Integrated Marketing Communications: Personal Selling and Direct Marketing

1
Chapter 14

• Integrated Marketing Communications Personal
  Selling and Direct Marketing

2
Road Map Previewing the Concepts

• Discuss the role of a companys 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?

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
Companys Full Product Line
Product Sales Force Sells Only a Portion of The
Companys Products or Lines
Customer Sales Force Sells Only to
Certain Customers or Industries
9

Other Sales Force Strategy and Structure Issues
Inside Sales Force
Outside 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
12
Recommendations for Recruiting Salespeople
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.

22
Mass Marketing and Direct Marketing
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, e-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 Foremans 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 companys 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.