Integrated Marketing Communication: Personal Selling and Direct Marketing 13

13-2 The Nature of Personal Selling Most salespeople are well-educated, well- trained professionals who work to build and maintain long-term customer relationships. 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: The term salesperson covers a wide range of positions: –Order taker: Department store clerk –Order getter: Creative selling in different environments

13-3 What is Personal Selling? Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether:  face to face,  by telephone,  through video conferencing,  or by other means.

13-4 The Role of the Sales Force Personal selling is a paid, personal form of promotion. Personal selling is a paid, personal form of promotion. Involves two-way personal communication between salespeople and individual customers. Involves two-way personal communication between salespeople and individual customers. Salespeople: Salespeople: –Probe customers to learn about problems –Adjust marketing offers to fit special needs –Negotiate terms of sales –Build long-term personal relationships

13-5 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

13-6 Major Steps in Sales Force Management

13-7 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

13-8 Sales Force Size Salespeople are one of a company’s most productive and expensive assets. Salespeople are one of a company’s most productive and expensive assets. Sales forces have been shrinking in size because of: Sales forces have been shrinking in size because of: Many companies use some form of workload approach to set sales force size: Many companies use some form of workload approach to set sales force size: –Group accounts into different size classes, –How many people are needed to call on them.

13-9 Inside Sales Force Inside Sales Force Outside Sales Force Outside Sales Force Travel to Call on Customers Travel to Call on Customers Sells to Major Accounts Sells to Major Accounts Finds Major New Prospects Finds Major New Prospects Conduct Business From Their Offices Via Phone/Buyer Visits Conduct Business From Their Offices Via Phone/Buyer Visits Technical Support People Technical Support People Tele- Marketer & Internet Tele- Marketer & Internet Other Sales Force Strategy and Structure Issues Sales Assistants Sales Assistants

13-10 Team Selling Use team selling to service large, complex accounts. Use team selling to service large, complex accounts. Team finds problems, solutions, and sales opportunities. Team finds problems, solutions, and sales opportunities. Can include experts from different areas of selling firm. Can include experts from different areas of selling firm.

13-11 Team Selling Pitfalls: Pitfalls: –Can confuse or overwhelm customers –Some people have trouble working in teams

13-12 Recruiting and Selecting Salespeople Key talents of salespeople: Key talents of salespeople: –Intrinsic motivation –Disciplined work style –Ability to close a sale –Ability to build relationships with customers

13-13 Some Traits of Good Salespeople

13-14 Salespeople from Other Companies Search the Web Classified Ads Employment Agencies Recommendations for Recruiting Salespeople

13-15 Selection Process Usually Evaluates a Person’s Other Characteristics Personality Traits Sales Aptitude Analytical and Organizational Skills Analytical and Organizational Skills Selecting Salespeople

13-16 Sales Force Training Goals Learn about and identify with the company. Learn about the company’s products. Learn customers’ and competitors’ characteristics. Learn field procedures and responsibilities.

13-17 Fixed Amount: Usually a Salary Fixed Amount: Usually a Salary Variable Amount: Usually Commissions Or Bonuses Variable Amount: Usually Commissions Or Bonuses To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements Expense Allowance: For Job- Related Expenses Expense Allowance: For Job- Related Expenses Compensating Salespeople

13-18 Supervising Salespeople Directing Salespeople Directing Salespeople Identify Customer Targets & Call Norms Identify Customer Targets & Call Norms Time Spent Prospecting for New Accounts Time Spent Prospecting for New Accounts Use Sales Time Efficiently Use Sales Time Efficiently  Annual Call Plan  Time-and-Duty Analysis  Sales Force Automation Motivating Salespeople Organizational Climate Organizational Climate Sales Quotas Sales Quotas Positive Incentives Positive Incentives  Sales Meetings  Sales Contests  Honors and Trips  Merchandise/Cash

13-19 How Salespeople Spend Their Time

13-20 Evaluating Salespeople Management gets information about its salespeople in several ways: Management gets information about its salespeople in several ways: –Sales reports, call reports, expense reports, and –Personal observations, customer surveys, etc. Formal evaluation of performance can be done qualitatively or quantitatively. Formal evaluation of performance can be done qualitatively or quantitatively. Evaluation methods of performance include: Evaluation methods of performance include: –Comparing salespeople’s performance to others, –Comparing current sales with past sales.

13-21 Major Steps in Effective Selling

13-22 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

13-23 The Personal Selling Process Handling Objections The salesperson seeks out, clarifies, and overcomes customer objections to buying Follow-up The salesperson follows up after the sale to ensure customer satisfaction and repeat business

13-24 What is Direct Marketing? Direct Marketing Consists of Direct Connections With Carefully Targeted Individual Consumers to Both Obtain an Immediate Response and Cultivate Lasting Customer Relationships.

13-25 The New Direct-Marketing Model Some firms use direct marketing as a supplemental medium. Some firms use direct marketing as a supplemental medium. For many companies, direct marketing constitutes a new and complete model for doing business. 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 firms employ the direct model as their only approach. Some see this as the new marketing model of the next millennium. Some see this as the new marketing model of the next millennium.

13-26 Product Access & Selection Abundance of Information Interactive & Immediate Buyers Benefits Sellers Benefits Consumer Relationship Building Reduces Costs Increases Speed & Efficiency Provides Flexibility Benefits and Growth of Direct Marketing

13-27 Benefits of Direct Marketing Additional Benefits to Sellers: Additional Benefits to Sellers: –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

13-28 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 The Growth of Direct Marketing

13-29 Customer Databases An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data. An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

13-30 Identifying Prospects Deciding Which Customers Should Receive a Particular Offer Deciding Which Customers Should Receive a Particular Offer Deepening Customer Loyalty Reactivating Customer Purchases Database Marketing Database Marketing is the Process of Building, Maintaining, and Using Customer Databases and Other Databases for the Purposes of Contacting and Transacting With Customers. How Companies Use Their Databases:

13-31 Forms of Direct Marketing

13-32 Telephone Marketing Accounts for more than 36% of all direct-marketing sales. Accounts for more than 36% of all direct-marketing sales. Used in both consumer and B2B markets. Used in both consumer and B2B markets.

13-33 Direct-Mail Marketing Involves sending an offer, announcement, reminder, or other item to a person at a particular address. 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. Accounts for more than 31% of direct- marketing sales. Permits high target-market selectivity. Permits high target-market selectivity. Personal and flexible. Personal and flexible. Easy to measure results. Easy to measure results.

13-34 Catalog Marketing With the Internet, more and more catalogs going electronic. With the Internet, more and more catalogs going electronic. Print catalogs still the primary medium. Print catalogs still the primary medium. Expected sales in 2008 = $176 billion. Expected sales in 2008 = $176 billion. Harder to attract new customers with Internet catalogs. Harder to attract new customers with Internet catalogs.

13-35 Direct-Response TV Marketing Direct-Response Advertising

13-36 Kiosk Marketing Information and ordering machines generally found in stores, airports, and other locations. Information and ordering machines generally found in stores, airports, and other locations.

13-37 Integrated Direct-Marketing The use of carefully coordinated multiple-media, multiple-stage campaigns. The use of carefully coordinated multiple-media, multiple-stage campaigns.

13-38 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