Selling and Sales Management
Chapter 1: Development and role of selling in
marketing
1.1 Background
1.2 The nature and role of selling
Strengths: interactive, adaptive, complex arguments can be developed, build relationships,
provides the opportunity to close the sale.
Weaknesses: Sales calls are expensive
Experience and expertise of salespeople are varied, difficult to standardise input and human
behaviour as people can be inconsistent, training can be costly.
1.3 Characteristics of modern selling
What is included in a Personal Selling job today?
win/win
‼!
1.4 Success
factors for
professional salespeople
listening, follow-up, organisational, verbal communication and closing skills etc.
‼‼‼‼‼
1.5 Types of selling
Order takers = respond to already committed customers.
- Inside order-takers: customer freedom to choose products without the presence of a
salesperson.
- Delivery salespeople: salesperson’s task is primarily concerned with delivering the
product.
, - Outside order-takers: salespeople visit customers, but their primary function is to
respond to customer requests rather than actively seek to persuade.
Order-creators = do not directly receive orders since they talk to those who specify rather
than buyers.
- Missionary salespeople: persuade the customer to specify the seller’s products.
Order-getters = to persuade customers to place an order directly.
- Front-line salespeople
o New business salespeople
o Organisational salespeople
o Consumer salespeople
- Sales support salespeople
o Technical support salespeople
o Merchandisers
Business to consumer (B2C) markets:
Consumer markets are markets where the distinguishing characteristic is that the customer
is purchasing products and services for their own use or their family’s use.
Main types:
- Fast moving consumer goods (FMCG): low financial outlays and are bought
frequently (toothpaste).
- Semi-durable consumer goods: clothing, shoes.
- Durable consumer goods: cars and computers.
Business to business (B2B) markets:
Are characterised by often large and powerful buyers, purchasing predominantly for the
furtherance of organisational objectives and in an organisational context using
skilled/professional buyers.
Main types:
- Markets for supplies and consumables
- Markets for capital equipment
- Markets for business services
1.6 Image of selling
1.7 The nature and role of sales management
The prime responsibility is to ensure that the sales function makes the most effective
contribution to the achievement of company objectives and goals.
Specific duties and responsibilities:
- Determining sales force objectives and goals;
- Forecasting and budgeting;
- Sales force organisation, sales force size, territory design and planning;
- Sales force selection, recruitment and training;
- Motivating the sales force;
- Sales force evaluation and control.
1.8 The marketing concept
Philosophies = orientations or concepts
The four main business philosophies are:
- Sales or selling orientation
= the idea that consumers will not buy enough of the organisation’s products unless
the organisation undertakes a large-scale selling and promotion effort.
, Sales Orientation is characteristically adopted when the main aim of a company is to
sell products due to over-capacity and excess supply or when customers need to be
persuaded about the products. Companies tend to believe that they can only sell
sufficient products by means of aggressive sales and promotion of their products and
services. The focus of business becomes to sell what they have rather than provide
what the customers want.
How to ensure that these products are sold.
This type of orientation is often found in markets where supply exceeds demand.
- Production orientation
= The philosophy that consumers will favour products that are available and highly
affordable, and that management should therefore focus on improving production
and distribution efficiency.
Management efforts were aimed at achieving high production efficiency, often
through the large-scale production of standardised items.
Customers would purchase products, provided they were of a reasonable quality and
available in sufficiently large quantities at a suitably low price.
Favours the belief that customers select products and services that are widely
available and at the lowest possible price.
Emphasis on production efficiency through reduction of operational costs and
economies of scale.
Most successful if there is limited product differentiation.
- Product orientation
= The idea that consumers will favour products that offer the most quality,
performance and features, and that the organisation should therefore devote its
energy to making continuous product improvements.
Focus is laid on quality and performance
To produce the best products or offer the best services on the market.
- Marketing orientation (= customer-led approach or customer orientation)
= The marketing management philosophy, which holds that achieving organisational
goals depends on determining the needs and wants of target markets and delivering
the desired satisfactions more effectively and efficiently than competitors do.
Only invest in such improvements if it has been identified that customers would
perceive these as being beneficial.
Outside-in perspective
‼‼‼‼‼
Chapter 1: Development and role of selling in
marketing
1.1 Background
1.2 The nature and role of selling
Strengths: interactive, adaptive, complex arguments can be developed, build relationships,
provides the opportunity to close the sale.
Weaknesses: Sales calls are expensive
Experience and expertise of salespeople are varied, difficult to standardise input and human
behaviour as people can be inconsistent, training can be costly.
1.3 Characteristics of modern selling
What is included in a Personal Selling job today?
win/win
‼!
1.4 Success
factors for
professional salespeople
listening, follow-up, organisational, verbal communication and closing skills etc.
‼‼‼‼‼
1.5 Types of selling
Order takers = respond to already committed customers.
- Inside order-takers: customer freedom to choose products without the presence of a
salesperson.
- Delivery salespeople: salesperson’s task is primarily concerned with delivering the
product.
, - Outside order-takers: salespeople visit customers, but their primary function is to
respond to customer requests rather than actively seek to persuade.
Order-creators = do not directly receive orders since they talk to those who specify rather
than buyers.
- Missionary salespeople: persuade the customer to specify the seller’s products.
Order-getters = to persuade customers to place an order directly.
- Front-line salespeople
o New business salespeople
o Organisational salespeople
o Consumer salespeople
- Sales support salespeople
o Technical support salespeople
o Merchandisers
Business to consumer (B2C) markets:
Consumer markets are markets where the distinguishing characteristic is that the customer
is purchasing products and services for their own use or their family’s use.
Main types:
- Fast moving consumer goods (FMCG): low financial outlays and are bought
frequently (toothpaste).
- Semi-durable consumer goods: clothing, shoes.
- Durable consumer goods: cars and computers.
Business to business (B2B) markets:
Are characterised by often large and powerful buyers, purchasing predominantly for the
furtherance of organisational objectives and in an organisational context using
skilled/professional buyers.
Main types:
- Markets for supplies and consumables
- Markets for capital equipment
- Markets for business services
1.6 Image of selling
1.7 The nature and role of sales management
The prime responsibility is to ensure that the sales function makes the most effective
contribution to the achievement of company objectives and goals.
Specific duties and responsibilities:
- Determining sales force objectives and goals;
- Forecasting and budgeting;
- Sales force organisation, sales force size, territory design and planning;
- Sales force selection, recruitment and training;
- Motivating the sales force;
- Sales force evaluation and control.
1.8 The marketing concept
Philosophies = orientations or concepts
The four main business philosophies are:
- Sales or selling orientation
= the idea that consumers will not buy enough of the organisation’s products unless
the organisation undertakes a large-scale selling and promotion effort.
, Sales Orientation is characteristically adopted when the main aim of a company is to
sell products due to over-capacity and excess supply or when customers need to be
persuaded about the products. Companies tend to believe that they can only sell
sufficient products by means of aggressive sales and promotion of their products and
services. The focus of business becomes to sell what they have rather than provide
what the customers want.
How to ensure that these products are sold.
This type of orientation is often found in markets where supply exceeds demand.
- Production orientation
= The philosophy that consumers will favour products that are available and highly
affordable, and that management should therefore focus on improving production
and distribution efficiency.
Management efforts were aimed at achieving high production efficiency, often
through the large-scale production of standardised items.
Customers would purchase products, provided they were of a reasonable quality and
available in sufficiently large quantities at a suitably low price.
Favours the belief that customers select products and services that are widely
available and at the lowest possible price.
Emphasis on production efficiency through reduction of operational costs and
economies of scale.
Most successful if there is limited product differentiation.
- Product orientation
= The idea that consumers will favour products that offer the most quality,
performance and features, and that the organisation should therefore devote its
energy to making continuous product improvements.
Focus is laid on quality and performance
To produce the best products or offer the best services on the market.
- Marketing orientation (= customer-led approach or customer orientation)
= The marketing management philosophy, which holds that achieving organisational
goals depends on determining the needs and wants of target markets and delivering
the desired satisfactions more effectively and efficiently than competitors do.
Only invest in such improvements if it has been identified that customers would
perceive these as being beneficial.
Outside-in perspective
‼‼‼‼‼
