Chapter 14 Personal Selling, Sales Management, and Direct Marketing.
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Transcript of Chapter 14 Personal Selling, Sales Management, and Direct Marketing.
Chapter 14
Personal Selling, Sales Management, and
Direct Marketing
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-2
Chapter Objectives
Understand the important role of personal selling and how it fits into the promotion mix
Explain how technology enhances the personal selling effort
Identify the different types of sales jobs Describe two approaches to personal selling List the steps in the creative selling process Explain the role of sales management Understand the elements of
direct marketing
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-3
Real People, Real Choices: Decision Time at Woodtronics
Which strategy should Jeffrey pursue? – Option 1: Push the original solution, even
though it is not the best thing for the client– Option 2: Convince the client of Evolution’s
price and functionality superiority – Option 3: Attempt to raise the architect’s
comfort level with Evolution and hope he will recommend it to the client
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-4
Personal Selling
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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-5
The Role of Personal Selling
Personal selling is more important:– When a firm uses a push strategy– In business-to-business contexts– With inexperienced consumers who need
hands-on assistance– For products bought infrequently – When goods/services are complex or costly
Cost per contact is very high
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-6
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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-7
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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-8
Approaches to Personal Selling
Transactional selling: A form of personal selling that focuses on making an immediate sale with little or no concern for developing long-term customer relationships– Associated with high-pressure, hard sell
tactics
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-9
Approaches to Personal Selling
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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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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-11
The Creative Selling Process
Step 2: The preapproachCompiling background information about prospective customers and planning the sales interview– Purchase history, current needs, customer’s
interests– Information is gathered from informal
sources, CRM system, customers’ Web sites, and/or business publications
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-12
The Creative Selling Process
Step 3: The approachContacting the prospect– Learning even more about the prospect’s
needs, creating a good impression, and building rapport
– “You never get a second chance to make a good first impression”
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-13
The Creative Selling Process
Step 4: The sales presentationLaying out the benefits and added value of a firm’s product/service and its advantages over the competition– Invite customer involvement in conversation
by encouraging questions and feedback – Listening skills are critical for salespeople
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-14
The Creative Selling Process
Step 5: Handling objectionsAnticipating why a prospect is reluctant to make a commitment and responding with additional information or persuasive arguments– Welcome objections– Objections must be successfully dealt with to
move prospect to decision stage
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-15
The Creative Selling Process
Step 6: Closing the saleGaining the customer’s commitment in the decision stage using a variety of approaches:– Last-objection close – Assumptive or minor-points close – Standing-room-only or buy-now close
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-16
The Creative Selling Process
Step 7: The follow-upArranging for delivery, payment, and purchase terms– Making sure customer received delivery and
is satisfied– Bridging to next purchase
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-17
Sales Management
Sales managementProcess of planning, implementing, and controlling the personal selling function of an organization– Setting sales force objectives– Creating a sales force strategy– Recruiting, training, rewarding the sales force– Evaluating the sales force
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-18
Sales Management Process
Setting sales force objectives– Objectives state what the sales force is
expected to accomplish and by when– May be stated in terms of customer
satisfaction, loyalty, retention/turnover, new-customer development, new-product suggestions, training, reporting on competitive activity, community involvement
– Individual objectives may be performance or behavior based
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-19
Sales Management Process
Creating a sales force strategyEstablishing structure and size of a firm’s sales force– Setting sales territories is a major
responsibility; several forms exist• Geographic sales force structure• Product-class sales territories• Industry specialization• Key/major accounts
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-20
Sales Management Process
Recruiting the right people– Good listening and follow-up skills– Ability to adapt style from situation to situation– Tenacity – High level of personal organization
Sales training: – Teaches salespeople about firm, its products,
how to develop skills, knowledge, and attitudes to succeed
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-21
Sales Management Process
Rewarding sales people– Paying salespeople well to motivate them
• Straight commission plan • Commission-with-draw plan • Straight salary plan
– Running sales contests for short-term sales boost
– Call reports aid supervisors
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-22
Sales Management Process
Evaluating the sales force– Is the sales force meeting its objectives?– What are possible causes of failure?– Individual performance is measured against
quotas or other quantitative factors– Qualitative factors may also be used– Expense accounts for entertainment and
travel may also be monitored
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-23
Direct Marketing
Direct marketingAny direct communication to a consumer or business recipient 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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-24
Direct Marketing
Mail order– Catalogs:
Collection of products offered for sale and described in book form, usually consisting of product descriptions and photos
– Direct mail: A brochure/pamphlet offering a specific good/service at one point in time
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-25
Direct Marketing
Telemarketing: Direct marketing 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
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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-27
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
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-28
Real People, Real Choices: Decision Made at Woodtronics
Jeffrey chose option 2– Jeffrey felt that his job as a sales
representative was to uncover customer needs and provide the correct solutions
– Implementation: Showed client a mock-up of the Evolution platform; told architect only when client was satisfied with product. Client purchased the product
– Measuring success: Sales
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-29
Keeping It Real: Fast-Forward to Next Class Decision Time at Darden
Meet Jim Lawrence, Sr. VP Supply Management & Purchasing
Darden Restaurants is the world’s largest casual dining operator
The decision to be made: What steps should be taken to ensure that Darden restaurants have access to the volume and quality of food needed?
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall14-30
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