1. Personal Selling and Direct Marketing
Chapter 17
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Principles of Marketing, Sixth Canadian Edition

2. Learning Objectives
After studying this chapter, you should be able to:
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
Identify and explain the six major sales force management steps
Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing
Define direct marketing and discuss its benefits to customers and companies
Identify and discuss the major forms of direct marketing
Principles of Marketing, Sixth Canadian Edition

3. Personal Selling
Salesperson: an individual acting for a company by performing one or more of these activities:
Prospecting for new business
Communicating with prospective/existing customers
Servicing existing customers
Information gathering
Role of the sales force:
Represent the company to customers
Represent the customer to the company
Produce customer satisfaction and company profit
Nature of sales positions will vary:
Order taking
Order getting
Creative selling
Relationship management
Principles of Marketing, Sixth Canadian Edition

4. Sales Force Management
Sales force management: the analysis, planning, implementation, and control of sales force activities.
Sales force structure:
Territorial sales force structure
Product sales force structure
Customer sales force structure
Complex sales force structure
Other issues:
Outside sales force
Inside sales force
Team selling
Figure 17.1
Principles of Marketing, Sixth Canadian Edition

5. Sales Force Management (continued)
Recruiting: finding a pool of qualified applicants from which to make a selection decision
Sources: internal, competitors, suppliers, educational institutions, employment agencies, classified ads, and websites
Selection: choosing the candidate with the highest probability of success in the position
Methods: intelligence/personality testing, interviews, role play exercises, references, and background checks
Figure 17.1
Principles of Marketing, Sixth Canadian Edition

6. Sales Force Management (continued)
Training: investing in the human capital of the company, helping sales people to become more productive employees
Objectives of training can be to learn:
Company history and culture
Products and their application
Selling skills such as prospecting, questioning, closing, and time and territory management
Figure 17.1
Principles of Marketing, Sixth Canadian Edition

7. Sales Force Compensation
Compensation is used to direct activities and motivate salespeople
Will consist of fixed amount (salary), variable amount (bonus or incentives), expenses, and fringe benefits
Table 17.1
Principles of Marketing, Sixth Canadian Edition

8. Supervising Salespeople
Supervision is used to direct and motivate salespeople
Companies will vary in how closely they supervise their salespeople
Tools used:
Figure 17.2
Call reports and plans
Time-and-duty analysis
Sales force automation systems
Motivating salespeople:
Organizational climate
Sales quotas
Sales meetings
Reward systems
Principles of Marketing, Sixth Canadian Edition

9. Evaluating Salespeople
Measuring performance and providing feedback
Information collected and used for evaluation purposes:
Sales reports
Expense reports
Call reports
Territory reviews may be conducted to discuss performance
Standards of performance need to be clearly articulated to salespeople
Focus on behaviour
Principles of Marketing, Sixth Canadian Edition

10. The Personal Selling Process
The goal of the personal selling process is to find new customers and sell them something
Most salespeople spend their time maintaining existing accounts and building long-term customer relationships
Not all steps required in every sale
Figure 17.3
Principles of Marketing, Sixth Canadian Edition

11. Customer Relationship Management
Most personal selling is transaction-oriented
Companies want to encourage repeat purchasing because it is more efficient
Mutually profitable relationships are built on creating value, offering packaged solutions to problems, and improving products and processes
Figure 17.3
Principles of Marketing, Sixth Canadian Edition

12. Direct Marketing
Direct marketing: direct communications with carefully targeted individual consumers to obtain an immediate response
Can be a primary approach or as a supplement to other approaches
Benefits to consumers:
Convenient, easy to use, and private
Ready access to wealth of products
Immediate and interactive
Benefits to sellers:
Powerful tool to build customer relationships
One-to-one marketing
Low-cost, efficient alternative for reaching target markets
Principles of Marketing, Sixth Canadian Edition

13. Direct Marketing (continued)
Customer database: organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data
Used to identify prospects and generate sales leads
Profile customers based on previous purchasing or response to offers
Build customer loyalty by tailoring new offers to their specific interests
Principles of Marketing, Sixth Canadian Edition

14. Forms of Direct Marketing (continued)
Paid ad with a
response channel
Telephone marketing
Direct mail marketing
Catalogue marketing
Direct-response television marketing
Kiosk marketing
Direct
mail
Outbound
telemarketing
Figure 17.5
Integrated direct marketing:
Direct marketing campaigns that use multiple vehicles and multiple stages to improve response rates and profits
Face-to-face
sales call
Continuing
communication
Principles of Marketing, Sixth Canadian Edition

15. Public Policy and Ethical Issues
Irritation, unfairness, deception, and fraud
Invasion of privacy
Personal Information Protection and Electronic Documents Act (2001):
Consumer consent
Limitations
Accuracy
Right to access
Principles of Marketing, Sixth Canadian Edition

16. In Conclusion… The learning objectives for this chapter were:
Discuss the role of a company’s salespeople in creating value for customers and building customer relationships
Identify and explain the six major sales force management steps
Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing
Define direct marketing and discuss its benefits to customers and companies
Identify and discuss the major forms of direct marketing
Principles of Marketing, Sixth Canadian Edition