Chapter 4 (Sales Setting)

Slide 4.
Previous Lecture
Jobber and Lancaster, Selling and Sales Management, 7th Edition Pearson Education Limited 2006
Slide 4.2
Selling Vs Sales Management

Stages of Selling
Roles of a seller
Skills required in selling
Selling; success factors
Selling functions
Tasks/functions of Sales Managers
Market, Marketing, Sales orientation
Assignment due on Tuesday.28 Oct-2014
Sales Person, Responsibilities and Preparation
We
ek
Area to Cover Contents
Introduction to course outline and semester plan, Importance of
1 Intro sales and dynamics of sales management
Make the commitment, the six stages of selling (Victor Antonio)
Development and the role of selling in marketing (Characteristics
Of Modern Selling, Types of Selling, Role of Sales management,
2 Sales Setting Success Factors, Relationship Between selling and marketing)
Selling and Sales management By David Jobber 7 th Ed
Sales Strategy (IMC, Sales channels, distribution networks,
management of value chain networks and alternate sales
3
modalities, Territory Management)
Sales management by Richard Still, 5th Ed
Sales strategy (An overview of marketing plan, components of
marketing plan, overview of imc, IMC and its use for
4 Sales Strategy enhancement of sales volume)
Sales strategy (Adjustments in promotional mix with reference to
advertisement and personal selling, sales promotion strategies,
5
brand activation campaign and alternate sales modalities
Response Block selling (Selling the room, being consistent, R.I.P.
overcoming objections, Response block structure, Objections and
6
response)
Tactical level (Victor Antonio)
Response Block selling (Objections and response)
Slide 4.4
Sales Settings
Slide 4.5
Environment.
Slide 4.6
Environment
Micro..
Macro
Slide 4.7
7
Slide 4.8
Model of the Environment for Sales
Management
Technol
ogical
develo
pments
Econo
mic Sales
conditio Management,
ns and concepts,
forces practices,
Sales
Manage and cases by
ment Eugene M.
Process Johnson,
Social David L.
Compe
and
titive Kurtz and
Cultural
actions
factors Eberhard E.
Political Scheuing 2nd
and
legal Edition, Page
decisio 143
n
Slide 4.9
Examples for each ..??
How do they impact sales
Economic
Social
Technological
Environmental
Political
Slide 4.10
The Marketing Environment: Macro PESTLE
10
Slide 4.11
Macroenvironment
Economic Stage of development (GDP), Affect consumer and
growth, stability, inflation, organisational
currency fluctuations, income spending ability and
distribution, savings, debt etc patterns
Affect business
capability
Political/Leg Inter-state politics (EU), Affect consumer
al stability, internal and external attitudes and
conflict, corruption, military knowledge
role in politics, religious Affect business
tensions, government activities
agencies, legislation, taxation
etc
Social/Cultur Societys basic values, Affect consumer
al perceptions, preferences and values and what they
behaviours will buy
Jobber and Lancaster, Selling and Sales Management, 7th Affect
Edition Pearson business
Education Limited 2006
11
practices and
Slide 4.12
Macroenvironment
Demographi Population changes - age, Affect demand for
c gender balance, race, products and services
location, education,
occupation etc
Natural Cost and availability of raw Affect consumer
materials, increased attitudes
pollution, conservation and Create opportunities
sustainable development etc and problems for
business
Technologica Pace of technological Affect consumer
l change, creation of new behaviour and
technologies etc lifestyles
Affect product life
cycles
Create opportunities
and problems for
Jobber and Lancaster, Selling and Sales Management, 7th business
Edition Pearson Education Limited 2006
12
Slide 4.13
Environmental and Managerial Forces

Impacting Sales
Slide 4.14
Environmental Forces
Slide 4.15
Environmental Forces
Behavioral Forces ?
Technological Forces ?
Slide 4.16
Behavioral Forces
Rising customer expectations and being
concerned with fulfilling more than basic needs
More professionally minded organizational buyers
Customer avoidance of buyer-seller negotiations
Expanding power of major buyers
Globalisation of markets
Fragmentation of markets
Slide 4.17
Technological Forces
Sales force automation
Laptop computers and more sophisticated
software
Electronic data interchange
Desktop videoconferencing
Extranet
Internet
Television home shopping
Slide 4.18
Technological Forces
Virtual sales offices
Widespread adoption of credit cards as
charging platforms and use of such facilities
as opportunities for creation of databases
Electronic sales channels
Slide 4.19
Managerial Forces
Direct marketing
Direct mail
Telemarketing
Blending of sales and marketing
Intranet
Qualification for sales people and sales
managers
Slide 4.20
The Promotion Mix

And what does it include
Slide 4.21
The Promotion Mix

The promotion mix is the specific blend of
advertising, public relations, personal selling,
and direct-marketing tools that the company
uses to persuasively communicate customer
value and build customer relationships
The Promotion Mix
Major Promotion Tools
Copyright 2010 Pearson Education, Inc.

Chapter 14 - slide 22
Publishing as Prentice Hall
Which are exclusively selling activities
Copyright 2010 Pearson Education, Inc.

Chapter 14 - slide 23
Publishing as Prentice Hall
Slide 4.24
The Promotion Mix
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods, or
services by an identified sponsor
Broadcast
Print
Internet
Outdoor
Slide 4.25
The Promotion Mix

Public relations involves building good relations
with the companys various publics by obtaining
favorable publicity, building up a good corporate
image, and handling or heading off unfavorable
rumors, stories, and events
Press releases
Sponsorships
Special events
Web pages
Slide 4.26
The Promotion Mix
Personal selling is the personal presentation
by the firms sales force for the purpose of
making sales and building customer
relationships
Sales presentations
Trade shows
Incentive programs
Slide 4.27
The Promotion Mix
Direct marketing involves making direct

connections with carefully targeted individual
consumers to both obtain an immediate
response and cultivate lasting customer
relationshipsthrough the use of direct mail,
telephone, direct-response television, e-
mail, and the Internet to communicate
directly with specific consumers
Catalog
Telemarketing
Kiosks
Slide 4.28
Sales Promotion
WHAT ?
Slide 4.29
The Promotion Mix
Sales promotion is the short-term incentives to
encourage the purchase or sale of a product or
service
Discounts
Coupons
Displays
Demonstrations
Slide 4.30
Sales Promotion
WHY ?
Slide 4.31
Sales Promotion
Encouragement of repeat purchases
Building of long-term customer loyalty
Encouragement of consumers to visit a
particular sales outlet
Building up of retail stock levels
Widening or increasing the distribution of a
product or brand
Slide 4.32
Sales techniques
Consumer promotions
Trade promotions
Salesforce promotions (personnel motivation)
Slide 4.33
Consumer promotions
Pull techniques
Price reduction
Price promotion
50% off
Buy one get one free
10% extra
Introductory discount price
Free samples
Coupons
On-pack gift
Slide 4.34
Trade promotion
Push strategies
Achieve widespread distribution
To move excess stocks onto retailers shelves
To achieve required display levels of a product
To encourage greater overall stockholding of a
product
To encourage support for overall promotional
strateggy
Slide 4.35
Personnel motivation
Sales incentives scheme
Sales compensation
Rewards
Slide 4.36
Figure 4.1 A model of the exhibition communication process

Slide 4.37
Sales Channels
Communication
Vs
Distribution
Slide 4.38
Distribution Channels
Slide 4.39
Distribution Channels
1. Logistics or physical distribution
management (PDM) (Strategic)
2. Channels of distribution (Tactics)
Slide 4.40
Logistics or physical distribution
management (PDM)
The effective and economic planning,

implementing and controlling the physical flow
of materials in their unprocessed state through
to finished goods from the point of origin to
delivery to the end consumer.
Slide 4.41
Logistics mix
?
Slide 4.42
Logistics mix
Order processing
Materials handling
Warehousing
Inventory control
Transportation
Packaging
Slide 4.43
Channels of distribution
?
Slide 4.44
Channels of distribution
Slide 4.45 MARKETING CHANNELS
A marketing channel consists of individuals and

firms involved in the process of making an
offering available for consumption or use by
consumers and industrial users.
Channels link the producer and its buyers:
Marketing Channel
Producer Consumers
Intermediaries
MARKETING
Slide 4.46 CHANNELS
Go-to-Market Strategy
Marketers use this term to describe

how organizations select and employ marketing channels
to cost-effectively deliver a value proposition to each of
its target markets.
CHAPTER 7: MARKETING CHANNEL STRATEGY AND
Slide 4.47
MANAGEMENT
THE CHANNEL-
SELECTION DECISION.
How?
THE CHANNEL-SELECTION DECISION
Slide 4.48
Marketers must make these marketing channel

decisions regarding intermediaries:
Type Location Density Functions
Conduct a market analysis to identify the

target markets served and their buying
requirements that will be served by
prospective marketing channels
Slide 4.49
Marketing Channel Design
The number of levels in a marketing channel is

determined by the number of intermediaries
between the producer and ultimate buyers or
users
As the number of intermediaries between the

producer and the ultimate buyer increases, the
channel increases in length
EXHIBIT
Slide 4.50
7.1: TRADITIONAL MARKETING
CHANNEL DESIGNS
Producer
Brokers or Agents
Distributors or Wholesalers
Retailers or Dealers
Ultimate Buyers
Slide 4.51
Direct vs. Indirect Distribution
Marketers must decide whether to use:

Intermediaries to reach target markets
Contact buyers directly via either channel strategy:
Producer Producer
Own
Own Own Distribution
Marketing
Sales Force Outlets
Website
Ultimate
Jobber and Lancaster, Buyers
Selling and Ultimate
Sales Management, 7th Edition Pearson Education Buyers
Limited 2006
Slide 4.52
Marketers employ direct distribution when:

Buyers of target markets are easily identifiable
Personal selling is a major component of the organizations

communication program
The organization has a wide variety of offerings

for the target market
Resources are available to satisfy target market

requirements
Jobber normally
and Lancaster, Selling and handled
Sales Management, by Pearson
7 Edition
th intermediaries
Slide 4.53
Intermediaries are not available for reaching target markets
Intermediaries do not possess the capacity to service the

requirements of target markets
Offerings possess certain characteristics:
Technically
Nonstandardized High Unit Value
Sophisticated
Slide 4.54

The organizations marketing strategy dictates:
An aura of exclusivity
An emphasis on buying direct
The organization seeks to differentiate its offering

from others distributed through intermediaries
Slide 4.55
The decision to employ direct distribution

to ultimate buyers requires the absorption
of all functions performed and costs incurred by
the intermediaries bypassed
Similarly, intermediaries who wish to acquire

functions typically performed by channel
members above or below them must also
absorb their costs
Jobber and Lancaster, Selling and Sales Management, 7 Edition Pearson Education Limited 2006
th
Slide 4.56
Are their any other form of marketing

channels
Slide 4.57
Electronic Marketing Channels
Employ some form of electronic

communication, including the Internet, to make
offerings available for consumption or use by
consumers and industrial users
Many services can be distributed through

electronic marketing channels, while others still
involve traditional intermediaries
EXHIBIT
Slide 4.58
7.2: REPRESENTATIVE
ELECTRONIC MARKETING CHANNELS
Amazon.com Autobytel.com Travelocity.com Dell
Book Auto Commercial Computer

Publisher Manufacturer Airline Manufacturer
Book Auto
Distributor Dealer
Amazon.com Auto-By-Tel Travelocity

(Virtual Retailer) (Virtual Broker) (Virtual Agent)
Ultimate Buyers
Slide 4.59
Marketers ask three questions when selecting the

type and location of retail outlets:
Target Market Which retailers will provide the best

Coverage coverage of the target market?
Buyer Which retailers will best satisfy the target

Requirement markets buying requirements?
Satisfaction
Which retailers will be the most

Profitability
profitable?
th
Slide 4.60
Buyer Requirement Satisfaction
Marketers must select channels that

satisfy the interests buyers want fulfilled when
purchasing a firms offerings
These interests fall into four categories:
Information Variety
Convenience Attendant
Jobber and Lancaster, Selling and Sales Management, 7th Services
Edition Pearson Education Limited 2006
Slide 4.61
Profitability
Profitability is determined by the:

Margins earned (revenues costs) for each channel
member
Channel as a whole
Extent to which channel members share costs
Costs include distribution, advertising, and

selling expenses associated with different types
ofandmarketing
Jobber channels
Lancaster, Selling and Sales Management, 7 Edition Pearson Education Limited 2006
th
CHAPTER 7: MARKETING CHANNEL STRATEGY AND
Slide 4.62
MANAGEMENT
DUAL DISTRIBUTION
AND MULTI-CHANNEL
MARKETING
DUAL
Slide 4.63 DISTRIBUTION
Dual distribution occurs when

an organization distributes its
offering through two or more
different marketing channels
that may or may not compete
for similar buyers.
DUAL
A firm uses dual distribution because it:
Produces its own brand (for resellers) as well as

a private store brand (for a specific retailer)
May distribute directly to a large-volume retailer
and use wholesalers for small-volume retailers
Considers geography:
Uses it own sale force in concentrated markets
Uses intermediaries elsewhere
JobberEmploys a multibrand
and Lancaster, Selling strategy
and Sales Management, 7 Edition Pearson Education Limited 2006
th
DUAL
The viability of dual distribution is situational and

depends on the relative strengths of manufacturers and
retailers
If a manufacturer decides to distribute directly to
ultimate buyers in a retailers territory:
The retailer may drop the firms offering lines or
May not drop them if they too important to it or

May not drop them if competitive offerings have a strong
presence in the market
If a retailer accounts for a significant sales volume,
dropping the lines will negatively affect the firm
th
MULTI-CHANNEL
Slide 4.66 MARKETING
Multi-channel marketing involves

the blending of an electronic
marketing channel and a traditional
channel in ways that are mutually
reinforcing in attracting, retaining,
and building customer
relationships.
MULTI-CHANNEL
A firm uses multi-channel marketing because:
The addition of an electronic marketing channel

can provide incremental revenue
An electronic marketing channel can leverage
the presence of a traditional channel
It can satisfy buyer requirements

MULTI-CHANNEL
Multi-channel marketing is viable if an electronic

marketing channel:
Generates incremental revenue
Doesnt cannibalize sales from traditional intermediaries
Reaches a different market segment than the traditional

channel
Reinforces with traditional channels in attracting,
retaining,
Jobber and
and Lancaster, Selling andbuilding customer
Sales Management, relationships
7 Edition Pearson
th
MULTI-CHANNEL
Disintermediation is the practice

whereby a traditional intermediary
member is dropped from a
marketing channel and replaced by
an electronic storefront.
MULTI-CHANNEL
Disintermediation
Is considered more serious than cannibalization

by intermediaries
it affects reseller survival
May cause firms to avoid multi-channel

marketing due to complaints and threats
by intermediaries, particularly retailers,
to discontinue carrying their products
and delivering their services
th
SATISFYING
Slide 4.71 TRADE RELATIONS
Channel Conflict
Marketing managers recognize that conflicts

often occur in trade relations
Channel conflict arises when one channel
member (such as a manufacturer or an
intermediary) believes another channel member
is engaged in behavior that is preventing it from
achieving its goals
SATISFYING
Slide 4.72 TRADE RELATIONS
Channel Conflict
Occurs when:
A channel member bypasses another member and sells or buys

direct
There is a dispute over how profit margins are distributed among

channel members
Manufacturers believe wholesalers or retailers are not giving their

offerings adequate attention
A manufacturer engages in dual distributionparticularly when

different retailers or dealers carry the same brands
Slide 4.73
Selling Products Vs Services

Products Characteristic Services
s
Low Intangibility High
Low Inseparability High
Low Variability High
(non-standard)
Low Perishability High
Slide 4.74
Promotional mix Products Vs Services
Products Services
1. Product 1. Product
2. Placement 2. Placement
3. Promotion 3. Promotion
4. Pricing 4. Pricing
5. ?
6. ?
7. ?
Slide 4.75
Promotional mix Products Vs Services
Products Services
1. Product 1. Product
2. Placement 2. Placement
3. Promotion 3. Promotion
4. Pricing 4. Pricing
5. People
6. Process
7. Physical
evidence

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Slide 4.

Selling Vs Sales Management

The Marketing Environment: Macro PESTLE

Environmental and Managerial Forces

The Promotion Mix

The Promotion Mix

Major Promotion Tools

Copyright 2010 Pearson Education, Inc.

Copyright 2010 Pearson Education, Inc.

The Promotion Mix

Direct marketing involves making direct

Figure 4.1 A model of the exhibition communication process

The effective and economic planning,

A marketing channel consists of individuals and

Channels link the producer and its buyers:

Marketers use this term to describe

Marketers must make these marketing channel

Type Location Density Functions

Conduct a market analysis to identify the

Marketing Channel Design

The number of levels in a marketing channel is

As the number of intermediaries between the

Direct vs. Indirect Distribution

Marketers must decide whether to use:

Direct vs. Indirect Distribution

Marketers employ direct distribution when:

Personal selling is a major component of the organizations

The organization has a wide variety of offerings

Resources are available to satisfy target market

Direct vs. Indirect Distribution

Marketers employ direct distribution when:

Intermediaries are not available for reaching target markets

Intermediaries do not possess the capacity to service the

Offerings possess certain characteristics:

Direct vs. Indirect Distribution

Marketers employ direct distribution when:

An emphasis on buying direct

The organization seeks to differentiate its offering

Direct vs. Indirect Distribution

The decision to employ direct distribution

Similarly, intermediaries who wish to acquire

Are their any other form of marketing

Electronic Marketing Channels

Employ some form of electronic

Many services can be distributed through

Amazon.com Autobytel.com Travelocity.com Dell

Book Auto Commercial Computer

Amazon.com Auto-By-Tel Travelocity

Marketers ask three questions when selecting the

Target Market Which retailers will provide the best

Buyer Which retailers will best satisfy the target

Which retailers will be the most

Buyer Requirement Satisfaction

Marketers must select channels that

Profitability is determined by the:

Costs include distribution, advertising, and

Dual distribution occurs when

A firm uses dual distribution because it:

Produces its own brand (for resellers) as well as

The viability of dual distribution is situational and

May not drop them if they too important to it or

Multi-channel marketing involves

Electronic Marketing Channels