Personal Selling and Direct Marketing

1. Personal Selling and Direct Marketing Chapter 17

2. Objectives • Understand the role of a company’s salespeople in creating value for customers and building customers relationships. • Understand the personal selling process, and how to distinguish between transaction-oriented marketing and relationship marketing.

3. Objectives • Know the six major sales force management steps. • Learn about direct marketing and its benefits to customers and companies. • Know the major forms of direct marketing.

4. Record-breaking earnings and sales growth Outstanding sales force; rated as one of America’s best. Sales force focuses on customer success Sales force is organized into separate divisions dedicated to specific customers Division platform teams work with customers and are linked to customer operations c Lear

5. What is Personal Selling? Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether: • face to face, • by telephone, • through video conferencing, • or by other means.

6. The Nature of Personal Selling • Involves an individual acting for a company by performing one or more of the following activities: • Prospecting, • Communicating, • Servicing, • Information Gathering. The term salesperson covers a wide spectrum of positions from: • Order Taking • Order Getting • Missionary Selling

7. The Role of the Sales Force • Personal Selling is effective because salespeople can: • - Probe customers to learn more about their needs • - Adjust the marketing offer • - Build long-term personal relationships The Sales Force serves as a critical link between a company and its customers since they: • Represent the company to customers • Represent customers to the company.

8. Step 1. Prospecting and Qualifying Steps in the Selling Process Step 2. Preapproach Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product “Story” to the Buyer, and Showing the Product Benefits. Step 3. Approach Step 4. Presentation/ Demonstration

9. Step 5. Handling Objections Steps in the Selling Process Step 6. Closing Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Asking the Customer for the Order. Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business. Step 7. Follow-Up

10. BusinessNow MarketSoft Video Clip Trade shows are often an excellent source of sales leads. Click the picture above to play video

11. Relationship Marketing • Process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. • Based on the idea that important accounts need focused and continuous attention.

12. But, All Accounts Are Not Created Equal! • Segmentation and Targeting!!! Intrinsic Value Buyers  Transactional Selling • Extrinsic Value Buyers  Consultative Selling • Strategic Value Buyers  Enterprise Selling

13. Definition • Sales Force Management • The analysis, planning, implementation, and control of sales force activities. It includes setting and designing sales force strategy; and recruiting, selecting, training, supervising, compensating, and evaluating the firm’s salespeople.

14. Designing Salesforce Strategy and Structure Recruiting and Selecting Salespeople Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople Managing the Salesforce

15. Setting Salesforce Strategy • Salesforce Structure • Salesforce Size • Salesforce Compensation

16. Types of Sales Force Structure Designing Sales Force Strategy and Structure Complex Combination of Above Types of Sales Force Structures Territorial Exclusive Territory to Sell the Company’s Full Product Line Product Sales Force Sells Along Product Lines Customer Sales Force Sells Along Customer/ Industry Lines

17. Sales Force Size Other Sales Force Strategy and Structure Issues Designing Sales Force Strategy and Structure Who Will Be Involved in the Selling Effort? Outside Sales Force Inside Sales Force How Will Sales and Sales Support People Work Together? Team Selling

18. Other Sales Force Strategy and Structure Issues Inside Sales Force Outside Sales Force Conduct Business From Their Offices Via Phone or Buyer Visits Travel to Call on Customers Sells to Major Accounts Finds Major New Prospects Technical Support People Sales Assistants Tele- Marketing Or Internet

19. to service large, complex accounts. Finds problems, solutions, and sales opportunities. Problems: can overwhelm customers, difficulties working with teams, evaluation of sales performance. Team Selling

20. Sales Force Size • one of a company’s most productive and expensive assets. • Sales forces have been shrinking in size because of: • Many companies use some form of workload approach to set sales force size: • Group accounts into different size classes, • How many people are needed to call on them.

21. Compensating Salespeople Sales Force Compensation Plans Can Both Motivate Salespeople and Direct Their Activities. Salary PAYCHECK Components of Compensation Benefits Bonus Commission

22. Recruiting and Selecting Salespeople Some Characteristics of Salespeople • Enthusiasm and Self-Confidence • Persistence • Initiative • Job Commitment Recruiting Procedures • Current Salespeople • Employment Agencies • Classified Ads • College Campuses Salesperson Selection Process • Sales Aptitude • Analytical & Organizational Skills • Personality Traits • Other Characteristics

23. Types of Salesperson - Recruitment Criteria • Order Takers • Can take orders, presentable, personable, high school education • Order Getters • good communicator, quick learner, persuasive, college graduate • Problem Solvers • quick learner, empathetic, technical background, college graduate

24. Help Salespeople Know & Identify With the Company Training Salespeople The Average Sales Training Program lasts for Four Months and Has the Following Goals: Learn How the Products Work Learn About Competitors’ and Customers’ Characteristics Learn How to Make Effective Presentations Understand Field Procedures and Responsibilities

25. U.S. companies spend more that $7 billion annually on training salespeople and devote more than 22 hours per year to the average salesperson.

26. Types of Salesperson - Training Objectives • Order Takers • teach operating procedures and standards, ensure good delivery • Order Getters • gain understanding of company products and related service requirements, teach selling methods, develop technical knowledge • Problem Solvers • gain full understanding of the customer's industry, acquire ability to develop custom-made solutions to fill customer needs

27. Supervising Salespeople Directing Salespeople Motivating Salespeople • Organizational Climate • Sales Quotas • Positive Incentives • Honors • Awards • Merchandise/ Cash • Trips • Identify Customer Targets • & Set Call Norms • Develop Prospect Targets • Use Sales Time Efficiently • Annual Call Schedule • Time-and-Duty Analysis • Sales Force Automation

28. How Salespeople Spend Their Time Administrative Service Calls Tasks Companies Look For Ways to Increase the Amount of Time Salespeople Spend Selling. 12.7% 16% Telephone Selling 25.1% Face-to-Face Selling 28.8% Waiting/ Traveling 17.4%

29. Evaluating Salespeople Expense Reports Sales Report Sources of Information Call Reports Work Plan Annual Territory Marketing Plan

30. Direct Marketing • Direct Marketing Benefits: Buyers • Convenient • Easy to use • Private • Access to a wealth of information • Immediate • Interactive

31. Direct Marketing • Direct Marketing Benefits: Sellers • building relationships • targeting of small groups or individuals with customized offers in a personalized fashion • access to buyers that couldn’t be reached via other channels • Low-cost, effective alternative for reaching specific markets

32. Direct Marketing • Customer Databases & Direct Marketing • Databases include customer profile, purchase history, and other detailed information • Databases can be used to identify prospects, profile customers, and select customers to receive offers, and to build relationships

33. Figure 17-4: Forms of Direct Marketing

34. Direct Marketing • Telephone Marketing • Inbound toll-free 800 numbers are used to receive orders from print or TV ads • New legislation and technological advances threaten the future of telemarketing

35. Direct Marketing • Direct-Mail Marketing • New trends include fax, mail, e-mail, and voice mail • Catalog Marketing • Many cataloguers have migrated to the web

36. Direct Marketing • Direct-Response Television Marketing • Direct-response advertising • Infomercials • Home shopping channels • Kiosk Marketing