1. Chapter 14
Integrated Marketing Communications: Personal Selling and Direct Marketing

2. Road Map: Previewing the Concepts
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.

3. The Nature of Personal Selling
Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term relationships with customers.
The term salesperson covers a wide spectrum of positions from:
Order taker (department store salesperson)
Order getter (someone engaged in creative selling i.e Lear Corporation)

4. Discussion Question
What did Robert Louis Stevenson mean when he said “everyone lives by selling something?”
Each student will probably have his or her own opinion about this question. The answers make an interesting in-class discussion. The intent of the question is to get the student to examine the selling function in a different way than the traditional viewpoint (i.e., selling a product or service). As an example, each person in an organization (no matter their role) sells the organization to the public. Each time a receptionist answers the phone or greets a person from the outside, he or she is representing (and therefore selling) the organization. Each time a service person works on a product or serves a customer they are representing (and therefore selling) the organization. It has been said that the most “important” salespeople that an organization has are “the silent majority” of employees that act as support staff.

5. The Role of the Sales Force
Involves two-way, personal communication between salespeople and individual customers.
Personal selling is effective because salespeople can:
probe customers to learn more about their problems,
adjust the marketing offer to fit the special needs of each customer,
negotiate terms of sale, and
build long-term personal relationships with key decision makers.

6. The Role of the Sales Force
Represent the Company to Customers to Produce Company Profit
Sales Force
Serves as a Critical Link
Between a Company and its Customers Since They:
Represent Customers to
the Company to Produce Customer Satisfaction

7. Major Steps in Sales Force Management (Fig. 14-1)

8. Designing Sales Force Strategy and Structure
Territorial
Exclusive Territory to Sell the
Company’s Full Product Line
Designing Sales Force Strategy and Structure
Product
Sales Force Sells Only a Portion of
The Company’s Products or Lines
Complex Forms Are a Combination of Any Types of Sales Force Structures
Customer
Sales Force Sells Only to Certain
Customers or Industries

9. Other Sales Force Strategy and Structure Issues
Outside Sales
Force
Inside Sales
Force
Conduct Business From Their
Offices Via Phone/Buyer Visits
Travel to Call on
Customers
Sells to
Major
Accounts
Finds Major
New
Prospects
Technical
Support
People
Sales
Assistants
Tele-
Marketer
&
Internet

10. Team Selling Use team selling to service large, complex accounts.
Team finds problems, solutions, and sales opportunities.
Problems: can overwhelm customers, difficulties working with teams, evaluation of sales performance.

11. Some Traits of Good Salespeople
Enthusiasm
Persistence
Job Commitment
Self-Confidence
Initiative

12. Recommendations for Recruiting Salespeople
Current Salespeople
Employment Agencies
Classified Ads
Search the Web
College Students
Salespeople from Other Companies

13. Training Salespeople Help Salespeople Know &
Identify With the Company
Learn About the Products
The Average Sales Training Program lasts for Four Months and Has the Following Goals:
Learn About Competitors’
and Customers’ Characteristics
Learn How to Make
Effective Presentations
Understand Field Procedures
and Responsibilities

14. Compensating Salespeople
To Attract Salespeople, a Company Must Have
an Attractive Plan Made Up of Several Elements
Fixed
Amount:
Usually a
Salary
Variable
Amount:
Usually
Commissions
Or Bonuses
Expense
Allowance:
For Job-
Related
Expenses
Fringe Benefits Provide Job Security and Satisfaction

15. Supervising Salespeople
Directing Salespeople
Identify Customer Targets & Call Norms
Time Spent Prospecting for New Accounts
Use Sales Time Efficiently
Annual Call Plan
Time-and-Duty Analysis
Sales Force Automation
Motivating Salespeople
Organizational Climate
Sales Quotas
Positive Incentives
Sales Meetings
Sales Contests
Honors and Trips
Merchandise/Cash

16. How Salespeople Spend Their Time (Fig. 14-2)

17. Major Steps in Effective Selling (Fig. 14-3)

18. Steps in the Selling Process
Prospecting
Salesperson Identifies Qualified Potential Customers.
Qualifying
Process of Identifying Good Prospects and Screening Out Poor Ones.
Preapproach
Salesperson Learns About a Prospective Customer Before Making a Sales Call.
Approach
Salesperson Meets the Buyer and Gets the Relationship Off to a Good Start.

19. Steps in the Selling Process
Presentation
Salesperson Tells the Product “Story” to the Buyer Showing How the Product Solves Problems.
Handling
Objections
Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying.
Closing
Salesperson Asks the Customer for an Order.
Follow-Up
Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business.

20. What is Relationship Marketing?
Relationship Marketing Emphasizes Maintaining Profitable Long-Term Relationships with Customers by Creating Superior Customer Value and Satisfaction.

21. Interactive Student Assignments
Form students into groups of three to five. Each group should answer the following questions:
Explain the meaning of relationship marketing.
Describe how relationship marketing might be used in selling a new car.
Relationship marketing emphasizes maintaining profitable long-term relationships with customers by creating superior customer value and satisfaction. Companies are realizing that when operating in maturing markets and facing stiffer competition, it costs more to get new customers from competition than to keep current customers. Relationship marketing is based on the premise that important accounts need focused and continuous attention.
As it refers to selling a new car--few consumers buy a new car with only one visit. Instead, trust of the salesperson is essential (the consumer can always buy the same basic model from another dealership).

22. Mass Marketing and Direct Marketing
Most Mass Marketing Involves One-Way Communications Aimed At Consumers.
Direct Marketing Involves Two-Way Interactions With Customers.

23. The New Direct Marketing Model
Some firms use direct marketing as a supplemental medium.
For many companies, direct marketing – especially Internet and e-commerce companies – constitutes a new and complete model for doing business.
Some firms use the new direct model as their only approach.
New marketing model of the next millennium.

24. Benefits and Growth of Direct Marketing
Benefits to Buyers
Convenient
Easy to use
Private
Product access and selection
Abundance of information
Immediate
Interactive
Benefits to Sellers
Consumer relationship building
Reduces costs
Increases speed and efficiency
Provides flexibility
Global medium

25. Customer Databases and Marketing
Customer Databases are an Organized Collection of Comprehensive Data About Individual Customers or Prospects.
Allows companies to offer fine-tuned marketing offers and communications to customers.

26. Forms of Direct Marketing (Fig. 14-4)

27. Forms of Direct Marketing
Telephone Marketing
Represents 36% of direct marketing sales.
Outbound telephone marketing sells directly to customers.
Inbound numbers provide a toll-free number to receive orders.
Direct-Mail Marketing
Represents 31% of direct marketing sales.
High target-market selectivity.
Personalized & flexible.
Allows easy measurement of results.
Fax mail, , voice mail are now popular

28. Forms of Direct Marketing
Catalog Marketing
Sales expected to exceed $94 billion by 2002.
Printed, selling multiple products, offering direct ordering mechanism.
Printed catalogs remain the primary medium, but many are now electronic.
Direct-Response TV Marketing
Direct-response advertising – marketers air TV spots or infomercials.
Home shopping channels – entire programs or channels dedicated to selling goods and services.
Kiosk Marketing
Placing information and ordering machines at various locations.

29. George Foreman’s Lean Mean Fat-Reducing Grilling Machine
Current infomercial champ – George Foreman!
Selling for 3 easy payments of $19.95 (plus shipping & handling).
Totaled almost $400 million in sales last year.

30. An Integrated Direct-Marketing Campaign (Fig. 14-5)

31. Public Policy and Ethical Issues in Direct Marketing
Unfairness,
Deception, or
Fraud
Irritation to
Consumers
Invasion of
Privacy

32. Rest Stop: Reviewing the Concepts
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.