chapter 1: sdm

7/27/2019 Chapter 1: SDM

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Success Factors for Professional

Salespeople

The top ten success factors in selling: Listening skills

Follow-up skills

Ability to adapt sales style from situation to situation

Tenacitysticking 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

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 ordertakers. They are

Inside order- takersthe sales persons task ispurely transactionalreceiving payments andpassing over the goods, telemarketing

Delivery salespersonthe sales persons task isprimarily concerned with delivering the productexample milk, newspaper

Outside order takers visit customers , but their

primary function is to respond to customerrequests rather than actively persuade (replcetelemarketing)


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Ordercreators are called Missionary sales

people, their selling task is to educate and build

good will. Examples Medical representativescall 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 peoplewhose task is to get

new customers

Organizational salespeople whose main job is to

maintain close and long-term relationship with

organizational customers. The selling jobinvolve 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 front-

line sales people

Merchandisers provide sales support in retail and

wholesale selling situations example, give

advice on display, check stock levels andmaintain 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 managerswill have to undertake the following specific

duties and responsibilities


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Determination of sales force objectives andgoals

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

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 wascharacterized by focusing company efforts on

producing goods or services. More specifically,management efforts were aimed at achievinghigh production efficiency, often through thelarge scale production of standardized items.

Sales orientation: The sales oriented company isone where the focus of the company effortswitches to the sales function. The main issuehere 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 andwants of customers and providing products and

services to satisfy them.

Market segmentation and targeting are the twoof 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 classifyingproducts , depending upon the basis chosen for

classification.


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The product life cycle is somewhat similar to the lifecycle of humans and has four distinct stages. The stagesare

Introduction

Growth

Maturity

Decline Implications of the product life cycle

The first obvious implication of the concept is that eventhe most successful products have a finite life.

A second implication of the life-cycle concept is thatdifferent marketing and sales strategies may beappropriate 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 lifecycle.

It describes innovative behavior and holds that

the characteristics of a new product can affect itsrate of adoption

Consumers are placed into one of five adoptercategories, each with different behavioral

characteristics. They are Innovators, Early adopters, Early majority, Late

majority and Laggards


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Pricing

As with the element of the mix,pricing decisionsencompass a variety of decision areas

A vital element in marketing is the buying powerof customers

In determination of price levels, a number offactors must be considered. The main factorsinclude the following:

Company objectives, Marketing objectives,Demand considerations, Cost considerations,Competitor considerations


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Distribution

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 thecommunications program.


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The relationship between Sales and

Marketing

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 marketingfunction

Target market choice

Differential advantage

chapter 1: sdm

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