Chapter 4 Sales settings

Table 4.1 Forces affecting selling and sales management

Strategic customer management Intelligence: enhancing customer knowledge (value/identifying need/ ….) Interface: Customer relationship management Integration: Sustainable point of value delivery

Sales Channels Physical distribution management (PMD) Sales Order processing Material handling Warehousing Inventory control Transportation Packaging Channels of distribution Sales

Selecting Sales Channels The market Channel costs The product Profit potential Channel structure Product life-cycle Non-marketing factors

Characteristics of Sales Channels Direct Selective

Characteristics of Sales Channels Intensive Exclusive

Type of Products Job production Batch production Flow productions An item is produced for individual customer requirement Batch production A number of products are made at the same time, but not on a continuous basis Flow productions Production of identical products Process production Raw materials come into manufacturing process and finished product emerge at the end

Selling for Resale Multiples Variety chains Co-operative societies Department store Independence Mail order Direct selling

Franchising From manufacturer to retailers From manufacturer to wholesalers From wholesalers to retailers Service firm sponsored franchises to retailer

Franchising Arrangements Franchisor offers expert advice on such matters as location, finance, operational matters and marketing. Franchisor promotes the image nationally or internationally. Many franchise arrangements have a central purchasing system. The franchise agreement provides a binding contract to both sides. The franchisor often provides initial start-up and then continuous training to the franchisee. A franchise arrangement normally requires the franchisee to pay a royalty or franchise fee to the franchisor.

Table 4.2 Characteristics of services and products

Seven Ps’ of Service Marketing

Sales Objectives: Sales Promotions: Techniques Cover: encouragement of repeat purchases building of long-term customer loyalty encouragement of consumers to visit a particular sales outlet building up of retail stock levels widening or increasing the distribution of a product or brand Sales Promotions: price reductions vouchers or coupons gifts competitions lotteries cash bonuses Techniques Cover: consumer promotions trade promotions salesforce promotions

Figure 4.1 A model of the exhibition communication process

Setting of Objectives Define the market Define the value of potential purchases Define the status of contact at whom to aim Define the preference towards company products Define the communication level at which to aim

Exhibition Products on show will depend upon the target market Literature should not be on a self-service display Graphics should include at least a display board featuring the product literature An office or interview room can take up a lot of expensive display space Refreshment facilities on the stand are good attractors An area should be designated for storage An expensive, eye-catching stand can be a double-edged weapon

Public Relations

What public relations is not PR is not free advertising. Advertising complements selling. PR is informative, educational and creates understanding through knowledge. PR is not propaganda. Propaganda is designed to indoctrinate with the aim of attracting followers. PR is not publicity. Publicity is a result of information being made known.

Objectives of Public Relations 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 reward key people with recognition bring about favorable legislation