SELLING

B2C, B2B AND CHANNEL SALES

CONSUMER DECISION JOURNEY

Traditional Funnel Metaphor

SALES COVERAGE MODEL
TIMES HAVE CHANGED, SO HAS YOUR BUYER
 CONSUMER DECISION JOURNEY
Four Phases of consumer
Journe
✓ Initial consideratio
✓ Active evaluatio
✓ Closur
✓ Post purchase experience

New Finding
❑ Decision journey is circula
❑ The number of brands added
for consideration in different
stages differ by industr
❑ Two-third of touchpoints
during active evaluation
involve consumer-driven
activit
❑ There are two types of loyalty
–Active & Passive
Mckinsey’s model of new consumer decision journey
y

BUYING BEHAVIOUR FOR CONSUMER PRODUCTS

3 Factors Influencing
degree of active
reasoning
✓ Involvemen
• Personal factor
• Product factors
• Situational factor
✓ Alternative
differentiatio
✓ Time pressure
t

B2B SALES
INDUSTRIAL BUYING DECISION MAKING PROCESS
BUYER-SELLER RELATIONSHIP
Buyer’s
perception of
sales rep

Is the Dimensions of Role played

industrial
buyer rational Buyer-Seller by industrial
Relationship buyer
or irrational

Role played
by industrial
sales rep
BUYER-SELLER RELATIONSHIP
Development of mutually satisfying,
Buyer’s profitable, long-term relationships with
perception of customers is a major business asset of
sales rep an industrial marketer.

Is the Dimensions of Role played

industrial
buyer rational Buyer-Seller by industrial
Relationship buyer
or irrational

Role played
by industrial
sales rep
BUYER-SELLER INTERACTION – A CONCEPTUAL FRAMEWORK
Compatible Style Incompatible Style

Compatible
Content Ideal Inefficient Task
Transaction Transaction Interactio Oriented
n
Oriented

Self-
oriented

Incompatible Inefficient No
Content Transaction Transaction

Styles of interaction
RELATIONSHIP MARKETING

Transaction marketing is
Add
financial transaction oriented buyer-seller
benefits
interaction, which focuses on
closing a sale with a customer.

Approaches This is achieved by single sales

for person.
developing For large customer, companies
Add customer
are moving towards team selling
structural bond
ties to Add social & relationship marketing.
financial & benefits
social
benefits
RELATIONSHIP MARKETING
Relationship marketing is a task of creating strong customer bond or loyalty.

Transaction marketing is
Add
financial transaction oriented buyer-seller
benefits
interaction, which focuses on
closing a sale with a customer.

Approaches This is achieved by single sales

for person.
developing For large customer, companies
Add customer
are moving towards team selling
structural bond
ties to Add social & relationship marketing.
financial & benefits
social
benefits
BUYING CENTER ROLES & KEY MEMBERS.
 IDENTIFYING KEY MEMBERS OF BUYING CENTER
❑ Sales / Marketing persons must identify important members of buying Centre
❑ Buying Centre consists of individuals and groups who take part in buying decision making process,
have common objectives & share common risks. It is also called purchase committee, buying committee
or decision making unit
❑ Members of buying Centre ar
(i)  Technical persons. Represent design, production/operations, maintenance, Q.C., Industrial Engg. Dep
(ii) Purchasers / Buyers. Purchase / Materials dept. persons
(iii) Accounts / Finance persons.
(iv) Marketing persons
(v)  Top management persons. G. M. & above.
.

METHODS USED TO INFLUENCE INDUSTRIAL CUSTOMERS

Sales Presentation
Get information about the buying centre members, needs of potential
customer firms.
A sales presentation must be tailor made to fit the needs &
expectation of the potential customer.
A sales presentation should first present the positive points about his
products, services & company, & keep difficult or negative points at
the en.
Project the products/services as differentiator.

Negotiation with Industrial Customers

Negotiation is a process that tries to maximize the benefits to both
buyer & seller, & takes long-term view of their relationship.
Purpose | Information | Customer Trust | Styles of negotiation | Time
factor
Styles of negotiation
I win, you lose | Both of us win | You win, I lose | Both of us lose
METHODS USED TO INFLUENCE INDUSTRIAL CUSTOMERS
Reciprocity
It is a practice of buying from one’s own customers & also using
purchasing power to sell to one’s supplier.
When products are homogenous or products have little
differentiation & price competition are less, reciprocal dealings
are likely to occur.
Caution must be exercised to keep it to minimum level.

Dealing with Customer’s Customer

One of the complexities in Industrial marketing is the need to
deal with a customer’s customer & become the customer’s
competitor.
SUPPLIER EVALUATION SYSTEM
Attribute Weight Supplier Supplier Rating
(Factors) (Importance) performance
Quality 30 0.8 30 X 0.8 = 24
Delivery 25 0.4 25 X 0.4 = 10
Price 15 0.6 15 X 0.6 = 9
Service 20 0.6 20 X 0.6 = 12
Flexibility 10 0.2 10 X 0.2 = 2
Total 100 57
SUPPLIER EVALUATION SYSTEM
Attribute Weight Supplier Supplier Rating
(Factors) (Importance) performance
Quality 30 0.8 30 X 0.8 = 24
Delivery 25 0.4 25 X 0.4 = 10
Price 15 0.6 15 X 0.6 = 9
Service 20 0.6 20 X 0.6 = 12
Flexibility 10 0.2 10 X 0.2 = 2
Total 100 57

The supplier(s) who gets the highest total score receives the business or the order form
from the buying organization.
BUYING SITUATIONS / BUY CLASSES
 BUYGRID FRAMEWORK

BUYPHASES BUYCLASSES
New Task Modified Straight
Rebuy Rebuy
1. Problem Recognition Yes May Be No
2. Characteristics of Product Yes May Be No
3. Product Specification Yes May Be No
4. Supplier Search Yes Yes No
5. Analyzing Supplier Offers Yes Yes May Be
6. Supplier Selection Yes Yes No
7. Order – Routine Selection Yes Yes May Be
8. Post Purchase Review Yes Yes Yes

 BUYGRID FRAMEWORK

BUYPHASES BUYCLASSES
New Task Modified Straight
Rebuy Rebuy
1. Problem Recognition Yes May Be No
2. Characteristics of Product Yes May Be No
3. Product Specification Yes May Be No
4. Supplier Search Yes Yes No
5. Analyzing Supplier Offers Yes Yes May Be
6. Supplier Selection Yes Yes No
7. Order – Routine Selection Yes Yes May Be
8. Post Purchase Review Yes Yes Yes

CUSTOMER LIFE-CYCLE
B2B CONTENT CREATION STRATEGY
HOW CONTENT IS USED
CHANNEL SALES
CHANNEL MANAGEMENT
DISTRIBUTOR
❑ Distributor is companies ambassador in their respective region
❑ Distributor is a vital link in channel of distribution
❑ Distributor for the service center between the company and the trade
❑ The main channel which delivers the goods at the doorstep of trade outlets.

 CRITERIA FOR SELECTING DISTRIBUTOR

“I” Formul
❑ I = INVESTMEN
❑ I – INFRASTRUCTUR
❑ I = INVOLVEMEN
❑ I = INFLUENCE
a

 I = INVESTMENT
THE WORD INVESTMENT REFERS TO THE EXPENDITURE WHICH IS REQUIRED TO BE MADE
IN CONNECTION WITH ACQUISITION AND DEVELOPMENT OF BUSINESS

❑ Ability to invest up to 10% of turnover in working capital for 6% gross margin and 3 % net margi
❑ Owned to borrowed healthy ratio of 60:40
❑ Private borrowing to be discourage
❑ Separate bank accoun
❑ Ability to bring more investment in peak time like new product launches, big trade schemes and
consumer offer etc
❑ Exclusive usage of investment for a particular business.

❑ FIXED OR WORKING INVESTMENT

✓ Stock
✓ Debtor
✓ Cash
s

 I = INFRASTRUCTURE
INFRASTRUCTURE IS IN OTHER WORDS IS THE FACILITIES CREATED FOR
SMOOTH RUNNING OF A BUSINES
❑ Warehouse spac
❑ Office spac
❑ Furnitur
❑ Mechanized unit
❑ Non mechanized unit
❑ Personne
❑ Office equipment
e

I = INVOLVEMENT
OWNERS INVOLVEMENT IN BUSINESS IS CRITICAL AND THE INVESTMENT INVESTED IN THE
BUSINESS AND INFRASTRUCTURE HAS TO BE MAINTAINED PROPERL
Distributor should know
❑ Stock level in the warehouse, order booked with the company/CF&A , damage stock in the
warehouse, etc
❑ Market credit, good payers, bad pay masters, etc
❑ Claim to be raised, claims to be submitted, already submitted claims, status of all claims, etc
❑ Proper usage of infrastructure
.

I = INFLUENCE
INFLUENCE T
❑ To collect pending bill
❑ To stop the infiltration from other town
❑ To put more pressure to sell more stock in wholesale and retail marke
❑ To bargain shelf space at the retailers poin
❑ To get more bank overdraf
❑ To get competitors activity informatio
❑ To borrow the money at peak time, etc.
O

 ❑ Be hones
❑ Explain realities (+Ve & -Ve
❑ Genuine turnover/investmen
and infra requirement
t

SALES FORCE SIZE

❑ Plan the number of towns to be covere
❑ Plan number of beat
❑ Plan the number of outlet to be covere
❑ Plan the frequency of coverag
❑ No of outlet to be covered per day
s

PEOPLE MANAGEMENT

❑ Itineraries and contact

❑ Call-age & Productivit
❑ Training and developmen
❑ Motivation and incentives
y

 MARKET WORK
❑ Callage and Productivit
❑ Range sellin
✓ Brands per cal
✓ Stock pressur
✓ Lines per cal
❑ New product launc
❑ Merchandisin
❑ Trade promotio
❑ Width and Depth of distributio
❑ Coverag
❑ Credit management
e

 MERCHANDISING
❑ Display
❑ Shelvin
❑ POP Usag
✓ Hanger
✓ Shelf Strip
✓ Dangler
✓ Poster
❑ Gondala
❑ Brand image window
✓ Backing paper

s

 COMPETITION
❑ Companie
❑ Product
❑ Pricin
✓ Margi
✓ Launch promotion
✓ Trade Promotio
✓ Medi
❑ Strategy to attac
✓ Price cu
✓ Display
✓ Medi
✓ Credi
✓ Trade Promotio
✓ Customer offer
a

 ❑ Reportin
✓ Daily Repor
✓ Weekly Repor
✓ Monthly Repor
✓ Special Repor
❑ Distributor Managemen
✓ Investmen
✓ Infrastructur
✓ Involvemen
❑ Communicatio
✓ Company pla
✓ Product promotio
✓ Budge
✓ Investmen
✓ New launche
✓ Company memo
✓ Competitio
✓ Requirements
t

 MOTIVATION
What’s in it for me
❑ Financial Motivatio
✓ Incentive
✓ Bonu
✓ Foreign tri
✓ Gold and Silve
✓ Commissio
❑ Non Financial motivation
s