One to One Trade Promotion, Direct Marketing, and Personal Selling Chapter Fourteen

14-2 © 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

14-3 © 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 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 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 Option 3: Attempt to raise the architect’s comfort level with Evolution and hope he will recommend it to the client

14-4 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 14.1 Trade Sales Promotions

14-5 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Table 14.1 Characteristics of Trade Sales Promotion Approaches

14-6 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Trade Sales Promotion: Targeting the B2B Customer TSNN: Trade show news network TSNN: Trade show news networkTSNN: Trade-show-advisor.com tips for success Trade-show-advisor.com tips for successtips for successtips for success POPAI: The global association for marketing at retail. POPAI: The global association for marketing at retail. POPAI: POPAI: PPAI:PPAI: Promotional products association international PPAI:

14-7 © 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

14-8 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 14.2 Key Forms of Direct Marketing

14-9 © 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 Catalogs: Collection of products offered for sale and described in book form, usually consisting of product descriptions and photos Catalog Choice

14-10 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Direct Marketing  Mail order Direct mail: A brochure/pamphlet offering a specific good/service at one point in time Direct mail: A brochure/pamphlet offering a specific good/service at one point in time DMA Choice

14-11 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Direct Marketing  Telemarketing: Direct marketing conducted over the telephone Do Not Call Registry

14-12 © 2012 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) Direct-response TV (DRTV) Infomercials Infomercials OxyCleanOxyClean (2000)

14-13 © 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) Short-messaging system marketing (SMS)

14-14 © 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 Get the scoop on sales salaries! Visit the Occupational Outlook Handbook! Occupational Outlook Handbook

14-15 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 14.3 Factors That Influence a Firm’s Emphasis on Personal Selling

14-16 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Personal Selling is Not Appropriate in All Situations

14-17 © 2012 Pearson Education, Inc. publishing as Prentice-Hall.  Numerous technologies help enhance the selling effort: Specialized software Specialized software Partner relationship management (PRM) Partner relationship management (PRM) Teleconferencing, videoconferencing, and improved corporate Web sites Teleconferencing, videoconferencing, and improved corporate Web sites Voice-over Internet protocol (VoIP) Voice-over Internet protocol (VoIP) Assorted wireless technologies Assorted wireless technologies Technology and Personal Selling Salesforce.com

14-18 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 14.4 Types of Sales Jobs

14-19 © 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

14-20 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 14.5 Steps in the Creative Selling Process

14-21 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. The Creative Selling Process  Step 1: Prospect and qualify Prospecting: Developing a list of potential customers Prospecting: Developing a list of potential customers  Cold calling  Referrals Qualifying: Determining how likely potential customers are to become customers Qualifying: Determining how likely potential customers are to become customers Inc. Sales ResourcesSalesResources.com

14-22 © 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 Information is gathered from many sources

14-23 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. The Creative Selling Process  Step 3: The approach Contacting the prospect “You never get a second chance to make a good first impression” “You never get a second chance to make a good first impression”

14-24 © 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 Invite customer involvement Listening skills are critical Listening skills are critical

14-25 © 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 Welcome objections Objections must be successfully dealt with to move prospect to decision stage Objections must be successfully dealt with to move prospect to decision stage

14-26 © 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 Last-objection close Assumptive or minor-points close Assumptive or minor-points close Standing-room-only or buy-now close Standing-room-only or buy-now close  Step 7: The follow-up Arranging for delivery, payment, and purchase terms

14-27 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Figure 14.6 The Salesforce Management Process

14-28 © 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 Objectives state what the sales force is expected to accomplish and by when Many take many forms Many take many forms Individual objectives may be: Individual objectives may be:  Performance objectives  Behavioral objectives

14-29 © 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; several forms exist Setting sales territories is a major responsibility; several forms exist  Geographic sales force structure  Product-class sales territories  Industry specialization  Key/major accounts

14-30 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Sales Management Process  Recruiting the right people Candidates are screened for several skills Candidates are screened for several skills Pencil-and-paper test determine other competencies Pencil-and-paper test determine other competencies  Sales training: Teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed Teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed  Professional development is ongoing

14-31 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. It’s Debatable Class Discussion Question Put yourself in the position of a sales manager for a moment. Sales recruits come from a variety of educational backgrounds, and often have a wide range of experience. Will sales training and developmental needs vary based on how long salespeople have been in the business? Is it possible (and feasible) to offer different training programs for salespeople at different career stages? Where do you stand?

14-32 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Sales Management Process  Rewarding sales people Paying salespeople well to motivate them Paying salespeople well to motivate them  Straight commission plan  Commission-with-draw plan  Straight salary plan  Quota-bonus plan Sales contests can boost sales Sales contests can boost sales Call reports aid supervisors Call reports aid supervisors

14-33 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Sales Management Process  Evaluating the sales force Is the sales force meeting its objectives? Is the sales force meeting its objectives? What are possible causes of failure? What are possible causes of failure? Individual performance is measured against quotas or other quantitative factors Individual performance is measured against quotas or other quantitative factors Qualitative factors may also be used Qualitative factors may also be used Expense accounts for entertainment and travel may also be monitored Expense accounts for entertainment and travel may also be monitored

14-34 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. It’s Debatable Class Discussion Question Are these legitimate business expenses or do would you question their submission if you were a sales manager? Where do you stand? $ 1,000 paid for gambling chips divided among four clients who are being entertained at a casino. Cover charges and drinks for a local strip club. Cover charges and drinks for a local strip club.

14-35 © 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? 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?

14-36 © 2012 Pearson Education, Inc. publishing as Prentice-Hall.  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? Keeping It Real: Fast-Forward to Next Class Decision Time at Sam’s Club

14-37 © 2012 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