1ZM60 Selling New Products 2018-2019
Contents
Chapter 1: Development and role of selling in marketing..................................................................... 1
Chapter 3: Consumer and organisational buyer behaviour ................................................................ 10
Chapter 9: Key account management .................................................................................................... 16
Chapter 10: Relationship selling .............................................................................................................. 20
Chapter 7: Sales responsibilities and preparation................................................................................ 23
Chapter 8: Personal Selling Skills ............................................................................................................ 27
Chapter 4: Sales settings .......................................................................................................................... 33
Chapter 12: Internet and IT applications in selling and sales management ..................................... 39
Chapter 13: Recruitment and selection.................................................................................................. 43
Chapter 14: Motivation and training....................................................................................................... 46
Chapter 15: Organisation and compensation ....................................................................................... 54
Chapter 16: Sales forecasting and budgeting........................................................................................ 59
Chapter 17: Salesforce evaluation .......................................................................................................... 64
Chapter 1: Development and role of selling in marketing
It is important to recognise that selling and sales management, although closely related, are not
the same. In most companies the sales personnel are the single most important link with the
customer -> heavy training on selling action
Characteristics of modern selling:
Today, a salesforce must have a wide range of skills to compete successfully, shown in figure
below.
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,1ZM60 Selling New Products 2018-2019
- Customer retention and deletion: many companies find that 80 per cent of their sales come
from 20 per cent of their customers. Keep valuable ones, get rid of costly ones.
- Database and knowledge management: the modern salesforce needs to be trained in the
use and creation of customer databases, and how to use the internet to aid the sales
task (e.g. finding customer and competitor information)
- Customer relationship management: customer relationship management requires that the
salesforce focuses on the long term and not simply on closing the next sale. Focus on
win-win to have long term relationship
- Marketing the product: The role of the salesperson is expanding to participation in
marketing activities such as product development, market development and the
segmentation of markets etc.
- Problem solving and system selling: much of modern selling, particularly in business to
business situations, is based upon the salesperson acting as a consultant working with
the customer to identify problems, determine needs and propose and implement
effective solutions. Not just making someone buy a product and leave.
- Satisfying needs and adding value: the modern salesperson must have the ability to
identify and satisfy customer needs. Some customers do not recognise they have a need.
It is the salesperson’s job in such situations to stimulate need recognition.
Success factors in selling:
Types of selling:
The diverse nature of the buying situation means that there are many types of selling
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,1ZM60 Selling New Products 2018-2019
job: selling varies according to the nature of the selling task.
fundamental distinction between order-takers, order-creators and order-getters.
- Order-takers respond to already committed customers;
o Inside order taker: Here customer has full freedom to choose products without
the presence of a salesperson. Sales person just makes transaction of goods &
money
o Delivery Salespeople: salesperson’s task is primarily concerned with delivering the
product
o Outside Order takes: They 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 specifiers rather than
buyers;
o Missionary salespeople: In some industries, notably the pharmaceutical industry,
the sales task is not to close the sale but to persuade the customer to specify the
seller’s products. For example, medical representatives calling on doctors cannot
make a direct sale since the doctor does not buy drugs personally, but prescribes
(specifies) them for patients
- order-getters attempt to persuade customers to place an order directly.
o Technical support salespeople: They provide sales support to front-line salespeople
so they are normally considered to belong in the order-getters group. E.g. expert
of some complex technology that front-line salesperson tries to sell.
o Merchandiser: They provide sales support in retail and wholesale selling situations
(outlet workers etc.)
B2B and B2C marketing and selling
B2C markets:
Consumer markets are markets where the distinguishing characteristic is that the
customer is purchasing products and services their own or their family’s use. The
principal motives for purchase, therefore, are personal in nature.
- Fast moving consumer goods (FMCG): products have low financial outlays, are bought
frequently and are generally non-durable e.g. toothpaste
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- Semi-durable consumer goods: Bought less frequently than FMCG products, last longer,
and the customer may spend more time choosing between different competitive
offerings e.g. clothing and shoes, soft furnishings, jewellery
- Durable consumer goods: buying made less frequently; often involve considerable outlays,
and commit the customer. E.g. car, computer
B2B markets:
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. Demand in B2B markets
is normally derived demand; customers are often geographically concentrated
and negotiation is the order of the day in dealings between marketer and customer.
As in consumer markets, there are several distinct types of sub-markets within B2B markets, the
main ones being:
- Markets for supplies and consumables e.g. raw materials, semi-manufactured goods;
- Markets for capital equipment e.g. plant, machinery;
- Markets for businesses services e.g. consultancy, technical advice.
Selling as a career
there are a number of key qualities that are generally recognised as being important when being
a seller:
- Empathy and an interest in people: It helps to find needs to problems
- Ability to communicate: listen, understand, talk
- Determination: customers might say no when they really mean maybe, which can
ultimately lead to a yes.
- Self-discipline and resilience: cope with setbacks, rejections and failures
The negative image of selling has negative consequences in gaining salespeople, and making
them not to want to quit.
Selling skills are needed to succeed with a new venture. The most essential skill of selling is to
put yourself in your client’s shoes.
The nature and role of sales management
sales management. The emphasis is on the word management.
sales managers will undertake specific duties and responsibilities:
• determining salesforce objectives and goals;
• forecasting and budgeting;
• salesforce organisation, salesforce size, territory design and planning;
• salesforce selection, recruitment and training;
• motivating the salesforce;
• salesforce evaluation and control.
one of the most significant developments affecting selling and sales management in recent years
has been the evolution of the marketing concept.
Marketing concept
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