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Chapter 1

Development and role of selling in marketing

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Objectives
After studying this chapter, you should be able to: 1. Understand the implications of production, sales and marketing orientations. 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.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Characteristics of modern selling

1. 2. 3. 4. 5. 6. Customer retention and deletion Database and knowledge management Customer relationship management Marketing the product Problem solving and system selling Satisfying needs and adding value.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Figure 1.1

Characteristics of modern selling

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

Source: Adapted from Moncrief, W.C. and Marshall, G.W. (2005) The evolution of the seven steps of selling, Industrial Marketing Management, 34, pp. 1322

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Business to consumer markets (B2C)

Different types of consumer markets include:
1. Fast moving consumer goods (FMCG) 2. Semi-durable consumer goods 3. Durable consumer goods

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Top ten success factors in selling

1. 2. 3. 4. 5. 6. 7. Listening skills Follow-up sills Ability to adapt sales style from situation to situation Tenacity-sticking to a task Organizational skills Verbal communication skills Proficiency in interacting with people at all levels within an organization 8. Demonstrated ability to overcome objections 9. Closing skills 10.Personal planning & time management skills
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Figure 1.2

Types of selling
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Business to business (B2B)

Business to business (B2B) markets are characterised by often large and powerful buyers, purchasing predominantly for the furtherance of organisational objectives and in an organisational context using skilled/professional buyers.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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The duties and responsibilities of a sales manager

determining salesforce objectives and goals; forecasting and budgeting; salesforce organisation, salesforce size, territory design and planning; salesforce selection, recruitment and training; motivating the salesforce; salesforce evaluation and control.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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The marketing concept

Production Orientation-Achieving production efficiencies through large scale production & standardize products Sales Orientation-The main issue here is not how to produce but, having products, how to ensure that the production is sold Marketing Orientation-Identifying the needs & wants of the customers & providing products & services to satisfy them

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Marketing segmentation and targeting

Benefits include the following:
a clearer identification of market opportunities and particularly the analysis of gaps in a market; the design of product and market appeals that are more finely tuned to the needs of the market; focusing of marketing and sales efforts on those segments with the greatest potential.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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The marketing mix

1. Price: price levels, credit terms, price changes and discounts. 2. Product: features, packaging, quality and range. 3. Promotion: advertising, publicity, sales promotion, personal selling and sponsorship. 4. Place: inventory, channels of distribution and number of intermediaries.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Figure 1.4

The product life-cycle curve

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Factors at which innovation is taken up

Relative advantage over other products or services Compatible with potential needs of customers Complexity in terms of how it can be used Divisibility in terms of how it can be tried Communicability is the degree to which innovation can be described or demonstrated prior to purchase

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Inputs to pricing decisions

Company objectives-target rate of return on capital employed Marketing Objectives-Market Skimming vs. Market Penetration Demand Consideration-More demand higher the prices & vice versa Cost Consideration-Break even analysis Competitor considerations

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Distribution
The selection of distribution channel-Exclusive, Selective or Intensive Determining the level of customer serviceReduced delivery times Terms and conditions of distribution-Minimum order quantities, credit, payment & discount terms

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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Promotion-Integrated Marketing Communications

Advertising Personal selling Public relations Direct marketing Sales promotion

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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IMC Builds Brands

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009

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David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition Pearson Education Limited 2009