SBI Associates PO - Marketing Notes III
What is marketing process?
This is the process, which is performed by marketing managers using all marketing mixes as and when required. The marketing process involves the following variables:
(a) The product itself
(b) Place for selling
(c) Marketing channel
(d) Price
These variables combine in a market offering which the consumers may decide to buy if it provides satisfaction as per their needs. The marketing process seems to be very easy in theory; However it is very complex one to perform. If any small change occurs in the marketing environment, the whole concept of marketing offering and strategy changes drastically.
What is cross selling?
Cross selling is the practice of selling an additional product or service to an existing customer. The objectives of cross selling can be either to increase the income derived from the client or clients or to protect the relationship with the client or clients. The approach to the process of cross selling can be varied. Unlike the acquiring of new business, cross selling involves an element of risk that existing relationships with the client could be disrupted. For that reason, it is important to ensure that the additional product or service being sold to the client or clients enhances the value the client or clients get from the organization. In practice, large businesses usually combine cross selling and upselling techniques to enhance the value that the client or clients gets from the organization (and vice versa).
For the cross selling there can be substantial barriers.
Let us see some of them:
1. Presence of multiple vendors.
2. Different purchasing points within an account, which reduce the ability to treat the customer like a single account.
3. The fear of the incumbent business unit that its colleagues would spoil their work at the client, resulting with the loss of the account for all units of the firm.
Let us see some forms of cross selling:
Selling addon services--- is another form of cross selling. That happens when a supplier shows a customer that it can enhance the value of its service by buying another from a different part of the supplier's company. When one buys an appliance, the salesperson will offer to sell insurance beyond the terms of the warranty. Though common, that kind of cross selling can leave a customer feeling poorly used. The customer might ask the appliance salesperson why he needs insurance on a brand new refrigerator, "Is it really likely to break in just nine months?"
The kind of cross selling can be called selling a solution. In this case, the customer purchasing a TV is provided with Direct to home inbuilt set top box. In this case customer can be relived from purchasing a set top box to watch different channels.
Examples of cross selling
1. A CDMA mobile
2. A Life Insurance company suggesting its customer sign up for car or health insurance.
3. A television brand suggesting its customers go for a set top box of it’s or another's brand.
4. A laptop seller offering a customer a mouse, pen drive, and or accessories.
5. A shampoo seller suggesting conditioner of its own company for better result.
What is SWOT analysis?
It is a structured planning method proposed by Albert Humphrey. It is used to analyse the following factors of an organization:
(a) Strengths – It includes all the characteristics of a company which is not with other companies. It needs to be exploited.
(b) Weakness – It gives a inside look of the areas where there is scope for improvement
(c) Opportunities – It includes external chances that can be used to improve performance of the company.
(d) Threats – It includes external as well as internal elements that could cause trouble for a project. It can be looming or sleeping.What is USP in marketing?
USP stands for Unique Selling Proposition. The unique selling proposition (USP) is a marketing concept that was first proposed as a theory to understand a pattern among successful advertising campaigns of the early 1940s. It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands.
The term was invented by Rosser Reeves of Ted Bates & Company. Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects.
So, USP basically provides uniqueness to a particular product. It impresses a viewer/audience so much that the voice or view of the Ads buzzes into their ears. For example for this site that you are using now, I can propose USP ‘tuition till your service’.
So, through USP, a seller tries to present his product as a unique one and better than all other competitive products. It provides an instant theme for the buyer to purchase the product.
What is Upselling?
Upselling is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.
Upselling usually involves marketing more profitable services or products but can also be simply exposing the customer to other options that were perhaps not considered previously.
Upselling implies selling something that is more profitable or otherwise preferable for the
seller instead of, or in addition to, the original sale.
In a restaurant and other similar settings, upselling is commonplace and an accepted form of business. In other businesses, such as car sales, the customer’s perception of the attempted upsell can be viewed negatively and thereby affect the desired result.
Some examples of upsales include:
(a) Suggesting a premium brand of alcohol when a brand is not specified by a customer
(b) Selling an extended service contract for an appliance
(c) Suggesting a customer purchase more RAM or a larger hard drive when servicing his or her computer
(d) Selling luxury finishing on a vehicle
(e) Suggesting a brand of watch that the customer hasn't previously heard of as an alternative to the one being considered.
(f) Suggesting a customer purchase a more extensive car wash package.
(g) Asking the customer to super-size a meal or add cheese at a fast food restaurant.
Techniques
A common technique for successful upsellers is becoming aware of a customer's background and budget, allowing the upsellers to understand better what that particular purchaser might need.Another way of upselling is creating fear over the durability of the purchase, particularly effective on expensive items such as electronics, where an extended warranty can offer peace of mind. The vendor can tell that you are only investing not so much money so, this particular thing cannot be so durable. Upselling also works with items like cars, where the seller suggests doing rubber paint inside the chassis to make the car more durable.
This is the process, which is performed by marketing managers using all marketing mixes as and when required. The marketing process involves the following variables:
(a) The product itself
(b) Place for selling
(c) Marketing channel
(d) Price
These variables combine in a market offering which the consumers may decide to buy if it provides satisfaction as per their needs. The marketing process seems to be very easy in theory; However it is very complex one to perform. If any small change occurs in the marketing environment, the whole concept of marketing offering and strategy changes drastically.
What is cross selling?
Cross selling is the practice of selling an additional product or service to an existing customer. The objectives of cross selling can be either to increase the income derived from the client or clients or to protect the relationship with the client or clients. The approach to the process of cross selling can be varied. Unlike the acquiring of new business, cross selling involves an element of risk that existing relationships with the client could be disrupted. For that reason, it is important to ensure that the additional product or service being sold to the client or clients enhances the value the client or clients get from the organization. In practice, large businesses usually combine cross selling and upselling techniques to enhance the value that the client or clients gets from the organization (and vice versa).
For the cross selling there can be substantial barriers.
Let us see some of them:
1. Presence of multiple vendors.
2. Different purchasing points within an account, which reduce the ability to treat the customer like a single account.
3. The fear of the incumbent business unit that its colleagues would spoil their work at the client, resulting with the loss of the account for all units of the firm.
Let us see some forms of cross selling:
Selling addon services--- is another form of cross selling. That happens when a supplier shows a customer that it can enhance the value of its service by buying another from a different part of the supplier's company. When one buys an appliance, the salesperson will offer to sell insurance beyond the terms of the warranty. Though common, that kind of cross selling can leave a customer feeling poorly used. The customer might ask the appliance salesperson why he needs insurance on a brand new refrigerator, "Is it really likely to break in just nine months?"
The kind of cross selling can be called selling a solution. In this case, the customer purchasing a TV is provided with Direct to home inbuilt set top box. In this case customer can be relived from purchasing a set top box to watch different channels.
Examples of cross selling
1. A CDMA mobile
2. A Life Insurance company suggesting its customer sign up for car or health insurance.
3. A television brand suggesting its customers go for a set top box of it’s or another's brand.
4. A laptop seller offering a customer a mouse, pen drive, and or accessories.
5. A shampoo seller suggesting conditioner of its own company for better result.
What is SWOT analysis?
It is a structured planning method proposed by Albert Humphrey. It is used to analyse the following factors of an organization:
(a) Strengths – It includes all the characteristics of a company which is not with other companies. It needs to be exploited.
(b) Weakness – It gives a inside look of the areas where there is scope for improvement
(c) Opportunities – It includes external chances that can be used to improve performance of the company.
(d) Threats – It includes external as well as internal elements that could cause trouble for a project. It can be looming or sleeping.What is USP in marketing?
USP stands for Unique Selling Proposition. The unique selling proposition (USP) is a marketing concept that was first proposed as a theory to understand a pattern among successful advertising campaigns of the early 1940s. It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands.
The term was invented by Rosser Reeves of Ted Bates & Company. Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects.
So, USP basically provides uniqueness to a particular product. It impresses a viewer/audience so much that the voice or view of the Ads buzzes into their ears. For example for this site that you are using now, I can propose USP ‘tuition till your service’.
So, through USP, a seller tries to present his product as a unique one and better than all other competitive products. It provides an instant theme for the buyer to purchase the product.
What is Upselling?
Upselling is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.
Upselling usually involves marketing more profitable services or products but can also be simply exposing the customer to other options that were perhaps not considered previously.
Upselling implies selling something that is more profitable or otherwise preferable for the
seller instead of, or in addition to, the original sale.
In a restaurant and other similar settings, upselling is commonplace and an accepted form of business. In other businesses, such as car sales, the customer’s perception of the attempted upsell can be viewed negatively and thereby affect the desired result.
Some examples of upsales include:
(a) Suggesting a premium brand of alcohol when a brand is not specified by a customer
(b) Selling an extended service contract for an appliance
(c) Suggesting a customer purchase more RAM or a larger hard drive when servicing his or her computer
(d) Selling luxury finishing on a vehicle
(e) Suggesting a brand of watch that the customer hasn't previously heard of as an alternative to the one being considered.
(f) Suggesting a customer purchase a more extensive car wash package.
(g) Asking the customer to super-size a meal or add cheese at a fast food restaurant.
Techniques
A common technique for successful upsellers is becoming aware of a customer's background and budget, allowing the upsellers to understand better what that particular purchaser might need.Another way of upselling is creating fear over the durability of the purchase, particularly effective on expensive items such as electronics, where an extended warranty can offer peace of mind. The vendor can tell that you are only investing not so much money so, this particular thing cannot be so durable. Upselling also works with items like cars, where the seller suggests doing rubber paint inside the chassis to make the car more durable.
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