basic13_ppt.ppt 208KB Sep 05 2010 10:45:38 PM

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Chapter Thirteen

Communicating Customer Value: Personal Selling

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Roadmap:

Previewing the Concepts

1. Discuss the role of a company’s

salespeople in creating value for customers and building customer relationships.

2. Identify and explain the six major sales force management steps.

3. Discuss the personal selling process,

distinguishing between transaction-oriented marketing and relationship marketing.

4. Define direct marketing and discuss its benefits to customers and companies.

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Background

 _{Nation’s largest reseller} of technology products and services to small and mid-size businesses.

 _{Since 2000, sales up} 48% to $5.7 billion and profits up 15% annually.  _{Highly devoted to}

customer with “Circle of

CDW – Relationship Building

Success

Case Study

Personal Selling’s Role

 _{“Clicks & people” strategy} combines personal selling with strong Web presence.  _{Salespeople build and}

manage relationships by being trusted advisors.  _{Training is extensive as}

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The Nature of Personal Selling

 _{Most salespeople are well-educated,}

well-trained professionals who work to build and maintain long-term customer relationships.

 _{The term salesperson covers a wide}

range of positions:

– Order taker: Department store clerk

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The Role of the Sales Force

 _{Personal selling is a paid, personal form}

of promotion.

– Involves two-way personal communication between salespeople and individual

customers.

 _Salespeople:

– Probe customers to learn about problems.

– Adjust marketing offers to fit special needs.

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The Role of the Sales Force

 _{Sales force serves as critical link}

between company and its customers. – They represent the company to the

customers.

– _{They represent the customers to the}

company.

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Sales Force Management

 _{The analysis, planning, implementation,} and control of sales force activities.

 _Includes:

– _{Designing sales force strategy & structure} – _{Recruiting and selecting salespeople}

– _{Training salespeople}

– _{Compensating salespeople} – _{Supervising salespeople}

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Sale Force Structure

 _Territorial:

– Salesperson assigned to exclusive area and sells full line of products.

 _Product:

– Sales force sells only certain product lines.

 _Customer:

– Sales force organized by customer or industry.

 _Complex:

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Outside & Inside Sales Forces

 _An_outside_{sales force travels to call on} customers in the field.

 _An_inside_{sales force conducts business} from their offices via telephone or visits from perspective buyers.

– _Includes:

• _{Technical support people} • _{Sales assistants}

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Team Selling

 _{Used to service large, complex accounts.}  _{Can find problems, solutions, and sales}

opportunities that no single person could.

 _{Can include experts from different areas of}

selling firm.

 _Pitfalls:

– Can confuse or overwhelm customers.

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Successful Salespeople

 _{Careful selection can greatly enhance}

overall sales force performance while minimizing costly turnover.

 _{Key talents of successful salespeople:}

– Intrinsic motivation.

– Disciplined work style.

– Ability to close a sale.

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Recruiting Salespeople

 _{Searching the}

Web

 _{Recommendations}

from current sales force

 _Employment

agencies

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Sales Force Training Goals

 _{Learn about different types of}

customers and their needs, buying motives, and buying habits.

 _{Learn how to make effective sales}

presentations.

 _{Learn about and identify with the}

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Compensating Salespeople

 _{Fixed amount:}

– Salary

 _{Variable amount:}

– Commissions or bonuses

 _Expenses:

– _{Repays for job-related expenditures}

 _{Fringe benefits:}

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Supervising Salespeople

 _{Goal of supervision is to encourage}

salespeople to “work smart.”

– Help them identify customers and set call norms.

– _{Specify time to be spent prospecting:} • Annual call plan

• _{Time-and-duty analysis}

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Motivating Salespeople

 _{Goal of motivating sales force is to}

encourage salespeople to “work hard.” – Organizational climate.

– Sales quotas.

– Positive incentives:

• _{Sales meetings} • _{Sales contests}

• Recognition and honors

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The Personal Selling Process

 _Prospecting:

– The salesperson identifies qualified potential customers (called prospects).

 _Preapproach:

– The salesperson learns as much as possible about a prospect before making a sales call.

 _Approach:

– The salesperson meets the customer for the first time.

 _{Presentation:}

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The Personal Selling Process

 _{Handling Objections:}

– The salesperson seeks out, clarifies, and overcomes customer objections to buying.

 _Closing:

– The salesperson asks the customer for an order.

 _Follow-up:

– The salesperson follows up after the sale to ensure customer satisfaction and repeat

business.

 _{The selling process is transaction oriented;}

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Direct Marketing

 _{Direct marketing consists of direct}

connections with carefully targeted

individual consumers to both obtain an immediate response and cultivate

lasting customer relationships.

– One-on-one communication in which offers are tailored to needs of narrowly defined segments.

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The New Direct-Marketing Model

 _{Some firms use direct marketing as a}

supplemental medium.

 _{For many companies, direct marketing}

constitutes a new and complete model for doing business.

 _{Some firms employ the direct model as}

their only approach.

 _{Some see this as the new marketing}

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Benefits of Direct Marketing

 _{Benefits to Buyers:}

– Convenient.

– Easy to use.

– Private.

– Ready access to products and information.

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Benefits of Direct Marketing

 _{Benefits to Sellers:}

– Powerful tool for building customer relationships. – Can target small groups or individuals.

– Can tailor offers to individual needs.

– Can be timed to reach prospects at just the right moment.

– _{Gives access to buyers they could not reach} through other channels.

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Customer Databases

 _{An organized collection of}

comprehensive data about individual customers or prospects, including

geographic, demographic,

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Direct Marketing Forms

 _{Telephone marketing}  _{Direct-mail marketing}  _{Catalog marketing}

 _{Direct-response TV marketing}  _{Kiosk marketing}

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Telemarketing

 _{Used in both consumer and B2B}

markets.

 _{Can be outbound or inbound calls.}

 _{Do-Not-Call legislation has impacted}

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Direct-Mail Marketing

 _{Involves sending an offer, reminder,}

announcement, or other item to a person at a particular address.

 _{Permits high target-market selectivity.}  _{An be personalized, and is flexible.}

 _{Higher CPM yields better prospects}

than mass media.

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Catalog Marketing

 _{With the Internet, more and more}

catalogs are going digital.

 _{Print catalogs still the primary medium.}  _{Expected sales in 2008 = $175 billion.}

 _{Web catalogs have specific advantages}

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Direct Response TV Marketing

 _{Direct-response advertising:}

– TV spots that are 60 or 120 seconds long.

 _{Infomercials:}

– A 30 minute or longer advertising program for a single product.

 _{Home shopping channels:}

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Kiosk Marketing

 _{Information and ordering machines}

generally found in stores, airports, and other locations.

– _{Example: In-store Kodak kiosks allow}

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Integrated Direct Marketing

 _{Involves carefully coordinated}

multiple-media, multiple-stage campaigns.

– Marketers try to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs.

– Example: Integrating a paid ad with

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Public Policy and Ethical

Issues in Direct Marketing

 _{Irritating to consumers}

 _{Taking unfair advantage of impulsive or}

less sophisticated buyers

 _{Targeting TV-addicted shoppers}  _{Deception, fraud}

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Rest Stop:

Reviewing the Concepts

1. Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.

2. Identify and explain the six major sales force management steps.

3. Discuss the personal selling process,

distinguishing between transaction-oriented marketing and relationship marketing.

4. Define direct marketing and discuss its benefits to customers and companies.