1. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 1 Part 3: The marketing mix Chapter 16: Sales marketing Step 5: Design the marketing strategy

2. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 2 When we finish this lecture you should Understand the importance and nature of personal selling Understand the relationship between personal selling and promotional strategy Understand the elements of the personal selling process Know what tasks the sales manager must perform to manage the personal selling function Understand how an appropriate compensation plan can help motivate and control salespeople Understand when and where, to use the three types of sales presentation Appreciate the importance of providing good customer service Appreciate the importance of building long-term customer relationships

3. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 3 The personal selling role Often the single largest operating expense 1 out of 10 in the labour force is in sales work Increasing professionalism – Good selling means helping the customer to buy – Represent both organisation and customer – Market information – Planning strategy and allocating effort

4. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 4 Please insert Fig 16.1

5. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 5 Please insert Exhibit 16.1

6. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 6 Basic sales tasks Supporting Order Taking Order Getting Sales job may involve a blend of sales tasks PLEASE REPLACE WTH FIG 16.2 OVER A COUPLE OF SLIDES

7. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 7 Supporting Salespeople MISSIONARY SALESPEOPLE – Supporting salespeople who work for producers, calling on their intermediaries and the intermediaries' customers TECHNICAL SPECIALISTS – Supporting salespeople who provide technical assistance to order-oriented salespeople

8. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 8 Target markets Customers often divided into types Specialist sales people cater for different areas Customers with large orders often require special selling effort

9. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 9 Sales Territory A geographic area that is the responsibility of one or more salespeople. Bases for setting sales territories – Geographic areas – Customer types – Account size – Products to be sold – Any combination of the above

10. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 10 Telemarketing Using the telephone to "call" on customers or prospects Rapidly growing in popularity Reduces travel time and expense Especially useful for small accounts of less expensive products Often used to identify good prospects Typically uses a prepared sales presentation

11. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 11 Please insert Fig 16.3

12. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 12 Please insert Exhibit 16.3a

13. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 13 Please insert Exhibit 16.4

14. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 14 Salespeople Selection and Training A written job description lays the ground work—by specifying what tasks the salesperson needs to be able to do Commonly used selection tools are best when used in combination: – multiple interviews with several different people – personnel and psychological tests – background checks Initial and on-going training can help both experienced and inexperienced salespeople – company policies and practices – product information – selling techniques (and customer knowledge)

15. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 15 Sales Compensation depends on desire for: Control Incentives Flexibility Simplicity

16. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 16 Selling Compensation Alternatives Straight commission Combination plan Straight salary Sales volume Total selling expense PLEASE REPLACE WITH FIG 16.4

17. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 17 Key Steps in Personal Selling Process Prospecting Follow-up After the Sales Call Select Target Customer Plan Sales Presentation - prepared presentation - need satisfaction approach - selling formula approach Make Sales Presentation - create interest - meet objections - arouse desire Close Sale (get action) Follow-up After the Sale Set Effort Priorities PLEASE REPLACE WITH FIG 16.5

18. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 18 Sales Presentations The salesperson's effort to make a sale should be carefully planned Three basic approaches – prepared ("canned") sales presentation – consultative selling approach – selling formula approach

19. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 19 Need-satisfaction approach to sales presentations Prepared approach to sales presentations Selling-formula approach to sales presentations r i Time P a t i c i p a t o n Salesperson Customer Time P a r t i c i p a t i o n Salesperson Customer Time P a r t i c i p a t i o n Salesperson Customer PLEASE REPLACE WITH FIG 16.6-16.8

20. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 20 Please insert Exhibit 16.7

21. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 21 The GAPs Model of Service Quality Product and service Products and service delivery Products and service delivery Product and service Customer-driven product and service designs and standards Customer-driven product and service designs and standards Company perceptions of customer expectations Company perceptions of customer expectations External communications to customers External communications to customers CUSTOMER COMPANY Gap 2 Gap 3 Gap 5 Gap 4 PLEASE USE FIG 16.9

22. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 22 Actions taken by Consumers in response to Product Dissatisfaction Dissatisfaction occurs Dissatisfaction occurs Take action Take no action Take some form of private action Take some form of private action Take some form of direct action Take some form of direct action Take some form of public action Take some form of public action Stop buying that product/ brand/store Stop buying that product/ brand/store Warn friends about product/ brand/store Warn friends about product/ brand/store Complain to manufacturer/ retailer Complain to manufacturer/ retailer Seek redress from business Seek redress from business Take legal action to obtain redress Take legal action to obtain redress Complain to private or governmental agencies Complain to private or governmental agencies PLEASE REPLACE WITH FIG 16.10

23. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 23 Relationship Marketing Places particular emphasis on long-term customer satisfaction Involves focused selection of specific customers and prospects Comprises strategies to build and develop long-lasting and profitable relationships with these customers Recognises that many sales situations require more than just a single business transaction

24. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 24 Please insert Exhibit 16.9

25. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing 4/e by Quester, McGuiggan, Perrault and McCarthy 25 What we will be doing in the next chapter In the following chapter we will be discussing implementation and control of the planning process We will cover – The importance of forecasting in the planning process – Why effective implementation is critical to customer satisfaction and the achievement of corporate goals – How planning and control can be combined to improve the marketing management process