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Table of Contents
LO Subject
Table of Contents
Introduction
1.2 Compare Buyer Behaviour and the Decision Making Process in Different Situations
1.3 Analyse the role of sales teams within the marketing strategy
3.1 Explain How Sales Strategies Are Developed in Line with Corporate Objectives
3.3 Evaluate the role of motivation, remuneration and training in sales management
3.4 Explain how sales management organises sales activity and control sales output
References
Introduction
Personal selling is an important tool of any organisational marketing mix. According to
Kotler, Armstrong and Wong (2008, p.779), “Nothing happens until someone sells
something” One principal way to get this done is through personal selling. According to
Buell (1984), personal selling is a face-to-face promotional marketing approach that
generally helps in product direct marketing and sales conclusion.
The goals of personal selling are to generate revenue and provide services that enhance
customer satisfaction in the process of customers’ purchases. Thus, this often leads to
success within the competitive marketplace through established relationship between
the salesperson and the customers.
The aims of this section is to explain how personal selling helps in achieving the
overall business marketing objectives. Then, the roles and objectives of
sales management wouldbe examined using a range of business organisations.
1.1 Explain How Personal Selling Supports the Promotion Mix
Promotion is used to communicate products to existing and potential customers. It is
one of the basic elements of marketing mix (shown in figure 1.1 below) used by
business marketers to raise customer awareness of a product or brand, generate sales,
create brand loyalty (McCarthy and Brogowicz, 1981). The various tools used for
promotion process is called promotional mix, also shown in figure 1.1 below.
Promotional mix is one the four marketing tools that often helps an organisation to
achieve its overall
marketing objectives.
Figure 1.1:
Marketing/Promotional
Mix
Source: DLS Web
(Online)
In the opinion of
Kaser (2012) the
purpose of
promotional mix is as
shown in AIDA model
in figure 1.2 below
Personal selling also has the strengths to achieve more within limited resources. It can
help in achieving other multitasks such as payment service, repairs service; return
products service, delivery service and marketing information service, in addition to the
main role of selling.
One of the disadvantages of personal selling is high cost arising from increased
competition, high salaries and incentives, travel and lodging costs and other selling
costs. In an attempt to reduce costs per sale, developing customer base may be
jeopardized. Examples are using fresh graduates instead of the experienced
salespeople, and placing salespersons on commission only. A salesperson placed on
commission only will only be after maximizing sales earnings at the expense of sales
territory and customer development.
Again, marketing tools such as telemarking, direct mail and online marketing can be used
to achieve cost effective sales compared to personal selling. Telemarketing and online
communication can also deliver sales message, respond to questions, take payments
and follow up the sales activities (Boundless, 2015)
Another disadvantage is the difficulty to control the number of salespersons. It is much
easier to turn on or off adverts but alteringthe level of sales forceis more difficult due to
some legal factors.
Another very important weakness of personal selling is its transaction orientation that
aims at selling at the expense of long-term relationship. Relationship marketing, which
emphasises maintaining profitable long-term relationships with customers by creating
superior customer value and satisfaction,is being embraced by most organisations due
to high competitive market environment. According to Kotler, et al. (2008), it costs
more to wrest new customers from competitors than maintaining the existing ones.
Similarly, a well-advertised product often attracts customers and lessens the impact of
competitive products. Thus, salesperson stands on competitive advantage to sell the
advertised product. Sellers of Coca-Cola generally enjoy this promotional tool as the
product enjoys mainly non-personal promotions.
Most of the main retailers such as Tesco, Sainsbury’s and Marks & Spencer’s promote
their products through the offers of loyalty cards. Some other businesses also promote
their products by offering complimentary goods free to their customers. Examples are a
free cup of tea or coffee for shopping at Waitrose (Waitrose, 2016) and free one-year
broadband and fibre for one year for signing up with Sky (Sky UK, 2016).
Salesforce promotion helps to motivate salespeople to sell more and sign up new customers
The objectives of sales promotional tools are to help personal selling process. However,
some of the negative sides of sales promotions include:
They often attract ‘brand switcher’ because non-users and competitors product’s users do not generally
act on the promotions.
Constant promotion on a product may carry negative impression about the product itself. It may be
assumed the product can only sell only if it is under offers
Researches show that adverts help personal selling than sales promotions (Kotler, et al, 2008). Marketers
really use sales promotions for dominant and selling brands
Personal Selling and Public Relations
Public relations (PR) promotional tool seeks to build good relationships with customers
and other stakeholders of an organisation. It helps to obtain favourable publicity
building up a good corporate image and handling unfavourable image.
PR such as press releases, public service activities, and consumer surveys publications
and special conferences are unpaid communication that aims to build log-term positive
image for a product or company.
The costs of this tool are generally low when compared to other tools. PR that promotes
good image of a product or company can help personal selling. However, since
organisations pay little or nothing for PR, they have less control over the publications of
bad news, which can a negative resultant impact on personal selling.
Conclusion
All elements of promotional mix may be effective in the areas of their employment,
such as advertising creating awareness to a wider range of customers, and PR having a
force to create good image for a product, but personal selling, though relatively
expensive, is a good compliment to other elements to drive home business marketing
objectives