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We have shown that marketing is both a system of thought and a system of action. To be effective, the strategic choices made by a firm must be supported by dynamic programs of action, otherwise the chances of commercial success are slim. To successfully sell, it is not enough to offer a product at an attractive price through an extensive distribution network. It is necessary, using suitable means of stimulating demand, to ensure that the distinctive properties of the product become known to the target group of buyers. Therefore, the efficiency condition marketing strategy is to develop a communication program with two interrelated goals: "make known" and"make an attractive nym". Such a program should use a variety of communication channels: sales force, advertising, promotion, and public relations. The purpose of this chapter is to review the major strategic decisions a firm must make when developing a communications program. Their problems are shown in Fig. 13.1.

Rice. 13.1. Strategic communication decisions.

^ 13.1. THE NATURE AND ROLE OF COMMUNICATION IN MARKETING

As discussed in Chapter 1, in order to effectively match supply and demand, information flows must circulate among the participants in the exchange process, mainly from the firm and aimed at communicating to the market the position claimed by the brand or firm.

^ 13.1.1. Funds marketing communication

By marketing communication we mean the totality of signals from the company to various audiences, including customers, distributors, suppliers, shareholders, management bodies, as well as our own personnel. The main means of communication, called "Communication Complex" are advertising, personal selling, sales promotion and public relations.

• 
  Advertising - it is a paid form of one-way mass communication that originates from a well-defined sponsor and serves as direct or indirect support for the firm's actions.
• 
  Personal selling - it is a personalized and two-way communication (dialogue) aimed at prompting the client to take immediate action, and at the same time a source of information for the firm.
• 
  Sales promotion covers all temporary and usually local events that complement advertising and personal selling and are aimed at accelerating and expanding sales of a particular product.
• 
  ^ Public relations aim to create, through purposeful action, a psychological climate of understanding and mutual trust between the organization and its various audiences. Here, the goal of communication is not so much to sell as to provide moral support for the firm's actions.

In addition to these traditional remedies, mention should be made of such remedies direct communication, like salons, fairs, exhibitions, mailing lists, telemarketing, catalog sales.

The variety of channels complements each other, so the issue is not whether to address sales promotions, for example, but rather how to allocate the overall communications budget across the various channels based on product characteristics and communication objectives.

^ 13.1.2. Communication process

Any communication involves signaling between transmitter and receiver using a codec-decode system to record and interpret signals. On fig. 13.2 this process is described through its eight elements:

• 
  transmitter(individual or organization) - the source of the message;
• 
  coding- the process of converting ideas into symbols, images, drawings. forms, sounds, language, etc.;
• 
  message - a set of symbols transmitted by the transmitter;
• 
  transmission channels - the means by which the signal is transmitted from the transmitter to the receiver;
• 
  decoding - the process by which a receiver assigns meaning to symbols received from a transmitter;
• 
  receiver- the target audience;
• 
  response - the totality of the receiver's reaction after reading the message;
• 
  Feedback - the portion of the receiver's response that goes to the transmitter.

Rice. 13.2 also allows you to identify key conditions for effective communication. We note the following among them.

• 
  Goals of communication. The transmitter must clearly know which audiences he wants to reach and what type of response he wants to receive.

Rice. 13.2. Communication process.

Source: Kotler R. (1991).

• 
  Message preparation. It is necessary to take into account the previous experience of users of the product and the procedure for decoding messages that the target audience adheres to.
• 
  ^ Channel planning. The transmitter must convey its message through channels that effectively communicate it to the target audience.

The last two tasks are usually carried out by advertising agencies or firms specializing in media selection.

• 
  ^ Message effectiveness. The transmitter must use feedback signals to evaluate the response of the target audience to the transmitted messages.

Applying the concept of marketing to advertising involves developing messages that appeal to the experience of buyers and use a language that they are able to decode. The listed conditions of effectiveness determine the set of decisions included in any marketing communication program.

^ 13.1.3. Strategies for personal and impersonal communication

Two main means of marketing communication- these are personal contacts through the sales staff and impersonal contacts through advertising channels. It is important to understand in which case direct contacts are more effective than advertising. Some grounds for their comparison are given in Table. 13.1.

^ Table 13.1. Comparison of personal and impersonal communication.

Source: Darmon R.Y., Laroche M. et Petrof J.V. (1982), adapted.

Elements of the communication process	Personal communication	impersonal communication
Transmitter	Direct identification of the interlocutor	Knowledge of a typical target audience profile
Message	Custom message Many arguments Uncontrolled form and content	Homogeneous message Few arguments Controlled form and content
Channels	Personal contacts Few contacts per unit of time	Impersonal contacts Many contacts per unit of time
Receiver	Weak decoding error consequences Easily maintained attention	Strong consequences of a decoding error Hard-to-maintain attention
Effect	Immediate response possible	Immediate response not possible

Comparison allows you to do the following findings.

• 
  Personal selling is far superior to advertising in effectiveness. Advantages of advertising in its price: to make with its help one contact is many times cheaper than one visit of a sales agent.
• 
  In addition, advertising allows you to contact large audiences in a short period of time, while the agent can only visit a limited number of customers.
• 
  When applied to a product that is complex and difficult to use with a limited circle of users, the effectiveness of a sales agent is undoubtedly higher than that of an advertising message, which is inevitably too general and simplistic.
• 
  The agent acts directly and is able to immediately receive an order from the client, while advertising acts through the fame and image of the brand and its effect only affects after some time.

Thus, when the personal aspect of communication is secondary, it is advisable to resort to advertising for reasons of economy and productivity. New advances in the field of interactive advertising bring together the advantages of both considered options.

^ 13.1.4. Communication costs

Communication costs are poorly accounted for. The data available on this issue is fragmentary, and spending levels vary widely from industry to industry. In general, we can say that the costs of personal communication exceed advertising costs, and they are especially high in the markets for industrial goods. This is confirmed by the following figures.

In France, spending on advertising in the media amounted to 30.6 billion francs in 1986; and spending on personal communication in 1982 over 100 billion francs. In the US, total advertising spending in 1986 exceeded $66 billion; personal selling spending in 1982 exceeded $100 billion (Xardel, 1982, p. 66; Waterson, 1992).

Using the data from Table. 13.2, one can estimate the relative importance of these costs for the economy as a whole for various countries.

^ Table 13.2. Advertising expenses in different countries.

Source: Waterson M.J. (1992).

Country	Expenses (ecu) (x 1,000,000)	As a percentage of GNP (national currency)	Expenditure per inhabitant (ecu)
USA	65725, 2	1, 41	264, 2
Europe (EU)	42458, 5	-	143, 3
Japan	22969, 3	0, 9	186, 6
United Kingdom	9841, 6	1, 29	171, 9
Germany	9284, 1	0, 86	149, 8
France	6636, 7	0, 76	118, 2
Spain	6490, 2	1, 88	166, 9
Italy	4845, 6	0, 62	84, 2
Netherlands	1992, 5	0, 98	134, 2
Switzerland	1743, 2	1, 08	259, 3
Denmark	1514, 4	1, 57	295, 1
Sweden	1469, 7	0, 85	173, 0
Finland	1055, 2	1, 01	212, 6
Austria	1045, 4	0, 91	137, 1
Belgium	847, 1	0, 61	85, 2
Norway	631, 9	0, 77	149, 5
Greece	383, 4	0, 78	38, 2
Ireland	314, 8	1, 02	89, 6
Portugal	308, 1	0, 75	29, 8

^ Note: These figures are for advertising agencies and publishers, but do not include production costs.

The cost per trade worker is constantly increasing, especially in the markets for manufactured goods; the cost of one advertising contact, on the contrary, tends to decrease due to the growing selectivity of information media.

A study by McGraw-Hill Research found that the cost of one well-defined targeted contact through an advertisement in a trade publication is 17 cents. The cost of a sales representative visit averaged $97 in 1977 and $252 in 1988 (Forsyth, 1987).

The evolution of communication costs and especially the rapid development of new communication media require a reassessment of the relativeroles advertising channels and direct sales.

^ 13.1.5. New communication technologies

In connection with the successes in the fields of telecommunications, cable television, satellite communication systems, interactive terminals of the "videotext" type, audiovisual means have entered the stage of cardinal changes. New technological possibilities will have a great impact on our lives.

Sociologist Daniel Bell (VeP, 1979) argues that "the revolutionary role of telecommunications for mankind in the present is as great as in the past the role of printing, writing and language."

The development of new technical means will also lead to a change in the goals and content of advertising messages. Many of these changes can already be foreseen.

• 
  First of all, the trend towards interactivity of new communication channels should be noted, thanks to which consumers will be able not only to receive information, but to select and order it, as well as send response messages. We are thus moving in the direction of on-demand advertising.
• 
  Further, the new tools will provide access to huge databases of data in a variety of areas, such as product offerings, their comparative characteristics, prices, etc. As a result, the firm will deal with increasingly informed customers. As a result, advertising will become more and more factual, specific and serve more as an assistant to the buyer than as a means of sale.
• 
  Another consequence of the development of telecommunications will be significantly higher selectivity. Combining the power of phone, computer and TV will allow you to send personalized messages to carefully selected audiences. Thus, development goes towards systems personalized email, which will ensure a higher efficiency of advertising communication.

In some sectors, such as car sales, personalized messaging is already being used. Access to the central database of the Bureau of Road Traffic makes it possible to identify, for example, all those who bought a car of a certain model five years ago and are therefore inclined to buy a new Car in the near future. All of them, say, by direct mail, can be sent individual offers.

• 
  The development of regional television also contributes selectivity of communication. The emergence of local channels facilitates access to television for commercial and industrial firms. Local television can more easily adapt to the specifics of regional markets.
• 
  Finally, the expansion of the geographical areas of broadcasting with the help of satellite communication systems will strengthen supranational character advertising campaigns and brands.

As a consequence of all these changes, an increasing part of the functions previously performed sales staff, will be transmitted to cheaper technical means of communication. A properly addressed message, telephone, catalog, accessible through a TV or computer screen, can quickly convey more accurate and complete information than a sales agent's story. This is the reason for the rapid development of a direct dialogue between the firm and the market (Xardel, 1985).

The trade is moving to a kind settlement, when contact with the client ceases to be the privilege of only the seller and passes to the organization as a whole. Even with the reduction of the sales force, the number of such contacts will increase. Therefore, it is important that the entire organization be market-oriented (Xardel, 1982).

Note that the development of telemarketing does not mean the rejection of the services of sales personnel: personal contact remains necessary. Telemarketing prepares this contact and makes it more productive.

^ 13.2. PERSONAL COMMUNICATION

Direct selling is the most effective means of communication at certain stages of the buying process, especially when it comes to gaining preference and inducing a purchase. Therefore, as more routine tasks are transferred to cheaper technical means of communication, the role of sales personnel in strategic marketing is increasing.

^ 13.2.1. Goals and objectives of the sales staff

The development of a personal communication strategy requires first of all to determine the role that the salesperson will play in the implementation of the firm's marketing strategy. To do this, you need to clarify the nature of the connection that the company wants to establish with its customers in each product market.

Typical sales staff tasks can be grouped into three areas:

• 
  actual sale, including identifying potential customers, studying their needs, discussing the terms of sale and closing a deal;
• 
  provision of services customers, including assistance in the use of goods, after-sales service, promotion of goods, etc.;
• 
  collection of information for the company regarding changes in needs, activity of competitors, adaptability of goods.

The salesperson is thus not only the commercial body of the firm, but also an important element of its marketing information system.

Depending on the attention paid to one or another of these functions, the terms "trade worker" and "sales agent" in real life can be given different meanings. The following types of salesperson can be distinguished.

• 
  ^ delivery representative, the main role of which is the physical delivery of goods.
• 
  Salesman, operating in the sales area, who takes orders and, in addition, can act as an adviser to the client, especially in large stores.
• 
  traveling representative, who meets with wholesalers and retailers in order to obtain orders and ensure the continuity of goods supply.
• 
  Sales Promotion Representative: it organizes advertising and promotional activities directly at the point of sale.
• 
  commercial propagandist, which does not take orders, but only informs about new products, especially in the medical sector.
• 
  sales engineer, technically competent and able to play the role of a consultant helping the client in solving his problems. That's how IBM sales engineers work.
• 
  Traveling salesman, selling goods such as automobiles, electrical appliances, encyclopedias, insurance policies, where creativity and communication strategy play a decisive role.
• 
  ^ Contract drafter on a complex project, which, in addition to technical and financial competence, must have a talent for negotiation.

The roles of all these employees are to some extent related to creative and strategic functions. The task lies in the proper organization of commercial relations and in the optimal distribution of responsibilities between salespeople, the distribution network and the means of communication.

^ 13.2.2. The Role of Sales Personnel in Strategic Marketing

Generally speaking, the main task of the salesperson is still to satisfy the need of a well-informed buyer for two-way communication on the question of whether the product suits his needs. For the company, the new value of the sales force is to obtain information that allows the company to accelerate the adaptation to market changes.

Here is how one Japanese firm defines the role of its sales force:

“Vendors are indispensable information gatherers; they need to be educated ... rather in solidarity with other salespeople and the firm as a whole for better verification and gathering of information, than in the individual vanity of the salesperson seeking to fulfill his sales plan, i.e. improve only their own performance” (Serieyx, 1985).

This evolution of the concept of the role of sellers enhances the degree of their participation in strategic marketing, which is to perform the following strategic functions.

Encourage market acceptance of new products.

Discover new clients.

Maintain the loyalty of existing customers.

Provide technical assistance.

Provide consumers with product information.

Collect information.

Thus, the sales staff is involved in the development of: commodity policy, i.e. e. in strategic marketing that provides information about the needs of buyers.

^ 13.2.3. Sales Staff Strategy

Various organizational structures of the sales force are possible: regional, by product, by type of customer, or by a combined principle.

Regional organization - the most popular structure due to its logic and simplicity. The seller is the exclusive representative of the company for all goods for all potential and real customers of the region. This, and also the cheapest, approach is applicable only when the goods are few or similar, and all customers have similar needs.

A paint and varnish company whose customers are wholesalers, retailers, and industrial firms (construction, automotive) obviously cannot have one representative for all customers.

^ Organization by goods preferred when products are dissimilar or difficult to use. To respond to customer requests and resist competition, the sales representative must be more specialized. Costs can increase, especially if multiple representatives must visit the same client.

Organization for clients effective when customers have very different needs and require specific services. Customers can be classified by industry sector, by size, and by other segmentation criteria discussed in Chapter 6. The strength of the approach lies in the possible specialization and thus the good adaptability of sales representatives. But in the case of a large geographic dispersion of customers, this option can become very expensive.

Most computer firms distribute their sales staff to the following groups of buyers: administration, banks, industrial enterprises, trade.

When using combined schemes, sellers can specialize, for example, on the basis of "sector-customer", "customer-product" or even "sector-customer-product" criteria. This principle is used only by very large firms with a diverse clientele.

^ 13.2.4. Multilevel Selling

Multi-level selling, also called network marketing, can be defined in the following way:

“Multilevel marketing is a system that allows anyone who wants to sell a range of products, without first investing anything but their own time and effort, to get goods directly from the manufacturer, and creates a multilevel distribution network through successive assignment of rights” (Xardel, 1986) .

A multi-level sale using sales staff working on a commission basis is characterized by the following elements:

The increase in revenue is due to the expansion of sales, not the distribution network,

The final price is the same for all customers,

Sellers are officially independent persons,

The seller's inventory is limited,

Trade associations act as guarantors of the quality of goods.

This approach allows you to quickly cover a large market at low cost, which is important for mass production. It has become widespread in the USA. Merchants working on this principle can more easily adapt to their customers. For a manufacturer, this constant interaction with customers is a very valuable source of information.

The described principle is effective for overcoming the inertia of classical distribution networks and especially for bypassing barriers to entry that may be created by firms that control traditional distribution channels. Small firms benefit from lower communication costs in this case (Clothier, 1992).

The need of modern society for personalized communication gives the described form of trade new life. However, we must not forget about its inherent limitations in relation to industrial goods, goods that require technical competence or are sold at a small margin.

Advertising is a communication tool that allows a firm to convey a message to potential buyers with whom direct contact is not established. Through advertising, the firm creates a brand image and builds reputation capital with end-users by seeking cooperation from merchants. Advertising is the main communication toolnication retraction strategy. like the sales force for the push strategy.

^ 13.3.1. Choosing the role of advertising channels

• 
  for advertiser the purpose of advertising is to bring information to consumers and achieve their location in order to expand demand for goods;
• 
  advertising allows the consumer to save time and money in clarifying the declared distinctive properties of the product.

As advertising has developed, its forms have become quite diverse, so that the advertiser has a wide choice of advertising style, even when using the same information channels.

Advertising of this type is focused on the product in order to form the attitude of the buyer to this brand. In this case, "advertisers' creative efforts are directed not toward an immediate response, but toward generating a favorable attitude that eventually leads to a purchase" (Dhalla, 1978).

Here the main task is to influence the behavior, not the attitude of the buyer. The message is supposed to encourage a purchase, so its effectiveness is short-term: it is measured by the level of sales. The style of advertising of this type is more aggressive, but in principle it is compatible with the task of creating an image.

This type of advertising seeks to combine the objectives of the two previous styles: to create an image and at the same time achieve a measurable behavioral response that allows you to immediately evaluate the effect of the message. It is this style that is rapidly developing due to its direct relationship with interactive marketing, described in Chapter 11.

It is about creating a climate of trust and understanding between the company and its customers through the formation of the image of the company by describing its profile and drawing attention to the company itself, its features, advantages, values ​​and opportunities. At the same time, it is necessary to find special way of communication in an advertising-saturated environment, to overcome consumer fatigue from advertising numerous products.

^ Sponsorship and patronage

There is a risk associated with branded advertising that it may bore an audience that tends to view such advertising as a form of self-gratification. This is what led to the development of these new approaches, which represent special forms of branded advertising and proceed from the idea that “it is better to acquire fame by acting nobly than by taking credit for it” (Van Hecke, 1988).

Here is a typical example of such an approach. The American Express firm, which financed the restoration of Van Eyck's masterpiece The Mystic Lamb, achieved a prestige boost that no other advertising campaign could achieve.

The task of increasing the firm's fame and improving its image is solved by associating it with positive values. A supported event, the unpredictable development of which gives realism to the advertising message, must have some connection with the activities of the firm.

“By sponsoring a Himalayan expedition or a transatlantic race, the firm emphasizes its commitment to moral values ​​such as team spirit and courage. On the one hand, it proves the breadth of views and harmonious integration into society, and, on the other hand, within the framework of internal communication, it strengthens support from the staff and creates a favorable intra-company climate” (Van Hecke, 1988).

It should be noted that sponsorship is a commercial transaction associated with a two-way transfer of rights and obligations. On the one hand, this is material or financial support for some event; on the other hand, it is a direct methodical exploitation of the event by the sponsor.

For example, having become the main sponsor of the Russian football championship, the Stimorol company received the pre-emptive right to place its advertising in stadiums and on television during football matches (Glebov, 1995). This is the difference between sponsorship and patronage, which is dominated by disinterested interest (Chaval, 1986, p. 68).

It can be seen that advertising styles, goals pursued and means used can be very different. Therefore, when embarking on advertising, one must be clear about the role that advertising has in the marketing program.

^ 13.3.2. Initial requirements for branded advertising

Too many firms still equate marketing with advertising and try to market through advertising. In fact, advertising is only an integral (and even then not always) addition to a more fundamental process, which is strategic marketing. There are several conditions on which the success of advertising depends.

• 
  The role of advertising component of marketing pressure inseparable from other selling factors. As a rule, for successful advertising you need a differentiated product that sells at an attractive price through a well-adapted distribution network.
• 
  Advertising satisfies the need for information and, therefore, will be especially useful when the buyer has to accept difficult buying decision in relation to unfamiliar goods, the properties of which are not disclosed during a simple inspection.
• 
  Advertising is effective when it focuses on distinguishing feature product, giving it superiority over other products and "positioning" it in the mind of the buyer. Such properties can be the "promise" contained in the brand, as well as its features or symbolic value.
• 
  Advertising can have the greatest impact on markets with expanding global demand: it accelerates the diffusion of goods, serves as a catalyst for demand. In mature markets, advertising serves the purpose of dialogue and only affects a part of the market.
• 
  ^ Base market of the advertised product must be large enough to offset the cost of the advertising campaign, and the firm must have the necessary financial resource themselves, so that the intensity of advertising helps to overcome the barriers of perception.

Thus, an advertising platform is a chosen marketing positioning expressed in terms of communication. At the core effective advertising lies marketing logic, without which advertising does not contribute to the achievement of positioning goals.

To determine these, it is useful to return to the three levels of market response discussed in Chapter 5:

• 
  cognitive response: associated with fame and familiarity with the properties of the goods; this level corresponds to the goals of informing, familiarizing, reminding;
• 
  emotional reaction: associated with attitude, system of evaluation and preferences; relevant goals - awareness of value, attraction, persuasion;
• 
  behavioral response: describes the response behavior of customers in terms of buying and repurchasing, as well as requesting information, visiting a point of sale, sending a tear-off coupon, or supporting direct marketing.

Usually these three levels are considered hierarchical in the sense that buyers sequentially pass through three corresponding stages (Lavidge et Steiner, 1961). In Chapter 5, it was shown that this sequence, or model of learning, retains its value in formulating the priority goals of communication, even if it does not have universal application. As illustrated in Fig. 5.2, this model needs to be adapted with respect to the degree of buyer involvement (Vaughn, 1980).

Keeping in mind the hierarchy of goals, specific communication tasks should be set based on the expected results of advertising. Can be distinguished five different types of results, or effects, which can be wholly or partly achieved through advertising. These effects mimic the process a customer follows when making a purchase decision. Each of the effects corresponds to one of the possible goals of advertising.

^ Development of primary demand

The existence of a need is the initial requirement on which the effectiveness of any communication impact depends. Each product satisfies some need. Advertising can stimulate a sense of this need and thereby help expand global demand. In this case, three situations are possible.

• 
  Need exist and feel potential buyers; in this case general advertising is not justified (a similar situation is typical for many routine food and hygiene products).
• 
  The need is felt, but it is neglected or forgotten; here general advertising can remind of its existence (a typical example is rarely bought and infrequently used goods such as painkillers).
• 
  ^ Perception of need is weak or non-existent in the mind of the buyer; advertising is able to actively promote the merits of a product (such are the situations with life insurance, pension funds, tire replacement, etc.).

In these cases, advertising will focus on base function goods that will be useful not only for the advertised brand, but also for its competitors. This type of strategy is often chosen by market leaders.

^ Building or maintaining brand awareness

Corresponds to the first (cognitive) level of reaction. In Chapter 5, fame was defined as the ability of a consumer to recognize brands sufficiently to be able to suggest, select, or use one of them. There are three levels of fame-oriented goals.

• 
  Create or support "fame-recognition": buyers must recognize the brand at the point of sale and through this realize the existence of a need.
• 
  Create or support "fame-memory": the brand should be spontaneously recalled at the moment of feeling the need, before the purchase situation.
• 
  Simultaneously pursue both named goals.

The considered tasks dictate different requirements for the content of advertising. The first focuses on visual elements: product image, color, company logo, packaging. For the second purpose, the repetition of the brand name associated with the core function is important.

^ Creating and maintaining a favorable brand relationship

The task is to develop and modify the attitude of buyers to the product, i.e. influencing emotional response. The concept of relationship was discussed in subsection 5.3.2 of Chapter 5. The relevant communication strategies are:

• 
  convince the target audience that the characteristic on which the brand occupies an advantageous position is especially important;
• 
  reinforce customer confidence superiority or technological advantage of the brand;
• 
  enhance perception the presence of a brand property, determining its choice by potential buyers;
• 
  change position brand by linking it to a different set of needs or motivations to buy;
• 
  eliminate negative attitude to the brand, associating it with positive values;
• 
  modify the perception of potential buyers regarding the availability of competing brands properties that determine choice.

The latter strategy can only be explicitly implemented in countries that allow comparative advertising, such as the UK, but not in France or Belgium.

It is important to understand that the following initial principles underlie the communication strategy based on the concept of attitude.

• 
  The advertiser should strive to emphasize the characteristics in which he has the most significant advantage.
• 
  It is useless to try to change the perception of a brand that does not have the right degree of claimed advantage.
• 
  The main criticism of the advertising process concerns the superficial choice of promotional motives that buyers cannot associate with an important characteristic of the product.

In other words, this communication strategy, in accordance with the concept of marketing, comes from the idea that the main purpose of advertising is to help the buyer to buy, and not just to praise the advertiser.

^ Stimulate intent to buy

The intention to buy is halfway between an emotional and a behavioral response. Two types of situations can be considered.

• 
  The buyer is not involved or little involved in the purchase process, and a conscious intention to purchase a product can only arise in the purchase process itself. This is a typical situation for routine purchases and "little joys". In such cases, promotion of purchases is not included in the objectives of advertising.
• 
  The conscious intention to buy arises from the buyer at the moment of acquaintance with the advertising message.

In the second case, promotional advertising can be useful in creating incentives (price discounts, special offers, etc.) that will push the primary or secondary purchase.

Recall that the intention to buy is manifested only in scarcity situations, when the need becomes tangible. The intention to buy, closely related to the need, at the level of the individual buyer occurs infrequently.

A 1982 survey of intent to buy in the United States found that $365 million worth of shoes were sold in one week. But only 6% of buyers bought shoes for themselves or their children. During the same period, only 28 people out of 1,000 bought pants, jeans, or shorts; 21 out of 1,000 bought a dress, 14 a small household item, 18 a piece of furniture, and 3 a suitcase (Bogart, 1986, p. 267).

Even markets with large sales volumes, like those discussed in the previous example, depend at any given moment on buying decisions coming from a small fraction of buyers. So it is not surprising that only a few advertising messages arouse the intention to buy immediately: in most cases, these messages do not coincide with the existence of a need.

^ Purchasing Simplification

This last goal of advertising communication is related to others factors marketing(4Ps), without which the purchase will not take place: with a product that meets expectations, with its availability at the point of sale, with an acceptable price, as well as with the competence and availability of sellers. If these factors are not combined, advertising can sometimes be useful in alleviating some problems, such as justifying a set price or performing certain sales functions through direct marketing.

^ 13.3.4. Creative Approaches to Image Advertising

• 
  "Target": which group of buyers to address?
• 
  "Promise": what are the features of the proposal?
• 
  "Argument": how to justify the distinctive advantages?
• 
  "Tone": what style or format of the message to choose?

The "message strategy" creates a framework for advertisers: it determines exactly what needs to be conveyed to the target audience. Its merit is that it forces marketing managers to choose a direction of communication that will be maintained for a number of years. As a result, the brand will acquire a special image and positioning.

As noted by Kapferer (1985, p. 102), this approach is especially effective for feature-oriented products, for which purely technical elements of differentiation can be identified.

So, in the 60s at the start washing powder Ariel offered housewives in large families (target) an incomparable quality of washing (promise) thanks to biological additives (argument). The message was made in the most serious style (tone) to ensure credibility (Kapferer, 1985).

However, in many areas, stamps are so numerous that it is difficult to find a specific "unoccupied" promise. There is a danger that the manufacturer, seeking to differentiate at any cost, will resort to arguments that are convincing for himself, but not for the buyer.

^ Star Strategy

This difficulty has led, especially in France, to the adoption of a strategy called "star" (Seguela, 1982).

No serious "message strategy" would have prevented TBWA from launching Pentel green fountain pens in France under the slogan:

"Go Green" (association with ecology), "Go Green" (association with a sports team in green jerseys), and "Green no matter what" (association with green). What exactly is the promise of the Pentel brand? Not with anything. At the same time, advertising was able to create a pleasant image of the brand, attracting to the trial purchase. The merits of the brand will be discovered by the buyer with a pen in hand (Kapferer, 1985, p. 103).

Star Strategy emphasizes three components of communication: the physical characteristics of the brand (its function), its features, or "personality", and tone. This strategy is especially useful when the product does not have any basis of differentiation that is important to the buyer.

Expanding on this approach, Vario (1985) argues that a brand's uniqueness is created from six components: physical properties and personality, as well as the applications with which it is associated, its cultural aspect, its customer image (perspective) and "self-image". which she creates for herself.

For example, the uniqueness of the Porsche brand in France can be described as follows (Kapferer, 1985, p. 104):

(1) physical properties: high quality;

(2) individuality: striving for excellence;

(3) application: more personal than family;

(4) cultural aspect: German technology;

(5) buyer image: winning car;

(6) "auto-image": surpass yourself.

This approach requires a careful selection of expressive means, since here form and style are no less important than content to create an image.

^ Matrix Maloney

In the United States, Maloney (1961) developed a matrix model (see Table 13.3) that remains relevant as a means of simplifying the search for advertising motif ideas. The model correlates the types of satisfaction a customer seeks with the sources of that satisfaction associated with the use of the product. As a result, 12 possible directions for an advertising message are highlighted, and the author can propose his own topic for each of them.

^ Table 13.3. Search matrix for communication topics.

Under market conditions, marketing management should include the following mandatory components:

Creation of competitive goods, services, integrated models of offers and service systems;

Conducting a pricing policy that is not only beneficial for the enterprise, but also acceptable to consumers, resellers and allies from strategic alliances;

Ensuring the availability of customers and business partners to the company's products using adaptive marketing and logistics communication systems;

Establishment, support and development of formal and informal relationships, which are carried out mainly by sales personnel.

From the standpoint of modern approaches to business technology, in the formation and maintenance of production and commercial relations between an enterprise, its consumers, various intermediaries and allies from strategic alliances, there should be nothing accidental and uncontrolled. That is why, in order to ensure the success of the enterprise, the selection, training and stimulation of sales personnel is of paramount importance.

The development of market relations largely depends on the activity and competence of the sales staff. Several illustrative examples can be cited as justification.

However, I soon began to realize that all these innovations did not bring much success. No matter how hard we try, we have not been able to change the desire of consumers to deal exclusively with sales personnel through personal contacts. Customers preferred "CF" over other competitors for one simple reason: they liked direct contact with corporate salespeople. In doing so, they basically ignored other marketing channels, and there was nothing we could do about it. For example, if a client had a problem, the first person they contacted was the company's sales agent, who immediately sorted out the misunderstandings. Since the relationship with the sales staff was very important to customers, all of our marketing program should have been built on maintaining those relationships."

The second example comes from the work experience of B. Sigman, no less famous and experienced in the field of marketing and management, from the company "Advanced Systems Group", which provides its customers with new equipment, working with a number of leasing companies. She says: "Our supplier partners have much more in common than some more or less significant differences. Therefore, the choice is often determined only by the personal qualities of the staff. You stop at those who are attentive, with whom it is just a pleasure to do business."

Many such revelations of highly qualified and experienced marketers and managers from various industries commercial activities indicates that one of the decisive factors for a successful business is the nature of relationships with consumers and business partners.

The category of employees of promotion and sales services who create a corporate marketing system includes specialists who perform various functions. In the field of organizing commercial relations and sales, the following categories of employees of the enterprise are most often found: sales agents, contactees - "negotiators", trade consultants, telemarketing operators, field representatives, marketing specialists of various career guidance and directly sellers.

The main responsibilities to which the activities of the listed categories of trade workers are reduced are as follows:

Search and attraction of new prospective consumers and resellers.

Development of relations with active (cash) consumers, intermediaries and allies in strategic alliances.

Maintaining relationships with passive (former but potential) consumers, intermediaries and allies in strategic alliances.

Preparation, organization and completion of each individual purchase and sale process, which includes a targeted study of a particular consumer, establishing contacts in the process of negotiations with him; arguments in favor of the buyer making a positive decision; overcoming objections; making a deal.

Provision of additional and related business services that are not included in contractual obligations, for example: information support for buyers, advising them like that.

Conducting research of the target market in the sectoral, territorial context.

Collection of information necessary for current activities and development of forecasts.

Drawing up reports on the results of visits, telemarketing, written contacts.

Search for opportunities to form strategic alliances with other producers of goods and services for the joint promotion and sale of related products.

Implementation of activities in the field of formation and development of public relations.

Effective management of sales personnel at the enterprise determines the stages, consistency and complexity of the system of internal company communications and relations.

It is appropriate to note that an interesting pattern is observed in practice: on average, 80% of the entire business of producers of goods and services falls, as a rule, on 20% of the consumers of their target markets. This circumstance, in fact, is one of the manifestations of the "Pareto law" in entrepreneurship.

This circumstance is of great importance due to the fact that in many enterprises it helps to specify the strategic tasks for the sales staff in general and for each employee, in particular those that determine the nature of functional activity.

So, for example, in some firms and companies, sales department employees are recommended to devote approximately 80% of their time to existing (active and passive) customers, and 20% to finding and establishing contacts in the target market with new customers, or to devote about 80% of their time to promoting and selling mastered enterprise products, and 20% - search and work with new products (another expression is "Pareto's law").

The specificity of various types of products and markets (especially of a consumer nature) determines that, in addition to the technical and commercial training of personnel necessary to promote and sell the company's products, great importance is attached to issues of interpersonal relations and psychology in the process of activity. This is one of the key features of marketing as a concept and management as a field of professional activity.

Individual enterprises unprofessionally ignore the "human factor". For this reason, their successes are much "more modest" than they could be. The professional approach lies in the fact that everyone in the enterprise - from top marketing managers to an ordinary employee of marketing departments - must understand the critical role of interpersonal communication.

It is known that salespeople and pre- and after-sales professionals who provide buyers with information, advise consumers, demonstrate products, provide after-sales service, etc., often function not only as salespeople and service providers, but also as, a kind of confidant of consumers. Buyers are more frank with them, they are the first to respond to consumer complaints and can advise something not officially, but "humanly". Often, representatives of the enterprise are the only contactees who connect the consumer with the producer of goods or services. Therefore, it is on them that the buyer's perception of the image of the company and its attitude towards consumers depends.

The peculiarity of the activity of employees of marketing departments is that each employee who belongs to the sales and service personnel is at the same time a marketer-universal for his enterprise.

I know a person who works there (worked) - 30%;

I use (used) their products or services - 12%;

I often see their sign on buildings or cars - 7%;

Heard or read about their activities in the media - 5%;

In most cases, the enterprise is almost completely dependent on those who are engaged in the promotion and sale of products on the market.

Sales and service personnel must be trained to interact with consumers in the most, including extreme situations. The processes of promotion, sale and customer service require more personal involvement than is necessary in other activities. Very often, employees of the marketing and service departments of the enterprise act, figuratively speaking, as doctors who were asked for help in solving the problems that arose.

Sales associates must be able to achieve customer satisfaction and at the same time ensure profit for their firm. Good employees specializing in sales organization, in addition to their immediate professional duties, should be able to:

Analyze general and local statistical data;

Identify the potential of the target market in the sectoral and territorial context;

Correctly assess the current situation;

Monitor market dynamics;

Determine the prospects for production and commercial activities in the conditioned market;

Collect market information;

Develop effective approaches and select marketing tools for the implementation of operational plans and programs;

Look for effective ways and methods to promote and sell the company's products.

All of the qualities listed above cannot be realized without mastering the skills of marketing analysis. These skills are especially necessary for senior managers in sales management. Practice shows that when comparing the final results, a sales apparatus focused on the needs of the market, and not on a simple increase in sales, turns out to be effective.

Despite the fact that the actions of individual sellers are individual and dictated by a specific circumstance, at the same time, the organization of sales often requires teamwork, which is impossible without the support of employees of related departments of the enterprise.

From the point of view of consumers, the seller is the one who directly carries out the purchase and sale transaction. From the point of view of manufacturers, there is a complex approach to the interpretation of the concept of "seller".

Sellers can perform different roles in the process of promoting and selling the company's products. The combination of these roles largely depends on the specialization of the enterprise, its size, organizational structure, features of supply models, the specifics of buyers, competitive environment and other factors. But even if, in a single case, a certain employee of the enterprise's sales system is not directly involved in the acts of buying and selling goods or services to consumers, he is still considered one of the sellers, so the tasks in organizing more capacious processes related to the promotion of the company's products on the market and preparation of activities aimed at the implementation of the sale.

Sellers can be not only employees of sales services, but also support staff, employees associated with various forms of customer service (consumers).

In general, all employees involved in the receipt of orders for goods or services by the enterprise, that is, those who, to one degree or another, can be attributed to sellers, are divided into six types. This distribution is due to functional specialization in the commercial process:

1. "Applicants" orders. These are sellers who are responsible for receiving orders initiated by the enterprise. They can increase sales to active buyers, reconnect and enter into agreements with passive consumers, and attract new customers. More than others, this type of salesperson requires creativity and rare entrepreneurial qualities.

2. Order takers. These are employees associated with the reception, execution and accounting of orders for the sale of goods or services. Orders can come both at the initiative of buyers and at the initiative of manufacturers. Order receivers belong to the category of "sellers" due to the fact that in the process of processing and detailing orders received, they skillfully "advise" them to increase the initial volumes or expand the structure of these orders through additional, related products and services.

3. Order executors. These are employees who perform work and operations directly related to the sale and purchase processes (product packaging, loading, delivery to the destination, unloading, installation, adjustment, etc.). Very often, in addition to specific duties, they simultaneously play the role of sellers, since in the course of fulfilling orders they help to identify and highlight in the light necessary for the seller enterprise the nuances that are not known to the buyer or that he did not pay attention to before. These nuances can lead, as in the previous case, to an increase in volumes and an expansion of the purchase structure through the acquisition of additional and related products and / or services.

4. Service personnel. Practice shows that employees of the service departments of the seller enterprise play a huge role in the field of stimulating demand and activating sales. The importance of service workers is manifested in several aspects.

Secondly, a well-established service often contributes to repeated purchases from the same seller. According to studies, each re-purchase from the point of view of promoting products to the market costs the seller from 10 to 25 times cheaper than attracting a new buyer. In addition, the frequency of purchases doubles on average.

Thirdly, in the process of after-sales service, for example, technical equipment, buildings and structures, furniture, etc. a range of activities may be performed such as diagnostics, repairs, adjustments, provision of spare parts, refurbishment, maintenance operations, etc. spare parts. As a result, as observations in practice show, high-quality after-sales service contributes to the emergence of appropriate demand, which ensures an increase in sales to the seller from an average of 50% to 300%.

Based on the foregoing, the staff is rated as one of the most categories of "salespeople".

5. Sales agents-missionaries. This group of sellers is distinguished from others due to the specificity of their duties. Formally, their functions do not include the conclusion of a transaction. their purpose of a different kind is to try to convince buyers to recommend the goods or services of this enterprise to their acquaintances, customers, business partners. For example, architects who act as developers of various projects can recommend a reliable construction company to their clients. In turn, workers construction company they can recommend a good insurance company to their customers, and the employees of the insurance company can appoint their client, if necessary, the necessary expert organization, etc.

The chain of recommendations that generate consumers can be long. Tracking such chains, creating new ones and ensuring their effectiveness is not an easy task for missionary agents. Very often, missionary agents of various industry directions, supporting each other, act together, forming a kind of informal community, the mechanism of functioning of which is known only to them.

It should be noted that each of the presented types of sellers includes many of their varieties. At the same time, there are no clear boundaries between them within the type, since the variability of the market environment, the specifics of products and the production and commercial policy of the producer determine the role dynamics depending on the situation.

Omitting a detailed analysis of the types and types of sellers who create the sales staff of enterprises, let us dwell on the characteristics of the "applicants" of orders. This type of seller is active.

The most popular in practice are two approaches that characterize the mode of action of "applicants" of orders - this is "hunting" and "farming".

The sellers are called "hunters" and "farmers" respectively.

By "hunting" is meant attracting new customers, "farming" also involves increasing sales by developing relationships with consumers who have already become customers of the manufacturer of goods or services. The skills required for the first and second approach are different. Therefore, when selecting sales personnel, this circumstance must be taken into account. At a minimum, this means that it is necessary to determine in advance what qualities the workers of profiling approaches should possess and what is their ratio in the overall structure of "applicants" for orders.

"Hunters" must have perseverance and the ability to be prepared for losses. The peculiarities of the work make it necessary to come into contact with strangers who may not know or not fully realize their needs. Sometimes these people get nervous when a pushy salesman calls them on the phone or comes into their office.

There is an opinion that it is the "hunters" who sometimes contribute to the creation of a disappointing reputation in relation to sales agents ("field" sellers). This is partly true, but it must be borne in mind that the "hunters", in fact, are the pioneers. They create conditions and launch campaigns to implement innovations. "Hunters" get great pleasure from work, especially during the first order from a new client. Then they feel like winners, they want to continue the "victorious" procession, but at the same time they regret that not everyone knows about their successes.

"Farmers" are inclined to other tactics. They avoid selling innovation and prefer to work with well-established products. Usually "farmers" act slowly and do not show pressure and fuss to receive orders. their professionalism is manifested in something else - in preparing the base for a long time. They play a particularly important role in industrial marketing, as they have the art of forming long-term relationships between the producer and the buyer of goods (services). their advantage lies in the fact that they want to deeply understand the type of consumers, sometimes creating for themselves such a database that the buyer himself would be surprised.

The benefits of "farmers" are manifold. First, the order coming to the enterprise is a foregone conclusion. Secondly, they know their market well and have competitive information. In addition, they are able to maintain formal and informal relationships with customers and permanently "attach" them to the product manufacturer. At the same time, there are also negative aspects. In "farmers" who work for a long time at the same enterprise (in the same territory assigned to them, in the same market segment), sometimes a problem arises. its essence lies in the fact that such sellers begin to rely solely on old and trusted customers, while avoiding actively trying to find new ones. They get used to operating, as they say in marketing, in their "comfort zone" by calling familiar numbers, sending mail messages with regular addresses and visiting only well-known clients. The problem is exacerbated when "obsessed farmers" stop making any effort to find and attract prospective consumers.

The commercial success of an enterprise often depends on the structural association of "hunters" and "farmers". If the ratio is found correctly, then a balance is formed that is crucial for the promotion and sale of goods (services) to the target market, as well as a balance between the desire to hastily do business and move forward and the desire to secure the rear, adhering to the rule: "old friend (buyer ) is better than the new two".

The principles of building the organizational structure of the sales force can be different - according to the product principle, according to the territorial principle, according to buyers (consumers), and sometimes according to the phases of the sales process. To choose the most effective approach, the company must take into account a number of important heterogeneous market factors.

Particular attention should be paid to the so-called "field" sellers, that is, those categories of distributors who sell products through personal selling, telemarketing, direct mail.

A simple and common form of organizational construction of "field" sales personnel is a sales structure that operates on a territorial basis. It allows the company to better control the activities of sellers at minimal cost.

The number of "field" sellers is not necessarily equal to the number of territories. The territory is a conditional unit of control. For each of the units (territories), tasks are set for the promotion and sale of the company's products. Then, for each of them, the results are evaluated separately. Marketing managers can combine the work of several sellers in one territory.

The decision to "redistribute territories" can be caused by various factors. For example:

Creation of a new company, a new representative office or a new structural unit;

Mastering new models of offers, as a result of which the workload on the existing sales staff increases;

Reorganization of the sales service due to major changes that are taking place or are expected in the market environment, etc.

The procedure for determining territories begins with an analysis of the types and number of real and potential buyers (consumers) in the target market.

At the first stage, buyers are divided into categories according to their importance to the enterprise. The priority code is AA, then A, B, C, D are ranked lower. We emphasize that the criteria for classifying buyers and their status are determined by the goals and objectives of the enterprise.

At the same time, customers, who make up the bulk of the producer's business, can be dealt with by specially created for this group, and especially important customers for the company - directly by senior managers.

The table below provides an example of a set of criteria that can be used to classify buyers. In this case, the company is faced with the task of increasing the number and volume of sales.

Based on this, the most important customers (code AA) will be those that have good development prospects for enterprises-consumers - the growth of industrial and commercial activities, which means a rapid and significant increase in demand for goods or services; for physical consumers, improved welfare. Particular attention is paid to large customers.

At the second stage, the number of each type of customers in the target market is estimated. As a rule, the producer has a small number of customers in categories AA (perhaps even one or two), A and B. Together they make up about 20%. The rest of the customers belonging to categories C and D make up the majority. their number fluctuates at the level of about 80% ("Pareto's law").

At the third stage, standards are set for the sales staff of the producer according to the average frequency of contact with each type of customer (per year).

Then norms are determined for the average duration of contact for each type of buyer. It should be noted that customers of categories AA, A and B are recommended to devote more time. For example, category AA customers - an average of about 1.5 hours per week for each, category A customers - 1 hour per week for each, and category B customers - 0.5 hours per week. However, consumers of categories C and D should not be ignored. Very often, among them there are subjects that have good prospects. It is very important not to miss such buyers.

At the fourth stage, the total time required to contact all potential customers during the year is calculated. Calculations are carried out by the method of direct counting. The number of customers of each type is multiplied by the length of time stipulated for each category and per potential customer. Then the results are summed up. As a result, the total time required to complete the tasks assigned to the sales department of the enterprise is determined.

At the fifth stage, the required number of "field" sellers appears. To do this, the total time required to contact all potential consumers of the target market is divided by the time from a personal sale, which has at its disposal (on average) one seller. Let's add that in practice "field" sellers spend about 50% of their working time directly on sales.

Under market conditions, marketing management should include the following mandatory components:

Creation of competitive goods, services, integrated models of offers and service systems;

Conducting a pricing policy that is not only beneficial for the enterprise, but also acceptable to consumers, resellers and allies in strategic alliances;

Ensuring the availability of customers and business partners to the company's products using adaptive marketing and logistics communication systems;

Establishment, support and development of formal and informal connections, which are carried out mainly by sales personnel.

From the standpoint of modern approaches to business technology, there should be nothing accidental and uncontrollable in the formation and maintenance of production and commercial relations between an enterprise, its consumers, various intermediaries and allies in strategic alliances. That is why, in order to ensure the success of the enterprise, the selection, training and stimulation of sales personnel is of paramount importance.

The development of market relations largely depends on the activity and competence of the sales staff. Several illustrative examples can be cited as justification.

The first is from the experience of the well-known marketer A. Hay: "... many years ago I was invited to the corporation" Consolidated Freightways "(" CF ") - a huge company that provides transport services and material and technical supply of large enterprises. In the early 1980s, when CIAIA began to deregulate road and air travel, the corporation faced a new level of competition and was forced to look for new opportunities. Consolidated Freightways ("CF") decided to get serious about marketing, and I was invited to help set up the department. We have put together a marketing program, communicated our research results and latest plans to the company's affiliates, conducted an active advertising campaign and a series of public opinion-building events, developed a sophisticated telemarketing system, direct mail programs, new product launches, and the like.

However, I soon began to realize that all these innovations did not bring much success. Try as we might, we have not succeeded in changing the desire of consumers to do business exclusively with sales personnel through personal contacts. Customers preferred "CF" over other competitors for one simple reason: they liked direct contact with corporate salespeople. In doing so, they basically ignored other marketing channels, and there was nothing we could do about it. For example, if a client had a problem, the first person they contacted was the company's sales agent, who immediately sorted out the misunderstandings. Since the relationship with the sales force was so important to our customers, our entire marketing program had to be built around maintaining that relationship."

Another example comes from the work experience of B. Sigman, no less famous and experienced in the field of marketing and management, from the company "Advanced Systems Group", which provides its customers with new equipment, working with a number of leasing companies. She says: "Our supplier partners have much more in common than any more or less significant differences. Therefore, the choice is often determined only by the personal qualities of the staff. You stop at those who are attentive, with whom it is simply a pleasure to do business."

Many such revelations from highly qualified and experienced marketers and managers from various industries and commercial activities indicate that one of the decisive factors in a successful business is the nature of relationships with consumers and business partners.

The category of employees of promotion and sales services who create a corporate marketing system includes specialists who perform various functions. In the field of organizing commercial relations and sales, the following categories of employees of the enterprise are most often found: sales agents, contactees - "negotiators", trade consultants, telemarketing operators, field representatives, marketing specialists of various career guidance and directly sellers.

The main responsibilities to which the activities of the listed categories of trade workers are reduced are as follows:

1. Search and attraction of new prospective consumers and resellers.
2. Development of relations with active (cash) consumers, intermediaries and allies in strategic alliances.
3. Maintaining relationships with passive (former but potential) consumers, intermediaries and allies in strategic alliances.
4. Preparation, organization and completion of each individual purchase and sale process, which includes: targeted study of a particular consumer; establishing contacts in the process of negotiations with him; arguments in favor of the buyer making a positive decision; objections; making a deal.
5. Provision of additional and related business services that are not included in contractual obligations, for example: information support for buyers, advising them like that.
6. Conducting research of the target market in the sectoral, territorial context.
7. Collection of information necessary for current activities and development of forecasts.
8. Drawing up reports on the results of visits, telemarketing, written contacts.
9. Advertising and formation of the image of the enterprise and its products in the consumer and business environment.
10. Search for opportunities to form strategic alliances with other producers of goods and services for the joint promotion and sale of related products.
11. Implementation of activities in the field of formation and development of public relations.

Effective management of sales personnel at the enterprise leads to the stages, consistency and complexity of the system of internal company communications and relations. Schematically, the sales personnel management system, regardless of the profile specialization of the enterprise, is presented in fig. 5.11.

Rice. 5.11. Generalized scheme of the sales personnel management system in enterprises

It is appropriate to note that an interesting pattern is observed in practice: on average, 80% of the entire business of producers of goods and services falls, as a rule, on 20% of the consumers of their target markets. This circumstance, in fact, is one of the manifestations of the "Pareto law" in entrepreneurship.

This circumstance is of great importance due to the fact that in many enterprises it helps to specify the strategic tasks for the sales staff in general and for each employee, in particular those that determine the nature of functional activity.

So, for example, in some firms and companies, sales department employees are recommended to devote approximately 80% of their time to existing (active and passive) customers, and 20% to finding and establishing contacts in the target market with new customers, or to devote about 80% of their time to promoting and selling mastered enterprise products, and 20% - search and work with new products (another saying of the "Pareto law").

The specificity of various types of products and markets (especially of a consumer nature) leads to the fact that in addition to the technical and commercial training of personnel necessary for promoting and selling the company's products, great importance is attached to issues of interpersonal relations and psychology in the process of activity. This is one of the key features of marketing as a concept and management as a field of professional activity.

Individual enterprises unprofessionally ignore the "human factor". For this reason, their successes are much "more modest" than they could be. The professional approach lies in the fact that everyone in the enterprise - from top marketing managers to an ordinary employee of marketing departments - must understand the critical role of interpersonal communication.

It is known that sales workers and masters of pre- and after-sales service, providing buyers with information, advising consumers, demonstrating goods, performing after-sales service, etc., often work not only as sellers and service providers, but also as their own kind, confidants of consumers. Buyers are more frank with them, they are the first to respond to consumer complaints and can advise something not officially, but "humanly". Often, representatives of the enterprise are the only contactees who connect the consumer with the producer of goods or services. Therefore, it is on them that the buyer's perception of the image of the company and its attitude towards consumers depends.

The peculiarity of the activity of employees of marketing departments is that each employee who belongs to the sales and service personnel is at the same time a marketer-universal for his enterprise.

Renowned marketer P. Krendell claims that the company's employees are its best agents and its best advertisement. He refers to the rating data of the decisive factors influencing the choice of the seller in the event of a need for a particular product. Here is the content of this rating:

I know a person who works there (worked) - 30%;

I use (used) their products or services - 12%;

I often see their sign on buildings or cars - 7%;

Heard or read about their activities in the media - 5%;

In most cases, the enterprise is almost completely dependent on those people who are engaged in the promotion and sale of products on the market.

Sales and service personnel must be trained to interact with consumers in a wide variety of situations, including extreme situations. The processes of promotion, sale and customer service require more personal involvement than is necessary in other activities. Very often, employees of the marketing and service departments of the enterprise act, figuratively speaking, in the role of doctors, who were asked for help to solve the problems that have arisen.

Sales associates must be able to achieve customer satisfaction and at the same time ensure profit for their firm. Good employees specializing in sales organization, in addition to their immediate professional duties, should be able to:

Analyze general and local statistical data;

Identify the potential of the target market in the sectoral and territorial context;

Correctly assess the current situation;

Monitor market dynamics;

Determine the prospects for production and commercial activities in the conditioned market;

Collect market information;

Develop effective approaches and select marketing tools for the implementation of operational plans and programs;

Look for effective ways and methods to promote and sell the company's products.

All of the above qualities cannot be realized without mastering the skills of marketing analysis. These skills are especially necessary for senior managers in sales management. Practice shows that when comparing the final results, a sales apparatus focused on the needs of the market, and not on a simple increase in sales, turns out to be effective.

Despite the fact that the actions of individual sellers are individual and dictated by a specific circumstance, at the same time, the organization of sales often requires teamwork, which is impossible without the support of employees of related departments of the enterprise.

From the point of view of consumers, the seller is the one who directly carries out the purchase and sale transaction. From the point of view of manufacturers, there is a complex approach to the interpretation of the concept of "seller".

Sellers can perform various roles in the process of promoting and selling the company's products. The combination of these roles largely depends on the specialization of the enterprise, its size, type of organizational structure, features of supply models, the specifics of customers, the competitive environment and other factors. But even if, in a single case, a certain employee of the sales system of an enterprise is not directly involved in the acts of buying and selling goods or services to consumers, he is still considered one of the sellers, since he is infatuated with the organization of more capacious processes related to the promotion of the company's products to the market. and preparation of activities aimed at the implementation of the sale.

Sellers can be not only employees of sales services, but also support staff, employees associated with various forms of customer service (consumers).

An overview of all employees involved in the receipt of orders for goods or services by the enterprise, that is, those who, to one degree or another, can be attributed to sellers, are divided into six types. This distribution is due to functional specialization in the commercial process:

1. "Applicants" orders. These are sellers who are responsible for receiving orders initiated by the enterprise. They can increase sales to active buyers, reconnect and enter into agreements with passive consumers, and attract new customers. More than others, this type of salesperson needs creativity and rare entrepreneurial qualities.

2. Order receivers. These are employees associated with the reception, execution and accounting of orders for the sale of goods or services. Orders can come both at the initiative of buyers and at the initiative of manufacturers. Order receivers belong to the category of "sellers" due to the fact that in the process of processing and detailing orders of incoming ones, they skillfully "advising" them help to increase the initial volumes or expand the structure of these orders through additional, related products and services.

3. Order executors. These are employees who perform work and operations directly related to the sale and purchase processes (product packaging, loading, delivery to the destination, unloading, installation, configuration, etc.). Very often, in addition to specific duties, they simultaneously perform the role of sellers, since in the course of fulfilling orders they help to identify and highlight in the light necessary for the seller enterprise the nuances that are not known to the buyer or that he did not pay attention to before. These nuances can lead, as in the previous case, to an increase in volumes and an expansion of the purchase structure through the acquisition of additional and related products and / or services.

4. Service personnel. Practice shows that employees of the service departments of the seller enterprise play a huge role in the field of stimulating demand and activating sales. The importance of service workers is manifested in several aspects.

First, thanks to them, in many cases, buyers have a feeling of satisfaction or dissatisfaction with the purchase. Satisfied customers are the best advertising, and dissatisfied customers are bad advertising. they cannot be suspected of being biased against the selling enterprise. Satisfied customers, according to F. Kotler, will share their impressions with an average of 11 potential customers, and dissatisfied customers with 3 (according to other sources - with 7). Thus, good pre-sales and after-sales service can significantly increase the volume of sales of goods and services of the manufacturer.

Secondly, a well-established service often encourages repeat purchases from the same seller. According to the studies carried out, each repeated purchase from the point of view of promoting products to the market costs the seller from 10 to 25 times cheaper than attracting a new buyer. In addition, the frequency of purchases doubles on average.

Thirdly, in the process of after-sales service, for example, technical equipment, buildings and structures, furniture, etc. a number of activities such as diagnostics, repairs, adjustments, provision of spare parts, restoration, maintenance operations, and the like can be performed. In the course of this work, service employees provide users with specific and stimulating information that may lead to a series of purchases - a new product, service, spare parts. As a result, as observations in practice show, high-quality after-sales service contributes to the emergence of appropriate demand, which ensures an increase in sales to the seller from an average of 50% to 300%.

Based on the foregoing, service personnel is rated as one of the most categories of "sellers".

5. Sales support staff. These are employees who usually do not directly sell the manufacturer's products, but facilitate efforts to promote and sell them. In addition, in order to attract customers, it is their responsibility to provide potential customers with some services that facilitate purchase decisions. They are directly related to the stimulation of demand and the organization of sales, but indirectly to the very processes of buying and selling. The range of activity of this type of workers is very wide. This is the study of the demand and needs of buyers, the provision of comprehensive information to potential and real consumers, advertising, the formation of the image of the manufacturer and its products, and the like.

5. Sales agents-missionaries. This group of sellers is distinguished from others due to the specifics of their duties. Formally, their function does not include making a deal. their purpose is of a different kind - to try to convince buyers to recommend the goods or services of this enterprise to their acquaintances, customers, business partners. For example, architects acting as developers of various projects can recommend a reliable construction company to their clients. In turn, employees of the construction company can recommend a good insurance company to their customers, and employees of the insurance company can appoint the right expert organization to their client, if necessary, etc.

The chain of recommendations that generate consumers can be long. Tracking such chains, creating new ones and ensuring their vivacity is not an easy task for missionary agents. Very often, missionary agents of various branches, supporting each other, act together, forming a certain informal community, the functioning mechanism of which is known only to them.

It should be noted that each of the presented types of sellers includes many of their varieties. At the same time, there are no clear boundaries between them within the type, since the variability of the market environment, the specifics of products and the production and commercial policy of the producer determine the role dynamics depending on the situation.

Omitting a detailed analysis of the types and types of sellers who create the sales staff of enterprises, let us dwell on the characteristics of the "applicants" of orders. This type of seller is active.

The most popular in practice are two approaches that characterize the mode of action of the "applicants" of orders - this is "hunting" and "farming".

The sellers are called "hunters" and "farmers" respectively.

By "hunting" is meant attracting new customers, "farming" also involves increasing sales by developing relationships with consumers who have already become customers of the manufacturer of goods or services. The skills required for the first and second approach are different. Therefore, when selecting sales personnel, this circumstance must be taken into account. At a minimum, this means that it is necessary to determine in advance what qualities the workers of profiling approaches should possess and what is their ratio in the overall structure of "applicants" for orders.

"Hunters" must have perseverance and the ability to be prepared for losses. The nature of the job forces them to come into contact with strangers who may not know or be fully aware of their needs. Sometimes these people get nervous when a pushy salesman calls them on the phone or comes into their office.

Since the "hunters" are often given little time, they have to work quickly. At the stage of completion of negotiations (communication with a potential buyer), if there are complications with the sale of products or the decision-making process is delayed, they experience dissatisfaction, which is not always possible to hide. This situation arises because they are very good advertisers and in the process of negotiating they are able to skillfully "process" the client. Feeling this, before taking the last step towards concluding an agreement, a potential buyer may begin to doubt and therefore wants to make sure once again whether he really needs the offered goods (services) and how justified the seller's promises will be.

There is an opinion that it is the "hunters" who sometimes contribute to the creation of a disappointing reputation in relation to sales agents ("field" sellers). This is partly true, but it must be borne in mind that the "hunters", in fact, are pioneers. They create conditions and launch campaigns to implement innovations. "Hunters" get great pleasure from work, especially when they receive the first order from a new client. Then they feel like winners, they want to continue the "victorious" procession, but at the same time they regret that not everyone knows about their successes.

"Farmers" are inclined to other tactics. They avoid selling innovation and prefer to work with well-established products. Usually "farmers" act slowly and do not show pressure and fuss to receive orders. their professionalism is manifested in something else - in preparing the base for a long time. They play a particularly important role in industrial marketing, as they have the art of forming long-term relationships between the producer and the buyer of goods (services). their advantage lies in the fact that they seek to deeply understand the type of consumers, sometimes creating for themselves such a database that the buyer himself would be surprised. The benefits of "farmers" are manifold. First, the orders received by the enterprise are predictable. Second, they know their market well and have competitive information. In addition, they are able to maintain formal and informal relationships with customers and permanently "attach" them to the product manufacturer. At the same time, there are also negative aspects. In "farmers" who work for a long time at the same enterprise (in the same territory assigned to them, in the same market segment), sometimes a problem arises. its essence lies in the fact that such sellers begin to rely solely on old and trusted customers, while avoiding actively trying to find new ones. They get used to acting, as they say in marketing, in their "comfort zone" by calling familiar numbers, sending mail messages to familiar addresses and visiting only well-known customers. The problem is exacerbated when "obsessed farmers" stop making any effort to find and attract prospective consumers.

The commercial success of an enterprise often depends on the structural combination of "hunters" and "farmers". If the ratio is found correctly, then a balance is formed that is crucial for the promotion and sale of goods (services) to the target market, as well as a balance between the desire to hastily do business and move forward and the desire to secure the rear, following the rules: "old friend (buyer ) is better than the new two".

The principles of building the organizational structure of the sales force can be different - according to the commodity principle, according to the territorial principle, according to buyers (consumers), and sometimes also according to the phases of the sales process. To choose the most effective approach, the company must take into account a number of important heterogeneous market factors.

Particular attention should be given to the so-called "field" sellers, that is, those categories of distributors who sell products through personal selling, telemarketing, direct mail.

A simple and widespread form of organizational construction of "field" sales personnel is a sales structure that operates according to the territorial principle. It allows the company to better control the activities of sellers at minimal cost.

The number of "field" sellers does not have to be equal to the number of territories. The territory is a conditional unit of control. For each of the units (territories), tasks are set for the promotion and sale of the company's products. Then, for each of them, the results are evaluated separately. Marketing managers can combine the work of several sellers in one territory.

The decision to "redistribute territories" can be caused by various factors. For example:

Creation of a new company, a new representative office or a new structural unit;

Mastering new models of offers, as a result of which the workload on the existing sales staff increases;

Reorganization of the sales service due to major changes that occur or are expected in the market environment, and the like.

In table. 5.1 presents the technology for determining territories for the promotion and sale of industrial goods and business services of a conditional manufacturer.

The procedure for determining territories begins with an analysis of the types and number of real and potential buyers (consumers) in the target market.

At the first stage, buyers are divided into categories according to their importance to the enterprise. The priority code is AA, then A, B, C, D are ranked lower. We emphasize that the criteria for classifying buyers and their status are determined by the goals and objectives of the enterprise.

At the same time, customers, which make up the bulk of the producer's business, can be dealt with by specially created groups, and especially important customers for the company - directly by senior managers.

The table below provides an example of a set of criteria that can be used to classify buyers. In this case, the company is faced with the task of increasing the number and volume of sales.

Table 5.1

Determination of the workload in the service area of ​​the REFERENCE MANUFACTURER

1. Categorize all real and potential buyers
Current coverage	Competitor activity	The amount of sale (demand)
		big		average		small
		Height:		Height:		Height:
		high	low	high	low	high	low
High	High	AND	AND	AND	AT	AT	FROM
	Low	AND	AT	AT	FROM	With	d
Low	High	AND	AT	AT	FROM	With	d
	Low	AA	AND	AND	AT	AT	With
2. Determine the time spent on contacts and the total number of contacts per year.
Calculate the total time, total number of customers and hours per year for each type of customer.
4. Based on these calculations of sellers, determine the required number of "field"
Note. Gradation of customers from AA to D: By sales volume (what contribution they make to the overall profit of the enterprise) Ascending (how quickly their demand grows) By coverage (what share of their business is in the enterprise) By competitor activity
The sales service has to pay special attention to institutional buyers (consumers).

Based on this, the most important customers (code AA) will be those that have at their disposal good development prospects for consumer enterprises - growth in industrial and commercial activities, which means a rapid and significant increase in demand for goods or services; for physical consumers, improved welfare. Particular attention is paid to large customers.

At the second stage, the number of each type of customers in the target market is estimated. As a rule, the producer has a small number of customers in categories AA (perhaps even one or two), A and B. Together they make up about 20%. The rest of the customers belonging to categories C and D make up the majority. their number fluctuates at the level of about 80% ("Pareto's law").

At the third stage, standards are set for the sales staff of the producer according to the average frequency of contact with each type of customer (per year).

Then norms are determined for the average duration of contact for each type of buyer. It should be noted that customers of categories AA, A and B are recommended to devote more time. For example, category AA customers average about 1.5 hours per week each, category A customers 1:00 per week each, and category B customers 0.5 hours per week. However, consumers of categories C and D should not be ignored. Very often, among them there are subjects that have good prospects. It is very important not to miss such buyers.

At the fourth stage, the total time required to contact all potential customers during the year is calculated. Calculations are carried out by the method of direct counting. The number of customers of each type is multiplied by the length of time stipulated for each category and per potential customer. Then the results are summed up. As a result, the total time required to complete the tasks assigned to the sales department of the enterprise is determined.

At the fifth stage, the required number of "field" sellers is found. To do this, the total time required to contact all potential consumers of the target market is divided by the time from a personal sale, which has at its disposal (on average) one seller. Let's add that in practice "field" sellers spend about 50% of their working time directly on sales.

The commodity producer has a total of 500 consumers (of all types). The total time required for contacts with them is 10,000 hours per year (see 2nd, 3rd stages). Each "field" sales employee of the enterprise devotes directly to sales about 22 hours a week of pure time. Multiplying this by an average of 48 weeks (minus vacations, sick days, holidays, and the like) results in 1,056 hours of total sales time per year per salesperson. Further, dividing 10,000 hours by 1056 hours, we get 9.46. Anticipating a possible increase in sales, and therefore an increase in the burden on sellers, it can be assumed that 10 "field" sellers will be needed to cover this market.

The solution to the problem of assigning territories to specific sellers should be based on the needs of the territories and the abilities of "field" sellers. It is clear that not all of them have the same experience, abilities, connections, advantages or education. It is desirable to select territories for them in such a way as to ensure the maximum use of their skills and individual abilities, as well as the optimal level of interaction with potential buyers.

In the field of sales personnel management, the management's constant concern for improving the efficiency of the "field" seller is of great importance. The main limiting factor in increasing this kind of efficiency is the time intervals between visits to consumers. If potential customers are located close, then the seller can make several visits per day. Otherwise, the productive work of the "field" seller is reduced.

Most producers in the capital goods market and many producers of goods and services of a consumer nature have their own generally accepted territories for the sale of services. their value depends on the type of products sold by the concentration of customers, their characteristics, transport network, and the like. In recent years, computer programs have become very popular in developed countries, which help to determine the optimal territories for minimizing travel, balancing workload and maximizing profits.

A change in the size of the territories assigned to individual "field" sellers is a serious event, as it violates

well-established relationships between sales staff and customers and may have a negative impact on other territories. At the same time, market circumstances often call for corrective measures in relation to sales territories.

Due to the fact that the market is far from saturated among many types and types of goods and services, fast-growing firms are considered normal. Therefore, it is worth dwelling on some of the problems that may arise in their management of "field" sales personnel and sales. Fast-growing industrial and intermediary firms have to constantly redraw territorial boundaries due to increased sales. Under such circumstances, they must be extremely careful both in their internal sales management policy and in their external sales management policy.

Before changing the territorial contours, you need to weigh everything so as not to spoil the relationship with your experienced sales staff, who have put a lot of time and effort into developing the consumer environment - creating formal and informal relationships with their charges.

It should be noted that in practice there is another course of events. Parallel sales departments of an enterprise-seller, organized according to a territorial principle, can not only operate independently on the market, but also become active in the sphere of rivalry between themselves until mutual absorption of one another or merger. We are talking about the seizure of territory, poaching consumers and even sales staff from each other. That is, there may be manifestations of fierce internal firm competition between several divisions. As in the "big" (intercompany) competition, the strongest and the best in terms of commercial results also win here. Such confrontation not only suits the management of some firms, but is also encouraged by them. The degree of independence of parallel marketing services and the prospects for their development are determined by the organizational policy pursued by the management of the enterprise. Not wanting to take risks, the administration may allow parallel distribution services to function until it becomes clear that acquisitions or mergers are ripe, that further separation of functional activities becomes economically justified.

It is also possible that as a result of the absorption of clientele, territory, poaching of specialists and other actions of the enterprise, it will gain a stronger foothold in the conditioned market than the rival structure. Being confident in the stability of the positions occupied by a certain division, the management of the enterprise can "twist" a not entirely ethical operation - to offer its potential competitor, who is attracted by the market segment, part of his business and sell him a division - a "doll". With this maneuver, the enterprise can achieve several goals. First, it's not bad to make money on structural "waste" - a spent organizational resource. Secondly, it is advantageous to get rid of the "agonizing" subdivision, which lost in the internal corporate struggle, by presenting it as a kind of commodity in the form of an independent, "well-organized", "promising" economic entity. Thirdly, to create big problems for a competitor, which, in addition to the costs incurred to acquire an unprofitable structure, must incur additional costs to raise it. In this regard, the competitor's competitive activity can be suspended for a sufficiently long period, during which the company can further strengthen its position in the specified segment. As a result, the acquisition of a competitor may result in the loss of the desired market sector for him.

It should be noted that in a market that is characterized as growing, manufacturers for various reasons, sometimes beyond their control, are often unable to determine the number and specifics of all their potential consumers. In such a situation, producers often resort to aggressive sales and sales management policies. The essence of an aggressive policy is to increase the number of sellers until the profit they bring ceases to justify their existence. Thus, in practice, the real potential of the market and the boundaries of territorial coverage are tested.

The construction of the organizational structure of the sales personnel of the enterprise according to the commodity principle provides for a good knowledge of the products by the employees-sellers. This approach is applied in the following cases:

1. the complex of goods and services that the enterprise sells in the target market is complex and heterogeneous. A wide range of goods and services allows the manufacturer to offer consumers many different options for product and service models, increases its entrepreneurial resilience in crisis situations;
2. the company's products are so specialized in scientific, technical or other aspects or so complex in composition that its promotion and implementation requires the involvement of various specialists and the development of recommendations from various experts. In this case, the qualifications and experience of salespeople and support staff play an important role.

Thus, the goals and nature of the production and commercial activities of manufacturers, market features, product specifics and the range and assortment structure of offers often force enterprises to create branches, representative offices and separate sales divisions. In this regard, in marketing, in relation to the creation of partially separate sales and distribution divisions, they are treated as a normal phenomenon.

At the same time, an insufficiently thought out and debugged management system can lead to duplication of work. For example, on the same day, the same consumer may be disturbed by several sellers at once, who offer, although different goods (services), but of the same enterprise. This irritates potential buyers and negatively affects their attitude towards the enterprise and its products, which, in turn, damages the image of the company. In addition, unjustified confrontation flares up between the personnel of various sales and marketing divisions of the enterprise in the same territory. Ultimately, it turns out that the company incurs additional costs for the organization of sales, and the effect can be directly opposite. Therefore, when resorting to the management of sales personnel and selling on a commodity basis, it is important to carefully consider all organizational, functional and psychological aspects.

The formation of the organizational structure of sales personnel on the basis of the principle of distribution by consumers, as a rule, is carried out at enterprises that produce industrial goods or business services. The creation of this kind of trade and marketing structures involves a number of approaches. For example, you can distribute consumers according to the following criteria:

By industry;

By purchase size (large, medium, small)

By priority (especially important, important, permanent, non-permanent, etc.);

According to real and potential (new), etc.

The main advantage of the specialization of sales personnel for consumers is that each salesperson or a separate group of them can study the specific needs and behavior of their customers much deeper, establish close contacts with them, and respond faster to changes in all factors that influence.

The disadvantage of this approach is that the group of wards of a certain seller may include a wide variety of consumers, and this, accordingly, requires a wide creative diversity in the activities of this "field" worker. Another negative point is manifested in cases where customers who are part of a conditioned group are located over a large area. This forces curators to move around a lot.

An important role in the organization and management of the sales staff is played by the system of internal corporate relationships, as well as the policy of attracting the required number of salespeople, in particular, additional, auxiliary, freelance employees and stimulating them.

It is quite obvious that the enterprise in connection with this should develop an appropriate system of remuneration. Moreover, the level of remuneration must be linked to the current market prices for certain goods (services) and for specialists of appropriate qualifications.

Considering that these issues can be coordinated and resolved in a certain way, we focus on other circumstances. In marketing management, the following are of great importance:

Formation of an effective flexible system for attracting, selecting and training sales workers;

Development of effective ways to control the work of sales personnel;

The use of adequate methods for evaluating the results of the work of sales staff, especially those that belong to the "field" category.

At the heart of the effective work of the sales staff of the enterprise is a careful selection of capable, promising employees. Hiring unpromising salespeople results in losses for the enterprise in three main areas: loss of time, effort and money to train such an employee; losses incurred by the enterprise as a result of a lost sale, which could have occurred in the case of the highest competence of the employee; direct losses incurred by the enterprise through an incapable employee who does not justify the cost of his official maintenance.

The problem of recruitment would not be so urgent if it had a simple solution. Psychologists and HR professionals in many countries spend huge amounts of money trying to figure out ways to identify good and bad, promising and unpromising, able and incapable candidates.

In this case, qualification plays an important, but not decisive role. After all, a beginner can be taught, helped to reach his potential. The stumbling block is that those involved in the selection themselves do not always know or are not fully aware of what traits and their combinations to look for in candidates. Many managers only intuitively imagine what qualities a good salesperson should have. It would seem that when selecting candidates, preference should be given to those who have good communication skills, aggressiveness, energy, etc. At the same time, practice shows that many salespeople achieve good results by being shy, polite and not very energetic. Among successful sellers there are men and women, old and young, tall and short, beautiful and "so-so", who can or cannot speak beautifully, neat or untidy. The manager's task is to find such a specific combination of characteristics that would indicate the ability and good prospects of the candidate to master the art of promoting and selling the goods and services of the enterprise.

A number of studies have shown that men and women have different attitudes towards commercial activities. For most women entrepreneurs, consumers are the main source of job satisfaction. Men are more likely to say that consumers are the main source of disappointment in their activities! A radically different outlook towards consumers is the main reason that explains the trend in the number of women in the sales force of many companies. This trend is especially evident in the service sector.

It is clear that there are different consumers and different situations that can cause different reactions from different sellers. Therefore, in the context of the diversity and uncertainty of commercial activity, any industrial and commercial enterprise, both consumer and business, is interested in having such a sales staff, whose employees consider it a burden, but would find satisfaction from their work and incentives for creative manifestations in communication with consumers.

Search for promising employees for marketing system the enterprise in general and directly for the sales departments in particular is carried out on the basis of certain criteria, previously developed by management. Various methods are used in the search for applicants.

For example:

Data collection among own employees;

Attraction of specialized firms with employment;

Placement of advertisements in the press;

Establishing contacts with graduates of educational institutions and the like.

The selection technology itself can also be different.

For example:

Formal and informal conversations;

Testing;

Short-term or long-term testing;

Conducting business games, etc.

Now business games are gaining more and more popularity. This method is considered by many enterprises as a universal approach in the selection of personnel for sales personnel.

Example. The Donetsk company "New Technologies Plus" is constantly looking for capable salespeople, sales agents and commercial consultants who could not only attract new customers, but also correspond to the corporate culture and philosophy that have been formed in the company. After previous selections based on interviews and aptitude tests, the remaining applicants pass the main test. they are invited to give an hour-long presentation to the company's employees. The specificity lies in the fact that, firstly, the presentation should reflect modern market, social and cultural trends, and secondly, how thematic tasks are chosen that are not related to computers and software for them, the implementation of which the company specializes in .

The purpose of such tests is not to assess the special knowledge of applicants, but the skills they have acquired and the degree of development of their abilities in presentations, as well as other public and commercial events. Such rehearsals and trainings are multifunctional in nature. On the one hand, company employees feel involved in the formation of their team, and on the other hand, those who are examined get an idea of ​​the nature, requirements and interests of their future colleagues. Game presentations sometimes turn into real shows that turn work into leisure. In addition, they are useful even for experienced salespeople, as they help them learn something new for themselves, discover unexpected arguments that can be used in their work, and identify original approaches to the processes of promoting and selling goods and services on the market.

Regarding interviews, it can be noted that they perform several functions. First of all, a number of issues related to a specific applicant that are of interest to the employer are preliminarily clarified. But at the same time, in parallel with the collection of formal information in the course of a conversation, they often look closely at a person, she smiles and how she smiles. Many enterprises adhere to a specific requirement, the essence of which is of a professional commercial nature. It lies in the fact that, with all the other virtues of the applicant, he is expelled without regret if in the process of communication he is not inclined to smile or the candidate has an unattractive smile. The fact is that in the marketing environment, especially in the field of trade and sales, they prefer to work with those who initially look like a completely happy, benevolent person. "Natural" cordiality is very important in any activity, but especially in the field of commerce, in which the volume of transactions can be in the millions.

In practice, among employers, unfortunately, there is a fairly widespread opinion that for hired applicants as future sellers, the main issues are those that relate to forms of material remuneration. This view is refuted by numerous studies. Research findings and analyzes of the most attractive features of the sales profession show that sales methods and independence attract people much more than possible earnings. At the same time, the independence of employees associated with the sale is among the most valuable criteria for people to choose the appropriate profession. Research on this topic contains a number of practical and psychological justifications. They confirm the importance that marketing and sales managers should carefully identify the reasons that motivate people to associate their work activities with sales-oriented professions, taking into account industry specifics and characteristics of the implemented one. Managers involved in human resources, marketing and sales management in an enterprise need to develop hiring strategies that reflect the indicated desires of applicants.

Applicants selected to work in marketing departments, especially those who start their careers in the field of commerce in sales, are eligible to take an appropriate training course before taking up their duties. In some enterprises, referring to the turnover of sales personnel, they consider training costs as redundancy and even as losses. However, if training is not carried out, then the qualifications of employees will remain at a low level or will grow very slowly. From the very beginning, conditions are created for the low efficiency of the daily work of sellers. At the same time, management does not have the moral right to demand an increase in the return on their functional activities and commercial contacts. As practice shows, staff turnover increases even more.

If the leaders of the enterprise hire a specific person as a seller and set tasks for her: to find profitable buyers (consumers) of certain products; establish productive contacts with them; receive relevant orders; to establish good relationships, etc., then they must be consistent and provide the sales employee with appropriate training, which, firstly, meets the requirements for him, and, secondly, after which he will be able to do the job, if not brilliantly Well, at least it's normal. It often happens that well-organized training with approbation of skills in practical conditions can be an important factor in successful work than the presence of certain personal qualities. In the field of marketing management and implementation, of course, it is more profitable to bear the costs of organizing the training of sales personnel than to find and attract sellers of nuggets.

The objectives of the training are:

1. Familiarization of the new sales employee with the enterprise. This is the first part of the training course. It can be devoted to the study of the history of the enterprise, corporate philosophy, culture, policy, its goals, objectives, organizational structure and the management system adopted on it. Its leaders, financial system, structure of production capacities and their potential, products - assortment, main goods or services, composition and principles of modulation of complex offers, etc. are characterized. Part of the information about the dynamics of sales volumes and the main factors that influence this are also disclosed. .

2. Acquaintance with the range of products.

3. Studying the production technology of the enterprise's products. The strengths and weaknesses of the products of the enterprise and its competitors are considered and discussed.

4. Gaining knowledge about the characteristics of the consumer and competitive environment. Characteristics of various types of customers for the company's products are given. Their needs, purchasing motives, consumer expectations and the degree of their validity, forms of behavior and decision-making mechanisms are considered. The conceptual attitudes of the enterprise, its strategies in the sectoral, territorial and target markets in relation to products, prices, quality, as well as in relation to consumers and competitors are explained. Examples of tactical actions depending on the emerging situations are given. Existing and potential competitors are being studied, ways of dealing with them, obtaining information about them the necessary information and misinforming rivals.

5. Training of sales personnel in the art of promoting and selling goods and services of the enterprise, the ability to maintain relationships with consumers. Provides knowledge on developing and implementing effective sales presentations. Techniques for preparing and conducting negotiations are being mastered. Business games are held to find convincing arguments in favor of each type of product, service, individual elements of complex proposal models. Develop skills to overcome customer objections. Methods for finding compromises and optimizing solutions are highlighted.

6. Familiarization of employees of sales departments with the peculiarities of their work and related responsibilities. For example, the question of how to effectively allocate time and effort to work with active and passive consumers, how to use office supplies, equipment, amounts of money that are allocated, how to draw up reports, develop rational routes for the movement of marketing agents and distribution channels, etc.

In the process of learning, the most "exotic" tasks can be solved. For example, the French marketer J. Croman believes that one of the first lessons of the training program for sales personnel should be teaching the handshake technique. Referring to his experience, he assures that both the energy and the mood that the seller conveys to a potential buyer during a handshake can play a decisive role. The rules of business etiquette are indeed very important, they should be known, especially to those who own negotiations with foreign partners. The fact is that the traditions and norms of behavior among entrepreneurs in the Far Eastern countries, the Arab world, Europe, North and South America differ significantly. Often, without knowing it, you can offend the buyer with some gesture or word and thereby disrupt a deal that is quite beneficial for both parties.

Of great importance are the traditions of the company, obliging employees of sales departments to help each other. In practice, such a form of mutual assistance as mentoring has proven itself well. It is very good when a new employee is paired with an experienced professional. Together they can develop action plans, discuss situations that have arisen, visit consumers, and negotiate. The salesman, who starts his career, gets the opportunity to watch a "pro" who will help with advice, show "how it's done", explain "what is good and what is bad." Partners often become attached to each other and continue to communicate in an informal setting. It is worth noting that the mentoring program within the framework of sales force management helps to solve the classic problem of internal company relations: the problem of the relationship between old and young employees.

The mentoring program, combining the pros and cons of both sides, allows you to get a good result. It forces partners to consider each other as interesting persons and capable workers. The mentor has experience, he has a lot to learn. At the same time, the trainee can bring enthusiasm, a fresh, unexpected look at the situation, original thoughts to the team. In addition, young people are more familiar with electronic technology and computer technology, so they can provide their mentors with help in mastering technical innovations. The senior partner can not only teach the younger one the tricks of sales, but also with the help of a kind of corporate folklore, which consists of different stories, examples and legends, arouse respect for his enterprise and its activities, convey the spirit of collectivism, create a friendly atmosphere. This psychological aspect is essential in entrepreneurship.

Far-sighted managers rightly believe that the attitude of consumers towards the company largely depends on the mood of the sales staff. Therefore, in enterprises where they value their employees, as part of internal marketing, they develop systems to support and stimulate sales and support personnel for high productivity and good quality of work. Managers periodically check the degree of satisfaction of employees with their functional activities and internal company relations.

For example, the telemarketing agency "RMH", well known in the CELA, uses film and theater themes to stimulate the creativity and optimism of its staff. The best are awarded their own "Oscar", plays of their own composition are staged, shows are organized. According to the company's management, such a fun and unusual corporate identity helps keep employees in shape and attracts additional interest from consumers. These words are convincingly confirmed by very high rates. According to company reports, such a program pays off annually with 50% business growth.

The professional return of employees and the degree of satisfaction with relationships within the company is significantly increased if the company provides them with assistance not only in creative development, but also in solving life problems. One of the ways to combine industrial and personal interests is the development and organization of activities on flexible work schedules. Another way to provide professional and human attention is for some managers to go to the field along with salespeople, not to supervise their activities, but to help them perform their assigned tasks. Employees, seeing such care, are likely to try to make every effort to fulfill their duties in the form that the enterprise needs.

At some enterprises, it is believed that the best way to stimulate employees is to create conditions for them to earn extra money (if such a possibility exists).

So, some transport companies allow drivers to carry out personal service at the same time as fulfilling their corporate duties. Going on the route, many drivers receive a special document (certificate, business card), which gives them the authority to take orders on their own. This brings drivers additional profit.

It is generally recognized that the "golden key" to achieving goals and accomplishing tasks is the organization of a reward system, support for individual efforts and the issuance of monetary rewards. Sales personnel need to be encouraged (morally) and stimulated (financially), encouraging them to act in the name of certain collective achievements, otherwise the processes of hiring, selecting and training workers are meaningless.

The management of the organization needs to define a system of goals and objectives for each employee, department and enterprise as a whole, the degree of achievement and the quality of the solution of which should be used in the form of criteria for additional (above salary) incentives.

Example. Banc One, one of the ten largest companies in the United States and specializing in the provision of financial services, has identified key indicator evaluating the work of their employees the level of customer service. In order to increase the responsibility of personnel for work and manage their professional interest, the bank sets the amount of payments (salary, bonus rate, incentives, rewards) depending on how customers evaluate the work of branches. For this, a rating system has been introduced. The higher the rating of the branch, the subdivision in contact with customers, the more pay its employees receive. The management of Banc One abandoned the "equal pay for equal" scheme, considering another scheme - "equal pay for equal results" to be effective, and was not mistaken. He managed to focus the attention of all branches, employees and divisions of the financial structure on the full satisfaction of the wishes of customers. Moreover, we managed to create an atmosphere of competition. Employees try not only to improve the level of service and satisfy the desires of customers, but even to anticipate these desires.

Quite an interesting experience of encouragement of the company "IBM". In this company, customer satisfaction is viewed as a mirror of service performance, because the customer is the only one who can evaluate it objectively. Thus, the need for a systematic customer survey is recognized, for which various communication channels are used to provide customers with prompt contacts with the company's service department. To ensure that the right contacts are in place, IBM reviews both internally and externally to ensure that customer needs are met on a monthly basis. Based on the results of these checks, the shares of incentive payments are determined not only for personnel, but also for managers of middle and higher ranks. Every 90 days, the attitude to the case on the part of employees is re-evaluated; a record is kept of the opinions expressed by the company's employees on how customer service is provided, a number of other activities are carried out.

It should be noted that when using a system of incentives and rewards, it is very important to be honest about the intended individual plans and real results. Otherwise, a backlash may occur - distrust of management, ignoring the proclaimed principles of corporate culture, etc. Each employee must understand what his monetary incentive depends on and what it consists of, and also to what extent his personal performance is consistent with the system of enterprise targets . If there are deviations or even opposition (conscious, unconscious), then their reasons should be carefully analyzed, since an unfavorable situation can arise not only due to negligence or malice, but also due to

employee circumstances. The effectiveness of any incentive system depends on how far the possibility of rewarding undisciplined employees is excluded.

All forms of incentives for personnel of marketing (sales) divisions can be grouped into four blocks (Fig. 5.12).

Rice. 5.12. Forms of stimulation of management and personnel in the marketing (sales) systems of enterprises

The main material remuneration is considered as basic for enterprises, regardless of the conditions and nature of their production and commercial activities. This block includes two levels and groupings for special purposes.

The first level is salaries (pay or wage rate). Usually their value is from 40 to 70% of the total remuneration of a certain employee of the marketing system.

The second level - allowances, additional payments, additional payments, bonuses, commissions for employees of marketing departments, employees. Together, their value can reach about 60% of total payments.

Separately, in this block, the "special forces" group is singled out, that is, the tools for stimulating special purposes. This includes various forms of profit sharing, as well as options, which are special methods of stimulation that are not used by all enterprises and not for all employees, but only for those in whom they are interested. Basically, such radical means are resorted to by relatively executives, inventors or innovative specialists.

Compensation. This is a specific set of tools to stimulate commercial employees of enterprises, they are used, as a rule, in large enterprises that have foreign representative offices and / or maintain international economic relations. Compensation is more often provided for foreign official appointments and long-term business trips.

They are the main distinguishing feature of the remuneration system in the international environment from the so-called "home". Enterprises compensate their employees for real and estimated expenses associated with long-term business trips (transport, renting premises, meals, etc.), and also provide special payments and benefits, for example, for educating children, holding holidays, vacations, etc.

non-financial incentives. This block includes "classic" and specific forms of employee incentives that do not provide for material rewards.

The first group (classical forms) includes gratitude, awards, encouragement, transfer to a more prestigious job, early promotion, etc.

To the second (specific forms) - games, competitions, programs of general and special education, and the like.

Mixed incentive. This includes methods involving the use of combined (tangible and intangible) forms. Stimulants of this kind are seen as an addition to the main rewards and compensations. These can be all sorts of prizes, gifts, pension and insurance programs, etc.

Various catalysts for strengthening positive motivations and the emergence of enthusiasm among employees of enterprises also contribute to the development of employee loyalty in the present and an increase in the duration of vigorous activity in the future.

The theory and practice of management and marketing agree that the system of remuneration and incentives most directly affects the competitive advantages of an enterprise of any professional orientation. Moreover, this influence is often decisive not only in local areas of activity, but also at the corporate level.

In marketing, the role of the incentive system is so important that it seems to many that it is on it that everything rests, and the level of service provided to consumers is only an expression of the degree of satisfaction of employees or the fear of losing what can be provided to them.

In many enterprises, the promotion and encouragement of sales agents (sellers) is in the spotlight. Some of them are real virtuosos of their business, closing transactions (making sales) 5-10 times more than the "average corporate norm". Enterprises must seek, educate, nurture and cherish such personnel. Such agents (sellers) are paid according to their abilities, which may exceed the earnings of others by several times.

When hiring and remuneration, one should be guided not by how much an average sales agent can "cost", but by his personal value in terms of the number and volume of sales. By any analysis, good but expensive salespeople are cheaper than mediocre ones. Those businesses that are trying to save money and pay little to their marketing and sales staff often experience higher costs in preparation and execution of the sale, as well as in connection with their number and volume. The reason is that mediocre sales people sell less product than is possible. In addition, the service life is usually short, since they soon either leave on their own or are fired. After that, the enterprise again has to look for and select new employees, train them, "take root" to the place (sites, territories *) of work, etc. At this time, sales fall, production suffers, income may be lost, but, most importantly - buyers and lost part of the target market. All these troubles can be avoided if the company has qualified marketing and sales personnel, makes sure that the work of the specialists of the relevant system is paid, firstly, no less than the work of employees of other structural divisions of the enterprise, and secondly, no less than what they deserve.

In general, the problem of motivation and stimulation is a very complex area of ​​management, especially in relation to sales personnel and employees of other marketing areas. Due to the range of issues for many years is the subject of serious research. In the theory of sales personnel management (marketing management), a number of conceptual provisions have been developed that can find practical application in motivating employees of relevant services and departments. These provisions lead to generalized conclusions, the essence of which is as follows.

Once a need is satisfied, it can no longer serve as an incentive.

Different people have different needs and values.

Increasing the degree of responsibility, the level of qualification, public recognition of the results achieved and the corresponding material incentives contribute to increasing the motivation of the majority of employees.

People, as a rule, are motivated if they believe that their efforts will bring the necessary results, these results will be rewarded, and the form and method of rewards constitute a certain value and significance for them.

Eliminating "disincentives" (for example, exposure of injustice or negligence on the part of management) increases the level of motivation.

There is a relationship between the goals of the heads of marketing and sales departments (which are determined by their importance for the enterprise and largely determine the productivity of managerial work) and the corresponding targets (and labor productivity) of their subordinates.

All this determines the requirements for the management process. Marketing managers, regardless of job level, should:

To know what is of value to each of the subordinates and what certain employees strive for (that is, to identify their unfulfilled needs);

Strive to increase the responsibility of their subordinates for the work entrusted to them;

Understand that learning can increase motivation, as well as the ability to see the connection between the efforts made and the results achieved;

Set realistic and at the same time quite serious goals for your subordinates;

Associate the measure of remuneration with the achieved performance of their subordinates;

Understand that not only material rewards, but also moral encouragement (for example, praise, sympathy, understanding) can play a big role.

A good illustrative tool for marketing managers is the sales force motivation model developed by the American scientists Churchill, Ford and Walker. This model suggests that motivation as a phenomenon is cyclical. The stronger the motivation of the seller, the more he strives, which leads to increased productivity. The more productive the labor, the higher the reward and pleasure from the work performed, it provides the seller. The cycle ends with a new degree of satisfaction, which exceeds the previous one, which determines the formation of a motivational complex at the species-specific-vishom-level (Fig. 5.13).

Rice. 5.13. Sales staff motivation cycle according to the concept of Churchill, Ford and Walker

The practical conclusions that can guide marketing managers in their activities can be reduced to two main generalizations:

1. managers who are responsible for selling must convince their subordinates that the results of their work ultimately depend on effort and skill;
2. by working harder or by learning the appropriate sales secrets, they will be able to increase sales of the enterprise's products.

In many enterprises, it is believed that the motivation of employees depends mainly on the characteristics of the payment system in a particular organization. However, in management theory it is known that not all people are equally motivated by money. Various studies have been carried out on this subject. It turned out that there are five types of sales workers, each of which is determined by its own structure of goals:

1. Victims of habit. They strive to maintain their standard of living by earning quite a certain and sufficient, in their opinion, amount of money.
2. Those who are content with little. These people want to work at a level just enough to keep their jobs.
3. Compromisers. Such distribute time between work and rest, based on their own ideas and characteristics of their personality. As practice shows, even the prospect of earning more money is not capable of changing these ideas and, accordingly, the ratio of work and rest.
4. Purposeful. Sales people of this type really like it when their achievements are noticed and recognized by management. At the same time, money for them is only one of the manifestations of recognition of their merits.
5. Money oriented. These types of salespeople aim to make as much money as possible. For this they are able to sacrifice free time; relationships with colleagues, friends and family; own health. Such a mercantile desire cannot be characterized unambiguously. Along with many shortcomings, it also has advantages that can be skillfully used in corporate interests.

Based on the presented structuring, marketing managers should try to pre-classify employees associated with the sale before creating / developing a reward system for their subordinates.

In the event that "victims of habit", those who are "satisfied with little" and "compromisers" predominate in the composition of the sales staff of an enterprise, creating conditions for receiving only additional monetary rewards will probably not bring the corresponding results.

If, among the sales staff, most of the employees can be characterized as "purposeful" and "money-oriented", then expanding their opportunities to receive additional monetary rewards may result in an increase in the level of motivation and labor productivity, which will ultimately give an adequate effect in the organization and implementation of commercial processes.

It is necessary to pay attention to another aspect of sales personnel management that is important in modern conditions. Sales automation is becoming more and more common among the means of increasing the productivity of sales personnel. In many enterprises, managers who are responsible for organizing promotion and sales pay great attention to the "equipment" of their salespeople, especially sales representatives. In developed countries, "field" representatives of companies are provided with a laptop computer, printer, photocopier, mobile phone, software, etc. All this is expensive, but progressive experience shows that the cost of technical equipment of the active part of a commercial apparatus quickly pays off. For example, the company "Hewlett Packard" provided at the disposal and taught the use of the above funds some of its agents. It soon became clear that their productivity immediately jumped by 30% compared to those agents who did not use such equipment.

Decent "equipment" pays off on the other hand, perhaps even faster. Some enterprises, having provided their "field" representatives with everything necessary, no longer see the need to maintain offices for sales agents. This is the same company "Hewlett Packard", no less famous company "Kotrak" and many others. Representatives of such "advanced" organizations work at home and do not go every day to their departments or offices. Thanks to this, companies significantly reduce the cost of renting premises, their heating, electricity, and the like. At the same time, the sales staff of the enterprises receive additional time for productive work.

Sales automation is beneficial and here's how. When on average one manager can control 10-12 sales staff, then thanks to the full-fledged hardware and software of the "field" category of sales staff, each manager is able to effectively manage from 25 to 40 external representatives of the enterprise. This means that the need for such bosses is reduced by 2-4 times with all the ensuing consequences (in particular, savings on salaries, offices, reducing the hierarchical management structure, increasing the efficiency of management; coordination of actions with agents and support staff over a larger area, etc. .d.).

In conclusion, it is important to reiterate that management, sales and support personnel at all levels of the organizational system should be held accountable not only for the performance of their work, but also the appropriate degree for the implementation of the corporate philosophy, culture, plan and policy (set of strategies ) companies. They should know that both the prospects of their enterprise and the amount of individual earnings depend on this.

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PAGE_BREAK--
2. DEVELOPMENT OF THE SALES SYSTEM
Sales personnel serve as a link between the company and consumers. In the minds of most buyers, a sales representative is essentially the face of the company, its materialized image. It is he who brings the company basic information about consumers. Therefore, the company needs to pay as much attention as possible to the issues of the sales system, namely the development of its goals, strategy, structure, size and rewards.
2.1 Targets of the marketing system
The company must set specific tasks for the sales department. It is widely believed that the sales force must "sell, sell and sell," so many companies set sales standards, and the better the employee performs them, the higher his work is valued. Subsequently, a concept emerged stating that the sales representative should be prepared for qualified solution of consumer problems, be able to analyze them and offer the buyer a suitable solution. In recent years, many companies have been pushing for the need to include sales staff in "relationship selling." This concept assumes that sales representatives are not only trying to sell a specific product or offer a solution to a specific problem, but explain to potential consumers that a stable relationship with a company allows its partners to increase their profits. Thus, the sales representative seeks to unite the two companies in a "partnership for profit."

The main functions of the sales staff include:

Assessment of prospects - search for new promising directions for the sale of products.

Goal setting-distribution of time between actual and potential consumers.

Communications - qualified dissemination of information about the company's products and services.

Sales - practical implementation of the art of trade - approaching the consumer, presenting the goods, satisfying the buyer's requests and making a deal.

Services - provision of various services to consumers - consultations on emerging problems, provision of technical assistance, organization of financial issues and ensuring the delivery of goods.

Collection of information - participation in market research and collection of information for the needs of the company.

Distribution - decision on the procedure for obtaining scarce goods by consumers.
Typically, the company assigns specific tasks to the sales force. Suppose it requires that 80% of the sales staff devote their time to working with customers, and 20% to developing promising directions;

Or 85% of the time selling the company's core products and 15% selling new products. Otherwise, sales reps are likely to spend most of their time selling well-established products to current customers, while neglecting new products and prospective customers.

The set of tasks of a sales representative depends on the state of the economy. During periods of growth and high demand, sales reps have no trouble selling, and some companies jump to the conclusion that they can get by with fewer sales people. What they overlook, however, is that salespeople also perform a number of other functions: distributing products, serving disgruntled customers, communicating the company's plans to eliminate product shortages, selling the company's low-demand merchandise.

As the competition for customers intensifies, companies become more meticulous about their sales force's ability to satisfy customers and drive company profits. Salespeople must be able to analyze sales data, measure market potential, gather market intelligence, and develop marketing strategies and plans. Sales representatives need analytical marketing skills, which are of particular importance at the highest levels of sales management.

2.2 Marketing strategy
Companies compete to get orders from consumers, so they need to pay special attention to ensuring that sales personnel reach the right customers at the right time and in the right way. There are several ways in which sales representatives work with consumers.

Sales representative with buyer: conversation with a potential consumer or current buyer in person or by phone.

Sales representative with consumer group: working with a group of potential buyers in order to draw attention to the company's products.

Sales team with consumer group: The sales team works closely with the purchasing team of the purchasing company.

Conference holding: A sales representative invites potential customers and participates in a discussion of problems by demonstrating a solution using his company's products.

Conducting a seminar: company employees organize an educational seminar to present and discuss new products.

Thus, modern sales representatives often act as "managers", arranging contacts between authorized employees in buying and selling companies. The selling process is becoming increasingly collaborative as it requires the support of a diverse staff, for example top managers are increasingly involved in the selling process; technical workers provide consumers with the necessary information and services before, during and after the purchase of the product; employees of the supplier company, carry out the installation of equipment, its maintenance and provide other services to customers; company employees, including sales analysts, ordering agents and secretaries, maintain document flow, etc.

After a company chooses one of the sales approaches, it can use direct or contract sales staff. Direct Sales Staff(sales staff of the company) consists of full-time or part-time employees of the company. This staff consists of internal sales force, which carries out activities without leaving the office, using the phone and receives consumers, as well as from field trade workers, specializing in travel to meet with consumers. Contract sales staff consists of representatives of the manufacturing company, sales agents and / or brokers who are paid a commission for the sales they make.
continuation
--PAGE_BREAK--2.3 Structure of the sales service
The sales system strategy influences its structure. If a company sells one type of product to enterprises in the same industry with consumers scattered over a large area, it will prefer to use the territorial structure of the distribution system. If a company supplies a variety of products to different customers, it should choose a product or market structure for the distribution system. AT tab. 1 the most commonly used distribution system structures are presented. Companies must rethink their distribution structure as markets and economic conditions change.
2.4. Sales System Scale

Once the strategy and structure of the distribution system is clarified, the company is ready to determine its scope. Sales representatives are one of the most productive and costly assets of an enterprise. An increase in their number will lead to an increase in both the level of sales and overhead costs.

To determine the number of sales personnel, a company can use labor method. It consists of the following steps.

1. Buyers are divided into classes according to the annual level of sales.

2. For each class, the appropriate contact frequency (number of phone calls per year) is determined.

3. The number of each class of buyers is multiplied by the corresponding frequency of contacts, which, after summing up, gives the total labor costs for the country in phone calls in one year.

4. The average number of calls made by one sales representative per year is determined.

5. The required number of sales representatives is calculated by dividing the total labor costs by the average number of calls per representative.
Table 1.

STRUCTURE OPTIONS OF THE SALES SYSTEM

Structure Description
Territorial Each sales representative is assigned to a specific territory in which he represents the entire range of the company's products. This structure has a number of advantages. Firstly, it leads to a clear definition of the employee's responsibilities. As the sole representative serving the area, he bears all responsibility for sales. Secondly, territorial responsibility increases the interest of the sales representative in establishing local business relationships. Thirdly, travel costs are relatively low because each sales representative moves within a small area.

The size territory. Territories can be defined in such a way as to provide either a commensurate sales potential or a sales force load. Territories with commensurate potential provide every sales representative the same earning opportunity and give the company the ability to compare employee performance. Persistent differences in sales levels across territories most likely reflect differences in the abilities or efforts of salespeople. However, since consumer density varies from area to area, areas of equal potential can vary considerably in size. Alternatively, territories may be defined in such a way that equalize the workload of workers. Today, companies can use computer programs to develop sales territories, optimizing such indicators as compactness, commensurability of sales potential or workload, minimum travel time.

Commodity The importance of keeping the sales rep informed about their product range has led many companies to structure their distribution systems around commodity principle. This structure is especially useful if the product is technically complex, highly variable or diverse. For example, Kodak employs some workers to sell its photographic products, which need intensive distribution, and others to sell complex products that require technical knowledge.

Market Companies often specialize their sales force by industry or customer group. Separate sales teams can be organized for different industries and even individual consumers. The most obvious advantage of market specialization is that the salesperson can become a specialist in the special needs of the clients with whom he works. The main problems arise when consumers are dispersed throughout the country, which requires every salesperson to travel frequently on business.

Complex When a company sells a wide range of products to different customers over a wide area, it often combines different principles for structuring the distribution system. Sales representatives can specialize in product-territory, market-territory, market-product, and so on. A sales representative may report to a line or human resources manager.

3. The system of remuneration of sales workers
In order to attract high-quality sales representatives, a company should develop an attractive salary system that includes regular wages, bonuses for high performance and adequate remuneration for experience and length of service. The purpose of management is to establish control over the fulfillment of its conditions, to achieve savings, to ensure that the system is understood by subordinates. Some of these goals, such as saving money, conflict with sales reps' goals, such as financial stability. Not surprisingly, wage systems vary not only in different areas of production and services, but also within the same industry.

Management determines the level and components of an effective employee remuneration system. The level of remuneration should take into account the "current market price" for workers of a given specialty and required qualifications. For example, the typical American sales representative earns an average of $50,000. If the "market price" for sales representatives is clearly defined, the individual firm has no choice but to follow common practice. Remuneration below the current level will lead to a drop in the qualifications of job applicants, and wages exceeding it are inappropriate.

Next, the company should determine the four components of sales force pay - fixed salary, flexible pay, overhead reimbursement, and benefits. fixed salary, salary, satisfies the employee's need for financial stability. Flexible payment in the form of commissions, bonuses or participation in the profits of the company is intended to stimulate and encourage additional efforts on his part. Overhead reimbursement allows you to compensate sales representatives for additional travel, hotel, food and leisure expenses. allowances, such as paid vacation, sickness and accident benefits, pensions and life insurance are designed to provide workers with confidence and job satisfaction.

Trade management should determine the relative importance of these components. The most common opinion is that fixed wages should be about 70% of the total income of the employee, and the remaining 30% should be distributed among the other three components. However, these are only indicative figures. A fixed salary is convenient if there are significant seasonal fluctuations in sales volumes or the sales process depends on the work of a large number of people. Flexible pay is of particular importance in cases where the level of sales is cyclical or depends on the personal initiative of the employee.

Fixed and flexible wages give rise to three systems material incentives for employees - fixed salary, piecework wages and their combination. Only a quarter of all firms use the first two systems, and the rest use a combination of the two methods.

Hard pay has a number of advantages. It provides a stable income for the employee, stimulates the desire to engage in non-trading activities and reduces the likelihood of excessive sales. From the company's point of view, this system of remuneration allows for ease of management and less turnover of sales staff. The advantages of piecework wages are the attraction of more productive workers, their high motivation, less control and the ability to control the cost of selling. The combined wage system combines the advantages of both systems.

By using pay systems that combine rigid and flexible pay systems, companies are able to link the variable pay component to a wide range of strategic objectives. Some marketers note a new trend - a decrease in the value of quantitative indicators in assessing the effectiveness of labor activity and an increase in the role of indicators related to the achievement of strategic goals - for example, an increase in the profitability of individual marketing territories. A recent study showed that an increasing number of companies are using efficiency departments and/or individual teams of employees. The proportion of companies rewarding departmental performance rose from 13% in 1991 to 22% in 1994. In addition, a growing number of companies are emphasizing customer satisfaction as an integral part of performance improvement and at the same time seeking to use this indicator in determining the amount of the reward. ^

Continuation
--PAGE_BREAK--4. SALES MANAGEMENT
After the company has determined the goals, strategy, structure, size and reward system of sales personnel, it must engage in hiring, selecting, training, monitoring, motivating and evaluating the performance of sales representatives.

4.1 Recruitment and selection of sales representatives
The key to a successful sales system is the selection of effective sales representatives. The performance difference between average and high-end sales reps can be quite significant. One study found that 27% of a company's sales force makes 52% of its sales. The average sales turnover rate is almost 20%. When a sales employee leaves, the cost of hiring and training a new employee, along with the damage from lost deals, is $ 50-75 thousand. In addition, a sales force dominated by newcomers is unproductive.

Financial losses caused by staff turnover are only a part of all costs. If a new sales rep receives $30,000 a year, another $30,000 is spent on additional benefits, oversight, office space, supplies, and secretarial services. As a result, the sale of a new sales representative must generate a net profit of at least $60,000 in costs. If the rate of return is 10%, the sales representative must close deals worth at least $600,000.

4.2 How to find a good sales representative?
Most consumers expect sales reps to honesty, reliability, knowledge and usefulness. The company focuses on these features when selecting candidates. Another approach is to highlight the qualities that most successful salespeople have, namely:

justified risk, a developed sense of responsibility, a propensity to solve problems, concern for the consumer and careful planning of business meetings. Some add to this list the requirement of energy, self-confidence, an inescapable desire for money, an understanding of the characteristics of a particular industry, and a special temperament that makes a person perceive every objection, resistance or obstacle as a challenge to himself. For those who find this list too long, they can limit themselves to two main characteristics: sympathy i.e., the ability to feel the same as the consumer; and selfish incentive, i.e., a strong personal need to make a sale.

When determining the specific profile of the work of a sales representative, it is necessary to take into account the nature of the duties assigned to him: the amount of paper work, the need for frequent business trips, the possibility of a large number of failures of potential consumers.
4.2.1 Recruitment procedures
After the management has developed the criteria for selecting applicants, the stage of hiring candidates for open vacancies begins. Human Resources finds job applicants in a variety of ways, including referrals from sales representatives, recruitment agencies, job postings, training centers, and more. Unfortunately, very few students are tempted to become a sales representative. Here are their arguments: "Trade is a job, but not a profession", "Such a job is unreliable and requires frequent travel." To overcome this kind of doubt, the company needs to focus on high starting salaries, additional income opportunities, and the fact that a quarter of all CEOs of the largest American corporations started their careers in marketing and sales.
4.2.2. Procedures for selecting job applicants
Hiring procedures, if successful, will attract a large number of job applicants and the company will be able to select the best of the best. Selection procedures range from simple interviews to lengthy tests and interviews, not only of job applicants themselves, but also of their spouses. If they are not prepared for the “out of home” lifestyle of a sales representative, the work of such an employee is unlikely to be successful.

Many companies use formal tests in the selection process. While test scores are one element in a series of testimonials, job references, and interviews, they are quite highly rated by companies such as IBM
,
Prudential
,
Procter
&
Gamble and Gillette
. So, Gillette claims that the practice of testing job applicants has led to a 42% reduction in employee turnover, while the company's new sales representatives have made significant progress in the work of the company's sales department.
4.3. Training of sales representatives
Many companies involve new employees in the sales process almost immediately after hiring. They are provided with product samples, order forms and a description of the sales territory, but more often than not, the first steps of newcomers are not very effective.

Modern buyers are demanding, work with a large number of suppliers and will not put up f
. incompetent sales representatives. Customers expect them to have in-depth knowledge of the product, suggestions for improving customer performance, as well as efficiency and reliability. These requirements are forcing companies to get serious about education and training of sales staff.

Modern sales representatives spend a year on various courses from several weeks to several months. The average period of initial training is 28 weeks in industrial goods enterprises, 12 weeks in service companies and 4 weeks in consumer goods enterprises. The training time depends on the complexity of the sales process and the personal qualities of the employee. New sales representatives.

IBM undergo intensive initial training and spend up to 15% of their annual work time in additional training.

Sales training programs are built on the assumption that sales representatives are required to:

Know the history of the company and identify with it: many companies devote the first training period to describing the history of the company, its goals and objectives, organizational structure, key leaders, financial system, main products and sales volumes.

Understand the properties of the product: workers are shown how the product is made and how it is used in different situations.

Have the necessary information about consumers and competitors: different types of consumers, their needs, motives for buying, habits, as well as the strategy and policies of the company and its competitors are studied.

Ability to deliver effective sales presentations training in the principles of sales is conducted, the arguments used in the sale of this product are considered and an approximate scenario for the sale is developed.

Trading Procedures and Responsibilities: sales representatives learn how to allocate their time between current and potential customers, keep track of costs, write reports and choose the best travel routes.

New teaching methods are constantly emerging: business games, receptivity training. In the classroom, audio and video equipment, training programs and films are widely used.

Continuation
--PAGE_BREAK--4.4. Controlling the activities of sales representatives
Companies vary in how tightly they control their workers. Sales reps who are predominantly paid on a piece-rate basis are usually subject to less scrutiny than those who are on a salary and must meet certain standards.
Development of norms of contacts with consumers. In the 1980s the number of daily personal contacts of sales workers with potential and real buyers decreased from 5 to 4.2. This trend continued into the 1990s. - Increased use of telephones and telefaxes, automated ordering systems and other technical means reduced the number of unproductive meetings while increasing the total number of contacts.

Development of contact rules with prospective clients. Companies practice setting time limits for finding new customers for sales personnel. So Spector

Freight allocates 25% of the working time of sales representatives to “free search”, while it is forbidden to contact potential consumers again in cases where the first three calls were unsuccessful.

Efficient use of time. Modern research proves that sales representatives must be able to effectively manage their time. One of the most useful planning tools - contact schedule, which determines which of the customers or potential buyers to call in the current month.

Another tool is analysis of time and responsibilities, which helps sales reps assess how they are spending their time and areas to improve productivity. For example, the time of a sales representative is distributed as follows.

Preparation - time required for an employee to obtain information and plan contacts with consumers.

Trips - in some cases, travel takes up to 50% of sales staff time. Travel time can be reduced by making optimal use of different modes of transport, bearing in mind, of course, that this will entail an increase in overhead costs.

Meals and breaks - a certain part of the working day of the sales staff is allocated for eating and resting. It is desirable that breaks do not go to the detriment of communication with customers.

Expectation - time spent by a sales representative waiting to receive customers. We recommend using it for scheduling or filling out reports.

Sale - this is the time allotted for a conversation with the buyer - in person or by phone. It is divided into "secular" and "business conversation". The sales representative is required to maintain a balance between them.

Case Management

Trading assistants telemarketing,

The office sales staff frees up the time of the field "fighters" to work with large customers, find and attract new large buyers, install electronic ordering systems for goods at buyers' enterprises, and obtain more complex orders and contracts. In-house salespeople devote more time to checking inventory levels, servicing orders, making phone calls to small wholesale buyers, etc. Sales representatives in the field tend to be paid on a progressive basis, while in-house workers receive a fixed salary with a possible payment of premiums.

Another significant breakthrough in increasing the productivity of sales personnel occurred with the development of new technologies - the advent and widespread use of portable computers, video recorders, video disks, automatic telephones, e-mail, fax machines, teleconferencing. Sales workers have indeed become "electronic".
Case Management includes time spent writing reports and invoicing, attending meetings, and talking to others in the company about production, shipping, paperwork, sales, and other issues. Sales reps should set aside time to manage cases early in the morning and late in the evening, when business meetings with customers are least likely.

With so many responsibilities to communicate with customers, it's no wonder that a sales rep has no more than 25% of the working time! Companies are constantly on the lookout for opportunities to improve sales force productivity: employees are taught to use the "power of the phone";

Simplified reporting; the use of computers is expanding for planning contacts and developing optimal routes, as well as for obtaining information about customers and competitors.

One of the ways to improve the efficiency of sales departments is to increase the number of "stationary" employees. Internal (office) sales staff is divided into three categories. Exist technical support workers which provide consumers with technical information and answer their questions. Trading assistants carry out clerical support for the activities of field workers. They make appointments, clear checks received, monitor delivery of goods, and answer consumer questions when there is no way to contact any of the field salespeople. And finally, the third ones are engaged telemarketing, that is, they use telephone communications to search for new customers and conclude sales contracts. During the day, such workers contact 50 potential consumers, while a field worker - at most 4-5. Telemarketing is especially effective at passing along other company products; revision of already concluded agreements; introduction of new company products; finding new clients and rebuilding old relationships; when re-accessing unsuccessful contacts; in conducting and analyzing direct mail marketing activities. (We will discuss telemarketing in more detail in the next chapter.)
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