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Unit 2 Introduction To Sales and Marketing-1

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Unit 2 Introduction To Sales and Marketing-1

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Brian Mulenga
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© © All Rights Reserved
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Nsanje Hills Training Institute [Duly registered with TEVETA: No.

TVA/1151)]
In partnership with Purdue University, USA
---------------------------------------------------------------------------------------------------------------------------------

Sales and Marketing Training Course

“The best idea for any organization is the idea of how to serve customers
better”

Training Module Notes

© Copyright 2023
No part of these notes may be reproduced or copied, nor may these notes be loaned, nor
transmitted to any other person, without the express written permission of Nsanje Hills
Training Institute (NHTI)
UNIT 2: INTROCTION TO SALES AND MARKETING

SALES AND MARKETING

There is one consistent misunderstanding that people encounter in business; they don’t
differentiate between marketing and sales within an organization. Some think they are basically
the same thing, which is a mistake. This mindset is as old as business itself; however, there some
simple ways to define what classifies as “sales” and what is considered “marketing.”

As you can see in the figure above, sales and marketing are two pieces of a puzzle which need to
work together or joined together. The goal of marketing is to determine the target audience for
the product then create awareness and stimulate interest. The goal of sales is to convert interested
parties into buyers.

MEANING AND DEFINITION OF MARKETING

Marketing is a form of communication between a business house and its customers with the goal
of selling its products or services to them. Goods are not complete products until they are in the
hands of customers. Marketing is that management process through which goods and services
move from concept to the customer. Marketing has less to do with getting customers to pay for a
product as it does with developing a demand for that product and fulfilling the customer’s needs.

According to the American Marketing Association (AMA) Board of Directors, Marketing is


the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.
Dr. Philip Kotler defines marketing as “the science and art of exploring, creating and delivering
value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and
desires. It defines, measures and quantifies the size of the identified market and the profit
potential. It pinpoints which segments the company is capable of serving best and it designs and
promotes the appropriate products and services.”

Thus, marketing refers to all the activities involved in the creation of place, time, possession and
awareness utilities and beyond.

If you read the definition closely, you see that there are four activities, or components, of
marketing:
1. Creating: The process of collaborating with suppliers and customers to create offerings
that have value.
2. Communicating: Broadly, describing those offerings, as well as learning from
customers.
3. Delivering: Getting those offerings to the consumer in a way that optimizes value.

Exchanging: Trading value for those offerings

MARKETING CONCEPTS- TRADITIONAL AND MODERN


Concept is a philosophy, attitude, a line of thinking, an idea or notion to relating any aspects of
divine and human creations. The philosophy of an organization in the dynamic creation of
marketing is referred to as a marketing concept. Thus, marketing concept is a way of life in
which the resources of an organization are mobilized to create, stimulate and satisfy the
consumer at a profit.

TRADITIONAL/ CLASSICAL CONCEPT


According to this concept, marketing consists of those activities which are concerned with the
transfer of ownership of goods from producers to consumers. Here, the role of physical
distribution and marketing channels is over emphasized. It refers to marketing as the process by

which goods are made available to ultimate consumers from their place of origin. The emphasis
of marketing is on sale of goods and services. Consumer satisfaction is overlooked.

MODERN CONCEPT
According to this concept, marketing is concerned with the creation of consumers. According to
the modern thinker Peter Drucker, Marketing is so basic that it cannot be considered as a
separate function. It is the whole business seen from the customers’ point of view…business
success is not determined by the producer but the customer.
Thus, the modern concept lays greater emphasis on customers and considers them as kings.
Marketing is not merely a physical process but is something beyond that. It is the managerial
philosophy which centres around the wants and desires of customers.

TRADITIONAL CONCEPT vs. MODERN CONCEPT

1. Traditional marketing starts from production and ends with sale but modern marketing
includes planning, product, price, promotion, place, people, after sale service etc.
2. Traditional marketing concentrate on favorable products, but modern marketing
concentrates on customer needs, wants and satisfaction.

3. In traditional marketing, only those products are sold which the producer produces. No
focus is laid on consumer preference. On the other hand, modern marketing indulge in
production only after analyzing consumer demands.

4. Traditional marketing is product and production oriented while modern marketing is


consumer oriented.

5. The target of traditional marketers was to earn maximum profit by maximizing sales. But,
the main motive of modern marketers is to earn profits through satisfaction of consumer
needs.

6. The principle of traditional market was “caveat emptor” i.e., “let the buyer beware”.
Whereas, the principle followed by modern market is “caveat venditor” i.e., “let the
vendor beware”.

SELLING vs. MARKETING

It is a common error committed when people say they are going for marketing when they
actually go to the market to purchase goods/ services. Well, it is simply buying from consumers’
end and selling from the sellers’ end. Marketing is a wider term than selling. Let us now see how
selling differs from marketing.
MARKETING SELLING

1. It begins before sale and continues after 1. It begins after production and ends with
sale the sale
2. It focuses on consumer needs. 2. It focuses on seller’s needs.
3. It has long term perspective aiming for 3. It has short-term perspective.
growth and stability 4. It is a routine day to day physical
4. It is a philosophy of business. process
5. Here, customer comes first, then 5. Here, product comes first, then
product customers
6. It has wider scope. 6. Its scope is narrower as compared to
marketing

Thus, from the above table the distinction of marketing from selling can be understood.

FUNCTIONS OF MARKETING
Marketing functions are those specialized activities that a marketer must perform in order to
identify and source potentially successful products for the market place and then promote
them by differentiating them from similar products. The important functions of marketing are
discussed briefly below:
1. Research & Development Function- A marketer has to carry out adequate research to
identify the size, behavior, culture, gender, demands etc. of the target market segment,
and then develop the products/services accordingly to meet and satisfy the needs of target
customers.

2. Buying Function- The marketing department has to assist the purchase and supply
department by sending specifications of the materials required so as to get timely and
quality materials for production.

3. Standardization & Grading- Standardization means setting quality standards to achieve


uniformity in the product. It provides consistent quality assurance to consumers. Grading
means classifying the product on certain accepted benchmarks or bases such as size,
quality etc. Through grading, the marketer can get higher price for quality product.

4. Packaging and Labeling- Packaging is traditionally done to protect the goods from
damage in transit and to facilitate easy transfer of goods to customers. But now it is also
used by the manufacturer to establish his brand image as distinct from those of his rivals.
Another activity involved with packaging is labeling. It means putting identification
marks on the package. Label is that part of a product which contains information about
the producer and the product.

5. Branding- It is the process of stamping a product with some identification name or mark
or a combination of both. Branding means giving a distinct individuality to a product.
Some popular brands are Airtel, Sony, Lux, Nirma etc.

6. Pricing- Determination of price of a product is an important task of a marketing


manager. Price is influenced by cost of product and service offered, profit margin desired,
prices fixed by rival firms, government policy, etc.

7. Promotion Function- The marketing manager must design adequate strategies to make
known to consumers about the availability of products in the market. Without this
function, products will remain in the hands of producers and will never reach the
consumers. Four important methods of promotion are advertising, personal selling,
publicity and sales promotion.
8. Physical Distribution- This function involves the activities which are necessary to
transfer ownership of goods to customers and also making available goods at the right
place and time.

9. Transportation- It provides the physical needs which facilitate the movement of


persons, goods and services from one place to another.

10. Warehousing- To meet the expected demands of consumers, goods are produced or
procured well in advance and stored in warehouses till they are transferred to customers.
Warehouses protect the goods from any damage which may be caused by any rodents,
moisture, sun, theft, etc.

11. Risk- taking function- Risks are involved in almost all levels of marketing process. Risk
taking in marketing refers to the financial risk that is inherent in producing and handling
goods, including the possible loss due to a fall in prices and the losses from spoilage,
depreciation, obsolescence, fire and floods etc.

12. Customer Support Services- This function relates to developing customer support
services such as after sales services, handling customer complaints and adjustments,
providing credit facilities, maintenance services, technical services etc. These services
provide maximum customer satisfaction and develop brand loyalty for a product.

All the above, and in some situations, more other functions are performed by the marketing
manager.

MARKETING MIX- THE 7 Ps of MARKETING

Marketing mix represents a blending of decisions in few areas for the satisfaction of the needs of
customers. E.J. McCarthy had formerly given four elements of Marketing Mix. These include:
(1) Product, (2) Price, (3) Promotion, and (4) Place or Physical Distribution. These elements are
popularly called the “four Ps of Marketing Mix”. As marketing became a more sophisticated
discipline, one more element was added to these 4 Ps- People. Later on two more Ps were added,
especially for the service sector, viz., Process and Physical evidence. . These elements are inter-
related because decisions in one area usually affect actions in the others. The blend or mixtures
of these elements are often referred to as Marketing Mix. It basically concentrates on the target
consumers. Let us have a brief discussion of the above mentioned elements-
MARKETING MIX

Product: It involves planning, developing and producing the right type of products and services
to be offered by the firm to the customers. It deals with the product range, design, durability,
branding, packaging, color and other features.

Price: A product is only worth what a customer is willing to pay for it. The marketing manager
must determine the price in such a way that it covers the cost of production and distribution of
the product and a reasonable margin of profit. Other variables influencing price are the price
fixed by competitors, government regulation etc. It is the only element of marketing mix that
generates revenue- everything else represents a cost.

Promotion: It deals with informing the customers about the firm’s product and persuading them
to purchase the same through personal selling, advertising, publicity and sales promotion.

Place or Physical distribution: It is concerned with making the product/service available to the
customers at the right place, at the right time and in the right quantity. The place where the
customers buy a product and the means of distributing the product to that place must be
appropriate and convenient to the customers.

People: It generally refers to the employees of the business organization who deal with the
customers.
DEFINITION OF SALES

Sales: The process of turning an interested prospect from a defined / target group into a
customer.

Sales refer to the exchange of a product, commodity, service or delivery for money. It involves
helping prospective clients or customers by listening to them and understanding their wants and
needs to find them what they’re looking for. Rather than persuading someone to purchase
something, selling is focused on meeting the needs of the customer objectively.

TYPES OF SELLING OR SALES STYLE

Since there are a variety of different types of sales professionals working in many industries,
their methods may vary depending on their personality, industry and product or service. The
different types of sales methods, or sales styles, are important for sales professionals as they are
the ways they complete sales and reach their professional goals.

As a salesperson or in case you manage a team of salespeople, it can be helpful for you to be
aware of different styles that will help you discover which methods work best for you.

The sale of a product or service can be exhibited in different ways, styles or approaches and due
to a wide variety of personality type not all sales style might fit every person. Effective sales
professionals understand their own strengths and weaknesses and adapt a sales style based on
what works for them.

The product being sold can also play a role in the sales style, as some products or services don't
need a lot of work from the sales professional, and others require more effort. Some salespeople
might use only one of these styles, while others might use multiples at once.

Here are some of the types of sales styles that you may encounter or use, however, this list is not
exhaustive.

Relationship building: The sales person or professional spends time getting to know the
customer and their needs. This might include a salesperson reaching out to a customer regularly
over the course of years, or it might just be creating a rapport with a customer who is in your
store for 15 minutes, this will depend on the industry one is working. Relationship building can
be particularly effective for those who don't want to sell aggressively or push their customers and
prefer a more subtle method.

Aggressive: The sales representatives try to make a sale by convincing customers why they
need a company’s products or how they could benefit. In some cases, aggressive sellers entice
customers with a limited-time sale. Aggressive selling is a good option for those who feel
confident in their ability to sell and who have customers who might be trying to manipulate the
situation or showing reluctance. It may not work with all customer types, but there are customers
that it can be effective with. Aggressive sales professionals sometimes get a bad reputation, but
the right person can use this style respectfully and helpfully.
Solution-based : This is a method where the salesperson focuses their pitch on the problems
the customer has, even if they're not aware of them, and how their product or service can resolve
those problems. This can be a good option for business-to-business sales, as often businesses
want to know how a product or service will make their lives easier. Solution-based salespeople
need to be extremely knowledgeable about the products they're selling. Solution-based requires
listening to the needs of the customer and understanding how your product can solve those
problems.

Challenger: Here the sales professional challenges the customer to compare the current way
they do business or live their life and the current products or services they use with how what the
salesperson is selling can help them. A sales person using this method needs to be
knowledgeable about the competitors they will face as well as how those competitors solve
problems and fulfill the needs of their customers. The goal of challengers is usually to take
business from competitors for their own company.

Competition-based: This is similar to a challenger, but they may feel they are in
competition in a variety of ways. A competition-based seller can be so focused on being the best
that they will do whatever it takes to make this sale and any others they need. Managers can
encourage competition-based selling through internal competitions and ranking their salespeople
based on the number or value of sales. For instance, competition within their own organization
might motivate a competition-based seller as well as competition from other companies

Product-oriented: A product-oriented salesperson shows their customers and clients what is


special and important about the product they're selling rather than using other sales techniques.
The focus is entirely on the product they are selling, how it works and what the benefits of it are.
It is important for product-oriented salesperson get to know their customer in order to understand
how their product can help the customer, while more focused on the product itself than the
customer and building a relationship.

Collaborative: In this approach a collaborative salesperson wants to work with their


customer or client to find the best option for them. They are less focused on one particular
solution or method and more concerned with how to collaborate with the customer in finding the
exact right solution. This method can be best when a company offers multiple tiers of a service
or product, as the varying features might have pros and cons for each customer. This method
somewhat combines solution-based and relationship-building styles, as the salesperson creates a
relationship and conversation with the customer to find a solution.

Need-oriented: Sales representatives who employ this technique get to know the needs of
their customers by asking them questions that allow them to present a solution in the form of a
particular product or service. As a salesperson or representative you listen carefully to exactly
what the customer or client is saying in order to find the right product or service for that need.
For instance, if a customer says they need a new vacuum that does well with pet hair, the sales
professional would help them find exactly that rather than working to convince them they need a
new automated vacuum with more features.

Hardworking: A hardworking salesperson is one that doesn't focus on just the big sales but
works hard every day to connect with as many customers or clients as possible in the hopes that
working hard can build the right sales numbers. While some sales professionals might
concentrate on selling more expensive products or services, a hardworking salesperson is willing
to make the effort to sell to every possible customer. A hardworking salesperson might use some
of the other styles, but they rely on their work ethic to reach their goals.

Transactional: This simple, short-term exchange gets the customer what they need. In many
cases, the customer already knows what they want to purchase. Rather than spending time
understanding a customer’s needs, the salesperson focuses on making a quick sale.

Social: Sales professionals target prospective customers through social media.

SALES ROLES

As a training Course in Sales and marketing, it is very important to know the type of roles
employers will consider and will find beneficial to their business. These may include roles that
involve direct interaction with customers or those involving product development or marketing.
Learning about all these types of jobs may help you decide which to apply for in the future. Here
are some of the sales roles employers are likely to hire or consider hiring and are found in
various sectors and industries:

Inside sales representative They are responsible for making initial sales offers to
prospective customers. They often have a broader product
or service offering than their outside counterparts and may
make multiple calls to the same customer base in a day.

Sales representative Sales representatives are responsible for making sales calls
to prospective customers. Some sales representatives may
also handle customer service and marketing tasks. Their
main goal is to sell as many products or services as
possible with the available budget. Sales representatives
often use their knowledge of the market and product or
service offerings to provide customers with a personalized
experience.
Marketing manager Marketing managers are responsible for developing,
retaining and expanding a market for the organization's
products or services by using a variety of strategies, such as
product launch and development, advertising campaigns
and customer service programs. They may lead a team of
their own and coordinate efforts with other departments,
such as sales, customer service and marketing. This may
involve creating marketing materials, such as video
advertisements, images and slogans.
Account manager Account managers follow up with clients and maintain
relationships by offering support and advice. They may
also be responsible for maintaining client files, and
preparing reports for management. Account managers may
also use their industry knowledge to recommend solutions
that help current and prospective clients.
Sales manager Supervise salespeople and help close deals with customers
by communicating a company's product or service benefits
to potential new clients. They may work on a team or
individually, depending on the company structure. Their
responsibilities include planning marketing campaigns,
organizing events, developing leads and setting goals for
salespeople under their supervision.

Field sales representative Field sales representatives, or outside sales representatives,


make sales presentations to prospective customers who
haven't reached the buying stage yet. They are generally
responsible for executing the company's strategy by
creating buyer awareness and selling products or services.
They may knock on customers' doors, make calls, or visit
businesses to increase awareness of their employer's
products or services.
Business development Responsible for attracting new clients by arranging
manager meetings with prospects, conducting research and
analyzing business opportunities. They usually work in
large organizations and coordinate efforts with a sales
representative or outside sales representative to arrange
presentations for potential clients. They may also manage
the overall sales strategy for their employer and create
plans for future business development.
Sales associate Sales associates are responsible for engaging customers in
a sales transaction. They accept payments, process orders
and answer questions about products and services. Sales
associates can often build rapport with customers,
understand their needs and match them to the right
products or services.
Technical sales engineer Technical sales engineers sell complex products or services
that require buyers to have a certain level of knowledge
about the company's offerings before making a decision.
This may involve demonstrating product features or
answering complex questions about the products or
services. They may use products or services themselves to
get a better understanding of how they work and how the
technology can apply to certain scenarios.
Product manager Research potential products or services by studying data to
assess the product's viability in the market. They also
determine which features to include in the product or
service and work with designers and engineers to ensure
that it's feasible. Once the product is available for sale, they
may lead the sales team to develop strategies to maximize
revenue
Sales director Supervise and manage a group of sales managers. They
ensure all company sales goals are met.

WHAT MAKES A GOOD SALESPERSON?

A good sales person must have some skills and qualities that help them succeed in sales roles.
Some of them may include the following:

 Empathy: When a salesperson displays empathy toward customers and clients, they’re
more likely to make the sale. This tactic shows understanding and helps establish trust.

 Determination: If a salesperson shows determination, it helps them accomplish their


goals and sales shares/quotas. This quality helps them stay focused on their duties and
makes them into a more goal-oriented salesperson, which leads to revenue for the
company.

 Confidence: When a salesperson believes in their skills, abilities and the products or
services they’re selling, they’re more apt to land a sale and make customers want to buy
more from them in the future.

It can be established here that salespeople are there to create value by understanding the needs of
their customers and then create solutions to meet those needs and adapt the offering or how they
present the offering so that it is easier for the client to understand and make the right decision.
The salesperson is also responsible for ensuring that the offering is implemented properly and to
the customer’s satisfaction, hence managing relationship and retaining customer, it about
“customers for life”.
Salespeople help in information gathering as they are boundary spanners, in that they operate
outside the firm and in the field, they are the first to learn about what competitors are doing and
to report back to about their competitors’ new offerings and strategies. Similarly, salespeople
interact directly with customers and, in so doing, gather a great deal of useful information about
their needs. The salespeople then pass the information along to their firms, which use it to create
new offerings, adjust their current offerings, and reformulate their marketing tactics.

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