Ch. 14 Media Personal Selling Sales Management and Direct Marketing

(1)

Personal Selling,

Sales Management, &

(2)

Chapter Objectives

• role of personal selling

_{within the promotion mix}

• steps in personal selling process

• role of the sales manager

(3)

(4)

Personal Selling

• when a company representative

• interacts directly

• with a (prospective) customer

• to communicate

(5)

Personal Selling

• _{Personal touch}_{” is more effective}

than mass-media appeal.

• Selling/sales management • jobs provide high mobility,

especially for college grads

(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.

(7)

Technology and Personal Selling

• Customer relationship management

 (CRM) software

• partner relationship management

 (PRM)

• Teleconferencing,

• Video-conferencing,

• Improved corporate Web sites

• Voice-over Internet protocol

(8)

Types

of Sales Jobs

• Order taker

• Technical specialist

• Missionary salesperson

(stimulate clients to buy)

• New-business salesperson

Cold calls, breaking in new territory

(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

(10)

Approaches to Personal Selling (cont’d)

• Relationship selling

_{Process of building}_{long-term customers}

by developing mutually satisfying,

(11)

Creative selling Process

• Makes positive transactions happen

(12)

(13)

The Creative Selling Process

• Step 1: Prospecting and qualifying

--Prospecting:

• developing a list of potential customers

--Qualifying:

(14)

The Creative Selling Process (cont’d)

• Step 2: Pre-approach

_{Compiling prospective customers’}

• background information

(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,

(16)

The Creative Selling Process (cont’d)

• Step 3: Approach

_{Contacting the prospect}

Learning prospect’s needs, create a good impression, build rapport

(17)

The Creative Selling Process (cont’d)

•

Step 4:

Sales presentation

_{benefits & added value} • of product/firm

_{advantages over competition}

(18)

Step 5:

Handling

Objections

• Anticipating why

prospect is reluctant to make a commitment

• Welcoming objections

• Handling objections

successfully

(19)

Step 6:

Closing

the Sale

• Gaining the customer’s commitment

• in the decision stage

--Last-objection close --Assumptive close

--minor-points close

(20)

Step 7:

Follow-Up

•

Arranging for delivery,

Ensuring sure customer received delivery and is satisfied

•

Payment

Credit, factors, etc.

•

purchase terms

(21)

(22)

Sales Management:

Sales force objectives

• What sales force is expected to

accomplish and when

Customer Satisfaction

Loyalty

Retention / turnover

New customer

New product suggestions

Training

Reporting on competition

(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

(24)

Recruiting

, Training, & Rewarding

• Recruiting

the right people

_{Good listening and follow-up skills}

_{adaptive style}

• from situation to situation _Tenacity

(25)

Recruiting,

Training

, & Rewarding

•

Sales training

:

• teaches salespeople about firm,

• _{its products,}

• how to develop skills,

• knowledge, and

(26)

Recruiting, Training, and

Rewarding

• Paying

salespeople well to

motivate them

_{Straight commission plan}

(27)

Recruiting, Training, and

Rewarding

• Running sales contests

_{for short-term sales boost}

• Call reports:

(28)

Evaluating

the Sales Force

• Is sales force meeting its objectives? • What are possible causes of failure?

Measuring performance

Monitoring expense accounts

(29)

(30)

Direct Marketing

• Any

direct communication

_{to a consumer or business recipient}

(31)

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,}

(33)

Direct Marketing: MAIL ORDER

• Direct mail:



brochure/pamphlet

(34)

Direct Marketing:

telemarketing

• conducted over the telephone

_{More profitable for}_business • than consumer markets

In 2003, FTC established:

(35)

Direct Marketing (cont’d)

• Direct-response advertising: • allows consumer to respond

• by contacting the provider

(36)

Direct Marketing (cont’d)

•

Direct-response TV (DRTV):

• _short_commercials,

• _30-minute+_infomercials_, • _{home shopping networks}

–HSN –QVC

(37)

Direct Marketing (cont’d)

• M-Commerce:

(38)

Direct Marketing (cont’d)

•

M-Commerce:

(SMS)

• Short-messaging system marketing

Spim_:

• instant-messaging version of spam

Adware_:

(39)

(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?

(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

(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.

(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

(44)

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.

(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

(46)

Group Activity

• Your group are field

salespeople for a firm that markets university

textbooks.

(47)

Individual Activity

• _{What are the pros and cons of personal}

selling as a career choice for you?

(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

(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}

(50)

Discussion

• _{What is a sales manager’s best approach}

for determining the appropriate rewards program?

• _{What issues are important in developing}

(51)

Discussion

• Some experts think consumer catalog shopping has

increased because of poor service in retail stores.

 Evaluate the quality of most retail salespeople you meet.

 How can retailers can improve the quality of their sales associates?

(52)

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?