1. Personal Selling, Sales Management, and Direct Marketing
Chapter 14
Personal Selling, Sales Management, and Direct Marketing

2. Chapter Objectives
Understand the important role of personal selling and how it fits into the promotion mix
Explain how technology enhances the personal selling effort
Identify the different types of sales jobs
Describe two approaches to personal selling
List the steps in the creative selling process
Explain the role of sales management
Understand the elements of direct marketing
Copyright 2009 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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4. Personal Selling
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
Salespeople are the eyes and ears of the firm
Selling/sales management jobs provide high mobility, especially for college grads with marketing background
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5. The Role of Personal Selling
Personal selling is more important:
When a firm uses a push strategy
In business-to-business contexts
With inexperienced consumers who need hands-on assistance
For products bought infrequently
When goods/services are complex or costly
Cost per contact is very high
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6. Technology and Personal Selling
Numerous technologies help enhance the selling effort:
Customer relationship management (CRM) software and partner relationship management (PRM)
Teleconferencing, videoconferencing, and improved corporate Web sites
Voice-over Internet protocol
Assorted wireless technologies
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

7. Types of Sales Jobs Sales positions vary considerably: Order taker
Technical specialist
Missionary salesperson (stimulate clients to buy)
New-business salesperson and order getter
Team selling and cross-functional teams
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

8. 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
Associated with high-pressure, hard sell tactics
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

9. Approaches to Personal Selling
Relationship selling Process of building long-term customers by developing mutually satisfying, win-win relationships with customers
Builds customer loyalty and satisfaction
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10. The Creative Selling Process
Step 1: Prospecting and qualifying
Prospecting: Developing a list of potential customers
Qualifying: Determining how likely potential customers are to become customers
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

11. The Creative Selling Process
Step 2: The preapproach Compiling background information about prospective customers and planning the sales interview
Purchase history, current needs, customer’s interests
Information is gathered from informal sources, CRM system, customers’ Web sites, and/or business publications
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

12. The Creative Selling Process
Step 3: The approach Contacting the prospect
Learning even more about the prospect’s needs, creating a good impression, and building rapport
“You never get a second chance to make a good first impression”
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

13. 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 in conversation by encouraging questions and feedback
Listening skills are critical for salespeople
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

14. The Creative Selling Process
Step 5: Handling 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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

15. The Creative Selling Process
Step 6: Closing 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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

16. The Creative Selling Process
Step 7: The follow-up Arranging for delivery, payment, and purchase terms
Making sure customer received delivery and is satisfied
Bridging to next purchase
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

17. 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
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18. Sales Management Process
Setting sales force objectives
Objectives state what the sales force is expected to accomplish and by when
May be stated in terms of customer satisfaction, loyalty, retention/turnover, new-customer development, new-product suggestions, training, reporting on competitive activity, community involvement
Individual objectives may be performance or behavior based
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

19. 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; several forms exist
Geographic sales force structure
Product-class sales territories
Industry specialization
Key/major accounts
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

20. Sales Management Process
Recruiting the right people
Good listening and follow-up skills
Ability to adapt style from situation to situation
Tenacity
High level of personal organization
Sales training:
Teaches salespeople about firm, its products, how to develop skills, knowledge, and attitudes to succeed
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

21. Sales Management Process
Rewarding sales people
Paying salespeople well to motivate them
Straight commission plan
Commission-with-draw plan
Straight salary plan
Running sales contests for short-term sales boost
Call reports aid supervisors
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22. 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
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23. 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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

24. 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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

25. Direct Marketing
Telemarketing: Direct marketing conducted over the telephone
More profitable for business than consumer markets
In 2003, FTC established National Do Not Call registry
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26. Direct Marketing
Direct-response advertising: Allows consumer to respond by immediately contacting the provider with questions or an order
Direct-response TV (DRTV): Short commercials, 30-minute-plus infomercials, and home shopping networks
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

27. Direct Marketing
M-Commerce: Promotional and other e-commerce activities transmitted over mobile phones/devices
Short-messaging system marketing (SMS)
Spim: instant-messaging version of spam
Adware: software that tracks Web habits/interests, presenting pop-up ads, and resetting home page
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

28. Real People, Real Choices: Decision Made at Woodtronics
Jeffrey chose option 2
Jeffrey felt that his job as a sales representative was to uncover customer needs and provide the correct solutions
Implementation: Showed client a mock-up of the Evolution platform; told architect only when client was satisfied with product. Client purchased the product
Measuring success: Sales
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

29. Keeping It Real: Fast-Forward to Next Class Decision Time at Darden
Meet Jim Lawrence, Sr. VP Supply Management & Purchasing
Darden Restaurants is the world’s largest casual dining operator
The decision to be made: What steps should be taken to ensure that Darden restaurants have access to the volume and quality of food needed?
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

30. Copyright © 2009 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.
Copyright © 2009 Pearson Education, Inc.  
Publishing as Prentice Hall
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall