone gets a job according to their ability and taste.

  • Authority

Every staffs’ authority should be well defined by the chain of command to avoid conflicts at the place of work.

  • Assignment of Work

Every worker should know what and how to do their duties assigned to them at the appropriate time.

  • Continuity

An organization should be prepared for long term operations. An organization is established to be in existence for generations or over a long time.

continuity

  • Exception

Duties and rights must be assigned to all workers so that they are able to discharge their duties successfully.

  • Unity of Command

A worker should be able to get orders and instructions from one particular executive only.

  • Unity of Direction

Plans should be well spelt out and operations of all departments should be carried out in accordance with these plans.

  • Flexibility

An organization should be prepared in order to incorporate the changes required from time to time.

flexibility

  • Scalar Chain

The relationship between one worker and the other should be clearly spelt out under normal circumstances without any short circuit.

  • Span of Control

Span of Control for all workers should be limited so that they are able to exercise effective control over the operations of a company.

  • Leadership

An organization should be able to provide the right leadership for all operations.

leadership

 

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Types of Marketing Research http://marketing365.blog/types-of-marketing-research/ Mon, 14 Aug 2017 14:10:59 +0000 http://marketing365.blog/?p=446 Descriptive or Analytical Research

It includes survey and fact finding enquiries of different kinds. The major purpose of descriptive is to describe the state of affairs as it exists at present. The main characteristics of this method is that the researcher has no control of variables.

The researcher can only report on what has happened or what is happening. In analytical research, the researcher has to use facts or information already available and analyze them in order to make a critical evaluation of the material.

descriptive

 

Applied vs Fundamental Research

Research can either be Applied or Fundamental. Applied research aims at finding resolution of an immediate problem facing the society or an industry. This research is generally conducted on a large scale basis and is expensive. As such, it is often conducted with the support of some financing agency like the national government, public corporation etc.

Fundamental research is normally concerned with generalization as well as the formulation of a theory.

Basic Research

Basic Research attempts to extend the boundaries of knowledge in any area through the discovery of new theories or principles.

It does not focus on the applications of the new knowledge to a specific problem or situation. The knowledge gained can be used to explain the existing theories.

Quantitative Research

Quantitative Research provides a numerical description of the part of population sample through a data collection process. The results of the data analyzed through this method is usually generated for the entire population.

quantitative

Qualitative Research

Qualitative Research includes designer, techniques and measures that produce the non-numeric data such as words or statements for the purpose of understanding the underlying meanings as well as patterns of situations under investigation.

qualitative

 

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Marketing Research http://marketing365.blog/marketing-research/ Thu, 10 Aug 2017 10:49:27 +0000 http://marketing365.blog/?p=438 This is the process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business’s target market, the industry as a whole, and the particular competitors you face.

Accurate and thorough information is the foundation of all successful business ventures because it provides a wealth of information about prospective and existing customers, the competition, and the industry in general. It allows business owners to determine the feasibility of a business before committing substantial resources to the venture.

Market research provides relevant data to help solve marketing challenges that a business will most likely face–an integral part of the business planning process. In fact, strategies such as market segmentation (identifying specific groups within a market) and product differentiation (creating an identity for a product or service that separates it from those of the competitors) are impossible to develop without market research.

Market research involves two types of data:

  • Primary information.

This is research you compile yourself or hire someone to gather for you.

When conducting primary research, you can gather two basic types of information: exploratory or specific.

 Exploratory research is open-ended, helps you define a specific problem, and usually involves detailed, unstructured interviews in which lengthy answers are solicited from a small group of respondents.

Specific research, on the other hand, is precise in scope and is used to solve a problem that exploratory research has identified. Interviews are structured and formal in approach. Of the two, specific research is the more expensive.

When conducting primary research using your own resources, first decide how you’ll question your targeted group: by direct mail, telephone, or personal interviews.

  • Secondary information.

 This type of research is already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry. Most of the research you gather will most likely be secondary.

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Control http://marketing365.blog/control/ Sun, 06 Aug 2017 02:03:47 +0000 http://marketing365.blog/?p=415 Control is a mechanism to protect strategic plans during implantation. It is aimed at detecting and preempting the inevitable problems that accompany implantation.

The following principles ensure effective control;

  1. Involvement

This is achieved by encouraging participation in the process. Management can achieve desired results via consultation e.g. staff could contribute towards setting targets.

Employee-Involvement.jpg

  1. Target Setting

There are two important factors;

  • The target criteria should be objective and measurable. How this is assessed needs to be communicated and agreed in advance.
  • Target needs to be achieved but should be challenging.

target.jpg

  1. Focus

Recognize the difference between the symptoms and source of a problem. Treating symptoms may be expensive than eliminating the problem itself.

  1. Effectiveness

The tendency exists to measure efficiency as opposed to effectiveness. Efficiency is usage and productivity of assets. Effectiveness is about doing the right things. Ideally we want measure of efficiency applied to areas of effectiveness to ensure that what is being measured is the right thing and what gets measured is done.

effectiveness.jpg

  1. Management by exception

Management attention is directed to areas of need. Identifying what constitutes an exception to the norm is a useful exercise in its own might. The process involves setting tolerance and benchmarks for normal operations.

Develop tolerance zones and take corrective action if results fall outside this zone.

  1. Action

Good control systems promote action. Such systems do not deject problems, they solve problems. For example extra resource could be made available to deal with a backlog or a process or procedure could be redesigned to make it more effective.

action

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Business Environment http://marketing365.blog/business-environment/ http://marketing365.blog/business-environment/#comments Sun, 06 Aug 2017 00:55:46 +0000 http://marketing365.blog/?p=387 I would say business environment is a marketing term that refers to factors and forces that affect a firm’s ability to build and maintain successful customer relationships.

There are two factors of the business environment.

  1. Internal Environmental Factors.

These are environmental factors that a company has control over them. This includes all departments, such as management, finance, research and development, purchasing, operations and accounting.

organization- dept

Each of these departments influences marketing decisions. For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budget in customer dissatisfaction.

Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship.

  1. External Environmental Factors.

These are environmental factors that a company has no control over them. Some of these factors include;

  • Macro-Economic Factors

These are factors that affect the entire economy not just your organization. Examples include things like interest rates, inflation, currency exchange rates, etc.

  • Micro-Economic Factors

These are factors that can affect your organization, such as distribution chain, market size, demand, supply, and the number and strength of your competition.

  • Technological Factors

Technology can either contribute to overall economic growth or hurt your business. Some technological innovations can increase your productivity and profit margins.

tech.jpg

  • Political / Legal Environment

Legislation defines the regulatory environment within which both local and foreign firms must operate. These environments presents a firm with strategic opportunities as well as threats.

New regulations and deregulations may open new markets or the political environment can destabilize an industry.

  • Physical Environment

Special conditions such as extreme or cold temperatures or high humidity can offer the design of conventional products. Business can turn problems into opportunities such as by investing in research to find ways to save energy in heating or lighting. New energy sources such as windmill can exploit wind energy.

wind-mill

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New Product Development Stages. http://marketing365.blog/new-product-development-stages/ Fri, 04 Aug 2017 19:13:44 +0000 http://marketing365.blog/?p=368 Before a product is launched into the market there are several stages that it has to go through.

  1. Idea Generation.

A new product development process starts with the search for ideas. A pool of new product idea is generated in the hope that at least one or a few of them will be developed into a successful product or service. Top management should;

  • Define the product and markets to emphasize on.
  • State the new products objectives.
  • State the amount of effort to devote in developing original products, modifying the existing ones and imitating competitors’ products.

Sources of new product ideas can be derived from many sources including;

  • Customers
  • Scientists
  • Competitors
  • Top Management
  • Advertising agencies
  • Marketing research firms
  • Company sales people and dealers

idea generation

  1. Idea Screening

The purpose of idea screening is too reduce the number of ideas and drop poor ideas as early as possible. This is the first phase of idea evaluation and pruning.  In this stage a company must avoid

  • A Go Error

This occurs when a company permit a bad idea to move into product development and commercialization.

  • A Drop Error

This occurs when a company dismisses an otherwise good idea.

idea screening

  1. Concept Development and Resting.

In this stage the management tries to find a good concept for the product that consumers would like to try. Attractive ideas are refined into testable product concepts.

  1. Marketing-Strategy Development

After testing the new product, the Manager must develop a preliminary marketing strategy plan for introducing the new product into the market. The plan consists of three parts.

  • The first part describes the target market’s size, structure the planned product positioning, market share, and profit goals sought in the first few years.
  • The second part outlines the planned price, distribution strategy and marketing budget for the first year.
  • The third part describes the long-term sales and profit, goals and marketing mix strategy over time. This stage is therefore concerned with finding a cost effective and affordable marketing strategy.
  1. Business Analysis

In this stage future sales, profits and the rate of return for the proposed new product are projected. They also assess whether they are in line with the company’s objectives.

business analysis

  1. Product Development

In this stage the product is developed and the company finds out whether the product is technically feasible. Weak spots are rectified where possible. Problems of brand naming and packaging are also faced and resolved.

  1. Test Marketing

This entails introducing the product in a small scale and in pre-selected environments. This is where the company gets to know whether the product will succeed or not.

  1. Commercialization

Market testing gives the management enough information to make a final decision about whether to launch the new product. In commercialization the company faces the largest cost in building or renting a full scale manufacturing facility, advertising, promotion and distribution.

  • comm,e
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SWOT Analysis http://marketing365.blog/swot-analysis/ Fri, 04 Aug 2017 08:27:51 +0000 http://marketing365.blog/?p=347 SWOT Analysis is  consisted in a business strength, weakness, opportunity and threats that a it has to face in market. SWOT Analysis is a tool for auditing an organization and its environment. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (Strength and Weakness) and external issues (Opportunities and Threats). Once this is completed, SWOT analysis determines if the information indicates something that will assist the firm in accomplishing its objectives and obstacles that must be overcome or minimized to achieve desired results.

Strength.

A well-developed listing of strength should be able to answer a couple of questions. What are the firm’s advantages? What does the firm do well?

A strength could be;

  • You specialist marketing expertise
  • A new innovative product or service
  • Location of your business
  • Any other aspect of your business that adds value to your product or service

Weakness.

A customer-focused SWOT may also uncover a firm’s potential weakness. Although some weakness may be harmless, those that relate to specific customer needs should be minimized if at all possible.

A weakness could be;

  • Lack of marketing expertise
  • Location of your business
  • Poor quality goods and services
  • Damaged reputation.

The role of the internal portion of SWOT is to determine whether resources are available or lacking so that strengths and weaknesses can be identified from this.

weakness

Opportunities and Threats.

Managers who are caught up in developing strengths and capabilities may ignore the external environment. A mistake of this magnitude could lead to an efficient organization that is no longer effective when changes in the external environment prohibits the firm’s ability to deliver value to its targeted customer segments. These changes can occur in the rate of overall market growth hand in the competitive economic, political, legal / technological or social-cultural environments.

Opportunities could be;

  • A developing market such as the internet
  • Merges, joint ventures or strategic alliance
  • Anew international market
  • A market vacated by an ineffective competition
  • Moving into new market segments that offer improved profits

oppotunity.png

A threat could be;

  • A new competitor in your home market
  • Price wars with competitors
  • A competitor has new innovative product or service
  • Taxation is introduced on your product or service
  • Competitors have superior access to channels of distribution

tax.png

 

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Pricing Decision http://marketing365.blog/pricing-decision/ Thu, 03 Aug 2017 07:28:03 +0000 http://marketing365.blog/?p=343 I define price as the value placed on a good or service by customers at some point in time. It is a measure of what must be exchanged in order to obtain a particular good. Price goes by many names, e g rent, salary, wages, fees, fare, etc. Price is one of the most important elements in determining company market share and profitability. It is the only element in the marketing mix that produces revenue. The other elements represents cost.

Setting the Price.

Pricing is a problem when firms are setting the price for the first time. There are a number of factors to be considered in setting a price for the first time.

  1. Pricing Objectives.

Every firm should decide upon the objectives of pricing before determining the price itself. These objectives include achieving target return on investments. It is adopted by many companies due to the increased awareness of inter-relationship between profit, capital and investment.

  1. Maintaining or Improving Market Share.

Market share is a good indicator of a firm’s success. Most firms are satisfied when their market share is maintained or expand.

market share

  1. Meeting or Preventing the Competition.

Pricing can meet or even prevent competition if a company is a price leader in the industry. It may set prices designed to discourage new competitors from entering the market. In Product introduction low prices are set to discourage competition.

  1. Maximization of Profits.

This is achieved by setting high prices to reap maximum possible profits or offering the product at a low price to attract buyers’ attention or stimulate the sales of other goods.

profit maximization

5.  Survival.

The fundamental pricing objective is survival. Most organizations will tolerate short-term losses interval upheaval in order to continue existing.

survival.jpg

  1. Short-term Profit Maximization.

A very high price is set initially when a product is introduced. The aim is to earn high profits in a short time and recover costs quickly. The price is later lowered to appeal to other segments of the market.

 

 

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Why New Products Fail http://marketing365.blog/why-new-products-fail/ Sun, 30 Jul 2017 02:36:57 +0000 http://marketing365.blog/?p=322 For a new product to succeed, several key issues have to be factored. Marketers have the obligation of ensuring that the right steps to ensure the success of the new product is achieved in record time. Here are some reasons why a new product fail to pick in the market;

Poor Marketing Research.

This comes as a result of not judging well what products the market wants, overestimating potential sales the new product and lack of knowledge of consumers buying motives and habits.

Technical Problems.

This can be as a result of either coming up with poor quality product that fails to function to the expectations of the customers or coming up with products that are too complicated for the customers.

Poor Timing in Product Production

This can be as a result of delays in bringing the product to the market or rushing the product too quickly to the market. Proper timing for product delivery to the market is key to its success.

delay

Competition.

Competition in the market is very healthy as it guides the marketer to know their position in the market. When competition is so stiff, a new product can suffer from substantial reduction in market share.

Overpricing.

Price sensitive customers will be shy to buy a product whose price is way beyond their limit. Once a product is shunned due to price it is doomed.

pricing

Lack of Promotions.

For a new product to excel marketers have to put into consideration the importance of promotions and advertising the new product to create awareness and educate consumers.

Poor Positioning.

Incorrectly positioning of the product in the market can result to failure of having enough customers to buy the product. The product must be positioned at the “eye level” in the market for customers to see it.

Changes in customers’ Tastes and Preferences.

The change is likely to shift the customers to other products leading to poor sales and failure of the product is eminent.

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