Chapter 15


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Chapter 15

  1. 2. Objectives <ul><li>To understand: </li></ul><ul><li>The nature and advantages of the sales function in an organization. </li></ul><ul><li>The variety and nature of sales positions. </li></ul><ul><li>The new focus and changing patterns in professional selling. </li></ul>
  2. 3. Objectives <ul><li>To understand: </li></ul><ul><li>The sales process. </li></ul><ul><li>Key issues in operating and evaluating sales force performance. </li></ul><ul><li>The scope and management of sales promotions. </li></ul><ul><li>The role of public relations and publicity in the marketing communications program. </li></ul>
  3. 4. Nature of the Sales Function <ul><li>Sales – process of selling products and services to customers </li></ul><ul><li>Sales function – responsible for sales </li></ul><ul><li>Selling – the communication of information to persuade a prospective customer to buy a product, service, or idea </li></ul><ul><ul><li>The creation of solutions </li></ul></ul>
  4. 5. Nature of the Sales Function <ul><li>The sales function is more likely to dominate when: </li></ul><ul><ul><li>The market is concentrated geographically. </li></ul></ul><ul><ul><li>Product value is not readily apparent. </li></ul></ul><ul><ul><li>The product has high unit value, is technical, or requires much explanation. </li></ul></ul><ul><ul><li>The product is tailored to a customer. </li></ul></ul><ul><ul><li>The sale involves a trade-in. </li></ul></ul><ul><ul><li>The product is at the introductory stage of its life cycle. </li></ul></ul><ul><ul><li>The firm does not have enough money for advertising. </li></ul></ul>
  5. 6. Pros and Cons of Selling <ul><li>Flexibility </li></ul><ul><li>Prospecting leads to the right customer </li></ul><ul><li>Progresses buying process faster </li></ul><ul><li>Expensive </li></ul><ul><li>Turnover </li></ul>
  6. 7. Scope of the Sales Function <ul><li>Two kinds of sales roles: </li></ul><ul><li>Inside selling </li></ul><ul><ul><li>Predominantly retail and call centres </li></ul></ul><ul><ul><ul><li>Proactive selling </li></ul></ul></ul><ul><ul><ul><li>Reactive selling </li></ul></ul></ul><ul><li>Outside selling </li></ul><ul><ul><li>Salesperson goes to customer </li></ul></ul>
  7. 8. Scope of the Sales Function <ul><li>Telemarketing </li></ul><ul><ul><li>Relies on proactive selling </li></ul></ul><ul><ul><li>Usually relies on outbound calls from a company to prospective customers </li></ul></ul>
  8. 9. The New Focus of Selling <ul><li>“Selling” may be a misleading term </li></ul><ul><ul><li>Sales personnel are providing service and building relationships </li></ul></ul><ul><li>Salespeople project the image of the firm </li></ul><ul><li>Salespeople also provide a valuable service role </li></ul><ul><ul><li>Ideally, they become a customer’s trusted partner </li></ul></ul>
  9. 10. The Nature of Sales Jobs <ul><li>Professional salespeople – Managers of a territory, with complete responsibility for relations with their customers </li></ul><ul><li>Other sales jobs: </li></ul><ul><ul><li>Driver salesperson </li></ul></ul><ul><ul><li>Inside ordertaker </li></ul></ul><ul><ul><li>Outside ordertaker </li></ul></ul><ul><ul><li>Missionary salesperson </li></ul></ul><ul><ul><li>Sales engineer </li></ul></ul><ul><ul><li>Consultative salesperson </li></ul></ul>
  10. 11. Changing Patterns in Sales <ul><li>The nature of the sales job is changing, reflecting changing market situations: </li></ul><ul><ul><li>Team selling </li></ul></ul><ul><ul><li>Systems selling </li></ul></ul><ul><ul><li>Global sales teams </li></ul></ul><ul><ul><li>Relationship selling </li></ul></ul><ul><ul><li>Telephone and Internet selling </li></ul></ul><ul><ul><li>Sales force automation </li></ul></ul>
  11. 12. The Sales Process- The 4 P’s of Sales! <ul><li>Prospecting </li></ul><ul><ul><li>Identifying prospects </li></ul></ul><ul><ul><li>Qualifying prospects </li></ul></ul><ul><li>Pre-approach </li></ul><ul><ul><li>Research on company, industry, decision makers </li></ul></ul><ul><li>Presenting </li></ul><ul><ul><li>AIDA </li></ul></ul><ul><li>Post-purchase service </li></ul><ul><ul><li>Build goodwill, service recovery, follow up with sales </li></ul></ul>
  12. 13. Managing a Sales Force <ul><li>Recruitment often involves extensive screening </li></ul><ul><li>Extensive sales force training is often needed </li></ul><ul><li>The sales force must be supervised and managed </li></ul><ul><ul><li>Their performance has to be evaluated </li></ul></ul><ul><ul><li>Compensation systems must be put in place </li></ul></ul>
  13. 14. Compensating the Sales Force <ul><li>Straight salary </li></ul><ul><li>Straight commission </li></ul><ul><li>Combination plan </li></ul><ul><li>Reward for excellent customer satisfaction, service, and relationships. </li></ul>
  14. 15. Evaluating Sales Performance <ul><li>A system must exist to evaluate performance </li></ul><ul><ul><li>Basis for training programs and rewards </li></ul></ul><ul><li>Quantitative bases for performance review: </li></ul><ul><ul><li>Sales generated, number of orders, closing rate, number of calls made </li></ul></ul><ul><li>Qualitative bases for performance review: </li></ul><ul><ul><li>Product knowledge, preparedness for calls, success in establishing relationships, appearance, and attitude </li></ul></ul>
  15. 16. Sales Promotion <ul><li>Sales promotions stimulate short-term sales through non-advertising means: </li></ul><ul><ul><li>Coupons, contests, samples, displays, premiums, trade shows </li></ul></ul><ul><ul><li>Consumer promotions- directed at end consumers </li></ul></ul><ul><ul><li>Trade promotions - directed at members of the distribution channel </li></ul></ul>
  16. 17. Pepsi Stuff <ul><li>First frequent buyer program in soft drink marketing </li></ul><ul><li>Product of cola wars </li></ul><ul><li>Over 4.5 million items worth more than $125 million awarded </li></ul><ul><li>4 billion packaging units delivered 7 billion potential Pepsi Points to consumers </li></ul><ul><li>Gave consumers tangible value </li></ul><ul><li>Part of integrated MC </li></ul><ul><li>Source: Taylor, R. (2006, Mar 1). “Pop Go the Points.” Promo Magazine . Retrieved from the </li></ul><ul><li>World Wide Web on November 19, 2007 from http:// / . </li></ul>
  17. 18. Sales Promotion <ul><li>Growing in popularity: </li></ul><ul><ul><li>Short-term results </li></ul></ul><ul><ul><li>Competitive pressure </li></ul></ul><ul><ul><li>Buyers’ expectations </li></ul></ul><ul><ul><li>Low levels of retail selling </li></ul></ul><ul><ul><li>Door openers </li></ul></ul>
  18. 19. Management of Sales Promotion <ul><li>Must be integrated with MC plan </li></ul><ul><li>Beware of short-lived results </li></ul><ul><li>Outline: </li></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><li>Strategies </li></ul></ul><ul><ul><li>Budget </li></ul></ul><ul><ul><li>Tactics </li></ul></ul><ul><ul><li>Evaluation </li></ul></ul>
  19. 20. Sales Promotion Objectives <ul><li>Stimulate demand </li></ul><ul><li>Improve salespeople and intermediary performance </li></ul><ul><li>Encourage intermediary and salespeople support </li></ul>
  20. 21. Sales Promotion Techniques <ul><li>End users, intermediaries, producers </li></ul><ul><ul><li>Nature of target </li></ul></ul><ul><ul><li>Communications objective </li></ul></ul><ul><ul><li>Nature of the product </li></ul></ul><ul><ul><li>Cost of the technique </li></ul></ul><ul><ul><li>Current economic conditions </li></ul></ul><ul><li>Evaluation easier because of shorter time span </li></ul>
  21. 22. Public Relations <ul><li>Develop and maintain a positive public image for an organization, its products, and its policies </li></ul><ul><li>Often a division in a company </li></ul><ul><ul><li>i.e. Aliant </li></ul></ul>
  22. 23. Publicity <ul><li>Any communication about an organization, its products, or policies, through the media that is not paid for by the organization </li></ul><ul><ul><li>Press release, news conference, lobbying </li></ul></ul><ul><ul><li>Costs less, timely, informative </li></ul></ul><ul><li>Dove- Campaign for Real Beauty </li></ul>