This document provides an overview of sales management and selling in different contexts. It begins with learning outcomes and a table of contents. It then defines sales management as planning, directing, and controlling personal selling activities. Key points include:
- Selling involves offering a product for sale while sales management oversees the sales force.
- Sales management functions include planning, organizing, recruiting, training, motivating, controlling, and monitoring.
- The document discusses the sales process in different contexts such as B2B, B2C, and non-profit. It also covers sales settings, the promotional mix, international selling, and qualities of a successful sales career.
This document provides an overview of sales management and selling in different contexts. It begins with learning outcomes and a table of contents. It then defines sales management as planning, directing, and controlling personal selling activities. Key points include:
- Selling involves offering a product for sale while sales management oversees the sales force.
- Sales management functions include planning, organizing, recruiting, training, motivating, controlling, and monitoring.
- The document discusses the sales process in different contexts such as B2B, B2C, and non-profit. It also covers sales settings, the promotional mix, international selling, and qualities of a successful sales career.
This document provides an overview of sales management and selling in different contexts. It begins with learning outcomes and a table of contents. It then defines sales management as planning, directing, and controlling personal selling activities. Key points include:
- Selling involves offering a product for sale while sales management oversees the sales force.
- Sales management functions include planning, organizing, recruiting, training, motivating, controlling, and monitoring.
- The document discusses the sales process in different contexts such as B2B, B2C, and non-profit. It also covers sales settings, the promotional mix, international selling, and qualities of a successful sales career.
This document provides an overview of sales management and selling in different contexts. It begins with learning outcomes and a table of contents. It then defines sales management as planning, directing, and controlling personal selling activities. Key points include:
- Selling involves offering a product for sale while sales management oversees the sales force.
- Sales management functions include planning, organizing, recruiting, training, motivating, controlling, and monitoring.
- The document discusses the sales process in different contexts such as B2B, B2C, and non-profit. It also covers sales settings, the promotional mix, international selling, and qualities of a successful sales career.
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Lesson 1
Selling in different marketing
contexts Disclaimer Kindly note, LCM study materials are available FREE of charge to students and are intended to be used ONLY as supplementary reference material. They do not in any way replace the recommended books that students are advised to use to supplement knowledge and understanding of the module.
Students can purchase the recommended reading books from a retailer of their choice. However, students experiencing problems in obtaining books independently can contact us to make a purchase using LCMs account with Amazon. Learning Outcomes This lecture note covers the following learning outcome;
LO 1 - Differentiate selling within a range of marketing contexts. Contents What is sales management? The sales process in different business contexts Role and importance of the sales function Sales settings Sales and the promotional mix International selling The sales career
What is sales management?
"The planning, direction, and control of personal selling, including recruiting, selecting, equiping, assigning, routing, supervising, paying and motivating as these tasks apply to personal sales force. (1)
What is sales management contd
Difference between selling and sales management is;
Selling is an act of offering a product or service to a buyer in exchange of a financial or non-financial benefit. This is a very narrow concept.
On the other hand, sales management involves the management of the sales force of an organisation involving processes from recruiting the sales personnel to maintaining sustainable relationships with customers.
Therefore, selling is only one aspect under sales management. What is sales management contd Functions of sales management
Planning Organising Recruitment Training Motivation Controlling Monitoring
What is sales management contd... (2) Leading Supervising and guiding the sales force to perform efficiently and effectively Training The sales force should have the required knowledge, skills and competencies to handle diverse customers Staffing Having the right people at the right time for the right job Controlling Comparing the actual results with targets Planning Building a customer oriented team to increase profits of the organisation Performance Achieve sales targets Increase profits Customer satisfaction Higher productivity Resources Financial Human Technology Raw materials Information What is sales management contd Strengths of personal selling;
Facilitates two way communication between buyers and sellers
Specific customer needs can be addressed
Provides opportunity to get the maximum benefits out of the sale
Forms a basis to create long term relationships with customers
What is sales management contd... Weaknesses of personal selling;
Higher costs and time commitments required
Customers might view personal selling as a nuisance to them
What is sales management contd Characteristics of modern selling
Customer Customer retention and deletion Adding value / satisfying customer needs Problem solving and system selling Marketing the product Customer relationship management Database and knowledge management The sales process in different business contexts The marketing strategy Role of sales force Structuring of sales force Building sales compete ncies Leading the sales force The sales process in different business contexts contd The selling function Order-takers Inside order- takers Delivery salespeople Outside order- takers Order-getters Front line sales people Sales support sales people Order-creators Missionary salespeople The sales process in different business contexts contd... B2B B2C Objective Revolves around getting the best deal and securing long term contracts Attract new customers and maintain the relationship with existing customers Number of buyers Very few Comparatively higher Importance of negotiations Very high Less or no negotiations as the final price is offered to the customers Risks involved Usually high as it involves high valued transactions Relatively lower risks Differences in the sales process of B2B and B2C organisations. The sales process in different business contexts contd Differences in the sales process of profit Vs. non-profit organisations
Profit making organisation Non-profit making organisations Objective To increase the bottom line of the business through sales To attract donors / volunteers Type of customers Final customers, organisational clients and intermediaries like retailers and wholesalers Customers are not buyers, but are rather contributors to a cause. Role and importance of the sales function
The sales personnel are the single most important link with the customer!
Sales setting refers to factors that impact sales of an organisation. Sales settings Sales settings contd Factors included in a sales setting can be briefly identified as follows;
Sales settings Behavioural forces Technological forces Managerial forces Sales settings contd In analysing the sales setting PESTLN analysis can be used;
Refers to the political attitude, changes in government policies and other influences by the government to the business. Political environment Inflation, interest rates, foreign exchange rates, purchasing power of the people etc. Economical environment Sales settings contd Gender distribution, age variations, level of education, values, attitudes and beliefs. Social and cultural environment Technological investment, use of technology in communications, internet usage, computer literacy, communications technology etc. Technological Environment Sales settings contd Consumer protection laws, antitrust laws, standards and licenses. Legal environment Resource availability, environmental impact, recycling activities etc. Natural environment Sales and the promotional mix Marketing philosophies Production concept: this is where sellers concentrate on making the product highly available and affordable.
Product concept: under this concept the seller focuses more on the quality of the product.
Selling concept: this is where sellers believe that customers have to be persuaded to make them purchase a product. Therefore, they focus more on aggressive selling and promotions. This is called an inside out strategy.
Marketing concept: aims to satisfy customers by addressing their needs and wants. This is an outside in strategy. Sales and the promotional mix contd Product Promotions Place Price Marketing mix (4Ps) Advertising Sales promotions Personal selling Direct marketing Public relations Sales and the promotional mix contd Relationship between marketing, promotions and sales through an example
Strategic marketing objective Promotional objective Sales objective Sales strategy Launch the existing product with additional features Create awareness about the new offering to the market Increase customer reach and provide high service levels to complement the additional features Attract new customer segments and increase sales of existing customers by capitalising on the new features
International selling Reasons for international trade;
Non-availability of resources locally To gain cost benefits: some countries can produce certain products at a lesser cost Trade due to product differentiation As a result of political alliances To be less dependent on the domestic economy for survival To gain advantage of economies of scale
International selling contd Different organisational types dealing with international selling;
Multinationals: these organisations manage products and services in more than one country. Production, distribution, administration and even marketing are dispersed internationally. International marketing: where marketing strategies of product, price, place and promotion are internationally executed. Exporting: selling overseas
International selling contd European Union: some of the main features specified by the Single European Act are; (2)
Products approved in any one EU country can be freely marketed throughout the European Union Progressive opening up of government and public body contracts to all EU contractors on an equal basis Restrictions on the movement of capital to be abolished Harmonisation of national laws on patents and trademarks International selling contd World Trade Organisation (WTO) (2)
WTO supervise and liberalise international trade. It was formed in 1995, as a replacement for the General Agreement on Tariffs and Trade (GATT). The main principles of this organisation are: trade without discrimination, freer trade, predictability, promoting fair competition, encouraging development and economic reform. WTO facilitates trade agreements between countries while initiating and assisting tariff reductions. International selling contd Cultural factors affecting international selling:
Aesthetics Religion Education Language Politics Values Attitudes The sales career The following are some key qualities needed for a successful sales career:
Empathy and an interest in people: sales personnel should have good social skills and listen to customers Ability to communicate: clarity, simplicity in communications using a positive and friendly tone Determination: closing deals with customers in an appropriate yet profitable manner Self-discipline and resilience: need to be able to cope with stress, barriers and challenges that come their way 1. American Marketing Association. Dictionary [homepage on the Internet]. No date [cited 15.12.2011] Available from: http://www.marketingpower.com/_layouts/Dictionary.aspx?dLetter=S
2. Jobber D, Lancaster G. Selling and Sales Management. England: Pearson Education; 2009
