Personal Selling, Sales Management, &

Direct Marketing

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Chapter Objectives

• role of personal selling within the promotion mix

• steps in personal selling process

• role of the sales manager

• direct marketing

SELLING

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Personal Selling

• when a company representative

• interacts directly

• with a (prospective) customer

• to communicate

• about a good or service

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Personal Selling

• Personal touch” is more effective than mass-media appeal.

• Selling/sales management

• jobs provide high mobility, especially for college grads with marketing background.

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The Role of Personal Selling

• Personal selling is more important: --when firm uses push strategy.--in B2B contexts. --with inexperienced consumers • who need hands-on assistance.

--for products bought infrequently • (houses, cars, computers).

• Cost per contact is very high.

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Technology and Personal Selling

• Customer relationship management (CRM) software

• partner relationship management (PRM)

• Teleconferencing, • Video-conferencing, • Improved corporate Web sites• Voice-over Internet protocol • Assorted wireless technologies

SALESFORCE.COM

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Types of Sales Jobs

• Order taker Facilitate transactions tha the customer initiates

• Technical specialist High skilled technical expertise who assist in product demonstration

• Missionary salesperson Promotes firm and (stimulate clients (demand) to buy)

• New-business salesperson Cold calls, breaking in new territory Finding new customers and calling them to present the company products

• order getter Salesperson who works to develop long term relationship with customer /

generate sales

• Team selling & cross-functional team Sales function by team consist sales person, technical specialist and others

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Approaches to Personal Selling

• Transactional selling: Putting on the hard sellHigh-pressure processfocuses on immediate sales no concern for developing

long-term customer relationship

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Approaches to Personal Selling (cont’d)

•Relationship sellingProcess of building long-term customers

by developing mutually satisfying, win-win relationships with customers

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Creative selling Process

• Makes positive transactions happen

• Series of activities

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Figure 14.1: Steps in Creative Selling Process

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The Creative Selling Process

• Step 1: Prospecting and qualifying--Prospecting:

• developing a list of potential customers

--Qualifying: • determining how likely potential customers are to

become customers

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The Creative Selling Process (cont’d)

• Step 2: Pre-approachCompiling prospective customers’

• background information

planning the sales interview

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The Creative Selling Process (cont’d)

• Step 2: Pre-approachPurchase history, current needs, customer’s interests

From • informal sources, • CRM system, • customers’ Web sites, • and/or business publications

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The Creative Selling Process (cont’d)

• Step 3: ApproachContacting the prospectLearning prospect’s needs, create a good impression, build rapport

• “You never get a second chance to make a good first impression.”

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The Creative Selling Process (cont’d)

• Step 4: Sales presentationbenefits & added value

• of product/firm

advantages over competitionInviting customer involvement

• in conversation

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Step 5: Handling Objections

• Anticipating why prospect is reluctant to make a commitment

• Welcoming objections

• Handling objections successfully to move prospect to decision stage

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Step 6: Closing the Sale

• Gaining the customer’s commitment • in the decision stage

--Last-objection close

--Assumptive close

--minor-points close

--Standing-room-only close

--buy-now close

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Step 7: Follow-Up

• Arranging for delivery, Ensuring sure customer received delivery and is satisfied

• PaymentCredit, factors, etc.

• purchase terms•Bridging to next purchase

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Figure 14.2: The Sales Force Management Process

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Sales Management: Sales force objectives

• What sales force is expected to accomplish and when

Customer Satisfaction

Loyalty

Retention / turnover

New customer development

New product suggestions

Training

Reporting on competition

Community involvement

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Creating a Sales Force Strategy

• Establishing structure and size of a firm’s sales force

• Sales territory: a set group of customersGeographic sales force structureProduct-class sales territoriesIndustry specializationkey/major accounts

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Recruiting, Training, & Rewarding

• Recruiting the right peopleGood listening and follow-up skillsadaptive style

• from situation to situation

TenacityHigh level of personal organization

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Recruiting, Training, & Rewarding

• Sales training:

• teaches salespeople about firm,

• its products,

• how to develop skills,

• knowledge, and

• attitudes to succeed

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Recruiting, Training, and Rewarding

• Paying salespeople well to motivate themStraight commission plan Commission-with-draw plan Straight salary plan

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Recruiting, Training, and Rewarding

• Running sales contests for short-term sales boost

• Call reports: which customers were called on and how call went

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Evaluating the Sales Force

• Is sales force meeting its objectives?• What are possible causes of failure?

Measuring performance

Monitoring expense accounts

for travel and entertainment

DIRECT MARKETING

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Direct Marketing

• Any direct communication to a consumer or business recipient

• designed to generate a response

DIRECT MARKETINGASSOCIATION

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Direct Marketing

• Response: • in the form of an

order, request for further information, a visit to a store

• other place of business

• for purchase of a product

DIRECT MARKETINGASSOCIATION

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Direct Marketing: MAIL ORDER

• Catalogs: collection of products

• offered for sale

described in book form, product descriptions and photos

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Direct Marketing: MAIL ORDER

• Direct mail: brochure/pamphlet offering a specific good/service at one point in time

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Direct Marketing: telemarketing

• conducted over the telephoneMore profitable for business

• than consumer markets

In 2003, FTC established: • National Do Not Call registry

FEDERAL DO NOT CALL REGISTRY

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Direct Marketing (cont’d)

• Direct-response advertising:

• allows consumer to respond

• by contacting the provider

• with questions or an order

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Direct Marketing (cont’d)

• Direct-response TV (DRTV): • short commercials, • 30-minute+ infomercials, • home shopping networks

–HSN–QVC–Jewelry television–ShopNBC–Gemtv

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Direct Marketing (cont’d)

• M-Commerce: • promotional & other e-commerce activities

• transmitted over mobile phones/devices

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Direct Marketing (cont’d)

• M-Commerce: (SMS)

• Short-messaging system marketing

Spim: • instant-messaging version of spam

Adware: • software that tracks Web habits/interests, • presenting pop-up ads• resetting home page

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THE END

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Group Activity

• Your group are field salespeople for a firm that markets university textbooks.

• As part of your training, your sales manager asks you to outline what you’ll say in a typical sales presentation.--Write that outline.

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Discussion

• Will sales training and development needs vary based on how long salespeople have been in the business? Why or why not?

• Is it possible (and feasible) to offer different training programs for salespeople at different career stages? Why or why not?

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Discussion

• Based on the compensation figures in the chapter, do you think professional salespeople are appropriately paid? Why or why not?

• What do salespeople do that warrants the compensation indicated?

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Discussion

• M-commerce allows marketers to pinpoint where consumers are and send them messages about a local store. --Do you think consumers will respond positively to m-

commerce? --What benefits do you think it offers them?