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Papa MKTG-75 Module-1
Papa MKTG-75 Module-1
Management Department
Bachelor of Science in Business Management III
MKTG 75 – PROFESSIONAL SALESMANSHIP
Module I:
SELLING AS A PROFESSION
Lesson 1: Lesson 1: Selling and Salespeople
Prepared by:
RHONALYN C. PAPA
Assistant Professor I
Reviewed by
EDRIANE E. SERRANO
Management Department, Chair
Noted by:
MAT M. NUESTRO
Director for Curriculum and Instruction
PREFACE
This module aims to provide students with management principles that emphasized on
sales, selling and techniques and policies including salesmanship, retailing, and wholesaling.
This will aid the students to develop and showcase their skills in selling, demonstrating, and
presenting products and services professionally.
ABOUT THE AUTHOR
Objectives:
After the completion of the chapter, students will be able to:
What is a sale?
A sale is when the seller gives goods or services to the buyer in exchange for money.
It's the act of selling a product or service and getting paid for it.
Salespeople are hired to understand buyers' needs and convince them to purchase
products or services.
A sale is a transaction where one party gets something, and the other party gets
money or other assets in return. Sometimes, it can refer to an agreement on the price of a
financial asset in the markets. No matter the situation, a sale is like a deal between a buyer
and a seller.
Salesmanship
"Personal selling" and "salesmanship" are terms that are sometimes used
interchangeably, but they have a distinct difference. Personal selling is the broader concept,
while salesmanship is just one component of it. It's important to note that salesmanship is
not the entirety of personal selling. Personal selling, along with other critical marketing
aspects like pricing, advertising, product development, research, marketing channels, and
physical distribution, is a method used to put marketing plans into action.
The main goal of marketing is to connect a company's products with potential
markets and facilitate profitable exchanges, where products are traded for money. On the
other hand, the primary purpose of personal selling is to connect the right products with the
right customers and facilitate the transfer of ownership.
Salesmanship involves the skill of persuading and convincing individuals to purchase
a product. It's about using logic, arguments, and product features to persuade potential
customers to choose your product over others.
On the other hand, selling is the straightforward act of transferring goods or services
to a buyer in exchange for money or other valuable items. It's a transactional process
conducted by a registered business entity.
1. One can find virtually no occupation or profession that does not demand skills.
2. The customer usually goes to the seller instead of the seller seeking out for
customers.
2. Greater Satisfaction
Salesmanship has transformed into a valuable service for consumers. With changing
buying habits, salespeople have adapted by becoming advisors, consultants, and guides to
customers.
4. Increases Knowledge
Salesmanship involves actively listening to customers and providing them with the
information they need. Salespeople educate customers about product use, inform them
about new products, discuss prices, designs, quality, and raw materials. They explain,
demonstrate, compare, and enlighten, serving as representatives of businesses and social
ventures. Through their efforts, salespeople expand knowledge about their products.
5. Source of Excitement
In today's world, salespersons have evolved. They're not the flashy product pitchmen of the
past. Instead, they're becoming experts at diagnosing customers' needs and issues.
10. Fulfilling Customer’s Service Standards
Salespeople in numerous companies are now being selected, trained, and motivated
to handle increasingly intricate job responsibilities. They are also placing a greater emphasis
on addressing the expanding array of consumer choices and striving to meet the demand for
higher customer service standards.
Learning Organizations
In a true learning organization, everyone is always learning and improving. They use
their own experiences and learn from others, whether they succeed or fail. Learning is
deeply ingrained in the organization, guided and exemplified by top management. Every
member knows that continuous learning is not just encouraged but also rewarded.
Communication flows openly and inclusively in such organizations, involving people
at all levels. Senior leaders lead by example, sharing what they learn as they learn it. Those
who embrace learning receive recognition, opportunities for growth, promotions, and even
financial incentives, while those who resist may find themselves transitioning out.
Being a learning organization isn't just beneficial; it's a competitive advantage. These
organizations outperform competitors, possess a unique brand strength, and can attract and
retain top talent. They gather and retain knowledge about their environment, ensuring
continuity even as staff changes.
Ultimately, learning organizations evolve and adapt to stay competitive in today's
business world, driven by the demands of the modern environment.
Two Types of Learning
Adaptive Learning:
Improving existing knowledge to perform current tasks more effectively.
Generative Learning:
Going beyond current products, markets, policies, and procedures to gain fresh
insights and innovations.
Types of Salespeople
1. Manufacturer’s Salespeople
- They are salespeople who may sell to wholesalers, retailers, or other middlemen.
- Those who sell to ultimate consumers
- Those who sell to industrial concerns
People who work for manufacturers and who sell to the distributive trades can be
further grouped into three major types:
2. Wholesaler’s Salespeople
This describes a person who acts as a go-between for the manufacturer and retailers
or industrial customers. They stock a wide range of diverse products in a warehouse, making
them readily accessible to dealers. These intermediaries perform various important functions
in facilitating the supply chain.
3. Retailer’s Salespeople
These individuals play a crucial role in the marketing process since they act as both
buyers and sellers. They purchase products from producers and wholesalers and then offer
a wide range of items to retailers. These intermediaries maintain large inventories in
warehouses, ensuring speedy access for dealers.
4. Specialty Salespeople
Pederson and Wright (1971) distinguished authorities in salesmanship wrote the following
creed:
The Professional Salesman’s Creed
1. I will place customer and company interest above self – interest.
2. I will be constantly alert to the concept that successful selling must bring mutual and
continuous benefits to both the buyer and seller.
3. I will maintain an optimistic and positive attitude toward my business at all times.
4. I will maintain loyalty to my company, my associates and my customers.
5. I will do everything possible to support the free – enterprise system based upon open
competition and freedom of choice in the market place.
6. I will continue to develop new knowledge’s, skills, and attitudes to keep pace with the
changing technological and social environment.
7. I will make every effort possible to utilize efficiently my total capacities in rendering
quality service to my customers and company.
8. I will never violate the trust and confidence of my customers or associates.
9. I will maintain honesty and integrity in all of my dealings with my customers,
competitors, colleagues, and company.
10. In all of my personal activities I will attempt to do what is right and just for all parties
concerned.
Rewards in Selling
Combining both cash and noncash rewards can significantly enhance sales
performance at a lower cost compared to relying solely on cash incentives. According to
John Farrell, the Senior Director of Client Strategy at the Carlson Marketing Group, noncash
incentives, on average, can increase sales by over 13% with just a 4% increase in
expenses. This translates to a three-to-one ratio of increased revenue to additional costs.
Noncash incentives come in various forms. Many sales representatives highly value
rewards like travel experiences and special gifts as tokens of recognition. However, the most
effective noncash rewards offer a level of flexibility similar to cash. These could be in the
form of certificates that allow winners to choose from a diverse and appealing catalog of
goods. When the catalog itself is well-known and respected, it enhances the significance and
memorable value of the incentive award (Canaday, 2021).
Even when facing economic challenges, sales managers continue to offer special
incentives to their representatives. However, limited budgets emphasize the need for
efficient incentive programs, as highlighted by Michael Dermer, the President of 1-800-Gift
Certificate.
Dermer argues that gift certificates can be a powerful choice because they provide
rewards that recipients genuinely desire, offering them choices. This eliminates the need to
spend time and resources identifying specific rewards and allows a focus on program
implementation and business objectives.
Selecting the right reward, especially for top-performing reps, can be a daunting task.
Dermer uses the example of golf clubs, which can change rapidly. Sales managers are often
pressed for time and shouldn't have to continuously research the best golf clubs. This
challenge becomes even more complex when dealing with a large sales force. In contrast, 1-
800-Gift Certificates can create a diverse portfolio of rewards suitable for reps across
different regions, genders, ages, and income groups.
1-800-Gift Certificates sources its reward portfolios from national retailers, travel
companies, and merchandise firms. This wide range allows them to offer incentives that
cater to various types of sales representatives.
Moreover, 1-800-Gift Certificates excels in the three essential elements of an
effective motivation program: knowledge, technology, and sourcing. They have the expertise
gained from working with over 1,000 corporate clients, the technological capabilities for
Internet-based tracking and redemption systems, and partnerships with national companies
to source the right rewards.
Dermer emphasizes that experience with past incentive programs provides a
significant advantage because it helps avoid common mistakes and capitalizes on lessons
learned.
Effective incentive "plumbing" is also crucial. Dermer mentions a scenario where a
client with independent distributors nationwide lacked a common information system. 1-800's
Internet-based awards system allowed each distributor's representatives to choose their
earned gift certificates or travel rewards, making it more manageable. Additionally, clients
can track the reward system's implementation and make adjustments as needed.
Sales forces typically employ one of two reward strategies: quarterly incentives for
exceeding revenue targets or ongoing incentives based on points earned for various
business achievements. Dermer suggests that ongoing programs, with their flexibility, are
more potent incentives because reps can be rewarded for specific achievements, such as
product sales or lead qualification.
However, motivating representatives with special rewards can be as intricate as
designing a compensation plan. Dermer emphasizes that many factors, including business
objectives, sales force demographics, past program experiences, and budget, need
consideration. He underlines the importance of listening to what the company aims to
achieve.
While gift certificates offer flexibility, Dermer acknowledges that cash remains a
strong competitor. Companies often have cash bonus systems in place, and gift certificates
complement cash incentives rather than replacing them.
Dermer believes that gift certificates are the right approach for many companies
because they cater to everyone's preferences. He recognizes that while sales managers
may desire to personally select rewards daily if resources were unlimited, practical
constraints make this an impractical approach.
- Dan Lightfritz
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