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Chapter 14 - Personal Selling…and Direct Marketing Personal selling:

Occurs when a company representative interacts directly with a prospect or customer to communicate about a good or service– “Personal touch” helps develop relationships– Salespeople are the eyes and ears of the firm– 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 a firm uses a push strategy– In business-to-business contexts: complex/technical

products – With inexperienced consumers who need hands-on

assistance– For products bought infrequently (high involvement)– When goods/services are complex or costly

Cost per contact is very high

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Technology and Personal Selling Numerous technologies help enhance the

selling effort:– Customer relationship management (CRM)

software and partner relationship management (PRM)

– Teleconferencing, videoconferencing, and improved corporate Web sites

– Voice-over Internet protocol – Assorted wireless technologies

SALESFORCE.COM

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Types of Sales Jobs

Sales positions vary considerably:– Order taker– Technical specialist– Missionary salesperson (stimulate clients

to buy)– New-business salesperson and order

getter – Team selling and cross-functional teams

Get the scoop on sales salaries! Visit the Occupational Outlook Handbook!

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Approaches to Personal Selling

Transactional selling: Focuses on making an immediate sale with little or no concern for developing long-term customer relationships– Associated with high-pressure, hard sell tactics

Relationship sellingProcess of building long-term customers by developing mutually satisfying, win-win relationships with customers– Builds customer loyalty and satisfaction

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Steps in the Creative Selling Process

Many sales leads come from a company’s marketing communications efforts, as well as a firm’s Web site.

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Sales Management Process of planning, implementing, and

controlling the personal selling function of an organization

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Direct Marketing Direct marketing

Any direct communication to a customer (consumer or business) designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product

Direct Marketing AssociationDirect Marketing Educational Foundation(www.directworks.org)

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Direct Marketing

Mail order– Catalogs: – Direct mail:

A brochure/pamphlet offering a specific good/service at one point in time

Telemarketing: – Direct marketing conducted over the telephone– More profitable for business than consumer markets– In 2003, FTC established National Do Not Call Registry

Do Not Call Registry

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Direct Marketing Direct-response advertising:

Allows consumer to respond by immediately contacting the provider with questions or an order– Direct-response TV (DRTV):

short commercials, 30-minute-plus infomercials, and home shopping networks

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Direct Marketing M-Commerce:

Promotional and other e-commerce activities transmitted over mobile phones/devices– Short-messaging system marketing (SMS) – Spim: instant-messaging version of spam– Adware: software that tracks Web

habits/interests, presenting pop-up ads and resetting home page