1. Principles of Marketing Lecture-37

2. Summary of Lecture-36

3. Sales Force Management

4. Steps in the Selling Process

5. Managing the Sales force

6. Designing Sales force Strategy and Structure Recruiting and Selecting Salespeople Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople

7. Today’s Topics

8. Sales force Management (cont..) Direct Marketing

9. Supervising Salespeople

10. Directing Salesperson Motivating Salesperson

11. Motivating Salespeople

12. Organizational Climate Sales Quotas Positive Incentives – Honors – Awards – Merchandise/ Cash – Trips

13. How Salespeople Spend Their Time

14. Administrative Tasks 17% Telephone Selling 21% Waiting/ Traveling 20% Service Calls 12% Face-to-Face Selling 30% Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling.

15. Evaluating Salespeople

16. Annual Territory Marketing Plan Annual Territory Marketing Plan Call Reports Call Reports Expense Reports Expense Reports Work Plan Work Plan Sales Report Sales Report Sources of Information Sources of Information

17. Quantitative Criteria – Orders Number of orders obtained Average order size (units or dollars) Number of orders canceled by customers – Sales volume Dollar sales volume Unit sales volume By customer type By product category Translated into market share Percentage of sales quota achieved

18. – Margins Gross margin Net profit By customer type By product category – Customer accounts Number of new accounts Number of lost accounts Percentage of accounts sold Number of overdue accounts Collections made of accounts receivable

19. – Sales calls Number made on current customers Number made on potential new accounts Average time spent per call Number of sales presentations Selling time versus nonselling time Call frequency ratio per customer type – Selling expenses Average per sales call As percentage of sales volume As percentage of sales quota Direct-selling expense ratios Indirect-selling expense ratios

20. – Customer service Number of service calls Displays set up Delivery cost per unit sold Months of inventory held, by customer type Number of customer complaints Percentage of goods returned

21. – Selling skills Knowing the company and its policies Knowing competitors’ products and sales strategies Understanding of selling techniques Customer feedback (positive and negative) Product knowledge Customer knowledge Execution of selling techniques Quality of sales presentations Communication skills

22. Qualitative Criteria – Sales-related activities Territory management: sales call preparation, scheduling, routing, and time utilization Marketing intelligence: new product ideas, competitive activities, new customer preferences Follow-ups: use of promotional brochures and correspondence with current and potential accounts Customer relations Report preparation and timely submission

23. – Personal characteristics Cooperation Human relations Enthusiasm motivation Judgment Care of company property Appearance Self-improvement efforts Patience Punctuality Initiative Resourcefulness Health Sales management potential Ethical and moral behavior

24. Developing the Sales force Recruiting Selecting Training

25. Direct Marketing

26. One-to-One Marketing

27. Direct communications with carefully targeted individual consumers to obtain an immediate response.

28. Direct Marketing  Fastest growing promotional mix element  Easy to narrowly target a segment  Measure outcomes easier  Databases are extremely important

29. Direct Marketing Better targeting reduces waste Better targeting reduces waste Breaks through ad clutter Breaks through ad clutter

30. Direct Marketing Consists of Direct Connections With Carefully Targeted Individual Consumers to Both Obtain an Immediate Response and Cultivate Lasting Customer Relationships.

31. Most Mass Marketing Involves One-Way Communications Aimed At Consumers. Direct Marketing Involves Two-Way Interactions With Customers.

32. Direct Marketing Focuses on Share of Customer Develops Customers Finds Products for Customers Mass Marketing Focuses on Share of Market Develops Products Finds Customers for Products

33. Communications Process Differences

34. Message isPersonalized Personalized Channel isDirect Direct Noise Noise is not present Noise Noise is not present Response Individual Response is captured

35. The New Direct Marketing Model

36.  Some firms use direct marketing as a supplemental medium.  For many companies, direct marketing - especially Internet and e-commerce companies - constitutes a new and complete model for doing business.  Some firms use the new direct model as their only approach.  Experts envision a day when all buying and selling will involve direct connections between companies and their customers.

37. Advantages of Direct Marketing

38. The ability to identify the most profitable customer. The ability to create long-term relationships with customers. The ability to target marketing efforts only to those people most likely to be interested. The ability to offer varied messages to different consumers. Increased knowledge about the customer.

39. Factors Driving Direct Marketing Growth

40. Predictive Modeling Predictive Modeling Customized Products Customized Products Convenience Fragmented Markets Fragmented Markets Shrinking Media Audiences Shrinking Media Audiences Immediate Sales Immediate Sales Price Sensitivity Price Sensitivity

41. Demassification – Focus is Toward Minimarkets Demassification – Focus is Toward Minimarkets Higher Costs of Driving, Traffic and Parking Congestion Higher Costs of Driving, Traffic and Parking Congestion Consumers Lack of Time Convenience of Ordering From Direct Marketers Convenience of Ordering From Direct Marketers Growth of Customer Databases

42. Forms of Direct Marketing

43. Direct Mail Kiosk Marketing Online Marketing Telemarketing Direct-Response TV Marketing Catalog Face-to-Face Selling

44. Techniques of Direct Marketing

45. Electronic Media Electronic Media Direct Selling Print Media Print Media Broadcast Media Broadcast Media Direct Mail Telemarketing

46. Direct Mail

47. Self-Contained Message Flexibility Thorough Target Market Coverage Fewer Distractions From Other Media Large Number of Mail-Order Buyers AdvantagesDisadvantages High Cost Per Exposure Potential Delivery Delays Lack of Support From Other Media Easy to Ignore Seen as Wasteful, Harmful to Environment

48. Customer Databases

49. Customer Databases are an Organized Collection of Comprehensive Data About Individual Customers or Prospects Including: – Geographic, – Demographic, – Psychographic, and – Behavioral Data.

50. Individualized Information-Intensive Customer-Based Long-Term Oriented Share of Customer With a Focus on... Database Technology Database Technology Direct Marketing is... Direct Marketing is... Through Use of...

51. Database Marketing

52. Database Marketing is the Process of Building, Maintaining, and Using Customer Databases and Other Databases for the Purposes of Contacting and Transacting With Customers.

53. Marketing Database The compilation of names, addresses, and other pieces of pertinent information about individual customers and prospects that affects what and how marketers sell to them.

54. Identifying Prospects Deciding Which Customers Should Receive a Particular Offer Deciding Which Customers Should Receive a Particular Offer Deepening Customer Loyalty Reactivating Customer Purchases How Companies Use Their Databases ?

55. Enough for today...

56. Summary

57. Supervising Salespeople

58. Motivating Salespeople

59. Evaluating Salespeople

60. Direct Marketing

61. Better targeting reduces waste Better targeting reduces waste Breaks through ad clutter Breaks through ad clutter

62. Advantages of Direct Marketing

63. Factors Driving Direct Marketing Growth

64. Forms of Direct Marketing

65. Customer Databases

66. Next….

67. Public Relations

68. Principles of Marketing Lecture-37