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Personal Selling, Sales Management, &
Direct Marketing
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Chapter Objectives
• role of personal selling within the promotion mix
• steps in personal selling process
• role of the sales manager
• direct marketing
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SELLING
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Personal Selling
• when a company representative
• interacts directly
• with a (prospective) customer
• to communicate
• about a good or service
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Personal Selling
• Personal touch” is more effective than mass-media appeal.
• Selling/sales management
• jobs provide high mobility, especially for college grads with marketing background.
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The Role of Personal Selling
• Personal selling is more important: --when firm uses push strategy.--in B2B contexts. --with inexperienced consumers • who need hands-on assistance.
--for products bought infrequently • (houses, cars, computers).
• Cost per contact is very high.
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Technology and Personal Selling
• Customer relationship management (CRM) software
• partner relationship management (PRM)
• Teleconferencing, • Video-conferencing, • Improved corporate Web sites• Voice-over Internet protocol • Assorted wireless technologies
SALESFORCE.COM
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Types of Sales Jobs
• Order taker Facilitate transactions tha the customer initiates
• Technical specialist High skilled technical expertise who assist in product demonstration
• Missionary salesperson Promotes firm and (stimulate clients (demand) to buy)
• New-business salesperson Cold calls, breaking in new territory Finding new customers and calling them to present the company products
• order getter Salesperson who works to develop long term relationship with customer /
generate sales
• Team selling & cross-functional team Sales function by team consist sales person, technical specialist and others
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Approaches to Personal Selling
• Transactional selling: Putting on the hard sellHigh-pressure processfocuses on immediate sales no concern for developing
long-term customer relationship
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Approaches to Personal Selling (cont’d)
•Relationship sellingProcess of building long-term customers
by developing mutually satisfying, win-win relationships with customers
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Creative selling Process
• Makes positive transactions happen
• Series of activities
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Figure 14.1: Steps in Creative Selling Process
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The Creative Selling Process
• Step 1: Prospecting and qualifying--Prospecting:
• developing a list of potential customers
--Qualifying: • determining how likely potential customers are to
become customers
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The Creative Selling Process (cont’d)
• Step 2: Pre-approachCompiling prospective customers’
• background information
planning the sales interview
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The Creative Selling Process (cont’d)
• Step 2: Pre-approachPurchase history, current needs, customer’s interests
From • informal sources, • CRM system, • customers’ Web sites, • and/or business publications
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The Creative Selling Process (cont’d)
• Step 3: ApproachContacting the prospectLearning prospect’s needs, create a good impression, build rapport
• “You never get a second chance to make a good first impression.”
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The Creative Selling Process (cont’d)
• Step 4: Sales presentationbenefits & added value
• of product/firm
advantages over competitionInviting customer involvement
• in conversation
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Step 5: Handling Objections
• Anticipating why prospect is reluctant to make a commitment
• Welcoming objections
• Handling objections successfully to move prospect to decision stage
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Step 6: Closing the Sale
• Gaining the customer’s commitment • in the decision stage
--Last-objection close
--Assumptive close
--minor-points close
--Standing-room-only close
--buy-now close
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Step 7: Follow-Up
• Arranging for delivery, Ensuring sure customer received delivery and is satisfied
• PaymentCredit, factors, etc.
• purchase terms•Bridging to next purchase
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Figure 14.2: The Sales Force Management Process
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Sales Management: Sales force objectives
• What sales force is expected to accomplish and when
Customer Satisfaction
Loyalty
Retention / turnover
New customer development
New product suggestions
Training
Reporting on competition
Community involvement
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Creating a Sales Force Strategy
• Establishing structure and size of a firm’s sales force
• Sales territory: a set group of customersGeographic sales force structureProduct-class sales territoriesIndustry specializationkey/major accounts
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Recruiting, Training, & Rewarding
• Recruiting the right peopleGood listening and follow-up skillsadaptive style
• from situation to situation
TenacityHigh level of personal organization
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Recruiting, Training, & Rewarding
• Sales training:
• teaches salespeople about firm,
• its products,
• how to develop skills,
• knowledge, and
• attitudes to succeed
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Recruiting, Training, and Rewarding
• Paying salespeople well to motivate themStraight commission plan Commission-with-draw plan Straight salary plan
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Recruiting, Training, and Rewarding
• Running sales contests for short-term sales boost
• Call reports: which customers were called on and how call went
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Evaluating the Sales Force
• Is sales force meeting its objectives?• What are possible causes of failure?
Measuring performance
Monitoring expense accounts
for travel and entertainment
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DIRECT MARKETING
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Direct Marketing
• Any direct communication to a consumer or business recipient
• designed to generate a response
DIRECT MARKETINGASSOCIATION
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Direct Marketing
• Response: • in the form of an
order, request for further information, a visit to a store
• other place of business
• for purchase of a product
DIRECT MARKETINGASSOCIATION
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Direct Marketing: MAIL ORDER
• Catalogs: collection of products
• offered for sale
described in book form, product descriptions and photos
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Direct Marketing: MAIL ORDER
• Direct mail: brochure/pamphlet offering a specific good/service at one point in time
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Direct Marketing: telemarketing
• conducted over the telephoneMore profitable for business
• than consumer markets
In 2003, FTC established: • National Do Not Call registry
FEDERAL DO NOT CALL REGISTRY
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Direct Marketing (cont’d)
• Direct-response advertising:
• allows consumer to respond
• by contacting the provider
• with questions or an order
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Direct Marketing (cont’d)
• Direct-response TV (DRTV): • short commercials, • 30-minute+ infomercials, • home shopping networks
–HSN–QVC–Jewelry television–ShopNBC–Gemtv
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Direct Marketing (cont’d)
• M-Commerce: • promotional & other e-commerce activities
• transmitted over mobile phones/devices
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Direct Marketing (cont’d)
• M-Commerce: (SMS)
• Short-messaging system marketing
Spim: • instant-messaging version of spam
Adware: • software that tracks Web habits/interests, • presenting pop-up ads• resetting home page
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THE END
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Group Activity
• Your group are field salespeople for a firm that markets university textbooks.
• As part of your training, your sales manager asks you to outline what you’ll say in a typical sales presentation.--Write that outline.
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Discussion
• Will sales training and development needs vary based on how long salespeople have been in the business? Why or why not?
• Is it possible (and feasible) to offer different training programs for salespeople at different career stages? Why or why not?
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Discussion
• Based on the compensation figures in the chapter, do you think professional salespeople are appropriately paid? Why or why not?
• What do salespeople do that warrants the compensation indicated?
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Discussion
• M-commerce allows marketers to pinpoint where consumers are and send them messages about a local store. --Do you think consumers will respond positively to m-
commerce? --What benefits do you think it offers them?