marketing communications and personal selling
TRANSCRIPT
1Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Marketing Communications Marketing Communications and Personal Sellingand Personal Selling
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 12
2Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning ObjectivesLearning Objectives
1. Discuss the role of promotion in the marketing mix.
2. Discuss the elements of the promotional mix.
3. Discuss the concept of integrated marketing communications.
4. Describe the communication process.
3Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objectives Learning Objectives (continued)(continued)
4. Explain the goal and tasks of promotion.
5. Discuss the AIDA concept and its relationship to the promotional mix.
6. Describe the factors that affect the promotional mix.
4Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objectives Learning Objectives (continued)(continued)
8. Describe personal selling.
9. Discuss the key differences between relationship selling and traditional
selling.
10. List the steps in the selling process.
11. Describe the functions of sales management.
5Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Discuss the role of promotion in the marketing mix.
11
On Linehttp://www.maxim-magazine.co.uk
On Linehttp://www.maxim-magazine.co.uk
6Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
PromotionPromotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to
influence an opinion or
elicit a response.
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7Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Promotional StrategyPromotional Strategy
A plan for the optimal use
of the elements of
promotion:
Personal Selling Personal Selling
AdvertisingAdvertising
Public RelationsPublic Relations
Sales PromotionSales Promotion
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8Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Role of PromotionThe Role of Promotion
Overall Overall Marketing Marketing ObjectivesObjectives
Overall Overall Marketing Marketing ObjectivesObjectives
Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice
Marketing MixMarketing Mix• ProductProduct• DistributionDistribution• PromotionPromotion• PricePrice
Target MarketTarget MarketTarget MarketTarget Market
Promotional MixPromotional Mix
•Advertising•Public Relations•Personal Selling•Sales Promotion
Promotion PlanPromotion Plan
Promotional MixPromotional Mix
•Advertising•Public Relations•Personal Selling•Sales Promotion
Promotion PlanPromotion Plan
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9Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Competitive AdvantageCompetitive Advantage
Unique FeaturesUnique Features
Excellent ServiceExcellent Service
Low PricesLow Prices
Rapid DeliveryRapid Delivery
High Product QualityHigh Product Quality
FeaturesFeaturesthat Providethat ProvideCompetitiveCompetitiveAdvantageAdvantage
FeaturesFeaturesthat Providethat ProvideCompetitiveCompetitiveAdvantageAdvantage
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10Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Discuss the elements of the promotional mix.
22
11Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
On Linehttp://www.nabiscoworld.com
On Linehttp://www.nabiscoworld.com
Promotional MixPromotional Mix
Personal SellingPersonal Selling
Elementsof the
PromotionalMix
Elementsof the
PromotionalMix
AdvertisingAdvertising
Public RelationsPublic Relations
Sales PromotionSales Promotion
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12Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Personal SellingPersonal Selling
Traditional Traditional SellingSelling
Traditional Traditional SellingSelling
Relationship Relationship SellingSelling
Relationship Relationship SellingSelling
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Planned presentation to
one or more prospective
buyers for the purpose
of making a sale.
13Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
AdvertisingAdvertising
Impersonal, one-way
mass communication
about a product or
organization that is
paid for by a marketer.
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14Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Advertising MediaAdvertising Media
Traditional Advertising Media
Traditional Advertising Media
ElectronicAdvertising Media
ElectronicAdvertising Media
Television Radio Newspapers Magazines Books Direct mail Billboards Transit cards
Internet Electronic mail Interactive video
22
On Linehttp://www.olympics.orghttp://www.olympics.com
On Linehttp://www.olympics.orghttp://www.olympics.com
15Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
AdvertisingAdvertising
AdvantagesAdvantages
Reach large number of people
Low cost per contact
Can be micro-targeted
DisadvantagesDisadvantages
Total cost is high
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16Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Public RelationsPublic Relations
The marketing function that
evaluates public attitudes,
identifies areas within the
organization that the public
may be interested in, and
executes a program of action
to earn public understanding
and acceptance.
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17Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Public RelationsPublic Relations
Evaluates public attitudes
Evaluates public attitudes
Identifies areas of public interestIdentifies areas of public interest
Executes programs to “win” public
Executes programs to “win” public
Functions ofFunctions ofPublic RelationsPublic Relations
Functions ofFunctions ofPublic RelationsPublic Relations
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18Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
PublicityPublicity
Public information about a
company, good, or service
appearing in the mass media
as a news item.
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19Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Sales PromotionSales Promotion
GOAL is to stimulate consumer
buying and dealer
effectiveness.
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EndConsumers
EndConsumers
Trade Customers
Trade Customers
CompanyEmployees Company
Employees
Sales PromotionSales PromotionTargetsTargets
Sales PromotionSales PromotionTargetsTargets
20Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Sales Promotion Sales Promotion
Free samplesFree samples
ContestsContests
PremiumsPremiums
Trade ShowsTrade Shows
Vacation GiveawaysVacation Giveaways
CouponsCoupons
Popular ToolsPopular Toolsforfor
Consumer SalesConsumer SalesPromotionPromotion
Popular ToolsPopular Toolsforfor
Consumer SalesConsumer SalesPromotionPromotion
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21Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Discuss the concept Discuss the concept of integrated of integrated marketing marketing communications.communications.
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22Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Integrated Marketing Integrated Marketing CommunicationsCommunications
A method of carefully
coordinating all
promotional activities to
produce a consistent,
unified message that is
customer focused.
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23Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
IMC Popularity GrowthIMC Popularity Growth
Proliferation of thousands of media choices
Fragmentation of the mass market
Slash of advertising spending in favor of promotional techniques
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24Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Describe the communication process.
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25Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
CommunicationCommunication
The process by which we
exchange or share
meanings through a
common set of symbols.
44
26Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Marketing CommunicationMarketing Communication
Categories of CommunicationCategories of
Communication
InterpersonalInterpersonalCommunicationCommunicationInterpersonalInterpersonal
CommunicationCommunicationMassMass
CommunicationCommunicationMassMass
CommunicationCommunication
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27Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Communication ProcessThe Communication Process
NoiseNoise
SenderSender EncodingMessage
EncodingMessage
FeedbackChannel
FeedbackChannel
MessageChannel
MessageChannel
DecodingMessage
DecodingMessage ReceiverReceiver
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28Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Communication ProcessThe Communication Process
As SendersAs Senders As ReceiversAs Receivers
Inform
Persuade
Remind
Develop messages
Adapt messages
Spot new communication opportunities
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29Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Characteristics of AdvertisingCharacteristics of Advertising
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
AdvertisingAdvertisingAdvertisingAdvertising
Indirect and non-personal Indirect and non-personal
LowLow
LittleLittle
DelayedDelayed
One-wayOne-way
YesYes
YesYes
Fast Fast
Same message to all audiencesSame message to all audiences
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30Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Characteristics of Public Characteristics of Public RelationsRelations
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
Public RelationsPublic RelationsPublic RelationsPublic Relations
Usually indirect, non-personal Usually indirect, non-personal
Moderate to lowModerate to low
LittleLittle
DelayedDelayed
One-wayOne-way
NoNo
NoNo
Usually fast Usually fast
Usually no direct controlUsually no direct control
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31Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Characteristics of Characteristics of Sales PromotionSales Promotion
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
Sales PromotionSales PromotionSales PromotionSales Promotion
Usually indirect and non-personal Usually indirect and non-personal
Moderate to lowModerate to low
Little to moderateLittle to moderate
VariesVaries
Mostly one-wayMostly one-way
YesYes
YesYes
Fast Fast
Same message to varied targetSame message to varied target
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32Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Characteristics of Personal Characteristics of Personal SellingSelling
Communication Mode Communication Mode
Communication ControlCommunication Control
Feedback AmountFeedback Amount
Feedback SpeedFeedback Speed
Message Flow DirectionMessage Flow Direction
Message Content ControlMessage Content Control
Sponsor IdentificationSponsor Identification
Reaching Large Audience Reaching Large Audience
Message FlexibilityMessage Flexibility
Personal SellingPersonal SellingPersonal SellingPersonal Selling
Direct and face-to-face Direct and face-to-face
HighHigh
MuchMuch
ImmediateImmediate
Two-wayTwo-way
YesYes
YesYes
Slow Slow
Tailored to prospectTailored to prospect
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33Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Explain the goal and tasks of promotion.
55
34Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Goals and Tasks of PromotionGoals and Tasks of Promotion
InformingInforming RemindingReminding
PersuadingPersuading
TargetAudienceTarget
Audience
PLC StagesPLC Stages:Introduction Early Growth
PLC Stages:PLC Stages:Growth Maturity
PLC Stages:PLC Stages:Maturity
55
35Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Goals and Tasks of PromotionGoals and Tasks of Promotion
Informative Objective
Increase awareness
Explain how product works
Suggest new uses
Build company image
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36Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Goals and Tasks of PromotionGoals and Tasks of Promotion
Persuasion Objective
Encourage brand switching
Change customers’ perception of product attributes
Influence buying decision
Persuade customers to call
55
37Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Goals and Tasks of PromotionGoals and Tasks of Promotion
Reminder Objective
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
55
On Linehttp://www.tide.com
On Linehttp://www.tide.com
38Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Discuss the AIDA concept and its relationship to the promotional mix.
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39Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The AIDA ConceptThe AIDA Concept
Model that outlines the process
for achieving promotional goals
in terms of stages of consumer
involvement with the message.
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40Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
AIDA and the Promotional MixAIDA and the Promotional Mix
AwarenessAwareness InterestInterest DesireDesire ActionAction
AdvertisingAdvertising Veryeffective
Veryeffective
Somewhateffective
Noteffective
PublicPublicRelationsRelations
Veryeffective
Veryeffective
Veryeffective
Noteffective
SalesSalesPromotionPromotion
Somewhateffective
Somewhateffective
Veryeffective
Somewhat effective
PersonalPersonalSellingSelling
Somewhateffective
Veryeffective
Veryeffective
Veryeffective
66
41Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Describe the factors that affect the promotional mix.
77
On Linehttp://www.nascar.comhttp://www.kelloggs.com
On Linehttp://www.nascar.comhttp://www.kelloggs.com
42Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Factors Affecting the Factors Affecting the Choice of Promotional MixChoice of Promotional Mix
Nature of the ProductNature of the Product
Stage in PLCStage in PLC
Target Market FactorsTarget Market Factors
Type of Buying DecisionType of Buying Decision
Promotion FundsPromotion Funds
Push or Pull StrategyPush or Pull Strategy
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43Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Product Life Cycle and theProduct Life Cycle and thePromotional MixPromotional Mix
Light Advertising;
pre-introduction
publicity
Heavy use of Advertising;
PR forawareness;
sales promotion
for trial
AD/PRdecrease;
limited sales
promotion; personal selling for
distribution
Ads decrease;
sales promotion;
personal selling;
reminder & persuasive
Advertising’ PR, brand
loyalty;personal selling for
distribution
IntroductionIntroduction GrowthGrowth
MaturityMaturityDeclineDecline
Sal
es (
$)S
ales
($)
TimeTime
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44Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Target Market CharacteristicsTarget Market Characteristics
FOR:
Widely scattered market
Informed buyers
Repeat buyersAdvertisingAdvertising
Sales PromotionSales Promotion
Less Personal SellingLess Personal Selling
77On Linehttp://www.radioguide.comhttp://www.nytimes.comhttp://www.usatoday.com
On Linehttp://www.radioguide.comhttp://www.nytimes.comhttp://www.usatoday.com
45Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Type of Buying DecisionType of Buying Decision
Advertising
Sales PromotionType ofType of
Buying DecisionBuying DecisionAffectsAffects
Promotional Promotional Mix ChoiceMix Choice
Type ofType ofBuying DecisionBuying Decision
AffectsAffectsPromotional Promotional Mix ChoiceMix Choice
ComplexComplexComplexComplex
RoutineRoutineRoutineRoutine
Personal Selling
Not RoutineNot Routineor Complexor Complex
Not RoutineNot Routineor Complexor Complex
Advertising
Public Relations
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46Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Available FundsAvailable Funds
Trade-offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
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47Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Push and Pull StrategiesPush and Pull Strategies
ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler
ManufacturerManufacturerpromotes to promotes to wholesalerwholesaler
Wholesaler Wholesaler promotes to promotes to
retailerretailer
Wholesaler Wholesaler promotes to promotes to
retailerretailer
Retailer Retailer promotes topromotes toconsumerconsumer
Retailer Retailer promotes topromotes toconsumerconsumer
ConsumerConsumerbuys frombuys from
retailerretailer
ConsumerConsumerbuys frombuys from
retailerretailer
PUSH STRATEGYPUSH STRATEGY
Orders to manufacturer
ManufacturerManufacturerpromotes to promotes to
consumerconsumer
ManufacturerManufacturerpromotes to promotes to
consumerconsumer
Consumer Consumer demands demands productproduct
from retailerfrom retailer
Consumer Consumer demands demands productproduct
from retailerfrom retailer
Retailer Retailer demands demands productproduct
from wholesalerfrom wholesaler
Retailer Retailer demands demands productproduct
from wholesalerfrom wholesaler
Wholesaler Wholesaler demandsdemands
product fromproduct frommanufacturermanufacturer
Wholesaler Wholesaler demandsdemands
product fromproduct frommanufacturermanufacturer
Orders to manufacturer
PULL STRATEGYPULL STRATEGY
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48Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Describe personal selling.
88
49Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Advantages of Personal Advantages of Personal SellingSelling
Provides a detailed explanation or demonstration of product
Message can be varied to fit the needs of each prospective customer
Can be directed to specific qualified prospects
Costs can be controlled by adjusting sales force size
Most effective method to obtain sales and gain satisfied customers
88
50Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Personal SellingPersonal Selling
Customers are concentrated
Customers are concentrated
There are few customersThere are few customers
Product is technically complex
Product is technically complex
Product is custom madeProduct is custom made
Product has a high valueProduct has a high value
Personal Selling Personal Selling is more important if...is more important if...
Customers are geographically dispersed
Customers are geographically dispersed
There are many customersThere are many customers
Product is simple to understand
Product is simple to understand
Product is standardizedProduct is standardized
Product has a low valueProduct has a low value
Advertising & Sales Promotion Advertising & Sales Promotion are more important if...are more important if...
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51Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Discuss the key differences between relationship selling and traditional selling.
99
52Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Relationship SellingRelationship Selling
A sales practice that
involves building,
maintaining, and enhancing
interactions with customers
in order to develop long-
term satisfaction through
mutually beneficial
partnerships.
99
53Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Relationship Selling Relationship Selling vs. Traditional Sellingvs. Traditional Selling
Sell advice, assistance, counsel Sell advice, assistance, counsel Sell products
TraditionalTraditionalPersonal SellingPersonal Selling
Focus on closing salesFocus on closing sales
Limited sales planningLimited sales planning
Discuss productDiscuss product
Assess “Product-specific” needsAssess “Product-specific” needs
“Lone wolf” approach“Lone wolf” approach
Pricing/product focusPricing/product focus
Short-term sales follow-up Short-term sales follow-up
Focus on customer’s bottom lineFocus on customer’s bottom line
Sales planning is top prioritySales planning is top priority
Build problem-solving environmentBuild problem-solving environment
Conduct discovery in scope of operationsConduct discovery in scope of operations
Team approachTeam approach
Profit impact and strategic benefit focusProfit impact and strategic benefit focus
Long-term sales follow-up Long-term sales follow-up
Relationship SellingRelationship Selling
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54Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
List the steps in the selling process.
1010
55Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Steps in the Selling ProcessSteps in the Selling Process
Generate LeadsGenerate Leads
Qualify LeadsQualify Leads
Probe Customer NeedsProbe Customer Needs
Develop SolutionsDevelop Solutions
Handle ObjectionsHandle Objections
Close the SaleClose the Sale
Follow UpFollow Up
1010
56Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Time Spent in Key Steps Time Spent in Key Steps of Selling Processof Selling Process
Key Selling Steps Traditional
Selling
Relationship
Selling
Generate Leads High Low
Qualify Leads Low High
Probe Needs Low High
Develop Solutions Low High
Handle Objections High Low
Close the sale High Low
Follow-up Low High
1010
57Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
On Linehttp://www.goleads.com
On Linehttp://www.goleads.com Generating LeadsGenerating Leads
Cold CallingCold CallingAdvertisingAdvertising PublicityPublicity Direct Mail/TelemarketingDirect Mail/
Telemarketing
Trade Shows/Conventions
Trade Shows/Conventions
Internet Web Site
Internet Web Site ReferralsReferrals NetworkingNetworking
Company Records
Company Records
Sources ofSources ofSales LeadsSales LeadsSources ofSources of
Sales LeadsSales Leads
1010
58Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Qualifying LeadsQualifying Leads
Recognized NeedRecognized Need
Buying PowerBuying Power
Receptivity & Accessibility
Receptivity & Accessibility
Characteristics ofCharacteristics ofQualified LeadsQualified Leads
Characteristics ofCharacteristics ofQualified LeadsQualified Leads
1010On Linehttp://www.hoovers.comhttp://www.dnb.com
On Linehttp://www.hoovers.comhttp://www.dnb.com
59Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Needs AssessmentNeeds Assessment
A determination of the
customer’s specific needs
and wants and the range
of options a customer has
for satisfying them.
1010
60Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Probing NeedsProbing Needs
Product or serviceProduct or service
Customers and their needsCustomers and their needs
CompetitionCompetition
IndustryIndustry
Salesperson must knoweverything
about...
Salesperson must knoweverything
about...
1010
61Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Developing and Developing and Proposing SolutionsProposing Solutions
Sales ProposalSales Proposal
Sales PresentationSales Presentation
1010
62Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Handling ObjectionsHandling Objections
Handling Handling
ObjectionsObjections
Handling Handling
ObjectionsObjections
Use the objection to close the sale
Use the objection to close the sale
Anticipate specific objections
Anticipate specific objections
View objections as requests for information
View objections as requests for information
1010
63Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Closing the SaleClosing the Sale
Closing Closing the Salethe Sale
Closing Closing the Salethe Sale
NegotiateNegotiate
Keep an open mindKeep an open mind
Look for customer signals
Look for customer signals
1010
64Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Following UpFollowing Up
ResponsibilitiesResponsibilitiesinin
Following UpFollowing Up
ResponsibilitiesResponsibilitiesinin
Following UpFollowing Up
Employees are trainedEmployees are trained
Goods or service performas promised
Goods or service performas promised
Ensure delivery schedules are metEnsure delivery
schedules are met
1010
65Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Describe the functions of sales management.
1111
66Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Sales Management ResponsibilitiesSales Management Responsibilities
Evaluate sales forceEvaluate sales force
Compensate and motivatesales force
Compensate and motivatesales force
Recruit and trainsales force
Recruit and trainsales force
Determine sales force structure
Determine sales force structure
Define sales goals andsales process
Define sales goals andsales process
Tasks of Tasks of Sales ManagementSales Management
Tasks of Tasks of Sales ManagementSales Management
1111
67Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Defining Sales GoalsDefining Sales Goals
ClearClear
PrecisePrecise
MeasurableMeasurable
Time SpecificTime Specific
Sales GoalsShould Be...Sales GoalsShould Be...
1111
68Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Sales Force StructureSales Force Structure
CommonCommonSalesSales
OrganizationOrganizationStructuresStructures
CommonCommonSalesSales
OrganizationOrganizationStructuresStructures
Individual client or account
Individual client or account
Market or IndustryMarket or Industry
Marketing FunctionMarketing Function
Product LineProduct Line
Geographic RegionGeographic Region
1111
69Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Training the Sales ForceTraining the Sales Force
Training Training includes...includes...
Training Training includes...includes...
Nonselling dutiesNonselling duties
Industry and customer characteristics
Industry and customer characteristics
Product knowledgeProduct knowledge
Selling techniquesSelling techniques
Company policies and practice
Company policies and practice
1111
70Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Compensation Plans: Compensation Plans: Basic MethodsBasic Methods
CommissionCommission
SalarySalary
CombinationPlans
CombinationPlans
1111
The salesperson is paid some percentage when a sale is made.The salesperson is paid some percentage when a sale is made.
The salesperson receives a salary regardless of sales productivity.
The salesperson receives a salary regardless of sales productivity.
71Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Effective Sales LeadersEffective Sales Leaders
Effective Sales LeadersEffective Sales Leaders......Effective Sales LeadersEffective Sales Leaders......
Are assertive Are assertive
Possess ego drivePossess ego drive
Possess ego strengthPossess ego strength
Take risksTake risks
Are innovativeAre innovative
Have a sense of urgencyHave a sense of urgency
Are empatheticAre empathetic
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72Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Evaluating the Sales Force: Evaluating the Sales Force: Performance MeasuresPerformance Measures
Contribution to ProfitContribution to Profit
Calls per OrderCalls per Order
Sales or Profits per CallSales or Profits per Call
Call Percentage Achieving GoalsCall Percentage Achieving Goals
Sales VolumeSales Volume
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73Chapter 12 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Impact of Technology The Impact of Technology on Personal Sellingon Personal Selling
Laptop computer linkLaptop computer link
Cell phonesCell phones
PagersPagers
Personal data assistantsPersonal data assistants
E-MailE-Mail
InternetInternet
Sales ForceSales ForceAutomationAutomationSales ForceSales ForceAutomationAutomation
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