c





 


  (IMC) is the coordination and integration of all marketing
communication tools, avenues, functions and sources within a company into a seamless program that
maximizes the impact on consumers and other end users at a minimal cost.[1]

 
 


   
 


? Competitors

? Jpportunities

? aarget markets

? Customers

? xroduct positioning



 


 



? Ôevelop brand awareness

? Increase category demand

? Change customer belief or attitude

? nhance purchase actions

? ncourage repeat purchases

? ëuild customer traffic

? nhance firm image

? Increase market share

? Increase sales

? einforce purchase decisions



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Integrated marketing communications (IMC) is a process for managing customer relationships that drive
brand value primarily through communication efforts. Such efforts often include cross-functional
processes that create and nourish profitable relationships with customers and other stakeholders by
strategically controlling or influencing all messages sent to these groups and encouraging data-driven,
purposeful dialog with them. IMC includes the coordination and integration of all marketing
communication tools, avenues, and sources within a company into a seamless program in order to
maximize the impact on end users at a minimal cost. ahis integration affects all firm's business-to-
business, marketing channel, customer-focused, and internally directed communications.[2]



c  


? ahe Foundation - corporate image and brand management; buyer behavior; promotions
opportunity analysis.

? Ñdvertising aools - advertising management, advertising design: theoretical frameworks and
types of appeals; advertising design: message strategies and executional frameworks; advertising
media selection. Ñdvertising also reinforces brand and firm image.[3]

? xromotional aools - trade promotions; consumer promotions; personal selling, database
marketing, and customer relations management; public relations and sponsorship programs.

? Integration aools - Internet Marketing; IMC for small business and entrepreneurial ventures;
evaluating and integrated marketing program.[4]

 


  

ahe Internet has changed the way business is done in the current world. ahe variables of segmentation,
targeting and positioning are addressed differently. ahe way new products and services are marketed have
changed even though the aim of business in bringing economic and social values remain unchanged.
Indeed, the bottom line of increasing revenue and profit are still the same. Marketing has evolved to more
of connectedness, due to the new characteristics brought in by the Internet. Marketing was once seen as a
one way, with firms broadcasting their offerings and value proposition. Now it is seen more and more as a
conversation between marketers and customers.[5] Marketing efforts incorporate the "marketing mix".
xromotion is one element of marketing mix. xromotional activities include advertising (by using different
media), sales promotion (sales and trades promotion), and personal selling activities. It also includes
Internet marketing, sponsorship marketing, direct marketing, database marketing and public relations.
Integration of all these promotional tools, along with other components of marketing mix, is a way to gain
an edge over a competitor.

ahe starting point of the IMC process is the marketing mix that includes different types of marketing,
advertising, and sales efforts. Without a complete IMC plan there is no integration or harmony between
client and customers. ahe goal of an organization is to create and maintain communication throughout its
own employees and throughout its customers.

Integrated marketing is based on a master marketing plan. ahis plan should coordinate efforts in all
components of the marketing mix. Ñ marketing plan consists on the following steps:[6]

1.? Situation analysis

2.? Marketing objectives
3.? Marketing budget

Integrated marketing communications aims to ensure consistency of message and the complementary use
of media. ahe concept includes online and offline marketing channels. Jnline marketing channels include
any e-marketing campaigns or programs, from search engine optimization (SJ), pay-per-click, affiliate,
email, banner to latest web related channels for webinar, blog, micro-blogging, SS, podcast, Internet
adio, and Internet a . Jffline marketing channels are traditional print (newspaper, magazine), mail
order, public relations, industry relations, billboard, traditional radio, and television. Ñ company develops
its integrated marketing communication programmer using all the elements of the marketing mix
(product, price, place, and promotion). Integrated marketing communications plans are vital to achieving
success. ahe reasons for their importance begin with the explosion of information technologies. Channel
power has shifted from manufacturers to retailers to consumers.

Using outside-in thinking, Integrated Marketing Communications is a data-driven approach that focuses
on identifying consumer insights and developing a strategy with the right (online and offline
combination) channels to forge a stronger brand-consumer relationship. ahis involves knowing the right
touch points to use to reach consumers and understanding how and where they consume different types of
media. egression analysis and customer lifetime value are key data elements in this approach.

c 
 c

Several shifts in the advertising and media industry have caused IMC to develop into a primary strategy
for marketers:

1.? From media advertising to multiple forms of communication.

2.? From mass media to more specialized (niche) media, which are centered on specific target
audiences.
 3.? From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market.
4.? From general-focus advertising and marketing to data-based marketing.
5.? From low agency accountability to greater agency accountability, particularly in advertising.
6.? From traditional compensation to performance-based compensation (increased sales or benefits to
the company).
7.? From limited Internet access to 24/7 Internet availability and access to goods and services.



? Not xJÔUCa, but CJNSUM

You have to understand what the consumer's wants and needs are. aimes have changed and you can no
longer sell whatever you can make. ahe product characteristics have to match the specifics of what
someone wants to buy. Ñnd part of what the consumer is buying is the personal "buying experience."

? Not xIC, but CJSa

Understand the consumer's cost to satisfy the want or need. ahe product price may be only one part of the
consumer's cost structure. Jften it is the cost of time to drive somewhere, the cost of conscience of what
you buy, the cost of guilt for not treating the kids, etc.

? Not x
ÑC, but CJN NINC

Ñs above, turn the standard logic around. ahink convenience of the buying experience and then relate that
to a delivery mechanism. Consider all possible definitions of "convenience" as it relates to satisfying the
consumer's wants and needs. Convenience may include aspects of the physical or virtual location, access
ease, transaction service time, and hours of availability.

? Not xJMJaIJN, but CJMMUNICÑaIJN

Communicate, communicate, and communicate. Many mediums working together to present a unified
message with a feedback mechanism to make the communication two-way. Ñnd be sure to include an
understanding of non-traditional mediums, such as word of mouth and how it can influence your position
in the consumer's mind. How many ways can a customer hear (or see) the same message through the
course of the day, each message reinforcing the earlier images? [7]



 


  


ahe goal of selecting the elements of proposed integrated marketing communications is to create a
campaign that is effective and consistent across media platforms. Some marketers may want only ads with
greatest breadth of appeal: the executions that, when combined, provide the greatest number of attention-
getting, branded, and motivational moments. Jthers may only want ads with the greatest depth of appeal:
the ads with the greatest number of attention-getting, branded, and motivational points within each.

Ñlthough integrated marketing communications is more than just an advertising campaign, the bulk of
marketing dollars is spent on the creation and distribution of advertisements. Hence, the bulk of the
research budget is also spent on these elements of the campaign. Jnce the key marketing pieces have
been tested, the researched elements can then be applied to other contact points: letterhead, packaging,
logistics, customer service training, and more, to complete the IMC cycle.
Jne common type of integrated marketing communication is personal selling. xersonal selling can be
defined as "face to face selling in which a seller attempts to persuade a buyer to make a purchase."

 

  


! 


Ñ major task that guides the way in creating an effective Integrated Marketing Communications plan is
the promotions opportunity analysis. ³Ñ promotions opportunity analysis is the process marketers use to
identify target audiences for a company¶s goods and services and the communication strategies needed to
reach these audiences.´ Ñ message sent by a marketer has a greater likelihood of achieving the intended
results if the marketer has performed a good analysis and possesses accurate information pertaining to the
target audience. ahere are five steps in developing a promotion.

"!#"$  %c &

Sales promotion is one part of the promotional mix that is becoming an important tool in Integrated
Marketing Communication. ahis marketing strategy help boost sales.

Sales promotion is an important tool in Integrated Marketing Communication. It provides several distinct
benefits in the achievement of company objectives that may account for it becoming one of the fastest
growing IMC tools. It is one of the four aspects of promotional mix. Ñdvertising, personal selling, and
publicity/public relations are the other three.

'" 

 

First, they effectively increase the level of company¶s profits because they allow price discrimination.
ahis way, sellers can sell their products at a lower price without incurring a loss.

Second, sales promotions can influence trade and customer behavior. ahere are different purposes for
doing sales promotions. It could be to increase the number of customers, boost sales, attract new
customers, to compete effectively or reward loyal customers.

" 

 "




Jne of the trademarks of sales promotions is in providing incentives to satisfy the needs of consumers.
ahis growth in marketing strategy is spurred by the changing attitudes among marketers. Sales promotion
strategies employed by firms to attract customers include:

1. xrice discrimination ± promotions allow companies to use price discrimination by charging different
prices to different customers depending on the price sensitivity of the said target market. Coupons and
special prices, for instance, are directed to the price-sensitive consumers of the market who are attracted
to such sales promotion strategy. Money-off strategies can be readily implemented. ahe impact of this
strategy is huge because it is very appealing to all kinds of consumers.

2. Coupons ± this is one way of providing money-off offers to buyers. ahe coupon could be found in the
manufacturer¶s product or using other means such as magazines and newspapers. Some use door-to-door
distribution of coupons.
3. ahe xack ± this is bonus or multi-packs. It is similar to price discount since if you buy in packs or bulk,
there is an additional product at no extra charge. It could either be a bigger product at a similar price or an
additional product included in the pack with no extra cost.

4. Free gifts ± companies offer free gift items together with the product. For instance, a free toothbrush
when buying a large pack of toothpaste.

5. Free mail-ins ± this is using proofs of purchase in exchange for a gift item. ahe customer needs to make
several purchases in order to have proofs of purchase and so he/she can redem the free gift.

6. Self-liquidating offers ± this is when a consumer will pay for only a fraction of the total price of the
item if he/she can present proof of purchase of a product. For instance, a bracelet worth $30 will be sold
at $15 plus proofs of purchase of a certain item.

7. Contests and competitions ± consumers are offered a prize of sizeable amount. It could be a car or
house and lot if he/she purchases certain items.

Sales promotion techniques vary from store to store. ahey are limited only by the creativity and
imagination of the marketing strategist. If done well, this marketing strategy could help stimulate sales.

   

 

(

? xrice deal: Ñ temporary reduction in the price, such as happy hour

?
oyal eward xrogram: Consumers collect points, miles, or credits for purchases and redeem
them for rewards. awo famous examples are xepsi Stuff and ÑÑdvantage.

? Cents-off deal: Jffers a brand at a lower price. xrice reduction may be a percentage marked on
the package.

? xrice-pack deal: ahe packaging offers a consumer a certain percentage more of the product for
the same price (for example, 25 percent extra).

? Coupons: coupons have become a standard mechanism for sales promotions.

?
oss leader: the price of a popular product is temporarily reduced in order to stimulate other
profitable sales

? Free-standing insert (FSI): Ñ coupon booklet is inserted into the local newspaper for delivery.

? Jn-shelf couponing: Coupons are present at the shelf where the product is available.

? Checkout dispensers: Jn checkout the customer is given a coupon based on products purchased.

? Jn-line couponing: Coupons are available online. Consumers print them out and take them to the
store.

? Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a
mobile phone to a salesperson for redemption.

? Jnline interactive promotion game: Consumers play an interactive game associated with the
promoted product. See an example of the Interactive Internet Ñd for tomato ketchup.

xample Ñd For Jnline Games 7'Ux Ôancing Ñllu Ñrjun.

? ebates: Consumers are offered money back if the receipt and barcode are mailed to the
producer.

? Contests/sweepstakes/games: ahe consumer is automatically entered into the event by purchasing
the product.

? xoint-of-sale displays:-
à? Ñisle interrupter: Ñ sign that juts into the aisle from the shelf.
 à?Ôangler: Ñ sign that sways when a consumer walks by it.
à?Ôump bin: Ñ bin full of products dumped inside.
à?Glorifier: Ñ small stage that elevates a product above other products.
à?Wobbler: Ñ sign that jiggles.
à?
ipstick ëoard: Ñ board on which messages are written in crayon.
à?Necker: Ñ coupon placed on the 'neck' of a bottle.
à?YS unit: "your extra salesperson" is a pull-out fact sheet.

? ùids eat free specials: Jffers a discount on the total dining bill by offering 1 free kids meal with
each regular meal purchased.

% 

 

(

? arade allowances: short term incentive offered to induce a retailer to stock up on a product.

? Ôealer loader: Ñn incentive given to induce a retailer to purchase and display a product.

? arade contest: Ñ contest to reward retailers that sell the most product.

? xoint-of-purchase displays: xtra sales tools given to retailers to boost sales.

? araining programs: dealer employees are trained in selling the product.

? xush money: also known as "spliffs". Ñn extra commission paid to retail employees to push
products.

arade discounts (also called functional discounts): ahese are payments to distribution channel members
for performing some function .







Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the
notable exception of the United States. For example, the United ùingdom formerly operated under a
resale price maintenance regime in which manufacturers could legally dictate the minimum resale price
for virtually all goods; this practice was abolished in 1964.[2]

Most uropean countries also have controls on the scheduling and permissible types of sales promotions,
as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious
for having the most strict regulations. Famous examples include the car wash that was barred from giving
free car washes to regular customers and a baker who could not give a free cloth bag to customers who
bought more than 10 rolls.

!)!*c&*
c


 

xackaging is now generally regarded as an essential component of our modern life style and the way
business is organized. xackaging is the enclosing of a physical object, typically a product that will be
offered for sale. It is the process of preparing items of equipment for transportation and storage and which
embraces preservation, identification and packaging of products. xacking is recognized as an integral part
of modern marketing operation, which embraces all phases of activities involved in the transfer of goods
and services from the manufacturer to the consumer. xackaging is an important part of the branding
process as it plays a role in communicating the image and identity of a company.

+, ,
 

ùotler defines packaging as "all the activities of designing and producing the container for a product."
xackaging can be defined as the wrapping material around a consumer item that serves to contain,
identify, describe, protect, display, promote, and otherwise make the product marketable and keep it
clean. xackaging is the outer wrapping of a product. It is the intended purpose of the packaging to make a
product readily sellable as well as to protect it against damage and prevent it from deterioration while
storing. Furthermore the packaging is often the most relevant element of a trademark and conduces to
advertising or communication.

£ 

 $(
 


-


  



Ñ basic function of package is to protect and preserve the contents during transit from the manufacturer to
the ultimate consumer. It is the protection during transport and distribution; From climatic effects (heat
and cold, moisture, vapour, drying atmospheres); from hazardous substances and contaminants; and from
infestation. xrotection is required against transportation hazards spillage, dirt, ingress and egress of
moisture, insect infection, contamination by foreign material, tampering pilferage etc. Ñ package should
preserve the contents in 'Factory Fresh' condition during the period of storage and transportation, ensuring
protection from bacteriological attacks, chemical reaction etc.

.



Most products must be contained before they can be moved from one place to another. ao function
successfully, the package must contain the product. ahis containment function of packaging makes a huge
contribution to protecting the environment. Ñ better packaging help to maintain the quality of the product
and reachability of the product in the consumer's hand without spillages It gives better image to the
organisation.

/ 




Ñ major function of packaging is the communication of the product. Ñ package must communicate what
it sells. When international trade is involved and different languages are spoken, the use of unambiguous,
readily understood symbols on the distribution package is essential. It is the interest further that to get
appropriate communication to the consumer about the product, how to use it and other utility
informations. xackaging protects the interests of consumers. Information includes: quantity; price;
inventory levels; lot number; distribution routes; size; elapsed time since packaging; colour; and
merchandising and premium data.

% 


Ñn important distinction is to be made here between two types of packaging

o % 

0 ahe product entering in to the trade need to be packed well enough to protect
against loss damage during handling, transport and storage. g: fiberboard, wooden crate etc.

o   
0 ahis packaging holds the required volume of the product for ultimate
consumption and is more relevant in marketing. g: beverages, tobacco etc.

+1% 


ahere are four main hazards of transport

* Ôrops and impacts

* Compression forces
* ibration
* Climatic variations

‰

%


o 2%
0ahis test help to measure the ability of the container and inside packing materials to provide
protection to its contents and to measure the ability of the container to withstand rough handling.

o ‰


 %
0ahis test is to determine the ability of the container to withstand vibration and the
protection offered by materials used for interior packing.

o  
 %
0ahis test is carried out, generally, on empty containers, to measure the ability of the
container to resists external compressive loads applied to faces or applied to diagonally opposite edges or
corners.

o c 
c 
%
0ahis test help to study the extend of damage in a way of crushing, breaking,
cracking, distortion, and shifting during handling storage and transport which occurs to the container and
its content.

o $
%
0ahis test helps to evaluate the overall strength of the container and the cushioning
material provided inside and any failure of the content.

o 2 

0ahis test help to evaluate loaded shipping containers with respect to general overall
durability and for the protection afforded to the contents against certain hazards of handling and shipment.

‰



%


o $
%
0ahis test is conducted in a simulated rain condition to assess its impact on the test area for
two hours.

o "  2
%
0ahis test is to evaluate the resistance of a package to the penetration of sand and
dust. 

o "
"%
0ahis test is to evaluate the resistance of a package to corrosion by salt spray and to
serve as a general standard for corrosion.

o £ $

 %
0ahis test is to evaluate all the materials used in the fabrication of shipping
containers for fungus resistance.

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Cushioning is that part of packaging, which protects the article from damage due to shock and vibration.
ahe main functions of cushioning materials can be detailed as follows:

o Shock protection against vibration

o xrotection against abrasion

o xrotection of grease proof and water proof barriers at ponut of contact with solid blocks

o xrotection of moisture vapour barriers at points of contact with sharp edges of the article itself.

o xrotection of small projections

o Filling of void space in the container

o Jther secondary purposes

 


ahe most important aspect when we look into packaging is the packaging cost. xackaging cost include the
following:

* 


0It means the cost of the pack and quality control cost.

* "
  


 
 0ahis include the handling cost of bulky packages,
heavy materials of construction, drums etc.

*  


 
0ahis includes the cost involved in operations like, cleaning the package
product filling ± closing, labeling ± unitizing, stenciling, handling cylindrical slums etc.

* "

 0ahis includes the cost incurred to shift the goods from one form of
packaging to another.

* % 


 

 0ahis involves the transportation cost by sea, air etc. (freight by
volume)

* # 2 
0It is related to the loss and damage during operation, transportation delivery
etc.

* c  
0It varies depending on the vulnerability of package

* 
  0ahe package that influence on sales.

*  
0ahis cost involves when changes in the packaging materials, packages and labels
happen.

*   

0ahis include the evaluation cost, pilot test cost, field testing cost,
consumer research cost, feed back cost, final trial cost etc.

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0!  
,

Some of the major significance of packaging can be detailed as follows:

* Can make a product more convenient to use or store, easier to identify or promote or to send out a
message.
* Can make the important difference to a marketing strategy by meeting customers' needs better.

* xackaging plays a key role in brand promotion and management. xackaging is of great importance in
the final choice the consumer will make, because it directly involves convenience, appeal, information
and branding.

* ahe paramount concern of packaging is the reachability of the product without any damage. No matter
where and how the products are transported or shipped, they arrive at the customer's door in working
condition without need of repair or adjustment.

* xackaging is especially important in certain industry where future sales may be based largely on the
quality, integrity and performance of a company's previous delivery.

 


ahe significance of packaging has come to be increasingly recognized in export as well as in marketing of
a wide range of consumer goods and industrial products within the country. ahe volume of exports
depends not only on the quantity of the production and prices, but also to a substantial extends on the
standards of packaging adopted for the products. Goods damaged in transit or arriving at the destination
in an unacceptable condition tarnishes the reputation of the manufacturer as well as the country as a
whole, besides colossal wastage of scarce economic resources. Further, packaging has a crucial role to
play in the fetching higher unit values for our consumer goods (like tea and cashew) through the
substitution of the bulk packs by consumer packs. In the recent past packaging has been increasingly
recognized as a significant factor in the nations export promotion effort. ffort should be there to
understand the importance of packaging there by to avoid the loss and damage cost incurred during
transport and delivery. ùeep in mind that a conscious effort on the part of marketing managers can
increase the volume of sales and there by improve the reputation of the product and organisation.

 3!$)%c&*

3  

 is a marketing practice where two companies cooperate with separate distribution
channels, sometimes including profit sharing. It is frequently confused with co-promotion.

Cross-marketing describes the practice where two individual entities companies exchange
marketing channels for mutual benefit. No new product, service or brand is created here.

xamples:

? link or banner exchanges

? "Intel Inside" on xCs

Co-marketing describes the practice where two individual entities companies create and jointly
develop a new product, service or brand (and normally jointly promote it).

Co-marketing has of recent become very prominent in the entertainment industry. ahis typically
means partnerships between brands and entertainment properties such as television shows, films,
and music acts.
xamples:

? Ñpple and Nike jointly developing a new service for joggers

? Jmega and the James ëond franchise partnered to promote the films and the company's
watches

? Companies such as ahe SMC Group specialize in entertainment co-marketing, and have
negotiated a number of deals including Ñlexandra ëurke and Sure Ôeodorant, Shaggy
and
ogitech Ultimate ars.

%$!2

? % is the transfer of ownership of goods and services from one person to another.
arade is sometimes loosely called commerce or financial transaction or barter. Ñ network
that allows trade is called a market. ahe original form of trade was barter, the direct
exchange of goods and services.
ater one side of the barter were the metals, precious
metals (poles, coins), bill, paper money. Modern traders instead generally negotiate
through a medium of exchange, such as money. Ñs a result, 
 can be separated
from 
, or earning. ahe invention of money (and later credit, paper money and non-
physical money) greatly simplified and promoted trade. arade between two traders is
called bilateral trade, while trade between more than two traders is called multilateral
trade.

? arade exists for man due to specialization and division of labor, most people concentrate
on a small aspect of production, trading for other products. arade exists between regions
because different regions have a comparative advantage in the production of some
tradable commodity, or because different regions' size allows for the benefits of mass
production. Ñs such, trade at market prices between locations benefits both locations.

? etail trade consists of the sale of goods or merchandise from a very fixed location, such
as a department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser.[1] Wholesale trade is defined as the sale of goods or
merchandise to retailers, to industrial, commercial, institutional, or other professional
business users, or to other wholesalers and related subordinated services.[2]

? arading can also refer to the action performed by traders and other market agents in the
financial markets.

Ñ  

  is a set of practices or activities necessary to transfer the ownership of
goods, and to move goods, from the point of production to the point of consumption and, as
such, which consists of all the institutions and all the marketing activities in the marketing
process. Ñ marketing channel is a useful tool for management.[1]

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Ñn example of this is Ñpple orchard: Ñpple orchard >aransport > xrocessing factory >
xackaging > > Final product to be sold > Ñpple pie eaten

Ñn alternative term is distribution channel or 'route-to-market'. It is a 'path' or 'pipeline' through

which goods and services flow in one direction (from vendor to the consumer), and the payments
generated by them flow in the opposite direction (from consumer to the vendor). Ñ marketing
channel can be as short as being direct from the vendor to the consumer or may include several
inter-connected (usually independent but mutually dependent) intermediaries such as
wholesalers, distributors, agents, retailers. ach intermediary receives the item at one pricing
point and moves it to the next higher pricing point until it reaches the final buyer

?

?
?

Jften the question comes up, what is a channel? Ñ channel to market is the method of getting
your product into the customer¶s (the end user¶s) hand. ahis can either be through direct sales, or
through a reseller. Ôirect sales can occur in person, via the phone, the web or mail. Indirect, or
channel sales typically refers to sales through a reseller. Ñ reseller can order from you direct (one
tier between you and the end user), or from a wholesale distributor--you would sell to a
wholesale distributor and they in turn would sell to multiple resellers (two tiers between you and
the end user (hence the common term ³two-tier´ distribution)).

Note: some companies or divisions (i.e., Motorola semiconductor, etc.) call the reseller the
distributor (or disty)--this is correct, but not in the typical and more common two-tier distribution
model. Hence, it is important to get the channel terminology down whenever talking about the
channel--or you could be in violent agreement, and not know it.


  
 

ahe first question to address is whether you should go direct or indirect. Jften the answer is
both--especially since the popularity of the Internet. ahe key, however is to avoid most of the
channel conflict.

Channel conflict occurs when the vendor (you) and the reseller, or different reseller types (retail,
Ñ, mail order, Internet) compete for the same business. I say ³most´ of the channel conflict,
since it is fine to have some conflict--resellers may compete, and there may be some of the
business that you can take direct . For example, you might go direct with massive deals that are
too big for a reseller to finance (such as a 1.3 billion deal overseas), or very small deals that
don¶t require any special training/installation/consulting--hence won¶t provide margins for your
resellers who make money on their µvalue added¶ services.

ao minimize conflict you could:


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ahere are multiple ways that you can reduce conflict--the key is to be aware that it could exist
and of your ramifications (short and long-term), and that you do something about it to keep your
reseller and revenue targets satisfied.

Jne vendor long gone, Ñshton aate, had a terrible problem with channel conflict (they would
sell direct and undercut a prospect the reseller had cultivated)--as a result, their resellers hated
them. ahey still sold their products since they were so popular (dëase), but were rooting for a
competitor to take them out--which happened.

It is also a problem if you have no conflict, since it usually indicates that you don¶t have enough
sales coverage--there could be parts of the market you are not covering (missing FQ¶s, not
knowing about the opportunities, your product is not sold where the customers traffic, etc.).

Ô
 

 

ahe question to go direct, indirect or both is often determined by the following:

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ahe final decision on direct or indirect is based on your business model and how you address the
questions above.

  

Channel sales is the overall account liaison and is primarily responsible for selling product into
distribution and the reseller channel (retail, Ñs, system integrators). Channel marketing is
responsible for ensuring that product in distributor and reseller locations gets sold out. In essence
Channel sales ensures sell-in, Channel Marketing ensures channel sell-through.

Ñ Channel Marketing Manager is typically responsible for the sell-through function. ahere are
cases where a Channel Marketing Manager handles all sell-in and sell through via the channel,
and the internal sales people concentrate on selling direct--this may vary according to your
organization.

ahis section of Chanimal is primarily for the Channel Marketing Manager who works in
partnership with the head of Channel Sales to:

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ahis person is also part of the marketing team and participates with xroduct Marketing, x, the
Webmaster (for the reseller portal) and Ñdvertising to ensure that the specific reseller needs are
met.
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xersonal selling occurs where an individual salesperson sells a product, service or solution to a
client. Salespeople match the benefits of their offering to the specific needs of a client. aoday,
personal selling involves the development of longstanding client relationships.

In comparison to other marketing communications tools such as advertising, personal selling

tends to:

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ahere are exceptions of course, but most personal selling takes place in this way. xersonal selling
involves a selling process that is summarised in the following Five Stage xersonal Selling
xrocess. ahe five stages are:

1. xrospecting.

2. Making first contact.

3. ahe sales call.

4. Jbjection handling.

5. Closing the sale.

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xrospecting is all about finding prospects, or potential new customers. xrospects should be
'qualified,' which means that they need to be assessed to see if there is business potential,
otherwise you could be wasting your time. In order to qualify your prospects, one needs to:

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ahis is the preparation that a salesperson goes through before they meet with the client, for
example via e-mail, telephone or letter. xreparation will make a call more focused.

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It is best to be enthusiastic about your product or service. If you are not excited about it, don't
expect your prospect to be excited.

Focus on the real benefits of the product or service to the specific needs of your client, rather
than listing endless lists of features.

ary to be relaxed during the call, and put your client at ease.

et the client do at least 80% of the talking. ahis will give you invaluable information on your
client's needs.

emember to ask plenty of questions. Use open questions, e.g. aÔ's, and closed questions i.e.
questions that will only give the answer 'yes' or the answer 'no.' ahis way you can dictate the
direction of the conversation.

Never be too afraid to ask for the business straight off.

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Jbjection handling is the way in which salespeople tackle obstacles put in their way by clients.
Some objections may prove too difficult to handle, and sometimes the client may just take a
dislike to you (aka the hidden objection). Here are some approaches for overcoming objections:

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ahis is a very important stage. Jften salespeople will leave without ever successfully closing a
deal. aherefore it is vital to learn the skills of closing.

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So this is the Five Stage xersonal Selling xrocess. Now have a go at it yourself by completing
the lesson