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

4.1
ENVIRONMENTAL AND
MANAGERIAL FORCES THAT
IMPACT ON SALES

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.4

 Behavioural Forces
(a) Rising consumer and organisational buyer
expectations
 Raising the bar regarding Quality, Customer Service and Value
 Sales efforts must be fine tuned with continuous improvement
 Technological advances have created new higher customer
expectations and salespeople must work cross-functionally
 Due to Corporate Scandals customers require more transparency
and companies should work towards ethical selling
(b) Customer avoidance of buyer–seller negotiations
 Some companies train their salesforce as Negotiator with high
pressure selling-This results in displeasure
 While some companies use fixed price, no pressure and full
book value for the trade-in approach
 E.g.: Fixed price by Saturn & Daewoo
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.5

 Behavioural Forces
(c) Expanding power of major buyers
 A growing dominance of major players (e.g. Retailers)
 Demand and get special services, including special customer
status (key account management), just-in-time inventory control,
category management and joint funding of promotions
(d) Globalisation of markets
 Major challenge is the coordination of global sales teams that
require special terms of sale, technical support, pricing and
customization of products
 Cultural and ethical issues must also be considered
 E:g- Coca-Cola, Colgate-Palmolive, Avon, 3M, P&G, Samsung, Siemens or
P&G
(e) Fragmentation of markets
 Driven by differences in income levels, lifestyles, personalities,
experiences and race, markets are fragmenting to form market
segments David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.6

 Technological forces
(a) Sales force automation
Salesforce automation includes tablets, laptop and palmtop
computers, mobile telephones, fax, email and more advanced
sales software which aid such tasks as journey and account
planning, and recruitment, selection and evaluation of sales
personnel
Use of EDI, Videoconferencing and CRM Technology
(b) Virtual sales offices (blackberry’s, car or home offices)
Allowing sales personnel to keep in contact with head office,
customers and co-workers by sitting in a home or in a car
(c)Electronic sales channel
Internet
E-Commerce
Teleshopping- Use of Cable Television

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.7

 Managerial forces
(a) Employing direct marketing techniques
Computer Stations (Kiosks) have reduced the need for Salesforce
Use of Telemarketing and Direct Marketing as selling strategies
(b)Improving co-operation between sales and marketing
Use of intranets between employees, suppliers and customers
enhances information exchange
Updates field salesforce about product specifications, competitor
news and price updates….. It also links sales and marketing
(c)Encouraging salespeople to attend training programmes
and acquire professional qualifications
Chartered Institute of Marketing (CIM) offers qualifications at
introductory, professional and postgraduate levels in marketing
with the aim of enhancing sales professionalism, skills and
competencies
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.8

Strategic customer management

 These forces have changed the role of an organization to
Strategic Customer Management from an order taker to
order getter
 In contemporary view selling is considered as Core
Function where it is integrated with marketing in designing
and implementing CRM Strategies
1. Intelligence: Enhancing customer knowledge to add
value to customer relationship
 Works best in B2B by identifying new opportunities in
customer’s markets
 Customer Success Factor
 Johnson Controls in the United States designed
seats and electronic system for Ford’s F-Series
Trucks
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.9

Strategic customer management

2. Interface: Refocusing the salesforce efforts into the
management & exploitation of critical interfaces that affect
customer value
 Traditional salesperson and sales management processes
integrate with the new challenges of doing business
 US firm Western and Southern Financial Group has
added call center and online sales operations to its field
salesforce of 2,200 representatives
3. 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
 Need for cross-functional and cross-border integration
 For Example: Lack of coordination between sales and
supply chain can cause problems
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.10

4.2
SALES CHANNELS

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.11

Logistics or Physical Distribution

Management (PDM)
 Logistics means the effective and economic planning,
implementation and control of the physical flow of materials
in their unprocessed state through to finished goods from the
point of origin to delivery to the end-consumer
 Logistics conventionally starts with customers and works
back towards the original source of supply
 Logistics Mix consists
 Order Processing
 Material Handling
 Warehousing
 Inventory Control
 Transportation
 Packaging
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.12

Channels of Distribution
 Marketing channels are determined by company policy
and this determines how the salesforce should be
organized
 A sales channel is the route that goods take through
the selling process from supplier to customer
 Direct Sales Channel: Where goods sold are
incorporated into a manufacturing process
 Indirect Sales Channel: A manufacturer sells to a
wholesaler or agent
 Breaking the Bulk
 Channel management is a key role of the sales
manager
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.13

Appraising Sales Channels

The Market:
 Market must have potential for purchase
 Channel compatibility with similar products and norms in
the marketplace is important
 Companies must maintain the status and image
associated with the channels
Channel Costs
 Generally, short channels are the costliest
 It increases market share and profits but can increase
costs of transportation, warehousing and sales force
management
 It also provide effective control

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

Appraising Sales Channels

The Product
 Longer Cannels are used for low-cost, low-technology items with
narrow product lines
 Use of complementary Products
 Shorter channels for complex products with wider product lines
Profit Potential
 A balance must be struck between channel expense, profit and
gross margins
 Shorter Channels will have higher profit margins but channel
costs will be higher and Vice Versa
Channel Structure
 Choice of distributive intermediaries is governed by the members
and characteristics (Size etc.) in that channel
 Difficulty or Easiness of entry of channels by using a Push or
Pull Strategy

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

Appraising Sales Channels

Product life-cycle
New Product needs intensive distribution
As it established then based upon after sale service
criteria it requires selective distribution
Non-Marketing Factors
Relate to the amount of finance available
Innovative products are sold through middlemen due to
financial constraints
These factors also employ when selling internationally
(Exporting) by employing any foreign agency without its
commercial standing


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

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 4.17

4.3 Industrial/Commercial/Public Authority Selling

 Fewer customers
 Concentrated markets
 Complex purchasing decisions
 Long-term relationships
 Reciprocal trading
 Types of production
 This relates mainly to industrial sales
 The type of production operated by the firm to
which the salesperson is selling can determine
the type of selling approach to be used
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.18

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
(chemicals, brewing, glass process)

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.19

Selling for Resale

There are a number of different types of retailing:
1. Multiples: Retail organization with 10 or branches
and each selling a similar range of merchandise
 Supermarkets selling FMCGs tend to fall into this
category
 For Example, TESCO
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
 The movement can be traced back to 1844 when
it started in Rochdale
 For Example: CSD in Pakistan
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.20

Selling for Resale

4. Department Store: Store with five or more
departments under one roof and at least 25
employees, selling a wide range of commodities
 Debenhams, House of Fraser
5. Independents: Traders who own their own outlets
 Retail Buying Association- Such arrangements are
termed voluntary groups (individual wholesaler-
sponsored) or voluntary chains (group wholesaler-
sponsored)
 They are also termed ‘symbol shops’
 Many franchised restaurant chains fall in this
category (e.g. Nandos and Pizza Express)

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.21

Selling for Resale

6. Mail order: Through catalogues like
 Also carried out by commodity specialists dealing in
items such as gardening produce, government
surplus and hi-fi
 Selling through Sunday color supplements
 For Example: Avon & Marry Kay
7. Direct selling: Eliminating a middleman
 Many of the party plan companies used this rationally
 Buying from a ‘travelling shop’ was popular after the
Second World War
 Now a new trend to sell Bespoke Items through this
medium

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.22

Franchising
 A contractual systems of franchising
 It is a corporate vertical marketing system (VMS)
 Franchising was originally a British development
under the ‘tied public house’ system
 Categories of Franchising
 From manufacturers to retailers
 From manufacturers to wholesalers
 From wholesalers to retailers
 Service firm sponsored franchises to retailers

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.23

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 4.24

Selling Services
 In Britain, the service sector has grown tremendously
over recent years, so much so that it is now primarily a
service rather than a manufacturing economy
 Better technology has assisted the development and
provision of a more comprehensive range of services
 Public services have become more marketing
orientated and accountable
 Due to abstract nature of services these are hard to
sell
 Service providers must be highly trained in sales
techniques and negotiations
 Image of the service organizations is also important
 Trust is essential in services marketing
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.25

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
planned & managed)
• Can not stock
services
• Physical evidence
• Perishable (physical facilities)

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.26

Sales Promotions
 Sales promotions include techniques that organizations
can use as part of their marketing effort
 Following are objectives of Sales Promotions

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.27

Sales Promotions
1. Consumer Promotions: These are referred to as
pull techniques, since they are designed to stimulate final
demand and move products through the sales channel
with price reductions
a) ‘X pence off’ marked prices
b) BOGOF
c) Price-Off Coupons
d) Introductory discount price offers on new products
Premium Offers: Premium offers are techniques that give
extra value to goods or services in the short term
 Self-liquidating premiums
 On-pack gifts (May be related to product or not)
 Continuities: Sets of merchandise that can be collected through
a series of purchases
 Coupon Plans: Use of Vouchers and Trading Stamps
 Free Samples: Attached to brand related products
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.28

Sales Promotions
2. Trade Promotions: The aim is usually to push
products through the channel towards the customer
 Incentives are offered through extra rewards such as
discounts, increased margins on sales, dealer
competitions, exhibitions, provision of demonstrators and
free holidays
 It has also a number of disadvantages
 Business Gifts are also used but these must be different
from trade promotions
 The objectives of retailer–distributor promotions are:

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.29

Sales Promotions
3. Personnel Motivations
 These are promotions to the salesforce, but some apply to
distributors and retailers
 Sales Incentive Schemes based upon rewards are offered
on individual or group basis based upon specific
objectives
 competitions tend to be used for group or area salesforce
motivation
 Typical objectives of such schemes include:

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.30

Sales Promotions
3. Personnel Motivations
 An incentive programme runs on average for between
two and six months
 Scoring or measuring performance may be based upon
value or unit sales
 In order to overcome territorial differences, quotas may
be established for individual regions, areas or
salespeople
 Points, stamps, vouchers, etc. may also awarded
 Another form of motivation is the award of recognition in
the form of a trophy or ‘salesperson of the year’ award

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.31

Exhibitions
 Exhibitions related to sale settings and objective is to build
up goodwill and preparation for future sales
 At a simple level event management concerns activities
that promote the organization, but it is often an excuse to
provide hospitality to customers
 Corporate Hospitality: The entertaining of clients by
companies in order to promote business, especially at
sporting or other public events
 This can take the form of the provision of seats or a box for invited
guests at an event such as a Test Match
 Conferences can be sponsored that reflect the interests of
the sponsoring company, but provide a more serious forum
for participants
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.32

Characteristics of Trade Exhibitions

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.33

Model of Trade Exhibitions

 Different type of Communication is required for different
types of products
 Selling feature or Unique Sales Proposition (USP)
 The different methods of communicating the USP of
different types of product are termed Communication
Strata
 Exhibitions must be conducted based on specific objectives
 Direct Mail, Telephone, A personal sales call before the
event or advertisement in the technical or trade press can
be used as a method to attract visitors
 A buffet, give-away, advertising material and film and
seminars at exhibitions can also be used to attract visitors

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.34

An Exhibition Stand
An exhibition stand must be
1.Products on show will depend upon the target market
2.Literature should not be on a self-service display
3.Graphics should include at least a display board featuring
the product literature
4.An office or interview room can take up a lot of expensive
display space
5.Refreshment facilities on the stand are good attractors
6.An area should be designated for storage of coats,
briefcases, literature, materials, etc.
7.An expensive, eye-catching stand can be a double-edged
weapon
Exhibitions can be a powerful sales tool when salespeople from
different backgrounds can effectively communicate USP
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.35

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 4.36

Public Relations
Public Relations: PR practice is the deliberate, planned
and sustained effort to establish and maintain mutual
understanding between an organization and its public
It has wider scope than sales and marketing and also has
strategic applications
Types of Publics: The community, employees,
government, the financial community, distributors,
consumers, opinion leaders and media publics
A good and valid PR must develop Corporate Identity

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.37

Objectives of 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
• Dissolve Or Block Union Problems
• Minimize Competitor Advantage While You Catch Up
• Open A New Market
• Launch A New Product
• Bring about favorable legislation
• Change perceptions about the company
• Alter the image that the company projects about itself
David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.38

Public Relations
What public relations is not
1.PR is not free advertising
2.PR is not propaganda
3.PR is not publicity

Skills and Attributes Required for a PR Manager

● Personal Integrity;
● Communications Skills;
● Organizational Ability;
● Strong Personality;
● Team Player
● Sound Judgement

David Jobber and Geoff Lancaster, Selling and Sales Management, 8th Edition © Pearson Education Limited 2009
Slide 4.39

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
Slide 4.40

The use of public relations consultancies

 Better PR implementation can be formed as
an interaction between In-House PR
Department and PR External Consultancies
1. Freelance writers/consultants
2. PR departments of advertising agencies
3. PR subsidiary of an advertising agency
4. Independent PR consultants
5. PR counsellors

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