Chapter 1: Development And Role Of Selling In Marketing PDF

TRƯỜNG ĐẠI HỌC FPT CẦN THƠ Session 1: Chapter 1. Development and role of selling in marketing  Learning Objectives 1. Understand the implications of production, sales and marketing orientation 2. Appreciate why selling g...

TRƯỜNG ĐẠI HỌC FPT CẦN THƠ Session 1: Chapter 1. Development and role of selling in marketing  Learning Objectives 1. Understand the implications of production, sales and marketing orientation 2. Appreciate why selling generally has a negative image 3. Know where selling fits into the marketing mix 4. Identify the responsibilities of sales management 5. Recognise the role of selling as a career SangVM.S1.C1.MKT301.SANGVM  Nature and role of selling Selling is a very complex process. – Involves set of principles, techniques, substantial personal skills, and different types of selling tasks. Sales personnel are the single most important link with the customer Selling roles are diversified – Ex: sell capital equipment to industrial purchasers, export markets, sell direct to customers in their home, periodic basis, customization, personalization, etc. SangVM.S1.C1.MKT301.SANGVM  Nature and role of selling Strengths of personal selling:  Interactive: questions can be answered and objections overcome  Adaptive: presentations can be changed to meet customer needs  Complex arguments can be developed  Relationships can be built because of its personal nature  Provides the opportunity to close the sale. SangVM.S1.C1.MKT301.SANGVM  Nature and role of selling Weaknesses of personal selling: Expensive Variability Inconsistency SangVM.S1.C1.MKT301.SANGVM  Characteristics of modern selling Figure 1.1 Characteristics of modern selling SangVM.S1.C1.MKT301.SANGVM  Characteristics of modern selling Customer retention and deletion – Pareto principle: 80/20 – Small customers cost more money Database and Knowledge management – Meeting customer in advance via zoom before visitng in person – Video conference – Electronic catalogs, price list, company profile... – CRM system Customer relationship management – Focus on long-term, win-win situation Marketing the product – Participating in marketing activities Problem solving and system selling – Modern selling, B2B: Salesperson = consultant vs Traditional selling Satisfying needs and adding value – Customers do not recognize that they have a need SangVM.S1.C1.MKT301.SANGVM  Success factors for professional salespeople Top ten success factors in selling? 1. Listening skills 2. Follow-up skills 3. Ability to adapt sales style from situation to situation 4. Tenacity — sticking to the task 5. Organisational skills 6. Verbal communication skills 7. Proficiency in interacting with people at all levels within an organization 8. Demonstrated ability to overcome objections 9. Closing skills 10.Personal planning and time management skills. SangVM.S1.C1.MKT301.SANGVM  Types of selling SangVM.S1.C1.MKT301.SANGVM  B2B and B2C Marketing and Selling B2C Markets: - Customers purchase products and services for personal uses. - Different types of sub-markets: - Fast moving consumer goods (FMCG): frequently, non-durable, low-involvement product, habitual purchase. - Semi-durable consumer goods: Clothing, shoes - Durable consumer goods: cars, computers, …high-involvement products. SangVM.S1.C1.MKT301.SANGVM  B2B and B2C Marketing and Selling B2B Markets: - Buyers are much more to negotiate on price - Deal with skilled negotiators - Process of buying/selling extend over month or even years. - Sub-markets: - Markets for supplies and consumables (raw materials, semi- manufactured goods) - Markets for capital equipment (plant, machinery) - Market for business services (consultancy, technical advice) SangVM.S1.C1.MKT301.SANGVM  Selling as a career Key qualities that are generally recognised as being important: 1. Empathy and an interest in people: such a skill will help in more accurately identifying customers’ real needs and problems in terms of thinking oneself into the other person’s mind and understanding why the customer feels as they do. 2. Ability to communicate: this means an ability to get a message across to a customer and, more importantly, an ability to listen and understand. 3. Determination: although the salesperson must be able to take no for an answer, this should not come easily to someone who wants to succeed in selling 4. Self-discipline and resilience: most salespeople spend much of their time unsupervised and, apart from seeing customers, they are alone. SangVM.S1.C1.MKT301.SANGVM  Image of Selling Misconception about selling: Selling is not a worthwhile career Good products will sell themselves and thus the selling process adds unnecessarily to costs There is something immoral about selling, and one should be suspicious about those who earn their living from this activity Demotivational elements in the sales task: Constantly exposed to the possibility of rejection Working in “foreign territory” – B2B selling situation Lonely existence SangVM.S1.C1.MKT301.SANGVM  Image of Selling Facts about Selling: Selling provides a mechanism for exchange Selling is a worthwhile career Good products do not sell themselves SangVM.S1.C1.MKT301.SANGVM  Skills succeed in selling Listen without an agenda, Sincer it’s not about your needs ity Serve others by Don’t try to talk asking questions Skills to someone into that will assist them succee something, listen d in to what they in making a wise selling buying decision Aski SEA Ethi want ng cs SangVM.S1.C1.MKT301.SANGVM  The nature and role of sales management Table 1.3 the characteristics of effective sales managers SangVM.S1.C1.MKT301.SANGVM  Sale Manager duties Sale Managers duties and responsibilities: determining sales force objectives and goals; forecasting and budgeting; sales force organisation, sales force size, territory design and planning; sales force selection, recruitment and training; motivating the sales force; sales force evaluation and control SangVM.S1.C1.MKT301.SANGVM  The marketing concept The four main business philosophies are: 1. Selling orientation: consumers will not buy enough of the organisation’s products unless the organization undertakes a large-scale selling and promotion effort. (1920s – 1960s) 2. Production orientation: Consumers will favour products that are available and highly affordable, and that management should therefore focus on improving production and distribution efficiency. (1913 initiated by Henry Ford with the mass production of Ford car) 3. Product orientation: Consumers will favour products that offer the most quality, performance and features, and that the organisation should therefore devote its energy to making continuous product improvements’. 4. Marketing orientation: which holds that achieving organisational goals depends on determining the needs and wants of target markets SangVM.S1.C1.MKT301.SANGVM  The marketing concept SangVM.S1.C1.MKT301.SANGVM  The marketing mix The marketing mix and proposed extensions of the 4Ps Source: Gummesson, 1994:8 SangVM.S1.C1.MKT301.SANGVM  The product life-cycle SangVM.S1.C1.MKT301.SANGVM  Product adoption and diffusion SangVM.S1.C1.MKT301.SANGVM  Relationship between sales and marketing Company organisation chart, sales orientated company: SangVM.S1.C1.MKT301.SANGVM  Relationship between sales and marketing Company organisation chart, marketing orientated company: SangVM.S1.C1.MKT301.SANGVM  Relationship between sales and marketing Figure 1.10 Marketing strategy and management of personal selling (P.39) SangVM.S1.C1.MKT301.SANGVM  Relationship between sales and marketing Table 1.4 Marketing strategy and sales management SangVM.S1.C1.MKT301.SANGVM  Relationship between sales and marketing Figure 1.11 Sales buy-in of marketing strategies: SangVM.S1.C1.MKT301.SANGVM  TRƯỜNG ĐẠI HỌC FPT CẦN THƠ All best for You! 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