Live Stream problems?Live Stream problems?Call 573-341-6490Call 573-341-6490

Al Gonzalez, P.E.Al Gonzalez, P.E.

Smart Engineering Systems LaboratorySmart Engineering Systems Laboratory

Engineering Management DepartmentEngineering Management Department

Gonzalez@umr.eduGonzalez@umr.eduhttp://www.umr.edu/~gonzalezhttp://www.umr.edu/~gonzalez

University of Missouri - RollaUniversity of Missouri - Rolla

Rolla, MO 65409 - 0370Rolla, MO 65409 - 0370

EMGT 408 AEMGT 408 A

Advance Engineering EconomyAdvance Engineering Economy

LecturesLecturesMonday Monday

6:30-9:00 pm Central Time6:30-9:00 pm Central Time

UMR Engineering Educational CenterUMR Engineering Educational Center

573-341-6490 or 314-516-5431573-341-6490 or 314-516-5431

Live Broadcast on the InternetLive Broadcast on the Internet

Real PlayerReal Player200Kbs200KbsMedia PlayerMedia Player200Kbs200Kbs

PerspectivePerspective

TThe objective of the course is to provide he objective of the course is to provide the basic tools and concepts of the basic tools and concepts of Industrial Business Marketing Industrial Business Marketing Management with emphasis to Value Management with emphasis to Value Stream Management and Professional Stream Management and Professional SellingSelling the course is tailored to systems the course is tailored to systems architecting graduate students.architecting graduate students.

Class OutlineClass Outline Business Marketing ConceptsBusiness Marketing Concepts Perspectives on Organizational BuyerPerspectives on Organizational Buyer Organizational Buying BehaviorOrganizational Buying Behavior Customer relationship Management Customer relationship Management

StrategiesStrategies E-Commerce E-Commerce Supply Chain Management Supply Chain Management Segmenting the Business marketSegmenting the Business market Organizational Demand AnalysisOrganizational Demand Analysis Business Marketing PlanningBusiness Marketing Planning

Class OutlineClass Outline

Strategies for Global MarketStrategies for Global Market Managing Products for Business MarketManaging Products for Business Market Innovation and New Product DevelopmentInnovation and New Product Development Managing Services for Business MarketsManaging Services for Business Markets Managing Business Marketing ChannelsManaging Business Marketing Channels Pricing Strategy for Business MarketsPricing Strategy for Business Markets Business marketing Communications: Business marketing Communications:

Advertisement and PromotionAdvertisement and Promotion Managing the Personal Selling FunctionManaging the Personal Selling Function Controlling Business Marketing StrategiesControlling Business Marketing Strategies

Business Marketing ManagementBusiness Marketing Management, A Strategic , A Strategic View of Industrial and Organizational View of Industrial and Organizational Markets, by Michael D. Hutt and Thomas W. Markets, by Michael D. Hutt and Thomas W. Speh, Eight Edition, Thompson South Speh, Eight Edition, Thompson South Western, ISBN 0-324-19043-3.Western, ISBN 0-324-19043-3. 

Textbook Purchase InformationTextbook Purchase Information   

Prints will be available from UMR Systems Prints will be available from UMR Systems Engineering Graduate Program OfficeEngineering Graduate Program Office

UMR Book Store and others  UMR Book Store and others    

TextText

WorkbookWorkbook

The Professional Selling Skills WorkbookThe Professional Selling Skills Workbook by by Avila, Ingram, La Forge, Williams, Avila, Ingram, La Forge, Williams,

Driden Publishers, ISBN 0-03-016332-3Driden Publishers, ISBN 0-03-016332-3

Textbook Purchase InformationTextbook Purchase Information   

Prints will be available from UMR Systems Prints will be available from UMR Systems Engineering Graduate Program OfficeEngineering Graduate Program Office

UMR Book Store and others  UMR Book Store and others    

GradingGrading    ItemItem PointsPoints DateDate

Mid-Term ExamMid-Term Exam

100100 10/13/200310/13/2003

ProjectProject 300300 As AssignedAs Assigned

Final ExamFinal Exam 200200 12/13/200312/13/2003

Class participation 50 points In Class

Cases & Workbook 50 Points To be announced

Temporarily, you may find class Temporarily, you may find class information at:information at:

http:/www.umr.edu/~Gonzalez/http:/www.umr.edu/~Gonzalez/

Class InformationClass Information

EM351Industrial Marketing Systems Analysis

Al Gonzalez, P.E.

Introduction to IMSA

Class ObjectivesClass Objectives Class roll checkClass roll check Review syllabusReview syllabus Understanding of Business to Business Understanding of Business to Business

Marketing Marketing Introduction to supply chainIntroduction to supply chain Understanding underlying structure of the Understanding underlying structure of the

business marketbusiness market Method of classifying business products and Method of classifying business products and

servicesservices

$$$$ $$

$$$ What is marketing?What is marketing?

1.1. The act or process of buying and selling in a market. The act or process of buying and selling in a market.

2.2. The commercial functions involved in transferring The commercial functions involved in transferring goods from producer to consumer.goods from producer to consumer.

Marketing can be understood as…Marketing can be understood as…

The process of The process of defining, defining,

developing developing delivering valuedelivering value

Why Marketing?Why Marketing?

A Business Marketing PerspectiveA Business Marketing Perspective

Business MarketsBusiness Markets

A.A. Markets for products and services Markets for products and services bought by business, government, or bought by business, government, or institutionsinstitutions

B.B. Products to be incorporated into Products to be incorporated into other products, used, consumed, or resoldother products, used, consumed, or resold

Examples of Business MarketsExamples of Business Markets

1.1. For incorporationFor incorporation– Ingredients, materialsIngredients, materials

2.2. For consumption For consumption – Process materialsProcess materials– Office SuppliesOffice Supplies– Consulting servicesConsulting services

3.3. For useFor use– Installation or equipmentInstallation or equipment

4.4. For resaleFor resale

Can you name samples of product Can you name samples of product and services used in the development and services used in the development

of this products?of this products?

1. …

2. …

3. …

1. …

2. …

3. …

Business MarketingBusiness Marketing

Process of determining needs and Process of determining needs and developing marketing mixes for developing marketing mixes for organizationsorganizations

The nature of the customerThe nature of the customer and and how the product is usedhow the product is used distinguishesdistinguishes business and business and consumer goods marketingconsumer goods marketing

Some firms produce goods that never Some firms produce goods that never directly interact with the ultimate directly interact with the ultimate consumer… consumer…

What about the firms we see below? What about the firms we see below?

Historically a business to business marketer now HP is involved into the consumer market…why?, how?

               

                                   

Business Marketing ManagementBusiness Marketing Management

A. Business vs. consumer marketsA. Business vs. consumer markets

1.Distinctive capabilities1.Distinctive capabilities

a. Market sensory capabilitya. Market sensory capability

b. Customer-linking capability b. Customer-linking capability

2. Partnering for increased value 2. Partnering for increased value 3.Creating the value proposition3.Creating the value proposition

                                                                   

Example consumer-linking Example consumer-linking capability of multifunction teams capability of multifunction teams

working in industryworking in industry

Sharing delivery

Product movement information

Planning promotional activities

Product changes

Consumer good market …consumer-linking capability is crucial. This is a set of skills…abilities and processes that should be developed and if not should be created and then managed

What makes Coca Cola a good What makes Coca Cola a good example of market-sensing capability?example of market-sensing capability?

Partnering to increase Partnering to increase value…value…

Before the sale

After the sale

Work as a partner…Intimate knowledge of client operation… Contributing unique value to that customer business

Customer-linking capabilities, align product decisions, deliveryHandling, service and other supply chain activities

How to create Value Proposition?How to create Value Proposition?

Customer Company Competito

r

Marketing Strategy based on assessment of:

Develop a strategy on how the organizationPlans to deliver superior value to customerBased on identifying those opportunities

defined By the process of defining, developing and

delivering

valuevalue

1.1. Cross-functional working relationshipsCross-functional working relationships Key drivers of effective relationships are;Key drivers of effective relationships are; Communication, Communication,

Perspective taking, Perspective taking, Response behavior, and Response behavior, and CompatibilityCompatibility

2.2. Reputationally-effective managers when he or Reputationally-effective managers when he or she is responsive to:she is responsive to:

NeedsNeeds Demands Demands Expectations of managers across functions Expectations of managers across functions

B.  Cross-functional relationshipsB.  Cross-functional relationships

What makes a successful What makes a successful business marketing manager?business marketing manager?

Operating in Isolation…only if he/she wants to fail

Knows company’s capability in:

Apply this strength in developing marketing strategies in order to meet client needs

Integrator!.the successful marketing manager is an integrator.

Customer service Research and

Development

Manufacturing/construction

Integrator…How?Integrator…How?

Building relationships

with customersdaily

Building one on one

Relationships daily

(functional areas)

Daily…Cross Functional working relationships

1. Communication2. Perspective

talking3. Responsive

behavior4. Compatibility

FinanceFinance

AccountingAccounting

LogisticsLogistics

BusinessBusiness

MarketingMarketing

PlanningPlanning

R & DR & D

Procure-Procure-mentment

Manufac-Manufac-turingturing

CustomerService

Formulation of BusinessFormulation of BusinessMarketing StrategyMarketing Strategy

1.1. Derived demandDerived demand Business demand is derived from Business demand is derived from

consumer demand for the final products consumer demand for the final products of which they become a partof which they become a part

2.2. Fluctuating demand:Fluctuating demand: Since demand is derived, the business Since demand is derived, the business

marketer marketer must monitor and forecastmust monitor and forecast demand in final consumer marketsdemand in final consumer markets

3. Stimulating demand:3. Stimulating demand: Some firms develop marketing Some firms develop marketing

programs to reach the ultimate programs to reach the ultimate consumerconsumer

Characteristics of Business MarketsCharacteristics of Business Markets Different from consumer-goods marketingDifferent from consumer-goods marketing

4. Price sensitivity4. Price sensitivity:: The derived nature of demand also affects the The derived nature of demand also affects the elasticity of demand for business productselasticity of demand for business products

5.Demand on a global scale5.Demand on a global scale a. Most business products are sold on an a. Most business products are sold on an international scale, and assessment of international scale, and assessment of competition from all international fronts is requiredcompetition from all international fronts is required

b. Business firms will have to focus on markets b. Business firms will have to focus on markets whose needs they can satisfy and whose whose needs they can satisfy and whose competitors they can handlecompetitors they can handle

Characteristics of Business Markets Characteristics of Business Markets continuationcontinuation

Examples of Characteristics of Examples of Characteristics of Business MarketsBusiness Markets

Derived demand:

Fluctuating Demand:

Stimulating demand

Price sensitivity

Global market Global market

perspectiveperspective

Business and Consumer Marketing: Business and Consumer Marketing: A ContrastA Contrast

A. Smucker: A consumer and business marketerA. Smucker: A consumer and business marketer

B. Distinguishing characteristics of business B. Distinguishing characteristics of business marketingmarketing

1. 1. Emphasis on personal sellingEmphasis on personal selling 2. 2. The service component of the product The service component of the product

offering plays a key role offering plays a key role 3.3. Protracted price negotiations for individual Protracted price negotiations for individual products are common products are common 4. Business marketers typically sell direct to 4. Business marketers typically sell direct to large accountslarge accounts

Smucker…marketing…Smucker…marketing…Marketing MixMarketing Mix

1. Personal 1. Personal sellingselling

2. 2. Product/ServiceProduct/Service

3. Price3. Price

4. Promotion4. Promotion

5. 5. AdvertisementAdvertisement

6. Distribution6. Distribution

Marketing MixMarketing Mix

1. Personal 1. Personal sellingselling

2. 2. Product/ServiceProduct/Service

3. Price3. Price

4. Promotion4. Promotion

5. 5. AdvertisementAdvertisement

6. Distribution6. Distribution

PricingPricing

Nature of demandNature of demand

CostCost

Behavior of competitionBehavior of competition

PricingPricing

Nature of demandNature of demand

CostCost

Behavior of competitionBehavior of competition

Promotional plans to includeMedia advertisement

CouponsSpecial offers

Incentives for retailers

Promotional plans to includeMedia advertisement

CouponsSpecial offers

Incentives for retailers

Marketing Mix…”The Marketing Mix…”The Offering” Offering”

Four Four PsPs

ProductProductPrice Price PromotionPromotionPlace*Place*

Reference

Marketing, Third Edition, by Sandhusen, Barrons Publishers, ISBN 0-7641-1277-5

* Channels of distribution , Physical distribution

Marketing Mix…”The Marketing Mix…”The Offering”Offering”

Five PsFive PsProductProductPrice Price PromotionPromotionPositioningPositioningPublicityPublicityPackagingPackagingPass alongPass alongPermissionPermissionReference

Fast Company, February 2002 Issue, page 76

“Actually, there are more than five everybody select their favorite handful ”

Distinguishing characteristics…Distinguishing characteristics…What to do?What to do?

Individual industrial sales person must…Individual industrial sales person must…1.1. Understand technical aspect of the organization Understand technical aspect of the organization

requirementsrequirements

2.2. How those technical requirements can be satisfiedHow those technical requirements can be satisfied

3.3. Who influence the buying decisionWho influence the buying decision

4.4. Why this person or group influence the buying Why this person or group influence the buying decisiondecision

MADMoney, Authority, Desire

Distinguishing characteristics…Distinguishing characteristics…What is better for my organization?What is better for my organization?

Use trade journals and direct mail for the Use trade journals and direct mail for the foundation of a sales call foundation of a sales call

Use a small portionUse a small portion of the business of the business promotional budget for advertisementpromotional budget for advertisement Service is an important component Service is an important component Price negotiation is a very important aspect of Price negotiation is a very important aspect of

industrial buying/selling processindustrial buying/selling process Product made to a particular quality must be Product made to a particular quality must be

individually prized individually prized

Distinguishing characteristics…Distinguishing characteristics…What is better for my organization?What is better for my organization?

Direct distribution to large customersDirect distribution to large customers strengthen relationships between buyer and strengthen relationships between buyer and seller.seller.

Manufacturer reps and industrial distributors Manufacturer reps and industrial distributors should handle smaller accountsshould handle smaller accounts in a in a profitable manner.profitable manner.

Internet and the supply chainInternet and the supply chain 1. A virtual marketplace1. A virtual marketplace 2. Build to order2. Build to order

Business and Consumer Marketing: Business and Consumer Marketing: A Contrast A Contrast continuationcontinuation

5. Relational emphasis5. Relational emphasisa. Often requires synchronizing a. Often requires synchronizing operations closely with customersoperations closely with customersb. Building a long-term relationship is the b. Building a long-term relationship is the goal goal

$80B/yr

Supply chain: Supply chain: close buyer-seller close buyer-seller interaction to create quality level required interaction to create quality level required by the marketby the market

•

Business and Consumer Marketing: Business and Consumer Marketing: A Contrast A Contrast continuationcontinuation

E. Procurement trends and the supply chainE. Procurement trends and the supply chain1. Longer term and closer relationship with fewer 1. Longer term and closer relationship with fewer

supplierssuppliers

2. Closer interactions among multiple suppliers2. Closer interactions among multiple suppliers

3. Supplier proximity to allow just in time delivery to 3. Supplier proximity to allow just in time delivery to facility etc. facility etc.

F. Managing supply chain relationshipsF. Managing supply chain relationships 1. Concurrent marketing1. Concurrent marketing

50 suppliers, 85% of purchasing (looking for quality eng. support)

Business Market CustomersBusiness Market Customers

A.A.Commercial enterprisesCommercial enterprises

1. Users1. Users

a.a. Purchase goods for use Purchase goods for use in in makingmaking other products other products

b.b. Buy equipment and Buy equipment and machinery that are employed to machinery that are employed to manufacture other productsmanufacture other products

2.2. Original equipment manufacturers OEM’sOriginal equipment manufacturers OEM’s

a.a. Buy products which will be Buy products which will be incorporated into a finished product incorporated into a finished product 

Business Market CustomersBusiness Market Customers

3.3.Dealers and distributorsDealers and distributors

a.Purchase business products for a.Purchase business products for the purpose of reselling them to the purpose of reselling them to users and OEM'susers and OEM's

b.Business middlemen which b.Business middlemen which facilitate the distribution processfacilitate the distribution process

Business Market CustomersBusiness Market Customers

4. Understanding the classifications 4. Understanding the classifications provides guidelines for effective provides guidelines for effective strategy formulationstrategy formulation

a. Users and OEM's may have different a. Users and OEM's may have different buying motivesbuying motives

b. Different types of buyers require different b. Different types of buyers require different emphasis on each element of the marketing emphasis on each element of the marketing mixmix

B. Understanding buying motivationsB. Understanding buying motivations

Classifying Goods for the Classifying Goods for the Business MarketBusiness Market

A. Basis for classificationA. Basis for classification

1.1. How does the product/service enter How does the product/service enter the production process?the production process?

2.2. How will the product/service be How will the product/service be treated in the cost structure?treated in the cost structure?

Classifying Goods for the Business Classifying Goods for the Business MarketMarket

1. Entering goods1. Entering goods

a.a. Become part of the finished product of Become part of the finished product of the purchaserthe purchaser

b. Raw materials and manufactured b. Raw materials and manufactured goodsgoods

c.Treated as expense itemsc.Treated as expense items

Business product categoriesBusiness product categories

Classifying Goods for the Business Classifying Goods for the Business Market Market continuationcontinuation

a.a. Used to produce productsUsed to produce productsb.b. Include installations (buildings, Include installations (buildings,

equipment) and accessory equipment) and accessory equipment (light factory equipment, equipment (light factory equipment, office equipment) office equipment)

c.c. Treated as capital items Treated as capital items

2. Foundation goods2. Foundation goods

Classifying Goods for the Classifying Goods for the Business Market Business Market continuationcontinuation

3.Facilitating goods3.Facilitating goodsa. Supplies and services to support the a. Supplies and services to support the

organization's operations organization's operations

b. Include supplies, repair, and maintenance b. Include supplies, repair, and maintenance items and servicesitems and services

c.Treated as expense itemsc.Treated as expense items

Raw MaterialsRaw Materials- Farm productsFarm products

(e.g. wheat)(e.g. wheat)- Natural productsNatural products

(e.g. iron ore, lumber)(e.g. iron ore, lumber)

Manufactured Manufactured Material Material

& Parts& Parts- Component materialsComponent materials

(e.g. steel)(e.g. steel)

Raw MaterialsRaw Materials- Farm productsFarm products

(e.g. wheat)(e.g. wheat)- Natural productsNatural products

(e.g. iron ore, lumber)(e.g. iron ore, lumber)

Manufactured Manufactured Material Material

& Parts& Parts- Component materialsComponent materials

(e.g. steel)(e.g. steel)

Entering GoodsEntering Goods Foundation GoodsFoundation Goods

InstallationsInstallations - - Building & Land rightsBuilding & Land rights

(e.g. offices)(e.g. offices)

- Fixed Equipment- Fixed Equipment

(e.g. computers, elevators)(e.g. computers, elevators)

Accessory EquipmentAccessory Equipment - - Light factory equipmentLight factory equipment

(e.g. lift trucks)(e.g. lift trucks)

-Office equipment-Office equipment

(e.g. desks, pc’s)(e.g. desks, pc’s)

InstallationsInstallations - - Building & Land rightsBuilding & Land rights

(e.g. offices)(e.g. offices)

- Fixed Equipment- Fixed Equipment

(e.g. computers, elevators)(e.g. computers, elevators)

Accessory EquipmentAccessory Equipment - - Light factory equipmentLight factory equipment

(e.g. lift trucks)(e.g. lift trucks)

-Office equipment-Office equipment

(e.g. desks, pc’s)(e.g. desks, pc’s)Supplies Business Supplies Business ServicesServices

- Operating Supplies – Maintenance & Repair Operating Supplies – Maintenance & Repair ServicesServices

(e.g lubricants, paper) (e.g. computer (e.g lubricants, paper) (e.g. computer repairs)repairs)

- Maintenance and repair items – Business Advisory - Maintenance and repair items – Business Advisory servicesservices

(e.g., paint, screws) (e.g., legal, (e.g., paint, screws) (e.g., legal, advertisement,advertisement,

management management consulting)consulting)

Supplies Business Supplies Business ServicesServices

- Operating Supplies – Maintenance & Repair Operating Supplies – Maintenance & Repair ServicesServices

(e.g lubricants, paper) (e.g. computer (e.g lubricants, paper) (e.g. computer repairs)repairs)

- Maintenance and repair items – Business Advisory - Maintenance and repair items – Business Advisory servicesservices

(e.g., paint, screws) (e.g., legal, (e.g., paint, screws) (e.g., legal, advertisement,advertisement,

management management consulting)consulting)

Facilitating Goods

Business Marketing StrategyBusiness Marketing Strategy

A.A. The business goods classification The business goods classification scheme is valuable because different scheme is valuable because different product categories require different product categories require different marketing strategies marketing strategies

B. The physical nature of the product and B. The physical nature of the product and its intended use by the customer dictate its intended use by the customer dictate marketing program requirementsmarketing program requirements

CustomersCustomers

Consumer goods Consumer goods MarketingMarketing

Business goodsBusiness goodsMarketingMarketing

Numerous widelyDispersed geographically

Few, concentratedgeographically

Buying Buying BehaviorBehavior

Individual decisions

Group decisionsMany buying influences

Buyer/SellerBuyer/Seller Very Little contactVery Close working relationship Interact in product design and problem solving

ProductProduct Standardized Complex; technical;Detailed specificationsAccompanying bundle of services important

PromotionPromotion

Consumer goods Consumer goods MarketingMarketing

Business goodsBusiness goodsMarketingMarketing

Heavily oriented toMass advertisement

Primarily role given to personal selling

ChannelsChannels Indirect, many intermediaries at each level

Direct, fewerIntermediaries atEach level

Discussion Questions Discussion Questions

4.4. Explain how a company such as GE Explain how a company such as GE might be classified by some business might be classified by some business marketers as a marketers as a useruser customer by others customer by others as an as an OEMOEM customer. customer.

A manufacturer of A manufacturer of drill pressesdrill presses would view G.E. would view G.E. as a as a "user""user" because G.E. purchases the drill press because G.E. purchases the drill press to be used in the process of producing their final to be used in the process of producing their final products, such as appliances or jet engines. products, such as appliances or jet engines.

A A manufacturer of steel coilmanufacturer of steel coil, on the other hand, , on the other hand, views G.E. as an views G.E. as an OEMOEM because the coil will because the coil will become an become an actual part of a toasteractual part of a toaster or some other or some other appliance. appliance.

Thus, the distinction is whether G.E. used theThus, the distinction is whether G.E. used the product toproduct to produceproduce their final products or whether it their final products or whether it becomesbecomes part of part of,, or isor is incorporated into, the final incorporated into, the final product.product.

The Professional The Professional Selling Skills Selling Skills

WorkbookWorkbook

Module OneModule One

Discovering Professional Discovering Professional

Selling as a Career Selling as a Career

Experiential Exercise 1.1Experiential Exercise 1.1

Five factors critical to sellingFive factors critical to selling

1.1. EmpathyEmpathy

2.2. Ego DriveEgo Drive

3.3. Ego StrengthEgo Strength

4.4. Verbal communication SkillsVerbal communication Skills

5.5. EnthusiasmEnthusiasm

EmpathyEmpathy

Ability to see things as other would see Ability to see things as other would see themthem

Ego DriveEgo Drive

The degree of determination that an The degree of determination that an individual has to achieve goals and individual has to achieve goals and overcome obstacles in striving for overcome obstacles in striving for successsuccess

Ego StrengthEgo Strength

The degree to which an individual is The degree to which an individual is self-assured and self-acceptingself-assured and self-accepting

Verbal Communication SkillsVerbal Communication Skills

The skill an individual possesses in The skill an individual possesses in effective listening and questioningeffective listening and questioning

EnthusiasmEnthusiasm

A general zest for life’s everyday A general zest for life’s everyday occurrences and a genuine passion for occurrences and a genuine passion for personal sellingpersonal selling

Complete in class exercise Complete in class exercise 1.11.1

Experiential Exercise 1.2Experiential Exercise 1.2

What type of selling do you prefer?What type of selling do you prefer?1.1. Sales SupportSales Support

2.2. New Business salesNew Business sales

3.3. Existing Business salesExisting Business sales

4.4. Inside salesInside sales

5.5. Direct-to Consumer salesDirect-to Consumer sales

6.6. Combination Sales JobsCombination Sales Jobs

Sales SupportSales Support

Missionary or detail Missionary or detail sales peoplesales people Missionary are Missionary are

customary in the customary in the grocery industrygrocery industry

Detail commonly Detail commonly found in the found in the pharmaceutical pharmaceutical industryindustry

Technical support Technical support sales peoplesales people Assist in designAssist in design InstallationInstallation TrainingTraining Follow up servicesFollow up services

Typically not directly involved in actual selling processTypically not directly involved in actual selling process

New Business SalesNew Business Sales

PioneersPioneers New products New products New customersNew customers

Order gettersOrder getters Highly competitive Highly competitive

environmentsenvironments Sell to existing Sell to existing

customers new or customers new or additional items in additional items in the product linethe product line

Insightful and creative selling skills… very important

Existing business salesExisting business sales

Maintaining relationships with existing Maintaining relationships with existing customers is the primary role of existing customers is the primary role of existing business people business people

Easier to maintain and retain existing customersEasier to maintain and retain existing customers Strengths:Strengths:

ReliabilityReliability CompetenceCompetence Ability to provide customers with assuranceAbility to provide customers with assurance

Non-retail salespeople who works with Non-retail salespeople who works with customers inside the organization.customers inside the organization.

Inside salesInside sales

ActiveActive Involved in the Involved in the

complete complete selling selling processprocess

Part of Part of telemarketingtelemarketing

Customer comes to Customer comes to visit facilities to visit facilities to make a purchasemake a purchase

PassivePassive Acceptance rather Acceptance rather

than solicitation of than solicitation of customer orderscustomer orders

Non-retail salespeople who works with customers inside the organization.

Direct to Consumer Sales Direct to Consumer Sales

Retail peopleRetail people Professional stock brokersProfessional stock brokers

Combination Sales JobCombination Sales Job

Selling positions that include some Selling positions that include some combination of the preceding 5 types of combination of the preceding 5 types of sellingselling

Program CompletedProgram Completed

University of Missouri-RollaUniversity of Missouri-Rolla

© 2003 Curators of University of Missouri