Transcript Solomon_6e_PPT_Student_14.ppt

Chapter 14
Personal Selling,
Sales Management, and
Direct Marketing
Chapter Objectives
 Understand the important role of personal
selling and how it fits into the promotion mix
 Explain how technology enhances the
personal selling effort
 Identify the different types of sales jobs
 Describe two approaches to personal selling
 List the steps in the creative selling process
 Explain the role of sales management
 Understand the elements of
direct marketing
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Real People, Real Choices:
Decision Time at Woodtronics
 Which strategy should Jeffrey pursue?
– Option 1: Push the original solution, even
though it is not the best thing for the client
– Option 2: Convince the client of Evolution’s
price and functionality superiority
– Option 3: Attempt to raise the architect’s
comfort level with Evolution and hope he will
recommend it to the client
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Personal Selling
 Personal selling:
Occurs when a company representative
interacts directly with a prospect or customer
to communicate about a good or service
– “Personal touch” helps develop relationships
– Salespeople are the eyes and ears of the firm
– 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 a firm uses a push strategy
– In business-to-business contexts
– With inexperienced consumers who need
hands-on assistance
– For products bought infrequently
– When goods/services are complex or costly
 Cost per contact is very high
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Technology and Personal Selling
 Numerous technologies help enhance
the selling effort:
– Customer relationship management (CRM)
software and partner relationship
management (PRM)
– Teleconferencing, videoconferencing, and
improved corporate Web sites
– Voice-over Internet protocol
– Assorted wireless technologies
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Types of Sales Jobs
 Sales positions vary considerably:
– Order taker
– Technical specialist
– Missionary salesperson (stimulate clients to
buy)
– New-business salesperson and order getter
– Team selling and cross-functional teams
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Approaches to Personal Selling
 Transactional selling:
A form of personal selling that focuses
on making an immediate sale with little
or no concern for developing long-term
customer relationships
– Associated with high-pressure, hard sell
tactics
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Approaches to Personal Selling
 Relationship selling
Process of building long-term
customers by developing mutually
satisfying, win-win relationships with
customers
– Builds customer loyalty and satisfaction
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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
 Step 2: The preapproach
Compiling background information
about prospective customers and
planning the sales interview
– Purchase history, current needs, customer’s
interests
– Information is gathered from informal
sources, CRM system, customers’ Web sites,
and/or business publications
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The Creative Selling Process
 Step 3: The approach
Contacting the prospect
– Learning even more about the prospect’s
needs, creating a good impression, and
building rapport
– “You never get a second chance to make a
good first impression”
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The Creative Selling Process
 Step 4: The sales presentation
Laying out the benefits and added
value of a firm’s product/service and
its advantages over the competition
– Invite customer involvement in conversation
by encouraging questions and feedback
– Listening skills are critical for salespeople
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The Creative Selling Process
 Step 5: Handling objections
Anticipating why a prospect is
reluctant to make a commitment and
responding with additional information
or persuasive arguments
– Welcome objections
– Objections must be successfully dealt with to
move prospect to decision stage
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The Creative Selling Process
 Step 6: Closing the sale
Gaining the customer’s commitment in
the decision stage using a variety of
approaches:
– Last-objection close
– Assumptive or minor-points close
– Standing-room-only or buy-now close
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The Creative Selling Process
 Step 7: The follow-up
Arranging for delivery, payment, and
purchase terms
– Making sure customer received delivery and
is satisfied
– Bridging to next purchase
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Sales Management
 Sales management
Process of planning, implementing,
and controlling the personal selling
function of an organization
– Setting sales force objectives
– Creating a sales force strategy
– Recruiting, training, rewarding the sales force
– Evaluating the sales force
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Sales Management Process
 Setting sales force objectives
– Objectives state what the sales force is
expected to accomplish and by when
– May be stated in terms of customer
satisfaction, loyalty, retention/turnover, newcustomer development, new-product
suggestions, training, reporting on
competitive activity, community involvement
– Individual objectives may be performance or
behavior based
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Sales Management Process
 Creating a sales force strategy
Establishing structure and size of a
firm’s sales force
– Setting sales territories is a major
responsibility; several forms exist
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Geographic sales force structure
Product-class sales territories
Industry specialization
Key/major accounts
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Sales Management Process
 Recruiting the right people
– Good listening and follow-up skills
– Ability to adapt style from situation to situation
– Tenacity
– High level of personal organization
 Sales training:
– Teaches salespeople about firm, its products,
how to develop skills, knowledge, and
attitudes to succeed
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Sales Management Process
 Rewarding sales people
– Paying salespeople well to motivate them
• Straight commission plan
• Commission-with-draw plan
• Straight salary plan
– Running sales contests for short-term sales
boost
– Call reports aid supervisors
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Sales Management Process
 Evaluating the sales force
– Is the sales force meeting its objectives?
– What are possible causes of failure?
– Individual performance is measured against
quotas or other quantitative factors
– Qualitative factors may also be used
– Expense accounts for entertainment and
travel may also be monitored
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Direct Marketing
 Direct marketing
Any direct communication to a
consumer or business recipient
designed to generate a response in the
form of an order, a request for further
information, and/or a visit to a store or
other place of business for purchase of
a product
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Direct Marketing
 Mail order
– Catalogs:
Collection of products offered for sale and
described in book form, usually consisting of
product descriptions and photos
– Direct mail:
A brochure/pamphlet offering a specific
good/service at one point in time
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Direct Marketing
 Telemarketing:
Direct marketing conducted over the
telephone
– More profitable for business than consumer
markets
– In 2003, FTC established National Do Not
Call registry
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Direct Marketing
 Direct-response advertising:
Allows consumer to respond by
immediately contacting the provider
with questions or an order
– Direct-response TV (DRTV):
Short commercials, 30-minute-plus
infomercials, and home shopping networks
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Direct Marketing
 M-Commerce:
Promotional and other e-commerce
activities transmitted over mobile
phones/devices
– Short-messaging system marketing (SMS)
– Spim: instant-messaging version of spam
– Adware: software that tracks Web
habits/interests, presenting pop-up ads, and
resetting home page
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Real People, Real Choices:
Decision Made at Woodtronics
 Jeffrey chose option 2
– Jeffrey felt that his job as a sales
representative was to uncover customer
needs and provide the correct solutions
– Implementation: Showed client a mock-up of
the Evolution platform; told architect only
when client was satisfied with product. Client
purchased the product
– Measuring success: Sales
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Keeping It Real:
Fast-Forward to
Next Class Decision Time at Darden
 Meet Jim Lawrence, Sr. VP Supply
Management & Purchasing
 Darden Restaurants is the world’s
largest casual dining operator
 The decision to be made:
What steps should be taken to ensure
that Darden restaurants have access to
the volume and quality of food
needed?
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