Selling and Sales Management BBA 228 S Chan

Selling and Sales Management BBA 228 S. Chan http: //home. chuhai. hk/~charmaine/ Head, Department of Business Administration Charmaine@chuhai. edu. hk Lecture 1 1

Selling and Sales Management In this Lecture, you will be able to: • • Understand basic concepts of Sales and Marketing Understand why selling always has a negative image Identify the responsibility of sales management Understand where selling fits into the marketing mix Lecture 1 2

Selling and Sales Management Types of Selling: Order-Takers Order-Creators Order-Getters Front-line Salespeople Sales support Salespeople Inside Delivery. Outside. Missionary New Organi-Consumer. Technical. Merch. Supportandiser Businesssational Sales. Order- Sales- Sales. Takers people people Lecture 1 3

Types of Selling 1. Order-Takers - Insider order-takers Duty is purely transactional---receiving payment/passing over the goods. e. g. sales assistant. Customers have freedom to choose products without the presence of salesperson, Customer driven - Delivery salespeople Main duty is to delivery products, i. e. milk/newspapers delivery person, Customer-driven - Outside order-takers Salespeople can visit customers but only to respond their requires, not actively seek persuade—now decreasing in number, because of inefficiency. Lecture 1 4

Types of Selling 2. Order-Creators - Missionary Salespeople To persuade the ‘customers’ to specify the sellers products. e. g. medical representatives calling on doctors is not selling directly to doctors but specifies them for patients. 3. Order-Getters Major objective is to persuade the customers to make a direct purchase, e. g. front line salespeople - Consumer Salespeople Selling physical products and services. The need to provide information and persuade the customers to make a suitable purchase e. g. cars, insurance, tele-com. salespeople Lecture 1 5

Image of Selling People generally misunderstand the job of selling: -Selling is not a worthwhile career…. -Good products will sell themselves… -There’s something immoral about selling…. Wrong!!!! -Selling is not immoral. It provides a mechanism for exchange, through this process customers’ needs and wants are satisfied -Selling is now a worthwhile career! It can be very challenging, responsible and rewarding job -Good products do not sell themselves without the selling process to deliver the benefits. Lecture 1 6

Role of Sales Management Nowadays the role of sales management has become more professional. To be a good manager, he or she is expected to: üDetermine salesforce objectives and goals üDo forecasting and budgeting üBe in charge of salesforce selection, recruitment and training üMotivate the salesforce üSalesforce evaluation and control Lecture 1 7

Marketing Concept -Marketing is a process of creating, distributing, promoting, and pricing goods, services, ideas, people, places, and organizations in a dynamic environment with the result of satisfaction for both buyer and seller. -In the marketing process there should includes the controllable marketing factors, uncontrollable marketing factors, a product and an exchange which results in satisfaction for both parties of the exchange. -Simple exchange: you buy vegetables directly from the farmers -Complex exchange: Medicine manufacturer employs a medical representative to sell the medicine to doctors, who will finally sell the products to the patients. Lecture 1 8

Marketing Concept 4 Ps in the Marketing Mix variables: -Product, Price , Promotion , Distribution/place These are directed toward a target market, which is a group of actual or potential buyers at which the organization is aiming its products. These 4 Ps are the controllable factors in marketing because usually a marketer has direct control over the design, the price, the means and amount used in promoting, and ways that the product is distributed to reach its final consumer. Lecture 1 9

Marketing Concept Promotion/4 Ps The basic objectives of promotion are to Inform, Persuade, Remind: -Advertising: any paid form of non-personal communication about an organization, good, service, person, or idea by an identified sponsor -Personal selling: two way flow of communication between a buyer and seller for making sales/building customer relationships -Sales promotion: short term incentives to encourage purchase -Publicity: non-personal, indirectly paid presentation about an organization, good, service, person, or idea Lecture 1 10

Marketing Concept Customer satisfaction is the main objective of the marketing concept. 1)The achievement of organizational goals depends on determining the needs and wants of current and potential customers and delivering the desired satisfactions more effectively and efficiently than do competitors. 2) The idea is that a focus on only increasing sales, will not necessarily meet buyer needs, and could therefore result in decreased sales. E. g. , promising unrealistic delivery schedules to customers could increase sales temporarily but might finally chase away millions of dollars in future business from customers who no longer trust you. 3) On the other hand, a blind focus on customer satisfaction could result in decrease in profits. E. g. , increasing quality and lowering prices might result in great customer satisfaction, but could also result in such high costs that the company can no longer exist Lecture 1 11

Sales vs Marketing Sales-oriented -Company focuses on sales functions, emphases on “how to sell the products as many as possible, as early as possible” Production Sales Consumers Emphasis on seller’s needs Market-oriented -Company focuses on identifying the needs and wants of customers Customer needs Production Sales Emphasis on customer’s needs Lecture 1 12

Sales vs Marketing Production Orientation Sales-orientation Market-orientation To produce more To sell more, Sales Department is independent from other departments -Identify and satisfy customers needs/wants -Selling is a part of marketing functions -Selling and management now concerned with analysis of customers wants and through company’s marketing efforts to satisfy these wants Lecture 1 13