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Development and Role of
Selling in Marketing
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
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.)
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.
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
Types of selling
 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
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.
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
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)
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.
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
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.
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
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.
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.
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
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
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
The Product life cycle
Product Adoption and Diffusion
Consumers are divided into to 5 categories also called as adaptors
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)
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.
Cost Consideration
Break even point
Sales revenue
costs
Profit
Sales revenue
Variable costs (b)
Fixed costs (a)
output
loss
Total costs (a + b)
Implementing the Marketing Concept
 Distribution
The selection of distribution channel
Determining the level of customer service
Terms and conditions of distribution
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
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
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
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.
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.
 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
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.
THANK YOU

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Developing Sales Through Marketing Concepts

  • 1.
  • 2. Development and Role of Selling in Marketing
  • 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.