Downloaded 143 times
Uploaded byRevisiting Strategy
Ssm lecture-01 & 02 (development and role of selling in marketing)
This document discusses the nature and role of selling, as well as different selling approaches and types of salespeople. It begins by explaining that selling involves making sales and is important for linking companies to customers. Some key selling approaches discussed are transactional, consultative, and enterprise selling. Salespeople are also classified as order takers, order creators, or order getters depending on their role in the sales process.
More Related Content
Similar to Ssm lecture-01 & 02 (development and role of selling in marketing)
Ssm lecture-01 & 02 (development and role of selling in marketing)
- 1. 07/06/10 1 By : Prof.Amit Kumar
- 2. 07/06/10 2 “A studentpursuing management education from IILM- Graduate School of Management, for example may find himself or herself placed in a firm as a Sales Manager. Our goal is to prepare the student for the exciting challenges related to leading sales organizations in today’s hyper-competitive global economy”. IILM-GSM Importance of this course Selling & Sales Management
- 3. 07/06/10 IILM-GSM Selling & SalesManagement
- 4. 07/06/10 Contents • The Mystiqueof Super Salesmanship • The Nature and Role of Selling • The Strategy Hierarchy • Selling Approach • Types of Selling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing
- 5. 07/06/10 Organizations, large orsmall, are into selling something or the other for their survival and growth. It may be a product (shampoo, steel or toothpaste), service (airline, insurance), idea (patriotism), concept (family planning), destination (India, Brazil) or person (politician). IILM-GSM Introduction to Sales Management Selling & Sales Management Development & Role of Selling in Marketing
- 6. 07/06/10 Robert Louis BalfourStevenson (13 November 1850 – 3 December 1894) was a Scottish novelist, poet, essayist and travel writer. His most well known books include ‘Treasure Island and Kidnapped’. He said 'everybody is surviving on selling something to someone'. IILM-GSM Introduction to Sales Management Selling & Sales Management Development & Role of Selling in Marketing
- 7. 07/06/10 1. Positions wherea salesperson's job is predominantly to deliver a product, e.g. milk, bread, oil, gas 2. Positions where a salesperson's job is predominantly an internal order taker, e.g. the counter sales clerk 3. Positions where a salesperson's job is predominantly an internal order taker but works in the field e.g. as a pizza boy, soap seller, spice seller IILM-GSM Robert N McMurry in his famous article 'The Mystique of super salesmanship' in Harvard Business Review (March-April 1961, p.114) classified a salesperson's position in the following ways: Selling & Sales Management Development & Role of Selling in Marketing
- 8. 07/06/10 4. Positions wherea salesperson is not expected or permitted to take an order but is called only to build goodwill or to educate an actual or potential user, e.g. medical representative 5. Positions where emphasis is placed on technical knowledge, e.g. salesperson selling engineering or computer equipment 6. Positions which demand the creative sale of tangible products, such as vacuum cleaners 7. Positions requiring the creative sale of intangibles, such as insurance, advertising and education IILM-GSM Robert N McMurry in his famous article 'The Mystique of super salesmanship' classified a salesperson's position in the following ways: Selling & Sales Management Development & Role of Selling in Marketing
- 9. 07/06/10 9 The Natureand Role of Selling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing • The simplest way to think of the nature and role of selling (traditionally called salesmanship) is that its function is to make a sale. • Companies spend large sums of money training their sales personnel in the art of selling. • The reason for this attention to personal selling is simple: in most companies the sales personnel are the single most important link with the customer. • The term selling encompasses a variety of sales situations and activities.
- 10. 07/06/10 10 The StrategyHierarchy IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing • A strategy is a plan designed to accomplish a mission. • A mission is a set of objectives. • Once the mission’s objectives are set, strategy can be created.
- 11. 07/06/10 11 Company MissionStatements IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing IBM will be driven by these values: • Dedication to every client’s success • Innovation that matters, for our company and for the world Coca-Cola • To refresh the world ..in body, mind, and spirit Dell • Delivering the best customer experience in markets we serve IILM-GSM • Pursuit of education, scholarship and research at the highest levels of excellence. Chick- Fil -A • Be American’s best quick-service restaurant
- 12. 07/06/10 12 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing • A firm’s corporate strategy encompasses its plan and goals for the entire organization. • Once the company’s strategy is formulated, it is then communicated to various business units- marketing, sales, manufacturing, and so forth- who create their own plans to support the corporate strategy. The flow of the strategy from the organization level to the unit level is called the strategy hierarchy. CORPORATE STRATEGY
- 13. 07/06/10 13 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing An abbreviated example of how a firm’s strategy might be different at different levels of the organization. CORPORATE STRATEGY “To be a leader in womometer technology” MARKETING STRATEGY “To sell womometer to space engineers and to hydraulic engineers at a premium price” SALES STRATEGY “To sell to NASA, Boeing, and Rockwell International using a key account structure, a consultative approach, with account executives on straight salary…..”
- 14. 07/06/10 14 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing • Note that firm’s marketing plan is likely to precede its sales plan. This order does not imply that sales executives do not participate in the process until after the firm’s marketing plan is done. • Rather, marketing and sales work together to create an overall marketing strategy. • Then the sales executives must create the action plans specifically for salespeople to carry out the strategy.
- 15. 07/06/10 15 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing At the marketing level, planners have to answer the following four questions: 1. What markets do we serve with what products? 2. What type of relationship do we form and with whom? 3. What level of investment will be required, and how will we locate and allocate the needed resources? 4. What are the detailed objectives and action plan? MARKETING STRATEGY
- 16. 07/06/10 16 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing 1. What markets do we serve with what products? MARKETING STRATEGY CURRENT MARKET NEW MARKET Market Penetration HP creates “full line contracts” to encourage customers to buy all HP products MARKETS PRODUCTS CURRENT NEW Product Development Dell adds consumer electronics such as cameras Diversification Carlson Marketing expands from selling promotional trips to promotional products, such as cups and caps Market Development Intel sells computer chips for use in John Deere tractors
- 17. 07/06/10 17 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing 1. What type of relationship do we form and with whom? • Companies do not operate in a vacuum- they have suppliers, customers and competitors who operate in a network: touch one and like, ripples in a pond, others are affected. • Customer Life Time Value concept (Sum of all of the purchases made over a customer’s lifetime, is worth a significant amount) • Customer Relationship Management MARKETING STRATEGY
- 18. 07/06/10 18 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing 1. What level of investment will be required, and how will we locate and allocate the needed resources? • This includes money but also human & social capital. • Human capital refers to the people that make up an organization. • Social capital, or the ties that the firm has with others, can also be drawn upon as a resource. At its simplest, social capital is who owes you a favor or who can be asked a favor. MARKETING STRATEGY
- 19. 07/06/10 19 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing 1. What level of investment will be required, and how will we locate and allocate the needed resources? An historic example dating from early eighties concerns Chrysler. At one point, the firm was within days of declaring bankruptcy when David, the CEO of Xerox Corporation, called Lee Iacocca, the CEO of Chrysler. Kearns asked Iacocca how many cars needed to be sold for the company to stay afloat. Chrysler, after all, was a good Xerox customer. Iacocca told him, and David responded by placing an order for that many. The social capital between the two firms saved Chrysler and put both of them to solid footing. MARKETING STRATEGY SOCIAL CAPITAL
- 20. 07/06/10 20 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing 1. What are the detailed objectives and action plan? One set of criteria for establishing objectives is the SMART format. For example, an objective to simply ‘increase market share’ is not specific enough. As a manager, you need to ask yourself, by how much do we need to increase market share? If the objective is to increase customer loyalty, you need a way to measure customer loyalty, perhaps by recording the number of repeat customers make. If the objective is to double market share, you need to ask yourself whether such an ambitious goal is achievable or even realistic. Finally, the objective need to be time-based. When will it be met? In the next month, year, or decade? MARKETING STRATEGY
- 21. 07/06/10 21 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing An abbreviated example Of how a firm’s strategy Might be different at Different levels of the Organization. CORPORATE STRATEGY “To be a leader in womometer technology” MARKETING STRATEGY “To sell womometer to space engineers and to hydraulic engineers at a premium price” SALES STRATEGY “To sell to NASA, Boeing, and Rockwell International using a key account structure, a consultative approach, with account executives on straight salary…..”
- 22. 07/06/10 22 Strategy Hierarchy IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing • Selling Approaches 1. Transactional 2. Problem solving or Consultative 3. Affiliative 4. Enterprise Selling • Types of Selling 1. Order taker sales people 2. Order creators 3. Order getters • Selling Process SALES STRATEGY
- 23. 07/06/10 23 Selling Approaches IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing Transactional – It is designed to get the sales over with as quickly as easily as possible. – The key to success is making as many calls as possible; little thought is given to the life-time value of customers. – Life insurance salespeople who have only one product to sell-once a buyer has bought it there is nothing else to sell so the salesperson moves on. – The simple product also tend to be sold this way.
- 24. 07/06/10 24 Selling Approaches IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing Problem solving or Consultative – It involves identifying and solving a client’s problems; for this reason, it is also called needs-satisfaction selling or problem/solution selling. – The process typically involves asking prospective clients a number of questions in order to determine their needs and then presenting solutions to those needs.
- 25. 07/06/10 25 Selling Approaches IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing Affiliative Selling – It is based on the friendship between the salesperson and the individual buyer. – Tupperware and Premier Jewellery parties rely heavily on affiliative selling. – Friendship is also an important component of B2B selling. – For example, if all products a buyer is considering are the same, but post-sales service is critical, the buyer will be inclined to purchase products sold by a friend who can be counted upon.
- 26. 07/06/10 26 Selling Approaches IILM-GSM Selling& Sales Management Development & Role of Selling in Marketing Enterprise Selling – It is a B2B concept that reflects, a strategic partnership between the buying and selling organizations. – It is called enterprise selling because it is based on not only person-to-person relationships but on company-to- company relationships. – Moreover, the customer is not just one person but an entire company. When engage in enterprise selling, a salesperson will, at times, utilize affiliative selling, transactional selling and consultative selling all within an enterprise-level selling.
- 27. 07/06/10 27 Types ofSelling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing Selling is classified as order takers, order creators and order getters. Order takers respond to the already committed customers. The order creators do not directly receive orders since they talk to specifiers rather than customers. The order getters attempt to persuade customers to place an order directly. 1. Order taker sales people 2. Order creators 3. Order getters
- 28. 07/06/10 28 Types ofSelling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing 1. Order Taker Sales People Inside order takers are the retail sales assistants. A customer choose a variety of products from the range available in a store without the presence of a salesperson. A sales assistant’s role is to complete the transaction. He receives payment and passes the goods to the consumers. This is done in superstores such as Wal-Mart, Big Bazaar and other chain stores. In telemarketing, the salespeople take the order over phone and deliver products at the customer’s addresses. The job is delivery salespeople is to deliver the products to the customers. The salespeople that deliver milk, newspapers, magazines and Pizzas can be called delivery salespeople.
- 29. 07/06/10 29 Types ofSelling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing 1. Order Taker Sales People They do not try to sell products or increase the consumption level of existing customers, however, winning and losing of orders is dependent to a great extent on the reliability and promptness of the delivery salespeople. The outside order takers visit the customers regularly and their primary concern is to respond to the customer calls rather than seek new customers. They do not deliver anything at the customer’s place. They make sales call and take orders from the customers. The salespeople from Eureka Forbes are included in this category.
- 30. 07/06/10 30 Types ofSelling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing 2. Order Creators Missionary salespeople are the seller staff who normally do not close a sale but persuade the customers to promote a seller’s brand. Medical representatives, for example, do not make direct sales as the doctors do not buy the medicines personally but prescribe the medicines to the patients. Therefore, Medical representatives are called missionary salespeople. In this kind of selling, the objective is to educate and make the people aware of the product rather than closing a sale.
- 31. 07/06/10 31 Types ofSelling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing 3. Order Getters These are the set of people whose objective is to persuade the customers to make a direct purchase. They are the front line salespeople who go door to door to sell products. The function of new business salespeople is to persuade new buyers and non- users to buy a company’s products and services. The executive in charge of the business development in any advertising agency come in this category. They always look at people who have previously not used the services of the agency. They undertake prospecting and convert the leads to final sales.
- 32. 07/06/10 32 Types ofSelling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing 3. Order Getters The consumer salespeople comprise the door-to-door salesperson who sell spices, eatables, encyclopedia, insurance and other personal products for individual consumption. The second group of order getters provides sales support to the front line salespeople. The technical support salespeople support the front line salespeople when the product is technically complex or it needs negotiations demanding financial attention of the company. They go as a part of a key account management team or temporarily for a particular business deal. The merchandisers provide sales support in retail and wholesale selling situations.
- 33. 07/06/10 33 Selling Function Order Takers Order Getters Order Creators OutsideOrder Takers Inside Order Taker Merchandisers Delivery Sales People Missionary Sales People New Business Sales People Organizational Sales People Consumer Sales People Technical Support sales People Front Line Sales People Sales Support Sales people Types of Selling IILM-GSM Selling & Sales Management Development & Role of Selling in Marketing
Editor's Notes
- #3 To arm or prepare in advance of a conflict The part of the arm between the wrist and the elbow.
- #6 Concept is idea We have 10 things which is being marketed. Goods- companies market cars, trucks, machines, chemicals, cosmetics, television sets, machine tools etc… Services- Airlines, Hotels, Car Rentals firms, Barbers & Beauticians, Maintenance & Repair people. Events- time based events such as trade shows, artistic performances & company anniversaries. Global events such as Olympics or world cup/IPL. Experiences- customers, by taking different rides in amusement park or water park enjoy the thrill provided by these experiences. also watching solar-eclipses on aero plane etc. Persons- Celebrity marketing is a famous business. Famous management consultant Tom Peters has advised each person to become a “brand”. Places- Bangalore is positioned as “Silicon Valley” of India. Kerala as “God’s own country&quot;. The govt. of India is marketing India as a tourist destination through the “Incredible India” advertisement campaign. Properties- Properties are intangible rights of ownership of either real property (real estate) or financial property (stocks & bonds). Organizations- Organizations actively work to build a strong, favorable, and unique image in the minds of their target publics. Universities, museums, performing art org. and NGO’s all use marketing to boost their public image. PHILIPS- “Let’s Make Things Better” In UK TESCO- “Every Little Bit Helps” Information- Information can be produced and marketed as a product. This is what schools & universities produce and distribute at a price to parents, students and communities. also Encyclopedia. Ideas- Every market offering includes a basic idea. Products & services are platforms for delivering some idea or benefit. Promoting awareness about AIDS, encouraging family planning and discouraging smoking are ideas that fall in the realm of social marketing.
- #9 Whether you sell a product, provide a service or are a politician - your success depends on how well you understand and implement the dynamics of Creative Selling. There are basically three types of selling . . . charismatic, classical and creative. In charismatic selling, you become part of the value along with the product or service. A person buys because he/she likes you. The exact same product or service may be had from many sources but because the individual connects with you, they will purchase from you. You become an important part of the sale as you add worth and assurance. Classical selling is selling benefits, value, uniqueness, product or service as a problem solver. The buyer sees the product or service as filling a need, and buys that resolve. They will hardly remember the salesperson. The byers objective is in fulfilling their need no matter who the sales person is. . Creative selling is simply the art of allowing the prospect to sell himself/herself. You just act as a guide in the process. Pointing out those things that the prospect finds most stimulating. You help the prospect build a mental picture so he/she can see himself/herself using, and enjoying its benefits. Help the prospect to focus on the product so he/she may experience the feeling of ownership. Give the prospect an awareness of the relationship between your product and the &quot;good life&quot; that he/she longs for. Turn the product into a living, breathing, vital thing. Creative selling is more than a few words. It&apos;s a continuous process of letting the prospect know that his/her welfare is very important to you. No matter what you sell, you must be less concerned with the product than you are with the prospect. Forget about how much you are going to make on the sale, that&apos;s a result of you doing your job right. The only thing of importance is the prospect -- and the filling of his/her desires. A few simple rules can guide you toward the goal of creative salesmanship - and do wonders for your pocket book. know the product - the better you know the product the better you can relay its benefits and engage the prospect in it. Know your market - where can you find new markets for your product? Are there any new uses for it? Are you selling to the right demographics? Know your prospects - are you filling the prospects needs? Are you addressing his/her concerns? Know what you are going to say - before you talk to the prospect, prepare your presentation and know just how you&apos;re going to present it. Know the answers for every stall or objection the prospect will bring up. Great athletes practice and practice and practice, until they master the game. You must commit yourself to being a master of salesmanship. Know you&apos;re going to close the sale - feel in your mind that the prospect needs what you are offering and that he/she will buy it. See yourself fulfilling the customers needs. Embrace the customer and his/her desires as your own. Be thankful and happy you are part of their buying experience.
- #10 We have seen different position of a salesman according to different activities in M of S Sal.. Different situations we have maintanance selling and developmental seeling
- #11 General level of strategy in org are corporate, divisional, business, functional which is marketing, R&D, Promotion etc.. Under functional..we have marketing ..and nder marketing we have sales strategy We can say.. The flow of the strategy from the organization level to the unit level is called the strategy hierarchy.
- #13 Org level means corporate level to unit level means functional level Means top management are responsible for creating the vision and mission statements ..accessing the growth opportunity..refine their businesses frim product centric to cutomer centric like … Columbia Picture: We made movies We market entertainment Britannica: We sell encyclopedia We distribute information
- #14 Marketing strategy of dell to target corporate customer..but selling strategy is to sell to IBM, Infosys or TCS
- #15 Means top management are responsible for creating the vision and mission statements ..accessing the growth opportunity..refine their businesses frim product centric to cutomer centric like … Columbia Picture: We made movies We market entertainment Britannica: We sell encyclopedia We distribute information
- #17 Ansoff matrix or ansoff product-market grid
- #18 We have not discussed holistic marketing concept yet,.. CRM strategies include customera acquisition, customer growth and customer retention strategy
- #21 Specific, measurable, achievable yet challenging, realistic , time based
- #23 Stages in Selling Process Pre-sale Preparation Prospecting Pre-Approach before Selling Approach to the Customer Sales Presentation Handling Customer Objections Closing the Sale Follow-up Action
- #24 Lifetime value is typically used to judge the appropriateness of the costs of acquisition of a customer. For example, if a new customer costs $50 to acquire (CPNC, or Cost Per New Customer), and their lifetime value is $60, then the customer is judged to be profitable, and acquisition of additional similar customers is acceptable. For this reason, the costs involved in the first purchase are typically not included in LTV, but rather, in the Cost Per New Customer calculation. epresents exactly how much each customer is worth in monetary terms, It represnts the present value of the customer, in terms of the future buying Theses are four basic model of selling
- #25 Theses are four basic model of selling
- #26 Networking company like modi group, JVM group, Ambay..where one friend sells to another friend by taking him in confidence Kind of system selling ..talking about..buying whole system from one buyer in B2B buying
- #27 Theses are four basic model of selling Kind of system selling ..talking about..buying whole system from one buyer in B2B buying Partner: An advocate becomes a partner when they become actively involved in the decisions of the company. E.g. kind of Relationship exists between P&G and Wal Mart.Wal Mart shares the scanner data from its check out counters in its over 4500 stores through the satellite. It helps P&G plan its production, better management of its production runs and keep its inventories low as it no longer depends on sales forecast but actual sales data.Wal mart gains as it does not have to keep inventories, get faster replenishments. Relationship between FedEx and IBM where FedEx stocks IBM’s spare parts in its own warehouses and delivers them across the world on instructions from IBM’s service personnel. Some of the organizational buying situations are: Straight rebuy Modified rebuy New task buy Systems buy Systems buying is a process in which the organization gives a single order to a single organization for supplying a full system. The buying organization knows that no single party is producing all the units in the system. But it wants the system seller to engineer the system, procure the units from various vendors and assemble, fabricate or construct the system.