2 Personal SellingPersonal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
3 The Role of the Sales Force The critical link between a company and its customers.Salespeople:represent the company to the customers.represent the customers to the company.strive to achieve customer satisfaction and company profit simultaneously.
4 Sale Force Organization TerritorialSales force organized by geographic areaProductSalespeople assigned to sell only certain product linesCustomerSales force organized by customer or industryComplexCombination of several types of structures
5 Team Selling Used to service large, complex corporate accounts Main advantages:Can find problems, solutions, and sales opportunities that no single salesperson couldCross-functional expertiseGoes beyond simple selling of productMore about finding customer solutions to complex issuesUsed primarily by “deep-pocket” companiesAlso called “Consultative Selling”
7 The Personal Selling Process ProspectingIdentifying qualified potential customers (prospecting)Pre-approachLearning as much as possible about a prospect before making the sales callApproachMeeting the customer for the first timePresentationTelling the “product story” to the buyer
8 The Personal Selling Process Handling ObjectionsEliciting, clarifying and overcoming customer objections to buyingClosingAsking the customer for an orderFollow-upFollowing up after the sale to ensure customer satisfaction & repeat businessTransaction orientation vs. relationship orientation
10 Direct Marketing Definition One-on-one communication in which offers are tailored to the needs of narrowly defined segments.Seeks a direct, immediate, and measurable consumer response.Can take many different forms.
12 Advantages of Direct Marketing Powerful tool for building customer long-term customer relationshipsEnables “true micromarketing” effortsCan reach prospects at just the right momentProvides access to buyers unreachable through other channelsMinimizes “wasted reach”Effectiveness is easily measured
13 Customer DatabasesAn organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.
14 Telemarketing Used in both consumer and B2B markets Outbound or InboundInbound consumer telemarketing and outbound business-to-business telemarketing remain strong despite DNC legislations
15 Telemarketing – the end of an industry? Do-Not-Call legislation forbids most telemarketers to contact phone numbers registered on its Web site$11,000+ fine per DNC violationDNC legislation effectively prohibits cell phones telemarketing (cannot call cellphones using auto-dialers)
16 Direct-Mail Marketing Involves sending a marketing offer to a pre-qualified prospect’s addressAddresses obtained from customer listsList sourcesCompanies develop their own databases (i.e. Williams Sonoma)Buy a list from a list brokerInternet accounts and warranty or product registrationsHigher cost per prospect reached, but yields higher quality prospects than mass mediaEasy to measure resultsThe “junk-mail” problem
17 Catalog MarketingOriginally a way to reach rural and “off-the-beaten-path” prospects.Nowadays most paper catalogs have gone digital (i.e. online)Expected catalog sales in 2008: $200 billion.Advantages and disadvantagesPaper vs. Online
18 Direct Response TV Marketing Direct-Response Advertising:TV spots that are 60 or 120 seconds long.Infomercials:A 30-minute or longer advertising program for a single product.Home Shopping Channels:Entire cable channels dedicated to selling multiple brands, items, and services.Copyright 2007, Prentice-Hall Inc.
19 Copyright 2007, Prentice-Hall Inc. Direct Response TVHSN – The Home Shopping Network – is a direct response marketer’s dream.Products shown on the channel can be ordered via a number or over the Internet from the HSN Web site.Copyright 2007, Prentice-Hall Inc.
20 Kiosk MarketingOrdering machines generally found in stores, airports, and other locations
21 Question du JourWhy haven’t kiosk marketing and vending machines taken off in the United States?