Transcript Marketing March 12th.ppt

Personal Selling and
Direct Marketing
Chapter 17
Objectives
Understand the role of a
company’s salespeople in
creating value for customers
and building customers
relationships.
Know the six major sales force
management steps.
17- 1
Objectives
Understand the personal selling
process, and how to distinguish
between transaction-oriented
marketing and relationship marketing.
Learn about direct marketing and its
benefits to customers and companies.
Know the major forms of direct
marketing.
17- 2
c
Lear
Record-breaking
earnings and sales
growth
Outstanding sales
force; rated as one
of America’s best.
Sales force
focuses on
customer success
Sales force is
organized into
separate divisions
dedicated to specific
customers
Division platform
teams work with
customers and are
linked to customer
operations
17- 3
Definition
Salesperson
 An individual acting
for a company by
performing one or
more of the following
activities: prospecting,
communicating,
servicing, and
information gathering.
17- 4
Personal Selling
Salespeople Have Many Names
Agents
Sales
consultants
Sales
Representatives
Account
Executives
Sales Engineers
District Managers
Marketing
Representatives
Account
Development
Representatives
17- 5
Personal Selling
The Role of the Sales Force
 Two-way personal communication
 More effective than advertising in
complex selling situations
 The sales force plays a major role in
most companies
 The sales force works to produce
customer satisfaction and company
profit
17- 6
Definition
Sales Force Management
 The analysis, planning,
implementation, and control of sales
force activities. It includes setting and
designing sales force strategy; and
recruiting, selecting, training,
supervising, compensating, and
evaluating the firm’s salespeople.
17- 7
Figure 17-1:
Major Steps in
Sales Force Management
17- 8
Managing the Sales Force
Sales Force Strategy and Structure
 Sales Force Structure




Territorial sales force
structure
Product sales force
structure
Customer sales force
structure
Complex sales force
structure
17- 9
Managing the Sales Force
Sales Force
Strategy and
Structure
 Sales Force Size

Many companies
use the workload
approach to set
sales force size
17- 10
Managing the Sales Force
Sales Force Strategy and Structure
 Outside and inside sales forces

Team selling
17- 11
Managing the Sales Force
Recruiting and
Selecting
Salespeople
 Careful recruiting can:



Increase overall
sales force
performance
Reduce turnover
Reduce recruiting
and training costs
17- 12
Managing the Sales Force
Traits of Successful Salespeople
Enthusiasm
Patience
Initiative
Self-Confidence
Job Commitment
Customer
Orientation
Independent
SelfMotivated
Excellent
Listeners
Friendly
Persistent
Attentive
Honest
Internally
Motivated
Relationship
Oriented
Disciplined
Hardworking
Team Players
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Managing the Sales Force
Recruiting & Selecting Salespeople
 Recruiting involves:
Soliciting applications
 Screening candidates

• Interviews
• Sales aptitude, personality, analytical
and/or organizational tests
• References, work history, etc.
17- 14
Managing the Sales Force
Training Salespeople
 Average training period is
4 months
 Training is expensive, but
yields strong returns
 Training programs have
many goals
 Many companies are
adding Web-based sales
training programs
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U.S. companies spend more that $7 billion
annually on training salespeople and devote
more than 22 hours per year to the average
salesperson.
17- 16
Managing the Sales Force
Compensating Salespeople
 Compensation elements: salary,
bonuses, commissions, expenses, and
fringe benefits
 Basic compensation plans:
Straight salary
 Straight commission
 Salary plus bonus
 Salary plus commission

17- 17
Managing the Sales Force
Compensating
Salespeople
 Compensation plans
should direct the sales
force toward activities that
are consistent with overall
marketing objectives.



Gain market share
Solidify market
leadership
Maximize profitability
17- 18
Managing the Sales Force
Supervising Salespeople
 Effective supervisors provide direction to the
sales force



Annual call plans and time-and-duty analysis
can help provide direction
Sales force automation systems assist in
creating more efficient sales force operations
The Internet is the
fastest-growing sales
technology tool
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Figure 17-2:
How Salespeople Spend
Their Time
17- 20
Managing the Sales Force
Supervising Salespeople
 Effective supervisors
also motivate the
sales force



Organizational climate
Sales quotas
Positive incentives
• Sales meetings,
sales contests,
honors, etc.
17- 21
American Express
targets companies
in need of sales
force incentives.
The Persona
Select cards are
prepaid reward
cards that allow
recipients to buy
whatever they
most want.
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Managing the Sales Force
Evaluating
Salespeople
 Sales reports
 Call reports
 Expense
reports
17- 23
Figure 17-3:
The Personal Selling
Process
17- 24
The Personal Selling
Process
Prospecting and
Qualifying
 Prospecting:
identifying
potential
customers
 Qualifying:
Screening leads
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Discussion Question
“Cold calling” by salespeople – visiting
offices without an appointment – was
mentioned in the text as one method of
identifying potential prospects.
Discuss the pros and cons of cold
calling. Is it more appropriate for certain
industries or product types than others?
17- 26
BusinessNow
MarketSoft Video Clip
Trade shows are
often an excellent
source of sales
leads.
Click the picture above to play video
17- 27
The Personal Selling
Process
Preapproach
 Learning as much
as possible about
a prospective
customer prior to
making a sales call
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The Personal Selling
Process
Approach
 Stage of the
selling process
where the
salesperson
meets the
customer for
the first time
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The Personal Selling
Process
Presentation & Demonstration
 Benefits of the
product are
presented or
demonstrated
 Understanding
prospect
needs is key
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Virtual reality is being used by Johnson &
Johnson’s sales representatives to help
prospects learn about STERRAD.
17- 31
The Personal Selling
Process
Handling
Objections
Closing
 Asking for the
order
Follow-up
 Helps ensure
customer
satisfaction
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Direct Marketing
Direct Marketing
Benefits: Buyers




Convenient
Easy to use
Private
Access to a
wealth of
information
 Immediate
 Interactive
17- 33
Direct Marketing
Direct Marketing Benefits: Sellers
 Powerful tool for building relationships
 Allows for targeting of small groups or
individuals with customized offers in a
personalized fashion
 Offers access to buyers that couldn’t
be reached via other channels
 Low-cost, effective alternative for
reaching specific markets
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Dell’s
success
is due to
their
direct
selling
model
17- 35
Direct Marketing
Customer Databases & Direct
Marketing
 Databases include customer profile,
purchase history, and other detailed
information
 Databases can be used to identify
prospects, profile customers, and
select customers to receive offers, and
to build relationships
17- 36
Direct Marketing
Customer
Databases &
Direct Marketing
 Database
marketing requires
substantial
investment in
hardware,
software, and
personnel
17- 37
Discussion Question
Suppose that you work for
a casino that has recently
decided to develop a
database in order to better
target promotional offers to
its clientele.
What types of information
would you collect or track in
this database? List as many
database fields as you feel
are appropriate.
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Figure 17-4:
Forms of Direct Marketing
17- 39
Direct Marketing
Telephone Marketing
 Inbound toll-free 800
numbers are used to
receive orders from
print or TV ads
 New legislation and
technological
advances threaten
the future of
telemarketing
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Direct Marketing
Direct-Mail
Marketing
 New trends
include fax, mail,
e-mail, and voice
mail
Catalog
Marketing
 Many
cataloguers
have migrated to
the web
17- 41
Direct Marketing
Direct-Response
Television
Marketing
 Direct-response
advertising
 Infomercials
 Home shopping
channels
Kiosk Marketing
17- 42
Figure 17-5:
An Integrated
Direct-Marketing Campaign
17- 43
Direct Marketing
Integrated Direct Marketing
Public Policy and Ethical Issues
 Irritation, Unfairness, Deception,
and Fraud
 Invasion of Privacy
17- 44
The DMA recently developed its “Privacy
Promise to American Consumers”
DMA Privacy
Policy
17- 45
Creating
Competitive
Advantage
Chapter 18
Objectives
Learn how to understand competitors as
well as customers via competitor
analysis.
Learn the fundamentals of competitive
marketing strategies based on creating
value for customers.
Realize the need for balancing customer
and competitor organizations in order to
become a truly market-centered
organization.
17- 47
c
Intel
Has dominated the
chip industry
Success is directly
related to Intel’s
competitive
strategy
Strategy focuses
on superior value
and product
leadership
Heavy focus on
product and
advertising innovation
and R&D investments
Changing market
needs have
challenged Intel to
adapt
Intel is capitalizing on
the Internet now
17- 48
Definition
Competitive Advantage
 An advantage
over competitors
gained by offering
consumers greater
value than
competitors offer.
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Definition
Competitive Analysis
 The process of identifying key
competitors; assessing their
objectives, strategies, strengths
and weaknesses, and reaction
patterns; and selecting which
competitors to attack or avoid.
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Figure 18-1:
Steps in Analyzing
Competitors
17- 51
Competitor Analysis
Steps in the
Process:
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Firms face a wide
range of competition
Be careful to avoid
“competitor myopia”
Methods of
identifying
competitors:
 Industry point-of-view
 Market point-of-view
 Competitor
can help
maps
17- 52
230-year-old
Encyclopedia
Britannica
viewed itself as
competing with
your publishers
of printed
encyclopedias.
Big mistake! Its
real competitors
were software
encyclopedias
and the Internet.
17- 53
Figure 18-2:
Competitor Map
17- 54
Discussion Question
Create a competitor
map for one of the
following:
•
•
•
•
•
WalMart
McDonald’s
Nike
Starbucks
Google
17- 55
Competitor Analysis
Steps in the
Process:
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Determining
competitors’ objectives
Identifying competitors’
strategies
 Strategic groups
Assessing competitors’
strengths and
weaknesses
 Benchmarking
Estimating competitors’
reactions
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Benchmarking
In-Depth
Types of
Benchmarking:
 Process – searching
for the best way to
perform a process
 Internal – enables
users to compare
similar activities
within their own
organization.
Types of Benchmarking:
 Competitive – organization
is compared to direct
competitors or those who
are selling to the same
customer base.
 Functional or generic –
enables users to compare
themselves to organizations
that are recognized as the
best, whether they are in
the same industry or not.17- 57
Benchmarking
In-Depth
Sources of
Information:
 Competitive
intelligence
 Relevant industry
publications
 Electronic
databases
 Internal company
experts
Sources of
Information:
 Industry observers
such as professors
or consultants
 Industry
participants, such
as suppliers and
customers
 Competition itself
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Competitor Analysis
Steps in the
Process:
Strong or weak
competitors
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Close or distant
competitors
 Customer value analysis
 Most companies compete
against close competitors
“Good” or “Bad”
competitors
 The existence of
competitors offers several
strategic benefits
17- 59
Competitor Analysis
Designing Competitive Intelligence
Systems
 A Well-Designed CI System:





Identifies types and sources of competitive
information
Continuously collects information
Checks reliability and validity
of information
Interprets and organizes
information
Distributes information to
decision makers and
responds to queries
17- 60
Competitive Strategies
Approaches to Marketing Strategy
 No single strategy is best for all
companies
 Marketing strategy and practice often
passes through three stages:
Entrepreneurial marketing
 Formulated marketing
 Intrepreneurial marketing

17- 61
Competitive Strategies
Basic Winning Competitive
Strategies: Porter
 Overall cost leadership
 Lowest production and
distribution costs
 Differentiation
 Creating a highly
differentiated product line
and marketing program
 Focus
 Effort is focused on serving
a few market segments
17- 62
Hohner has
successfully
implemented a
focus strategy to
capture an 85%
share of the
harmonica
market.
17- 63
Competitive Strategies
Basic Competitive Strategies:
Value Disciplines
 Operational excellence

Superior value via price and convenience
 Customer intimacy

Superior value by means of building strong
relationships with buyers and satisfying
needs
 Product leadership

Superior value via product innovation
17- 64
Discussion Question
Firms that follow a
customer intimacy
strategy are willing to
do almost anything for
their customers.
British Airways practices customer intimacy
with select frequent flyers
Does such a strategy
make sense for local
businesses, or only for
national / global
corporations?
17- 65
Figure 18-3:
Hypothetical
Market Structure
17- 66
Competitive Strategy
Competitive
Positions
Market Leader
Market
Challenger
Market
Follower
Market Nicher
Expanding the total
demand
 Finding new users
 Discovering and
promoting new product
uses
 Encouraging greater
product usage
Protecting market share
 Many considerations
 Continuous innovation
Expanding market share
 Profitability rises with
market share
17- 67
Competitive Strategy
WD-40 has a knack
for developing new
uses for its product.
What other brands
have adopted a
similar strategy?
WD40
17- 68
Competitive Strategy
Competitive
Positions
Market Leader
Market
Challenger
Market
Follower
Market Nicher
Option 1: challenge the
market leader
 High-risk but high-gain
 Sustainable competitive
advantage over the leader
is key to success
Option 2: challenge firms
of the same size, smaller
size or challenge
regional or local firms
Full frontal vs. indirect
attacks
17- 69
Pepsi is an
example of
market
challenger
that has
chosen to use
a full frontal
attack
17- 70
Competitive Strategy
Competitive
Positions
Market Leader
Market
Challenger
Market
Follower
Market Nicher
Follow the market
leader
 Focus is on improving
profit instead of
market share
 Many advantages:
 Learn
from the
market leader’s
experience
 Copy or improve on
the leader’s offerings
 Strong profitability
17- 71
Dial Corporation
successfully
uses a market
follower strategy
17- 72
Competitive Strategy
Competitive
Positions
Market Leader
Market
Challenger
Market
Follower
Market Nicher
Serving market
niches means
targeting
subsegments
Good strategy for
small firms with
limited resources
Offers high margins
Specialization is key
 By market, customer,
product, or marketing
mix lines
17- 73
FedEx and
UPS are two
competitors
in the
package
delivery
business.
What
competitive
strategy
seems to
describe
each
company?
17- 74
Balancing Customer and
Competitor Orientations
Companies can become so
competitor centered that they
lose their customer focus.
Types of companies:
 Competitor-centered companies
 Customer-centered companies
 Market-centered companies
17- 75
Figure 18-4:
Evolving Company
Orientations
17- 76
The Global
Marketplace
Chapter 19
Objectives
Understand how the
international trade system,
economic, political-legal, and
cultural environments affect a
company’s international
marketing decisions.
Learn three key approaches to
entering international markets.
17- 78
Objectives
Understand how companies
adapt their marketing mixes
for international markets.
Learn how to identify the three
major forms of international
marketing organizations.
17- 79
c
Coca-Cola
1900: Coca-Cola
was available in
foreign countries
Early branding
efforts placed logo
prominently
abroad
1971: “I’d like to
buy the world a
Coke” TV ad
Coca-cola has
recently entered India,
China and Indonesia
Consistent
positioning and taste
worldwide
Ads and promotions
are adapted to local
markets
Sprite: a global
success
17- 80
Definition
Global Firm
 A firm that, by
operating in more than
one country, gains
R&D, production,
marketing, and
financial advantages in
its costs and reputation
that are not available to
purely domestic
competitors.
17- 81
Global Marketing in
the 21st Century
International trade is booming
Many U.S. firms are successful
international marketers
Global competition is intensifying
Global companies face several
problems
Companies face six major decisions
in international marketing
17- 82
Figure 19-1:
Major Decisions in
International Marketing
17- 83
Looking at the Global
Marketing Environment
The International Trade System
 Tariffs, quotas, embargos, exchange
controls, nontariff trade barriers
 World Trade Organization and GATT
 Regional free trade zones
European Union
 North American Free Trade Agreement
 Other free trade areas

17- 84
17- 85
Mercosur
17- 86
Looking at the Global
Marketing Environment
Economic Environment
 Industrial structure
Subsistence economies
 Raw material exporting
economies
 Industrializing
economies
 Industrial economies

 Income distribution
17- 87
17- 88
Looking at the Global
Marketing Environment
Political-Legal Environment
 Attitudes toward
international buying
 Government bureaucracy
 Political stability
 Monetary regulations

Countertrade
• Barter
• Compensation
• Counterpurchase
17- 89
Looking at the Global
Marketing Environment
Cultural Environment
 Impact of Culture on
Marketing Strategy

Cultural traditions,
preferences, behavior
 Impact of Marketing
Strategy on Cultures

Globalization vs.
Americanization
17- 90
Overlooking
cultural
differences can
result in
embarrassing
mistakes. Nike
found that this
stylized “Air”
logo resembled
“Allah” in
Arabic script
17- 91
Deciding Whether to
Go International
Not all companies
need an international
presence
Globalization may be
triggered by several
factors
Risk and the ability to
operate globally must
be carefully assessed
17- 92
Deciding Which
Markets to Enter
Define international
marketing polices and
objectives, and sales
volume goals
Decide how many
countries to target
Decide on the types of
countries to enter
17- 93
17- 94
Deciding Which
Markets to Enter
Screen and rank each
of the possible
international markets
using several criteria
 Market size, market
growth, cost of doing
business, competitive
advantage, risk level
17- 95
Discussion Question
Consider beauty products
such as anti-aging creams,
cosmetics, and hair dyes.
What International markets
would offer an attractive
target. What particular
markets should your
company avoid?
17- 96
Figure 19-2:
Market Entry
Strategies
17- 97
Tokyo
Disneyland is
owned and
operated by a
Japanese
development
company under
license from
Walt Disney
Company
17- 98
Deciding How
to Enter the Market
Exporting
 Direct vs. indirect
Joint Venturing
 Licensing, contract
manufacturing,
management
contracting, joint
ownership
Direct Investment
 Assembly facilities,
manufacturing facilities
17- 99
Figure 19-3:
Five International Product
and Promotion Strategies
17- 100
Deciding on the Global
Marketing Program
Standardized Marketing
Mix
 Same basic product,
advertising, distribution,
and other elements of
the marketing mix are
used in all international
markets.
17- 101
Deciding on the Global
Marketing Program
Adapted Marketing Mix
 The marketing
mix elements
are adjusted
for each
international
target market.
17- 102
Deciding on the Global
Marketing Program
Global Market Product Strategies
 Straight product expansion

Marketing the product with no changes
 Product adaptation

Altering the product to meet local
conditions or the wants of the foreign
market
 Product invention

Creating new products or services for
foreign markets
17- 103
Deciding on the Global
Marketing Program
Global Promotion Strategies
 Standardized global communication

Advertising themes are standardized
from country to country with slight
modifications
 Communication adaptation

Advertising messages are fully
adapted to local markets
17- 104
Guy Laroche standardizes global advertising
but adapts to meet cultural differences. The
Arabian version is less sensual.
European
Arabian
17- 105
Deciding on the Global
Marketing Program
Global Pricing
Strategies
 Companies face
many problems




Price escalation
Pricing to foreign
subsidiaries
Recent economic
and technological
forces
The Internet
17- 106
Discussion Question
What adjustments
might need to be made
to the pricing,
promotion, or product
itself if Cracker Jack
were marketed in
Japan, England, and
Egypt?
17- 107
Figure 19-4:
Whole-Channel Concept for
International Marketing
17- 108
Deciding on the Global
Marketing Program
Global Distribution Channels
 Whole-channel view




Seller’s
headquarters
organization
Channels between
nations
Channels within
nations
Numbers & types
of intermediaries
17- 109
Deciding on the Global
Marketing Organization
Managing International
Marketing Activities
 Step 1: Organize export
department
 Step 2: Create an
international division
 Step 3: Become a global
organization
17- 110