Marketing : An Introduction Armstrong, Kotler & da Silva Marketing : An Introduction An Asian Perspective 13 Integrated Marketing Communication: Personal Selling and Direct Marketing

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

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

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

Major Steps in Sales Force Management Figure 13.1

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

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

Telemarketing has become a popular method used in contacting prospective clients as well as maintaining customer relationships

Recruiting Salespeople Recommendations from current sales force Employment agencies Classified ads Web searches University and college students Recruit from other companies Are effective salespeople "born or made?"

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.

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

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.

How Salespeople Spend Their Time Figure 13.2

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

The Personal Selling Process Prospecting The salesperson identifies qualified potential customers Pre-approach 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

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

Direct Marketing Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

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

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

Forms of Direct Marketing Figure 13.4

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

Catalog Marketing With the Internet, more and more catalogs going electronic. Print catalogs still the primary medium. Harder to attract new customers with Internet catalogs.

Direct-Response TV Marketing Direct-Response Advertising Infomercials Home Shopping Channels