1. Marketing: An Introduction Integrated Marketing Communications: Personal Selling and Direct Marketing Chapter Fourteen Lecture Slides –Express Version Course Professor Date

2. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-2 Looking Ahead 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 experience, distinguishing between transaction oriented marketing and relationship marketing Define direct marketing and discuss its benefits for customers and companies Identify and discuss the major forms of direct marketing

3. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-3 The Nature of Personal Selling Interpersonal part of the promotion mix Purpose is to communicate Characterized by: –Direct contact with buyer –Two way communication –Flexible message content –Immediate feedback Position may go by different names Stereotype of a sales person

4. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-4 The Role of the Sales Force Functions performed will vary: –Order taker versus order getter (creative selling) –Represent the company to customers Find and develop customers Communicate what the company has to offer Problem solving as a way to create value –Represent customers to the company Managing the buyer-seller relationship Acting on the customer’s behalf –Produce sales, customer satisfaction, and company profit

5. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-5 Sales Management Decisions Recruiting and selecting salespeople Designing sales force strategy and structure Training sales people Evaluating salespeople Supervising salespeople Compensating salespeople Figure 14-1

6. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-6 Sales Force Structure Territorial sales force structure Product sales force structure Customer sales force structure Complex sales force structures Outside and inside sales forces Team selling

7. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-7 Great Sales People Skills Intrinsic motivation Disciplined work style Ability to close a sale Ability to solve problems Ability to build relationships

8. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-8 Ideal Salesperson Sales Focus Compensation Role An independent self-starter Deal making Sustained high effort To capture accounts To reward high performance Competitive problem-solver Consultative selling To reward new and existing account sales A team player A relationship manager Account penetration Manage the product Team selling Reward account management Rapidly Gain Market share Market Leadership Maximize Profitability Strategic Goal Source: Adapted from Sam T. Johnson Marketing Strategy & Compensation Table 14-1

9. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-9 Initial Training Initial Training Major Steps in Effective Selling Prospecting Qualifying Prospecting Qualifying Pre-approach Preparation Pre-approach Preparation Approach Follow-up Closing the Sale Closing the Sale Handling Objections Handling Objections Presentation Demonstration Presentation Demonstration Figure 14-3

10. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-10 Direct Marketing –Direct connections with carefully targeted individual consumers –Want an immediate response –Cultivate lasting customer relationships –Immediate and interactive –Database marketing allows precise targeting of small groups –Can be used as a supplement to existing channels or stand-alone –Fastest growing form of marketing –Low-cost and efficient

11. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-11 Major Forms of Direct Marketing Telephone marketing Personal selling Direct-mail marketing Catalogue marketing Direct-response television marketing Kiosk marketing Online marketing

12. Marketing: An Introduction ©Copyright 2004, Pearson Education Canada Inc. 14-12 Looking Back Role of the sales person Sales management decisions The personal selling process Direct marketing benefits Direct marketing forms