1. One to One Trade Promotion, Direct Marketing, and Personal Selling Chapter Fourteen © 2012 Pearson Education, Inc. publishing as Prentice-Hall.

2. 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

3. 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

4. 14-4 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Trade Sales Promotion: Targeting the B2B Customer  Discount promotions: Allowances, discounts, and deals Allowances, discounts, and deals  Merchandising allowances  Case allowances Co-op advertising Co-op advertising  Promotions that increase industry visibility: Trade shows Trade shows Promotional products Promotional products Point-of-purchase (POP) displays Point-of-purchase (POP) displays Incentive programs Incentive programs

5. 14-5 © 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

6. 14-6 © 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 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

7. 14-7 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Direct Marketing  Telemarketing: Direct marketing conducted over the telephone  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

8. 14-8 © 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)

9. 14-9 © 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 “Personal touch” helps develop relationships “Personal touch” helps develop relationships Sales jobs provide high mobility, especially for college grads with marketing backgrounds Sales jobs provide high mobility, especially for college grads with marketing backgrounds

10. 14-10 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. The Role of Personal Selling in the Marketing Mix  Personal selling is: Often essential in landing commitments Often essential in landing commitments More important than other mix elements in several situations More important than other mix elements in several situations Not appropriate for all products and services Not appropriate for all products and services  Drawbacks limit the use of personal selling

11. 14-11 © 2012 Pearson Education, Inc. publishing as Prentice-Hall.  Numerous technologies help enhance the selling effort: Account management software Account management software Customer relationship management (CRM) software Customer relationship management (CRM) 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

12. 14-12 © 2012 Pearson Education, Inc. publishing as Prentice-Hall. Landscape of Modern Personal Selling  Types of sales jobs: Order taker Order taker Technical specialist Technical specialist Missionary salesperson Missionary salesperson New-business salesperson New-business salesperson Order getter Order getter Team selling and cross-functional teams Team selling and cross-functional teams

13. 14-13 © 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. 14-14 © 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

15. 14-15 © 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  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”

16. 14-16 © 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

17. 14-17 © 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

18. 14-18 © 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

19. 14-19 © 2012 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 Setting sales force objectives Creating a sales force strategy Creating a sales force strategy Recruiting, training, rewarding the sales force Recruiting, training, rewarding the sales force Evaluating the sales force Evaluating the sales force

20. 14-20 © 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 can include: Individual objectives can include:  Performance objectives  Behavioral objectives

21. 14-21 © 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 and several forms exist: Setting sales territories is a major responsibility and several forms exist:  Geographic sales force structure  Product-class sales territories  Industry specialization  Key/major accounts

22. 14-22 © 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

23. 14-23 © 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

24. 14-24 © 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

25. 14-25 © 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?

26. 14-26 © 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

27. 14-27 © 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