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Slide 4.

Chapter 4

Sales settings

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.2

Objectives
After studying this chapter, you should be able to:
1. Understand the forces that impact on selling and sales
management.
2. Appreciate why channels are structured in different ways.
3. Evaluate push and pull promotional strategies and tactics.
4. Understand the unique problems and forces that surround
organisational and service sales settings.
5. Evaluate the usefulness and application of exhibitions
as a promotional medium.
6. Understand the nature and role of public relations
as a selling tool.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.3

Behavioural forces
As customers adjust to a changing environment,
so sales have to adapt to a variety of influences:
(a) rising consumer and organisational buyer
expectations (raising the bar)
(b) customer avoidance of buyer–seller
negotiations (fixed price by Saturn & Daewoo)
(c) expanding power of major buyers (Retailers)
(d) globalisation of markets (Coca-Cola, Colgate-
Palmolive, Avon)
(e) fragmentation of markets (lifestyles, personality,
experiences & race)
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.4

Technological forces

Technological forces on selling and sales


management are three major forces at play:

(a) Sales force automation (laptops, palmtops, mobile


phones, faxes, etc.)

(b) Virtual sales offices (blackberry’s, car or home


offices)

(c)Electronic sales channel (internet, ATM machines)


David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.5

Managerial forces
Managers can respond to the changes in the
environment by developing new strategies and
tactics to enhance sales effectiveness, including
the following:
(a) Employing direct marketing techniques (internet,
telemarketing, direct mail)
(b) Improving co-operation between sales and
marketing (intranets-linking employees,
suppliers & customers through their PCs)
(c) Encouraging salespeople to attend training
programmes and acquire professional
qualifications (Strategic customer management)
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.6

Strategic customer management


Three activities to be performed

•Intelligence: Enhancing customer knowledge to add


value to customer relationship
•Interface: refocusing the management efforts into the
management & exploitation of critical interface that
affect customer value
•Integration: process of welding all the company
activities and processes that affect customer value
into a single, integrated & sustained point of value
delivery to customers
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.7

Characteristics of sales channels

A manufacturer has the choice of one of four types


of distribution:
1. Direct: the manufacturer does not use a middleman
and sells and delivers direct to the end-customer.
2. Selective: the manufacturer sells through a limited
number of middlemen who are chosen because of
special abilities or facilities to enable the product to
be better marketed.
3. Intensive: maximum exposure at the point of sale is
needed and the manufacturer sells through as many
outlets as possible.
4. Exclusive: the manufacturer sells to a restricted
number of dealers.
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.8

Types of production
1. Job (or unit or project) production: an item is
produced or constructed to individual customer
requirements (Tailor made suits, Ships, Airplanes )

2. Batch production: a number of products or


components are made at the same time, but not
on a continuous basis (FMCG, Furniture & Clothes)

3. Flow (or mass or line) production: this is a


continuous production of identical or similar products
that are made in anticipation of sales (Cars, DVDs, W
machines)

4. Process (or continuous) production: the production


unit has raw materials coming into the manufacturing
process and a finished product emerging at the end
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
(chemicals, brewing, glass process)
Slide 4.9

Selling for Resale


There are a number of different types of retailing:

1. Multiples: retail organization with 10 or branches


2. Variety chains: At least 5 & sell wider range of
merchandise
3. Co-operative societies: owned & controlled by the
people who shop there, governed by board of directors
4. Department store: store with five or more
departments under one roof
5. Independents: Traders who own their own outlets
6. Mail order: through catalogues like Avon & Marry Kay
7. Direct selling: eliminating a middleman

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.10

Selling Services
• Transportation • Repair & maintenance
• Power • Travel agencies
• Hotels • Accounting services
• Restaurants • Business consultancy
• Communications • Architectural
• TV & Radio • Cleaning
• Banking • Library
• Insurance • Public authority services
• Clubs • Stockbroking
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.11

Special characteristics of service


3 further Ps of Services
• Intangibility • People (frontline people
• Simultaneously are the backbone)
produced &
consumed • Process (consistency &
• Not standardized quality must be well
• Can not stock planned & managed)
services
• Perishable • Physical evidence
(physical facilities)
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.12

Sales Promotions
Techniques cover Sales promotion include

• Consumer promotions • Price reductions


• Coupons
• Trade promotions • Gifts
• Competition
• Salesforce promotion • Lotteries
• Cash bonuses

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.13

Figure 4.1 A model of the exhibition communication process

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.14

Public relations (PR)

PR is used in order to create a better environment


for the organisation and its activities. The objectives
may include the following:
• attract sales inquiries;
• reinforce customer loyalty;
• attract investors;
• attract merger partners or smooth the way for
acquisition;
• attract better employees;

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.15

Public relations (PR) (Continued)

• dissolve or block union problems;


• minimise competitor advantage while you catch up;
• open a new market;
• launch a new product;
• reward key people with recognition and
• bring about favourable legislation.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.16

Effective public relations

Effective PR depends on the following:


• setting specific objectives that are capable of
evaluation;
• fully integrating the PR function into the organisation
and
• selecting the right personnel to carry out the PR
function.

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009