Personal Selling and Direct Marketing Chapter 16

Learning Goals 1.Understand the role of a company’s salespeople in creating value. 2.Know the six major sales force management steps. 3.Understand the personal selling process, and how to distinguish between transaction-oriented marketing and relationship marketing. 4.Learn about direct marketing and its benefits to customers and companies. 5.Know the major forms of direct marketing.

Case Study CDW Corporation Nation’s largest reseller of technology products and services to small and mid-size businesses Sales up 21% and profits up 17% annually Highly devoted to customer with “Circle of Service” philosophy Clicks and people direct marketing strategy combines personal selling with strong Web presence Salespeople are highly knowledgeable Training is extensive

Personal Selling The Nature of Personal Selling  Salesperson covers a wide range of positions from order taker to order getter responsible for relationship building Goal 1: Understand the role of the salespeople in creating value

Salespeople Have Many Names Personal Selling Agents Sales Consultants Sales Representatives Account Executives Sales Engineers District Managers Marketing Representatives Account Development Representatives Goal 1: Understand the role of the salespeople in creating value

Personal Selling The Role of the Sales Force  Two-way personal communication  More effective than advertising in complex selling situations  The sales force plays a major role in most companies  The sales force represents the company to customers  They also represent the customers to the company Goal 1: Understand the role of the salespeople in creating value

The Personal Selling Process Prospecting and Qualifying  Prospecting: identifying potential customers  Qualifying: Screening leads Preapproach  Learning as much as possible about a prospective customer prior to making a sales call Approach  Stage where the salesperson meets the customer for the first time Goal 3: Understand the personal selling process

The Personal Selling Process Presentation and Demonstration  Benefits of the product are presented/demonstrated  Understanding prospect needs is key Handling Objections and Closing  Asking for the order Follow-up  Helps ensure customer satisfaction Goal 3: Understand the personal selling process

Definition Direct Marketing  Consists of direct one-to-one connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Goal 4: Learn about direct marketing and its benefits

Benefits of Direct Marketing For Buyers:  Convenient  Easy to use  Private  Access to a wealth of information  Immediate  Interactive Goal 4: Learn about direct marketing and its benefits

Benefits of Direct Marketing For Sellers  Powerful tool for building relationships  Allows for targeting of small groups or individuals with customized offers in a personalized fashion  Can be timed to reach prospects at the right time  Offers access to buyers that couldn’t be reached via other channels  Low-cost, effective alternative for reaching specific markets Goal 4: Learn about direct marketing and its benefits

Direct Marketing Customer Databases & Direct Marketing  Databases include comprehensive data including geographic, demographic, psychographic and behavioral  Databases can be used to identify prospects, tailor products, and maintain customer relationships  Database marketing requires substantial investment in hardware, software, personnel Goal 5: Know the major forms of direct marketing

Direct Marketing Integrated Direct Marketing Public Policy and Ethical Issues  Irritation, Unfairness, Deception, and Fraud  Invasion of Privacy Goal 5: Know the major forms of direct marketing