Contains about basics of sales management, Background, Selling as a career, B2C and B2B Markets, Different marketing concepts, Product Life Cycle, Relation between sales and marketing, Implementing the market concept, segmentation in B2C &B2B market.Adoption & Diffusion theory, Image of selling. Types of selling.
3. Background
In any business activity most discussed part is of selling
whether it may be direct or indirect discussion.
Misconception about selling and salespeople.
Role of selling has changed in the modern era.
Selling and sales management are closely related but not the
same
4. Nature and Role of Selling
Selling involves the set of principles and techniques as well as
substantial personal skills.
Companies spend large amount of money on sales training
Sales comprise of many different situations. (Standard sales,
customized sales, delivery, etc.)
5. Characteristics of modern selling
Customer retention and deletion – ( 80 -20 principle, key account
management)
Database and Knowledge management- (way of storage, way
of communication, gather competitor information)
Customer relationship management- (focus on long term
relationship, should create win-win situation, setting up
dedicated team to manage customers)
Marketing the product- ( not limited to planning and giving
presentation – involved in each stage of product development
and marketing)
Problem solving and system selling – (sales person acting as
consultant, should know beyond the product)
Satisfying needs and adding value- Educate the customer, eg-
production line in companies.
6. Success factors for professional
salespeople
Listening skills
Follow-up skills
Ability to adapt sales style from situation to situation
Tenacity- sticking to the task
Organizational skills
Verbal communication skills
Proficiency in interacting with people
Ability to overcome objectives
Closing skills
Personal planning and time management skills
8. Order- takers
Inside order takers- customer has full freedom to purchase any
product
Delivery Salesperson – person delivery the product to door step.
(eg- delivery boy of food-tech company)
Outside order-takers – main function is to respond to customer
request.
Order- creators
Missionary salespeople – salesperson influence others to make sales
of their products
Order-getters
Technical support salespeople- need technical assistant for installing
technical products
Merchandisers – provides sales support to dealers and wholesalers
9. B2C and B2B marketing and selling
Business to consumer (B2C)
markets
Customer purchases products
and services for their own
consumption individually.
The main types of consumer
markets –
- Fast moving consumer goods
(FMCG) – low price and people
prefer to buy frequently - non
durable products .
- Semi-durable consumer goods–
eg- shoes, cloths, soft furnishing
etc.
- Durable consumer goods– good
life with less frequency of buying.
10. B2C and B2B marketing and selling
Business to business markets (B2B)
- Large buyers
- Customer are more educated
- Strong negotiation is required
- Selling period is often more (3- 6 months or
years)
- Price is the main concern
- Eg- consultancy, technical services,
automobile parts dealers, etc
11. Selling as a Career
Among three categories order taker are given
more rewards as their remuneration rests of some
commission or incentives.
No specific parameters to judge whether person
is fit for sales.
Some important qualities that should be
recognised for sales kind of jobs
1. Empathy and an interest in people (identify what
customer needs)
2. Ability to communicate (1st listen and then
communicate)
3. Determination (focused)
4. Self discipline and resilience (dedicated,
punctual and should handle rejections)
12. Image of Selling
Misconceptions about selling –immoral, dishonest,
unsavoury, trust issues, etc.
Selling is not a worthwhile career
Good products will sell themselves
Something immoral about selling
Low status
Lonely existence
Discomfort
But the facts are there is nothing immoral or
scrupulous about selling, it’s a worth while
career, Good products does not sell
themselves- someone should be their to define
benefits of products.
13. The Nature and Role of Sales Management
Not limited to planning, organising and controlling.
Sales manager are expected to look after marketing strategies and selling
that should go on hand to hand.
Integrated approach towards selling and marketing activates
Awareness about modern development in HRM, recruitment and training
Communication and listening skills
Forecasting and budgeting
Time management and knowledge possession
Coaching and motivational skills
Leadership and empowerment skills
Adaptability
Sales force evaluation and control
14. The Marketing Concept
The business is traditionally centred on four main business philosophies also termed
as concepts or orientations
1. Sales or selling orientation
- The consumers will not buy enough products unless the organisation unless the
organisation takes a large- scale selling and promotion efforts .
- Focus of company is to sell product rather than understanding what customer
wants.
- Eg- hardware companies with large production. Hotels having low occupancy
during off season.
15. The Marketing Concept
2. Production orientation
- A philosophy that consumers will accept those products which are
available and highly affordable and the management focuses on
improving production and distribution of products
- - This orientation only work where there is limited product differentiation.
- Eg- Ford automobiles believed in mass production
16. The Marketing Concept
3. Product Orientation
The consumer will favour products that offer most quality,
performance and features, and that the organisation therefore
devote its energy to make continuous product improvement.
Negative outcome may be company can price the product very
high.
To match competitor’s price company can damage their profits as
compare to energy that company has invested in improving the
product.
17. The Marketing Concept
4. Marketing Orientation
This philosophy states that achieving organisational goals depends on
determining the needs and wants of target markets and delivering the
desired satisfactions more effectively and efficiently than competitors
do.
Customer focus and values are the path to sales and profits.
Company invest on those product improvement which helps to fulfil
the needs of customers
More focus is on needs and wants of the customers
Customer needs should be placed at the centre of business planning.
18. Implementing the Marketing Concept
Market segmentation and targeting
Market segmentation is the process of identifying those clusters of
customers which share similar needs and wants and will respond in
unique way to given marketing efforts.
Targeting means implementation of marketing efforts to those cluster
of customers to influence them to purchase products or services.
Benefits of segmentation and targeting
1. Clear identification of market opportunities
2. Design of products or services
3. Focusing on market and sales efforts on those segments
Eg – Online gaming, firstcry.com
19. Implementing the Marketing Concept
Segmentation for Consumer
products/ Markets
• Segmentation for industrial
products and markets
• Age
• Gender
• Income
• Social class
• Geographical location
• Type on residence
• Personality
• Usage rate
• Type of industry
• Product application
• Benefits
• Company size
• Geographical location
• Usage rate
20. Implementing the Marketing Concept
The Marketing Mix
Marketing Concept can be best altered with combination of
segmentations and marketing Mix (Product, Price , Promotion, Place)
1. Product
Most important ingredient of marketing mix.
Product can fail if not backed my proper promotion, advertising,
pricing and distribution
Consumer buys the package of benefits not the specifications
22. Product Adoption and Diffusion
Consumers are divided into to 5 categories also called as adaptors
23. Implementing the Marketing Concept
Price
Offers, discounts , credits, cashbacks, etc
Selecting competitive strategy
Want to increase market share or focused on differential
strategies.
Market Penetration (low price and heavy promotion)
24. Implementing the Marketing Concept
Demand Consideration-
The demand curve
contains useful information
for decision makers.
Too low price could be
perceived by the customer
as poor quality.
25. Cost Consideration
Break even point
Sales revenue
costs
Profit
Sales revenue
Variable costs (b)
Fixed costs (a)
output
loss
Total costs (a + b)
26. Implementing the Marketing Concept
Distribution
The selection of distribution channel
Determining the level of customer service
Terms and conditions of distribution
27. Implementing the Marketing Concept
Communications-
Communications sub-mix comprise of advertising, sales promotion,
publicity and sponsorships
A concept of marketing communications planning that recognizes
the added value of a comprehensive plan that evaluates the
strategic role of a communication disciplines and combines them
to provide clarity, consistency and maximum communications
impact
28. The Marketing Mix in B2C and B2B
Market
The Marketing Mix in B2C
Product – Branding, Packing, logos and design are more important.
Product standardization
Continuous upgrading and innovation
Promotion- Direct promotion through adverting.
No personal selling required
Targeting mass population
Price – usually non negotiable
Competitor’s price affect a lot as products arte sold in large quantity with low prices
Place – Distribution happens through intermediaries
Location should be center place so that customer can approach quickly
29. The Marketing Mix in B2C and B2B
Market
The Marketing Mix in B2B
Product- Product specification, aftersales service,
Reliability of the product.
Promotion- requires direct marketing.
Personal selling, extensive promotion is required.
Price – Difficult to set fixed price
Huge scope for negotiation on both the ends
Takes time to finalize the deal
Place – just in time delivery
Logistics and Distribution
30. Relationship Between Sales and
Marketing
In Marketing oriented company, the marketing function takes on much
wider controlling role across the range of company activities
Sales is just a part of overall marketing activates
All marketing activities should be equality aligned
Personal selling is also important
Target market choice
Differential advantages – (Price concessions, effectively
communicating benefits and offers to customers,
With support of senior management conflict between marketing and
communication can be reduced.
31. Relationship Between Sales and
Marketing
Marketing strategy will determine if there is a need for a salesforce to
accomplish there jobs.
Marketing objectives are defined in – Sales Volume, Market share,
profitability, service levels, salesforce costs
Salesforce strategy defines how those objectives will be achieved in terms of
– call rates, percentage of calls on existing versus potential customers,
discount policy, customer feedback, improving customer relationships.
32. Sales Buy-In
Sales buy-in as the sales function’s belief that a proposed marketing strategy
or initiative is appropriate and has merit.
Relationship Between Sales and
Marketing
Objectivity and rational
persuasion
Sensitivity and
responsiveness to reality
Involvement in strategy
creation
Positioning for success
Sales
Buy-in
33. Relationship Between Sales and
Marketing
Objectivity and rational persuasion- Marketing manager should
share fact based data to support their cases
Sensitivity and responsiveness to reality – Marketing personnel
should encourage salesperson to share their field experience.
Verbal or informal conservation
Involvement in strategy creation – Salespeople should be included
in strategy making decisions
- Cross functional teams involvement
Positioning for success – Salespeople should believe that marketing
efforts are taken to position them strongly in marketplace.