Copyright © 2007 McGraw-Hill Ryerson Limited

Objectives To understand: The nature and advantages of the sales function in an organization. The variety and nature of sales positions. The new focus and changing patterns in professional selling.

Copyright © 2007 McGraw-Hill Ryerson Limited Objectives To understand: The sales process. Key issues in operating and evaluating sales force performance. The scope and management of sales promotions. The role of public relations and publicity in the marketing communications program.

Copyright © 2007 McGraw-Hill Ryerson Limited Nature of the Sales Function Sales – process of selling products and services to customers. Sales function – responsible for sales. Selling – the communication of information to persuade a prospective customer to buy a product, service, or idea. The creation of solutions “The major communication method used to satisfy customers, and hence achieve profitable sales.”

Copyright © 2007 McGraw-Hill Ryerson Limited Nature of the Sales Function The sales function is more likely to dominate when: The market is concentrated geographically. Product value is not readily apparent. The product has high unit value, is technical, or requires much explanation. The product is tailored to a customer. The sale involves a trade-in. The product is at the introductory stage of its life cycle. The firm does not have enough money for advertising.

Copyright © 2007 McGraw-Hill Ryerson Limited Scope of the Sales Function Two kinds of sales roles: 1.Inside selling Predominantly retail and call centres Proactive selling Reactive selling 2.Outside selling Salesperson goes to customer

Copyright © 2007 McGraw-Hill Ryerson Limited Scope of the Sales Function Also Telemarketing: Relies on proactive selling Usually relies on outbound calls from a company to prospective customers

Copyright © 2007 McGraw-Hill Ryerson Limited Scope of the Sales Function

Copyright © 2007 McGraw-Hill Ryerson Limited The New Focus of Selling “Selling” may be a misleading term – often there is no selling involved. Sales personnel are providing service and building relationships. Salespeople influence the image of the firm as a result of their interpersonal contact with the customer. Salespeople also provide a valuable service role. Ideally, they become a customer’s trusted partner.

Copyright © 2007 McGraw-Hill Ryerson Limited The Nature of Sales Jobs Professional salespeople – Managers of a territory, with complete responsibility for relations with their customers. Other sales jobs: Driver salesperson Inside ordertaker Outside ordertaker Missionary salesperson Sales engineer Consultative salesperson

Copyright © 2007 McGraw-Hill Ryerson Limited Changing Patterns in Sales The nature of the sales job is changing, reflecting changing market situations: Team selling Systems selling Global sales teams Relationship selling Telephone and Internet selling Sales force automation

Copyright © 2007 McGraw-Hill Ryerson Limited The Sales Process

Copyright © 2007 McGraw-Hill Ryerson Limited Managing a Sales Force Staffing is a critical sales-force decision  Must ensure that staff are qualified. Firm needs a system to generate applicants. Recruitment often involves extensive screening. Extensive sales force training is often needed. The sales force must be supervised and managed. Their performance has to be evaluated. Compensation systems must be put in place

Copyright © 2007 McGraw-Hill Ryerson Limited Staffing and Operating a Sales Force

Copyright © 2007 McGraw-Hill Ryerson Limited Compensating the Sales Force Straight salary Straight commission Combination plan Reward for excellent customer satisfaction, service, and relationships.

Copyright © 2007 McGraw-Hill Ryerson Limited Evaluating Sales Performance A system must exist to evaluate performance. Serves as the basis for training programs and for determining appropriate rewards. Quantitative bases for performance review: Sales generated, number of orders, closing rate, number of calls made Qualitative bases for performance review: Product knowledge, preparedness for calls, success in establishing relationships, appearance, and attitude

Copyright © 2007 McGraw-Hill Ryerson Limited Sales Promotion Sales promotions stimulate short-term sales through non-advertising means: Coupons, contests, samples, displays, premiums, trade shows May be directed at end consumers (consumer promotions) or at intermediaries (trade promotions) or a firm’s sales force. Sales promotions are short-term in orientation and tactical in achieving certain objectives. It may be easier to evaluate the effectiveness of sales promotions than advertising.

Copyright © 2007 McGraw-Hill Ryerson Limited Sales Promotion Growing in popularity: Short-term results Competitive pressure Buyers’ expectations Low levels of retail selling Door openers

Copyright © 2007 McGraw-Hill Ryerson Limited Management of Sales Promotion Effective sales promotion requires a plan that is integrated with the companies marketing communications plan. Objectives Strategies Budget Tactics Evaluation

Copyright © 2007 McGraw-Hill Ryerson Limited Sales Promotion Objectives 1.Stimulate demand 2.Improve salespeople and intermediary performance 3.Encourage intermediary and salespeople support

Copyright © 2007 McGraw-Hill Ryerson Limited Sales Promotion Techniques

Copyright © 2007 McGraw-Hill Ryerson Limited Sales Promotion Techniques Factors that influence: Target Communications objective Nature of the product Cost of the technique Current economic conditions

Copyright © 2007 McGraw-Hill Ryerson Limited Public Relations Intended to develop and maintain a positive public image for an organization, its products, and its policies. The objective is to maintain good relations with a number of “publics.” This may be achieved by generating positive publicity.

Copyright © 2007 McGraw-Hill Ryerson Limited Publicity Any communication about an organization, its products, or policies, through the media that is not paid for by the organization.