Sales Planning
Chapter – 1
Development and Role of Selling in
Marketing
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The Nature and Role of Selling
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The simplest way to think of the nature of
selling is that its function is to make a sale
Characteristics of Modern Selling:
Customer retention and deletion 80/20 ratio
Database and knowledge management new technology internet, mobile
and laptop
Customer relationship management ,long relationship, win to win
Marketing the products involve in marketing activities
Problem solving and system selling knowledge about any problem
Satisfying needs and adding value
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Success Factors for Professional
Salespeople
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The top ten success factors in selling:
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Listening skills
Follow-up skills
Ability to adapt sales style from situation to situation
Tenacity – sticking to the task
Organizational skills
Verbal communication skills
Proficiency in interacting with people at all levels within an organization
Demonstrated ability to overcome objections
Closing skills
Personal planning and time management skills
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Types of Selling
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Selling job varies according to the nature of the
selling task.
They are:
Order-takers respond to already committed
customers
Order- creators do not directly receive orders since
they talk to specifiers rather than buyers
Order- getters attempt to persuade customers to place
an order directly
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Order- takers: There are three types of order
takers. They are
Inside order- takers – the sales person’s task is
purely transactional – receiving payments and
passing over the goods, telemarketing
Delivery salesperson – the sales person’s task is
primarily concerned with delivering the product
example milk, newspaper
Outside order takers visit customers , but their
primary function is to respond to customer
requests rather than actively persuade (replce
telemarketing)
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Order – creators are called Missionary sales
people, their selling task is to educate and build
good will. Examples Medical representatives
call on the doctors to make them specify their
medicines to the patients, similarly even in the
building industry architects act as specifiers
Order getters consists of those in selling jobs
where a major objective is to persuade customers
to make a direct purchase
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Types of order getters are:
New business sales people – whose task is to get
new customers
Organizational salespeople whose main job is to
maintain close and long-term relationship with
organizational customers. The selling job
involve team selling
Consumer sales people sell physical products
and services to individuals example, cars,
insurance and rewarded with commission
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Technical support sales people are group of
order getters who provide sales support to frontline sales people
Merchandisers provide sales support in retail and
wholesale selling situations example, give
advice on display, check stock levels and
maintain contact with store managers
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The nature and role of sales management:
The emphasis is on the word management
Nowadays the sales manager is expected to play
a much more strategic role in the company and is
required to make a key input into the formation
of the company plans.
Apart from being an accountant, a planner, a
personnel manager and a marketer.
In order to fulfill these roles the sales managers
will have to undertake the following specific
duties and responsibilities
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Determination of sales force objectives and
goals
Forecasting and budgeting
Sales force organization
Sales force size
Territory design and planning
Sales force selection, recruitment and training
Motivating the sales force
Sales force evaluation and control
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Marketing Concept
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In tracing the development of the marketing
concept it is customary to chart three
successive stages in the evolution of modern
business practice.
They are
Production orientation
Sales orientation
Marketing orientation
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Production orientation: This era was
characterized by focusing company efforts on
producing goods or services. More specifically,
management efforts were aimed at achieving
high production efficiency, often through the
large scale production of standardized items.
Sales orientation: The sales oriented company is
one where the focus of the company effort
switches to the sales function. The main issue
here is not how to produce but, having products,
how to ensure that this production is sold.
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Marketing Orientation: The marketing concept
holds that the key to successful and profitable
business rests with identifying the needs and
wants of customers and providing products and
services to satisfy them.
Market segmentation and targeting are the two
of the most useful concepts in marketing
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The marketing mix in the case of goods include
4 Ps
Product
Price
Promotion
Place
Product covers anything a company offers to customers
to satisfy their needs. In addition to physical, tangible
products offered for sale, there are also services and
skills. There are a number of ways of classifying
products , depending upon the basis chosen for
classification.
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The product life cycle is somewhat similar to the life
cycle of humans and has four distinct stages. The stages
are
Introduction
Growth
Maturity
Decline
Implications of the product life cycle
The first obvious implication of the concept is that even
the most successful products have a finite life.
A second implication of the life-cycle concept is that
different marketing and sales strategies may be
appropriate to each stage
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Product adoption and diffusion:
This theory was put forward by Everett Rogers
in 1962 and is closely related to product life
cycle.
It describes innovative behavior and holds that
the characteristics of a new product can affect its
rate of adoption
Consumers are placed into one of five adopter
categories, each with different behavioral
characteristics. They are
Innovators, Early adopters, Early majority, Late
majority and Laggards
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Pricing
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As with the element of the mix, pricing decisions
encompass a variety of decision areas
A vital element in marketing is the buying power
of customers
In determination of price levels, a number of
factors must be considered. The main factors
include the following:
Company objectives, Marketing objectives,
Demand considerations, Cost considerations,
Competitor considerations
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Distribution
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In its broadest sense distribution is concerned with
all those activities required to move goods and
materials into the factory, through the factory and to
the final consumer
Some of the decision areas encompassed in the
distribution of the marketing mix are as follows:
The selection of the distribution channels
Wholesalers, retailers, brokers
Exclusive distribution, Intensive distribution etc.,
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Determining the level of customer service
Decisions with regard to delivery periods and
methods of transportation
Terms and conditions of distribution
Communications : Integrated Communications
mix to link advertising, sales promotion,
publicity and sponsorship together to convey a
cohesive message to target markets, one in
which each aspect supports other parts of the
communications program.
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The relationship between Sales and
Marketing
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Perhaps the most noticeable difference
between the pre- and post- marketing oriented
company is the fact that sales are later seen to
be a part of the activity of the marketing
function
Target market choice
Differential advantage
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