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Marketing Notes - The material places focus on international
sales management. The textbook emphasizes
Digital Marketing (University of Roehampton)
Studocu är inte sponsrat och får inte stöd från något college eller universitet
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Chapter 1: Development and role of selling in marketing
What makes a good sales pitch:
● Reassurance from salesperson to decrease risk of buying
● Outlining strengths and weaknesses
● Logical vs emotional selling - know that difference
● Must be genuine (countering other reasons)
● Using a ‘Sweetener’ You buy this product, and i will throw in a complimentary
item/service once you purchase
What is selling?
● Convincing another party to buy our product/service
● Last step in the chain of commerce. Where buyer exchanges cash for seller’s
goods/services
● Can be across multiple channels: e.g. online, TV, Telesales, Social media etc.
● Job interviews and dates are another form of selling
PROS of Personal Selling:
- Interactive - Q&A
- Adaptive to customer needs
- Build relationships
- Opportunity to close a sale
CONS of Personal Selling
- Sales calls are expensive
- Experience and expertise varies
- Difficult to standardise (Good/ bad days)
- Training can be costly / labour intensive
- Cutting costs during covid / expensive
Directs VS Indirect selling:
Direct Selling is over the counter to the customer
● Through your own website or another website (amazon.com)
● Through email marketing, telemarketing, mail drops
● PRODUCT TO CUSTOMER
Indirect Selling is through affiliates (3rd parties)
● Sells in partnerships on a commission basis
● Wholesale Rates
● Tour operators, travel agents, destination management companies
● (Virgin Holidays, Kuoni Travel, Expedia, booking.com)
● THIRD PARTY TO CUSTOMER (MIDDLEMEN)
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Characteristics of Modern Selling:
● Customer Retention/Deletion
○ Keeping track of priority customers (80/20 Rule)
●
Database and knowledge management
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Customer relationship management
○ Building relationships, listening skills, giving time to reflect, raise concerns,
reassurance, building trust, dont lie, who will fix the problems?
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●
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Marketing the product
Problem solving and system calling
Adding value/satisfying needs
Types of Selling (Page 8, 9, 10):
Inside Order Takers:
● Customers do not need help during the buying process
● Don't need to be persuaded by salespeople, know what they want
● Purely Transactional- receive payment in turns of goods (Supermarket checkout)
● Telemarketing sales team that takes orders online
Outside Order Takers:
● Salespeople’s responds to customer request
● Not actively seeking to persuading
● Replaced by more cost-efficient telemarketing teams
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Order Creators (Missionary Salespeople):
● Main focus is to convince buyers (not necessarily buy the product)
● Referral to products
● EXAMPLE: Doctors can not tell patients to buy medicine, they can only prescribe
medicine
● Educate and build goodwill for customers
Order Getters (Front Line + Sales Support Salespeople):
● Persuades customers to make direct purchase
● Most challenging way of selling
● Ability to define prospects, persuading, negotiating, building profitable business, fierce
competition
➢ Technical Support Salespeople
○ Provide sales support to front line
○ Technical product w/ hard negotiation
○ Supported by a more advanced specialist who can provide more technical detail
○ Selling situation may be required
○ Sometimes classified as order-getters
➢ Merchandisers
○ Support to retail/wholesale selling
○ Orders negotiated at HQ
○ Sales are made by giving advice on display, promotion, stocking, contact with
managers
Business to Consumer Markets (B2C)
● Fast Moving Consumer Goods (FMCG)
○ Low financial outlay / cheap
○ Non-durable
○ Bought frequently
○ Things we buy without thinking too much
○ No risk
○ May be continuous purchases (e.g. Coke)
●
Semi-durable consumer goods
○ More money, last longer that FMCG
○ Clothing, shoes, jewellery, soft furnishings, decorative items
○ Bought less frequent than FMCG
○ Customer spends time considering other options
○ Weighing out options
●
Durable consumer goods
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○
○
○
○
○
○
○
○
More expensive (depends on financials)
Cars, phones, computers
Least frequent purchases
More emotional decision needed
More thought process - Wide range of options to choose from
Ask advice from friends and family (validation)
Most psychological risk
Read reviews for feedback
Business to Business (B2B)
● Different buyer profile - emotions are not as much attached
● Logical approach, spendings may be justified
● Significant financial outlay (Range from $1m - $100m ++)
● More structures, may involve whole team to make decision
● Large and powerful buyers
● Usually has a goal in mind when purchasing
What are the key qualities of salespeople?
1. Connection with people (peoples person)
2. Empathy and interest in people
3. Determination/persistence - follow up
4. Self-discipline/self learning/ self curiosity
5. Networking with people (small talk) - Getting info about the business
6. Use of language
7. Persuasive
8. Can deal with rejection - remain positive mindset
Modern Salespeople are no longer aggressive or cocky, they can be gentle and caring
Modern Customers are more gender neutral and are no longer racist
Modern businesses in modern days are intercultural, we must be sensitive about race and
how to deal with different customers from different races/backgrounds/religions.
Negative Image of selling:
● Selling is not a worthwhile career (depending on where you're from)
● Good products will sell themselves - selling process is unnecessary
● Immoral beliefs
● Suspicious of people who make a living from sales
● People are not always friendly
● Too much time away from home
● Being alone
Duties & Responsibilities of a Sales Manager:
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Believing in the bigger picture - to be actually convincing to customers
Determining salesforce objective + goals
Forecasting + budgeting
Salesforce organization, size, territory design and planning
Salesfroce selection, recruitment, training
Motivating salesforce
Salesforce evaluation and control
Five Main Business Activities:
Sales/Selling Orientation
Companies adopt ‘selling orientation’ in their marketing practices when they find themselves
to be in a situation where there is an extreme over-capacity of items within their inventory.
For this reason, they are forced to respond to that by persuading their customers to buy
these specific products. This is done via usage of aggressive sales and promotions to
attract customers. In this stage, the business is not concerned with anything else other than
understanding how to best sell the product or service. If we link this to supply and demand,
we can say that the supply is too high, whereas the demand is too low
(Example: Buy one get one strategy used in the supermarket. Many grocery companies use
this technique in their customers' buying process. This method enables companies to make
large sales of their products.) BOGO Strategy
Production Orientation
The focus of the company during ‘production orientation’ is to produce goods and services.
In this, companies were able to increase their productivity and efficiency in the production of
goods as they resorted to large-scale production techniques. Producing in mass allowed for
companies to sell products at lower prices due to economies of scale, which attracted
customers more.
(Example: Companies like Apple which produce high-end technology, or five-star hotels like
Ritz-Carlton which provide exceptional services, Costco Wholesale - more for less)
Product Orientation: Quality > Price
The business aims at producing quality products/sales instead of focusing on the price as
they believe that a certain group of customers place more importance on the quality
and performance of products. It aims to produce the best products to the customers and
feature added value.
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(Example: Sony, the company focuses on producing innovative products, rather than the
meeting the wants of the customers. The company focuses on quality of the product)
Marketing Orientation:
Businesses that respond and target customers need and want to further design its
product or service. As well as research the market before entering the market. (Customer
catered product/service)
(Example: Amazon, Apple Computers, Starbucks Coffee, Virgin Group, L'Oréal, Louis
Vuitton, Nike)
Service Orientation:
Businesses that take care of the customer needs over the company’s needs. Mainly
focus on service and customer experience
(Example: Nordstrom aims at customer’s feedback and is known for its positive customer
experience. The business aims to meet the needs of the customers and focuses on
achieving social awareness)
Chapter 2
The Marketing Concept:
● To be market orientated
● Internal market is just as good as external market
● Organizations must be consistent with their messages in terms of attitude
Apple is good at marketing because it is built on simplicity - keep visuals and messages
simple. They know the product will sell itself. (No expensive special effects, pricing, feature
list)
Market Segmentation ● Breaks down groupings to understand targets better.
● Help monitor changes in the market in case a segment is no longer viable
● Understand in detail of each segment can help generate sales
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Geographic - Nations, states,regions, cities, climate (e.g. asian vs west taste buds)
Psychographic - Lifestyle, personality, characteristic (e.g. big 5)
Demographic - Age, life-cycle stage, gender, income, occupation, family size
Behavioural - Consumer knowledge, attitudes, use of product
Occasion Based - Events, special occasions, weddings
The Marketing Mix:
Product: Features, packaging, quality, te product being sold
Price: Prive levels, credit terms, discounts, price changes
Place: Inventory, channels of distribution, number of intermediaries
Promotion: Advertising, publicity, sales promotion, personal selling, sponsorship
(communications mix) when they are worked in harmony -”integrated marketing
communications”
Marketing Mix (4p’s) in B2C:
Product: Branding, packaging, logos, etc. are very important as they provide
“reassurance”. Typically short life cycles, innovation and new products are important.
Promotions: More advertising than personal selling (aimed at mass)
Price: Value for money important (having a good deal/negotiating)
Place: Through intermediaries (retailers) - AMAZON, EBAY, WAITROSE
Marketing Mix (4p’s) in B2B:
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Product: More about features (not appearance), reliability is important, product often
customized, buyer interested in technical specifications, functionality is important (How can I
use it?)
Promotion: emphasis on personal selling (stronger emphasis than B2C)
Price: Important, but the added value matters more (warranty, additional components)
Place: Can be done through intermediaries (retail) but mainly direct
People: Sales team, crucial in selling the product
Relationship between Sales and Marketing:
● “Them VS US” Mentality (Historically)
● Sales is part of the marketing strategy
● Marketing is the total effort of the company to satisfy the customers
● How we ‘target the customer’ and how we ‘create a differential advantage’ will
impact Personal Selling.
● Marketing creates new products and services; sales teams go out and sell the
product and services with supporting promotional activities.
● When put together (collaborate) = profitable business + amazing customer relation
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Chapter 3:
Planning: To be effective, sales activities need to take place within the context of an overall
strategic marketing plan
➔ Needs to complement other marketing activities
➔ Need to complement and not compete with other marketing activities
Sales Planning Process
The Marketing Plan (blueprint)
● Structurized set up of different elements
● A written document that provides the blueprint or outline of the organization’s marketing
activities
● Includes: implementation, evaluation, and control of activities
● Not the same as a business plan
● Requires a great deal of information from many different sources
How to determine a good marketing plan:
● How are we now vs the future - looking ahead for direction
● Explains both present and future situations of the organization
● Must have specific goals
● Specify the expected outcomes
● Describe specific actions that will take place
● Identify the resources that will be needed
● Permit the monitoring of each action and it’s result
● Communication
● SMART Goals - HAVE SPECIFIC GOALS SET UP
○ Measurable - Did we achieve 10% Sales increase after 10 years
○ Financial thought process
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Organizational Aspects of The Marketing Plan
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Top managers perspective on the marketing plan:
○ Will the marketing plan achieve the desired goals and objectives?
○ Are there alternative uses of resources that would better meet the firm's
objectives?
Make sure it is best use of your money
Marketing Analysis (Marketing Audit)
1. Current/recent size and growth of market
2. Analysis of customer needs, attitudes and trends in purchasing behaviour
3. Current marketing mix
4. Competitor analysis
a. Current strategy
b. Current performance
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c. Their strengths and weaknesses
d. Expectations for future actions
The External Audit Consists of Macro-environment trends:
Political - GDPR (privacy of citizens), protect unfair competition
Economic - Affect consumer power, spending power, quality offered must be real, ZMOT
Socio-cultural - Core belief (difficult to change, religion), Secondary belief (easy to change)
Technology - Most dramatic force in marketplace today, new opportunities threat to existing one
Legal - Law, regulations, rules
Ecological - Sustainability, climate change, pollution, weather
STEEPLE more used nowadays
SWOT Analysis:
Strengths - Things the company does well / company
qualities
Weaknesses - Limitations of company, unclear USP
Opportunities - Few competitors, booming product
Threats - More competitors, changing attitudes
to company
SMART Objectives:
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Specific - Improve user experience by implementing a marketing plan
Measurable - Respond to all emails within 8 hours and hire 3 people every hour
Achievable - Salary budgets are adequate to achieve these goals
Realistic - S&M are key drivers to revenue and profit
Time related - I will increase sales by 98% by December 10
Contribution of Sales function:
Where Sales make a contribution to the planning process: “You believe what you sell”
● Analysis of current market situation (marketing audit)
● Determine sales potential/sales forecasting
● Generating and selecting strategies
● Budgeting, implementation and control
The Promotional Mix (Marketing Mix)
1. Advertising
2. Sales Promotion
3. Publicity/Public relations
4. Personal Selling
+
+
Direct Marketing
Interactive/Internet Marketing
Which Promotional Mix to use:
Type of Market (B2B, B2C)
● Advertising & sales promotion (B2C)
● Personal Selling (B2B)
Buying Process:
● Advertising and publicity in earlier stages
● Personal selling in later stages
● When to “cold call”
Push vs Pull Strategy:
● Push: Personal selling and trade promotion
● Pull: PR, advertising, digital marketing (social media)
Stages in the buying process:
● Unawareness
● Awareness
● Comprehension
● Conviction
● Purchase
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Chapter 4: Consumer and organizational buyer behaviour
Consumer buying vs Organizational buying:
● LESS organizational buying
● Long term relationships between organizational buyers and sellers
● Organizational buyers is more complex
● Negotiation is often important in organizational buying
● Consumer buying is more driven by their needs wants, demand and peer pressure
Consumer buying behaviour - WHO BUYS?
(5 roles in the decision making process) 6 Structure in DMU
● Initiator - Starts the process of considering a purchase. Information can be gathered
from this person to help buying decision
● Influencer - A person who persuades others to buy. Someone who knows alot about the
product and imposes their choice criteria on the decision.
● Gatekeepers - They press the stop and go button. Can be seen delivering information to
decision makers or stalling the flow of decision making process
● Decider (decision maker) - Individual with the power / financial authority to make
ultimate choice regarding which product to buy
● Buyer - Person who conducts the transaction (calls supplier, visit store, makes the
payment, conducts delivery)
● User - The actual consumer / user of the product
(Example in Hospitality: Affects how guests choose hotels/restaurants. You want to know what
factors led to them choosing your hotel.)
Types of consumers in hospitality:
● Families
● Business Traveller
● Solo Traveller
● Millennials
● Fast booker
● Elderly
Why is studying behaviour important?
● Increase sales
● Setting prices (what room rates should be applied?)
● Designing sales and promotion & methods (email marketing)
● Helps in creating a competitor analysis (Who visits our competitors?)
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Helps in forecasting (What rates for what period? Summer Period)
Helps in targeting and segmentation (Where does our hotel sit in the market?)
Helps in designing the product or service portfolio (How should we improve offering?)
The consumer Buying Process:
Irrational and unpredictable, does not always follow the sequence, loyalty may change pattern
1. Need recognition (unawareness)
a. External/internal stimuli “ oh I need a new iphone”
b. Motivation to change iphone came from external/internal reason
c. When a customer needs more, that will satisfy their wants
d. Needs/wants “I need water but I want Evian”
e. Demand - When wants are backed up by customer’s ability and willingness to
pay
2. Search for information (Awareness)
a. Search for product detail after buying
b. Internal (low involvement decision making)
c. External (Word of mouth, high involvement)
d. Degree of risk involved: financial, social, emotional
e. Cost of search
f. Evoked Set: narrowed down alternatives, that customer is considering
3. Evaluation of Alternatives
a. Consumer evaluates other options / competitor brands
b. There may be other products that satisfy customer’s needs
c. What one person finds interesting, others may not
d. Customers evaluate products as bundles of attributes (brand attributes, product
features, aesthetic features, price)
4. Purchase moment / decision
a. Make appropriate decision
b. Where the relationship starts between buyer and seller
c. When they officially become a customer
d. Potential intervening factors may arise between intention to buy
i.
Unforeseen circumstances
ii.
Bad relationship by colleagues (salesperson can influence purchase
decision)
iii.
Unable to finance
iv.
Customer changes mind
5. Post purchase moment
a. Never leave customers feeling conflicted after purchase (positive note only)
b. Customer reviews - your review becomes a source of info for another customer
c. Outcomes: Delight, satisfaction, dissatisfaction, cognitive dissonance
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Cognitive Dissonance - Leon Festinger,1957 (internal struggle) “you smoke but you know it's
bad for you”
● Marketer can overcome this by giving little info to customer, to convince customer to
make them feel justified for buying a product
Factors Influencing Consumer Behaviour:
Organizational Buyer Behaviour:
Structure - The WHO Factor: Who participates in decision making process
Process - The HOW Factor: Pattern on information getting analysis, evaluation and decision
making, which takes place as the purchasing organisation moves towards a decision.
Content - The WHAT Factor: Choice criteria used at different stages of the process and by
different members of the decision making unit
Organizational Buyer Process:
1. Recognition of a problem (need)
2. Determination of characteristics, specification and quantity of needed item
3. Search for and qualification of potential sources
4. Acquisition and analysis of proposals
5. Evaluation of proposals and selection of supplier(s)
6. Selection of an order routine
7. Performance feedback and evaluation
Factors affecting organizational buyer behaviour:
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Buy class (new task, modified rebuy, straight rebuy)
Products/service type (materials,equipment,etc)
The importance of the purchase
Developments in purchasing practise (B2B)
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Centralized purchasing - One team decides for the entire company
Systems purchasing - Complete systems instead of individual components
Reverse Marketing - Purchaser approaches suppliers and persuades them to meet
their new supply requirements (Adjust products)
Leasing - Owner of an asset grants right to use asset for a period of time to another
party in exchange for payment of rent (e.g. photocopy machine)
Relationship Management:
● Such long-term relationships can have significant advantages to both buyer and
seller.
● Risk is reduced for buyers since they get to know people in the supplier
organisation and know who to contact when problems arise
● Communication is improved and joint problem solving and design management
can take place
● Dependence can be raised by increasing the number of partners and/or by
reducing switching costs (switching cost = changing supplier)
● Buyers are increasingly treating trusted suppliers as strategic partners, sharing
information and drawing on their expertise when developing cost-efficient,
quality-based new products. (trust)
Chapter 7: Consumer and organizational buyer behaviour
Selling in The Marketplace
● Extension of marketing concept
● Salesperson must understand customer's needs and aid in decision-making
● Help customers to assess their needs and offer products that fulfil those needs
● Salesperson = Need identifier and problem solver
Sales Responsibilities:
The Primary responsibility is to conclude a sales successfully
Secondary functions are carried out for long-term sales success
1. Sales and profit success
2. Database and knowledge management
a. The more we know, the better we can cater to them
3. Self-management
a. Self responsibility, delegation and trust from management
4. Handling complaints
5. Relationship Management
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a. Always follow strategy + core value
6. Providing services
7. Implementing sales and marketing strategies
8. Prospecting
a. Finding new customers/business
b. Calling new customers who have not bought from company
c. More important in industrial selling than retail
d. Identifying prospects = ‘lead generations’
Sources of prospecting
● Existing customers
● Business directories (yellow pages)
● Enquiries (call-in)
● Websites and search engines
● Press and the internet
● Cold Calling (cold canvassing)
Pros and Cons of Cold calling:
Can find new leads and have new customers, generate new sales, Can be done anywhere in
the world
May bring people a negative feeling towards you/company, annoying to many people, long
hours, hard work, rejection
Preparation for selling and sales negotiations:
● Product knowledge and benefits
● Competitor knowledge
● Sales presentation planning
● Setting sales objectives - what you want customer to do
● Sales cycle: understand buying behaviour
Example (Product feature)
High revolution speed on spin dryer, high reach on forklift truck, automatic washing machine
Example (Customer benefit)
Clothes dried rapidly, Greater use of warehouse space, more time spend on doing other
mundane things
Sales Presentation Planning:
● Less likely to forget consumer benefits associated with the product
● Use of visual aids and demonstrations can be put into PPT to reinforce the benefit
● Builds confidence for salesperson, (the newer they are can benefit from doing the job
efficiently and professionally)
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●
Possible objection and questions can be anticipated + persuasive
counterarguments
○ More experience = more likely they will say yes
Preparation for Sales Negotiations:
● Assessment of the balance of power (4 factors):
○ Number of options available to each party
■ If buyer only has one option - Powerful seller
■ When seller has few customers - powerful buyer (bargain)
■ Buyers usually find more than one supplier in order to bargain
○ Quantity + Quality of information held by each party
■ If buyer knows sellers cost structure and other figures on the price, they
can get it for cheaper
○ Need recognition and satisfaction
■ The more salesperson understand buyer needs- strong negotiating
position
○ The pressures on the parties
■ Any supplier who can solve a technical problem automatically wins
bargaining power
■ On the other hand, the pressure is on salesperson, because of low
returns, then buyer takes power
●
Determination of negotiating objectives - reduces the likelihood of being swayed by
the heat of the negotiating battle and of accepting a deal that, with the benefit of
hindsight, should have been rejected
○ ‘Must have’ objectives’ - minimum price at which a seller is willing to trade. This
determines the negotiating breakpoint
○ ‘Would like’ objectives - highest price a seller feels they can realistically obtain
Concession analysis: Examined during concession analysis include price, timing of delivery,
the product (specification), optional extras, price, trade, payment.
The aim of concession analysis is to ensure that nothing that has value to the buyer is given
away freely during negotiations.
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A skilful negotiator will attempt to trade concession for concession, so that, ultimately, an
agreement that satisfies both parties is reached.
Relationship Management: The relationship between salespeople and others in the
company to ensure a smooth sales process and efficient delivery and service of the product. All
salespeople rely on a team behind them.
● Good relations with accounts staff to facilitate collection of payment and outstanding
payments
● Good relations with marketing staff to provide promotional materials, customer and
market information, deal with launching of products
Chapter 8: Personal Selling Skills
Key characteristics of salespeople desired by buyers
● Expertise
○ Good communication skills
○ Ability to solve problems
○ Ability to understand and satisfy buyer needs
○ Thoroughness
○ Ability to help in ensuring the reliable and fast delivery of orders
The Personal Selling Process ‘ 7 phases’:
1. The Opening
a. Warming welcome
b. Common courtesies
c. Attention to detail
d. Build Rapport
e. Good first impression
2. Need and Problem identification
a. Discover needs / problems of the customer
b. Offer solution to customers
c. Open vs closed questions (in what ways did ABC cream fail to meet your
expectations?)
3. Presentation or Demonstration:
a. Tangible evidence to support benefit proposition
b. Sales interaction
c. Features - value (customer value)
d. Benefits of product / purchasing from the company (not competition)
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e.
f.
g.
h.
i.
Reduce risk of reference selling (encounter the objection from buyer)
Reduce cognitive dissonance, faster decision making
Easier to ask
Guarantee of after sale service + reliability (build confidence, lessen buyer
worries)
Trial orders can build confidence for long-term businesses
Demonstrations are used to reduce risk b/c they prove benefits of the product, to obtain sales
immediately, follow up for future negotiations.
2 stage demonstration (Easier for customer to digest knowledge):
● Stage 1 = Brief description
● Stage 2 = Actual demonstration
Pre-demonstration (Stage 1):
● Brief - fulfil sales objective
● Simple - Don't over pitch)
● Rehearse w/ colleagues
● Know selling points - “you” benefits
● Be prepared for eventualities
Conduction of demonstration:
● Make presentation a satisfying as possible
● Show how the products fulfil their needs
● Do not leave purchaser until they are satisfied w/ demonstration (reduce complaints)
● Summarize main points (re-emphasize purchase benefit)
4. Dealing with objections
a. Many objections are simply interests from the buyer. They want further
information because they are not yet convinced (people do not like to be proved
wrong)
Type of objections:
● Price rate objections
● Product or service objections
● Lack of interest or urgency objections
How to deal with the objections:
1. Listen and do not interrupt
a. Lead to misunderstandings
b. Interruptions denies buyers
2. The straight denial
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3.
4.
5.
6.
a. When buy is seeking factual information
b. Handle with care! (may end badly)
Forestall the objections
a. May be miscommunicated
b. May highlight an occured problem to buyer
c. Raise the concern as part of your pitch
d. Timing of the objection is controlled by salesperson
e. Buyer dont feel it must be defended
Hidden Objections
a. Some buyers don't say anything
b. Asking question to buyer give reassurance
Trial Close (conclude)
a. If I can fix this, are we good to go?
b. Turn objection to trial close depend on perfect timing
Question the objection
a. Explaining exact nature of objections, buyer may then realize these are quite
trivial
5. Negotiations
a. Price high to low
b. Credit terms
c. Delivery time
d. Trade-in values
Guidelines to aid the salesperson:
● Start high but be realistic (negotiation)
● Attempt to trade concession for concession (Salesperson offer benefit to buyer w/very
little cost to seller
● Implement behavioural skills (communication, patience)
○ Ask lots of questions
○ Maintain clarity by understanding + summarizing
○ Give feelings
○ Avoid irritation
○ Avoid personalizing the discussion
6. Closing the Sale - time plays a big role
a. Ask for the order
i.
“Would you like to buy it?”
ii.
Keep silent after asking for order. Yes or no
b. The conessinon close
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i.
ii.
Final push moment when buyer is in thinking process
“If you place an order now, I’m able to offer a 25% discount.”
c. The Objection Close
i.
Use of an objection as a stimulus to buy
ii.
When salesperson perceives there is an objection blocking the close
iii.
“If I convince you this model is the most economical in class. Will you buy
it?”
d. Action Agreement
i.
Closing a sale is a long process, which is why salesperson will agree to
do something before the next meeting
ii.
Builds relationship + rapport
iii.
Persistence is key for final decision but don't be too persistent
iv.
Salesperson must leave right after sale because buyers can also change
their mind
e. The assumptive close
i.
Assume buyer will purchase but moves towards other factors: color,
delivery time, payment
ii.
Salesperson suggests two alternatives, both leads to closing the sale
iii.
“Would you like red or blue”
iv.
“Would you like it delivered on Tuesday or Friday?”
f.
Summarize then ask for order
i.
Remind buyers of main points. “Moment has come” decision
ii.
“We have agreed that CX5 meets your requirements of low noise and
comfort at a cost you can afford. May I go ahead and place your order”
7. Follow - up
a. Ensure that the customer is satisfied with everything: delivery, installation
b. The goal is to have repeat business
c. Gives buyer reassurance of their purchase
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Recent developments in sales techniques: where the salesperson is encouraged to
ask four different types of question of the buyer/customer
(SPIN Questions)
Situational Questions :
● Always sales to understand context
● “In which areas have you noticed a fall in performance?”
● Do you prefer a room facing north or south?”
Problem Questions:
● Uncovers the problems that need fixing
● Source of dissatisfaction from buyer that sales might not have considered
● Something that irritates guest, that can be fixed by becoming their problems
Implication Questions:
● Guides buyer how their problem can be solved
● “What type of documents would be needed to oversee performance in F&B?”
Need/Pay-off questions:
● Encourage customer to identify benefits of adapting product/service
● Create positive emotions on buyer
● “I noticed the rooms in the middle east have larger rooms as opposed to the rooms here.
Would you like me to upgrade you to a bigger room for a change of $100 more instead
of $200 more?”
● What you get in return
● Clear, convincing sale when buying the product/sale
Chapter 9: Key Account Management (KAM)
From transactional selling (A to B) to Key Account Management
● Heightened desire from customers to develop partnerships
● Up to 70% of business can sometimes be accounted for by few customers
● Centralized buying, companies have to reduce sales force in response to increase buyer
concentration
KAM - is a strategy used by suppliers to target and serve high-revenue potential customers with
complex needs by providing them with special treatment in terms of marketing, admin, service,
etc.
● For existing customers + Future customers
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Distinction between transactional selling and key account management:
(Some big companies have preferred hotels to stay in. Negotiated in contract)
Key Account MAnagement: For and Against (for sellers):
Benefits:
● Close working relationship with customer
● Better follow up on sales and service
● More time to cultivate relationships with key account (pull vs push)
● Higher sales / evidence of higher sales
● Lower costs / optimum process which results in lower costs
● Integrated systems
● Cooperations on R&D and joint promotions
Potential Dangers:
● Risk of increased dependence on a few customers
● Customer becoming too demanding = Big loss when losing
● What if the wrong accounts are defined (customer will walk away)
● Don't forget the smaller accounts
● Is every team member on board? Sharing the limelight
Key Account Management: For and Against (for customers):
Benefits
● Improved Service
● Improved communication and coordination
● Improved terms
● Avoidance of switching costs
● Customized offerings
● Cooperation on R&D
Potential Dangers:
● Over reliance on one or a few sellers
● Complacency on both side
● Might be looking at other supplier’s
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Key Account Management: Whether to use or not? (Should we always focus on KAM?)
IF:
● If few customers account for high % of sales (then yes)
● Customer location calls for it
● Working in DMU (decision making unit) vs individual buyer
● Multifunction contacts are called for/prevents multiple sales calls
● Significant cost savings will occur
● There are potential R&D opportunities
● Customers are centralising operations
● The competition is also using KAM
● Sometimes small businesses use KAM to build relationships
Key Accounts: Criteria for Selection:
(No longer based on Quantity sold but also)
1.
2.
3.
4.
Strategic (high performance and potential)
Growth (high potential but lower performance)
Maintenance (high performance but lower potential)
Marginal (low performance and low potential)
Setting up a KAM is a major investment so need to be thought through and get senior
management support - potential clients are important as well
Key Accounts: Related Tasks and Skills
Key Accounts: Building & Handling Relationships:
Success Factors:
● Develop a clear strategy
● Add value
● Customer insights
● Commitment from senior management
● Added value
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●
●
Orchestrator
Implementation of the KAM concept
Building Relationships with Key Accounts:
(5 ways supplier can build strong customer relationship with key account)
● Personal Trust (Confidence and reassurance)
● Technical support ( provide know-how/improve productivity)
● Resource support (reduce the account’s financial burden)
● Service Levels (improve the quality of service)
● Risk reduction (lower the uncertainty in the customer’s mind)
Table 9.4: Handling relationships with key accounts
Chapter 10: Relationship Marketing
Relationship Management:
● Building long term connections
● Create personalized and engaging interactions
● Develop emotional connection with customers
● In contract with “Transactional marketing” (objective is to close a sale)
● Also building loyalty and optimizing customer value
● Relationship marketing’s goal is to create, maintain and grow a business relationship
between an organization and its customers
Example - Mandarin Oriental (rewards):
● Dining benefits
● Welcome Amenity / WIFI
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●
●
Members only offers
Partner Benefits
Key Differences of Transactional and Relationship Marketing:
● Short term vs long term
● Customers more price sensitive in transactional
● Transactional - Monitor market share
● Relationship - Managing customer base
Relationship Selling is a tactical arm of Relationship Marketing:
● Wide variety of media audiences
● Brand loyalty hard to sustain (customers will look around)
● Increase of technology in marketing/social media
● Prime objective of selling (RS)
● External + internal marketing
● Includes many other departments as well (finance, production, quality departments)
● Information gathering and servicing part of RS
Information Gathering: (Fees into MIS)
Marketing Information Systems (MIS) 4 inputs:
1. Marketing Research (primary + secondary)
2. Market intelligence (competitor information)
3. Own internal accounting system (analysis of customer purchases)
4. Strategic marketing plans
Total Quality Management (TQM)
● Ensuring customers perceive quality being built into product/service component of total
product offering
● Companies should focus on TQM concepts
● TQM is an ongoing process where people look to improve
● Building a TQM makes everyone feel their contributions are values
● TQM helps build capabilities
TQM Requirements:
● Understand customer requirements and looking at the whole supply chain
● Providing quality during the process (not just end result)
● Educate and training all employees
● Identifying and eliminating root causes of problems
● Basing information on researched facts than just a “feeling”
Advantages of Relationship Marketing:
● Personal Trust
● Technical support
● Service Levels
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●
Risk reduction
Disadvantages of Relationship Marketing:
● Customers being too demanding
● Every customer should be equal
● Customer can leave anytime depending on employee
Chapter 13 - Recruitment and Selection
Importance of selection
● Being aware of the seller’s perspective and take that into account the 80/20 rule
○ 80 percent of your sales comes from 20 percent of your customers (Pareto’s
Law)
● There is wide variability in the effectiveness of salespeople
○ Top salespeople do not look for approval from customers
○ They are comfortable talking about financing and/or their products
○ Rarely exhibiting emotions
● Salespeople are an extra cost and time for personnel
○ Finding the right people could make you gain money rather than lose it
○ Training and motivation are heavily dependent on the intrinsic qualities of the
recruit
○ People react positively to a range of financial, and other, incentives
Types of sales force
● Expatriates (home-country salespeople) possess a high level of product knowledge and
the ability and willingness to provide follow-up service.
○ High degree of control over global marketing and sales activities
○ More expensive than local salespeople
■ May not settle in the new country
■ Failing to understand the culture nuances to sell abroad
●
Host-country nationals bring cultural and market knowledge, language skills, and
familiarity with local business traditions
○ Shorter adjustment period
○ Extensive product training + company knowledge
○ Loyalty for HCN are less than from expats
●
Third-country nationals (country with the same region)
○ Similar culture sensitivity and language skills
○ Beneficial for organizations that are regionally oriented
○ More skilled for less costly sales force
○ Compromise between Expats and HCN
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○
Difficulty identifying where and whom they work
■ Suffer blocked promotions
■ Lower salaries
■ Adapting to new environments
Stages in the recruitment and selection process
1. Preparation of the job description and personnel specification
2. Identification of sources of recruitment and methods of communication
3. Designing an effective application form and preparing a shortlist
4. Interviewing
5. Supplementary selection aids - psychological tests, role playing
Preparation of the job description and personnel specification
Job description
● The title of the job
● Duties and responsibilities: tasks expected of new recruits
○ Selling
○ After-sales service,
○ Information feedback
○ Knowledge of range of products/markets/type of customer they are associated to
● To whom they will report (hierarchy)
● Technical requirements
○ Understanding technical aspects of the products
● Location and geographical area to be covered
● Degree of autonomy: degree of control over their work program
Personal Specification
● More subjective than job description
● Qualifications of the person to the preferred job description
● If they want people with experience, then people with less experience but more potential
would not qualify.
Table 13.1 Personality traits of successful salespeople
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Figure 13.2 Important qualities of salespeople
In summary, a personnel specification may contain all or some of the following factors:
● Physical requirements (e.g., speech, appearance);
● Attainments (e.g., standard of education and qualifications, experience and successes);
● Aptitudes and qualities (e.g., ability to communicate, self-motivation);
● Disposition (e.g., maturity, sense of responsibility);
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●
●
Interests (e.g., degree to which interests are social, active, inactive);
Personal circumstances (e.g., married, single).
Identification of sources of recruitment and methods of communication
There are six main sources of recruitment:
● From inside (the company’s own staff);
○ Immediate
○ Knowledge of company and product
○ Files on the staff
○ Cross department recruiting
● Recruitment agencies;
○ Comes with cost
○ Providing able candidates
○ Screening process done for the company
● Educational establishments;
○ University graduates
■ Knowledge of the industry
■ Some kind of training
○ Applicant may not see their long-term future in selling
● Competitors;
○ Knowing the market and its customers
● Other industries;
● Unemployed.
Communication (job postings)
● Advertisements
● Newspaper
● Funds to communicate the position opening
● Choosing the area that you would get the best applicants for the position
Designing an effective application form and preparing a shortlist
1. Personal:
a. Name;
b. address and telephone number.
2. Education:
a. schools (secondary, further and higher education institutions, courses taken);
b. Qualifications;
c. specialized training (apprenticeships, sales training);
d. membership of professional bodies (e.g., Association of Professional Selling).
3. Employment history:
a. companies worked for;
b. dates of employment;
c. positions, duties and responsibilities held;
d. military service.
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4. Other interests:
a. Sports;
b. Hobbies;
c. membership of societies/clubs.
Interview techniques
1. Physical requirements - speech, appearance, manner
2. Attainments - education, qualifications, experience
3. Aptitudes and qualities - ability to communicate, empathy, self-motivation
4. Disposition - maturity, sense of responsibility
5. Interest
For the organization:
●
●
●
●
Describe job and responsibilities
Assess candidate's ability to perform in the role
Details such as start date, training programs, terms, and conditions, benefits
Give a positive impression to the candidate of the company as a “good employer”
Categories of interviews:
●
●
●
Unstructured interview
Structured interview
Semi-structured interview
Techniques:
Traditional patterned interview:
●
●
●
Past work experience, education, and so on...(verification)
Where do you see yourself in 5 years' time? (opinion)
Why did you study Hospitality Management? (opinion)
Situational Interview:
●
●
●
●
What would you do if...? (Situational question)
What do you know about ...? (Knowledge question)
Can you work in different locations? (willingness)
Behavioral description interview:
○ Tell me about a stressful situation you found in your last job? How did you solve
it? Why did you take that approach? What was the outcome?......
Probes:
●
Follow-up questions
○ Why did you decide to do that?
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●
○ How did you prepare for this specific situation?
○ Can you give me an example?
○ Lead me through the different steps of the process.
○ What was the result?
No leading or judging
The interview itself:
●
●
●
●
●
●
●
●
●
Introduction
○ Welcome
○ Put at ease
○ Introduce (yourself – other members)
○ Explain the process of the interview
Body
○ Start with ‘Easy Questions’ or ‘Get to know you’ Questions
○ Assess competencies with behavioral questions
○ Use active listening skills and probe
○ Explain the function and expectations
Closing
○ Inform no more questions from your side
○ Give the candidate a possibility to ask questions
○ When are you taking the decision
○ Thank the candidate
One to one interviews:
○ Easy to establish rapport
○ The interviewee is more relaxed
○ Judgement based on 1 person's opinion
Sequential Interview
○ Candidate goes through different interviews, one after the other
○ A broader picture of the candidate and more representation of the company
○ Joined evaluation afterward of the candidate
○ Time-consuming for the candidate
○ Performance may deteriorate by the last interview
Panel interviews:
○ More than one interviewer
○ Each of the interviewers takes notes, and they will decide after the candidate has
left the room
Stress Interview
○ The candidate is put under pressure by the interviewer
Data gathering interview
○ Pre-selection tool
○ Attracted to the company's philosophies
■ See their flexibility
■ More to select from in Linked in. when looking at skill sets
Interview Errors and Biases:
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○
○
●
●
●
Use systematic method
Similarity error
■ Having something in common with the candidate that influences the
selection of the candidate
○ Contrast error
■ Not answering in the same ideas that the interviewee is wanting
■ Difference is affecting the selection process
○ Over weighting Negative Information
■ Interviewer not hearing what they want
■ Making assumptions from what we don't want to hear
Interview Errors and Biases:
○ Equal Employment Opportunity (Discrimination)
○ First impression error
■ Almost always wrong
○ Halo effect
■ Positive first impression
■ Always in favor of the things that the candidate does
○ Devil's horn
■ The opposite
Faulty listening and Memory
○ Human nature not emotion based
Recency errors
○
●
●
Fresh interview → old interview are at a disadvantage
Interviewer domination
○ Making the interviewee uncomfortable by asking random questions
Nonverbal communication
○ Don't show your emotion to the candidate
Supplementary selection aids
Psychological tests
1. It is easy to cheat - Respond to what they want the interviewer to hear
2. Many tests measure interest rather than sales ability
3. Tests have been used to identify individual personality traits that may not be associated
with sales success
a. sociable, dominant, friendly and loyalty
4. The ideal is a person who possesses a high degree of both.
a. A high degree of empathy (an ability to feel as the customer feels)
b. Ego drive (the need to make a sale in a personal way) are usually associated
with high sales performance.
Role playing
● Seeing a specific situation
○ Might be more useful, and you can gauge how the sale might go for the customer
and the applicant
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Chapter 14 - Motivation and training
Motivation: Identifying why people behave in particular ways in different situations.
1. Start working on a task or project
2. Expend time and effort on that task
3. Continue to work on the task for an appropriate period of time.
Different types of salespeople have been identified as:
● laggards: salespeople who need to be firmly encouraged to achieve targets
● core performers: this group regularly turns in a good performance, but frequently gains
the least attention from management; this group has the greatest potential for
improvement if targeted with the right incentives;
● stars: who achieve and exceed their targets, and frequently gain the greatest rewards,
but who may stop working if they feel that there is a ceiling or limit to those rewards.
Notions of motivation:
● confidence and positivity dwindle by the inevitable rejections they suffer from buyers as
part of everyday activities
What Motivates?
● Salary, bonus, commission
● Regular one to one meetings
● Merit Promotion
● Closer interaction with manager (joining on a field trip)
What demotivates?
● Lack of advancement (stuck in one place)
● Lack of security
● Lots of criticism
● Bad pay
High Levels Of Motivation
● increased creativity;
● working smarter and with a more adaptive selling approach;
● working harder;
● increased use of win–win negotiation tactics;
● higher self-esteem;
● a more relaxed attitude and a less negative emotional tone;
● enhancement of relationships
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Maslow Hierarchy of Needs
●
●
●
Help people understand the various levels of needs.
The pyramid is read from the base to the top in ascending order.
○ The first level of needs is the physiological need. If those needs are not met,
instinctively you would try to go and find resources to sustain those needs. If
those needs have been satisfied, then your motivation would increase to the next
level.
The salesperson would also work at the level of their needs.
○ More or less motivation in specific levels of needs.
Advantages:
1. Simple to understand
2. Relevant in all areas of the world
3. Help to understand what motivates humans
Disadvantages:
1. Not everyone agrees on the same order of the needs
2. Difficult to measure the level of satisfaction
3. Difference of culture
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Herzberg (Two/dual Factor Theory)
●
Factors that can cause dissatisfaction but cannot motivate (hygiene factors) and factors
that can cause positive motivation.
○ Hygiene factors: physical working conditions, security, salary and interpersonal
relationships
■ Needs but not a motivator
○ Used in combination with Maslow’s hierarchy of needs
●
Hygiene factors are there to maintain motivation of all employees and keep their
satisfaction in the workplace.
Hygiene factors are qualifiers (the feature that buyers expect to be present in a product
or service), it is essential for motivating buyers.
Help salespeople to be more productive and dedicated towards their job.
Help salespeople to be more persuasive.
●
●
●
The Four Stats:
●
●
●
●
High Motivation and High Hygiene : This is the perfect scenario and every manager
should aspire to achieve it.
High Hygiene and Low Motivation : In this case employees have few complaints, but
they’re not highly motivated. The employees are just there to collect their salary.
Low Hygiene and High Motivation: Employees are extremely motivated in this case,
but they have several complaints. A common example of this is where the job is
enjoyable and fascinating, but the wages and benefits are inferior to those offered by
competitors in the same industry.
Low Hygiene and Low Motivation: This is clearly a terrible condition for a company or
team to be in. Employees are unmotivated, and sanitation standards are deplorable.
Vroom’s expectancy theory
● Dependent upon their expectations for success
● Three concepts: expectancy, instrumentality and valence
○ Expectancy: perceived relationship between effort and performance
○ Instrumentality: performance and reward (promotions, benefits, etc.)
○ Valence: Personal value of reward given
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●
Sales management specify and communicate to the sales force these performance
criteria, which are important in helping to achieve company objectives, and to relate
rewards to these criteria
Likert’s sales management theory
● looked specifically at the motivation of salespeople
● characteristics and styles of supervision to performance
● Managers leading the team by example
Leadership, leadership styles and their key characteristics
● Convince salespeople that they will sell more by working harder, or by being trained to
work ‘smarter’
● Rewards for better performance are worth the extra effort.
○ Give rewards that are valued, and attempt to ‘sell’ their worth to the sales force.
● Strong, defined sense of purpose
● Effective communicators
● Persistent and hard-working
● Self-aware
● Learners
● Love their work
● Inspire others
● Establish human relationships based on trust, respect and caring.
● Risk-takers
● Keen to help others attain their goals
● Ability to motivate and inspire salespeople to grow and learn
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Leadership Styles:
Motivation, with focus on financial incentives, sales targets, meetings and sales contests
● Salespeople are often separated from direct observation and contact with their
supervising manager
● not always a direct relationship between effort and success
Financial Incentives
● Bonuses
● salary-plus-commission system
Setting sales targets or quotas
● regarded as fair and attainable and yet offer a challenge to them
● the liquidation of a key customer in a territory may be reflected in a reduced quota
● be used flexibly to motivate salespeople to attain specific goals
Meetings between managers and salespeople
● understand the personality, needs and problems
● Sales management thought that competitions/prizes and incentives based on target
setting motivated salespeople
● Salespeople, on the other hand, valued fringe benefits higher than sales management.
● may form part of an evaluation and training program
● greater sense of group loyalty and improved performance.
● Giving feedback to what's good/needed
Sales contests
● appeal to the competitive spirit of salespeople and their need for achievement and
recognition
● Can cause cheating or fighting
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Chapter 15 - Structuring the sales force and rewards
Types of Compensation Plans:
Fixed Salary
● More willing to provide technical service
● Often tasks include: info feedback reports and carry out prospecting
Pros: Safe, no uncertainty
Cons: No direct incentive for increasing sales, holding on to higher performing salespeople may
be hard, unfair treatment
Straight Commission Based
● Incentive to sell
● People may not want to do tasks that are reluctant
● Pursue short term goals
Pros: Good for management to have control over the sales team, Sales are in control of what
they earn (most of the time)
Cons: Little job security, situational based performance (may not always be good), Long
decision making process
Salary + Commission
● More stability
● Confidence towards salespeople
● Incase of a bad month, they will still get paid
● Driven/motivated
● More confidence = More sales
How to organize a sales force (Types of Organizational Structures)
Geographical:
● Simplicity
● Salesperson assigned its own territory which they look after
● Encourages development of friendship
● Lower travelling expenses compared to other organizational forms
● Required to sell a full range of company’s products (diverse markets)
● Unreasonable for salesperson to have detailed knowledge on each product
● Weak in analysing buyer behaviour pattern (cover a wide area) - not specified
Product Specialization Structure:
● Specialized areas within product line
● There may be a range of salespeople who are selling in this product line (confusingin for
guests)
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●
New method: dividing sales forces across new and existing product
(development/maintenance structure)
Customer - Based Structures:
Market Centered:
● Range of products are the same
● Salespeople are allocated on the basis of industry served
● Banking, manufacturing, retailer
● Specialisation in market = greater insights in industry
Account-size structure:
Some organisations adopt a three-tier system, with senior salespeople negotiating with key
accounts, ordinary salespeople selling to medium-sized accounts and a telemarketing team
dealing with small accounts.
1. Close working relationships - salesperson knows who makes the decision and who
influences various players
2. Improved communication and Coordination- Customer understand a dedicated sales
team/person exists
3. Better follow up sales and service - More time dedicated to key account = more follow
up
4. More in-depth penetration of Decision making unit - Sales can ‘pull’ the buying
decision
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5. Higher sales - Most companies who have adapted Key account selling reported higher
sales
6. Provision of opportunity for advancement for career salespeople - tiered sales force,
offers various opportunities for those who wish to advance in sales rather than traditional
sales system
New/Existing Account Structure:
A further method of sales organisation is to create two teams of salespeople. The first team
services existing accounts, while the second concentrates on seeking new accounts.
1. Gaining new customers is a specialised activity demanding prospecting skills, patience,
ability to accept higher rejection rates than when calling upon existing customers, and
the time to cultivate new relationships.
2. Placing this function in the hands of the regular sales force may result in its neglect,
since the salespeople may view it as time that could be better spent with existing
customers.
3. Salespeople may prefer to call upon long-established customers whom they know,
rather than prospects where they might face rejection and unpleasantness.
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