Consumers Rule

1
Personal Selling, Sales Management, Direct
Marketing
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Chapter Objectives

• role of personal selling
• within the promotion mix
• steps in personal selling process
• role of the sales manager
• direct marketing

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SELLING
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Personal Selling

• when a company representative
• interacts directly
• with a (prospective) customer
• to communicate
• about a good or service

5
Personal Selling

• Personal touch is more effective
• than mass-media appeal.
• Selling/sales management
• jobs provide high mobility,
• especially for college grads
• with marketing background.

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The Role of Personal Selling

• Personal selling is more important
• --when firm uses push strategy.
• --in B2B contexts.
• --with inexperienced consumers
• who need hands-on assistance.
• --for products bought infrequently
• (houses, cars, computers).
• Cost per contact is very high.

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Technology and Personal Selling

• Customer relationship management
• (CRM) software
• partner relationship management
• (PRM)
• Teleconferencing,
• Video-conferencing,
• Improved corporate Web sites
• Voice-over Internet protocol
• Assorted wireless technologies

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Types of Sales Jobs

• Order taker
• Facilitate transactions tha the customer
  initiates
• Technical specialist
• High skilled technical expertise who assist in
  product demonstration
• Missionary salesperson
• Promotes firm and (stimulate clients (demand) to
  buy)
• New-business salesperson
• Cold calls, breaking in new territory
• Finding new customers and calling them to present
  the company products
• order getter
• Salesperson who works to develop long term
  relationship with customer / generate sales
• Team selling cross-functional team
• Sales function by team consist sales person,
  technical specialist and others

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Approaches to Personal Selling

• Transactional selling Putting on the hard sell
• High-pressure process
• focuses on immediate sales
• no concern for developing long-term customer
  relationship

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Approaches to Personal Selling (contd)

• Relationship selling
• Process of building long-term customers by
  developing mutually satisfying, win-win
  relationships with customers

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Creative selling Process

• Makes positive transactions happen
• Series of activities

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Figure 14.1 Steps in Creative Selling Process
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The Creative Selling Process

• Step 1 Prospecting and qualifying
• --Prospecting
• developing a list of potential customers
• --Qualifying
• determining how likely potential customers are to
  become customers

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The Creative Selling Process (contd)

• Step 2 Pre-approach
• Compiling prospective customers
• background information
• planning the sales interview

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The Creative Selling Process (contd)

• Step 2 Pre-approach
• Purchase history,
• current needs,
• customers interests
• From
• informal sources,
• CRM system,
• customers Web sites,
• and/or business publications

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The Creative Selling Process (contd)

• Step 3 Approach
• Contacting the prospect
• Learning prospects needs,
• create a good impression,
• build rapport
• You never get a second chance to make a good
  first impression.

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The Creative Selling Process (contd)

• Step 4 Sales presentation
• benefits added value
• of product/firm
• advantages over competition
• Inviting customer involvement
• in conversation

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Step 5 Handling Objections

• Anticipating why
• prospect is reluctant to make a commitment
• Welcoming objections
• Handling objections
• successfully
• to move prospect to decision stage

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Step 6 Closing the Sale

• Gaining the customers commitment
• in the decision stage
• --Last-objection close
• --Assumptive close
• --minor-points close
• --Standing-room-only close
• --buy-now close

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Step 7 Follow-Up

• Arranging for delivery,
• Ensuring sure customer received delivery
• and is satisfied
• Payment
• Credit, factors, etc.
• purchase terms
• Bridging to next purchase

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Figure 14.2 The Sales Force Management Process
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Sales Management Sales force objectives

• What sales force is expected to accomplish and
  when

Customer Satisfaction Loyalty Retention /
turnover New customer development
New product suggestions Training Reporting on
competition Community involvement
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Creating a Sales Force Strategy

• Establishing structure and size
• of a firms sales force
• Sales territory a set group of customers
• Geographic sales force structure
• Product-class sales territories
• Industry specialization
• key/major accounts

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Recruiting, Training, Rewarding

• Recruiting the right people
• Good listening and follow-up skills
• adaptive style
• from situation to situation
• Tenacity
• High level of personal organization

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Recruiting, Training, Rewarding

• Sales training
• teaches salespeople about firm,
• its products,
• how to develop skills,
• knowledge, and
• attitudes to succeed

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Recruiting, Training, and Rewarding

• Paying salespeople well to motivate them
• Straight commission plan
• Commission-with-draw plan
• Straight salary plan

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Recruiting, Training, and Rewarding

• Running sales contests
• for short-term sales boost
• Call reports
• which customers were called on and
• how call went

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Evaluating the Sales Force

• Is sales force meeting its objectives?
• What are possible causes of failure?
• Measuring performance
• Monitoring expense accounts
• for travel and entertainment

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DIRECT MARKETING
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Direct Marketing

• Any direct communication
• to a consumer or business recipient
• designed to generate a response

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Direct Marketing

• Response
• in the form of an
• order,
• request for further information,
• a visit to a store
• other place of business
• for purchase of a product

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Direct Marketing MAIL ORDER

• Catalogs
• collection of products
• offered for sale
• described in book form,
• product descriptions and photos

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Direct Marketing MAIL ORDER

• Direct mail
• brochure/pamphlet
• offering a specific good/service
• at one point in time

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Direct Marketing telemarketing

• conducted over the telephone
• More profitable for business
• than consumer markets
• In 2003, FTC established
• National Do Not Call registry

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Direct Marketing (contd)

• Direct-response advertising
• allows consumer to respond
• by contacting the provider
• with questions or an order

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Direct Marketing (contd)

• Direct-response TV (DRTV)
• short commercials,
• 30-minute infomercials,
• home shopping networks
• HSN
• QVC
• Jewelry television
• ShopNBC
• Gemtv

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Direct Marketing (contd)

• M-Commerce
• promotional other e-commerce activities
• transmitted over mobile phones/devices

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Direct Marketing (contd)

• M-Commerce
• (SMS)
• Short-messaging system marketing
• Spim
• instant-messaging version of spam
• Adware
• software that tracks Web habits/interests,
• presenting pop-up ads
• resetting home page

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THE END
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Group Activity

• Your group are field salespeople for a firm that
  markets university textbooks.
• As part of your training, your sales manager asks
  you to outline what youll say in a typical sales
  presentation.
• --Write that outline.

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Discussion

• Will sales training and development needs vary
  based on how long salespeople have been in the
  business? Why or why not?
• Is it possible (and feasible) to offer different
  training programs for salespeople at different
  career stages? Why or why not?

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Discussion

• Based on the compensation figures in the chapter,
  do you think professional salespeople are
  appropriately paid? Why or why not?
• What do salespeople do that warrants the
  compensation indicated?

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Discussion

• M-commerce allows marketers to pinpoint where
  consumers are and send them messages about a
  local store.
• --Do you think consumers will respond positively
  to m-commerce?
• --What benefits do you think it offers them?