Hi. My name is Aleksei Trykov. I'm an assistant lecturer at Peter the Great St. Petersburg Polytechnic University. I welcome you to our core sales management. This course will provide you the foundation for organizing sales in your company. But let us start from the basics. The subject of our lecture today, the place of sales management in marketing. Let's give the definition of marketing according to the dictionary of the American Marketing Association. Marketing, it is activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. One of the tools in marketing is marketing mix. It is a combination of controllable market in variables that the company uses to achieve its goals in the target market. The most common classification on these factors in the four-factor classification by Jerome McCarthy called the 4Ps: product, promotion, price, and place or distribution. This model was suggested in 1960. In 1993, Robert Lauterborn proposed a concept 4Cs of buyer which complement on the concept of sales 4Ps and the 4Cs model. The term communication corresponds to the term promotion for 4Ps model. What is the difference between promotion and communication? Promotion means one-way seller buyer process. Communication means two-way seller buyer, seller process. The term feedback is the key concept of communication. In marketing, the classic composition of the communication, so-called communication mix has a set of four tools: advertising, personal selling, sales promotion, and public relations. Sales or personal selling is the commercial activity of sales personnel or company agents related to the provision of the goods or services to one or more customers for the purpose of selling. Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor with various media through advertisements or commercials. Thus personal selling is personal communication, while advertising is non-personal but mass communication is the same advertisement for everyone. Personal selling is an individual approach. Advertising is a mass approach, although targeted advertising in the Internet communications involves the creation of different advertisements for each of target audiences. Sales promotion is a variety of short-term incentives to encourage purchase or sale of a product including consumer promotions, intermediary, or trade promotions. Incentives for salespeople such as bonuses and contents for sales representatives, public relations and publicity are variety of programs designed for both company employees and consumers, partners, other firms, governments, and the media. Its goal is to promote or protect the company's image or its individual products. Many scientists and marketeers complement the classic tools of the marketing communication mix with contemporary tools. Kotler and Keller offer four additional parts. Events and experiences are companies sponsored events and programs designed to create daily or special brand interactions with consumers, including sports, art, and entertainment. Direct marketing, the use of mail, email, phone, or messengers for dialogue or receiving feedback from existing or potential customers. Interactive marketing is online activities and programs designed to engage existing or potential customers and directly or indirectly raise awareness, improve image, or raise sales of goods and services. Word-of-mouth marketing is people-to-people oral, written, or electronic communications that relates to the merits or experiences of purchasing or using goods or services. Direct marketing and word-of-mouth marketing are most closely associated with personal selling. Advertising and personal selling are the two main basic elements of the marketing communications providing sales. When is personal selling more important than advertising? There are many factors that influence a priority of using personal sales rather than advertising really hit the main wants in our opinion. When its goes for B2B markets when there are few buyers when the buyers are concentrated geographically, when there is a large sum of purchase, or when the purchase is at the stage of completion, when consumer needs detailed, complex information about the product or long and complicated purchasing process, when the product is a service. In these cases, you should use personal selling rather than advertising. What B2C and B2B market means? B2C, business to consumer or consumer markets are the markets where that customers purchase products and services for their own or their family use. In the B2B market, business to business, the customer is the organization itself. In a narrow sense, these are producers of goods and services as well as trade organizations. These organizations are commercial, the purpose of their activities making a profit. In a broad sense, B2B markets include governments B2G, business to government and public non-profit organizations, B2I business to institutions. In the consumer markets, personal sales are most important. In the real estate markets, in the sales of cars, expensive furniture, and the market for repair and construction services and also in the sales of other expensive durable goods and services. The process of buying for such products can be complex and multi-step. Separately, it should be set about the role of the seller into retail and the retail store and especially in the bazaar, the seller personality and his abilities can be the key to commercial success. There are free buying situations for the B2B markets when personal sales and seller efforts have different meanings. When repurchasing is unchanged, the seller has to perform a normal invoicing delivery, control, etc. When making a purchase with some changes, it is necessary to agree on the changes in the terms of the contract like price, delivery time, quality, and the quantity of goods. The third one is buying a product to solve new problems. The seller must care for the study and prepare commercial proposal that meets the new requirements and customer needs. The negotiation in this case are likely to be long and difficult. One of the most important characteristics of B2B buyer behavior is the involvement of the many employees in the purchasing process. The term buying center or decision-making unit is used to refer to these individuals. The buying center is not a formal designation in the organizational chart but an informal network or procurement participants. However, members of the purchasing department are typically included in most buying centers and are normally represented in the formal organizational structure. The difficult task facing the selling firm is to identify all the buying center members and to determine the specific role of each decision-makers. The buying center can be divided into categories: business decision-makers and technical decision makers. The first make organizational and financial decisions. The second more influenced the decisions and the technical characteristics or specifications or the purchased products. There are often contradictions between them that BDM wants to pay less but TDM to have better equipment which is quite usually expensive. Let's consider the situation of purchasing computers for an advertising agency. Computers are needed by designers. There are users know that technical specifications of computers. The System Administrator is responsible for the quality of computers and the installation of software on them Designers and system administrator are technical decision-makers. Their financial director and the purchasing manager are business decision-makers thinking more of the price payment terms and delivery time of the purchase.
