SELLING AND

SALES MANAGEMENT
Birat Shrestha
BBA Hons/Emph, KUSOM
August 20, 2018
BOOK REFERENCE

Selling and Sales Management -

David Jobber, Geoff Lancaster,
Prentice Hall, 8th edition

Management of Sales Force,

Rosann L. Spiro, William J. Stanton, Gregory A. Rich,
11th Edition, 2011, Tata Mc Grawhill
1. PERSONAL SELLING AND MARKETING
INTRODUCTION
 Selling is about convincing with rational and
emotional aspects
 Sales management is about identifying the
prospects and planning a strategy to reach and
convince them
 Selling is done by everyone directly or indirectly

 Some are participating in selling as the consumer

 Selling and sales management, although closely

related have different meanings
 The place of marketing within the firm and the
place of selling within marketing
THE NATURE AND ROLE OF SELLING

 Making a sale – traditional view

 It involves principles, techniques, selling tasks and
personal skills
 Sales personnel are the single most important link
with the customer
 The success of the company lies in the effectiveness of
sales-force
 This frontline role of the salesperson means that for
many customers the salesperson is the company
 The wide diversity of selling roles – capital equipment,
industrial products to consumer products and services
THE NATURE AND ROLE OF SALES
MANAGEMENT
 The sales manager is expected to play a much more
strategic role in the company and is required to make a key
input into the formulation of company plans
 The sales manager also needs to be familiar with the
concept of marketing to ensure that sales and marketing
activities are integrated
 The sales manager needs to be able to analyze and direct
the activities of the sales-force towards more profitable
business
 Determining sales-force objectives and goals
 Forecasting and budgeting
 Sales-force organization, sales-force size territory design and
planning;
 Sales-force selection, recruitment and training
 Motivating the sales-force
 Sales-force evaluation and control
 CHARACTERISTICS OF
MODERN SELLING
Customer Retention
Database and
and Deletion
Knowledge
Management

Adding Value and

Satisfying Needs Customer
Relationship
Customer Management

Problem Solving and

System Selling Marketing the
Product
CUSTOMER RETENTION AND DELETION
 80 per cent of their sales come from 20 per cent of
their customers
 It is vital to devote considerable resources to
retaining existing high volume, high potential and
highly profitable customers
 Account management has become an important form
of sales organisation
 Salesperson or sales team should focus their efforts
on one or a few major customers
 Some small customers actually cost the organisation
money as servicing and distribution of products to
those customers may push costs
 Change to telemarketing and/or the Internet as a
means of servicing these small customers or drop
them altogether
DATABASE AND KNOWLEDGE MANAGEMENT
 Use and creation of customer databases
 Use the internet to aid the sales task (e.g. finding
customer and competitor information).
 Use of technological advances such as email,
mobile phones and video conferencing
 Laptops - salespeople can store customer and
competitor information, make presentations and
communicate with head office electronically
 Information supplied by the company, such as
catalogues and price lists, can be held
electronically
CUSTOMER RELATIONSHIP MANAGEMENT
 The salesforce focuses on the long term and not
simply on closing the next sale
 The emphasis should be on creating win–win
situations with customers
 Relationship management may involve setting up
dedicated teams to service the account and
maintain all aspects of the business relationship
MARKETING THE PRODUCT
 The modern salesperson is involved in a much
broader range of activities than simply planning
and making a sales presentation
 Faceto-face presentations can now sometimes be
replaced by information presented on web pages
and by email attachments
 The role of the salesperson is expanding to
participation in marketing activities such as
product development, market development and
the segmentation of markets
 The role of the salesperson also is including
database management, provision and analysis of
information, and assessing market segments
PROBLEM SOLVING AND SYSTEM SELLING
 In business to business situations, is based upon the
salesperson acting as a consultant working with the
customer to identify problems, determine needs and
propose and implement effective solutions
 It is different from the traditional view of the
salesperson being a smooth fast-talker who breezes in
to see a customer, persuades the customer to buy and
walks away with an order
 Modern selling often involves multiple calls, the use
of a team-selling approach and considerable
analytical skills
 Customers are increasingly looking for a systems
solution rather than the buying of an individual
product
ADDING VALUE AND SATISFYING NEEDS
 The modern salesperson must have the ability to
identify and satisfy customer needs
 Some customers do not recognize they have a
need - it is the salesperson’s job in such
situations to stimulate need recognition
 Salesperson can recommend the prospect to
change their machine to a new production
technology thus reducing the production cost in
the long-run
THE RELATIONSHIP BETWEEN
SALES AND MARKETING
SELLING AND MARKETING
 Selling is a part of the total marketing
programme of a company and this total effort
should be coordinated by the marketing function
 Selling and sales management are now concerned
with the analysis of customers’ needs and wants
and, through the company’s total marketing
efforts, with the provision of benefits to satisfy
these needs and wants
 The personal selling function must be considered
in the light of overall marketing strategy
A. COMPANY ORGANISATION CHART
SALES ORIENTATED COMPANY

David Jobber, Geoff Lancaster – Selling and Sales Management, 8th edition
B. COMPANY ORGANISATION CHART
MARKETING ORIENTATED COMPANY

David Jobber, Geoff Lancaster – Selling and Sales Management, 8th edition
THE MARKETING CONCEPT
 Marketing orientation
 The marketing concept holds that the key to
successful and profitable business rests with
identifying the needs and wants of customers and
providing products and services to satisfy them
 To have any chance of success, customer needs
must be placed at the very centre of business
planning
 Sales orientation
 The rapid worldwide increase in competition
which accompanied this, many firms adopted a
sales orientation
 The main issue here is not how to produce but,
having products, how to ensure that this
production is sold
 It is a ‘hard sell’ techniques
 Production orientation
 This era was characterized by focusing company
efforts on producing goods or services
 Management efforts were aimed at achieving high
production efficiency, often through the large-
scale production of standardized items
THE SALES VS MARKETING CONCEPT

David Jobber, Geoff Lancaster – Selling and Sales Management, 8th edition
IMPLEMENTING THE
MARKETING CONCEPT
• Sales and marketing planning
• The planning process

• Establishing the marketing plans

• The place of selling in the marketing plan.

 MARKET SEGMENTATION AND TARGETING
 Identifying those clusters of
customers in a market that share
similar needs and wants and will
respond in a unique way to a given
marketing effort
 A company can then decide which are
most attractive and to which
segments it can target and market
most effectively
 Benefits of effective segmentation and
targeting are as follows:
 A clearer identification of market
opportunities and particularly the
analysis of gaps (where there are no
competitive products) in a market
 The design of product and market
appeals that are more finely tuned to
the needs of the market;
 Focusing of marketing and sales
efforts on those segments with the
greatest potential
BASES FOR SEGMENTATION
1. Consumer products/markets
 Age
 Sex
 Income
 Social class
 Geographical location
 Type of residence
(A Classification of Residential Neighbourhoods – ACORN)
 Personality
 Benefits sought
 Usage rate, e.g. heavy users versus light users.
2. Industrial products/markets
 End-use market/type of industry/product application
 Benefits sought
 Company size
 Geographical location
 Usage rate.
 APPLICATION OF SEGMENTATION
1. Based on demographics: i.e.
dividing up the population into groups
based on age, gender, etc
2. Based on gender: BIC for female
and male shaver requirements.
Promotion, advertising and
presentation of products tailored to
these differences
3. Based on usage: BIC Megalighter
designed to light barbecues and has
since developed its ‘Surestart’ candle
lighter as household usage of candles,
principally for decorative and
entertaining purposes
4. Based on the behaviour/needs
of consumers: BIC pen with best
value for money (lowered priced
pens), seeking specific benefits
(premium high quality with comfort,
smooth writing), impulse buy (novel,
innovative with an “object of desire”)
THE MARKETING MIX
1. Product: features, packaging, quality, range
2. Price: price levels, credit terms, price changes,
discounts
3. Promotion: advertising, publicity, sales promotion,
personal selling, sponsorship
4. Place: inventory, channels of distribution, number
of intermediaries
 THE MARKETING MIX IN B2C VERSUS B2B MARKETS

B2C B2B
Product Branding, packaging, Customised to
logos and design; Short individual customer
PLC; Repositioning, requirements,
repackaging with quality assurance,
and product after-sales
and technical services
Price Value for money Overall value;
Tendering;
Promotion Advertising Personal selling

Place Through intermediaries Distribution is often

and particularly, direct; just-in-time
retailers (JIT) and flexible
manufacturing systems
SALES STRATEGIC OBJECTIVES

David Jobber, Geoff Lancaster – Selling and Sales Management, 8th edition
David Jobber, Geoff Lancaster – Selling and Sales Management, 8th edition
MARKETING STRATEGY
AND
MANAGEMENT
OF
PERSONAL SELLING
THANK YOU/BEST WISHES
Questions/Answers/Discussions