ISM Chapter 1 – Development and the role of selling in marketing
Personal selling
Strengths Weaknesses
Interactive Sales calls are costly
Adaptive Difficult to standardize
Build relations Training is costly
Opportunity to close the sale Expertise of salespeople vary
The characteristics of modern selling
1. Customer retention and deletion
2. Database and knowledge management
3. Customer relationship management
4. Marketing the product
5. Problem solving and system selling
6. Satisfying needs and adding value
Types of selling
Order takers Order-creators Order-getters
Inside order takers Missionary salespeople Technical support salespeople
Customer choose product without To persuade the customer to specify When a product is technical or
presence of a salesperson. Task is only the seller’s product. (Pharmaceutical) negotiations are complex
transactional (build)
Delivery salespeople Educate and build goodwill Merchandisers
Salesperson’s primary task is delivering Support sales to outlets. Give advice
the product on display, implement sales
promotions, check stock levels and
keep contact with manager
Outside order-takers
Visit customers but primary function is
to respond to customer requests
B2C markets
1. Fast moving consumer goods (FMCG)
2. Semi-durable consumer goods
3. Durable consumer goods
B2B markets
Duties of a sales manager:
• Determine salesforce objectives and goals
• Forecasting and budgeting
• Salesforce organization, size, design, planning
• Salesforce select, recruit, train
• Motivate salesforce
• Salesforce evaluation and control
The marketing concept
Production orientation Sales orientation Marketing orientation
High production efficiency Without help, customers are Identify needs and wants
slow and reluctant to buy
Large scale production Provide products to satisfy
Standardized items
,The marketing concept implementation
Market segmentation based on: demographics, usage, behaviour
Market targeting
Marketing mix
• Product PLC, product adaptation and diffusion
• Price Company/marketing objectives, demand/cost/competitor considerations
• Place Channels, customer service, terms and conditions of distribution
• Promotion Communication
B2C B2B
Product Standardized Customized
Price Standardized Negotiated
Placement Intensive & spread Direct & reliable
Promotion Advertising Personal selling
Marketing strategy and sales management
Linking product area strategic objectives with functional area strategies is essential for the efficient allocation of
resources and effective implementation in the marketplace:
Marketing objective Sales objective Sales strategy
Build Build sales volume High call rates on existing accounts
High focus during call
Increase distribution Call on new accounts (prospecting)
Provide high service levels
Hold Maintain sales volume Continue present call rates on accounts
Medium focus during call
Maintain distribution Call new outlets when they appear
Maintain service levels
Harvest Reduce selling costs Call only profitable accounts
Consider telemarketing
Target profitable accounts No prospecting
Reduce service/invent. Cost
Divest Clear inventory quickly Quantify discounts to targeted accounts
Relationship between sales and marketing
• Sales efforts influence and are influenced by the company’s marketing mix. This in turn affects the
overall marketing efforts. Therefore, it Is essential that sales and marketing are fully
integrated.
• Adoption of marketing concepts à change organizational structure à change in the view of what
constitutes the nature of selling.
• Post marketing oriented company à sales become an activity of 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.
• Product level, marketing considerations: Choice of target market and the creation of a differential
advantage à impact on personal selling
• Target market effects sales management because the relation with target accounts. Once the target
market is defined, sales management can translate that into individual accounts to target.
Salesforce resources can be deployed to the maximum effect.
• Sales personnel who manage the external relations with customers must collaborate internally with
marketing to agree on commercial objectives and develop marketing programs
• The relationship appears to be characterized by a lack of cohesion, poor coordination, conflict, non-
cooperation, distrust and dissatisfaction
Sales in buy in
• objective and rational persuasion
• sensitivity and responsiveness to reality
, • involvement strategy creation
• positioning for succes
ISM Chapter 3 – Consumer and organizational buyer behaviour
Differences consumer and organizational buying
Fewer organizational buyers
Close, long-term relationships between organizational buyer and seller
Organizational buyers are more rational
Organizational buying may have specific requirements (product modification/personalization)
Reciprocal buying may be important in organizational buying
Organizational buying/selling is more risky and complex (involve people at more levels)
Negotiations are important in organizational buying
Roles in consumer decision making
Initiator Person who begins the process of considering a purchase. Information is gathered
to support the decision
Influencer Attempts to persuade others in a group about the outcome of the decision. Gather
information and impose choice criteria on the decision
Decider Person with power/financial authority to decide which product to buy
Buyer Person who conducts the transaction, calls the supplier, visits store, make payment,
effect delivery
User The actual consumer/user of the product
The consumer decision making process
1. Need identification / problem awareness
2. Information gathering
3. Evaluation of alternative solutions
4. Selection of appropriate solution
5. Post-purchase evaluation
Need Evaluation of Selection of Post-
Information
identification / alternative appropriate purchase
gathering
problem awareness solutions solution evaluation
Factors affecting consumer decision making
The buying situation Personal influences Social influences
Extensive problem solving Q1: Dominant-hostile Social class, reference groups, culture,
New problem, high uncertainty Salesperson adjust dominance family
Limited problem solving Q2: Submissive-hostile Lifestyle according to: beliefs, activities,
Product experience, not loyal Try to gain trust values, education, income etc.
Automatic response Q3: Submissive-warm
Favourable brand Satisfy the social needs
Q4: Dominant-warm
Match dominance level
Organizational buying behaviour roles
Initiators Begin the purchase process
Gatekeepers Controls the flow of information (secretaries)
Influencer Not responsible but has influence on decision
Deciders Makes the final decision. Typically, budget holder
Buyer Does buying process including negotiating
Personal selling
Strengths Weaknesses
Interactive Sales calls are costly
Adaptive Difficult to standardize
Build relations Training is costly
Opportunity to close the sale Expertise of salespeople vary
The characteristics of modern selling
1. Customer retention and deletion
2. Database and knowledge management
3. Customer relationship management
4. Marketing the product
5. Problem solving and system selling
6. Satisfying needs and adding value
Types of selling
Order takers Order-creators Order-getters
Inside order takers Missionary salespeople Technical support salespeople
Customer choose product without To persuade the customer to specify When a product is technical or
presence of a salesperson. Task is only the seller’s product. (Pharmaceutical) negotiations are complex
transactional (build)
Delivery salespeople Educate and build goodwill Merchandisers
Salesperson’s primary task is delivering Support sales to outlets. Give advice
the product on display, implement sales
promotions, check stock levels and
keep contact with manager
Outside order-takers
Visit customers but primary function is
to respond to customer requests
B2C markets
1. Fast moving consumer goods (FMCG)
2. Semi-durable consumer goods
3. Durable consumer goods
B2B markets
Duties of a sales manager:
• Determine salesforce objectives and goals
• Forecasting and budgeting
• Salesforce organization, size, design, planning
• Salesforce select, recruit, train
• Motivate salesforce
• Salesforce evaluation and control
The marketing concept
Production orientation Sales orientation Marketing orientation
High production efficiency Without help, customers are Identify needs and wants
slow and reluctant to buy
Large scale production Provide products to satisfy
Standardized items
,The marketing concept implementation
Market segmentation based on: demographics, usage, behaviour
Market targeting
Marketing mix
• Product PLC, product adaptation and diffusion
• Price Company/marketing objectives, demand/cost/competitor considerations
• Place Channels, customer service, terms and conditions of distribution
• Promotion Communication
B2C B2B
Product Standardized Customized
Price Standardized Negotiated
Placement Intensive & spread Direct & reliable
Promotion Advertising Personal selling
Marketing strategy and sales management
Linking product area strategic objectives with functional area strategies is essential for the efficient allocation of
resources and effective implementation in the marketplace:
Marketing objective Sales objective Sales strategy
Build Build sales volume High call rates on existing accounts
High focus during call
Increase distribution Call on new accounts (prospecting)
Provide high service levels
Hold Maintain sales volume Continue present call rates on accounts
Medium focus during call
Maintain distribution Call new outlets when they appear
Maintain service levels
Harvest Reduce selling costs Call only profitable accounts
Consider telemarketing
Target profitable accounts No prospecting
Reduce service/invent. Cost
Divest Clear inventory quickly Quantify discounts to targeted accounts
Relationship between sales and marketing
• Sales efforts influence and are influenced by the company’s marketing mix. This in turn affects the
overall marketing efforts. Therefore, it Is essential that sales and marketing are fully
integrated.
• Adoption of marketing concepts à change organizational structure à change in the view of what
constitutes the nature of selling.
• Post marketing oriented company à sales become an activity of 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.
• Product level, marketing considerations: Choice of target market and the creation of a differential
advantage à impact on personal selling
• Target market effects sales management because the relation with target accounts. Once the target
market is defined, sales management can translate that into individual accounts to target.
Salesforce resources can be deployed to the maximum effect.
• Sales personnel who manage the external relations with customers must collaborate internally with
marketing to agree on commercial objectives and develop marketing programs
• The relationship appears to be characterized by a lack of cohesion, poor coordination, conflict, non-
cooperation, distrust and dissatisfaction
Sales in buy in
• objective and rational persuasion
• sensitivity and responsiveness to reality
, • involvement strategy creation
• positioning for succes
ISM Chapter 3 – Consumer and organizational buyer behaviour
Differences consumer and organizational buying
Fewer organizational buyers
Close, long-term relationships between organizational buyer and seller
Organizational buyers are more rational
Organizational buying may have specific requirements (product modification/personalization)
Reciprocal buying may be important in organizational buying
Organizational buying/selling is more risky and complex (involve people at more levels)
Negotiations are important in organizational buying
Roles in consumer decision making
Initiator Person who begins the process of considering a purchase. Information is gathered
to support the decision
Influencer Attempts to persuade others in a group about the outcome of the decision. Gather
information and impose choice criteria on the decision
Decider Person with power/financial authority to decide which product to buy
Buyer Person who conducts the transaction, calls the supplier, visits store, make payment,
effect delivery
User The actual consumer/user of the product
The consumer decision making process
1. Need identification / problem awareness
2. Information gathering
3. Evaluation of alternative solutions
4. Selection of appropriate solution
5. Post-purchase evaluation
Need Evaluation of Selection of Post-
Information
identification / alternative appropriate purchase
gathering
problem awareness solutions solution evaluation
Factors affecting consumer decision making
The buying situation Personal influences Social influences
Extensive problem solving Q1: Dominant-hostile Social class, reference groups, culture,
New problem, high uncertainty Salesperson adjust dominance family
Limited problem solving Q2: Submissive-hostile Lifestyle according to: beliefs, activities,
Product experience, not loyal Try to gain trust values, education, income etc.
Automatic response Q3: Submissive-warm
Favourable brand Satisfy the social needs
Q4: Dominant-warm
Match dominance level
Organizational buying behaviour roles
Initiators Begin the purchase process
Gatekeepers Controls the flow of information (secretaries)
Influencer Not responsible but has influence on decision
Deciders Makes the final decision. Typically, budget holder
Buyer Does buying process including negotiating
