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The role of Personal Selling in Direct Sales Organizations. Thomas N. Ingram 1992. Jialin & Kewrin. The purpose of this article . The framework for defining the role of personal selling in direct sales organizations Marketing Developments Strategic roles of personal selling

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the purpose of this article
The purpose of this article

The framework for defining the role of personal selling in direct sales organizations

  • Marketing Developments
  • Strategic roles of personal selling
  • Personal selling tactical implications
marketing developments
Marketing developments
  • Market Fragmentation
  • Globalization
  • Multiple channels approaches
  • Timing & Speed
  • Trust- based Relationship Selling
marketing fragmentation
Marketing fragmentation

= to define market segments into sub-segments and it forces direct sales organizations to think about two basic options:

  • Ownership through leadership
  • Expeditionary marketing
expeditionary marketing
Expeditionary marketing
  • To lead and not to follow their customers in terms of new product ideas and the implementation of new ways for consumers to buy.
  • Example: Mary Kay cosmetics
globalization
Globalization
  • The personal selling dimension is particularly appropriate for the development of non-domestic markets when compared to other elements of the promotional mix
slide7
Example: Time life Books

Because of…..

  • the language barriers
  • cultural differences
  • ser-up time is minimal
  • sunk channel costs are low
multiple channel approaches
Multiple channel approaches
  • Market fragmentation and globalization
  • To make it easy for shoppers to buy where they want to
slide9
Mary Kay Cosmetics

-Direct mail

-Telephone ordering system

timing and speed
Timing and speed
  • The unexpected available Eastern market
  • The booming Asian market

example: Avon in 1985

trust basted relationship selling
Trust-basted relationship selling
  • Benefits for DSO
  • An important issue for sales success
  • Has to take responsibility for what transpires during the consumer and salesperson interactions
  • Has to invest in training and field guidance must be made
strategic roles of personal selling
Strategic roles of personal selling
  • Adding value with information
  • Customer service activities
  • Revenue generation
  • Change processes
corporate growth orientation and personal selling
Corporate growth orientation and personal selling
  • Intensive growth
  • Diversification growth
  • Acquisition
intensive growth
Intensive growth:
  • focuses on the development of existing business
  • extremely active sales function
  • the amount of selling effort should be intensified for existing products
  • training should be priority
  • motivational programs
generic strategy and personal selling
Generic strategy and personal selling
  • Low-cost supplier: selling on the basis of a low price
  • Differentiation: perceived uniqueness
  • Niche strategies: the selection of a particular target market
personal selling tactical implications
Personal selling tactical implications

Trust-based selling

“To achieve trust-based relationships with customers, salespeople must be candid, dependable, competent, customer-oriented, and likable (Hawes et al. 1989)”.

benefits of trust based selling for a direct sales force
Benefits of Trust-based selling for a direct sales force
  • The initial generation of profitable revenue
  • A potential lifetime revenue stream
  • The referral of prospects from the satisfied customer base.
trust based sales roles
Trust-based sales roles

Wrap-around marketing

“The customers must be pre-sold, sold, and then, in effect, post-sold”.

tactical roles
Tactical roles
  • Counselor/ teacher; experts, listeners and presenters
  • Ombudsman; customer oriented problem solver
conclusion
Conclusion

DS organizations are well-positioned:

  • to capitalize on fast developing and fragmenting markets
  • to realize the benefits of globalization
  • to blend multiple sales channels, with the possibility that personal selling could adopt different roles over time to match market opportunities
slide21
By focusing more on generating revenue through long-term trust-based relationships with customers
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