TOPIC 5 Sales Management and Business Marketing Communication .pdf

Business Marketing

1. TOPIC 5:
SALES MANAGEMENT AND
BUSINESS MARKETING
COMMUNICATION

2. AT THE END OF THE TOPIC, STUDENTS ARE ABLE
TO:
•Explain the business sales force.
•Explain the promotional tools and promotional
media for business marketing.
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3. •5.1.1 Determine the roles of personal selling
•5.1.2 Identify the types of sales organization
•5.1.3 Determine the management of sales force
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5.1 EXPLAIN THE BUSINESS SALES FORCE

4. BUSINESS SALES FORCE
•Personal Selling through company’s sales force is a major
tools of communication as compared to consumer’s
marketing focus on advertising and sales promotion
•Sales person, with the help of technical person, offers not
only physical product but also technical assistance, ideas
and suggestions to solve the industrial customer's problem
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5. 1) ROLES OF PERSONAL SELLING
•Sales representative as part of the problem-solving
capabilities
•Help define the buying problem
•Give an effective customer service
•Represent the customer
•Sales representative as part of communication mix
•Convey the selling messages
•Secure orders from customers
•Communicate market information to top management (e.g:
competitors, customer)
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6. SELLING PROCESS
•Prospecting
•Qualifying
•Preparation
•Presentation
•Closing
•Post Sales Services (maintenance, transporting, financing,
installation)
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7. 2) Types of Sales Organizations:
•Geographical
•Product
•Market/Customer
•Combination of the above three
Types of Sales Organization depend upon:
•Size of the firm
•The resources available (esp. the financial resources)
•Nature and breath of product sold
•Responsibilities assigned to middlemen
•Skills, abilities and knowledge of sales persons
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8. GEOGRAPHICAL
•The most common type that use by the industries which
have less number of product.
•A sales rept. will be assign a particular
territory/branch/region for promoting all the products
to all the customer located in that geographical area.
•When the sales rept. responsible on 1 geography
area, he/she is responsible to do all promotional
activities. E.g:1 sales rept. have to know their area and
responsible to all product services and communication
in Klang Valley.
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9. PRODUCT
•SP are assigned a few products out of various product of the
company. E.g: 1 Product for 1 SP.
•Different SP specialize in selling different group of product
because different product need different types of product
knowledge, application knowledge and selling skills.
•Advantages –if SP specialize in certain product, SP will
become the expertise/well known about the product and
easier to explain to the customer.
•Disadvantages –if the product sell are too many, co’sneed to
have many salespeople/force because 1 sales force for 1
range of product. E.g: Aeroplaneand helicopter for military.
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10. MARKET/CUSTOMER
•This type usually combined with geographic specialization.
•Distinct customer group who are not only large size and potential
but have different buying behavior.
•Example: BOEING/AIRBUS selling aero plane for:
•Commercial= bought by MAS, AirAsia
•Military= defense
•Individual/Personal = custom made for 10 seats only and
have bedroom
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11. COMBINATION OF GEOGRAPHIC
AND PRODUCT SPECIALIZATION
Example:
•Sales Rept. focus for personal jet and custom made
aeroplane(product) at the Asian Countries only
(geographical)
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12. 3) MANAGEMENT OF SALES FORCE
1.Recruitment and selection of business salespersons
2.Selection Criteria
3.Training of salesperson
4.Supervision and motivation
5.Evaluation and control
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13. 1) RECRUITMENT AND SELECTION OF SALES FORCE
•Searching for suitable candidate for sales force.
•From the searching, then co’s implementing the selection
process
•The selection method that can be used:
•Interviews
•Evaluation of application forms
•Checking with references in the application forms
•Personality test
•Test of interest, intelligence, aptitudes (kecergasan) and
knowledge
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14. 2) SELECTION CRITERIA:
•Human relation skills
•Communication Skills
•Technical background
•Job knowledge
•Negotiating Skills
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15. 3) TRAINING OF SALESPERSON
•Sales Training Program: (ACMEE)
A –Aims or Objectives (to increase knowledge/skill) for current and new
sales force
C –Contents of training programme
M –Methods
E –Execution of training programme
E –Evaluation of sales training programme
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16. CONTENTS OF TRAINING
PROGRAMME
•Company Information
•Product Information
•Market Information
•Sales Policies & procedures
•Selling Techniques
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17. METHODS OF TRAINING
GROUP METHODS
•Lecture
•Case discussion
•Group presentation
•Role playing
•Films
•Business games
•Product demonstration
•videotapes
INDIVIDUAL METHODS
•Personal counseling
•On-the-job training
•Product demonstration
•Individual presentation
•Self-study system
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18. EXECUTION OF TRAINING PROGRAM
•Trainees?
•Trainer?
•Content, duration, methods to be used?
•When? How long? Where?
•Instruction materials
•Training Aids?
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19. EVALUATING SALES TRAINING PROGRAM
•Actual sales force performances vs sales target
•Written test before and after the training
•Evaluation during the role playing, group discussion, case
discussion activities
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20. 4) SUPERVISION AND MOTIVATION
•Responsibilities of sales supervisor:
•Communicating and implementing company policies and strategies
•Counseling on problems and deficiencies (weaknesses) of sales force
•Establishing standards of performance
•Creating favorable working environment and working relationship with
the sales persons
•Continuous training and development of sales force
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21. MODELS OF SALES FORCES MOTIVATION AND
PERFORMANCES
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Motivation
Aptitude
Effort SatisfactionRewardsPerformance

22. SALES FORCE COMPENSATION
•Fixed amount –basic salary
•Variable amount –monetary (cash) reward paid by an
employer to an employee that is contingent on discretion,
performance or results achieved. The most common forms are
bonuses and sales incentives.
•Fringe benefit or perks –programs an employer uses to
supplement employees’ compensation, such as paid time off,
medical insurance, company car.
•Expense allowances or reimbursement(travelling, lodging,
customer entertainment)
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23. TYPES OF REWARD
•Straight salary (fixed salary)
•Straight commission (base on a percentage of the sales volume,
but no fixed salary, is paid.
•Combination of salary and perks(benefit)
•Combination of salary and commission
•Combination of salary, commission and perks(benefit)
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24. 5) EVALUATION AND CONTROL
•Evaluation (performances)
•Obtain information on salesperson performances
•Evaluate actual performance with target
•Determine if the goals are achieved
•Control
•Identify problems and take corrective action
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25. •Types of evaluation:
•Quantitative (outcome based):
•Sales performance vs target
•Sales expenses vs total sales
•Number of new customers
•Qualitative (behavior-based):
•Customer satisfaction
•Product knowledge
•Team orientation
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26. 4) THE ADVERTISING MEDIA USED FOR
BUSINESS MARKETING
a)Print media
b)General business publication
c)Trade journals
d)Industrial directories
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27. 5) SALES PROMOTION ACTIVITIES
a)Trade shows
b)Exhibition
c)Catalogues
d)Sales contests
e)Promotional novelties (gifts)
f)Seminars
g)Demonstration
h)Promotional letters
i)Entertainment
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28. Communication/promotion tools and promotion media used in
business marketing
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Advertising Sales
promotion
Direct
marketing
Publicity and
public
relation
Personal
selling
•Print media
•General
business
publications
•Trade journal
•Industrial
directories
•Trade Shows
•Exhibitions
•Catalogues
•Sales contests
•Promotional
novelties
•Demonstration
•Promotional
letters
•Direct mail
•Tele marketing
•On-line marketing
•Charitable
donations
•Adopting villages
•Community
relations
•News items in
press
•Sales calls
•Sales
presentation
•Team selling
•Relationship
marketing

29. 6) PUBLIC RELATIONS AND PUBLICITY
ACTIVITIES
a. Charitable donations
b. Adopting villages
c. Community relations
d. News item in press
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30. 7) DIRECT MARKETING ACTIVITIES
a)Direct mail
b)Telemarketing
c)On-line marketing channels
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31. 8) PERSONAL SELLING ACTIVITIES
a)Sales calls
b)Sales presentation
c)Team selling
d)Relationship marketing
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