Personal Selling, Sales Management, and Direct Marketing Chapter 14 Personal Selling, Sales Management, and Direct Marketing

Chapter Objectives Understand the important role of personal selling and how it fits into the promotion mix Explain how technology enhances the personal selling effort Identify the different types of sales jobs Describe two approaches to personal selling List the steps in the creative selling process Explain the role of sales management Understand the elements of direct marketing Copyright 2009 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 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Personal Selling 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 Salespeople are the eyes and ears of the firm Selling/sales management jobs provide high mobility, especially for college grads with marketing background Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Role of Personal Selling Personal selling is more important: When a firm uses a push strategy In business-to-business contexts With inexperienced consumers who need hands-on assistance For products bought infrequently When goods/services are complex or costly Cost per contact is very high Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Technology and Personal Selling Numerous technologies help enhance the selling effort: Customer relationship management (CRM) software and partner relationship management (PRM) Teleconferencing, videoconferencing, and improved corporate Web sites Voice-over Internet protocol Assorted wireless technologies Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Types of Sales Jobs Sales positions vary considerably: Order taker Technical specialist Missionary salesperson (stimulate clients to buy) New-business salesperson and order getter Team selling and cross-functional teams Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 Associated with high-pressure, hard sell tactics Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Approaches to Personal Selling Relationship selling Process of building long-term customers by developing mutually satisfying, win-win relationships with customers Builds customer loyalty and satisfaction Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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 Copyright 2009 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 Purchase history, current needs, customer’s interests Information is gathered from informal sources, CRM system, customers’ Web sites, and/or business publications Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process Step 3: The approach Contacting the prospect Learning even more about the prospect’s needs, creating a good impression, and building rapport “You never get a second chance to make a good first impression” Copyright 2009 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 in conversation by encouraging questions and feedback Listening skills are critical for salespeople Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process Step 5: Handling 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 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process Step 6: Closing 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 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

The Creative Selling Process Step 7: The follow-up Arranging for delivery, payment, and purchase terms Making sure customer received delivery and is satisfied Bridging to next purchase Copyright 2009 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 Copyright 2009 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 May be stated in terms of customer satisfaction, loyalty, retention/turnover, new-customer development, new-product suggestions, training, reporting on competitive activity, community involvement Individual objectives may be performance or behavior based Copyright 2009 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; several forms exist Geographic sales force structure Product-class sales territories Industry specialization Key/major accounts Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Sales Management Process Recruiting the right people Good listening and follow-up skills Ability to adapt style from situation to situation Tenacity High level of personal organization Sales training: Teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed Copyright 2009 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 Running sales contests for short-term sales boost Call reports aid supervisors Copyright 2009 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 Copyright 2009 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 Copyright 2009 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 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Direct Marketing Telemarketing: Direct marketing conducted over the telephone More profitable for business than consumer markets In 2003, FTC established National Do Not Call registry Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Direct Marketing Direct-response advertising: Allows consumer to respond by immediately contacting the provider with questions or an order Direct-response TV (DRTV): Short commercials, 30-minute-plus infomercials, and home shopping networks Copyright 2009 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) Spim: instant-messaging version of spam Adware: software that tracks Web habits/interests, presenting pop-up ads, and resetting home page Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Real People, Real Choices: Decision Made at Woodtronics Jeffrey chose option 2 Jeffrey felt that his job as a sales representative was to uncover customer needs and provide the correct solutions Implementation: Showed client a mock-up of the Evolution platform; told architect only when client was satisfied with product. Client purchased the product Measuring success: Sales Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Keeping It Real: Fast-Forward to Next Class Decision Time at Darden Meet Jim Lawrence, Sr. VP Supply Management & Purchasing Darden Restaurants is the world’s largest casual dining operator The decision to be made: What steps should be taken to ensure that Darden restaurants have access to the volume and quality of food needed? Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall