BA UNIT V - unit 5

business analytics (Anna University)

CCW331-BUSINESS UNIT-V
ANALYTICS
UNIT V MARKETING & SALES ANALYTICS
Marketing Strategy, Marketing Mix, Customer Behavior – selling Process – Sales Planning –
Analytics applications in Marketing and Sales

MARKETING STRATEGY

INTRODUCTION

A marketing strategy is a long-term vision outlining a business’s value proposition to its customers.
Rather than describing the concrete actions required in specific advertising campaigns, marketing
strategies are used as a compass to direct overall marketing efforts.
While it may be tempting to jump ahead and hash out a marketing plan right away, marketing
strategies have been shown to improve success. Read on to learn more about what marketing strategy
is, why it matters, different types of marketing strategy, and what you need to do to make one
yourself.

What is a marketing strategy?

A marketing strategy is an overview of how a business or organization will articulate its overall value
proposition to its customers. Generally, a marketing strategy outlines the business’ goals, its target
market, buyer personas, competitors, and value for customers. It provides a long-term vision for
overall marketing efforts, often looking many years ahead.

Understanding marketing

Before we dive into the ins and outs of marketing strategy, you need to have a firm grasp of what
exactly marketing is – and what it isn't.

What is marketing?
Marketing is about connecting your company with potential customers and connecting those
customers with your products. It involves understanding customer needs, translating those needs
into products and services, packing and pricing those products and services, and then convincing
customers that they need to buy those products and services.
To put it simply, marketing is the entire cycle from identifying potential customers to satisfying
those customers' needs with the products you produce.

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ANALYTICS

What marketing isn't

Marketing isn't just advertising, public relations or putting together a website or email campaign.
It's also about everything leading up to those activities to support both your customers and your
sales team. It, ideally, drives your entire business and determines what products you produce and
how you distribute them.

What is included in a marketing strategy?

In essence, a marketing strategy determines the general direction – but not the specific details –
for a variety of marketing-related activities. Ideally, your marketing strategy should help you
define the following for your company:

 Target audience
 Value proposition
 Product mix
 Brand messaging
 Promotional initiatives
 Content marketing

In the following video, marketing legend Philip Kotler shares his insights about marketing strategy:

Why is having a marketing strategy important?

Creating – and following – a marketing strategy is essential to setting the direction not just for
your marketing-related activities but also for your entire business. Your marketing strategy helps
you stay in sync with your customer base, develop the right products for them and determine how
you communicate information about those products.

Without a defined strategy you won't know who your customers are, you won't develop the right
products, and you'll waste money promoting them.
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In short, having a defined marketing plan makes you more successful. According to a CoSchedule
survey, companies who have a documented marketing strategy are 313% more likely to be
successful than those who don't.

How to create a successful marketing strategy?

There are several steps you need to take to create a robust marketing strategy for your business.

Set definable business goals

Your company's vision and objectives are the driving factors behind your marketing strategy.
These overall objectives help determine your marketing goals, which your marketing strategy is
in service of.

Your marketing goals build on your company's goals. You might set a goal to achieve a specific
market share, dominate a particular channel or reach a certain percentage of a certain type of
consumer. Your goals should be reachable and measurable.

Identify and research the target market

The goals you set help you define the target market to pursue. This requires you to get familiar
with the customers in this market, which requires some degree of market research and analysis.
You need to determine the following about the target market and its customers:

 Market size and growth potential

 Market trends
 Competitors
 Geographic and demographic characteristics
 Customer behavior

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Focus on the 7 P's

As you develop your marketing strategy, you should focus on the traditional 7 P’s of marketing:

 Product – how you satisfy customer needs

 Price – how much customers are willing to pay for your product
 Promotion – which channels you use to tell customers about your product
 Place – where you sell your product
 People – individuals who help sell your product to customers
 Packaging – how you present your product to the customer
 Process – how you deliver your product to customers

Develop product plans

Once you understand your target customers, you can determine what products best serve those
customers' needs. When you know what a customer wants, you can build the right product for that
customer.

Developing the product falls outside the parameters of the marketing department, of course, as
does producing the product. But marketing should have a prominent and vocal role in determining
the product's features, pricing and packaging, as determined by customer needs and metrics.

Identify the key benefits

Savvy marketers know that new customers don't make decisions based on a new product's features
but rather on how that product benefits them. It's essential to identify the key benefits of the
products you develop – how that product best serves the customers' wants or needs.
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Unsuccessful products often have attractive features but unless those features translate into
benefits, customers simply don't care. It's not a matter of "if you build it, they will come," it's a
matter of meeting your customers' needs.

Craft your positioning and messaging

Product positioning should build on a product's benefits and how the product meets the needs of
the target audience. You have to deeply understand what your customers value and then position
your product accordingly.

This follows through into all messaging surrounding the product. The product position may be that
it's the best for meeting a particular need – the messaging communicates that positioning in a clear,
concise and attention-getting fashion.

Define your marketing mix

Finally, your marketing strategy should determine how you reach your target audience – what
channels and activities you include in your marketing mix. This can include traditional channels
like print, radio and television, as well as digital channels, social media and mobile apps.

Significance of Marketing Analytics Strategies

Marketing analytical strategies are critical in addressing and resolving marketing issues. The prime
motive behind implementing these strategies is to evaluate the effective marketing programs in
terms of return on investments in a business.
• The outcomes of adopting these strategies:
• Comparisons with competitors
• Recommendations for effective allocation of budget and resources
• Data processing analysis
• Collection of data through all the channels of communication and units in the company
• Creating a structured template for reporting the purpose of effective analysis of units
• Thus the marketing analysis strategies help in the given aspects:
• Having a holistic view of business
• Improving the management of the company and finance
• Forecasting and planning marketing initiatives
• Increasing the effectiveness of existing marketing programs through the allocation of
resources
• Increase the profitability and return on investments
Thus you should set a proper marketing analytics framework within the organization to have the
right processes along with the right technology platforms to capture data-driven strategy and
deliver consistent information about this

Marketing strategy vs. marketing plan

People often use the terms “marketing strategy” and “marketing plan” interchangeably, but, in
reality, they are two different processes.

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A marketing plan describes the concrete actions and marketing tactics undertaken to complete a
marketing campaign. A marketing strategy, meanwhile, outlines the big picture of a marketing
effort, such as the business's target audience and their product’s value proposition for customers.
As a result, it is common to refer to an existing marketing strategy when developing a marketing
plan. While the strategy describes what the marketing objectives are, the plan describes how those
objectives are going to be achieved. Without a well-thought-out marketing strategy, marketing plans
are in danger of missing the mark.
For example, imagine an e-commerce business that is trying to grow its customer base. They start
using marketing tactics like a referral program to encourage positive word of mouth. But their efforts
only have marginal success.
If they had created a marketing strategy, then the company may have realized that they actually
needed to grow their customer base by appealing to an untapped target audience. As a result, their
marketing plan would have instead outlined a digital marketing strategy focused on content creation
through targeted blog posts and search engine optimization.
A great strategy can lead to a great plan.

Types of marketing strategy

There are many different approaches to marketing – such as social media marketing or content
marketing – but the most elementary strategies for market growth are found in Ansoff’s matrix.
These four strategies are:
 Market penetration
 Product development
 Market development
 Diversification
H. Igor Ansoff created his matrix to help businesses understand the different strategies required for
market growth. Ansoff made two basic assumptions about how growth could be achieved: firstly, by
varying what product is being sold and, secondly, by varying who the product is being sold to [2].
As a result, each of the quadrants in his matrix feature a mix of these two factors. FIG: Ansoff’s
matrix.

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In outlining these four growth strategies, Ansoff’s matrix also emphasizes the different marketing
tactics that business and marketers must consider when undertaking them. Each strategy requires a
different consideration of the the four Ps, also know as the “marketing mix,” which marketers should
consider together to ensure an effective marketing strategy. The four Ps are:
 Product: What is being sold
 Place: Where it is being sold
 Price: What the product costs
 Promotion: How the product is marketed to the target audience

The exact way that a marketer defines the four Ps for their marketing efforts will depend on the
growth strategy they are using and the political and economic outlook of their market. Let’s take a
closer look at each strategy from Ansoff’s matrix.

How to create a marketing strategy?

A marketing strategy can set you up for marketing success. As you are creating your own marketing
strategy, consider the following steps to help guide your process.
1. Define your business and marketing goals.
The first step in creating an effective marketing strategy is to clarify what your overall business
objectives and marketing goals are.
In other words: what is the end outcome you are trying to achieve with your market growth strategy?
The answer to this question will inevitably depend on your particular place in the market and your
own comfortability with different risk levels.
Some examples of business and marketing goals include:
 Grow customer base
 Increase sales
 Increase brand awareness

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Whatever you ultimately decide are you objectives, though, the purpose is simply to take time out
and consider what you want to actually accomplish by expanding your marketing efforts. These
overarching goals will guide you as you further develop your marketing strategy.
2. Conduct market research.
Strategic marketing requires a comprehensive understanding of the marketplace, its economic and
political context, and your place in it. So, market research is a must.
As you are conducting market research, some of the factors will want to consider include:
 Competitors, particularly their value proposition and market share
 Market size, including the realistic number of customers that would be interested in your products
 Market gaps where you can provide value
 Possible economic and political realities that could impact the market in the long-term
As you gain a better understanding of the market, you will also better understand how you fit into it
and where you can grow in it.
3. Create a customer profile.
The purpose of every marketing campaign is to connect with a consumer. To help guide the
development of a strong marketing plan, then, your marketing strategy needs to include a
comprehensive profile of your target audience.
It is helpful to consider your target audience in relation to the four Ps. So, you might ask yourself the
following questions:
 Based on what you know about the market, who is your target audience? What are their key
demographics?
 What is your product’s value proposition to your customer? (Product)
 How much is your target audience willing to pay for your product or service? (Price)
 Where does your target audience shop? (Place)
 What marketing tactics are most persuasive to your target audience? (Promotion)
As you research and consider these questions, your customer should come more clearly into view.
A comprehensive understanding of you target market will help you create a strategy that has impact
with those you are trying to reach.

4. Synthesize and strategize.

Finally, you will take the goals you have outlined, research you have conducted, and profiles you
have created to construct a marketing strategy. The critical question you will want to answer is: how
will you align with your target market to meet your overall objectives?
Your answer to this question will be your strategy.
Ultimately, your marketing strategy should cover the following:
 Business and marketing objectives
 Market overview, including key facts and figures
 Competitor research
 Customer profile
 General statement of strategy highlighting the product’s value proposition to customers
While you may have collected much information as you were conducting research, your marketing
strategy doesn’t need to be too long. In fact, a strong marketing strategy can be as short as one to
two pages. Remember, the marketing strategy is meant to act as long-term guide for directing specific
marketing tactics, not an action plan of how a marketing campaign will be done.

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Key takeaways

 Marketing is more than just advertising and promotion – it's all about connecting with the
customer.
 A marketing strategy sets the direction for all your product and marketing-related activities.
 Having a marketing strategy helps keep all your activities on track.
 Developing a marketing strategy involves setting goals, researching the market, developing
product plans, defining your marketing initiatives, and following the "7 P's."

CONCLUSION:
Optimizely's digital experience platform and cloud-based CMS solutions should be part of your
company's marketing strategy. Optimizely's online solutions help you better manage your digital
assets, optimize the customer experience, and enhance your company's ecommerce efforts,
improving the effectiveness of your evolving marketing strategy.

MARKETING MIX
INTRODUCTION
A marketing mix includes multiple areas of focus as part of a comprehensive marketing
plan. The term often refers to a common classification that began as the four Ps: product, price,
placement, and promotion.
Effective marketing touches on a broad range of areas as opposed to fixating on one message.
Doing so helps reach a wider audience, and by keeping the four Ps in mind, marketing
professionals are better able to maintain focus on the things that really matter. Focusing on a
marketing mix helps organizations make strategic decisions when launching new products or
revising existing products.

Definition of Marketing Mix

The marketing mix is defined by the use of a marketing tool that combines a number of components
in order to become harden and solidify a product’s brand and to help in selling the product or
service. Product based companies have to come up with strategies to sell their products, and
coming up with a marketing mix is one of them.

Table of Content
1. Marketing Mix 4P
2. 7Ps of Marketing
3. Marketing Mix Example
4. Marketing Mix Product
5. Importance of Marketing Mix
6. Questions on Marketing Mix

What is Marketing Mix?

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Marketing Mix is a set of marketing tool or tactics, used to promote a product or services in the
market and sell it. It is about positioning a product and deciding it to sell in the right place, at the
right price and right time. The product will then be sold, according to marketing and promotional
strategy. The components of the marketing mix consist of 4Ps Product, Price, Place, and
Promotion. In the business sector, the marketing managers plan a marketing strategy taking into
consideration all the 4Ps. However, nowadays, the marketing mix increasingly includes several
other Ps for vital development.
What is 4 P of Marketing

1. Product in Marketing Mix:

A product is a commodity, produced or built to satisfy the need of an individual or a group. The
product can be intangible or tangible as it can be in the form of services or goods. It is important
to do extensive research before developing a product as it has a fluctuating life cycle, from the
growth phase to the maturity phase to the sales decline phase.
A product has a certain life cycle that includes the growth phase, the maturity phase, and the sales
decline phase. It is important for marketers to reinvent their products to stimulate more demand
once it reaches the sales decline phase. It should create an impact in the mind of the customers,
which is exclusive and different from the competitor’s product. There is an old saying stating for
marketers, “what can I do to offer a better product to this group of people than my competitors”.
This strategy also helps the company to build brand value.

2. Price in Marketing Mix:

Price is a very important component of the marketing mix definition. The price of the product is
basically the amount that a customer pays for to enjoy it. Price is the most critical element of a
marketing plan because it dictates a company’s survival and profit. Adjusting the price of the
product, even a little bit has a big impact on the entire marketing strategy as well as greatly
affecting the sales and demand of the product in the market. Things to keep on mind while
determining the cost of the product are, the competitor’s price, list price, customer location,
discount, terms of sale, etc.,

3. Place in Marketing Mix:

Placement or distribution is a very important part of the marketing mix strategy. We should
position and distribute our product in a place that is easily accessible to potential buyers/customers.
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4. Promotion in Marketing Mix:

It is a marketing communication process that helps the company to publicize the product and its
features to the public. It is the most expensive and essential components of the marketing mix, that
helps to grab the attention of the customers and influence them to buy the product. Most of the
marketers use promotion tactics to promote their product and reach out to the public or the target
audience. The promotion might include direct marketing, advertising, personal branding, sales
promotion, etc.

What is 7 P of Marketing
The 7Ps model is a marketing model that modifies the 4Ps model. As Marketing mix 4P is
becoming an old trend, and nowadays, marketing business needs deep understanding of the rise in
new technology and concept. So, 3 more new P’s were added in the old 4Ps model to give a deep
understanding of the concept of the marketing mix.

1. People in Marketing Mix:

The company’s employees are important in marketing because they are the ones who deliver the
service to clients. It is important to hire and train the right people to deliver superior service to the
clients, whether they run a support desk, customer service, copywriters, programmers…etc. It is
very important to find people who genuinely believe in the products or services that the particular
business creates, as there is a huge chance of giving their best performance. Adding to it, the
organisation should accept the honest feedback from the employees about the business and should
input their own thoughts and passions which can scale and grow the business.

2. Process in Marketing Mix:

We should always make sure that the business process is well structured and verified regularly to
avoid mistakes and minimize costs. To maximize the profit, It’s important to tighten up the
enhancement process.

3. Physical Evidence in Marketing Mix:

In the service industries, there should be physical evidence that the service was delivered. A
concept of this is branding. For example, when you think of “fast food”, you think of KFC. When
you think of sports, the names Nike and Adidas come to mind.
Marketing Mix Example:
This topic will go through a marketing mix example of a popular cereals company. At first, the
company targeted older individuals who need to keep their diet under control, this product was
introduced. However, after intense research, they later discovered that even young people need to
have a healthy diet. So, this led to the development of a cereals product catered to young people.
In accordance with all the elements of the marketing mix strategy, the company identified the
product, priced it correctly, did tremendous promotions and availed it to the customers. This
marketing mix example belongs to Honeycomb, one of the most renowned companies in the cereal
niche.
Following these rules clearly has managed to make the company untouchable by all the other
competitors in the market.
This makes Honeycomb, the giant we know and love today to eat as morning breakfast!

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Marketing Mix Product

All products can be broadly classified into 3 main categories. These are :
1. Tangible products: These are items with an actual physical presence such as a car, an
electronic device, and an item of clothing or a consumer good.
2. Intangible products: These are items that have no physical presence but can be felt
indirectly. An insurance policy is an example of this. Online items such as software,
applications or even music and video files are also intangible products.
3. Services: Services are also intangible products but they are the result of an economic
activity that does not result in ownership. It is a process that creates benefits for customers.
Services depend highly on who is performing them and remain difficult to reproduce
exactly.

Importance of Marketing Mix

The marketing mix is a remarkable tool for creating the right marketing strategy and its
implementation through effective tactics. The assessment of the roles of your product, promotion,
price, and place plays a vital part in your overall marketing approach. Whereas the marketing mix
strategy goes hand in hand with positioning, targeting, and segmentation. And at last, all the
elements, included in the marketing mix and the extended marketing mix, have an interaction with
one another.

Questions on Marketing Mix

Q.1 State Any One Advantage of Personal Branding
Ans:
 It is because of branding that customers are able to identify the products.
 Example, a customer who is satisfied with ‘Dove’ beauty bar need not inspect it every time
she buys the product.

Q.2 State the Components of Product Mix.

Ans:
 Branding.
 Packaging.
 Labeling.

Q.3 A Company Has to Decide About Its Price Policy, Credit Policy; Terms of Payment Etc. Name
the Concept Which the Company is Trying to Decide.
Ans:
Price Mix

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CUSTOMER BEHAVIOR

INTRODUCTION

Customer behavior refers to an individual's buying habits, including social trends, frequency
patterns, and background factors influencing their decision to buy something. Businesses study
customer behavior to understand their target audience and create more-enticing products and
service offers.

Customer behavior doesn’t describe who is shopping in your stores but how they’re shopping in
your stores. It reviews factors like shopping frequency, product preferences, and how your
marketing, sales, and service offers are perceived. Understanding these details helps businesses
communicate with customers in a productive and delightful way.

Factors That Affect Customer Behavior

There are three factors that influence customer behavior: personal, psychological, and social. Let’s
dive into each type.

Personality Traits

A customer's behavior in your store is heavily influenced by their personality, background, and
upbringing. Some will be jovial and outgoing, others quiet and collected, and some will fall in
between. Understanding where your target audience lies in this category will be vital to
understanding customer behavior.

Psychological Responses

Psychological responses can be challenging to predict, but they play a significant role in customer
behavior because someone’s response to a situation is based on perception and attitude, which can
change daily.

For example, say you got a promotion, you’re having a celebratory dinner, and your server
accidentally spills a glass of water on your shirt. You might be more forgiving in this instance
because you’re in a great mood and having a good day. However, if you were just fired from your
job, you might be more frustrated with the situation.

Customers can be patient and satisfied one day, but the next, they’re pressing your rep on an urgent
issue. Understanding that a customer’s psychological response doesn’t represent who they are as
a person can help your team defuse stressful situations and prevent potential churn.

Social Trends

Social trends are external influencers that customers listen to, like peer recommendations, societal
norms, or fads. Some of these influences can be temporary, but others can affect customers
permanently.

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We’ve just gone over some examples of factors influencing customer behavior; now, let’s discuss
some data-backed examples of consumer behaviors that directly impact customer service.

What Is a Customer Behavior Analysis?

A customer behavior analysis is a qualitative and quantitative observation of how customers
interact with your company. You begin by segmenting customers into buyer personas based on
their shared interests. Then, observe each group at their respective stage in the customer journey to
see how the different personas interact with your company.

This analysis gives insight into the variables that influence your audiences and the motives,
priorities, and decision-making methods customers consider during their journey. It also helps you
understand how customers feel about your company and if that perception aligns with their core
values.

Why should you conduct a customer behavior analysis?

Content Personalization

A customer behavior analysis is important because now, more than ever, customers expect highly
personalized content.

In fact, a Salesforce survey of over 6,000 consumers found that 66% of them expected companies
to understand their needs and expectations, and a Redpoint Global survey found that 82% of
respondents expect businesses to accommodate their preferences and meet their expectations and
70% say they’re highly likely to purchase exclusively from brands that understand them and their
needs. So, in brief, you’ll be ensuring you speak to customers' needs and desires, contributing to
customer loyalty and retention.
Customer Value
Another key business need is the ability to predict a customer's overall value. A customer behavior
analysis improves this process by identifying ideal customer characteristics. By targeting these
personas, your business can attract brand-loyal customers before your competitors do.
Content Optimization

The data you get from your customer behavior analysis can be used to optimize your marketing
campaigns. Not only can you narrow your focus to your most valuable segment of customers, but
you can also engage them on their preferred channels. This analysis can also help you deliver
content at the most effective time to make an impact.

You’ll also get insight into where roadblocks occur for each persona, helping you increase
opportunities for upselling and cross-selling.
Customer Retention
While it's important to attract loyal customers, it's just as important to retain them. Accenture
reported that 49% of customers expect special recognition when they're a "good customer." Even
if they like your company, these people may start to look elsewhere if you don't have a way to

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acknowledge them. A behavior analysis can help your team reduce this customer churn by
identifying good and bad customer traits.
How to Conduct a Customer Behavior Analysis?
1. Segment your audience.
The first step to a customer behavior analysis is segmenting your audience.

Key segmentation models are demographic segmentation (age, gender, etc.), psychographic
segmentation (personality, values, etc.), geographic segmentation (country, town, etc.), or other
things like behaviors like frequent actions and product use, preferred media channels, and online
shopping habits.

You’ll also want to identify the characteristics of customers that are the most valuable to your
business. One way to do this is through an RFM analysis, which outlines how recently a customer
has purchased from you and how frequently they purchase from you.
2. Identify the key benefit for each group.

Each customer persona will have a unique reason for choosing your business, and it’s imperative
to identify it. Look beyond the product or service and consider the external factors influencing the
customer’s buying decision.

For example, was it a purchase of convenience? Or did they make a conscious decision to seek out
your brand? How urgent was the purchase, and how much do they want to spend? Thinking about
the context of customers’ needs is a great way to determine areas to improve the customer
experience.
3. Allocate quantitative data.

Some resources may be more accessible than others, and it's important to derive information from
both internal and external sources to ensure you get a complete picture of both micro and macro
consumer trends.

From within, your company can pull stats such as blog subscription data, social media insights,
and product usage reports. Secondary outlets can offer things like consumer reviews and
competitor analytics. Third-party data isn't specific to one company but provides general statistics
across an entire industry. Through the combination of the three, you'll have a broad scope of
information to work with when analyzing customer behaviors.

4. Compare your quantitative and qualitative data.

After you've collected your data, the next step is to compare the qualitative data against the
quantitative.

To do this, go through your customer journey map using the data sets as a reference. Look at which
persona bought what product, when they bought it, and where. Did they return for another visit?
By comparing the two sets of data against the customer experience, you can develop a detailed
understanding of your customer's journey.
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Comparing data should help you identify recurring trends. Look for common roadblocks that seem
to pop up at different lifecycle stages, and note any unique behaviors specific to a customer type.
Circle back to your high-value customers, and acknowledge anything that stands out with their
buying behaviors.

5. Apply your analysis to a campaign.

As discussed earlier, you can use your findings to optimize your content delivery. Pick the best
delivery channel for each persona, and take advantage of opportunities where you can personalize
the customer experience. Nurture customers throughout the entire customer journey by responding
to roadblocks on time. The insights you've gained from conducting your customer behavior
analysis should give you a good idea of where you can make updates to your marketing campaigns.

Before rolling out your new initiatives, use your analysis to determine what your customers will
think about these changes. Customers are habitual creatures, and some will push back on change
even if it's for the better. These customers tend to be more loyal to your brand, so it's imperative
you don't lose them as a result. Consider different ways to introduce change to these customers,
and remember to be receptive to their feedback.

6. Analyze the results.

Once you've given ample time for testing, you'll probably want to know if your changes worked.
Use metrics like conversion rate, acquisition cost, and customer lifetime value to determine the
effect of your updated campaigns. It's important to continuously analyze your results as new tech,
politics, and events constantly influence customer needs. Revisiting your analysis frequently
ensures you capture new trends in the customer's journey.

SELLING PROCESS

Sales is a key part of any business, helping companies grow while building a strong customer base.
Learning about the selling process can help you find potential buyers or prospective clients,
increase your overall sales and nurture your relationship with consumers.
Key takeaways:

 The selling process is the interaction between a salesperson and their potential buyer. There
are seven common steps to the selling process: prospecting, preparation, approach,
presentation, handling objections, closing and follow-up.
 The first three steps of the selling process involve research into prospects’ wants and needs,
with your presentation midway through the selling process. The final four steps include
addressing any questions or concerns, then closing the deal and maintaining your
connection.
 Both business-to-business (B2B) and business-to-consumer (B2C) salespeople follow the
same general selling process to connect with prospective clients and build a strong
customer base.

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What is the selling process?

The selling process is the interaction between a seller and a potential buyer or client. It's generally
a method business can replicate for consistent performance among salespeople. Businesses use the
common seven steps of the selling process to complete sales and ensure continued profits.

7-step selling process

Here are seven steps that are typically involved in making a sale:

1. Prospecting
2. Preparation or pre-approach
3. Approach
4. Presentation
5. Handling objections
6. Closing
7. Follow-up

1. Prospecting

Prospecting involves finding and qualifying potential buyers or clients. At this stage, you
determine whether your prospective customer has a particular need or want that your business can
fulfill. You might also decide on varying factors such as affordability.

This stage of the selling process often involves research to identify your ideal customer. You can
start compiling a list of leads or potential clients. You might screen them based on qualifying
questions, such as whether they’re a business owner or homeowner or if their average monthly
profits or income are suitable for the product price. This helps narrow your buyer pool.

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You can also use the screening process to determine buyers’ current needs. For instance, if you’re
selling insurance to individuals over age 65, then you probably won't target someone in their 30s.

2. Preparation or pre-approach

Before making initial contact with your prospects, you want to prepare. It's important to have all
your information ready, such as product descriptions, prices, payment options, competitor rates
and dates for specific sales. You also want to know as much as possible about your prospects so
you can better connect with them.

This stage of the selling process might also involve preparing your initial sales presentation. Be
ready to answer any questions your prospects could have with supporting data. Practice what you're
going to say out loud, and have someone present you with potential questions so you can rehearse
your response.

3. Approach

During the approach stage of the selling process, you’ll make your first personal connection with
your prospect or prospects. This step involves getting the potential buyer or client to interact with
you by personalizing your meeting or otherwise establishing rapport. Ask questions to get the
client involved in the conversation.

Example: For instance, if you sell skincare products or services, you might ask:

 Do you currently have a daily skincare routine?

 Is there anything about your daily skin regimen that you’re unhappy with?
 What are your top skin complaints?
 Have you heard about the skin benefits of our specific product or service?

You can also offer a gift, such as $10 off the first skin treatment or a sample of the product so your
prospect can experience the benefits firsthand before making a greater investment. This also helps
to confirm confidence in what you’re selling.

4. Presentation

At this point in the selling process, you have established an understanding of your prospect's
individual needs and wants. You can then tailor your presentation or demonstration to show how
your product or service can best fulfill those needs or wants. To complete this step effectively,
focus on personalizing it and frame your product as a solution to their problem.

Your presentation might involve a tour, product demonstration, video presentation or other visual
or hands-on experience. This step is when you can apply all your research. For instance, if you’re
trying to sell a house to a growing family, you likely would show them a larger home with a yard
in a family-friendly neighborhood rather than a second-story condo.

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5. Handling objections

After you complete your presentation, your prospect might have some questions, concerns or
objections. This is a normal and important part of the selling process. View objections as an
opportunity to learn more about your prospect. When you research and prepare appropriately,
you’ll have all the information needed to overcome objections.

This step might involve listening to your prospect's concerns and asking additional questions to
better identify and understand their objections. You might want to then reframe your sales pitch to
address those concerns.

Example: If a customer says they won't be able to make an investment until next month, you could
offer them additional savings or promotions if they follow through with their purchase. While in
the handling objections step of the selling process, you might also reiterate the cost or loss of value
if the prospect decides to completely forgo the purchase.

6. Closing

Once you've convinced the prospect that your product or service can meet their needs, it's time to
close the sale. It's important to actually ask the prospect if they want to make the purchase and
ensure they fully understand all the terms of the sale.

Closing the sale might involve drafting a proposal, negotiating terms or pricing, signing contracts,
completing a monetary transaction or even overcoming additional concerns or objections. You
want to make sure your buyer understands the terms and restrictions included in the contract, such
as any refunds, guaranteed customer satisfaction clauses or ongoing purchases or billing for
monthly memberships.

At this stage, you can also use upselling techniques, such as offering additional products that
complement their original purchase, upgrades or a higher-end version of your product. After
completing the transaction, always thank the customer and be sure not to instantly drop the
connection.

7. Follow-up

The follow-up, which takes place after the sale, is one of the most important steps in the selling
process. It’s a continuation of the relationship between the seller and the buyer that ensures
customer satisfaction, retains customer loyalty and helps prospect for new customers. The idea is
not to continue selling at this stage, but instead to nurture the existing relationship.

The follow-up might involve sending a thank-you note or calling the customer to ask about their
experience with their new product or service. You might also ask your customer to rate your
service or post a review on one of your social media or business pages. Sometimes, the follow-up
includes completing the logistics of a sale, such as signing additional contracts, making deliveries
or installing products. When done well, this stage can often lead you back to step one in the selling
process with additional sales, referrals or reviews that bring new customers to you.
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Types of sales

There are two primary types of sales: business-to-business (B2B) and business-to-consumer
(B2C). Understanding the similarities and differences between these types of sales can help you
improve your use of the selling process when approaching prospects.

B2B sales

B2B sales involve selling products or services to other businesses. When you work in B2B sales,
you often work with a professional buyer who is very familiar with the selling process. Examples
of B2B sales include:

 Wholesale: A coffee bean manufacturer sells large quantities of coffee beans to a cafe that
then sells those coffee beans in smaller quantities to consumers.
 Supply: A paper goods company sells paper cups and napkins to restaurants.
 Service: A marketing firm works with businesses to increase their presence online.

B2C sales

B2C sales involve selling products or services to consumers. The selling process for B2C sales is
usually much shorter, with many customers making a purchase soon after the prospecting stage.

One example of B2C sales is a representative selling a laptop to a customer at a tech store. Another
example that usually involves more research and prospecting is an insurance salesperson selling a
life insurance policy to an individual.

SALES PLANNING
INTRODUCTION
A sales plan is a document that encompasses goals, target audience, and sales strategy aimed at
attaining necessary results. It enables a company’s team to predict business-related risks and avoid
them.

Contents

1. Why is it important to have a sales plan?

2. What should a sales plan include?
3. How to write a sales plan?
4. 8 Tips for Creating a Successful Sales Plan
5. Examples of Sales Plans
In this article, we’ll uncover the importance, components, and examples of sales plans. We’ll also
find out how to write a sales plan and explore 8 tips to follow to create a successful sales plan.
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Why is it important to have a sales plan?

Planning is an essential point for any business, especially when talking about sales targets. Before
selling your product, you need to outline your main goals and the ways you can achieve them. This
includes various sales strategies, tactics, and approaches. Once you have your objectives identified,
you need to create a plan where you can mention all the details of your marketing strategy.

A sales plan enables you to predict possible problems and risks related to your product and sales.
As a result, you can eliminate these risks before the problem arises and escalates. When you have
a clear plan of action, you can be confident about the correctness of your decisions. Besides, you
can keep an eye on the product’s sales performance and decide what else you can do to get closer
to your short-term and long-term goals.

A sales plan will also come in handy if you conquer international markets. This document will
serve you as an overview of customers’ needs, requirements, and preferences in different countries.
Also, it’ll contain sales strategies that suit different geographics. As a result, you can successfully
reach your goals.

Now that you know the importance, let’s discover the components of a sales plan.

What should a sales plan include?

A sales plan is a comprehensive document covering many aspects of your business. You need to
create it as detailed as possible to attain your objectives faster. Your plan should contain the
following sections:

 mission;
 company goals;
 revenue expectations;
 target market;
 business performance for the previous period;
 market trends;
 industry conditions;
 competitor analysis;
 marketing strategy;
 sales strategies, tactics, techniques;
 software;
 human and financial resources available;
 tasks and responsibilities of different departments;
 metrics.

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It’s time to reveal how to write a sales plan.

How to write a sales plan?

Creating a sales plan might require you to spend some time defining goals, revenue targets, tasks
for departments, but it’s worth it. In the end, you’ll have a clear roadmap for a certain period your
company’s team should follow to get great results in sales. If you don’t know where to start, we’ll
help you. Follow our guide to clarify the details of the process.

1. Determine your major goals. The first and foremost is to define your main goals. Think
of the things you want to achieve related to sales. For example, sell 500 items in one month
or earn $20,000 in one year. Make sure that your goals are specific, achievable, and
measurable. Besides accurate sales targets, you can also think about more general things
like the growth of your brand, new markets, or the production of new products.
2. Make your targets more specific and accurate. If you are ready with more general
objectives, it’s time to proceed to the next stage and identify more specific goals. Be
realistic and set goals possible to reach. Let’s imagine that you want to enter the Latin
America region. In this case, you need to list all countries where you want to present your
product. As an option, give tasks to your team members to research which countries will
accept your product.
3. Assess your resources. At this stage, you need to evaluate your human resources and
money opportunities. Analyze whether you have enough employees to bring your plan to
life and financial support to purchase all the necessary inventory.
4. Choose KPIs. Key performance indicators are necessary to figure out whether your plan
works and brings you closer to your main goals. Choose the most appropriate metrics. It’s
perfect to have 3-5 indicators to control business performance.
5. Allocate time wisely. There’s no need to rush since this process can be time-consuming.
Your company’s team will help you manage all the tasks efficiently. Have a week or more
to develop an accurate and realistic plan that includes all the details of your sales strategy,
tactics, goals, revenue targets, etc.
Now you know the steps necessary to write a sales plan, so let’s proceed to the next section to
explore tips for creating a successful plan.

8 Tips for Creating a Successful Sales Plan

Sales plans vary in different companies. However, there are some critical points you should
consider in your sales plan to be more effective. The following tips will provide you with a clue.

1. Make sure that you have realistic objectives.

2. Set deadlines.
3. Consult with sales representatives.
4. Conduct competitive analysis.

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5. Develop a budget proposal that encompasses previous performance data and forecasts for
the future.
6. Write specific plans for each department of your company.
7. Analyze issues your sales representatives find challenging.
8. Use special tools to simplify your work.
You need to do profound research and work with your teams to understand what information to
include in your sales plan. For sure, it’ll require your effort. However, after you do all the work,
you’ll be able to develop a plan that will lead you towards success and growth.

Now that you know some tips, it’s time to grab some inspiration from the examples below.

Examples of Sales Plans

We’ve prepared different examples of sales plans you can consider for your business. The type
you choose depends on your business objectives, so take a closer look at each of them to find a
perfect option.

1. Market expansion. If you decide to reach new markets, you should consider this sales
plan. This document outlines your tasks, goals, and metrics to track your progress. With its
help, you’ll address the needs of a new target audience in a completely new geographic
area. Besides, a market expansion plan usually includes distribution costs, logistics, and
time zone.
2. New product. The main aim of a new product launch is to bring ROI. That’s the main
focus of the new product sales plan. When you create this type of plan, it’s a must to
conduct a competitive analysis, identify sales strategy, and take care of your brand
positioning.
3. 30-60-90-day plan. This is the most general sales plan which focuses on a timeframe by
which you should reach certain goals. You can set a deadline to do something in 30, 60,
and 90 days. For example, you can decide to acquire 10 new customers in 30 days, increase
ROI by 10% in 60 days, and reduce churn by 2% in 90 days.

CONCLUSION:
A sales plan is an essential element of your business that helps predict all the possible risks and
prevent them. Once you have a roadmap, you know in what direction you should move to attain
your targets.

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ANALYTICS APPLICATIONS IN MARKETING AND SALES

SALES ANALYTICS
INTRODUCTION:
It's important for sales and marketing teams to review their strategies and performance to
make improvements. One way to measure performance is with sales analytics. Sales analytics can
also help sales and marketing teams create strategies, so it's useful to learn about sales analytics
and how to use them.
In this, we define analytics for sales, explain why they're important and review different
sales analytics methods with tips on how to use them to improve your sales process.
What are Sales Analytics?
Sales analytics are a method business can use to predict sales trends and model their sales
process. Analytics typically involve technology that can collect and measure sales data, such as
reach, purchases and customer interactions with the business. It's helpful for marketing and sales
teams to define metrics for sales analytics at the beginning of a marketing campaign to best track
their performance and progress.
Benefits of sales Analytics:
Sales analytics offer many benefits to the marketing team, including the ability to:
Optimize the sales funnel
The sales funnel refers to the buyer's activities from the first point of contact with a business
to the point of purchase. A close review of each stage can help optimize each part of the process
by making minor improvements. Sales analytics can also help automate some processes, such as
prospecting, and give sales representatives the opportunity to focus only on closing sales.
Identify strengths and weakness
Sales analytics like team performance can help determine what practices work best in
making sales. Marketing teams and sales representatives can review each stage of the process and
its success individually. For example, marketers can collect analytics about content that consumers
interact with versus content that gets little interaction and use this to create more engaging content.
Increase efficiency in sales
Using sales analytics helps to optimize the sales funnel and make improvements to the sales
process, which leads to efficiency. Sales analysis does this by automating workflows and helping
team members collaborate and reduce time spent on tasks.
Sales effectiveness is a metric that can recognize patterns in lead generation, such as what
type of content consumers are most likely to interact with. This helps the marketing and sales team
create more content like this and generate more leads.
Types of Analytics for sale:
Here are nine types of sales analytics and what they're useful for:
1. Market research:
Market research is information on consumer preferences, behaviors and needs. This helps
to create content that properly targets a business's audience and helps to produce goods and
services that best serve the consumers.
Marketing departments can gather market research through social listening tools that track
consumer behavior. Another method is to send surveys to customers and request feedback on how
to improve their products and services.
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2. Sales trends:
Sales trends are patterns in purchasing behaviors and patterns in key performance
indicators, which are metrics marketers used to measure marketing data, such as conversions. Sales
trends can help predict revenue and inform marketing departments of which techniques are
effective among certain demographics in the business's target audience.
For example, a company that markets products to people below the age of 30 years old can
customize its sales and marketing approaches to appeal to the desires of that market, instead of a
general market.
3. Predictive sales:
Predictive sales are analytics that uses marketing data from the past and present to forecast
sales. This helps to manage the marketing budget and plan for resources, such as labor costs.
Forecasting sales is also important for the production of goods, so businesses can meet the demand
for a product.
4. The performance of sales:
The performance of a sales team is analytics that helps track sales goals, such as the number
of sales or customers a sales representative gains. This is a helpful analytic to provide
accountability for sales team members. Gathering information about each sales representative on
the team also helps to reach larger sales goals, such as customer acquisition.
5. Sales Pipeline:
The sales pipeline analysis is a review of the sales process, including market research,
gaining customers, making sales pitches and closing sales. It's helpful to look at the sales pipeline
and each stage of the sales process to optimize strategy.
For example, sales pipeline analytics let marketers look at strategies for prospecting, or
finding consumers who are likely to purchase, and by reviewing the prospecting strategy,
marketers can determine which practices are most successful in finding customers.
6. Product Sales:
Product sales analysis reviews all the products a business has on the market. It's important
to track each product and focus on the products that are performing best. Sometimes, a business
may remove a product if it's not selling and others to prevent overcrowding the marketplace. Often,
this removes competition and helps the business's other products increase in sales.
7. Sales Effectiveness:
Sales effectiveness analyzes sales team performance and helps identify opportunities to
make sales to customers. This involves qualifying leads and recognizing patterns. Using this
analytic can help automate repetitive processes, such as tracking calls that end with closing a sale,
and provide sales representatives with more time to focus on turning consumers into customers.
8.Diagnostics:
Diagnostics can explain trends by identifying causing factors. Diagnostic analysis can
compile a list of performance indicators to help explain the effectiveness of the sales department.
Examples of aspects diagnostics may provide data on are:
 Revenue goals
 Top competitors
 Sales Process
 Standard pricing
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 Customer acquisition
9. Prescriptive marketing
Prescriptive marketing analysis reviews marketing and customer data to inform sales
representatives of what to offer to which clients and when. This is an intuitive analytic and can be
a great resource for representatives by providing data on prospects and customers to help make
and repeat sales.
This is especially helpful for finding which consumers are more likely to become repeat
customers and which ones are unlikely to buy the organization's products or services again.
Tips for using sales analytics
Here are some tips for using sales analytics to improve the sales process:
Identify Key sales data metrics: It’s important to identify which metrics to use for tracking the
performance of the sales team and sales process to provide the best analysis. Consider these key
metrics:
conversion rate: In sales, the conversion rate is the percentage of leads that result in sales.
Tracking conversions is important to repeat and increase the number of conversions.
sales cycle length: This is how long it takes, on average, for a customer to move from lead
generation to the point of purchase. Measuring the sales cycle length can help you learn to shorten
and optimize the sales cycle.
Tracking churn rate: This is the number of customers who don't renew subscriptions to your
service. Tracking churn rate can help determine patterns and create strategies to improve customer
retention.
Sales productivity: All activity that involves engaging with customers and prospects, such as
emails, calls and advertisements, is a sales activity that can help measure how productive the sales
team is.
Use CRM software:
Using customer relationship management, or CRM, software to combine all the data a
business has on customers, including demographics and their individual sales process. Having a
software system to track customers helps sales representatives find opportunities to sell, qualify
leads and predict consumer behavior from past trends.
This can also help a sales professional determine customers who are unlikely to continue buying
products and services, allowing the organization to cease sending marketing and promotional
materials to that customer.
CONCLUSION:
An important step in the sales process is to follow up with customers after closing a sale.
This helps build customer relationships and a loyal customer base, which can ensure customer
retention. Following up means answering any concerns, thanking the customer and ensuring
customer satisfaction.

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MARKETING ANALYTICS
INTRODUCTION:
Modern marketing is a data-driven process fueled by analytics. Without analyzing relevant
key performance indicators (KPI), businesses can't tell whether their marketing efforts are
providing the expected return on investment (ROI). Marketing analytics is the key to evaluating
past performance and determining how to improve it going forward.
What is marketing analytics?
Marketing analytics is a set of technologies and methods used to transform raw data into
marketing insights. The goal of marketing analytics is to maximize ROI from an enterprise's
marketing initiatives. Marketing analytics encompasses tools for planning, managing, and
evaluating these efforts across every channel.
Marketers use established business metrics, and sometimes create new KPIs, to measure the
success of their organizations' marketing initiatives. These metrics include:

 Profitability segmented by demographic

 Churn rate

 Customer lifetime value

 Customer satisfaction

 Public perception

Businesses can analyze performance indicators alongside other data, such as customer profiles or
demographic trends, to reveal the causal links between marketing decisions and actual sales.
Benefits of marketing analytics
Marketing analytics makes advertising more effective and automates many rote tasks:

 Marketing analytics helps stakeholders achieve a comprehensive view across all marketing
channels, such as pay-per-click (PPC) advertising, email marketing, and social media. Analytics
can clarify the big picture, as well as dig down into more granular marketing trends.
 Marketing analytics tools improve lead generation by providing the insights needed to optimize
advertising efforts and target the most profitable consumers. Better leads generate more sales and
improved ROI.
 Marketing analytics provides insights into customer behavior and preferences. Businesses can then
tailor their marketing initiatives to meet the needs of individual consumers.
 Marketing analytics enables real-time decision support as well as proactive management. Modern
analytics tools make it easy for stakeholders to analyze data as it comes in, so marketing can be
adjusted as required by changing trends, and they also allow businesses to use predictive analytics
to anticipate those trends rather than react to them.
Challenges of marketing analytics
Enterprises should be aware of the challenges that come with using marketing analytics:

 Many organizations and their marketing teams still struggle to integrate data, which can keep
analysts and engineers from being able to access the information they need. Enterprises need to
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break down data silos that isolate information, as marketing analytics initiatives may flounder if
analysts lack access to data from all marketing channels. Organizations should centralize their
information in a data warehouse so analysts can work with integrated and accessible data.
 Enterprises need to ensure that they have management buy-in and personnel with analytics
expertise. Many marketers lack analytics experience, and some executives and marketing decision-
makers remain reluctant to make the up-front investments required in employees or infrastructure.
Take the time up front to evaluate existing obstacles to using analytics and make the hires
or pitches necessary to overcome them.
 Businesses need to select the right KPIs. Marketers can easily focus on metrics that are either too
granular or too unfocused. To avoid this, enterprises should link performance measurements to
concrete business requirements and objectives. For example, a retailer could choose a specific
goal, like increasing profits by 10%, and then select a limited number of KPIs related to that goal
that are appropriate for its industry, like sales per employee or average transaction value.
 Collecting any customer data involves privacy concerns. Organizations should establish data
governance and data security policies to ensure that their customers' sensitive information stays
protected.
How to use marketing analytics
Marketing analytics can benefit organizations' marketing initiatives across all channels.
Enterprises should consider the many applications of marketing analytics and determine which
may be valuable to them.

Understand search marketing

Many organizations access huge markets through search engines like Google, where
consumers often begin their purchasing journeys. Search engine marketing (SEM) promotes
businesses and raises online visibility through advertising on search engine results pages (SERP).
Revenue from digital advertising in the U.S. breaks new records every year, and search advertising
accounts for almost half of this revenue. Businesses can use services like Google Ads and Bing
Ads to expand their reach.
Organizations need marketing analytics to track and optimize the performance of their
SEM efforts. One application of SEM analytics might involve serving different versions of the
same ad to a randomized set of browsers and then comparing the performance of these ads in real
time.
Search engine optimization (SEO) involves adjusting web content and structure to improve organic
search engine rankings. An enterprise can use SEO to reach more consumers and enhance its brand.
Tools like Google Analytics allow businesses to track relevant KPIs and analyze how their SEO
initiatives are progressing and how to improve them.
Analyze social media engagement
More than a third of the world's population — including 98% of digital consumers —
spend time on social media, averaging almost two and a half hours per day on these platforms.
While SEM drives sales from customers who are searching for specific products, social media
marketing can generate interest and demand from new groups of consumers. Social media is now
the primary or sole marketing channel for many businesses and organizations, such as crafts sellers
on Pinterest, fashion brands on Instagram, and nonprofits on Facebook. Many social media
platforms offer their own analytics tools, such as Facebook Insights or Twitter Analytics, and third-
party options are available as well.
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Analyzing data obtained through social media platforms can provide valuable insights for building
business or customer relationships. For example, marketers can set up an account to automatically
post information about new products or features as they come out, use an analytics tool to evaluate
consumer sentiment through comments or reactions without manually sifting through the data, and
then rework their social media marketing as necessary.

Optimize email marketing

Though businesses can use email promotions to reach new audiences, email marketing is
more often concerned with existing customers who have opted in to mailing lists or have already
purchased products and services. Email provides a more direct gauge of consumer sentiment than
other channels, because existing customers are more likely to respond to surveys or interact with
advertised material. Popular email marketing tools include Salesforce Marketing Cloud, Mailjet,
and Autopilot.

Enterprises can use analytics to optimize and personalize email marketing efforts.
Analyzing how customers interact with different email promotions can help businesses target their
email marketing and tailor their messages to meet customer expectations and needs. Enterprises
can use marketing analytics to determine, for instance, whether customers respond well to certain
keywords, emails sent at particular times of day, or links to content on specific topics.

Take advantage of predictive scoring

Predictive lead scoring models leverage marketing data from all channels, as well as
internal data, to create a full picture of customer behavior, advertising potential, and marketing
opportunities. These models use machine learning to build consumer profiles, which organizations
can use to predict how consumers may react to different types of advertising and outreach.
Campaigns can then target individual customers to maximize efficiency. For example, a predictive
scoring system could rank individuals by likelihood of retention and risk of churning, which could
help prioritize outreach to an organization's customer base

CONCLUSION: (Marketing analytics and the data warehouse)

Enterprises should integrate their data before performing analytics, as analyzing data across
marketing channels can reveal new, unexpected insights. Centralizing information in a data
warehouse allows analysts and engineers to access it for analytics and reporting. Stitch provides a
data pipeline for replicating information to the data warehouse of your choice, making it easy to
integrate a wide variety of data sources.

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