Marketing Management

26/10/07

CBS PGPMI - Class 11

Sivapriya Krishnan

Direct marketing, Personal selling and Personal communication

• Direct marketing is the use of consumer – direct channels to reach and deliver goods

• These channels include direct mail, catalogs, kiosks, interactive channel, websites and mobile devices

How has direct marketing grown?

• Increasing number of market niches

• Shortage of retail sales help, traffic congestion, parking issues etc have helped the growth of direct marketing

• Slow moving items are directly marketed by chain stores

How has direct marketing grown?

• Growth of the internet and, email, mobile phones and fax has made product search and sampling easy

What are benefits of direct marketing?

• Shopping can be hassle free

• Sellers benefit, without much add on costs

• Personalised and continuous relationship can be built with customers

• Permits testing of alternative media and messages in search of the most cost effective approach

What are benefits of direct marketing?

• Helps reach target audience in a focussed manner

• Measuring consumer response is easier

• Avoids the use of many middlemen

Each of the elements of direct marketing:

• Direct Mail

• Catalog Marketing

• Telemarketing

• Other forms like kiosks, TV

• Interactive marketing

• Online promos, ads

Each of the elements of direct marketing:

Direct Mail

• Involves sending an offer, announcement, reminder, or any other item to a person

Each of the elements of direct marketing:Direct Mail• Passes a number of stages

– Carpet bombing– Database marketing– Interactive marketing– Personalised marketing– Lifetime value marketing

• Read pgs 507 &8 of ch 19

Catalog Marketing

• Catalogs are sent in the form of booklets, videos, cds etc

• Success of catalog business depends on the company’s ability to manage its customer lists carefully

• Catalogs can be put online so that there is a global reach

Telemarketing

• Is the use of telephone and call centres to attract prospects, sell to existing customers and provide service by taking orders and answering questions

Other sources

TV – Tele shopping, Infomercials,

Kiosks – for booking tickets, buying cosmetics, information etc

Sales

• Buyer Seller - two people interaction

• Linked by communication

• The main object is a product or service that is being sold for a value or price

Personal Selling

• Sales management, personal selling and salesmanship are related

• Sales management directs the personal selling effort which in turn is implemented through salesmanship

Personal Selling

• Personal selling is broader than salesmanship

• Salesmanship is one aspect of personal selling ; one of the skills of selling

Personal Selling

• Personal selling is the art of persuading the customer to buy products or services by understanding the requirements of the customers and offering the right benefit proposition

• Emphasis is on consultative selling, creating long term beneficial sales relationships.

Personal Selling

• Objectives of personal selling– Building Product Awareness – Creating Interest – Providing Information – Stimulating Demand – to make a

purchase– Reinforcing the Brand – Most personal

selling is intended to build long-term relationships with customers

Changing role of sales representatives

• Sales man has shaped from being a fast talker to a consultant

Setting personal selling objectives

• Educate customers on product lines

• Provide technical advice and assistance to buyers

• Assist middleman sales personnel

• Advice and assist middle men on possible problems

• Collect and report market information to company management

Process of personal selling

• Prospecting

• Pre approach

• Approach

• Making the presentation

• Meeting resistance

• Closing sales

• Follow up

Process of personal selling

• Prospecting– Formulating definitions– Search out potential accounts– Qualifying prospects and determining

probable requirements– Relating company products to each

prospect

Process of personal selling• Pre Approach

– gather info about the prospect– understand the prospect's current needs, – current use of brands and feelings about all

available brands, – as well as identify key decision makers, review

account histories (if any), assess product needs, – plan/create a sales presentation to address the

identified and likely concerns of the prospect, and set call objectives.

Process of personal selling• Approach

– This is the point of the selling process where the sales professional meets and greets the prospect,

– provides an introduction, establishes rapport that sets the foundation of the relationship,

– and asks open-ended questions to learn more about the prospect and his or her needs.

Process of personal selling• Presentation

– the sales professional tells that product "story" in a way that speaks directly to the identified needs and wants of the prospect.

– Audio visual presentation– Present brochures / booklets– Demonstrations

• Strive to understand the prospect’s needs and present the facts of the case

Process of personal selling• Presentation

• salespeople must understand the concepts of features, potential benefits, and confirmed benefits

• translate feature into confirmed benefit

Process of personal selling• Presentation• A feature is a factual statement about a

characteristic of the product• A potential benefit describes how the

product or service may meet a customer need that is assumed to be important by the salesperson.

• When a customer acknowledges the importance of a benefit to his or her buying situation, it is a confirmed benefit.

Process of personal selling• Meeting sales resistance

– Obstacles to sales– Sales objections– Seek out objections and address them.

Anticipate and counter them before the prospect can raise them.Try to avoid bringing up objections that the prospect would not have raised.Price objection is the most commonNeed to provide customers with reasons for the $s, build up the value before price is mentionedMust be convinced of price in own mind before you can sell to customer.Get budget info. on buyer before you try to sell, and must know what they want, must sell service on top of product augmented product--to create value!!Must know value of product, provide warranties etc.!!

Process of personal selling

Closing sales• Attempts to get the order without

actually asking for it• Checks out preferences • Actually finalise the order

Process of personal selling

Follow up• salesperson to follow up with the prospect to make sure

the product was received in the proper condition, at the right time,

• installed properly, proper training delivered, and that the entire process was acceptable to the customer

• this is a critical step in creating customer satisfaction and building long-term relationships with customers.

• diligent follow up can also lead to uncovering new needs, additional purchases, and also referrals and testimonials which can be used as sales tools.

Sales Management

Negotiation : what is it?

Sales Management

Negotiation :– Process of resolving conflict to

arrive at a mutually acceptable level

Sales Management

Selling and Negotiating : the Difference

Selling is the proposition

Negotiating is the post proposition

Sales Management

Negotiation : Key words

Preparation – pre negotiation stage

Signals – Qualifications on a statement to convey a message

Offer- Proposition to open the moves of negotiation

Bargaining – Process of exchange