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THE ROLE AND IMPORTANCE OF SALES AND SALES PROMOTION IN THE DEVELOPMENT OF CUSTOMER RELATIONS

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Abstract

The importance of sales and its promotion is constantly increasing. Technological progress contributes to the constant development of marketing activities of companies and the introduction of innovations. It is necessary to attract customers and establish a long-term relationship with them. Along with changes in consumer tastes and new preferences, it is necessary for companies to correctly select sales promotion tools and use them effectively. Sales promotion tools can influence consumer buying behavior and loyalty. Companies today focus on existing and new customers. Smart leaders try to focus their business not only on short-term success, but also on long-term results. Relationship marketing influences customer loyalty. Organizations are pooling their efforts to achieve this goal in terms of products, pricing, distribution, incentives and services. In relationship marketing, special attention is paid to loyal buyers. The task of finding and retaining a client becomes increasingly individual. In the face of competition , it is important to know and constantly study your client. Not only to discover its advantages, to guess the hidden desires, but also to understand the reasons why the company is losing its customers. Study of these issues is important in modern conditions. The author discusses the opinions, definitions and views of various researchers regarding the mentioned problem, and then draws conclusions and offers some recommendations .
64
Maia Seturi
Doctor of Science (Economics),
Associate Professor of Marketing Department,
Ivane Javakhishvili Tbilisi State University,
Georgia, Tbilisi
maia.seturi@tsu.ge
ORCID:0000-0003-0246-678X
THE ROLE AND IMPORTANCE OF SALES AND SALES PROMOTION IN THE
DEVELOPMENT OF CUSTOMER RELATIONS
Abstract. The importance of sales and its promotion is constantly increasing. Tech-
nological progress contributes to the constant development of marketing activities of
companies and the introduction of innovations. It is necessary to attract customers and
establish a long-term relationship with them. Along with changes in consumer tastes
and new preferences, it is necessary for companies to correctly select sales promotion
tools and use them eectively. Sales promotion tools can influence consumer buying
behavior and loyalty. Companies today focus on existing and new customers. Smart
leaders try to focus their business not only on short-term success, but also on long-term
results. Relationship marketing influences customer loyalty. Organizations are pooling
their eorts to achieve this goal in terms of products, pricing, distribution, incentives
and services. In relationship marketing, special attention is paid to loyal buyers. The task
of finding and retaining a client becomes increasingly individual. In the face of compe-
tition, it is important to know and constantly study your client. Not only to discover its
advantages, to guess the hidden desires, but also to understand the reasons why the
company is losing its customers. Study of these issues is important in modern condi-
tions. The author discusses the opinions, definitions and views of various researchers
regarding the mentioned problem, and then draws conclusions and oers some rec-
ommendations.
Keywords: customers, sales, personal selling, sales promotion, relationship
marketing
Formulas: 0,tabl.: 0, bibl.: 26
JEL Classication: D11, I31, M31
Introduction. In modern conditions organizations with smart leaders focus on exist-
ing and new buyers, they are focused on the long term perspective, not just the short
term. Such companies combine their eorts to achieve customer loyalty. High quali-
ty service creates loyal customers, that is, those who buy the company's products in
the largest quantities. Such buyers influence other people to buy as well. Loyal buyers
are satisfied with the purchase of the product. They pay money for the benefit of this
company for a long time. Marketing helps to increase sales by oering the quality of
service that customers expect (Seturi, Urotadze 2017). According to modern marketing
approaches the buyer is the main object of the company's attention. Customer prefers
to buy from the company that will give him the most satisfaction. It is very important to
DOI: https://doi.org/10.32070/ec.v2i54.139
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retain customers, but in most cases organizations focus on attracting new customers.
One way to retain customers is to keep them completely satisfied (Seturi 2019).
We studied a number of works of foreign and Georgian scientists in the direction of
sales, sales promotion and relationship marketing. In the process of working on this arti-
cle, from a theoretical and methodological point of view, we relied on available sources
that refer to trade in general, sales and the use of marketing approaches in it. In the
process of studying literary sources and drawing conclusions, we used the methods of
induction, deduction, analysis and synthesis. Thus, we used secondary data in the pro-
cess of work: Internet sources, statistical data, information available on the website of
Georgian companies.
Literature review and the problem statement. Now, while working in the market,
more and more companies are trying to attract the attention of consumers. In the
conditions of the development of market relations in our country, the role of trade
is increasing. Which causes that marketing, trade and sales are becoming an object
of increasing attention in Georgia. It represents an important field of activity that is
in direct contact with the population and ensures the satisfaction of its requirements
(Todua, Mghebrishvili 2017). The volume of sales and the number of employees in this
area have increased (Mghebrishvili, Urotadze 2016). Various forms of non-store trade
are increasingly developing in the country (Mghebrishvili, Seturi 2015). Marketing,
sales and trade had an interesting way of their development in our country (Silagadze,
Mghebrishvili, Keshelashvili 2021).
Sales promotion plays a big role in attracting customers. Kotler Ph. and Armstrong G.
separated from each other such tipes of promotion: consumers, trade (retailers and whole-
salers) and business (industrial buyers) promotion (Kotler, Armstrong 2015).
Blattberg R., taking into account who the stimulation is aimed at, distinguishes
three main types of sales stimulation: consumer stimulation, retailer stimulation, trade
stimulation. Consumer incentives include promotions oered directly to customers
by the manufacturer. Retail incentives means oers made by retailers to consumers.
Stimulating trade through promotions and oers oered by the manufacturer to retailers
(Blattberg 2012).
Sales promotion has dierent methods and approaches. Each of them brings dier-
ent results. It should be taken into account that socio-ethical factors, personal influence
and other factors aect this. For example, there is a "utilitarian and hedonic" utility mod-
el of consumer utility (Chandon 2000). Utilitarian benefits mean functional, cognitive
and instrumental aspects. The user is given the values necessary to achieve the goal.
Hedonic benefits involve a more non-instrumental side and in this case, the functional
side is less valued.
Personal selling is direct communication between a company representative and a
potential buyer (Kotler, Armstrong 2015). The seller's communication eorts are aimed
at providing information to the customer and convincing him to buy the oered prod-
uct. Personal selling is an eective tool for stimulation, because it involves communica-
tion with potential buyers and their response (Kotler, Keller 2015).
After the end of the incentive program of sales promotion consumers may perceive a
particular brand or store as a supplier of expensive products and purchase only during
certain promotions (Gedenk 2006). It is also worth noting the attitude of consumers
towards sales promotion tools. Schindler (Schindler 1998) proposes the notion of re-
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sponsibility for a promotion or discount and the attribution of the reason for accepting
this discount by the so-called "smart consumer" to various factors.
In modern conditions consumers and businesses are influenced by the social networks.
Therefore social media marketing can play a big role in the success of personal sales
representatives and building relationships with customers (Todua, Vashakidze 2018).
In Georgia social media marketing is actively used in the process of personal sales.
However, flexible mechanisms for its assessment are still underdeveloped. Georgian
companies successfully use social media marketing tools to manage relationships with
customers, including personal sales. Most Georgian consumers turn to social media
quite often in relation to personal sales. Facebook, YouTube and Instagram are the
leaders in this respect (Todua, Vashakidze 2020).
Salespeople must be able to adapt their strategies to customer needs, customer
communication styles, relationship needs and strategies. This is followed by a compre-
hensive discussion of how to achieve eective sales and career development through
planning and continuous learning (Castleberry, Tanner 2010).
Sellers provide potential buyers with information about the products they sell, so
they can improve brand perception, which is of great importance in modern conditions
(Seturi, Todua 2019).
Personal selling has features: it involves a direct and interactive relationship between
two or more people, where each party can more closely observe the reactions of the
others; personal selling enables dierent types of relationships to emerge, from sales
relationships to friendships; reaction because personal selling forces buyers to listen to
the salesperson (Firmansyah, Margono 2019).
Recommended find it useful to group customer needs into main types that focus
on the buying situation and benefits. They are described as follows: situational needs,
functional needs, social needs, psychological needs, knowledge needs. Categorizing
buyer needs by type can assist the salesperson in bringing order to what could other-
wise be a confusing and endless mix of needs and expectations (Ingram, Avila 2015).
The company can use dierent approaches and means to retain the buyer. In this
regard, it is possible to use the following tools: price and discounts; purchases - in-
centives during purchase; points and system of accumulation of points; unification of
partner companies to create a single system of points accumulation; gifts and prizes; By
purchasing the product, the buyer participates in various social programs; Privileges for
permanent clients; personalization or individualization of services; participation of the
buyer in the process of improvement of products; Speed - the speed and eciency of
solving the problems raised by the buyer (Kochlamazashvili, Kandashvili 2011). The use
of various stimulating promotions has a positive eect on the increase in sales volume.
Various short-term incentives or sales incentives encourage customers to buy a
product or service and oer a reason to buy right now. The purpose of action-oriented
marketing measures is to directly influence the behavior of the firm's customers
(Chaharsoughi, Yasory 2012).
The importance of discount incentives for firms has been discussed in a number of
studies. A key premise of these studies is that discounts aect consumers who are only
interested in the economic value of the money saved. However, research and business
practices show that this is not always the case. Therefore, it is interesting to ask the fol-
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lowing question: are there any benefits other than monetary savings that give impetus
to consumers (Bicen, Madhavaram 2013).
In the field of sales ethics, researchers have increasingly focused on the emotional
elements of sales and ethics. Researchers Raj Agnihotri & Michael T. Krush developed a
model based on an ethical view of the interaction between person and situation. They
investigate the eects of a basic social emotion, empathy, as an important situational
aspect, and the influence of trust in a sales manager on ethical behavior. They study the
influence of a salesperson's ethical behavior on his sales growth (performance results)
(Agnihotri, Krush 2015).
According to one view, factors influencing the formation of customer loyalty to the
company can be divide to material and non-material factors. Material factors focus on
the customer's need to make a profit by saving money and time. They can be divid-
ed into traditional and software factors. Traditional material factors can be attributed
to: location of trading points; assortment of goods, its quality, etc. With these factors,
repeat purchases are made by the customer not based on thoughtful and emotional
loyalty, but "automatically". Programmatic factors of loyalty include: preferential dis-
counts, gift with purchase, special loyalty programs. The immaterial factors ensure the
emotional satisfaction of the client with high-quality service and attention to the buyer
(Kochlamazashvili, Kandashvili 2011).
Specific actions to build relationships with customers vary significantly from company
to company, but they are crucial to build long-term relationships (Ingram, Avila 2015). As
for sales, it builds the relationships necessary to succeed in a competitive market. After
receiving the initial order, the sales representative should schedule a return visit from
the customer to ensure that all promises regarding installation, training, and service
have been fulfilled. Which will reveal any issues during this time, alleviating any doubts
and concerns that may arise after the sale is complete. The seller visits the buyer again
to make sure he is satisfied and will continue to buy in the future (Olariu, Ioana 2016).
Personal qualities that salespeople need to build long-term relationships: caring for
customer, joy at work, harmony in the relationship, patience in closing the sale, kind
to people, morally ethical, faithful to word, fairness in the sale, self-control in emotions
(Futrell 2011).
The organization's sales representative must be competent. The term competence
refers to the basic qualities expected of a sales representative. This includes: courage,
cleanliness, fluency in communication, deep knowledge of the products themselves, etc.
When this happens, consumer demand for the product increases (Adewale, Adeniran,
Oluyinka 2019).
Sales personnel serve other people, contribute greatly to the well-being of people,
help consumers make purchasing decisions. Unfortunately, their salaries are very low in
our country today. Only a truly motivated sales force will be able to put customer needs
first (Seturi 2020).
Research results. One of the most important tasks facing Georgia is to achieve
economic growth, which is impossible without the growth of production of Georgian
products and the development of business as the main driver of economic progress.
And sales can play an important role in the country's economy. Sales directly aect the
company's success in the market. The work of companies in the market is becoming
more dicult. With the help of marketing communication tools, companies try to pro-
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vide information, convince and remind their products to consumers in direct or indirect
ways. Personal selling and sales promotion occupies an important place in marketing
communications.
Personal selling allows sellers to tailor their presentation to each potential buyer.
A salesperson can see the customer's reaction to his selling approach and adjust it if
necessary. Sales promotion helps companies to increase their sales volume more. In-
creased brand loyalty is beneficial for the manufacturer, but may not be so beneficial for
the retailer. Therefore, there is a need to identify the reasons for the increase in sales.
Sales promotion has short-term and long-term eects. Sales growth in the short term
can also aect the long term. The dramatic increase in purchases and loyalty may not be
sustained after the end of the incentive program.
Each method of sales and sales promotion brings dierent results and eects. In de-
veloping sales promotion tools, it is necessary to consider not only the benefits of the
manufacturer and the retailer, but also the consumer's impressions.
In the conditions of competition, it is of great importance to know and constantly
study your own client, not only to reveal its advantages, to guess the hidden desires, but
also to understand the reasons for which some customers go to competitors. Selling in
the twenty-first century is no longer as easy as it was in the last century - when demand
often exceeded supply. Today, the client is more demanding and the seller needs much
more eort. A fake smile is not enough for buyers.
It is also worth noting that in modern conditions consumers and businesses are influ-
enced by the Internet and social networks. Which requires by companies to use them
eectively.
The success of companies greatly depends on their sales departments, as they inter-
act directly with customers. Therefore, they have the greatest impact on sales. The com-
pany needs to hire a salesperson with excellent communication and interactive skills.
Success factors in personal selling can be measured by many indicators.
Needs of potential customers is numerous. it is dicult for salespeople to perceive
and understand them on a customer-by-customer basis. Discounts and sales incentives
greatly influence buyer decisions. However, this alone does not define the loyalty of
buyers.
The most important issue in sales is consideration of ethical principles by sellers. It is
worth noting that consumers buy not only under the influence of rational motives, but
they are also influenced by emotional aspects.
Keeping customers satisfied is important because it leads to their trust. Unfortunate-
ly, many companies do not realize the importance of this issue. Professional salespeo-
ple see their customer base as an extremely valuable asset that cannot be ignored. To
maintain and strengthen customer relationships, salespeople are involved in perform-
ing after-sales activities.
Companies' levels of customer relationships vary. Many organizations just sell prod-
ucts to customers and then forget about them, while some organizations develop close
relationships with their buyers. Establishing a long-term relationship between a sales
representative and a customer is facilitated by the establishment of trust between them.
Consumers want to deal with a seller they trust. If the company wants the buyer to re-
turn to it, it must satisfy the customer and provide a high quality of service.
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A salesperson must possess the art of a good sales presentation. The core of a sales
presentation is the discussion of the product, marketing plan, and business proposition.
With a great presentation, sales personnel can ethically serve others, build long-term
relationships based on truth. Sales personnel work in dierent ways. They deal with
many cases. Each customer contact presents a unique challenge for salespeople.
The professional activity of sales sta is dicult and requires a lot of eort. Some-
times people have negative attitudes and opinions towards sales sta. However, such
an attitude is not always unfounded. When sellers mislead consumers, it negatively af-
fects consumers. Personal selling can make a buyer want to buy. Personal selling influ-
ences customer demand for a product. When an organization's sales representative is
viable and competent, there is a positive increase in customer demand.
Motivating salespeople has always been one of the main challenges for sales leaders
and, for companies as a whole. Recently, such challenges have intensified. The motiva-
tion of the sales sta is one of the important issues. Increasing the wages of sales work-
ers in direct contact with customers can bring positive results.
Conclusions. Sales promotion and personal selling are important elements in a uni-
fied system of marketing communications. Producering organizations must orient the
work of each of their sales representatives in such a way as to ensure an increase in de-
mand for the product to be sold. Because even a quality product cannot be sold on its
own, but with the help of a sales representative and personal selling, the product can
be sold best. It should also be noted that in the conditions of the modern competitive
market, the role and importance of sales stimulation has increased. However, there are
frequent shortcomings in this direction, for the correction of which we have some rec-
ommendations:
Customer loyalty is influenced by the sales personnel, but in order to achieve the
best and long-term results, it is necessary that the entire company itself is focused
on the customer. This involves taking the following measures: the image of the
company should be attractive to the client, customer service standards should be
developed, service standards should be implemented and controlled;
Only promotions cannot help companies to retain buyers; Because the business
is developing rapidly, the competition in the market is increasing, it is necessary
to rely on basic and fundamental issues;
Retention of customers is carried out by fully satisfying their needs. The customer
evaluates and determines the degree of satisfaction. And customer satisfaction is
the result of the company's overall activity.
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Received: 18.02.2022 Accepted: 15.04.2022 Published: 30.04.2022
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Volume 2(54) 2022
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