MGT301 Principles of Marketing Lecture-35

Summary of Lecture-34

Media Scheduling

Step 1. Decide on Reach, Frequency, and Impact Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Step 3. Selecting Specific Media Vehicles Step 4. Deciding on Media Timing

Evaluating Advertising Effectiveness

Communication Effects Is the Ad Communicating Well? Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Sales Effects Is the Ad Increasing Sales?

Sales Promotion

Major Consumer Sales Promotion Tools

Major Trade Sales Promotion Tools

Developing the Sales Promotion Program

Decide on the Size of the Incentive Set Conditions for Participation Evaluate the Program Determine How to Promote and Distribute the Promotion Program Determine How to Promote and Distribute the Promotion Program Determine the Length of the Program

Today’s Topics

Personal Selling Today’s Topics

Personal selling The direct presentation of a product to a prospective customer by a representative of the selling organization. Personal selling is the personal communication of information to persuade somebody to buy something.

Personal Selling occurs when a company representative comes in direct contact with a customer in order to inform a client about a good or service to get a sale. Especially important for business-to-business marketers since products and services are complex and expensive.

In many companies, personal selling is the largest single operating expense. Personal selling is likely to be emphasized in a promotional mix when:

 The market is concentrated.  The product has a high unit value, is technical in nature, and requires a demonstration.  The product can be tailored to an individual customer’s need.  The product is in the introductory stage of the product life cycle.

 The product can be tailored to an individual customer’s need.  The product is in the introductory stage of the product life cycle.

How?

 Person-to-person dialogue  Between prospective buyer and the seller  Direct human contact  Matching products to needs How?  Involves… developing relationships  discovering and communicating customer needs  communicating benefits

 Involves… developing relationships  discovering and communicating customer needs  communicating benefits

The characteristics of personal selling

Flexibility  Identify specific sales prospects  Adaptation to specific situations  Answer questions  Overcome objections

Builds Relationships  Managing the account relationship and assuring the buyers receive appropriate services  Salesperson understands and solves buyer’s problems

Supporting Order-Taking Order-Getting Basic Sales Tasks

Order Getting  Creative selling  More time consuming  Sell to new prospects (pioneers)  Sell to continuing customers (account managers)  Some use of telemarketing, particularly to small accounts

Seek out customers Seek out customers Analyze their problems Analyze their problems Discover solutions Discover solutions Sell solutions to customers Sell solutions to customers Ordergetting

Order Taking  Do very little creative selling  Write up orders  Check invoices for accuracy  Assure timely order processing  May use suggestive selling

The advantages of personal selling over the other promotion tools…

 It can be adapted for individual customers.  It can be focused on prospective customers.  It results in the actual sale, while most other forms of promotion are used in moving the customer closer to the sale. The advantages of personal selling over the other promotion tools…

The disadvantages of personal selling

 Expensive per contact  Many sales calls may be needed to generate a single sale  Labor intensive The disadvantages of personal selling  It is costly to develop and operate a sales force.  It may be difficult to attract high-caliber people.

 It is costly to develop and operate a sales force.  It may be difficult to attract high- caliber people.

The customers come to the salespeople. The customers come to the salespeople. –Mostly involves retail-store selling. –Most salespeople fall into this category. The salespeople go to the customers. The salespeople go to the customers. –Usually represent producers or wholesaling middlemen and sell to business users. –Some outside selling is relying more on telemarketing. The two types of personal selling

Customers come to The sales people Customers come to The sales people Inside selling: across-the-counter; phone-in orders Inside selling: across-the-counter; phone-in orders Primarily retail store selling Primarily retail store selling

Sales force goes to The customers Sales force goes to The customers In-person sales calls In-person sales calls Inside sales people contact by mail or telemarketing Inside sales people contact by mail or telemarketing Primarily producers and wholesaling middlemen selling to business users, but also some: Producers Household consumers Retailers Household consumers Primarily producers and wholesaling middlemen selling to business users, but also some: Producers Household consumers Retailers Household consumers

Sales Support New Business Business-to-Business Existing Business Existing Business Retail Sales Direct Selling Representatives Direct Selling Representatives Direct-to-Consumers Professional Services Professional Services

Characteristics of Professional Selling

 Sales reps engage in a total selling job.  Reps work closely with customers.  Sales reps organize much of their own time and effort.  They often experience role ambiguity and role conflict. Characteristics of Professional Selling

Contributions of Personal Selling to Marketing

Producing Sales Revenue Producing Sales Revenue Meeting Buyer Expectations Meeting Buyer Expectations Providing Marketplace Information Providing Marketplace Information

 Traditionally, personal selling has been a face-to-face, one-on-one situation.  Five new patterns are emerging: –Selling Centers — Team Selling –Systems Selling –Global Sales Teams –Relationship Selling –Telemarketing Changing patterns in personal selling

Salesperson Attributes

Competent Likable Customer- Oriented Customer- Oriented Dependable Honest

Salesperson An individual acting for a company by performing one or more of the following activities:  Prospecting,  Communicating,  Serving, and  Information gathering.

Salespeople Salespeople Sales representatives Sales representatives Account executives Account executives Sales consultants Sales consultants Sales engineers Sales engineers Agents Agents District managers District managers Marketing representatives Marketing representatives Account development reps Account development reps Etc. Etc.

Enough for today...

Summary

Personal Selling Summary

Personal selling is the personal communication of information to persuade somebody to buy something.

Basic Sales Tasks

Supporting Order-Taking Order-Getting Basic Sales Tasks

The customers come to the salespeople. The customers come to the salespeople. –Mostly involves retail-store selling. –Most salespeople fall into this category. The salespeople go to the customers. The salespeople go to the customers. –Usually represent producers or wholesaling middlemen and sell to business users. –Some outside selling is relying more on telemarketing. The two types of personal selling

Next…. Sales Force Management

MGT301 Principles of Marketing Lecture-35