1. Copyright © 2005 Pearson Education Inc. Personal Selling and Direct Marketing Chapter 17 PowerPoint slides Express version Instructor name Course name School name Date Principles of Marketing, Sixth Canadian Edition

2. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.2 Learning Objectives After studying this chapter, you should be able to: –Discuss the role of a company’s salespeople in creating value for customers and building customer relationships –Identify and explain the six major sales force management steps –Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing –Define direct marketing and discuss its benefits to customers and companies –Identify and discuss the major forms of direct marketing

3. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.3 Personal Selling Salesperson: an individual acting for a company by performing one or more of these activities: –Prospecting for new business –Communicating with prospective/existing customers –Servicing existing customers –Information gathering Nature of sales positions will vary: –Order taking –Order getting –Creative selling –Relationship management Role of the sales force: –Represent the company to customers –Represent the customer to the company –Produce customer satisfaction and company profit

4. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.4 Sales Force Management Sales force management: the analysis, planning, implementation, and control of sales force activities. Sales force structure: –Territorial sales force structure –Product sales force structure –Customer sales force structure –Complex sales force structure Other issues: –Outside sales force –Inside sales force –Team selling Figure 17.1

5. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.5 Sales Force Management (continued) Recruiting: finding a pool of qualified applicants from which to make a selection decision –Sources: internal, competitors, suppliers, educational institutions, employment agencies, classified ads, and websites Selection: choosing the candidate with the highest probability of success in the position –Methods: intelligence/personality testing, interviews, role play exercises, references, and background checks Figure 17.1

6. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.6 Sales Force Management (continued) Training: investing in the human capital of the company, helping sales people to become more productive employees –Objectives of training can be to learn: Company history and culture Products and their application Selling skills such as prospecting, questioning, closing, and time and territory management Figure 17.1

7. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.7 Sales Force Compensation Compensation is used to direct activities and motivate salespeople Will consist of fixed amount (salary), variable amount (bonus or incentives), expenses, and fringe benefits Table 17.1

8. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.8 Supervising Salespeople Supervision is used to direct and motivate salespeople Companies will vary in how closely they supervise their salespeople Tools used: –Call reports and plans –Time-and-duty analysis –Sales force automation systems Motivating salespeople: –Organizational climate –Sales quotas –Sales meetings –Reward systems Figure 17.2

9. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.9 Evaluating Salespeople Measuring performance and providing feedback Information collected and used for evaluation purposes: –Sales reports –Expense reports –Call reports Territory reviews may be conducted to discuss performance Standards of performance need to be clearly articulated to salespeople Focus on behaviour

10. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.10 The Personal Selling Process The goal of the personal selling process is to find new customers and sell them something Most salespeople spend their time maintaining existing accounts and building long-term customer relationships Not all steps required in every sale Figure 17.3

11. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.11 Customer Relationship Management Most personal selling is transaction-oriented Companies want to encourage repeat purchasing because it is more efficient Mutually profitable relationships are built on creating value, offering packaged solutions to problems, and improving products and processes Figure 17.3

12. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.12 Direct Marketing Direct marketing: direct communications with carefully targeted individual consumers to obtain an immediate response –Can be a primary approach or as a supplement to other approaches Benefits to consumers: –Convenient, easy to use, and private –Ready access to wealth of products –Immediate and interactive Benefits to sellers: –Powerful tool to build customer relationships –One-to-one marketing –Low-cost, efficient alternative for reaching target markets

13. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.13 Direct Marketing (continued) Customer database: organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data –Used to identify prospects and generate sales leads –Profile customers based on previous purchasing or response to offers –Build customer loyalty by tailoring new offers to their specific interests

14. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.14 Forms of Direct Marketing (continued) Telephone marketing Direct mail marketing Catalogue marketing Direct-response television marketing Kiosk marketing Integrated direct marketing: –Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits Continuing communication Paid ad with a response channel Direct mail Outbound telemarketing Face-to-face sales call Figure 17.5

15. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.15 Public Policy and Ethical Issues Irritation, unfairness, deception, and fraud Invasion of privacy Personal Information Protection and Electronic Documents Act (2001): –Consumer consent –Limitations –Accuracy –Right to access

16. Copyright © 2005 Pearson Education Inc. Principles of Marketing, Sixth Canadian Edition 17.16 In Conclusion… The learning objectives for this chapter were: –Discuss the role of a company’s salespeople in creating value for customers and building customer relationships –Identify and explain the six major sales force management steps –Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing –Define direct marketing and discuss its benefits to customers and companies –Identify and discuss the major forms of direct marketing