Slide 4.

1
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
Sales settings
Chapter 4
Slide 4.2
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
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.
Objectives
Slide 4.3
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
As customers adjust to a changing environment,
so sales have to adapt to a variety of influences:
(a) rising consumer and organisational buyer
expectations (raising the bar)
(b) customer avoidance of buyerseller
negotiations (fixed price by Saturn & Daewoo)
(c) expanding power of major buyers (Retailers)
(d) globalisation of markets (Coca-Cola, Colgate-
Palmolive, Avon)
(e) fragmentation of markets (lifestyles, personality,
experiences & race)
Behavioural forces
Slide 4.4
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
Technological forces on selling and sales
management are three major forces at play:

(a) Sales force automation (laptops, palmtops, mobile
phones, faxes, etc.)

(b) Virtual sales offices (blackberrys, car or home
offices)

(c)Electronic sales channel (internet, ATM machines)
Technological forces
Slide 4.5
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
Managers can respond to the changes in the
environment by developing new strategies and
tactics to enhance sales effectiveness, including
the following:
(a) Employing direct marketing techniques (internet,
telemarketing, direct mail)
(b) Improving co-operation between sales and
marketing (intranets-linking employees,
suppliers & customers through their PCs)
(c) Encouraging salespeople to attend training
programmes and acquire professional
qualifications (Strategic customer management)
Managerial forces
Slide 4.6
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
Three activities to be performed

Intelligence: Enhancing customer knowledge to add
value to customer relationship
Interface: refocusing the management efforts into the
management & exploitation of critical interface that
affect customer value
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
Strategic customer management
Slide 4.7
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
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.
Characteristics of sales channels
Slide 4.8
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
1. J ob (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)
Types of production
Slide 4.9
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
There are a number of different types of retailing:

1. Multiples: retail organization with 10 or branches
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
4. Department store: store with five or more
departments under one roof
5. Independents: Traders who own their own outlets
6. Mail order: through catalogues like Avon & Marry Kay
7. Direct selling: eliminating a middleman
Selling for Resale
Slide 4.10
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
Selling Services
Transportation
Power
Hotels
Restaurants
Communications
TV & Radio
Banking
Insurance
Clubs

Repair & maintenance
Travel agencies
Accounting services
Business consultancy
Architectural
Cleaning
Library
Public authority services
Stockbroking

Slide 4.11
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
Special characteristics of service

Intangibility
Simultaneously
produced &
consumed
Not standardized
Can not stock
services
Perishable
3 further Ps of Services
People (frontline people
are the backbone)

Process (consistency &
quality must be well
planned & managed)

Physical evidence
(physical facilities)
Slide 4.12
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
Sales Promotions
Techniques cover

Consumer promotions

Trade promotions

Salesforce promotion
Sales promotion include

Price reductions
Coupons
Gifts
Competition
Lotteries
Cash bonuses
Slide 4.13
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
Figure 4.1 A model of the exhibition communication process
Slide 4.14
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
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;
Public relations (PR)
Slide 4.15
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
dissolve or block union problems;
minimise competitor advantage while you catch up;
open a new market;
launch a new product;
reward key people with recognition and
bring about favourable legislation.
Public relations (PR) (Continued)
Slide 4.16
David Jobber and Geoff Lancaster, Selling and Sales Management, 8
th
Edition Pearson Education Limited 2009
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.
Effective public relations