1. Instructor: Amir Ekhlassi (8) Integrated Marketing Communication: Personal Selling and Direct Marketing

2. The Nature of Personal Selling Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relationships. The term salesperson covers a wide range of positions: Order taker: Department store clerk Order getter: Creative selling in different environments (industrial equipment, airplanes, insurance, consulting services) ©Compiled by: Amir Ekhlassi

3. The Role of the Sales Force Personal selling is a paid, personal form of promotion. Involves two-way personal communication between salespeople and individual customers. Salespeople: Probe customers to learn about problems Adjust marketing offers to fit special needs Negotiate terms of sales Build long-term personal relationships ©Compiled by: Amir Ekhlassi

4. The Role of the Sales Force Sales Force serves as critical link between company and its customers. They represent the company to the customers They represent the customers to the company Goal = customer satisfaction and company profit ©Compiled by: Amir Ekhlassi

5. Sale Force Structure Territorial: Salesperson assigned to exclusive area and sells full line of products. Product: Sales force sells only certain product lines. Customer: Sales force organizes along customer or industry lines. Complex: Combination of several types of structures. ©Compiled by: Amir Ekhlassi

6. Inside Sales Force Conduct business from their offices via telephone or visits from perspective buyers. Includes: Technical support people Sales assistants Telemarketers ©Compiled by: Amir Ekhlassi

7. Team Selling Used to service large, complex accounts. Can include experts from different areas of selling firm. Pitfalls: Can confuse or overwhelm customers Some people have trouble working in teams Hard to evaluate individual contributions (sticky compensation issues) ©Compiled by: Amir Ekhlassi

8. Recruiting and Selecting Salespeople Key talents of salespeople: Excellent listeners Intrinsic motivation Disciplined work style Ability to close a sale Ability to build relationships with customers Costly turnover: 50000$ – 75000$: education cots + lost sales + … ©Compiled by: Amir Ekhlassi

9. Recruiting Salespeople Recommendations from current sales force Employment agencies Classified ads Web searches College students Recruit from other companies Recruiting test: Sales aptitude Analytical & Organizational skills Personality traits Gillette : tests deuces 45% turnover ©Compiled by: Amir Ekhlassi

10. Sales Force Training Goals Learn about and identify with the company. Learn about the company’s products. Learn customers’ and competitors’ characteristics. Learn how to make effective presentations. Learn field procedures and responsibilities. Average training: 4 months ©Compiled by: Amir Ekhlassi

11. Compensating Salespeople Fixed amount: Salary Variable amount: Commissions or bonuses Expenses: Repays for job-related expenditures Fringe benefits: Vacations, sick leave, pension, etc. ©Compiled by: Amir Ekhlassi

12. Supervising Salespeople Directing Salespeople Help them identify customers and set call norms. Specify time to be spent prospecting Annual call plan Time-and-duty analysis (traveling, waiting, eating, taking breaks,…) Sales force automation systems More efficient order entry transaction Improved customer service Better salesperson decision – making support EX: Owen – corning : FSA (generic tools, product info., customer info.) ©Compiled by: Amir Ekhlassi

13. Supervising Salespeople Motivating Salespeople Organizational climate Sales quotas Positive incentives: Sales meetings Sales contests Recognition and honors Cash awards, trips, profit sharing ©Compiled by: Amir Ekhlassi

14. The Personal Selling Process Prospecting: The salesperson identifies qualified potential customers.(customer referral) Preapproach: The salesperson learns as much as possible about a prospective customer before making a sales call. (set call objective) Approach: The salesperson meets the customer for the first time.(listening) Presentation: The salesperson tells the “product story” to the buyer, highlighting customer benefits. ©Compiled by: Amir Ekhlassi

15. The Personal Selling Process Handling Objections: The salesperson seeks out, clarifies, and overcomes customer objections to buying. (logical, psychological) Closing: The salesperson asks the customer for an order.(signals: physical actions, comments, questions) Follow-up: The salesperson follows up after the sale to ensure customer satisfaction and repeat business. ©Compiled by: Amir Ekhlassi

16. Note Good Seller Bad Seller Empathy Good listening Honesty Dependability Follow through Pushy Late Deceitful Unprepared Disorganized ©Compiled by: Amir Ekhlassi

17. Direct Marketing Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. ©Compiled by: Amir Ekhlassi

18. The New Direct-Marketing Model Some firms use direct marketing as a supplemental medium. (Lexus) For many companies, direct marketing constitutes a new and complete model for doing business. Some firms employ the direct model as their only approach. (Dell, Amazon.com, eBay) Some see this as the new marketing model of the next millennium. (Cisco systems, IBM) ©Compiled by: Amir Ekhlassi

19. Benefits of Direct Marketing Benefits to Buyers: Convenient Easy to use Private Ready access to products and information Immediate and interactive ©Compiled by: Amir Ekhlassi

20. Benefits of Direct Marketing Benefits to Sellers: Powerful tool for building customer relationships Can target small groups or individuals Can tailor offers to individual needs Can be timed to reach prospects at just the right moment Gives access to buyers they could not reach through other channels Offers a low-cost, efficient way to reach markets ©Compiled by: Amir Ekhlassi

21. Customer Databases An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data. Past volumes & Prices Key contacts (ages, birthdays, hobbies, favorites) Competitive supplier Status of current contracts (Ritz-Carlton Hotel: 500,000 customer preferences; Pizza Hut: track 50M customer purchases) ©Compiled by: Amir Ekhlassi

22. Telemarketing Accounts for more than 36% of all direct-marketing sales. Used in both consumer and B2B markets. Can be outbound or inbound (toll – free 800)calls. ©Compiled by: Amir Ekhlassi

23. Direct-Mail Marketing Involves sending an offer, announcement, reminder, or other item to a person at a particular address. Accounts for more than 31% of direct-marketing sales. Permits high target-market selectivity. Personal and flexible. Easy to measure results. ©Compiled by: Amir Ekhlassi

24. Catalog Marketing With the Internet, more and more catalogs going electronic. Print catalogs still the primary medium. Harder to attract new customers with Internet catalogs. ©Compiled by: Amir Ekhlassi

25. Direct Response TV Marketing Direct-response advertising Infomercials Home shopping channels ©Compiled by: Amir Ekhlassi

26. Kiosk Marketing Information and ordering machines generally found in stores, airports, and other locations. ©Compiled by: Amir Ekhlassi

27. Public Policy and Ethical Issues in Direct Marketing Irritation to Consumers Taking unfair advantage of impulsive or less sophisticated buyers Targeting TV-addicted shoppers Deception, Fraud Invasion of Privacy ©Compiled by: Amir Ekhlassi

28. Thank you for Your Patience & Attention