1. One to One Trade Promotion, Direct Marketing, and Personal Selling
Week 7
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

2. 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

3. 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 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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

5. 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

6. Direct Marketing Mail order:
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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

7. 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)
Infomercials
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

8. Direct Marketing
M-Commerce: Promotional and other e-commerce activities transmitted over mobile phones/devices
Short-messaging system marketing (SMS)
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

9. 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
Sales jobs provide high mobility, especially for college grads with marketing backgrounds
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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

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

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

13. 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
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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

15. 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
Step 3: The approach: Contacting the prospect
“You never get a second chance to make a good first impression”
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

16. 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
Listening skills are critical
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

17. 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
Objections must be successfully dealt with to move prospect to decision stage
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

18. 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
Assumptive or minor-points close
Standing-room-only or buy-now close
Step 7: The follow-up: Arranging for delivery, payment, and purchase terms
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

19. Sales Management
Sales management: Process of planning, implementing, and controlling the personal selling function of an organization
Setting sales force objectives
Creating a sales force strategy
Recruiting, training, rewarding the sales force
Evaluating the sales force
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

20. Sales Management Process
Setting sales force objectives:
Objectives state what the sales force is expected to accomplish and by when
Many take many forms
Individual objectives can include:
Performance objectives
Behavioral objectives
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

21. 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:
Geographic sales force structure
Product-class sales territories
Industry specialization
Key/major accounts
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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

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

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

25. 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?
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

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

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© 2012 Pearson Education, Inc. publishing as Prentice-Hall.