Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Principles of Marketing Theocharis Katranis Lecture 10 Spring Semester

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture 10 2 Today’s Lecture 1. We will discuss the role of a company’s salespeople in creating value for customers and building customer relationships. 2. We will identify and explain the six major sales force management steps. 3. We will discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. 4. We will explain how sales promotion campaigns are developed and implemented. 5. We will define direct marketing and discuss its benefits to customers and companies. 6. We will identify and discuss the major forms of direct marketing 7. We will discuss online Marketing. 8. We will overview the public policy and ethical issues presented by direct marketing.

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Personal Selling Lecture 10 3 It is the personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Definition:

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 10 4 Salesperson - Definition Personal Selling It is An Individual representing a company to customers by performing one or more of the following activities: Prospecting, communicating, selling, servicing, information gathering, and relationship building.

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 10 5 Personal Selling Salespeople Characteristics Nowadays, most salespeople are well-educated, well-trained professionals who add value for customers and maintain long-term customer relationships. They listen to their customers, assess customer needs, and organize the company’s efforts to solve customer problems.

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 10 6 Personal Selling The Role of the Sales Force Salespeople represent the company to customers. Salespeople find and develop new customers. Salespeople sell products by approaching customers, presenting their products, answering objections, negotiating prices and terms, and closing sales.

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 10 7 Personal Selling Managing the Sales Force It is the analysis, planning, implementation, and control of sales force activities. It includes designing sales force strategy and structure and recruiting, selecting, training, supervising, compensating, and evaluating the firm’s salespeople.

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 10 8 Personal Selling Designing Sales Force Strategy and Structure 1. Territorial Sales Force Structure 2. Product Sales Force Structure 3. Customer Sales Force Structure

Principles of MarketingTheocharis Katranis, MBA,Spring Semester 2013 Lecture 10 9 Personal Selling Designing Sales Force Strategy and Structure 1. Territorial Sales Force Structure It is a Sales Force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Personal Selling Designing Sales Force Strategy and Structure 2. Product Sales Force Structure It is a Sales Force organization under which salespeople specialize in selling only a portion of the company’s products or lines.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Personal Selling Designing Sales Force Strategy and Structure 3. Customer Sales Force Structure It is a Sales Force organization under which salespeople specialize in selling only to certain customers or industries.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Personal Selling Outside and Inside Sales Force People Inside Sales Force are salespeople who conduct business from their offices via telephone, the internet, or visits from prospective buyers. Outside Sales Force are salespeople who travel to call on customers in the field.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Personal Selling Recruiting and Selecting Salespeople The four key salespeople talents: 1. Intrinsic Motivation 2. Disciplined Work Style 3. The ability to close a sale 4. The ability to build relationships with the customers

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Training Sales People Companies Train their sales people via seminars, sales meetings, and Web e- learning. Personal Selling

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Personal Selling Compensating Salespeople Companies can compensate good salespeople with salary increase, commissions, or bonuses based on sales performance.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Personal Selling Supervising and Motivating Salespeople Supervision is to help salespeople to do the right thing in the right way. Motivation is to encourage salespeople to work hard and energetically towards sales force goals.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Personal Selling Evaluating Salespeople and Sales-Force Performance Companies Evaluate their Salespeople via: 1. Sales Reports – Weekly/ Monthly 2. Call Reports 3. Expenses Report 4. Comments from customers

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture The Personal Selling Process

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture The Personal Selling Process 1. Prospecting and Qualifying It is the step in the selling process in which the salesperson or company identifies qualified potential customers.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture It is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call. The Personal Selling Process 2. Preapproach

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture The Personal Selling Process 3. Approach It is the selling process in which the salesperson meets the customer for the first time.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture The Personal Selling Process 4. Presentation It is the step in the selling process in which the salesperson tells the “value story” to the buyer, showing how the company’s offer solves the customer’s problems.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture The Personal Selling Process 5. Handling Objections It is the step in the selling process in which the salesperson seeks out, clarifies, and overcomes customer objections to buying.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture The Personal Selling Process 6. Closing It is the step in the selling process in which the salesperson asks the customer for an order.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture The Personal Selling Process 7. Follow-up It is the last step in the selling process in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Sales Promotion Definition: Sales Promotion are short-term incentives to encourage the purchase or sale of a product or service.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Sales Promotion Objectives: 1. To urge short-term customer buying 2. To reinforce the product’s position. 3. To build long-term customer relationships.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Major Sales Promotion Tools for Consumers 1. Samples Sales Promotion 2. Coupons 3. Refunds4. Premiums Sales Promotion tools are used to boost short-term customer buying and involvement or to enhance long-term customer relationships.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Major Sales Promotion Tools for Trade 1. Price-offs Sales Promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. Sales Promotion 2. Allowances 3. Buy-back guarantees4. Free Goods

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Sales Promotion Major Sales Promotion Tools for Business 1. Conventions and Trade Shows 2. Sales Contests Business Sales Promotion Tools are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Developing the Sales Promotion Program Marketers must decide: Sales Promotion 1. On the size of the incentive i.e big or small incentive 2. Conditions for participation i.e to everybody 3. How to promote and distribute the promotion program itself i.e. a $2-off coupon could be given out in a package, at the store, via internet, or in an advertisement. 4. On the length of the incentive i.e. for a Long or short period of time

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Sales Promotion Developing the Sales Promotion Program Marketers should work to measure the returns on their sales promotion investments. A Marketer must define the sales promotion objectives, select the best tools, design the sales promotion program, implement the program, and evaluate the results.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Direct and Online Marketing: Building Direct Customer Relationships Direct Marketing – Definition: It is the action of connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Direct and Online Marketing: Benefits to Customers 1. It is Convenient / Easy / Private. 2. Direct Information for products, companies and competitors. 3. It is interactive (Buyers can interact with sellers) and immediate.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Direct and Online Marketing: 1. It is a powerful tool to build customer relationship Benefits to Companies 2. It is a low-cost, efficient and speedy alternative for reaching their markets I.e. Telemarketing, Direct Mail, Company Web site. 3. It helps in order processing, inventory handling and delivery. 4. It helps marketers to make ongoing adjustments to their prices and other offers.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Direct and Online Marketing: Forms of Direct Marketing

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Direct and Online Marketing: Direct-mail marketing is the direct marketing by sending an offer, announcement, reminder, or other item to a person at a particular physical or virtual address. Catalog marketing is the direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online. Telephone marketing is the use of the telephone to sell directly to customers. Direct-response television marketing is direct marketing via television, including direct-response television advertising (or infomercials) and home shopping channels.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Online Marketing Definition: Online marketing is the Company’s efforts to market products and services and build customer relationships over the internet. Internet – Definition: Internet is a vast public web of computers networks that connects users of all types all around the world to each other and to an amazingly large “Information Repository”.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Online Marketing Nowadays, companies realized the importance of internet and almost have their own web sites. Companies may use a lot of online search engines to find the information they need. Many companies set their own online sales and communication channels.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Online Marketing Domains s, Web sites, Catalogs Exchange Info

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture Public Policy Issues in Direct Marketing 1. Irritation, Unfairness, Deception and Fraud i.e. TV commercials too long, too insistent / our mailboxes fill up with unwanted junk mail. 2. Invasion of Privacy i.e. companies record consumers info and characteristics and marketers use them later on for their selling efforts.

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Lecture We discussed the role of a company’s salespeople in creating value for customers and building customer relationships. 2. We identified and explained the six major sales force management steps. 3. We discussed the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. 4. We explained how sales promotion campaigns are developed and implemented. 5. We defined direct marketing and discuss its benefits to customers and companies. 6. We identified and discuss the major forms of direct marketing 7. We discuss online Marketing. 8. We overviewed the public policy and ethical issues presented by direct marketing. Summary - Lecture 10

Principles of MarketingTheocharis Katranis, MBASpring Semester 2013 Chapters 16 and 17 Lecture END of Lecture 10 Thank you for your attention