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Instructor: Amir Ekhlassi
(8)Integrated Marketing Communication: Personal
Selling and Direct Marketing
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The Nature of Personal Selling Most salespeople are well-educated,
well-trained professionals who work to build and maintain long-term customer relationships.
The term salesperson covers a wide range of positions:
Order taker: Department store clerk Order getter: Creative selling in
different environments (industrial equipment, airplanes, insurance, consulting services)
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The Role of the Sales Force Personal selling is a paid, personal form of
promotion. Involves two-way personal
communication between salespeople and individual customers.
Salespeople: Probe customers to learn about
problems Adjust marketing offers to fit special
needs Negotiate terms of sales Build long-term personal relationships
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The Role of the Sales Force Sales Force serves as critical link
between company and its customers. They represent the company to the
customers They represent the customers to the
company Goal = customer satisfaction and
company profit
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Sale Force Structure Territorial: Salesperson assigned to
exclusive area and sells full line of products.
Product: Sales force sells only certain product lines.
Customer: Sales force organizes along customer or industry lines.
Complex: Combination of several types of structures.
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Inside Sales Force Conduct business from their offices
via telephone or visits from perspective buyers.
Includes: Technical support people Sales assistants Telemarketers
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Team Selling Used to service large, complex accounts. Can include experts from different areas
of selling firm. Pitfalls:
Can confuse or overwhelm customers Some people have trouble working in
teams Hard to evaluate individual
contributions (sticky compensation issues)
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Recruiting and Selecting Salespeople Key talents of salespeople:
Excellent listeners Intrinsic motivation Disciplined work style Ability to close a sale Ability to build relationships with customers
Costly turnover: 50000$ – 75000$: education cots + lost sales + …
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Recruiting Salespeople Recommendations from current sales force Employment agencies Classified ads Web searches College students Recruit from other companies
Recruiting test: Sales aptitude Analytical & Organizational skills Personality traits
Gillette : tests deuces 45% turnover
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Sales Force Training Goals Learn about and identify with the
company. Learn about the company’s products. Learn customers’ and competitors’
characteristics. Learn how to make effective
presentations. Learn field procedures and
responsibilities. Average training: 4 months
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Compensating Salespeople Fixed amount:
Salary Variable amount:
Commissions or bonuses Expenses:
Repays for job-related expenditures Fringe benefits:
Vacations, sick leave, pension, etc.
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Supervising Salespeople Directing Salespeople
Help them identify customers and set call norms. Specify time to be spent prospecting
Annual call plan Time-and-duty analysis (traveling, waiting, eating,
taking breaks,…) Sales force automation systems
More efficient order entry transaction Improved customer service Better salesperson decision – making support EX: Owen – corning : FSA (generic tools,
product info. , customer info.)
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Supervising Salespeople Motivating Salespeople
Organizational climate Sales quotas Positive incentives:
Sales meetings Sales contests Recognition and honors Cash awards, trips, profit sharing
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The Personal Selling Process Prospecting: The salesperson identifies
qualified potential customers.(customer referral)
Preapproach: The salesperson learns as much as possible about a prospective customer before making a sales call. (set call objective)
Approach: The salesperson meets the customer for the first time.(listening)
Presentation: The salesperson tells the “product story” to the buyer, highlighting customer benefits.
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The Personal Selling Process Handling Objections: The salesperson
seeks out, clarifies, and overcomes customer objections to buying. (logical, psychological)
Closing: The salesperson asks the customer for an order.(signals: physical actions, comments, questions)
Follow-up: The salesperson follows up after the sale to ensure customer satisfaction and repeat business.
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Note
Good Seller Bad Seller
EmpathyGood listeningHonestyDependabilityFollow through
PushyLateDeceitful Unprepared Disorganized
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Direct Marketing
Direct marketing consists of direct connections with carefully targeted
individual consumers to both obtain an immediate response and cultivate lasting
customer relationships.
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The New Direct-Marketing Model Some firms use direct marketing as a
supplemental medium. (Lexus) For many companies, direct marketing
constitutes a new and complete model for doing business.
Some firms employ the direct model as their only approach. (Dell, Amazon.com, eBay)
Some see this as the new marketing model of the next millennium. (Cisco systems, IBM)
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Benefits of Direct Marketing Benefits to Buyers:
Convenient Easy to use Private Ready access to products and
information Immediate and interactive
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Benefits of Direct Marketing Benefits to Sellers:
Powerful tool for building customer relationships
Can target small groups or individuals Can tailor offers to individual needs Can be timed to reach prospects at just the
right moment Gives access to buyers they could not reach
through other channels Offers a low-cost, efficient way to reach
markets
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Customer Databases An organized collection of comprehensive data
about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.
Past volumes & Prices Key contacts (ages, birthdays, hobbies,
favorites) Competitive supplier Status of current contracts (Ritz-Carlton Hotel: 500,000 customer
preferences; Pizza Hut: track 50M customer purchases)
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Telemarketing Accounts for more than 36% of all
direct-marketing sales. Used in both consumer and B2B
markets. Can be outbound or inbound (toll –
free 800)calls.
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Direct-Mail Marketing Involves sending an offer,
announcement, reminder, or other item to a person at a particular address.
Accounts for more than 31% of direct-marketing sales.
Permits high target-market selectivity.
Personal and flexible. Easy to measure results.
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Catalog Marketing
With the Internet, more and more catalogs going electronic.
Print catalogs still the primary medium. Harder to attract new customers with
Internet catalogs.
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Direct Response TV Marketing
Direct-response advertising
Infomercials
Home shopping channels
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Kiosk Marketing
Information and ordering machines generally found in stores, airports, and other locations.
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Public Policy and Ethical Issues in Direct Marketing
Irritation to Consumers Taking unfair advantage of impulsive
or less sophisticated buyers Targeting TV-addicted shoppers Deception, Fraud Invasion of Privacy
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Thank you for Your Patience & Attention