Personal Selling , Sales Management, & Direct Marketing

1. Personal Selling, Sales Management, & Direct Marketing

2. Chapter Objectives • role of personal selling • within the promotion mix • steps in personal selling process • role of the sales manager • direct marketing

3. SELLING

4. Personal Selling • when a company representative • interacts directly • with a (prospective) customer • to communicate • about a good or service

5. 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.

6. 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.

7. SALESFORCE.COM 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

8. Types of Sales Jobs • Order taker • Technical specialist • Missionary salesperson • (stimulate clients to buy) • New-business salesperson • Cold calls, breaking in new territory • order getter • Team selling & cross-functional team

9. 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

10. Approaches to Personal Selling (cont’d) • Relationship selling • Process of building long-term customers by developing mutually satisfying, win-win relationships with customers

11. Creative selling Process • Makes positive transactions happen • Series of activities

12. Figure 14.1: Steps in Creative Selling Process

13. 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

14. The Creative Selling Process (cont’d) • Step 2: Pre-approach • Compiling prospective customers’ • background information • planning the sales interview

15. 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

16. 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.”

17. The Creative Selling Process (cont’d) • Step 4:Sales presentation • benefits & added value • of product/firm • advantages over competition • Inviting customer involvement • in conversation

18. Step 5: Handling Objections • Anticipating why • prospect is reluctant to make a commitment • Welcoming objections • Handling objections • successfully • to move prospect to decision stage

19. 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

20. 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

21. Figure 14.2: The Sales Force Management Process

22. 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

23. 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

24. 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

25. Recruiting, Training, & Rewarding • Sales training: • teaches salespeople about firm, • its products, • how to develop skills, • knowledge, and • attitudes to succeed

26. Recruiting, Training, and Rewarding • Paying salespeople well to motivate them • Straight commission plan • Commission-with-draw plan • Straight salary plan

27. Recruiting, Training, and Rewarding • Running sales contests • for short-term sales boost • Call reports: • which customers were called on and • how call went

28. 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

29. DIRECT MARKETING

30. DIRECT MARKETING ASSOCIATION Direct Marketing • Any direct communication • to a consumer or business recipient • designed to generate a response

31. DIRECT MARKETING ASSOCIATION 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

32. Direct Marketing: MAIL ORDER • Catalogs: • collection of products • offered for sale • described in book form, • product descriptions and photos

33. Direct Marketing: MAIL ORDER • Direct mail: • brochure/pamphlet • offering a specific good/service • at one point in time

34. FEDERAL DO NOT CALL REGISTRY Direct Marketing: telemarketing • conducted over the telephone • More profitable for business • than consumer markets • In 2003, FTC established: • National Do Not Call registry

35. Direct Marketing (cont’d) • Direct-response advertising: • allows consumer to respond • by contacting the provider • with questions or an order

36. Direct Marketing (cont’d) • Direct-response TV (DRTV): • short commercials, • 30-minute+ infomercials, • home shopping networks • HSN • QVC • Jewelry television • ShopNBC • Gemtv

37. Direct Marketing (cont’d) • M-Commerce: • promotional & other e-commerce activities • transmitted over mobile phones/devices

38. 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

39. THE END

40. Marketing Plan Exercise • In developing her marketing plan, Esther Ferre at IBM must use marketing communication mix elements (1) in an integrated way that (2) best invests her promotional dollars. • --Should personal selling be a high priority in Esther’s marketing plan? Why or why not? • --Is there a role for direct marketing in her plan? If so, what is it?

41. Marketing in Action Case:You Make the Call • What is the decision facing Eli Lilly? • What factors are important in understanding this decision situation? • What are the alternatives? • What decision(s) do you recommend? • What are some ways to implement your recommendation?

42. Keeping It Real: Fast-Forward to Next Class, Decision Time at Darden Restaurants • Meet Jim Lawrence, Vice President, Supply Management & Purchasing. • Volatility in the supply chain threatened food supplies to restaurants. • The decision: A new model for supply chain management?

43. Real People, Real Choices • IBM (Esther Ferre) • IBM must prioritize investment of resources to achieve revenue and profit targets. • Option 1: reduce sales and support resources for a specific customer or business segment. • Option 2: maintain current level • of resources. • Option 3: evaluate lower-cost • ways to provide sales and • support resources.

44. IBM.COM Real People, Real Choices • IBM (Esther Ferre) • Esther chose option 3: evaluate lower-cost ways to provide sales and support resources. • Minimized impact to customer and improved cost structure of sales team. • Maintained customer satisfaction with lower cost. • Resulted in increased revenue over time.

45. Discussion • Professional selling has evolved from hard-sell to relationship selling. --Is hard-sell still used? If so, in what types of organizations? --Can hard-sell still succeed –is transactional selling still appropriate? --If so, when?

46. 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.

47. Individual Activity • What are the pros and cons of personal selling as a career choice for you? • --List them in two columns, and be as specific as you can in explaining each.

48. 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?

49. 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?

50. Discussion • What is a sales manager’s best approach for determining the appropriate rewards program? • What issues are important in developing the program?