The role of Personal Selling in Direct Sales Organizations Thomas N. Ingram1992 Jialin & Kewrin

The purpose of this article The framework for defining the role of personal selling in direct sales organizations Marketing Developments Strategic roles of personal selling Personal selling tactical implications

Marketing developments Market Fragmentation Globalization Multiple channels approaches Timing & Speed Trust- based Relationship Selling

Marketing fragmentation = to define market segments into sub- segments and it forces direct sales organizations to think about two basic options: Ownership through leadership Expeditionary marketing

To lead and not to follow their customers in terms of new product ideas and the implementation of new ways for consumers to buy. Example: Mary Kay cosmetics

Globalization The personal selling dimension is particularly appropriate for the development of non-domestic markets when compared to other elements of the promotional mix

Example: Time life Books Because of….. the language barriers cultural differences ser-up time is minimal sunk channel costs are low

Multiple channel approaches Market fragmentation and globalization To make it easy for shoppers to buy where they want to

Mary Kay Cosmetics -Direct mail -Telephone ordering system

Timing and speed The unexpected available Eastern market The booming Asian market example: Avon in 1985

Trust-basted relationship selling Benefits for DSO An important issue for sales success Has to take responsibility for what transpires during the consumer and salesperson interactions Has to invest in training and field guidance must be made

Strategic roles of personal selling Adding value with information Customer service activities Revenue generation Change processes

Corporate growth orientation and personal selling Intensive growth Diversification growth Acquisition

Intensive growth: focuses on the development of existing business extremely active sales function the amount of selling effort should be intensified for existing products training should be priority motivational programs

Generic strategy and personal selling Low-cost supplier: selling on the basis of a low price Differentiation: perceived uniqueness Niche strategies: the selection of a particular target market

Personal selling tactical implications Trust-based selling “To achieve trust-based relationships with customers, salespeople must be candid, dependable, competent, customer-oriented, and likable (Hawes et al. 1989)”.

Benefits of Trust-based selling for a direct sales force The initial generation of profitable revenue A potential lifetime revenue stream The referral of prospects from the satisfied customer base.

Trust-based sales roles Wrap-around marketing “The customers must be pre-sold, sold, and then, in effect, post-sold”.

Tactical roles Counselor/ teacher; experts, listeners and presenters Ombudsman; customer oriented problem solver

Conclusion DS organizations are well-positioned: to capitalize on fast developing and fragmenting markets to realize the benefits of globalization to blend multiple sales channels, with the possibility that personal selling could adopt different roles over time to match market opportunities

By focusing more on generating revenue through long-term trust-based relationships with customers