Personal Selling, Database Marketing, and Customer Relationship Management Chapter 12 with Duane Weaver

Personal Selling - Retail The retail sales connection to the IMC plan is vitally important to marketing success…the salesperson “is” the company…the last 3 feet of the marketing effort

4 Categories of Retail 1. Shops and stores Single transaction (one to one assistance/negotiation) to order taker 2. Personal selling and services 1. Sales rep sells service and may lead to repeat selling relationship 2. Sell and then also provide the service 3. Telemarketing Inbound Outbound 4. Other retail sales activities Add-on sales/service initiatives to enhance sales profit or customer value

Business to Business Selling Field Sales Order Getters Continuum of Buyer Seller Relationship Strategic Partnership EDI relationship Trust Relationships Contractual Agreements Repeat Transactions Occasional Transactions Single Transactions

Managing Business to Business Sales Identify (fill the pipeline) Qualify (filter/ripen the pipeline) Knowledge Acquisition (Needs Analysis – understanding the buyer) Intrinsic (commodity price focused – place order) $ Extrinsic (product as solution -consultation) $$$ Strategic (vendors willing to be partners to satisfy customer needs) $$$$$$$$$ FOLLOW UP: intrinsic to building long term relationships and maintaining brand loyalty

Sales Approaches Stimulus-response (canned) Need-satisfaction (skilled open-ended questioning) Problem-solution (similar to above, yet identifies & communicates pains related to solutions) Mission-sharing (borderline joint venture sale – e.g.: business development)

Sales Cycle

Presented by D. Weaver, 2Birds1Stone Media The Basic Sales Cycle 1. Needs Analysis 2. Recommendation 3. Preparing the Close 4. Closing 5. Repeat/Referral Business Recommend Prepare the Close Close Repeat/Referral Business Needs Analysis Copyright 2006

Presented by D. Weaver, 2Birds1Stone Media Learning and Practicing Skills – Identifying Needs Closed-Ended Questions (example?) Advantage / Disadvantage? Open-Ended Questions (example?) Advantage / Disadvantage? Exercise – in 2 minutes write down two open- ended questions you could use when you first speak to a customer. Turn to your neighbor and ask him the question. Note his response.

Database Marketing Determine Objectives Collect Data Build Data Warehouse Data Mining Develop Marketing Programs Evaluate Programs/Evaluate Data Warehouse

Direct Marketing Mail Catalogues Mass Media Alternative Media Internet

Permission based Marketing 1. Obtain customer permission 2. Offer curriculum to consumer over time 3. Reinforce the incentive to continue relationship (provide value) 4. Increase level of permission (gain trust and maintain integrity) 5. Leverage permission to the benefit of both parties

Frequency Programs Incentive program designed to create repeat purchases

CRM (Customer Relationship Management) Designed to build long-term loyalty and bonds with customers through the use of personal touch facilitated by technology (ACT…etc) METRICS OF CRM: Lifetime Value of Customer Share of the Customer (% of potential customer lifetime value accessed)

Discussion Questions Question 3 on page 392 Question 4 on page 392 Question 8 on page 393

Thanks Be prepared for a quiz at anytime