ChapterNo.

10

SalesSettings

Forcesimpactingsales
A.

Behavioral forces

B.

Technological forces

C.

Managerial forces

A.BehavioralForces
Rising expectations of consumer and organizations
Customer avoidance of buyer-seller negotiations
Expanding power of major buyers
Globalization of markets
Fragmentation of markets

B.Technologicalforces
Salesforce automation
Virtual sales offices
Electronic sales channels
C.Managerialforces
Direct marketing techniques
Blending of sales and marketing
Emphasis on sales force qualifications

SalesChannels

Asaleschannelistheroutethatgoodstakethroughthe
sellingprocessfromsuppliertocustomer.Thiscouldbe
directorindirect.

Selecting/reappraisingsaleschannels
The market
Channel costs
The product
Profit potential
Channel structure
Product life-cycle stage
Non-marketing factors

Typesofsaleschannels
Direct
Selective
Intensive
Exclusive

Industrial/Commercial/Governmentselling
Thesecategoriesaregroupedtogetherasthesalesapproachis
similarandanumberofcharacteristicsinthesemarkets
distinguishthemfromconsumermarkets.

Fewer customers

Concentrated market

Complex purchasing decisions

Long-term relationships

Reciprocal trading

Types of production (job, batch, mass, process)

Sellingforresale
This includes selling to retailers or wholesalers. There are seven
differenttypesofsellingoutlets;
1. Multiples
2. Varietychains
3. Cooperativesocieties
4. Departmentstores
5. Independents
6. Mailorder
7. Directselling

RoleofTradeMarketers
The kinds of products they want
In which sizes
With which packaging
At what prices
With what kind of promotion

Franchising
Thefranchisorinitiatesthefranchiseandprovidesthelinktothe
ultimatefranchiseeinspecificstagesofthe
manufacturing/distributionprocess.Itsdifferentformsare:

From manufacturers to retailers

From manufacturers to wholesalers

From wholesalers to retailers

Service firm sponsored franchises to retailers

Franchising
Franchisingarrangementshaveacommonsetofprocedures;

Franchisor offers expert advice

Franchisor promotes the image

Normally have a central purchasing system

Its a binding contract to both sides

Franchisor provides initial start-up and continuous training

Franchisee pay a royalty or franchise fee

Sellingservices
Special characteristics of services include:

Intangibility

Difficulty of separating production from consumption

Services are not as standard as products

Impossible to stock services

7PsofServiceMarketing

People

Process

Physicalevidence

Specialcharacteristicsofservices

SalesPromotions
Salespromotionsincludetechniquesthatorganizationscanuseas
partoftheirmarketingeffortstoaccelerateitssales.

Objectives

Encourage repeat buying

Customer loyalty

Encourage to visit a particular outlet

Reduce stock level

Increase distribution

SalesPromotionincludes

Price reductions
Coupons
Gifts
Competitions
Lotteries
Cash bonuses

SalesPromotionTechniques

Consumer promotions
Trade promotions
Salesforce promotions

Consumerpromotions
Theseareoftenreferredtoaspulltechniques:

A %age off is offered

An additional quantity is offered

Price-off coupons

Introductory discount

Consumerpromotions
JointPromotions

Between retailers & Producers

Between two or more producers
Between service organization & producer

Premiumoffers

Self-liquidating premiums
On-pack gifts
Continuities
Coupon plans
Free samples

Tradepromotions
Theaimisusuallytopushproductsthroughthechannel.

To achieve widespread distribution of a new brand

to move excess stocks onto retailers shelves

To achieve required display levels of a product

To encourage greater overall stockholding

To encourage salespeople at distributor levels

To encourage support for overall promotional strategy

Personnelmotivation
ThesearepromotionstotheSalesforce,butsomeapplytodistributorsand
retailers.

Introduction of a new product line

Movement of slow-selling items

Obtain wider territory coverage

Develop new prospects

Overcome seasonal sales slumps

Obtain display

Develop new sales skills

Exhibitions
Purposeofexhibitionsaretobuildupgoodwillandpreparetheway
forfuturesales.Characteristicsofagoodexhibitionincludes:

A wide range of products

A large number of competitors

A good amount of information

A large number of new products

Nearness to the buyers home base

Good exhibition hall facilities

Methodsusedtoattractvisitors
Direct mail
Telephoning
A personal sales call before the event
An advertisement in the trade press

Attractioncaninclude

A buffet
Give-ways
Advertising material
Films and seminars
Attention gaining exhibits

Exhibitionstandelements

Products on show will depend upon the target market

Literature should not be on a self-service display

Graphics should display the product literature

Have a space for negotiation or interview

Refreshment facilities on the stand are good attractors

Should have a designated storage area

An expensive, stand can be a double-edged weapon.

Thefrontlinebriefing

Objectives of the exhibition

Features of the stand

How to approach stand visitors and deal them

Tips on physical appearance