Shehroz Kaleem

www.shehrozkaleem.com

Most salespeople are well-educated, well-

trained professionals who work to build and

maintain long-term relationships with

customers.

The term salesperson covers a wide spectrum

of positions from:

Order taker (department store salesperson)

Order getter (someone engaged in creative selling)

Missionary salesperson (building goodwill or educating

buyers)

Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether: face to face,

by telephone,

through video conferencing,

or by other means.

Personal selling is effective because salespeople can: probe customers to learn more about their problems,

adjust the marketing offer to fit the special needs of each customer,

negotiate terms of sale, and

build long-term personal relationships with key decision makers.

Sales Force Serves as a Critical Link

Between a Company and its Customers Since They:

Represent Customers to the Company to Produce

Customer Satisfaction

Represent the Company to Customers to Produce

Company Profit

Flexibility

Identify best

prospects

Adapt to situations

Engage in dialogue

Builds Relationships

Long term

Assure buyers receive

appropriate services

Solves customer’s

problems

Can not reach mass

audience

Expensive per contact

Numerous calls

needed to generate

sale

Labor intensive

Order taking

Routine

writing up orders

checking invoices

assuring prompt order

processing

Suggestive selling

Order getting

Seeking out customers

Creative selling

Pioneering

Account management

Missionary Detailer

Goodwill

“Closers”

• Cross-functional

• Account service rep

Step 1. Prospecting and

Qualifying Identifying and Screening For Qualified Potential Customers.

Steps in the Selling Process

Learning As Much As Possible

About a Prospective Customer

Before Making a Sales Call.

Step 2. Pre-approach

Step 3. Approach Knowing How to Meet the Buyer

to Get the Relationship Off

to a Good Start.

Step 4. Presentation/

Demonstration

Telling the Product “Story”

to the Buyer, and Showing the

Product Benefits.

Steps in the Selling Process

Step 5. Handling Objections

Step 6. Closing

Step 7. Follow-Up

Seeking Out, Clarifying, and Overcoming

Customer Objections to Buying.

Asking the Customer

for the Order.

Following Up After the Sale to

Ensure Customer Satisfaction

and Repeat Business.

Alternative Steps:

Find ’em

Grab ‘em

Show ‘em

Answer ‘em

Sell ‘em

Keep ‘em

Identify and Qualifying Prospects

Prospecting: Identifying likely

new customers

Leads

Qualifying: Evaluating a

prospect’s potential

Creative Selling Process

Approaching the Prospect

Contact

Rapport

“Only one chance to make a

first impression”

Sales Presentation

Persuasive communication

Attention

Interest

Desire

“Tell the product’s story”

Handling Objections

Questions

Reservations

Understand Concern

Counterarguments

Acknowledge concern

Clues to process

Closing the Sale

Closing signals

Trial close

Ask for the sale

Following Up

Commitments met

Shipment

Performance

Reinforce relationship

Satisfied customers rebuy

& recommend

Creative Selling Process

Planning Organizing

Directing Controlling

Setting

objectives

Organizing

activities

Recruit,

select,

train,

develop,

manage, &

motivate

Motivate,

evaluate,

& control

Sales Territory:

Geographic divisions

Customer types

Product lines

Selling task

Sales Rep Sales Rep Sales Rep Sales Rep

Area Sales Manager

Area Sales Manager

Area Sales Manager

Area Sales Manager

Zonal Sales

Manager Zonal Sales

Manager

HOS

New Account

#1

New Account

#2

Existing

Account #1

Existing

Account #2

New Accounts

Manager

Existing Accounts

Manager

HEAD OF

SALES

Sales Rep

Eastern Region

Sales Rep

West’n Region

Sales rep

Eastern Region

Sales Rep

West’n Region

Snack Foods

Sales Manager

Beverages

Sales Manager

Head Of

Sales

Recruiting and selecting

Training & develop

Compensating

• Motivating

Straight

salary or

wage

Salary plus

commission

Straight

commission

Commission

with draw

Quota-bonus

plan

Required reports

Measurement against

plan or sales

standards

Expense control

Productivity

New account

development

Kickbacks, bribes and

“gifts”

Price discrimination

Cheating on expense

accounts

Misrepresentation

Distribution Channel Design

and Management

The major purpose of marketing is to satisfy human needs by delivering products of various types to buyers when and where they want them and at a reasonable cost.

The “when and where” is the function of Distribution

A set of interdependent organizations

(intermediaries) involved in the process of making

a product or service available for use or

consumption by the consumer or business user.

Marketing Channel decisions are among the most

important decisions that management faces and

will directly affect every other marketing

decision.

The use of intermediaries results from their greater efficiency in making goods available to target markets.

Offer the firm more than it can achieve on it’s own through the intermediaries: Contacts,

Experience,

Specialization,

Scale of operation.

Purpose: match supply from producers to demand from consumers.

PRODUCER

CONSUMER

DISTRIBUTION

Distribution Channel Functions

Ordering

Payments

Communication Transfer

Negotiation

Financing Risk Taking

Physical

Distribution

Information

ANUFACTURER ONSUMER

HOLESALER

ETAILER

GENT

Direct

Wholesaler

Agent

Infomediaries & Vertical Exchange

Conventional Distribution Channel vs.

Vertical Marketing Systems Vertical

marketing channel

Manufacturer

Retailer

Conventional marketing channel

Consumer

Manufacturer

Consumer

Retailer

Wholesaler

Wh

ole

sa

ler

Types of Vertical Marketing Systems Corporate

Common Ownership at Different

Levels of the Channel

Contractual Contractual Agreement Among

Channel Members

Administered Leadership is Assumed by One or

a Few Dominant Members

Corporate systems - total ownership

• Administered - strong leadership

• Contractual - legal relationships

Determining the structure

Marketing mix strategy

Organizational resources

External environmental factors

Market characteristics

Consumer preferences and behavior

The nature and availability of Intermediaries

Other environmental factors

Lot size

Waiting time

Spatial convenience

Product variety

Service backup

Intensive

Distribution

Exclusive

Distribution

Selective

Distribution

Distribution

Intensity

Seeks to obtain

maximum product

exposure at the retail

level

Producer

Retailer Retailer Retailer

Retailer

Retailer Retailer

Retailer

Retailer

Retailer Retailer Retailer

Retailer

Retailer Retailer Retailer

Selective Distribution

Product is sold

in a limited

number of

outlets

Producer

Retailer Retailer Retailer

Retailer Retailer Retailer

Product is sold in

only one outlet in

a given area

Producer

Retailer

Selecting Channel Partners

Reward or Coercive

Power

Legitimate Power

Economic Power

Managing the Channel of Distribution Channel Leader Power

Distribution Channels & the Marketing Mix

Materials Handling Moving Products Into,

Within, and

Out of Warehouses

Warehousing Number Needed

Where What Type

Inventory Control

When to order How much to order

Order Processing Received

Processed Shipped

Physical DistributionFunctions Transportation

Rail, Water, Trucks, Air, Pipeline,

Internet

Rail Cost-effective for shipping bulk products,

piggy-back, fishyback, birdyback.

Water Low cost for shipping bulky, low-value,

non perishable goods, slowest form.

Truck Most important carrier for consumer

goods, flexible.

Air High cost, ideal when speed is needed or

distant markets have to be reached

Pipeline Carry petroleum based products,

very low cost, requires little energy.

Internet Web sites have products available, used

especially for services.

Cooperation

• Conflict

• Power – Coercive

– Expert

– Legitimate

Prospects

of

Destructive

Conflict

Importance of threatened

channel in terms of current or

potential volume or profitability

High Low

High (FIRE) Act to avert or address

conflict

Allow threatened

channel to

decline

Low

(Smoke)

Look for opportunities

to reassure threatened

channel and leverage

your power

Do nothing

First, are the channels really attempting to

serve the same end users?

Second, do channels mistakenly believe

they are competing when in fact they are

benefiting from each other's actions?

Third, is the deteriorating profitability of a

griping player genuinely the result of

another channel's encroachment?

Fourth, will a channel's decline necessarily

harm a manufacturer's profits?

WHEN TWO OR MORE CHANNELS TARGET THE SAME

CUSTOMER SEGMENT

Differentiate the Channel offer

Define Exclusive Territories

Enhance or Change the Channels

Value

CHANNEL ECONOMICS DETERIORATE Change the channels economic formula:

(Grant rebates if an intermediary fulfill certain requirements; Adjust margins between products to support different channel economics; and Treat channels fairly to create level playing field)

Create Segment Specific Programs (certain services not available via direct channels)

Complement value proposition of the existing channel by introducing a new channel

Foster consolidation among intermediaries in a declining channel

THREATENED CHANNEL STOP PERFORMING

OR RETALIATE AGAINST THE SUPPLIER

Leverage Power (eg. Strong Brand) against the channel to prevent retaliation

Migrate volume to winning channel

Back off

Reverse distribution

One Nestle Distributor

One thousand retailers

OK

Difficult

• Ethical, Political, &

Legal