Ssm lecture-01 & 02 (development and role of selling in marketing)

07/06/10 1
By :
Prof. Amit Kumar

07/06/10 2
“A student pursuing 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

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IILM-GSM
Selling & Sales Management

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Contents
• The Mystique of 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

07/06/10
Organizations, large or small, 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

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Robert Louis Balfour Stevenson (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

07/06/10
1. Positions where a 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:

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4. Positions where a 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:

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The Nature and Role of Selling
IILM-GSM
• 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.

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The Strategy Hierarchy
IILM-GSM
• 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.

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Company Mission Statements
IILM-GSM
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

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Strategy Hierarchy
IILM-GSM
• 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

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Strategy Hierarchy
IILM-GSM
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…..”

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Strategy Hierarchy
IILM-GSM
• 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.

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Strategy Hierarchy
IILM-GSM
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

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Strategy Hierarchy
IILM-GSM
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

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Strategy Hierarchy
IILM-GSM
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

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Strategy Hierarchy
IILM-GSM
• 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

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Strategy Hierarchy
IILM-GSM
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

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Strategy Hierarchy
IILM-GSM
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

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Strategy Hierarchy
IILM-GSM
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…..”

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Strategy Hierarchy
IILM-GSM
• 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

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Selling Approaches
IILM-GSM
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.

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Selling Approaches
IILM-GSM
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.

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Selling Approaches
IILM-GSM
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.

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Selling Approaches
IILM-GSM
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.

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Types of Selling
IILM-GSM
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

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Types of Selling
IILM-GSM
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.

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Types of Selling
IILM-GSM
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.

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Types of Selling
IILM-GSM
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.

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Types of Selling
IILM-GSM
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.

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Types of Selling
IILM-GSM
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.

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Selling
Function
Order
Takers
Order Getters
Order
Creators
Outside Order
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

Ssm lecture-01 & 02 (development and role of selling in marketing)

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