B2B MARKETING
Business Marketing
Communications :
Managing the
Personal Selling
Function
INTRODUCTION
“The Customer is the
strategy”
-John
Chambers(President &
CEO of CISCO)
Importance of Personal
Selling
Business Markets v/s
Customer Markets
Lead role of the
salesperson
Execution of Sales
Strategy
RELATIONSHIP SELLING
Relationship Marketing
- Selling Center “initiate
and maintain
relationships with industrial customers”
- Buying Center “participate
in the purchasing
decision and share goals and risks of that
decision.”
(* Ref:Diagram)
Relationship quality
- Trust in the salesperson.
- Satisfaction with the salesperson.
Relationship Mgmt. Process in Business
Marketing
FORMS OF SALES ORGANIZATION
IN BUSINESS MARKETING
GEOGRAPHICAL ORGANIZATION
PRODUCT ORGANIZATION
MARKET CENTERED
ORGANIZATION
GEOGRAPHICAL ORGANIZATION
The most common form of sales organizarion.
This method reduces travel distance & time
between salespersons & customers, thus
contributing to cost reduction.
It’s disadvantage of the geographical sales
organization is that each salesperson must be
able to perform all of the selling tasks for all of the
firm’s products and for all customers in a
particular territory.
Another disadvantage is that the salesperson has
substantial leeway in choosing which products
and customers to emphasize.
PRODUCT ORGANIZATION
Here salesperson specialize in relatively narrow
components of the total product line.
A prime benefit of this approach is that it enables
the sales force to develop a level of product
knowledge that enhances the value of the firm’s
total offering to customers.
Here the drawback is the cost of developing and
deploying sales force is high.
MARKET CENTERED
ORGANIZATION
It involves learning the specific requirements
of a particular industry or customer type and
to mould the organization to suit those needs
and types.
In such an organization the salesperson is
better prepared to identify and respond to
buying influentials.
Traditional Selling Versus Key
Account Selling
Key Account Selling
Traditional Selling Focus Focus
Sales Varies Large volume of purchases by
the customer, often across
volume multiple business units of the
Core product/service seller.
Nature of
Product Core product/service plus
customized applications and
Short- term value-added services.
Time
Lower prices and higher Long-term
Benefits quality
Lower total costs Broader set
Information Limited : Narrow focus on of strategic benefits
price and product features.
Extensive : Broader focus as
Sales Force Maximize revenue satisfied firms share strategic goals
Objective Customers
Become preferred supplier
Lower customer firm’s total
costs Enhance learning in the
relationship
Isolating the Account
Management Process
What makes them successful?
Building internal relationships
Forgingrelationships with customer
organization
Aligning and crafting
Enhanced internal reputation
Account Management success
Building Internal Relationship
Forging
Relationship Within the Customer
Organization
Managing the customer Engagement Process
Aligning and Crafting
Enhanced Internal Reputation
SALES ADMINISTRATION
➢ Recruitment & Selecting Sales Persons
➢ Training,
➢ Motivating,
➢ Supervising,
➢ Evaluating
➢ Controlling the Sales Force
SALES ADMINISTRATION
Recruiting and Selecting:
Done by?
Careful selection is important for two reasons:
Substantialcosts involved.
Mistakes are costly and detrimental to customer relations
and sales-force performance.
Trade-offs
Experience v. inexperience
Training:
Principalmethods used are on-the-job training,
individual instruction, in-house classes, and external
seminars.
Popular training techniques include instructional
videotapes/DVDs, lectures, roll-playing exercises,
slides, films, and interactive computer programs
SALES ADMINISTRATION
Motivation:
“amount of effort salesperson desires to expend on
each of the activities or tasks associated with his or
her job.”
Two types of rewards
• Intrinsically mediated rewards
• Extrinsically mediated rewards
SALES ADMINISTRATION
Job performance
Motivation
Aptitude
Role perception
Evaluation & Control
“Monitor and control salesforce to see if objectives
are being met.”
Performance measures
Behavior based
Outcome Based
Setting performance standards
