Marketing & Sales

Management Training

National Bank of Ethiopia

( Ethiopian Institute of Financial Studies)

Addis Ababa

Abiy Melka (MBA)

October , 2022
Marketing Management

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What is Marketing?
Marketing is the delivery of customer
satisfaction at a profit.

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The Goal of Marketing is:
To attract new customer by promising
superior value, and to keep current
customers by delivering satisfaction.

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 Cont’d
 Marketing, more than any other business function,
deals with customers.
 Creating customer value and satisfaction are at the
very heart of modern marketing thinking and
practice.
 Some people believe that only large business
organizations operating in highly developed
economies use marketing, but sound marketing is
critical to the success of every organization – whether
large or small, for profit or non – profit, domestic or
global.

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Marketing Defined
 Many people think of marketing only as selling and advertising.
 Selling and advertising are only the tip of the marketing ice-berg.
 Marketing is one of three key core functions that are central to all
organizations.
 Marketers act as the customers’ voice within the firm and marketers
are responsible for many more decisions than just advertising or sales:
 Analyze industries to identify emerging trends.
 Determine which national and international markets to enter or
exit.
 Conduct research to understand consumer behavior.
 Design integrated marketing mixes – products, prices, channels of
distribution, and promotion programs.
Marketing is a social and managerial process by which individuals and
groups obtain what they need and want through creating and
exchanging products and value with others.

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Cont’d
To explain marketing definition, we
examine the following important terms :
 Needs, wants, and demands
 Products and services
 Value, satisfaction and quality
 Exchange, transactions, and relationships
 Markets

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 Cont’d
 Marketing, more than any other business function,
deals with customers.
 Creating customer value and satisfaction are at the
very heart of modern marketing thinking and
practice.
 Some people believe that only large business
organizations operating in highly developed
economies use marketing, but sound marketing is
critical to the success of every organization – whether
large or small, for profit or non – profit, domestic or
global.

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 Needs, Wants, and Demands
Needs:
 The most basic concept underlying marketing is that of human needs.
 Human needs are states of felt deprivation.
 Human have many complex needs:
 Physical needs for food, clothing, warmth, and safety
 Social needs or belonging and affection
 Individual needs for knowledge and self – expression
Wants:
 Want are the form taken by human needs as they are shaped by culture and individual
personality.
 People have almost unlimited wants but limited resources.
 They want to choose products that provide the most value and satisfaction for their money.
Demands:
 When backed by buying power, wants become demands.
 Consumers view products as bundles of benefits and choose products that give them the best
bundle for their money.

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10
Products and Services
Product:
 Anything that can be offered to a market to satisfy a
need or want.
 The concept of product is not limited to physical
objects – anything capable of satisfying a need can
be called a product.
Services:
 In addition to tangible goods, products also include
services, which are activities or benefits offered for
sale that are essentially intangible and do not result
in the ownership of anything.

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 Values, Satisfaction, and Quality

Values:
 Customer value is the difference between the values the customer gains from owning
and using a product and the costs of obtaining the products.
 Customers often do not judge product value and costs accurately or objectively. They
act on perceived value.
Satisfaction:
 Customer satisfaction depends on a product’s perceived performance in delivering value
relative to a buyer’s expectation.
 If the product’s performance falls short of the customer’s expectations, the buyer is
dissatisfied.
Quality:
 Customer satisfaction is closely linked to quality.
 Quality has a direct impact on product performance.
 Quality can be defined as “freedom from defects”.
 TQM programs designed to constantly improve the quality of products, services, and
marketing processes.
 Exchange, Transactions,
and Relationships
Exchange :
 The act of obtaining a desired object from someone
by offering something in return
Transaction :
 A trade between two parties that involves at least
two things of value, agreed – upon conditions a time
of agreement, and a place of agreement.
Relationship Marketing :
 The process of creating, maintaining, and enhancing
strong, value – laden relationships with customers
and other stakeholders

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Picture demonstrating the practical transaction of
Goods and Services

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 Markets
The set of all actual and potential buyers of a
product or service
Communication

Products / Services
Industry Market
(a collection of (a collection of
sellers) buyers)
Money

Information

A simple marketing system

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 Main actors and forces in a modern marketing system

Competitors

Marketing
intermediaries End user market
Suppliers
Company
(marketer)

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Marketing Management
The analysis, planning, implementation,
and control of programs designed to
create, build, and maintain beneficial
exchanges with target buyers for the
purpose of achieving organizational
objectives.

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Marketing Management Involves:
 Demand Management : The organization has a
desired level of demand for its products. At any point
in time, There may be no demand, adequate
demand, irregular demand, or too much demand,
and marketing management must find ways to deal
with these different demand states.
 Building Profitable Customer Relationships :
Beyond designing strategies to attract new customers
and create transactions with them, companies now
are striving to retain current customers and build
lasting customer relationships.

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 MARKETING MANAGEMENT PHILOSOPHIES

 The role that marketing plays within a company

varies according to the overall strategy and
philosophy of each firm.
 There are five alternative concepts under which
organizations conduct their marketing activities:
 Production concept

 Product concept

 Selling concept

 Marketing concept

 Societal marketing concepts

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Production Concept
The philosophy that consumers will
favour products that are available and
highly affordable and that management
should therefore focus on improving
production and distribution efficiency.

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 Product Concept

The philosophy that consumers will favor

products that offer the most quality,
performance, and innovative features.
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Selling Concept
The idea that consumers will not buy
enough of the organization’s products
unless the organization undertakes a
large – scale selling and promotion
effort.

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Marketing Concept
The marketing management philosophy
that holds that achieving organizational
goals depends on determining the
needs and wants of target markets and
delivering the desired satisfactions more
effectively and efficiently than
competitors do.

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Societal Marketing Concept
The idea that the organization should
determine the needs, wants, and
interests of target markets and deliver
the desired satisfactions more
effectively and efficiently than
competitors in a way that maintains or
improves the consumer’s and society’s
well – being.
E.g Eden water
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The selling and Marketing Concepts Contrasted

Starting
Focus Means Ends
point
Selling
Factory Existing and
Profits through
products sales volume
promoting

The selling concept

Profits through
Market Customer Integrated customer
needs marketing
satisfaction

The marketing concept

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Three Considerations Underlying The Societal
Marketing

Society
(Human welfare)

Societal
marketing
concept

Consumers Company
(Want satisfaction) (Profits)

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The Marketing Environment
 Marketing Environment

 The marketing environment consists of actors

and forces outside the organization that affect
management’s ability to build and maintain
relationships with target customers.
 Environment offers both opportunities and
threats.
 Marketing intelligence and research used to
collect information about the environment.
 Marketing Environment

 Includes:
 Microenvironment: actors close to the
company that affect its ability to serve its
customers.
 Macroenvironment: larger societal forces
that affect the microenvironment.
 Considered to be beyond the control of the
organization.
The Company’s Microenvironment
 Company’s Internal Environment:
 Areas inside a company.

 Affects the marketing department’s

planning strategies.
 All departments must “think consumer” and

work together to provide superior customer

value and satisfaction.
Actors in the
Microenvironment
The Company’s Microenvironment

 Suppliers:
 Provide resources needed to produce goods and
services.
 Important link in the “value delivery system.”
 Most marketers treat suppliers like partners.
 The Company’s Microenvironment

 Marketing Intermediaries:
 Help the company to promote, sell, and distribute
its goods to final buyers
 Resellers
 Physical distribution firms
 Marketing services agencies
 Financial intermediaries
The Company’s Microenvironment

 Customers:
 Five types of markets that purchase a
company’s goods and services
 Suspects: who aren’t even aware yet how much
they need your product or service.
 Prospects: prospects are known and by this point
are typically either in contact with a sales
representative of the company or in some other
way have reached out to learn more about your
brand and products.
 Customers (cont’d)
 New customers: Individuals who have bought
the product for the first time.
 Repeat customers:hey are continuing to
purchase your product and maybe by this time
they have tried other products
 Advocates: These customers have an emotional
connection with the brand, trust in the
company’s products and employees to support
them and will personally recommend you to
others.

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 The Company’s Microenvironment
 Competitors:
 Those who serve a target market with products
and services that are viewed by consumers as
being reasonable substitutes
 Company must gain strategic advantage against
these organizations
 Publics:
 Group that has an interest in or impact on an
organization's ability to achieve its objectives
 E.g Walia Beer Arsi farmers
Types of Publics
 The Macroenvironment
 The company and all of the other actors
operate in a larger macroenvironment
of forces that shape opportunities and
pose threats to the company.
The Company’s Macroenvironment
The Company’s Macroenvironment

 Demographic:
 The study of human populations in terms of
size, density, location, age, gender, race,
occupation, and other statistics.
 Marketers track changing age and family
structures, geographic population shifts,
educational characteristics, and population
diversity.
 Economic Environment

Consists of factors that affect consumer

purchasing power and spending patterns.

 Income Distribution
 Upper class
 Middle class
 Working class
 Underclass
E.g Access Real estate
 Natural Environment

 Involves the natural

resources that are
needed as inputs by
marketers or that are
affected by marketing
activities.
E.G Legedembi Gold
Mine and MEDROC
Factors Impacting the Natural
Environment

Shortages of Raw Materials

Increased Pollution

Increased Government Intervention

Environmentally Sustainable Strategies

Technological Environment

 Most dramatic force now

shaping our destiny.

E.g Social Media/Digital marketing

facebook
 Technological Environment

 Changes rapidly.
 Creates new markets and opportunities.

 Challenge is to make practical, affordable

products.
 Safety regulations result in higher research
costs and longer time between
conceptualization and introduction of product.
E.g the Ethiopian Banking Industry
digitalization deeds
 Political Environment

Includes Laws,
Increasing Legislation
Government
Agencies, and
Pressure Groups
Changing Government
that Influence or Agency Enforcement
Limit Various
Organizations and
Individuals In a Increased Emphasis on Ethics
Given Society. & Socially Responsible Actions
 Current Political and Economic
conditions in Ethiopia posed a serious/
hurdle / opportunities to the stability of
Business and investment
 Strengthened controlling in tax and
border trade evolving contraband

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 Cultural Environment

 The institutions and other forces that

affect a society’s basic values,
perceptions, preference, and
behaviors.
E.g The recent ads made by Dkt Ethiopia
on family planning
 Cultural Environment

 Core beliefs and values are passed on

from parents to children and are
reinforced by schools, churches,
business, and government.
 Secondary beliefs and values are more
open to change.
Cultural Environment
Themselves Society’s Major
Cultural Views Are
Others Expressed in
People’s Views of:

Organizations

Society

Nature

The Universe
 Responding to the Marketing Environment
 Environmental Management Perspective
 Taking a proactive approach to managing the
environment by taking aggressive (rather than
reactive) actions to affect the publics and forces
in the marketing environment.
 This can be done by:

 Hiring lobbyists
 Running “advertorials”
 Pressing lawsuits
 Filing complaints
 Forming agreements to control channels
 Marketing Strategy

The selection of a course of action from among several alternatives

that involves specific customer groups, communication methods,
distribution channels, and pricing structures.

It is a combination of target markets and

marketing mixes.
 Target Market

A target market is a market segment

selected by an organization
for marketing attention.

Market segmentation involves dividing

customers into groups (market segments)
with common characteristics.
 Marketing Mix
A marketing mix includes those controllable factors that have
been chosen to satisfy customer needs.

The eight controllable factors are product, price, place,

promotion, packaging, programming, partnership, and people.

These are also know as the 8 Ps.

 Relationship Marketing and
Strategic Alliances
Relationship Marketing
Placing an emphasis on building, maintaining, and
enhancing long-term relationships with
customers, suppliers, travel trade intermediaries,
and perhaps even competitors.

Strategic Alliances
Special long-term marketing relationships formed
between two or more organizations.
 Positioning

Positioning is the development of a service

and a marketing mix
to occupy a specific place in the minds
of customers within target markets.
 Marketing Objective

A marketing objective is a measurable goal

that an organization
attempts to achieve for a target market
within a specific time period,
typically one year.
 Segmented Marketing Strategies

Approaches that recognized the differences

among target markets by using individualized
marketing mixes for each of the target markets selected by the
organization. Also known as a differentiated strategy.
 Undifferentiated Marketing Strategy

A strategy that overlooks segment differences

and uses the same marketing mix for all target
markets.
 Alternative Strategies for
Product Life Cycle Stages
 Introduction Stage

a. Rapid-skimming strategy (high price/high promotion).

b. Slow-skimming strategy (high price/low promotion).
c. Rapid-penetration strategy (low price/high promotion).
d. Slow-penetration strategy (low price/low promotion).
 Alternative Strategies for
Product Life Cycle Stages

 Growth Stage
a. Improve service quality and add new service features and
elements
b. Pursue new target markets
c. Use new channels of distribution
d. Lower prices to attract more price-sensitive customers
e. Shift some advertising emphasis away from building
awareness to creating desire and action
 Alternative Strategies for
Product Life Cycle Stages

 Maturity Stage
a. Market-modification strategy
b. Product-modification strategy
c. Marketing-mix modification strategy

 Decline Stage
a. Reduce costs and milk the company
b. Sell off or get out of the business
Lucky selling at the decline stage of a
product

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 Alternative Strategies
by Industry Position

 A ranking of a brand, product, or company,

in terms of its sales volume relative to the sales
volume of its competitors in the
same market or industry.
 Market Leaders
a. Expand the size of the total market
b. Protect market share
c. Expand market share
 Market Challengers
a. Take on or attack the market leader
 Alternative Strategies
by Industry Position

 Market Followers
a. Shy away from any attacks on market leaders

 Market Nichers
a. Specialize in a particular market segment
E.g Ferrari cars
 Positioning

Positioning is the development of a service and a marketing

mix to occupy a specific place in the minds of customers
within target markets.
 Reasons for Increased Importance of
Positioning

1. Perceptual processes of customers

They screen out most information
2. Greater competition
More organizations competing for share of mind
3. Growing volume of commercial messages
Advertising and promotion clutter
E.g Mineral waters producers in Ethiopia
Steps Required for Effective
Positioning (the five Ds)

 Documenting
 Deciding
 Differentiating
 Designing
 Delivering
 The 5 Ds of Positioning

 Documenting  Differentiation
What benefits are the most Which competitors do you want
important to your current and to appear different from, and
potential customers? what are the factors that you
will use to make your
 Deciding organization different from
them?
What image do you want your
current and potential customers
to have of your organization?
 The 5 Ds of Positioning

 Designing
How will you develop and
communicate these
differences?
 Delivering
How will you make good on
what you’ve promised, and how
do you make sure that you have
“delivered?”
 Positioning Approaches:
Six Major Alternatives

 Specific product features

 Benefits, problem solution, or needs
 Specific usage occasions
 User category
 Against another “product”
 “Product class” dissociation
 Marketing Mix

Product, Price, Place and

Promotion
 Marketing Mix: Product
 Challenges in creating new products
 idea shortage; fragmented markets
 social & governmental constraints; cost
 capital shortage; need for speed; short PLC

 Why new products fail

 overestimated demand; poor design
 poor marketing execution; high development costs
 strong competitive reaction
 Marketing Mix: Product
 New Product Development Process
 idea generation & screening
 concept development and testing
 marketing strategy development
 business analysis
 product development
 market testing
 commercialization
 Marketing Mix: Product
Classification
 Convenience products
 low priced, many locations, bought frequently
E.g Consumable goods like soft drinks
 Specialty products
 special purchase effort, unique, brand identification
 exclusive distribution

Industrial products like Machineries ,Medical equipments

 Shopping products
 Bought on suitability, quality, price and style
E.g Gucci, Armani…
 Unsought products
 New innovation, requires advertising and selling
 Marketing Mix: Product Mix
 Width
 number of different product lines
 Length
 total number of items within the lines
 Depth
 number of versions of each product
 New Product Development
 What characteristics do you innovate
 location,
 flavor,
 price,
 size,
 experience
 ?????????
 Brand Strategy
 With existing brand name
 use brand extensions or develop a new brand name.
 With existing product category
 use line extensions with existing brands or develop
multiple brands
 Good brand names:
 suggest product qualities or benefits
 are distinctive, but easy to pronounce and remember

 lack poor foreign language meanings

E.G Mercedes /Infinity Car

 Marketing Mix: Price

You don’t sell through price. You

sell the price! A Price is:
“What You Think your product is
Worth to That Customer at That
Time.”
Jay Klompmaker’s 4 C’S of Pricing
 What is the highest price I can charge and
still make the sale?
 Customers
 Competitors

 Am I willing and able to sell at that price?

 Costs
 Constraints
 Marketing Mix: Setting Pricing
Policy
 1. Setting the pricing objective
 2. Determining demand
 3. Estimating costs
 4. Analysing the competition:
 costs, price, and offers
 5. Selecting a pricing method
 6. Selecting the final price
 Determining Demand

 Price Sensitivity
 Unique Value
 Substitute Awareness
 Total Expenditure (Cost of Ownership)
 Inventory
 Estimating demand curves
 Price elasticity of demand
 Estimating Demand
 Estimating demand curves
 Statistically analyze past relationships
between price, quantities sold and other
factors
 Conduct price experiments (Field or Lab)
 Ask Buyers to state how many units they
would buy at various prices or at what
price they would be willing to purchase
 Estimating Costs
 Types of costs
 Fixed or Overhead
 Variable
 Marginal
 Do you know your costs of production
 Experience or learning effects
 Differentiating marketing offers
 Target costing
 Selecting a Pricing Method
 Markup pricing –cost plus margin
 Target return- Investment costs are
determined, and a targeted rate of return is
applied
 Value in use- The value customers receive is
calculated and pricing is applied accordingly
 Value- everyday low pricing
 Going rate – follow the leaders
 Sealed-bid – the market sets the price
 Price Discounts and
Allowances
 Cash discount
 Quantity discount
 Functional discount - trade discounts to
channel members
 Seasonal discount
 Allowances -trade in Allowance or
Promotional Allowance
 Promotional Pricing
 Loss-leader pricing – price below cost
 Special event pricing- limited time sales price
 Cash rebate- sell for list price but offer discount via cash back
 Low interest financing - Maintain list price; attract more buyers
via lower monthly payment;
 Longer payment terms- Maintain list price; attract more buyers
via lower monthly payment
 Warranties & service contracts - Maintain list price; attract more
buyers by reducing their perceived risk
 Buy one get one free
 Free component part- free razor, pay for blades
 Initiating Price Cuts:
Traps to Avoid
 Low quality trap
 Price-quality relationship
 Shallow pockets trap
 Strongest firms may be able to cut price
and still make a profit!
 Fragile market share trap
 LOYALTY cannot be bought!
 How to Avoid Raising Prices
 Shrink amount of product
 Less expensive ingredients
 Remove features
 Remove/reduce services
 Less expensive packaging
 Create new, economy brands
Factors Affecting Price Sensitivity
 Perceived substitutes
 Unique value effect
 Switching cost
 Difficult comparison effect
 Price-quality effect
 Fairness effect
 Pricing Strategies
 Skimming
 Sequential skimming and penetration
 Neutral
 Segmented
 Purchase location
 Time of purchase
 Quantity purchased
 Product bundling
 Tie-in/metering- lower price for the tying good
and higher price for the tied good
 MARKETING MIX:
Communication
(Advertising and Sales
Promotion)

Targeting Businesses and

Consumer with the Correct
Message & Media
 Marketing Communications Mix
 Advertising: Paid form of non-personal presentation
by a sponsor
 Sales Promotions: Short-term incentive to
encourage trial or purchase
 Public Relations: Protect and/or promote the firm’s
image/products
 Personal Selling: Personal presentations
 Direct Marketing: Direct communications. Goal:
immediate response
 Elements in the Communications
Process
 Sender
 encoding
 Message/Media
 Noise
 Receiver
 decoding
 Response
 feedback
 purchase
 Designing the Message
 Message content
 rational, emotional and/or moral appeals
 Message structure
 draw conclusions, argument
 Message format
 Layout, words, sounds, body language
 Message source
 expertise, trustworthiness, matching
Communication Strategy: Push
vs. Pull
 Pull strategies focus on getting the customer to
request or demand the product from the retailer
or intermediaries (middle-men)

 Push strategies focus on getting the product

distributed through the channels so that the
various intermediaries have the product on hand
and are actively promoting the product.
 Major
Media:Advantages/Disadvantages
 Broadcast
 appeals to senses, large audience
 high cost, high clutter, fleeting exposure
 Direct Mail
 audience selectivity, flexibility, personalization
 relative high cost, “junk mail” image
 Newspapers:
 flexible, local coverage, believable, accepted
 short-life, poor reproduction quality
 Major
Media:Advantages/Disadvantages
 Magazines
 high geographic and demographic selectivity,
credible, prestigious, high quality reproduction,
long-life
 long ad purchase lead time, waste circulation, no
guarantee of position
 Outdoor
 flexible, high repeat exposure, low cost, low
message competition
 little audience selectivity, creative limitations
 Message Execution
 Testimonial evidence, scientific evidence- a
celebrity/company officials/typical consumer
endorsing a product
 Technical expertise- use of experts
Personality symbol- use of celebrities
 Musical- message conveyed through songs
 Cont’d
 Mood/Image- builds mood or image of
love, peace/ beauty
 Fantasy- creates a fantasy for the
viewer built around the use of the
product
 Lifestyle- how well the product fits with
lifestyle
 Slice of life- depict people in normal
settings 100
 Managing Promotions
 Defining objectives
 Flows from overall marketing strategy
 Must Address advertising strengths --
create awareness, provide information,
influence attitudes, and reminding.
 Objectives should be written
 Objectives should be specific
 Objectives should be measurable
 Decision Stages in Promotion
Planning
 Set objectives and define target market
 Determine budget
 Determine creative strategy
 intended positioning
 give direction for message creation
 Develop message
 focus on benefits and image
 Select media
 Evaluate effectiveness
 E-Marketing
 Database Marketing

 Internet Programs

 Website
 Trade Shows
 Benefits of trade shows
 Sales message delivered
 New products introduced
 Customer gets “Hands-On” experience
 Generate prospects
 Enhance goodwill
 Free publicity for firm
 Evaluating Trade Show
Performance
 Attraction efficiency
 booth size
 show promotion
 attention getting techniques
 Contact with salesperson
 Sales leads generated
 Sales Closed (short-term & long-term)
 Public Relations
 Types of PR
 web site
 news reports
 speeches
 special events
 audio-visual materials
 public service activities
 written materials
 PART II
Managing the Sales Force

Sales Force Management:

Designing, Organizing and
Motivating the Sales Force
 Sales Force Tasks
 Prospecting
 Targeting
 Communicating
 Selling
 Servicing
 Information gathering
 Allocating
When to use Personal Selling
 Tight budget (use straight commission)
 Product must be customized
 Personal contact important
 Must demonstrate product
 Product involves a trade-in/up
 Concentrated market
 few buyer
 high value product
 Designing the Sales Force
 A Sales Force should be designed
around how customers want to buy
 Rackham indicates that there are 3
basic types of customers in terms of the
value they seek
 Transaction (intrinsic value)
 Consultative Selling (extrinsic value)
 Enterprise (extrinsic value)
 Designing the Sales Force
 Value = Benefits - Costs
 Intrinsic value: Value is intrinsic to the
product itself. These customers focus
on the cost elements of value and
generally know the product well.
 Extrinsic value: Value is not only in the
product itself but also lies in how the
product is used. They value extra
services.
 Designing the Sales Force
 The organisation, motivation and
compensation of the sales force should
reflect the values sought by the
customer.
 Most firms have some intrinsic value
customers and some extrinsic value
customers.
 They cannot be efficiently served by the
same sales process!
Designing the Sales Force
 Types of sales positions/
representatives:
 Deliverer
 Order taker
 Missionary
 Technician
 Demand creator
 Solution vendor
Organising the Sales Force
 Needed information:
 Sales force goals and objectives
 Determine the type of sales call needed
 Determine how long is needed for an
effective sales call (intrinsic & extrinsic)
 Number of each type of customer to be
contacted
 Number of salespeople required
Organising and Managing the
Sales Force
 Sales management functions:
 Recruiting & selecting; Training & coaching
 Supervising; Motivating; Evaluating

 Possible sales force structures

 Territorial; Product; Market; Customer type
 Complex (combination)
 Managing the Sales Force
 Recruiting and selecting
 Critical sales management function
(Pareto’s Law)
 What skills are required
 With whom will the salesperson interact
 Turnover issues
 Profitability issues
Managing the Sales Force
 Training
 Needed knowledge includes the:
 firm itself
 product/service offerings
 customers & competitors
 sales presentation skills
 field procedures and responsibilities
 negotiation skills
 relationship building skills
Managing the Sales Force
 Supervising
 Call planning
 Sales skills
 Norms for prospecting calls
 Norms for current customer calls
 Time management!
 Goals is to increase a salesperson’s
effective selling time (currently often less
than 25%)
Managing the Sales Force
 Motivating salespeople
 most people work below capacity
 salespeople have a difficult job
 face rejection constantly
 work harder & work smarter
 financial rewards should fit the sales
position
 recognition rewards should fit the person
Managing the Sales Force
 Evaluating - You get the behavior that you
reward!! You should evaluate a salesperson
on things he/she can control!
 Sales reports of activity
 Profitability
 Sales volume
 Quota (linking past & current performance)
 Sales expense vs. results
 Sales by line or product class
Enhancing the Sales Function

Making your sales force a more

effective unit
 Enhancing Sales Skills
 Prospecting & qualifying
 Preliminaries
 Investigation of needs
 Presentation & demonstration
 Handling objections
 Closing
 Follow-up
 Sales Skills: Prospecting
 Key is to find customer in the most efficient &
effective manner
 past sales records
 directories
 personal observation
 referrals
 phone books
 membership is organisations
 promotion efforts
 Sales Skills: Preliminaries
 Key is to know what is expected in this area
 Always meet or exceed expectations
 identify:
 who you are
 who you represent
 engage in ice-breaker conversation (small
talk)
 present a professional appearance
 excellent grooming
 Sales Skills:Investigation
 Most important issue in personal selling
 Key is to find customer needs so that the
sales presentation addresses the customer,
not the seller
 let the customer talk

 ask relevant questions

 SPIN selling approach or other questioning

technique
 cater presentation to your discoveries

during the investigation phase

 SPIN SELLING
 Situation - Where is the firm right
now?
 Problem - What Problems do they
face?
 Implication - How do those Problems
affect the firm?
 Need-Payoff - What is the value in
solving the Problem?
 Establish a basis for closing
 Sales Skills: Handling
Objections
 First, try to make a presentation that addresses
all of the commonly voiced objections
 Make it acceptable to have a question or
objection
 Process for handling objections:
 acknowledge & confirm

 verify

 respond

 trial close
 Sales Skills: Closing
 If you have made an excellent presentation
closing is easy
 It is the logical thing to do at that point in the
presentation
 Directly ask for the sale
 balance sheet approach
 summary of benefits
 direct close
 Sales Skills: Follow-up
 Critically important to obtain future business
 Requires an understanding of what the
customer expects
 Requires organisation
 When done well, it sets a salesperson apart
from the competition
 expectations (frequency, timing)

 thoroughness
 BUILDING BUSINESS
RELATIONSHIPS

Suppliers and customers develop

relationships: A new way of doing
business?
 BUYER-SELLER RELATIONSHIPS
 Relationships have a long-term orientation
 The salesperson or customer contact point
serves as a creator of value -- not just a
source of information
 Requires detailed knowledge to match
offering with needs and to think creatively
about other needs
RELATIONSHIPS IN INTERNATIONAL
MARKETS
 In many cultures personal relationships
precede business relationships
 Take time to develop
 TRUST
 Between organisations, Trust is developed
by:
 Building credibility
 Experience with that partner
 Exceeding expectations
 Coordination of the supplying firm’s interaction
with the customer
 How a salesperson can build Trust
 Dependability; Competence; Customer orientation
 Honesty; Personable
 COMMUNICATION
 Key to building relationships
 Knowledge is important
 Understand communication style of the
customer
 Social style
 Personality
 Current factors
 international/cultural
 SHARED GOALS
 Cooperation leads to profits
 Clear goals
 Measurable goals
 Performance metrics
 MUTUAL GAIN
 Think win-win
 Look for overlapping opportunity
 Collaboration
 Design collaboration with customer or supplier
 Shared costs
 Mutual dependency is best
 Credible commitments
 On location staff
 SUPPORT
 Structure
 Structure accounts for success
 Provide necessary resources
 Lines of authority and communication
 Corporate culture should
 Emphasize needed behaviors
 Train for required tasks
 Rewards
 Reward appropriate behaviors
 SALESPERSON ROLE IN THE
SUPPLIER FIRM
 Relationship managers -- not salespeople
 Long-term focus
 Current sales is important but not critical
 Communication at various levels is important

 Technology is critical
 Link the two firms electronically when possible
 Electronic ordering
 Personal
 STAGES OF RELATIONSHIPS &
PARTNERSHIPS
 Awareness
 Exploration
 Expansion
 Commitment
 Dissolution
 Involves testing and consistent performance
at each stage
 EXPLORATION
 An initial test
 Manage expectations
 Monitor order processing
 Ensure initial satisfaction
 Complaints ?
 EXPANSION
 A more detailed testing period
 Be present at buying times
 Service is key
 Provide expert knowledge
 Provide special assistance
 Manage quality of the experience
 COMMITMENT
 Capability
 Organisation
 Financial health
 Culture
 Willingness to commit resources
 Ethics
 DISSOLUTION
 To avoid relationship dissolution:

 Salesperson should be a change agent

 Enhance personal relationships
 Develop internal champions in customer firms
 Monitor competitors
 Avoid complacency!
 NECESSARY SKILLS FOR
RELATIONSHIP BUILDING
 Excellent communication
 High ethical standards
 Knowledge
 Product
 Customer
 Market
 Patience
 Negotiation skills