Ch. 14 Media Personal Selling Sales Management and Direct Marketing

  

Personal Selling ,

Sales Management, &

  

Direct Marketing

• role of personal selling
• within the promotion mix
>steps in personal selling process
• role of the sales manager
• direct marketing

  SELLING

• when a company representa>interacts dire
• with a (

  prospective ) customer

• to communicate
• about a good or service

• Personal touch

  ” is more effective  than mass-media appeal.

• Selling/sales management
• jobs provide

  high mobility ,

• especially for college grads  with marketing background.
• Personal selling is more important:  -- when firm uses push strategy .

• in B2B contexts .

  inexperienced consumers

• with .
• who need hands-on assistance
• for products bought infrequently • (houses, cars, computers).
• Cost per contact is very high.
• Customer relationship management

• (CRM) software
• partner relationship management
• (PRM)
• Teleconferencing,
• Video-conferencing,
• Improved corporate Web sites
• Voice-over Internet protocol
• Assorted wireless technologies

• Order t
• Technical specialist
• Missionary salesperson
• (stimulate clients to buy)
• New-business salesperson
• Cold calls, breaking in new territory
>order ge
• Team selling & cross-functional team
• Transactional selling

  :

  Putting on the hard sell

• High-pressure process
• focuses on immediate sales
• no concern for developing long-term customer relationship

• Relationship selling
• Process of building

  long-term customers by developing mutually satisfying, win- win relationships with customers

  

Creative selling Process

• Makes positive transactions ha
• Series of activities

• Step 1: Prospecting and qualifying
• Prospecting :
• developing a list of potential customers
• Qualifying :
• determining how likely potential customers are to become customers
• Step 2: Pre-approach

• Compiling prospective customers’

• background information
• planning the sales interview
• Step 2: Pre-approach

• Purchase history,
• current needs,
• customer’s interests
• From
• informal sources,
• CRM system,
• customers’ Web sites,

• 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.”
• Step 4:

  Sales presentation

• benefits & added value
• of product/firm
• advantages over competition
• Inviting customer involvement
• in conversation

  Objections

• Anticipating why
• prospect is reluctant to make a commitment
• Welcoming objections
• Handling objections
• successfully
• to move prospect to decision stage

  Closing

• Gaining the customer’s

  commitment

• in the decision stage ^--

  Last-objection close --Assumptive close --minor-points close --Standing-room-only close --buy-now close

  Follow-Up

• Arranging for delivery,
• Ensuring sure customer received delivery
• and is satisfied
>Payment Credit, factors, etc.
• purchase terms
• Bridging to next purchase

  Management Process accomplish and when Customer Satisfaction Loyalty Retention / turnover New customer development New product suggestions Training Reporting on competition Community involvement

  Sales force objectives

• What sales force is expected to
• 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

• Recruiting the right people
• Good listening and follow-up skills
• adaptive 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

• 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:
• which customers were called on and
• how call went

  failure ?

  meeting its objectives ?

• Is sales force
• What are possible causes of

  Measuring performance Monitoring expense accounts for travel and entertainment

• Any

  direct communication

• to a consumer or business recipient
• designed to generate a response

  :

• Response
• in the form of an
• order,
• request for further information,
• a visit to a store
>other place of busi
• for purchase of a product
• Catalogs:

• collection of products
• offered for sale
>described in book form,
• product descriptions and photos

• Direct mail:
• brochure/pamphlet
• offering a specific good/service
• at one point in time
telemarketing

• conducted over the

  telephone

• More profitable for business
• than consumer markets
• In 2003, FTC established:
• National Do Not Call registry

  :

• Direct-response adverti
• allows consumer to respond
• by

  contacting the provider

• with questions or an order
• Direct-response TV (DRTV):
• short commercials,
• 30-minute+ infomercials ,
• home shopping networks

• –HSN
• –QVC
• –Jewelry television
• –ShopNBC
• –Gemtv

• M-Comme
• promotional & other e-commerce activities
• transmitted over

  mobile phones/devices

• M-Commerce:
• Short-messaging system marketing

  (SMS)

• instant-messaging version of spam

  : Spim

• :

  Adware

• software that tracks Web habits/interests ,

  pop-up ads

• presen
• resetting home page

• 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?

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?

  

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?

• 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.

• 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.
_IBM.COM
• 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?

• 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.}

• 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.
• 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?

• 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?

• What is a sales manager’s best approach

  for determining the appropriate rewards program?

• What issues are important in developing

  the program?

• 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?
• 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?

• --What benefits do you think it offers them?