Integrated Marketing Communication: Personal Selling and Direct Marketing

1
Integrated Marketing Communication Personal
Selling and Direct Marketing

• Chapter 13

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

1. Discuss the role of a companys salespeople in
   creating value for customers and building
   customer relationships.
2. Identify and explain the six major sales force
   management steps.
3. Discuss the personal selling process,
   distinguishing between transaction-oriented
   marketing and relationship marketing.

30
Rest Stop Reviewing the Concepts

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