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Chapter 14

Integrated MarketingCommunications: Personal Sellingand Direct Marketing

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Road Map: Previewing the Concepts

Discuss the role of a companys salespeople in creatingvalue for customers and building customerrelationships.

Identify and explain the six major sales forcemanagement steps.

Discuss the personal selling process, distinguishingbetween transaction-oriented marketing andrelationship marketing.

Define direct marketing and discuss its benefits tocustomers and companies.

Identify and discuss the major forms of directmarketing.

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The Nature of Personal SellingMost salespeople are well-educated, well-trained professionals who work to build

and maintain long-term relationships withcustomers.

The term salespersoncovers a wide

spectrum of positions from:Order taker (department store salesperson)

Order getter (someone engaged in creative

selling i.e Lear Corporation)

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What did Robert Louis Stevenson meanwhen he said everyone lives by sellingsomething?

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The Role of the Sales ForceInvolves two-way, personal communicationbetween salespeople and individual customers.

Personal selling is effective because salespeoplecan:

probe customers to learn more about their problems,

adjust the marketing offer to fit the special needs of

each customer,

negotiate terms of sale, and

build long-term personal relationships with key decisionmakers.

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The Role of the Sales Force

Sales ForceServes as a Critical Link

Between a Company and its Customers Since They:

Represent Customers tothe Company to Produce

Customer Satisfaction

Represent the Companyto Customers to Produce

Company Profit

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Major Steps in Sales Force

Management (Fig. 14-1)

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TerritorialExclusive Territory to Sell theCompanys Full Product Line

CustomerSales Force Sells Only to Certain

Customers or Industries

ProductSales Force Sells Only a Portion ofThe Companys Products or Lines

Designing Sales Force Strategy and

StructureComplexForms Are aCombination of AnyTypes of Sales Force

Structures

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Inside SalesForce

Outside SalesForce

Travel to Call onCustomers

Sells toMajor

Accounts

Finds MajorNew

Prospects

Conduct Business From TheirOffices Via Phone/Buyer Visits

TechnicalSupportPeople

Tele-Marketer

&Internet

Other Sales Force Strategy and

Structure Issues

SalesAssistants

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Team SellingUse team selling toservice large, complexaccounts.

Team finds problems,solutions, and salesopportunities.

Problems: canoverwhelm customers,difficulties workingwith teams, evaluationof sales performance.

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Some Traits of Good Salespeople

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Salespeople from Other Companies

College Students

Search the Web

Classified Ads

Employment Agencies

Current Salespeople

Recommendations for Recruiting

Salespeople

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Help Salespeople Know &

Identify With the CompanyLearn About the Products

Learn About Competitorsand Customers Characteristics

Learn How to MakeEffective Presentations

The Average Sales Training Program lasts for Four Monthsand Has the Following Goals:

Training Salespeople

Understand Field Proceduresand Responsibilities

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Fixed

Amount:

Usually a

Salary

Variable

Amount:

Usually

Commissions

Or Bonuses

To Attract Salespeople, a Company Must Have

an Attractive Plan Made Up of Several Elements

Expense

Allowance:

For Job-

Related

Expenses

Compensating Salespeople

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Supervising Salespeople

Directing Salespeople

Identify Customer Targets& Call Norms

Time Spent Prospecting forNew Accounts

Use Sales Time Efficiently

Annual Call Plan Time-and-Duty Analysis

Sales Force Automation

Motivating Salespeople

Organizational Climate

Sales Quotas

Positive Incentives

Sales Meetings

Sales Contests

Honors and Trips

Merchandise/Cash

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How Salespeople Spend Their

Time (Fig. 14-2)

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Major Steps in Effective Selling

(Fig. 14-3)

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ProspectingSalesperson Identifies Qualified

Potential Customers.

Preapproach

Salesperson Learns About a

Prospective Customer BeforeMaking a Sales Call.

QualifyingProcess of Identifying Good

Prospects and Screening Out PoorOnes.

Steps in the Selling Process

ApproachSalesperson Meets the Buyer and

Gets the Relationship Off to aGood Start.

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PresentationSalesperson Tells the Product

Story to the Buyer Showing How

the Product Solves Problems.

Closing Salesperson Asks the Customer foran Order.

HandlingObjections

Salesperson Seeks Out, Clarifies,and Overcomes Customer

Objections to Buying.

Steps in the Selling Process

Follow-UpOccurs After the Sale and EnsuresCustomer Satisfaction and Repeat

Business.

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What is Relationship Marketing?

Relationship Marketing EmphasizesMaintaining Profitable Long-TermRelationships with Customers byCreating Superior Customer Value

and Satisfaction.

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Form students into groups of three tofive. Each group should answer thefollowing questions:

Explain the meaning of relationshipmarketing.

Describe how relationship marketing mightbe used in selling a new car.

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Most Mass MarketingInvolves One-Way

CommunicationsAimed At Consumers.

Mass Marketing and Direct

Marketing

Direct MarketingInvolves Two-WayInteractions With

Customers.

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The New Direct Marketing ModelSome firms use direct marketing as asupplemental medium.

For many companies, direct marketingespecially Internet and e-commerce companiesconstitutes a new and complete model for doingbusiness.

Some firms use the new direct model as theironly approach.

New marketing model of the next millennium.

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Benefits and Growth of Direct

MarketingBenefits to Buyers

Convenient

Easy to use

Private

Product access andselection

Abundance ofinformation

Immediate

Interactive

Benefits to Sellers

Consumer

relationship buildingReduces costs

Increases speed andefficiency

Provides flexibility

Global medium

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Customer Databases and

MarketingCustomer Databases arean Organized Collection

of Comprehensive DataAbout IndividualCustomers or Prospects.

Allows companies to

offer fine-tunedmarketing offers andcommunications tocustomers.

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Forms of Direct Marketing

(Fig. 14-4)

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Forms of Direct MarketingTelephone Marketing

Represents 36% of

direct marketing sales.Outboundtelephonemarketing sells directlyto customers.

Inboundnumbersprovide a toll-freenumber to receiveorders.

Direct-Mail MarketingRepresents 31% of

direct marketing sales.High target-marketselectivity.

Personalized & flexible.

Allows easymeasurement ofresults.

Fax mail, e-mail, voicemail are now popular

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Forms of Direct MarketingCatalog Marketing

Sales expected toexceed $94 billion by

2002.Printed, sellingmultiple products,offering directordering mechanism.

Printed catalogsremain the primarymedium, but manyare now electronic.

Direct-Response TVMarketing

Direct-response advertising

marketers air TV spots orinfomercials.

Home shopping channelsentire programs or channelsdedicated to selling goods and

services.

Kiosk Marketing

Placing information andordering machines at variouslocations.

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George Foremans Lean Mean

Fat-Reducing Grilling MachineCurrent infomercialchamp George

Foreman!Selling for 3 easypayments of $19.95(plus shipping &

handling).Totaled almost $400million in sales lastyear.

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An Integrated Direct-Marketing

Campaign (Fig. 14-5)

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Irritationto

Consumers

Unfairness,

Deception,or

Fraud

Invasionof

Privacy

Public Policy and Ethical Issues

in Direct Marketing

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Rest Stop: Reviewing the Concepts

Discuss the role of a companys salespeople in creatingvalue for customers and building customerrelationships.

Identify and explain the six major sales forcemanagement steps.

Discuss the personal selling process, distinguishingbetween transaction-oriented marketing andrelationship marketing.

Define direct marketing and discuss its benefits tocustomers and companies.

Identify and discuss the major forms of directmarketing.