Marketing and Sales Principles

Key Marketing and Sales Principles

By Rom Antony Day

Thursday, June 17, 2010

I want to mention just a few key marketing concepts about which you can learn in-depth at a university business program; many of the key terms do have their root in Psychology. As such taking a few relevant Psychology classes might make the tested and proven overtime with results concepts which are really axioms more easily understood individually and how they may often interplay with each other.

Before I list a number of the axioms, it might help to keep in mind the underlying premise that marketing is the process of finding a need and filling it; after you can meet a need, then and only then are you able to make a true sale which might result in repeat business --- not just a- one- time-sale.

Another critical overall fact to get a grasp of is that the most effective and efficient marketing strategies implementation have those that are based on general factors that look beyond race, ethnicity, nationality, disability, first name, surname, and whatever other similar demographic or descriptive criteria you might think of. The reasons do not need to be discussed and I do not intend to discuss them in this article.

Now, let me enumerate just a couple of the general factors that have worked well for many giant American companies in numerous industries; they use the general factors which can be referred to in different names to identify their potential clients to market to. They are for example:

Education level attained

Income range.

Marital status.

Gender.

Life Style.

Next, may I enumerate examples of the benefits or reasons people on the average tend to buy? Please, let me state just a few, and if you are to succeed in marketing and sales, you must understand that people who make buying-decision and those who influence it do not buy features or functions on any given product; people do not buy to save either; people do not buy more to pay more and save more specially when the saving out-weight the extra cost of the goods or service you sell. People buy something else that is personal to each individual.

For instance, people buy to meet needs such as:

Convenience.

To gain a sense of Status.

Ease-of-use.

To meet basic needs for survival such as food, water, a roof over their head.

To meet personal safety and security needs.

To fill personal attraction and / or sexual appeal to and or from the opposite gender.

For financial gain.

For economic stability and security.

For one’s own posterity.

For one’s good health and wellness.

To get rid of sickness.

For fear of old age.

Under pressure for fear of criticism.

For the gain of the love of others.

For fear of the loss of love of others.

Because they are altruistic (they like to help other). During and after they have practiced altruism, they feel good about themselves; as a result they might buy from you to help you. In turn, they get a sense of well-being and of making the world a better place.

To fill the need to express their American patriotism.

To express group-affinity and a sense of belonging.

As a result of friendship.

Without further elaboration on the reasons for which people tend to buy, I will list axioms and principles used behind the scenes in addition to all of the above that make things happen in revenue from sales. You might learn further about them in future articles; however I recommend formal education on the topic. They are for instance:

Market Segmentation.

Needs assessment.

Target market.

Pricing.

Psychological pricing.

Retail price.

Wholesale price.

Sale price.

Cost

Mark-up on cost.

Mark-up on retail price.

Mark-down on the mark-up on retail price.

Mark-down on retail price.

Mark-down on cost.

Cognitive dissonance (buyer’s remorse).

Paring.

Positive reinforcement.

Negative reinforcement.

Punishment.

Positive correlation.

Negative correlation.

Cause-and-Effect.

Predictor.

Standard deviation.

Variance.

Regression analysis.

Gross profit margin.

Profit margin.

Net Profit margin.

Break-even point.

Supply and demand.

Price elasticity.

Repeat business.

Client

Customer.

Advertising.

Air time.

Space.

Misleading advertisement.

Durable competitive advantage.

The big fives.

Foot-in-the-door.

Door-on-the face.

Pre-qualify prospects.

Qualify prospects.

Approach prospect.

Call on prospect.

Service-call.

Close-the-sale.

Close-on-small-points.

Walking-away power.

Negotiation.

Win / Win.

Sales forecast and analysis.

Do-budget.

Sales Credit Revenue.

Seasoned salesperson.

S.I.C. (Service Industry Code)

Straight-commission.

Draw against commission.

Salaried.

Base salary.

Bonus.

Sign-on bonus.

Kick-back – this is against the law.

Rebate.

Coupons.

Small ticket item.

Big ticket item.

Personal salesmanship.

Distribution channels.

Manufacturer;

Jobber

Wholesaler.

Retailer.

End-user.

Return-on-investment (R.O.I.)

Payment (PMT)

Future payment.

Probability test.

Research design, analysis, interpretation recommendation (each step is totally different from each of the four, but is not independent nor exclusive of the other; they are interdependent, necessary and inclusive of the other).

The free market place.

The invisible hand.

Cost-Benefit Analysis

T-Chart Analysis

Qualitative and descriptive statistical test such as the median, the mean and the mode.

Quantitative statistical analysis.

General fund.

Marketing Budget.

Advertising Budget.

The principles, general factors, and buyer’s motives stated above are not listed in any particular order.

Although I could enumerate more axiom, principle and variables used in marketing and sales, I will finish this article here and save some for the future.