Personal Selling, Sales Management, & Direct Marketing
Chapter Objectives • role of personal selling • within the promotion mix • steps in personal selling process • role of the sales manager • direct marketing
Personal Selling • when a company representative • interacts directly • with a (prospective) customer • to communicate • about a good or service
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.
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.
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
Types of Sales Jobs • Order taker • Facilitate transactions tha the customer initiates • Technical specialist • High skilled technical expertise who assist in product demonstration • Missionary salesperson • Promotes firm and (stimulate clients (demand) to buy) • New-business salesperson • Cold calls, breaking in new territory • Finding new customers and calling them to present the company products • order getter • Salesperson who works to develop long term relationship with customer / generate sales • Team selling & cross-functional team • Sales function by team consist sales person, technical specialist and others
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
Approaches to Personal Selling (cont’d) • Relationship selling • Process of building long-term customers by developing mutually satisfying, win-win relationships with customers
Creative selling Process • Makes positive transactions happen • Series of activities
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
The Creative Selling Process (cont’d) • Step 2: Pre-approach • Compiling prospective customers’ • background information • planning the sales interview
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
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.”
The Creative Selling Process (cont’d) • Step 4:Sales presentation • benefits & added value • of product/firm • advantages over competition • Inviting customer involvement • in conversation
Step 5: Handling Objections • Anticipating why • prospect is reluctant to make a commitment • Welcoming objections • Handling objections • successfully • to move prospect to decision stage
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
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
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
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
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
Recruiting, Training, & Rewarding • Sales training: • teaches salespeople about firm, • its products, • how to develop skills, • knowledge, and • attitudes to succeed
Recruiting, Training, and Rewarding • Paying salespeople well to motivate them • Straight commission plan • Commission-with-draw plan • Straight salary plan
Recruiting, Training, and Rewarding • Running sales contests • for short-term sales boost • Call reports: • which customers were called on and • how call went
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
DIRECT MARKETING ASSOCIATION Direct Marketing • Any direct communication • to a consumer or business recipient • designed to generate a response
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
Direct Marketing: MAIL ORDER • Catalogs: • collection of products • offered for sale • described in book form, • product descriptions and photos
Direct Marketing: MAIL ORDER • Direct mail: • brochure/pamphlet • offering a specific good/service • at one point in time
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
Direct Marketing (cont’d) • Direct-response advertising: • allows consumer to respond • by contacting the provider • with questions or an order
Direct Marketing (cont’d) • Direct-response TV (DRTV): • short commercials, • 30-minute+ infomercials, • home shopping networks • HSN • QVC • Jewelry television • ShopNBC • Gemtv
Direct Marketing (cont’d) • M-Commerce: • promotional & other e-commerce activities • transmitted over mobile phones/devices
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
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.
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?
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?
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? • --What benefits do you think it offers them?