Personal Selling , Sales Management, & Direct Marketing

Chapter Objectives

• role of personal selling

 within the promotion mix

• steps in personal selling process • role of the sales manager • direct marketing

2

SELLING

Personal Selling • when a company representative • interacts directly • with a (

prospective

) customer • to communicate • about a good or service 4

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.

5

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. 6

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

7

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 8

Approaches to Personal Selling •

Transactional selling

:

Putting on the hard sell

 High-pressure process  focuses on immediate sales  no concern for developing long-term customer relationship 9

Approaches to Personal Selling (cont’d)

• Relationship selling

 Process of building

long-term customers

by developing mutually satisfying,

win win relationships

with customers 10

Creative selling Process

• • Makes positive transactions happen

Series

of activities 11

Figure 14.1: Steps in Creative Selling Process 12

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 13

The Creative Selling Process (cont’d)

• Step 2: Pre-approach



Compiling prospective customers’

•

background information

 planning the sales interview 14

The Creative Selling Process (cont’d)

• Step 2: Pre-approach



Purchase history,



current needs,



customer’s interests

 From • informal sources, • CRM system, • customers’ Web sites, • and/or business publications 15

The Creative Selling Process (cont’d)

• Step 3: Approach



Contacting the prospect



Learning prospect’s needs,



create a good impression,



build rapport • “You never get a second chance to make a good first impression.”

16

The Creative Selling Process (cont’d)

•

Step 4: Sales presentation

 benefits & added value • of product/firm 

advantages over competition

 Inviting customer involvement • in conversation 17

Step 5:

Handling

Objections

• Anticipating why  prospect is reluctant to make a commitment • Welcoming objections • Handling objections  successfully  to move prospect to decision stage 18

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

19

Step 7: Follow-Up

•

Arranging for delivery,



Ensuring sure customer received delivery



and is satisfied

•

Payment



Credit, factors, etc.

•

purchase terms • Bridging to next purchase

20

Figure 14.2: The Sales Force Management Process 21

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

22

Creating a Sales Force Strategy • •

Establishing structure and size



of a firm’s sales force Sales territory

: a set group of customers  Geographic sales force structure  Product-class sales territories  Industry specialization  key/major accounts 23

Recruiting

, Training, & Rewarding • Recruiting the right people  Good listening and follow-up skills 

adaptive style

• from situation to situation  Tenacity  High level of personal organization 24

Recruiting,

Training

, & Rewarding • • • • • •

Sales training

:

teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed

25

Recruiting, Training, and

Rewarding

• Paying salespeople well to motivate them

 Straight commission plan  Commission-with-draw plan  Straight salary plan 26

Recruiting, Training, and

Rewarding

• Running sales contests

 for short-term sales boost

• Call reports:

 which customers were called on and  how call went 27

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 28

DIRECT MARKETING

Direct Marketing

• Any direct communication

 to a consumer or business recipient

• designed to generate a response

DIRECT MARKETING ASSOCIATION

30

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 MARKETING ASSOCIATION

31

Direct Marketing: MAIL ORDER • Catalogs: 

collection of products

•

offered for sale



described in book form,



product descriptions and photos

32

Direct Marketing: MAIL ORDER

• Direct mail:

 brochure/pamphlet  offering a specific good/service  at one point in time 33

Direct Marketing:

telemarketing

• conducted over the telephone  More profitable for

business

• than consumer markets  In 2003, FTC established: •

National Do Not Call registry

FEDERAL DO NOT CALL REGISTRY

34

Direct Marketing (cont’d)

• Direct-response advertising

: • allows consumer to

respond

• by

contacting the provider

• with

questions

or an

order

35

Direct Marketing (cont’d) •

Direct-response TV (DRTV):

•

short commercials,

• •

30-minute+ infomercials , home shopping networks

–

HSN

–

QVC

–

Jewelry television

–

ShopNBC

–

Gemtv

36

Direct Marketing (cont’d)

• M-Commerce:

• promotional & other e-commerce activities • transmitted over mobile phones/devices 37

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 38

THE END 39

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.

40

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?

41

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?

42

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?

43