One to One Trade Promotion, Direct Marketing, and Personal Selling Week 7 © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Chapter Objectives Identify the sales promotion elements for B2B Understand the elements of direct marketing Appreciate the important role of personal selling and how it fits into the promotion mix Identify the different types of sales jobs List the steps in the creative selling process Explain the role of sales management © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Real People, Real Choices: Decision Time at Woodtronics Which strategy should Jeffrey pursue? Option 1: Push the original solution, even though it is not the best thing for the client Option 2: Convince the client of Evolution’s price and functionality superiority Option 3: Attempt to raise the architect’s comfort level with Evolution and hope he will recommend it to the client © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Trade Sales Promotion: Targeting the B2B Customer Discount promotions: Allowances, discounts, and deals Merchandising allowances Case allowances Co-op advertising Promotions that increase industry visibility: Trade shows Promotional products Point-of-purchase (POP) displays Incentive programs © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Direct Marketing Direct marketing Any direct communication to a consumer or business recipient designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Direct Marketing Mail order: Catalogs: Collection of products offered for sale and described in book form, usually consisting of product descriptions and photos Direct mail: A brochure/pamphlet offering a specific good/service at one point in time © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Direct Marketing Telemarketing: Direct marketing conducted over the telephone Direct-response advertising: Allows consumer to respond by immediately contacting the provider with questions or an order Direct-response TV (DRTV) Infomercials © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Direct Marketing M-Commerce: Promotional and other e-commerce activities transmitted over mobile phones/devices Short-messaging system marketing (SMS) © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Personal Selling: Adding the Personal Touch to the Promotion Mix Personal selling: Occurs when a company representative interacts directly with a prospect or customer to communicate about a good or service “Personal touch” helps develop relationships Sales jobs provide high mobility, especially for college grads with marketing backgrounds © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

The Role of Personal Selling in the Marketing Mix Personal selling is: Often essential in landing commitments More important than other mix elements in several situations Not appropriate for all products and services Drawbacks limit the use of personal selling © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Technology and Personal Selling Numerous technologies help enhance the selling effort: Account management software Customer relationship management (CRM) software Partner relationship management (PRM) Teleconferencing, videoconferencing, and improved corporate Web sites Voice-over Internet protocol (VoIP) Assorted wireless technologies © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Landscape of Modern Personal Selling Types of sales jobs: Order taker Technical specialist Missionary salesperson New-business salesperson Order getter Team selling and cross-functional teams © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Two Approaches to Personal Selling Transactional selling: A form of personal selling that focuses on making an immediate sale with little or no concern for developing long-term customer relationships Relationship selling Process of building long-term customers by developing mutually satisfying, win-win relationships with customers © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

The Creative Selling Process Step 1: Prospect and qualify: Prospecting: Developing a list of potential customers Cold calling Referrals Qualifying: Determining how likely potential customers are to become customers © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

The Creative Selling Process Step 2: The preapproach: Compiling background information about prospective customers and planning the sales interview Information is gathered from many sources Step 3: The approach: Contacting the prospect “You never get a second chance to make a good first impression” © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

The Creative Selling Process Step 4: The sales presentation: Laying out the benefits and added value of a firm’s product/service and its advantages over the competition Invite customer involvement Listening skills are critical © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

The Creative Selling Process Step 5: Handle objections: Anticipating why a prospect is reluctant to make a commitment and responding with additional information or persuasive arguments Welcome objections Objections must be successfully dealt with to move prospect to decision stage © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

The Creative Selling Process Step 6: Close the sale: Gaining the customer’s commitment in the decision stage using a variety of approaches: Last-objection close Assumptive or minor-points close Standing-room-only or buy-now close Step 7: The follow-up: Arranging for delivery, payment, and purchase terms © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Sales Management Sales management: Process of planning, implementing, and controlling the personal selling function of an organization Setting sales force objectives Creating a sales force strategy Recruiting, training, rewarding the sales force Evaluating the sales force © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Sales Management Process Setting sales force objectives: Objectives state what the sales force is expected to accomplish and by when Many take many forms Individual objectives can include: Performance objectives Behavioral objectives © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Sales Management Process Creating a sales force strategy Establishing structure and size of a firm’s sales force Setting sales territories is a major responsibility and several forms exist: Geographic sales force structure Product-class sales territories Industry specialization Key/major accounts © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Sales Management Process Recruiting the right people: Candidates are screened for several skills Pencil-and-paper test determine other competencies Sales training: Teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed Professional development is ongoing © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Sales Management Process Rewarding sales people: Paying salespeople well to motivate them Straight commission plan Commission-with-draw plan Straight salary plan Quota-bonus plan Sales contests can boost sales Call reports aid supervisors © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Sales Management Process Evaluating the sales force Is the sales force meeting its objectives? What are possible causes of failure? Individual performance is measured against quotas or other quantitative factors Qualitative factors may also be used Expense accounts for entertainment and travel may also be monitored © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Real People, Real Choices: Decision Made at Woodtronics Jeffrey chose option 2 Why do you think that Jeffery went directly to the client with a mock-up of the Evolution platform and involved the architect only after the client was satisfied with product? © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

Keeping It Real: Fast-Forward to Next Class Decision Time at Sam’s Club Meet Heather Mayo, Vice President of Merchandising for Sam’s Club Milk is difficult to supply economically and competitor’s are treating milk as a loss leader to entice consumers to their stores The decision to be made: What steps should Sam’s take to trim costs in the supply chain and make shipping milk more efficient? © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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