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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