1. Personal Selling, Sales Management and Direct Marketing
Chapter 14
Personal Selling, Sales Management and Direct Marketing

2. Chapter Objectives
Understand the important role of personal selling and how it fits into the promotion mix
Discuss what professional selling is all about
Describe two approaches to personal selling
List the steps in the personal selling process (PSP)
Explain the role of sales management
Understand the elements of Direct Marketing
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

3. PERSONAL SELLING Your Exposure to Salespeople
Q. What positive and negative opinions do you have about salespeople?
Q. How did you form your opinion of salespeople?

4. Personal Selling
Personal selling: When a company representative interacts directly with a prospect or customer to communicate about a good or service
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5. Approaches to Personal Selling
Transactional selling: A form of personal selling that focuses on making an immediate sale with little or no concern for developing long-term customer relationships
Associated with high-pressure, hard sell tactics (old school!)
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6. Approaches to Personal Selling
Relationship selling Process of building long-term customers by developing mutually satisfying, win-win relationships with customers
Builds customer loyalty and satisfaction
Business Week magazine’s online “Savvy Selling” section offers weekly podcasts that feature tips on how to improve sales performance. As many students own iPods or have access to Apple Tunes, it might be nice to visit the site below if you feel some students would be interested in subscribing to the podcast series:
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

7. Professional Personal Selling Today
2/3 of all sales are repeat orders from loyal customers
Professionalism is required
Trust must be earned
Customers are more demanding: Better, faster, cheaper, more unique, more attention, more responsive
Customers have more alternatives: Overseas, Internet
Since selling hinges upon building relationships, everyone in a company is engaged in selling
Relationships, even friendships, are established between seller and buyer – tricky stuff!

8. The Extent of Personal Selling
Example: A customer purchases an ugly yellow Izod polo shirt at Belk:
The sale at Belk to the customer
The sale from Izod to Belk
The sale from a shirt wholesaler in the U.S. to Izod
The sale from a shirt wholesaler in China to a shirt wholesaler in the U.S.
The sale from a shirt manufacturer in China to a shirt wholesaler in China
The sale of fabric from a textile mill in China to a shirt manufacturer in China.

9. What Does a Salesperson Do?
Creates new customers
Sells more to current customers
Builds long-term relationships
Provides solutions to customer’s problems
Provides service to customers
Helps customers resell products to their customers
Helps customers use products after purchase
Builds goodwill with customers
Provides company with market information

10. Salespeople Need to Have Personal Characteristics That Allow Them To:
Care for their customers
Take joy in their work
Find harmony in the sales relationship
Have patience in closing the sale
Have high moral ethics
Are faithful to one’s word
Are fair in selling
Are self-controlled in emotions

11. Benefits Of Professional Personal Selling As A Career
Financial rewards – $’s can be huge; bonuses and commissions = true pay for performance
Perks – entertainment, meals, cars, unique opportunities, contest winnings
Visibility – top salespeople are known throughout an organization
Mobility – skills are transferable within and across industries and job types

12. Benefits Of Professional Personal Selling As A Career
Job security – less vulnerable to down-sizing than most other professions
Job freedom and independence – self-managed, flexible schedules, own style, not routine
Job satisfaction – Feels great to “solve problems” all day
Contribution to society – help people learn about and satisfy their needs and wants; expose people to new products; demonstrate ethical conduct

13. Everybody Sells!
Each of us develops communication techniques for trying to get our way in life
You are involved in selling when you want someone to do something and attempt to persuade them
Getting candy
Getting a job
Getting a date

14. The Personal Selling Process
Personal Selling Process (PSP)—the seven interacting, overlapping stages that every professional salesperson, no matter what the product or service being sold, must carry out.

15. The Personal Selling Process (PSP)

16. PSP Continued Prospecting and Qualifying
Leads: the name and address or telephone number of a person or organization that may have a need for the company's product or service.
Qualifying – determining if a lead has
(1) Need or want
(2) Authority to buy
(3) Money to buy
(4) Eligibility to buy
If a lead meets all 4 requirements, they become a prospect (= a potential new customer)

17. PSP Continued Planning the Sales Call (Pre-approach)
Salesperson obtains detailed information about the prospective buyer and the buying situation, then develops a strategy for ensuring a favorable reception
Approaching the Prospect
The salesperson makes the first face-to-face contact and the vital first impression

18. PSP Continued 4. Making the Sales Presentation & Demonstration
The sales presentation is given combined with a convincing product demonstration tailored to the prospect to favorably influence the outcome of the sales call
Negotiating Sales Resistance or Objections
Objections or resistance should be viewed as requests for more information so that the prospect can make a purchase decision

19. PSP Continued Closing the Sale Follow-up and Servicing the Account
Reaching agreement verbally on contractually on what the terms of sale are. Trial close - any well-placed attempt to close the sale
Follow-up and Servicing the Account
Working with the customer after the sale, with the primary goal of advancing the "partnership" or long-term relationship with the customer

20. Sales Management
Sales management - Process of planning, implementing, and controlling the personal selling function of an organization
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

21. Figure 14.2 The Sales Management Process
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

22. Sales Management Process
1. Setting sales force objectives
Objectives state what the sales force is expected to accomplish and when
May be stated in terms of sales, revenues, customer satisfaction, loyalty, retention/turnover, or even community involvement
Individual objectives may be performance- or behavior-based
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

23. Sales Management Process
2. Creating a sales force strategy
Setting sales territories is a major responsibility; may be broken down by
Geography
Product lines
Key/major accounts
The textbook states that “A key contributor to the success of a sales force is to keep salespeople in front of customers as much of the time as possible,” and points to video conferencing as an example of how technology has actually helped to cut down on non-selling activities.
A nice way of generating discussion could be to ask students for other examples of how technology is helping sales people become more efficient, thereby making more time available for selling activities. Hopefully, students will recall earlier discussions of CRM software and relate this tool to time savings that result from more efficient recordkeeping, client database management, and report generation for supervisors. Another example could include (less time spent playing telephone tag).
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

24. Sales Management Process
3. Recruiting, Training, and Rewarding
Recruit people with good listening and follow-up skills, who are adaptable, tenacious, and organized
Sales training: Teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed
Reward using ideal combination of salary, commission, bonus, contests, and perks
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

25. Sales Management Process
4. Evaluating the sales force
Is the sales force meeting its objectives?
What are possible causes of failure?
Individual performance is measured against quotas and/or peers
Expense accounts for entertainment and travel may also be monitored
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

26. Direct Marketing
Direct Marketing (DM) is an interactive system of marketing that uses one or more advertising media to effect a measurable customer response to readers/listeners/viewers and stores information about that response in a database.
Contemporary Direct Marketing - Chapter 01

27. System of Marketing – see next slide
DM is an interactive system of marketing that uses one or more advertising media to effect a measurable customer response to readers/listeners/viewers and stores information about that response in a database.
System of Marketing – see next slide
Uses one or more advertising media – such as direct mail, catalogs, , ads, or websites
Effect a customer response – order, inquiry, or store traffic
To readers/listeners/viewers – aka “mailing lists”
Stores info in a database – which in turn is used to segment, target, and promote to individual customers
Interactive – communication with customer  response  info stored  additional communication with customer 
Contemporary Direct Marketing - Chapter 01

28. The Direct Marketing Cycle
Database
Marketer
Direct Response Communication
Response
and/or
Transaction
Customer Service/
Fulfillment
Target
Customer

29. Characteristics of Direct Marketing
Customer/prospect databases that make targeting possible
Ongoing relationships with customers
Data-based market segmentation
Measurement of results and accountability for costs
Interactivity
Multi-media promotion
Multi-channel distribution
Viewing customers as assets with lifetime value (LTV)

30. Comparison Between Direct & Traditional Marketing
Direct Marketing
Traditional Marketing
Direct selling to individuals with customers identifiable by name, address and purchase behavior
Mass selling with buyers identified as broad groups sharing common demographic and psychographic characteristics
Products have the added value of distribution direct to the customer, an important benefit
Product benefits do not typically include distribution to the customer’s door
The medium (website, ad, mailer) is the marketplace
The retail outlet is the marketplace
The marketer controls the product all the way through delivery
The marketer typically loses control as the product enters the distribution channel
Advertising is used to generate an immediate response… an inquiry, a store visit or an order
Advertising is used for cumulative effect over time for building image, awareness, loyalty and benefit recall in addition to purchasing.
Repetition of offers, promotional messages, toll-free numbers and web addresses are used within the advertisement
Repetition of offers and promotional messages are used over a period of time
Customer feels a high perceived risk – product bought unseen, recourse is distant
Customer feels less risk – has direct contact with the product and direct recourse

31. Types of Direct Marketing
Catalogs
Direct Mail
(“blasts”)
Telemarketing
Broadcast media including Infomercials
M-Commerce: Promotional and other e-commerce activities transmitted over mobile phones/devices
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall