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Understanding Selling and Sales Management

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0% found this document useful (0 votes)
13 views41 pages

Understanding Selling and Sales Management

Uploaded by

jahmanimm8
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Chapter 1:

The ROLE OF SELLING

The material copied from


Selling and sales Management, 11 th
edition
Jobber, Lancaster, and Le Meunier-
FitzHugh, 2019
First of all, it is important to recognize that selling and sales
management, although closely related, are not the same.

Sales management as other business fields has passed


through many changes.

One of the most important changes was the adoption of the


Marketing concept.

1
What is the marketing concept?
A philosophy that an organization should try to
provide products that satisfy customers’ needs
through coordinated set of activities that also
allow the organization to achieve its goals.
Nature and Role of selling
Selling ( to make a sale) is a simple and obvious
word disguises what is often a very complex
process.

This process include the use of :

Many principles.
Many Techniques.
Substantial personal skills.
A wide rang of different selling task.
The importance of personal selling
There are many reasons that force an organization to
spend large sums of resources on training its
salesforce.

1- in most organizations personal selling is the only link


with the organization's customers.

2- best marketing plans may fail if the organization’s


salespersons are not enough qualified to implement it.

3-the front-line role of the salesperson means that for


many customers the salesperson is the company.
 The term of selling encompasses a varity of sales situations and activities; these
situation and activities may differ according to the type of product he sells or the
type of markets that he deals with.

- sometimes the sales representative may have to work as consultant for the client.
- other times the relationship is limited to the traditional personal selling where the
salesperson persuades a wholesaler or a retailer to carry a specific product.

- According to the product type:

- Selling capital equipments…….business market


- Selling consumer goods and services……. Consumer market

- According to the geographic market:


- Local market.
- International market.

- One constant within selling is that it usually involves interaction between a buyer
and seller. This can occur remotely or face to face, but it always involves
considerable costs to the selling firm. Look at table 1.1 on page 5.
3
Characteristics of modern selling
1- customer retention and deletion:
- key account management for large accounts
- telemarking and/or internet for small accounts
2- Information management:
The modern sales force needs to be trained in the use and
creation of customer databases, and on how to use the internet to
aid the sales task.
3- customer relationship management
-focusing on long run objectives.
-achieving win-win situations.
4- marketing the product:
the salesperson roles should not be limited to planning and
implementing sales activities, it should include :
A- participating in marketing activities such as new product
development, market intelligence, and market segmentation.
B- participating in other supporting activities such as
database management, data analysis, market assessment.
5- problem solving and system selling
- Acting like a consultant.
- Team selling.
- Multiple calls.
- Analytical skills.
- Systems solution (example on page 7).
6- satisfying needs, and adding value.
in some cases, customers do not know that they have
problems, here, the salesperson’s role will be to help his
customers in discovering their hidden problems. Read the
example on page 7
 7- selling today:

 One of the major changes in sales today is that salespeople


may not enter a face-to-face relationship with their
customers because of advances in technology.

 As a result, the modern salesperson should be comfortable


in using the modern technology to interact with customers.

 Online presentations using smartphones, laptops, and


tablets are now common.
Success factors for professional
salespeople.
Table1.2 page 8
1-personable
2- interactive
3- focused
4- listening skills
5- information retention
6- verbal and written skills
7- organized
8- able to overcome objections
9- adaptive
10- determination
Success factors for professional
salespeople.
These success factors should be recognized for the
following reasons:
sales managers can use this knowledge to improve
recruitment and training courses.
candidates for sales jobs can use this knowledge to
ensure they work toward high level of proficiency
in those key areas.
sales educators at universities and colleges have
information upon which to ensure their curricula
best reflect the skills and knowledge most valued
by practitioners.
Types of selling
 The diverse nature of buying situation means that there
are many types of selling jobs.

1- order takers:
they respond to already committed customers and they
are divided into three different categories :
a- inside order takers:
here the salespeople have only a transactional role;
receiving payments and passing over the goods.
the customers usually choose what they want without
the presence of salespeople.
Example : telemarketing sales teams who support
field sales by taking customers orders.
B- outside order-takers:

- in this type of selling salespeople visit the customers,


but their primary function is to respond to customers'
requests not to persuade them.

- they do not deliver goods.

- they are being replaced by more cost efficient


telemarketing teams.
SKIPPED
b- delivery salespeople :

- the salesperson task is primarily concerned with


delivering the product.

- in this kind of selling winning and losing orders depend


on the reliability of delivery and the personality of the
salesperson.

- moreover, in this type of selling the salesperson does not


exert any effort to increase the customer’s consumption of
the product.

- Example: milk, newspaper, magazines are delivered to


the door.
2- order-creators ( missionary salespeople):
here, the salespeople do not aim to close
sales but to persuade the client to specify the
seller’s products, to educate him, and build a
goodwill.

- example : medical representatives in the


pharmaceutical industry.

10
3- order-getters:
They attempt to persuade customers to place an order directly.
These are the frontline salespeople and in many ways this type
of selling represent the of the different types of selling.

Order getters demand several skills on the part of salesperson


including, for example, the ability to identify prospects,
persuading and negotiating…etc.

 Technical support salespeople:


Their task is to provide sales support to frontline
salespeople, so they are normally considered to belong in the
order-getters group.

Where a product is highly technical and negotiations are


complex, a salesperson may be supported by product and
financial specialists who can provide the detailed technical
information required by customers.
 Merchandisers:

- These people provide sales support in retail and wholesale


selling situations.

- Orders may be negotiated nationally at head office, but


sales to individual outlets are supported by merchandizers
who give advice on display, implement sales promotions,
check stock levels and maintain contact with store managers.

13
Business-to-business and business-to-
consumer marketing and selling
 Marketers and salespeople often distinguish between
two major categories of marketing and selling based
upon the category of customers being targeted.

 There are two categories of customer groups, or


markets: business clients (profit or non-profit
organizations) and consumers (individuals).

 Though the basic principles of marketing and selling


apply to both markets, there are some significant
differences between the two with regard to marketing
and selling.
Business-to-business and business-to-
consumer marketing and selling
 Consumer markets are markets where the distinguishing
characteristic is that the customer is purchasing products and
services for their own use, or family’s use. The principal
motives for purchase, therefore, are personal in nature.

 Within this market there are a number of different types, or


submarkets, depending on the type of product and consumer
purchase we are considering. They are as follows:

1- Fast-moving consumer goods (FMCG): markets where


customers are purchasing products that generally involve
relatively low financial outlays. Theses goods are bought
frequently and are often non-durable. They include products
such as toothpaste, confectionery, stationary, grocery products
and cosmetics.
- They include some of the more frequently purchased
electrical items such batteries and light bulbs. These are
disposable goods.

- Buyers spend relatively little time searching for information


and evaluating between different product offerings.

- If they are satisfied, they will tend to buy the dame brand
routinely.
2- Semi-durable consumer goods: they include products
such as clothing and shoes, soft furnishings and jewellery.
They are products that are bought less frequently than
FMCG products as they tend to last longer.

- The customers tend to spend more time choosing


between different competitive offerings.
3- Durable consumer goods: they include products such as
refrigerators, cars, and computers. These are purchases
that are made least frequently. They often involve
considerable outlays.

- The customer is committed for some time in choosing


between different product offerings.

- They will be looking for lots of information and help in


purchasing.

- Can also be referred to as high-involvement products.


 Business-to-business markets are often
characterized by large and powerful buyers, purchasing
predominantly for the furtherance of organizational
objectives and in an organizational context using
skilled/professional buyers.

 Demand in this market can be either derived demand, or


demand for capital equipment for the company’s own
use (tools, machinery, IT or cars).

 In this market, negotiation is the order of the day in


dealings between sellers and buyers.
 Selling and marketing in these markets is very different
from that encountered in B2C markets.

 Buyers are far more likely to negotiate on price, quality and


performance. Delivery and service are particularly
important and are often customized.

 The salesperson is likely to be dealing with skilled


negotiators, and the process of buying, and hence selling,
can extend over months or even years for certain types of
capital products.

 As in consumer markets, there are several distinct types of


submarket within B2B. They are as follows:
1- Markets for supplies and consumables (e.g., raw
materials, semi-manufactures goods).

2- Market for retail distribution

3- Market for capital equipment (e.g., plant, machinery)

4- Markets for business services (e.g., consultancy,


technical advice; these are more service orientated)
Key qualities that are generally recognized as
being important for successful salesperson.
1- empathy and an interest in people.
it helps in accurately identifying customers real problems
and needs.
2- ability to communicate.
it means the ability to get a message across to a
customer, the ability to listen and understand, the skill of
knowing when to stop talking.
3-determination.
It is a fact that some customers might say no when they
really mean maybe.
4-self-discipline and resilience.
Most of salespersons are unsupervised, and they should
expect setback, rejections, and failures.
Image of selling
Some misconception about selling career:
1- selling is not a worthwhile career.

2- good products will sell themselves and thus the


selling process adds unnecessarily costs.

3- there is something immoral about selling.


-foot in the door technique.
Foot-in-the-door (FITD) technique is
a compliance tactic that involves getting a person
to agree to a large request by first setting them up
by having that person agree to a modest request.
To overcome these misconceptions we need to sell
the following facts:

1- there is nothing immoral or unscrupulous about


selling or about those involved in selling.

2- selling is a worthwhile career.

3- good products do not sell themselves.

an excellent product may pass unnoticed unless its


benefits and features are explained to customers.
Element in sales act as demotivators :

1- possibility of rejection by others.

They often have to suffer ego punishments such as


being kept waiting, appointments cancelled at
short notice.

2- sometimes they have to work in foreign territory.

3- the salesperson tends to work alone and


sometimes far away from his home.
The nature and roles of sales management
In the past the emphasis was on the personality
of the salesperson and on the amount of sales
that he/she generates.

Nowadays, these things are still important but


salesperson’s duties and responsibilities have
been broadened.

The sales manager prime responsibility is to


ensure that the sales function makes the most
effective contribution to the achievements of
company objectives.
 To fulfill his role, sales manager must undertake specific
duties and responsibilities:

1- the determination of salesforce objectives.


2- forecasting and budgeting.
3- salesforce organization, salesforce size, territory design
and palnning.
4- salesforce selection ,recruitment, and training.
5- motivating the salesforce.
6- salesforce evaluation and control.

- Perhaps one of the most significant developments affecting


selling and sale management in recent years has been the
evolution of the marketing concept.
Sales and Marketing Orientations
In tracing the development of the marketing
concept, it is customary to chart three
successive stages in the evolution of modern
business practice:

Sales or Selling orientation


Production orientation
Product orientation
Marketing orientation
Service orientation
Marketing Orientation
 It is unclear exactly when the idea of marketing or customer
orientation began to emerge; in some ways the central
importance of the customer has perhaps always been
recognized in the history of trading.

 Not until the 1950s, however, did the ideas associated with
the marketing concept began to tale shape.

 It arose partly as a result of dissatisfaction with the


production and sales orientation, partly as a result of both,
changing environment and fundamental business sense.

 The marketing concept, sometimes referred to as the


customer orientation or even the customer-led approach,
began to gain momentum as a core business philosophy in the
US during the 1950s.
Marketing Orientation
 Rather than ignore the earlier approaches to business, the
marketing orientation tends to incorporate some aspects of
each of the three other business philosophies.

 Indeed, companies following the marketing orientation


believe in improving product quality, just like those adopting
the product orientation.

 However, marketing-orientation businesses mainly differ from


product-orientated businesses in the sense that the former
will invest in such improvements only if it has been identified
that customers would perceive these as being beneficial.
Marketing Orientation
 Like businesses favoring a production orientation, those
adopting a marketing orientation will also identify the
reduction of costs and improvements of efficiency as one of
their primary aims.

 Therefore, a customer oriented business may in the short


term adopt tactics of promotion and price discounting-
methods that are traditionally associated with a selling
orientation.

 However, marketing orientation still offers a fundamentally


different approach to business, indeed, as Kotler et al (2013)
advocate, marketing orientation is the only business
philosophy that adopts and ‘outside-in perspective’, as
opposed to the ‘inside-out perspective’ favored by other
business philosophies.
Marketing Orientation
 Under the marketing concept, customer focus and value are
the paths to sales and profits’. Therefore, companies adopting
the marketing orientation aim to focus on the genuine needs
and wants of their target audiences.

 Marketing-orientated organizations have been described as


being underpinned by three key elements: a customer focus
or orientation, a competitor focus or orientation and internal
or inter-functional coordination.

 For a customer focus to be achieved, it is necessary for


organizations to invest in the skills and competences of the
sales team.
Marketing Orientation
 Consequently, it could be said that the main difference
between marketing orientation and other philosophies lies in
the attitude of companies towards the customer and to the
market in which they operate.

 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.

 On the surface, such a concept does not appear to be a far-


reaching and fundamentally different philosophy of business,
but, in fact, the marketing concept requires a revolution in
how a company thinks about, and practices, its business
activities as compared with production or sales orientation.
Marketing Orientation
 Central to this revolution in business thinking is the emphasis
given to the needs and wants of the customer.

 To have any chance of success, customer needs must be


placed at the very center of business planning. In part, this
emphasis on understanding the consumer explains the
development of those concepts and techniques aimed at
understanding buyer behavior.
Service orientation
 The concept of the service orientation has been recently
added to the sales and marketing lexicon and it moves
attention from the product to servicing the customer (service
dominant philosophy).

 The service-orientated organization bases its business


philosophy on the service elements of its offer (the intangible,
interactive or process elements), which can be used to create
and co-create value with the customer.

 To provide the goods and services that customer requires, the


selling organization has to engage its knowledge,
competences and processes in a unique combination to meet
the customer’s requirements, provide satisfaction and create
value.
Service orientation
 A service orientation combines the concept of service in
exchange, customer orientation and relationship building into
a construct that provides benefits for all parties.

 Service orientation places the customer at the heart if


strategic thought, where the goods (products and services)
are secondary to the service of exchange, and where value is
created through marketing, sales, delivery and invoicing
processes.

 A service orientation is when the organization focuses on how


it engages with external agents, such as its suppliers and
customers, with the aim of satisfying their needs.
Service orientation
 Salespeople become the essential link between the organization
and its customers, as they manage the expectations of both
parties.

 It will be the salesperson’s ability to derive what the customer


needs/wants from the exchange and offer an appropriate, or
superior, value proposition that will be the main source of
competitive advantage in a service-orientated organization.

 Of course, actual success will be reliant on the selling


organization being able to deliver what the salesperson promises,
and to do this salesperson will need to have access to the
organization’s supply china or network.

 The adoption of a service perspective places sales, as well as


marketing function, at the center of the organization’s
competitive strategy.

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