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SALES

(chapter 2&3)
I. Relationship Marketing, Where Personal Selling Fits

Firms of all sizes face the dilemma of how to increase sales. Many organizations are good at
developing goods or services, but know very little about marketing their products. This
chapter introduces the purpose and components of a firm’s marketing efforts, along with
the role and importance of the sales force in a firm’s total marketing effort.

Purpose of Business

To increase the general well-being of humankind through the sale of goods and services.
Requires making a profit in order to operate the business and provide beneficial products to
the marketplace.

Primary Goal of Business

To transform the marketplace and workplace into an environment where everyone is treated as
they would like to be treated. Business should be fair to all parties involved in both the buying
and selling of goods and services.

Marketing

Organizational function and a set of processes for creating, communicating, and delivering
value to customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.
Involves a diverse set of activities directed at a wide range of goods, services, and ideas. These
activities involve the development, pricing, promotion, and distribution of want-satisfying
goods and services to consumers and industrial users.
Exchange and Transaction

Indicating to the people needs and wants and can place value on product.
Exchange refers to the act of obtaining a desired product from someone by offering something
in return.
Transaction is a trade of values between two parties, and once transaction has occurred, the
exchange is complete.

CONCEPTS

The Production Concept

Before the Great Depression of the 1930s, a common saying in industry was, “Build a better
mousetrap, that Companies were basically production oriented of creating a sustainability
through products and goods to the people, with an objective of providing good quality of
goods and services in order to achieve long-term sales.

The Selling Concept

Selling techniques that evolves in the early 1940s of World War II, were companies still
produced goods with little regard for the customer demands. Recognizing that personal selling
and advertising were important selling methods and also recognized the value of conducting
training to their salespeople to be more productive in a long run.

The Marketing Concept

In the 1950s, marketing became the main focus of business sales activities rather than selling.
Businesspeople recognized that marketing was vitally important to the success of a firm, an
entirely new way of business thinking.
Marketing concept is a business philosophy that says the costumers want satisfaction is the
economic and social justification for a firm’s existence.
All company activities should be devoted to determining customers want and then satisfying
them, while still making profit.
Difference between Selling and Marketing Concepts

SELLING CONCEPT MARKETING CONCEPT

Emphasis is on the product. Emphasis is on customers wants.

Company first determines customers wants


Company first makes the product and the and then figures out how to make and deliver
figures out how to sell it. a product to satisfy those wants.

Management is sales volume oriented. Management is profit oriented.

Planning is short-run, in terms of today’s Planning is long-run, in terms of new


products and markets. products, tomorrows markets, and future
growth.

Stresses needs of seller. Stresses wants of buyers.

Marketing Importance in the Firm

Marketing consideration should be the most critical factor guiding all short-range and long-
range planning in any organization.

There are four important objectives that marketing needs to accomplish;

1. Maximize the sales of existing products in existing markets.

2. Develop and sell new products.

3. Develop new markets for existing or new products.

4. Provide the quality of service necessary for customers to be satisfied


with their transaction and to continue doing business with the
organization.
Marketing Generates Sales

The main role of marketing in an organization is basically to generate revenues, because as


the money marketing generates is managed by the financial people and used by the production
people creating goods and services.

Marketing Provides Quality Customer Service

Make sure customers are satisfied of the product or goods they purchase, and excellent service
pays off because this can create true customer that buy more and who will influence others to
buy. In short quality service helps the organization to maximize sales.

Essentials of a Firms Marketing Effort

1. To determine the needs of their customers.


2. To create and maintain an effective marketing mix that satisfies customer needs.

4 Main Elements of Marketing Mix

Marketing
Mix

Product Price Place Promotion

Personal Advertising Sales Publicity


Selling Promotion
Distribution

The marketing manager determines the best method of distributing the product, and this
distribution refers to the channel structure used to transfer products from an organization to
its customers.
It is important to have the product available to customers in a convenient and accessible
location when they want it.

Promotion

Increases the company sales by communicating product information to potential customers.


Promotion also educates consumers about the product’s features, advantages, and benefits.
Organizations selling in industrial markets spend a higher percentage of the promotion budget
on their sales force than manufacturers of consumer goods.

The Goal of a Marketing Mix

The goal of marketing mix is simply striving to create a marketing mix containing the right
product, right price, at the right time, with the right promotional effort.

Personal Selling, is an essential element of any organizations marketing mix, with


the functions of generating revenue and provide service to help make customers
satisfied with their purchases. This builds relationships and is the key to success in
today’s competitive marketplace.

The New Consultative Selling

The best sales calls are highly interactive dialogues between a salesperson and a customer.
Consultative Selling is the process of helping the customer achieve strategic short and a long-
term goal through the use of the seller’s goods and services.

Three Roles of Consultative Selling

1. Customer want the salespeople who are committed to helping them succeed.

2. Customer want the salespeople who will stay involved with them over time

3. Customer want the salespeople always to focus on their needs.


Team Leader Role

Salesperson coordinates all of the information, resources, and activities needed to support
customers before, during, and after the sale.
The team leader works to bring together all of the organization’s resources for the customer.

Business Consultant Role

Collects confidential information and data before being able to make purchase
recommendations. These are the several things that help salespeople become business
consultant;

1. Demonstrating and refining their understanding of the customer’s big


picture.

2. Creating an atmosphere of trust, integrity, reliability, and professionalism


that fosters the exchange of information and ideas.

3. Continually strengthening their business knowledge.

4. Following the Golden Rule.

Long-Term Ally Role

Salesperson acts as a helper in meeting the customer’s needs, with the goals of creating a
win-win situation.
The salesperson presents goods and services honestly and turns down business that is not on
the customer’s long-term interest.
The ability of salesperson to fulfill the role of long-term ally is a pivotal factor in determining
whether a sales interaction is just a transaction or the beginning of a relationship.

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