Integrated Marketing Communication: Personal Selling and Direct Marketing

1
Integrated Marketing Communication Personal
Selling and Direct Marketing

• Chapters 17

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.

3
Road Map Previewing the Concepts

• Define direct marketing and discuss its benefits
  to customers and companies.
• Identify and discuss the major forms of direct
  marketing.

4
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

5
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

6
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

7
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.

8
Inside Sales Force

• Conduct business from their offices via telephone
  or visits from perspective buyers.
• Includes
• Technical support people
• Sales assistants
• Telemarketers

9
Selling Team

• 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

10
Recruiting and Selecting Salespeople

• Key talents of salespeople
• Intrinsic motivation
• Disciplined work style
• Ability to close a sale
• Ability to build relationships with customers

11
Recruiting Salespeople

• Recommendations from current sales force
• Employment agencies
• Classified ads

• Web searches
• College students
• Recruit from other companies

12
Sales Force Training Goals

• Learn about and identify with the company.
• Learn about the companys products.
• Learn customers and competitors
  characteristics.
• Learn how to make effective presentations.
• Learn field procedures and responsibilities.

13
Compensating Salespeople

• Fixed amount
• Salary
• Variable amount
• Commissions or bonuses
• Expenses
• Repays for job-related expenditures
• Fringe benefits
• Vacations, sick leave, pension, etc.

14
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
• Sales force automation systems

15
Supervising Salespeople

• Motivating Salespeople
• Organizational climate
• Sales quotas
• Positive incentives
• Sales meetings
• Sales contests
• Recognition and honors
• Cash awards, trips, profit sharing

16
The Personal Selling Process

• Prospecting The salesperson identifies
  qualified potential customers.
• Preapproach The salesperson learns as much as
  possible about a prospective customer before
  making a sales call.
• Approach The salesperson meets the customer for
  the first time.
• Presentation The salesperson tells the product
  story to the buyer, highlighting customer
  benefits.

17
The Personal Selling Process

• Handling Objections The salesperson seeks out,
  clarifies, and overcomes customer objections to
  buying.
• Closing The salesperson asks the customer for
  an order.
• Follow-up The salesperson follows up after the
  sale to ensure customer satisfaction and repeat
  business.

18
Direct Marketing

• Direct marketing consists of direct connections
  with carefully targeted individual consumers to
  both obtain an immediate response and cultivate
  lasting customer relationships.

19
The New Direct-Marketing Model

• Some firms use direct marketing as a supplemental
  medium.
• For many companies, direct marketing constitutes
  a new and complete model for doing business.
• Some firms employ the direct model as their only
  approach.
• Some see this as the new marketing model of the
  next millennium.

20
Benefits of Direct Marketing

• Benefits to Buyers
• Convenient
• Easy to use
• Private
• Ready access to products and information
• Immediate and interactive

21
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

22
Customer Databases

• An organized collection of comprehensive data
  about individual customers or prospects,
  including geographic, demographic, psychographic,
  and behavioral data.

23
Telemarketing

• Accounts for more than 36 of all
  direct-marketing sales.
• Used in both consumer and B2B markets.
• Can be outbound or inbound calls.

24
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.

25
Catalog Marketing

• With the Internet, more and more catalogs going
  electronic.
• Print catalogs still the primary medium.
• Expected sales in 2008 176 billion.
• Harder to attract new customers with Internet
  catalogs.

26
Direct Response TV Marketing

• Direct-response advertising
• Infomercials
• Home shopping channels

27
Kiosk Marketing

• Information and ordering machines generally found
  in stores, airports, and other locations.

28
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

29
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.

30
Rest Stop Reviewing the Concepts

• Define direct marketing and discuss its benefits
  to customers and companies.
• Identify and discuss the major forms of direct
  marketing.