SELLING AND
SALES MANAGEMENT
Birat Shrestha
BBA Emph/Hons, KUSOM
August 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
2. SALES SETTING
ENVIRONMENTAL AND
MANAGERIAL FORCES
IMPACTING SALES
BEHAVIORAL FORCES
Rising consumer/organisational buyer expectations and
fulfillment of higher order needs
As consumers experience higher standards of product quality and
service – their expectations are fuelled to expect even higher levels in
the future
As customers get better product/services, they expect better
Rising customer expectations – global exposure, new entrants,
technological advancements
Customer avoidance of buyer–seller negotiations
Sales supported by high pressure sales tactics
No negotiation, fixed price – cars
Expanding power of major buyers
Retail sector demanding more facilities from sellers
JIT inventory system, category management, joint promotions
Globalisation of markets
Correct balance between expatriate and host country sales personnel,
adapting to different cultures, lifestyles and languages by the MNCs
Building global relationships with customers
Fragmentation of markets
Differences in income levels, lifestyles, personalities, experiences and
race, markets are fragmenting to form market segments
Marketing and sales managers need to be adept at identifying changes
in consumer tastes
TECHNOLOGICAL FORCES
Salesforce Automation
Computers and smart phones with sales software
Electronic Data Interchange (EDI) provides computer
links between manufacturers and resellers (purchase
orders, invoices, price quotations, delivery dates,
reports and promotional information can be
exchanged)
Virtual Sales Offices
Virtual offices, allowing sales personnel to keep in
contact with head office, customers and co-workers
Virtual sales meetings, video conferencing
Electronic Sales Channels
Television home shopping
Internet, online sales, and electronic ordering
MANAGERIAL FORCES
Employing direct marketing techniques
Direct mail and telemarketing
The use of computer stations, especially in US retail
outlets, to replace traditional salespeople
Improving co-operation between sales and marketing
Intranets that link employees, suppliers and customers
through their PCs
Intranets are used for such functions as Email, team
projects and desktop publishing
Encouraging salespeople to attend training
programmes and acquire professional qualifications
Enhance salespeople‟s and sales managers‟
professionalism, skills and competencies
Professional courses and workshops
STRATEGIC CUSTOMER MANAGEMENT
Intelligence
Investigate to identify needs and opportunities ahead of the
customer
Sellers can gain competitive advantage by identifying new
opportunities in the end-user markets of their customers
Moving from a simple knowledge of the customer‟s organisation
to understanding the customer‟s markets
Interfaces
Integrate traditional salesperson and sales management
processes
Developing a new collaborative sales representative role,
working with and through the new channels
Produce an effective customer relationship management system
Integration
The process of welding all the company‟s activities and processes
that affect customer value into a single, integrated and
sustained point of value delivery
Cross-functional and cross-border integration to deliver superior
customer value
Integration between sales and operations
SALES CHANNELS
DISTRIBUTION CHANNEL ACTIVITIES
Logistics/Physical Distribution Management (PDM)
Order processing
Materials handling
Warehousing (buffer stock)
Inventory control (just-in-time, or lean, manufacturing)
Transportation (batch and load sizes)
Packaging (shelf display)
Channels of distribution
Direct to customers
Indirect through dealers, distributors, wholesalers,
retailers - „breaking bulk‟
SELECTING/REAPPRAISING SALES CHANNELS
The market
Channel costs
The product
Profit potential
Channel structure
Product life-cycle
Non-marketing factors
CHARACTERISTICS OF SALES CHANNELS
Direct: the manufacturer does not use a
middleperson and sells and delivers direct to the end-
customer.
Selective: the manufacturer sells through a limited
number of middlemen who are chosen because of
special abilities or facilities to enable the product to
be better marketed.
Intensive: maximum exposure at the point of sale is
needed and the manufacturer sells through as many
outlets as possible
Exclusive: the manufacturer sells to a restricted
number of dealers
INDUSTRIAL/COMMERCIAL/PUBLIC
AUTHORITY SELLING
Fewer customers
Institutions and businesses purchase goods either for use in their own
organisations or for use in the manufacture of other goods
Few potential purchasers, each making high-value purchases
Concentrated markets
Industrial markets are often highly concentrated
An industrial salesperson who sells into one industry may deal with
only a few customers in a restricted geographical area
Complex purchasing decisions
Buying decisions often involve a large number of people – DMU -
technical specifier, production personnel and finance personnel
Communicate with people in a variety of positions and tailor their
selling approaches to satisfy individual needs
Each member working with their opposite number in the buying team,
e.g. a sales engineer works with engineers in the buying company
Long-term relationships
There is a tendency to build up strong personal relationships over a
long time and high pressure sales techniques could be counter-
productive
Develop and sustain relationships with key customer groups
Reciprocal trading
Companies buying from client company and vice versa
SELLING FOR RESALE
It is selling to retailers
Multiples (retail organisation with ten or more branches, each
selling a similar range of merchandise)
Variety chains
(similar to multiples except that the qualifying number of branches is
five and they sell a wider range of merchandise)
Co-operative societies
(owned and controlled by the people who shop there with open
membership and democratic control through voting)
Department stores
(stores with five or more departments under one roof)
Independents (traders who own their own retail outlets – voluntary
groups - wholesalers invites retailers to affiliate to them and agree to
take the bulk of their purchases from them - Participating
independent retailers have an identifying symbol (and for this reason
they are termed „symbol shops‟)
Mail order (Business is conducted through the medium of glossy
catalogues)
Direct selling (party plan companies have sold direct to customers
in their homes for a number of years - A direct salesperson
demonstrates products to a group of guests (Avon, Tupperware
kitchen products- „travelling shop‟)
SELLING FOR RESALE
In FMCG sectors, manufacturers have been controlling
distribution and merchandising activities to create “pull”
marketing strategy
The manufacturer‟s sales force are regularly involved in
executing and monitoring POS materials
Salespeople carry out merchandising activities such as
building up shelf displays, providing window stickers and
in-store advertising
Growing importance of retailers is reflected in the
formation of trade marketing teams
Marketing to retailers - the kinds of products they want; in
which sizes; with which packaging; at what prices; with
what kind of promotion
Retailers have encouraged shoppers to become „store loyal‟
through the introduction of loyalty card schemes
FRANCHISING
Contractual systems of franchising - corporate Vertical
Marketing System (VMS)
Franchising comes in a number of forms:
From manufacturers to retailers - a car manufacturer (the
franchisor) licenses car distributors (franchisees) to sell its
products
From manufacturers to wholesalers – in the soft drinks
industry, here manufacturers sometimes supply concentrate (i.e.
the „secret recipe‟) which wholesalers then mix with water and
bottle for distribution to local retail outlets (e.g. Pepsi Cola, Coca-
Cola)
From wholesalers to retailers - voluntary group „SPAR‟, which
does not manufacture, but its large wholesale buying power
means it can pass on cost savings to independent retailers who
join the group and display the SPAR logo
Service firm sponsored franchises to retailers - in the fast
food business (e.g. Burger King, McDonald‟s, Little Chef, KFC,
Spud-U-Like, Pizza Hut); car rentals (e.g. Avis, Budget, Hertz)
FRANCHISING ARRANGEMENT PROCEDURES
The franchisor offers expert advice on such matters as
location, finance, operational matters and marketing
The franchisor promotes the image nationally or
internationally and this provides a well-recognised name
for the franchisee
Many franchise arrangements have a central purchasing
system where franchisees buy at favourable rates
The franchise agreement provides a binding contract to
both sides – operation standards
The franchisor often provides initial start-up and then
continuous training to the franchisee
A franchise arrangement normally requires the franchisee
to pay a royalty or franchise fee to the franchisor
The franchisee owns the business and is not employed by
the franchisor
SELLING SERVICES
Transportation – air, sea, rail and road
Power – electricity, gas and coal
Hotels and accommodation; Restaurants
Communications – telephone, fax, email, text messages
Television and radio services; Banking; Insurance
Clubs – social, keep fit, sporting, special interests
Repair and maintenance
Travel agencies; Accounting services
Business consultancy – advertising, marketing research,
strategic planning
Architectural; Cleaning; Library
Public (local) authority services and undertakings –
disposal of refuse and road repairs
Computing services; Stockbroking services
GROWTH OF SERVICE SELLING
Women work full-time and the division of
responsibilities between men and women is breaking
down more equitably - baby care centers, departmental
stores, eating out restaurants
Better technology has assisted the development and
provision of a more comprehensive range of services –
Internet banking, credit/debit card, instant statements
Public services have become more marketing
orientated and have to be seen to be more accountable
to the publics – they have to communicate with their
public and explain how services they provide are of
value
SPECIAL CHARACTERISTICS OF SERVICES
Intangibility
The difficulty of separating production from
consumption as many services are consumed as they
are produced
Services are not as „standard‟ as products and are
more difficult to assess (in terms of value)
It is not possible to „stock‟ services (e.g. unsold hotel
rooms) unlike products
CHARACTERISTICS OF SERVICES AND PRODUCTS
Products Characteristics Services
Low Intangibility High
Low Inseparability High
Low Variability (i.e. non-standard) High
Low Perishability (i.e. inability to stock) High
Yes Ownership No
EXTENDED 7 PS OF SERVICE SELLING
Product, Price, Promotion, Place
People are an important element in
carrying out a service, especially those
who are directly involved with customers –
employees must be well trained and have
a friendly demeanour when handling
customers.
Process relates to how the service is
provided and it deals with customers at
the point of contact in the supply of the
service – consistency and quality of service
must be well planned and managed.
Physical evidence is included because of
the intangibility of services – marketing
should highlight the nature of the service
being offered - emphasising on quality,
types of equipment and physical facilities
SALES PROMOTIONS
Sales Promotion Objective
Encouragement of repeat purchases
Building of long-term customer loyalty
Encouragement of consumers to visit a particular sales outlet
Building up of retail stock levels
Widening or increasing the distribution of a product or brand
Sales Promotion Tools
Price reductions; Vouchers or coupons; Gifts
Competitions (contests); Lotteries; Cash bonuses
Sales Promotion Techniques
Consumer promotions;
Trade promotions;
Salesforce promotions
CONSUMER PROMOTION
The item is marked „x pence off’
Additional quantity for same price - „Buy One Get One Free
(BOGOF)‟ or „10 per cent bigger – same price as usual‟
Price-off coupons, either in- or on-pack, may be redeemed
against future purchases
Introductory discount price offers on new products
Premium offers
Self-liquidating premiums (offer communicated on or off the pack
and the price charged to the customer covers the cost of the item)
On-pack gifts (premium gift attached to the product)
Continuities (collected through a series of purchases)
Coupon plans (Coupons, contained within the pack, may be
collected over time and exchanged for a variety of products)
Free samples (given away separately)
TRADE PROMOTIONS
The aim is usually to push products through the
channel towards the customer
The objectives of retailer–distributor promotions are
To achieve widespread distribution of a new brand
To move excess stocks onto retailers‟ shelves
To achieve required display levels of a product
To encourage greater overall stockholding of a product
To encourage salespeople at distributor levels to recommend
the brand – particularly in the case of non-consumer
products
To encourage support for overall promotional strategy
PERSONNEL MOTIVATION
These are promotions to the salesforce, but some apply to
distributors and retailers
The most widely used salesforce promotion is the sales incentives
scheme
Scoring or measuring performance may be based upon value or
unit sales
To overcome territorial differences, quotas may be established for
individual regions, areas or salespeople
Objectives of such schemes
Introduction of a new product line
Movement of slow-selling items
To obtain wider territory coverage
Development of new prospects
To overcome seasonal sales slumps
To obtain display
Development of new sales skills
EXHIBITIONS
Exhibitions are tangentially related to sales settings
as the objective is not to sell from display stands
To build up goodwill and prepare the way for future
sales
There will be wide range of products and large
number of competitors
Good amount of information
Large number of new products
Objective
Sell the product from the stand
Arrange to quote
Obtain permission
To telephone for follow-up sales interview
Obtain permission to send further information
EXHIBITION ELEMENTS
Products on show will depend upon the target market
Literature should not be on a self-service display – to
interact with prospect first and then provide literature
Graphics should include at least a display board
featuring the product literature
An office or interview room can take up a lot of expensive
display space – for product demonstration
Refreshment facilities on the stand are good attractors
An area should be designated for storage
An expensive, eye-catching stand can be a double-edged
weapon
PUBLIC RELATIONS
Public relations covers a broader spectrum than selling and
marketing
It is disseminating public relation news rather than just a means of
“covering-up” things
“PR practice is the deliberate, planned and sustained effort to
establish and maintain mutual understanding between an
organisation and its public.”
- (Chartered Institute of Public Relations, CIPR)
PR is managed by – advertising agencies or their subsidiary
company, PR consultants, independent writers or journalists
PR (persuades through attitude change) with advertising, publicity
(positive or negative), propaganda
Seven basic publics (Jefkins)
1. The community
2. Employees
3. Government
4. The financial community
5. Distributors
6. Consumers
7. Opinion leaders
THANK YOU/BEST WISHES
Questions/Answers/Discussions
