1. Chapter 1 13
Integrated Marketing Communication: Personal Selling and Direct Marketing

2. ROAD MAP: Previewing the Concepts
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. 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
Order getter: Creative selling in different environments

4. 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
Negotiate terms of sales
Build long-term personal relationships

5. 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
Goal =
Customer Satisfaction and Company Profit

6. Major Steps in Sales Force Management

7. Sales 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 organizes along customer or industry lines
Complex: Combination of several types of structures

8. Inside Sales Force
Conduct business from their offices via telephone or visits from perspective buyers.
Includes:
Technical support people
Sales assistants
Telemarketers

9. Chapter 1
Discussion Question
For what types of products or product categories do you think inside selling might be more effective than outside selling?

10. Inside Sales Force
Experienced telemarketers sell complex chemical products by telephone at DuPont’s Customer Telecontact Center.

11. Team Selling Used to service large, complex accounts.
Can include experts from different areas of selling firm.
Pitfalls:
Can confuse or overwhelm customers
Some people have trouble working in teams
Hard to evaluate individual contributions

12. Recruiting and Selecting Salespeople
Key talents of salespeople:
Intrinsic motivation
Disciplined work style
Ability to close a sale
Ability to build relationships with customers

13. Recruiting Salespeople
Recommendations from current sales force
Employment agencies
Classified ads
Web searches
College students
Recruit from other companies

14. Sales Force Training Goals
Learn about and identify with the company.
Learn about the company’s products.
Learn customers’ and competitors’ characteristics.
Learn how to make effective presentations.
Learn field procedures and responsibilities.

15. Compensating Salespeople
Fixed amount:
Salary
Variable amount:
Commissions or bonuses
Expenses:
Repays for job-related expenditures
Fringe benefits:
Vacations, sick leave, pension, etc.

16. Supervising Salespeople
Chapter 1
Supervising Salespeople
Directing Salespeople
Help them identify customers and set call norms.
Specify time to be spent prospecting
Annual call plan
Time-and-duty analysis
Sales force automation systems
Annual Call Plan: shows which customers and prospects to call on in which months and which activities to carry out. Activities include taking part in trade shows, attending sales meetings, and carrying out marketing research.
Time-and –Duty Analysis: Assessment of time spent selling, traveling, waiting, eating, taking breaks, and doing administrative tasks.
Sales Force Automation: computerized sales force operations for more efficient order-entry transactions, improved customer service, and better salesperson decision-making support.

17. How Salespeople Spend Their Time

18. Supervising Salespeople
Motivating Salespeople
Organizational climate
Sales quotas
Positive incentives:
Sales meetings
Sales contests
Recognition and honors
Cash awards, trips, profit sharing

19. Sales Force Incentives
Many companies offer cash, trips, or merchandise as incentives. Marriott suggests that companies reward outstanding sales performers by letting them “spread their wings and reenergize” at fabulous Marriott resorts worldwide.

20. Major Steps in Effective Selling

21. The Personal Selling Process
Prospecting
The salesperson identifies qualified potential customers
Preapproach
The salesperson learns as much as possible about a prospective customer before making a sales call
Approach
The salesperson meets the customer for the first time
Presentation
The salesperson tells the “product story” to the buyer, highlighting customer benefits

22. 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

23. Owens-Corning Field Sales Advantage system gives salespeople a constant supply of information about their company and the people with whom they are dealing.

24. Chapter 1
Direct Marketing
Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
Click Here to Visit the Direct Marketing Association's Website

25. The New Direct-Marketing Model
Chapter 1
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 model of the next millennium.

26. Benefits of Direct Marketing
Chapter 1
Benefits of Direct Marketing
Benefits to Buyers:
Convenient
Easy to use
Private
Ready access to products and information
Immediate and interactive

27. Benefits of Direct Marketing
Chapter 1
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
Offers a low-cost, efficient way to reach markets

28. Chapter 1
Customer Databases
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

29. Forms of Direct Marketing
Chapter 1
Forms of Direct Marketing

30. Chapter 1
Telephone Marketing
Accounts for more than 36% of all direct-marketing sales.
Used in both consumer and B2B markets.
Can be outbound or inbound calls.

31. Inbound Telephone Marketing
The Carolina Cookie Company urges, “Don’t wait another day! Call now to place an order or request a catalog.”

32. Direct-Mail Marketing
Chapter 1
Direct-Mail Marketing
Involves sending an offer, announcement, reminder, or other item to a person at a particular address.
Accounts for more than 31% of direct-marketing sales.
Permits high target-market selectivity.
Personal and flexible.
Easy to measure results.

33. Chapter 1
Catalog Marketing
With the Internet, more and more catalogs going electronic.
Print catalogs still the primary medium.
Expected sales in 2008 = $176 billion.
Harder to attract new customers with Internet catalogs.

34. Direct-Response TV Marketing
Chapter 1
Direct-Response TV Marketing
Direct-Response Advertising
Infomercials
Home Shopping Channels

35. Infomercial
Ronco and Ron Popeil, with his Veg-o-Matics, food dehydrators, and electric egg scramblers, paved the way for a host of mainstream marketers who now use direct-response ads.

36. Chapter 1
Kiosk Marketing
Information and ordering machines generally found in stores, airports, and other locations.

37. Interactive Student Assignment
Chapter 1
Choose a partner and discuss some of the products each of you has purchased as a result of direct marketing. What were the advantages for you when making your purchases in this manner?

38. Integrated Direct-Marketing
Chapter 1
Integrated Direct-Marketing
The use of carefully coordinated multiple-media, multiple-stage campaigns.

39. Public Policy and Ethical Issues in Direct Marketing
Chapter 1
Public Policy and Ethical Issues in Direct Marketing
Irritation to Consumers
Taking unfair advantage of impulsive or less sophisticated buyers
Targeting TV-addicted shoppers
Deception, Fraud
Invasion of Privacy

40. Rest Stop: Reviewing the Concepts
Chapter 1
Rest Stop: Reviewing the Concepts
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.