1. Communicating Customer Value: Personal Selling and Direct Marketing
CHAPTER 13
Communicating Customer Value: Personal Selling and Direct Marketing

2. Roadmap: Previewing the Concepts
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.
Identify and explain the six major sales force management steps.
Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.
Define direct marketing and discuss its benefits to customers and companies.
Identify and discuss the major forms of direct marketing.
Copyright 2007, Prentice-Hall Inc.

3. CDW – Relationship Building Success
Background
Nation’s largest reseller of technology products and services to small and mid-size businesses.
Since 2000, sales up 48% to $5.7 billion and profits up 15% annually.
Highly devoted to customer with “Circle of Service” philosophy.
Personal Selling’s Role
“Clicks & people” strategy combines personal selling with strong Web presence.
Salespeople build and manage relationships by being trusted advisors.
Training is extensive as salespeople must be knowledgeable and customer focused.
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4. Personal Selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Salespeople engage in prospecting, communicating, servicing, and information gathering on behalf of the firm.
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5. 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
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6. The Role of the Sales Force
Sales force serves as critical link between company and its customers.
More effective than advertising in complex selling situations.
They represent the company to the customers.
They represent the customers to the company.
Goal = customer satisfaction and company profit.
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7. Figure 13-1 Major Steps in Sales Force Management
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8. Sale Force Structure Territorial: Product: Customer: Complex:
Salesperson assigned to exclusive area and sells full line of products.
Product:
Sales force sells only certain product lines.
Customer:
Sales force organized by customer or industry.
Complex:
Combination of several types of structures.
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9. Sale Force Size Workload approach to setting sales force size:
Firm first groups accounts into different classes according to size, account status, or other factors related to the effort need to maintain them.
The firm then determines the number of representatives needed to call on each class the desired number of times.
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10. Outside and Inside Sales Forces
An outside sales force travels to call on customers in the field.
An inside sales force conducts business from their offices via telephone or visits from perspective buyers.
Includes:
Technical support people
Sales assistants
Telemarketers
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11. Let’s Talk!
Insides sales forces use the phone or Internet to service and contact customers. For what types of products or services do you think that an inside sales force might be more effective than an outside sales force? Explain.
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12. Team Selling Used to service large, complex accounts.
Can find problems, solutions, and sales opportunities that no single person could.
Can include experts from different areas of selling firm.
Pitfalls:
Can confuse or overwhelm customers.
Some people have trouble working in teams.
Hard to evaluate individual contributions.
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13. Successful Salespeople
Careful selection can greatly enhance overall sales force performance while minimizing costly turnover.
Key talents of successful salespeople:
Intrinsic motivation.
Disciplined work style.
Ability to close a sale.
Ability to build relationships with customers.
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14. Recruiting Salespeople
Recommendations from current sales force
Employment agencies
Classified ads
Searching the Web
College placement services
Recruit from other companies
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15. Sales Force Training Goals
Learn about different types of customers and their needs, buying motives, and buying habits.
Learn how to make effective sales presentations.
Learn about and identify with the company, its products, and its competitors.
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16. Compensating Salespeople
Fixed amount:
Salary
Variable amount:
Commissions or bonuses
Expenses:
Repays for job-related expenditures
Fringe benefits:
Vacations, sick leave, pension, etc.
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17. Supervising Salespeople
Goal of supervision is to encourage salespeople to “work smart.”
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
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18. Figure 13-2 How Salespeople Spend Their Time
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19. Motivating Salespeople
Goal of motivating sales force is to encourage salespeople to “work hard.”
Organizational climate.
Sales quotas.
Positive incentives:
Sales meetings
Sales contests
Recognition and honors
Cash awards, trips, profit sharing
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20. Sales Force Incentives
Marketing in Action
Sales Force Incentives
Many firms offer their sales forces cash, trips, and other incentives to motivate performance.
Salesdriver.com helps companies select and manage sales incentives.
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21. Sales Force Evaluation
Information about the sales force and its activities comes from:
Sales reports
Call reports
Expense reports
Management uses this information to evaluate the planning ability of individuals, and offers feedback as necessary.
The performance of the sales force as a whole is evaluated in terms of ROI.
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22. Figure 13-3 Major Steps in the Selling Process
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23. The Personal Selling Process
Prospecting:
The salesperson identifies qualified potential customers (called prospects).
Preapproach:
The salesperson learns as much as possible about a prospect 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.
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24. 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 & repeat business.
The selling process is transaction oriented; most firms go beyond this and attempt to build mutually profitable relationships.
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25. Marketing in Action
Technology in Selling
Today’s presentation technologies allow for full multimedia presentations to take the place of flip charts. Presentations can be launched from DVD, CD, the laptop hard drive, or a Web site, when using wireless connections.
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26. Let’s Talk!
How do the actions of the sales force and its use of technology contribute to building / maintaining customer relationships? Explain.
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27. Direct Marketing
Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
One-on-one communication in which offers are tailored to needs of narrowly defined segments.
Usually seeks a direct, immediate, and measurable consumer response.
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28. The New Direct Marketing Model
Some firms use direct marketing as a supplemental medium.
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 see this as the new marketing model of the next millennium.
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29. Benefits of Direct Marketing
Benefits to Buyers:
Convenient.
Easy to use.
Private.
Ready access to products and information.
Immediate and interactive.
Video Snippet
Moto, the Motorola brand cell phone, uses direct marketing as one method of communicating with consumers Branding is important.
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30. 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.
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31. Customer Databases
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.
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32. Figure 13-4 Forms of Direct Marketing
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33. Telemarketing Used in both consumer and B2B markets.
Can be outbound or inbound calls.
Inbound consumer telemarketing and outbound business-to-business telemarketing remain strong, despite DNC legislations.
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34. Telemarketing
Do-Not-Call legislation forbids most telemarketers to contact phone numbers that have been registered on its Web site.
Businesses that violate the DNC can be fined $11,000 per violation.
Learn more at:
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35. In-Bound Telemarketing
Marketing in Action
In-Bound Telemarketing
Marketers commonly use inbound toll-free numbers to handle orders from television and print ads, direct mail, or catalogues.
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36. Direct-Mail Marketing
Involves sending an offer, reminder, announcement, or other item to a person at a particular address.
Permits high target-market selectivity.
Can be personalized, and is flexible.
Higher CPM yields better prospects than mass media.
Easy to measure results.
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37. Catalog Marketing
More and more catalogs are going digital on the Internet.
Print catalogs are still the primary medium.
Expected catalog sales in = $175 billion.
Web catalogues have specific advantages and disadvantages when compared to printed catalogues.
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38. 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.
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39. Direct Response TV Marketing in Action
HSN – 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.
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40. Kiosk Marketing
Information and ordering machines generally found in stores, airports, and other locations.
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41. Let’s Talk!
Suppose that you were responsible for the fundraising activities of a charitable organization.
What type of direct marketing efforts would you use? Why did you select those forms?
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42. Figure 13-5 An Integrated Direct Marketing Campaign
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43. Public Policy and Ethical Issues in Direct Marketing
Irritating to consumers
Taking unfair advantage of impulsive or less sophisticated buyers
Targeting TV-addicted shoppers
Deception, fraud
Invasion of privacy
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44. Rest Area: Reviewing the Concepts
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.
Identify and explain the six major sales force management steps.
Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.
Define direct marketing and discuss its benefits to customers and companies.
Identify and discuss the major forms of direct marketing.
Copyright 2007, Prentice-Hall Inc.