Sales Settings

8/18/2019 Sales Settings

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Chapter No. 10

Sales Settings


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A. Behavioral forces

B. Technological forces

C. Managerial forces

Forces impacting sales


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Rising expectations of consumer and organizations

Customer avoidance of buyer-seller negotiations

xpanding po!er of ma"or buyers

#lobalization of mar$ets

%ragmentation of mar$ets

A. Behavioral Forces


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&alesforce automation

'irtual sales offices

lectronic sales channels

B. Technological forces

(irect mar$eting techni)ues

Blending of sales and mar$eting

mphasis on sales force )ualifications

C. Managerial forces


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A sales channel is the route that goods take through the

selling process from supplier to customer. This could be

direct or indirect.

Sales Channels


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The mar$et

Channel costs

The product

*rofit potential

Channel structure

*roduct life-cycle stage

+on-mar$eting factors

Selecting/reappraising sales channels


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(irect

&elective

,ntensive

xclusive

Types of sales channels


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These categories are grouped together as the sales approach is

similar and a number of characteristics in these markets

distinguish them from consumer markets.

Industrial /Commercial /Government selling

%e!er customers

Concentrated mar$et

Complex purchasing decisions

ong-term relationships

Reciprocal trading

Types of production "ob/ batch/ mass/ process0


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1. Multiples

2. Variety chains

3. Co-operative societies

4. Department stores

5. Independents6. Mail order

7. Direct selling

Selling for resale

This includes selling to retailers or wholesalers. There are seven

different types of selling outlets;


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Role of Trade Marketers

The $inds of products they !ant

,n !hich sizes

1ith !hich pac$aging

At !hat prices

1ith !hat $ind of promotion


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The franchisor initiates the franchise and provides the link to the

ultimate franchisee in specific stages of the

manufacturing/distribution process. Its different forms are:

Franchising

%rom manufacturers to retailers

%rom manufacturers to !holesalers

%rom !holesalers to retailers

&ervice firm sponsored franchises to retailers


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%ranchisor offers expert advice

%ranchisor promotes the image

+ormally have a central purchasing system

,t2s a binding contract to both sides

%ranchisor provides initial start-up and continuous training

%ranchisee pay a royalty or franchise fee

Franchising arrangements have a common set of procedures;

Franchising


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Selling services

,ntangibility

(ifficulty of separating production from consumption

&ervices are not as standard as products

,mpossible to stoc$ services

7 P’s of Service Marketing

People

Process

Physical evidence

&pecial characteristics of services include3


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Special characteristics of services


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Sales promotions include techniques that organizations can use as

part of their marketing efforts to accelerate its sales.

Sales Promotions

ncourage repeat buying

Customer loyalty

ncourage to visit a particular outlet

Reduce stoc$ level

,ncrease distribution

Objectives


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Sales Promotion includes

*rice reductions Coupons

#ifts

Competitions

otteries

Cash bonuses

Sales Promotion Techniques

Consumer promotions

Trade promotions

&alesforce promotions


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These are often referred to as pull techniques:

Consumer promotions

A 4age off is offered

An additional )uantity is offered

*rice-off coupons

,ntroductory discount


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Consumer promotions

Joint Promotions

Bet!een retailers 5 *roducers

Bet!een t!o or more producers

Bet!een service organization 5 producer

Premium offers

&elf-li)uidating premiums

6n-pac$ gifts

Continuities

Coupon plans

%ree samples


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Trade promotions

To achieve !idespread distribution of a ne! brand

to move excess stoc$s onto retailers2 shelves

To achieve re)uired display levels of a product

To encourage greater overall stoc$holding

To encourage salespeople at distributor levels

To encourage support for overall promotional strategy

The aim is usually to push products through the channel.


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Personnel motivation

,ntroduction of a ne! product line

Movement of slo!-selling items

6btain !ider territory coverage

(evelop ne! prospects

6vercome seasonal sales slumps

6btain display

(evelop ne! sales s$ills

These are promotions to the Salesforce, but some apply to distributors andretailers.


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Exhibitions

A !ide range of products

A large number of competitors

A good amount of information

A large number of ne! products

+earness to the buyer2s home base

#ood exhibition hall facilities

Purpose of exhibitions are to build up goodwill and prepare the wayfor future sales. Characteristics of a good exhibition includes:


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Methods used to attract visitors

Attraction can include

(irect mail Telephoning

A personal sales call before the event

An advertisement in the trade press

A buffet

#ive-!ays

Advertising material

%ilms and seminars

Attention gaining exhibits


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*roducts on sho! !ill depend upon the target mar$et

iterature should not be on a self-service display

#raphics should display the product literature

7ave a space for negotiation or intervie!

Refreshment facilities on the stand are good attractors

&hould have a designated storage area

An expensive/ stand can be a double-edged !eapon.

Exhibition stand elements


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6b"ectives of the exhibition

%eatures of the stand

7o! to approach stand visitors and deal them

Tips on physical appearance

The front-line briefing

Documents

Sales Settings