What Marketing Is?

Meeting Needs Profitably

Marketing is an organizational function and a set
of processes for creating, communicating and
delivering value to customers and for managing
customer relationships in a way that benefit the
organization and its stake holders
The aim of marketing is to know and understand
the customer so well that the product or service
fits him and sells itself

Basis of marketing

Exchange: Value creating process

At least 2 parties
Each party has something of value to other
Each is capable of communication and delivery
Free to accept or reject the offer
Each party believes it is appropriate to deal

Transaction: Trade of values between two or more

parties
Transfer

Value

Value= Benefits/Cost

(Functional+emotional)
=------------------------------------------------------------(Monetary
costs+time
costs+energy
costs+Psychic costs)

Introduction to Sales
management

Coverage:
Evolution
Concepts
Sales management practice trends
Sales management Process

Salespersons Position

(HBR-Mar-Apr 1961,p.114, The Mystique of super salesmanship, McMurry R.N)

Predominately to deliver a product :milk ,bread, gas

Predominately an internal order taker: counter sales clerk
Predominately an internal order taker but works in field: pizza boy
Not expected/permitted to take an order but is called only to build
goodwill or to educate: medical representative
Emphasis is placed on technical knowledge: engineering
equipment
Which demand creative sale of tangible products: vacuum
cleaner
Which require creative sales of intangibles: insurance,
advertising, education

Orientation towards Market

Production Concept (Widely available and inexpensive)

Product Concept(focus on quality/performance)
Selling Concept(consumers and businesses need
coaxing)
Marketing Concept(customer centered-sense and
respond)
Customer Concept(customer profile , customer life time
value and customer loyalty)
Societal Marketing(humanistic marketing/ecological
marketing)

Marketing vs. Selling

Selling focus on need of seller, marketing need of the

buyer.Selling is preoccupied with sellers need to convert
his product into cash, marketing is preoccupied with the
idea of satisfying the needs of customers by means of the
product and the whole cluster of things associated with
creating, delivering and finally consuming it.

Reactive Marketing Orientation vs. Proactive Marketing

Orientation

Selling vs. Marketing

Emphasis on product
Manufacture-Sell
Sales volume oriented
Based on needs of
seller
Short term
Cost decides price
Customer is viewed as
the last link

Emphasis on customer needs

Determines customer needs and
how to deliver a product to
satisfy needs
Profit orientation
Based on need of the buyer
Long term
Consumer decides price, price
decides cost
Customer as first link

Sales Management (Evolution)

Pre Industrial Era
Bronze age (wooden box, 26 inches, compartments having
axe, sword blades, buttons)
Roman meaning of sales person is cheater, Mercury God of
cunning and barter- patron deity of merchants and traders
Industrial Revolution-1760 (supply exceeds demand)
Father of modern sales management- John Henry Patterson
(National Cash Registry) (Thomas J. Watson trained by Patterson
later founded IBM)
Modern Selling Techniques focus on retaining the customers,
improve productivity and efficiency of selling approach

Evolution of Personal Selling Strategies

Persuasion
Negotiation
Consultative
Business Management
Partnership Strategies

Sales Management Concepts

Objectives of Sales management
Sales Volume
Contribution to profit
Continuing Growth
Primary goal of Marketing department is to position and
differentiate a product so as to pull customers to the firm
Sales Department has always attempted to sell and push the
products through the channels
American Marketing association Sales management meant the
planning, direction, and control of personal selling, including
recruiting, selecting, equipping, assigning, routing, supervising,
paying and motivating as these tasks apply to personal sales
force

Sales management Trends

Traditional face to face has become one key selling options
In modern concept the personal selling includes

Telemarketing
Key Account management
Team selling
Independent representatives
Part- time sales force
Network marketing
Net marketing

Technology Base: ERP(SAP) and Sales automation packages

Sales Management Process

Formulation of a strategic Sales Management program: should

consider the environmental issues affecting the business. It should
organize and plan the companys overall personal selling efforts and
integrate these with the other elements of the firms marketing
strategy
Implementation of a strategic Sales Management program: Involves
selecting appropriate sales personnel, training them, leading them
and motivating them, designing and implementing of policies and
procedures that will direct the efforts of the salespeople towards
achieving corporate objectives
Evaluation and control of Sales Force Performance:Developing
methods and practices for monitoring and evaluating the individual
and group sales force performance. This helps in taking corrective
steps either in formulation or implementation

Sales Management Functions

Account Management Policy
Sales Force Organization
Sales planning, Forecasting and Quota Setting
Sales force deployment, territory design and
route planning