17-1 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 17 Personal selling 1-1

17-2 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Learning objectives 1.To examine the role of personal selling in the integrated marketing communication program. 2.To describe the advantages and disadvantages of personal selling as part of an IMC program. 3.To propose how personal selling might be combined with other elements in an IMC program. 4.To explain how to determine the effectiveness of the personal selling effort.

17-3 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Role Evaluation Limitations Advantages Personal selling Public relations Part of IMC Advertising Sales promotion Direct marketing Internet

17-4 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Personal selling Personal selling involves selling through a person-to-person communication process. The communication process is known as dyadic communications. Direct Personal Real time

17-5 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Determining the role of personal selling How cost effective is each alternative? How effective is each alternative in carrying out the needed exchange? What are the alternative ways to carry out these communications objectives? What information must be exchanged between firm and potential customer?

17-6 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell When the sales force is a major part of IMC

17-7 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Evolution of the seven steps of selling

17-8 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Evolved sales process

17-9 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell New roles for sales people Database knowledge & management Problem diagnosis & problem-solving Nurturing & maintaining relationships Value creators, value adders

17-10 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Desired qualities for sales people

17-11 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Relationship marketing Relationship marketing defined: The organisation’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit. Relationship marketing defined: The organisation’s effort to develop a long-term, cost-effective link with individual customers for mutual benefit.

17-12 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Factors important in customer retention

17-13 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Types of sales jobs This is essentially a support role Requires the most skill and preparation Must assess situation, determine needs This role is much more casual Often involves straight rebuying May not actually take the order Creative selling Order taking Missionary sales

17-14 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Company 360—a great way to identify prospects

17-15 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Six steps of selling 1. Prospecting and qualifying leads 2. Determining customer’s needs and wants. 3. Recommending a way to satisfy customer needs 4. Demonstrating the capabilities of the company and its products 5. Closing the sale 6. Following up the service account

17-16 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 10 traits of effective salespeople 1. Ego strength: a healthy self-esteem that allows one to bounce back from rejection. 2.Sense of urgency: wanting to get it done now. 3.Ego drive: a combination of competitiveness and self-esteem. 4.Assertiveness: the ability to be firm, lead the sales process, and get one’s point across confidently. 5.Risk-taking: willing to innovate and take a chance.

17-17 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 10 traits of effective salespeople (cont.) 6. Sociable: outgoing, friendly, talkative and interested in others. 7.Abstract reasoning: ability to understand concepts and ideas. 8.Scepticism: a slight lack of trust and suspicion of others. 9.Creativity: the ability to think differently. 10.Empathy: the ability to place oneself in someone else’s shoes.

17-18 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Traits buyers consider helpful and unhelpful

17-19 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Personal selling advantages and disadvantages Poor reach Tailoring the message Two-way interaction with prospect Prospect is not likely to be distracted High cost Potential for management/ sales force conflict Inconsistent messages Seller involved in purchase decision Source of research information Potential ethical problems Advantages Disadvantages

17-20 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Role Evaluation Limitations Advantages Personal selling Public relations Part of IMC Advertising Sales promotion Direct marketing Internet

17-21 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Personal selling combines with other IMC tools Advertising Public relations Direct marketing Sales promotion The internet Personal selling

17-22 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Personal selling and advertising work together

17-23 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Combining personal selling and advertising

17-24 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Combining personal selling and public relations Sales staff directly perform PR functions Encourage sales staff to undertake ‘pro bono’ work Encourage sales staff to support NFP and philanthropic organisations or causes Strategies Provide incentives for sales staff to join clubs and community groups

17-25 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The Body Shop

17-26 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Personal selling and direct marketing Screen leads and qualify prospects Supporting sales staff PR dimension Customer service & follow-up Can be combined with direct mail, and other DM methods Telemarketing

17-27 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Growth of telemarketing

17-28 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Incentives targeted at the sales force

17-29 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Combining personal selling and the internet Provide product information Screen prospects Build and market from databases Generate leads Fulfil orders

17-30 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Personal selling and the internet

17-31 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Evaluating the personal selling effort

17-32 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Role Evaluation Limitations Advantages Personal selling Public relations Part of IMC Advertising Sales promotion Direct marketing Internet

17-33 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Evaluating the sales force Sales results Sales efforts

17-34 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Quantitative measures of sales force

17-35 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Characteristics affecting sales force performance The courage to change Consistent training that leads to consistent execution Rigorous management processes that drive performance A clear link between company culture and value to sales strategies The strength of the field manager

17-36 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Criteria for evaluating personal selling's contribution Are communications objectives attained? Are IMC programs being implemented? Are follow-up activities conducted well? Provide good marketing intelligence?

17-37 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Summary and conclusions  The role of personal selling is evolving into a customer relationship model.  Within companies, the role of personal selling varies, depending on the nature of the industry, competition and market conditions.  In large industrial environments personal selling may be the dominant form of communications whereas in consumer non-durables, it may play a minor role.  Although personal selling can be expensive, the real-time nature of communications has many advantages.  One of personal selling’s limitations is the non-standardised nature of the message.  Evaluation of personal selling is the responsibility of the sales department.