Chapter 17: Personal Selling and Direct Marketing

Objectives
  • •Understand the role of a company’s salespeople in creating value for customers and building customers relationships.
  • •Know the six major sales force management steps.
 
 

 

Objectives
  • •Understand the personal selling process, and how to distinguish between transaction-oriented marketing and relationship marketing.
  • •Learn about direct marketing and its benefits to customers and companies.
  • •Know the major forms of direct marketing.
 
 

 

Please Open The Following Figures In Different Windows and Leave Them Open:

Animated Figure 17-1 , Animated Figure 17-2 , Animated Figure 17-3 , Animated Figure 17-5

 

Case Study
Lear Corporation
  • •Record-breaking earnings and sales growth
  • •Outstanding sales force; rated as one of America’s best.
  • •Sales force focuses on customer success

 
  • •Sales force is organized into separate divisions dedicated to specific customers
  • •Division platform teams work with customers and are linked to customer operations at all levels

 

Definitions
•Salesperson
§
  • §An individual acting for a company by performing one or more of the following activities:
  1. prospecting,
  2. communicating,
  3. servicing,
  4. and information gathering.
 

 

 

 

Personal Selling

Salespeople Have Many Names

 
  • •Agents
  • •Sales consultants
  • •Sales Representatives
  • •Account
    Executives
 

 
  • •Sales Engineers
  • •District Managers
  • •Marketing Representatives
  • •Account Development Representatives
 

 

Personal Selling
•The Role of the Sales Force
  • §Two-way personal communication
  • §More effective than advertising in complex selling situations
  • §The sales force plays a major role in most companies
  • §The sales force works to produce customer satisfaction and company profit.
 
 

 

Definitions
•Sales Force Management
  • §The analysis, planning, implementation, and control of sales force activities. It includes setting and designing sales force strategy; and recruiting, selecting, training, supervising, compensating, and evaluating the firm’s salespeople.
 
 

 

Managing the Sales Force
•Sales Force Strategy and Structure
§

Sales Force Structure

  •  Territorial sales force structure
  •  Product sales force structure
  •  Customer sales force structure
  •  Complex sales force structure
 
 

 

Managing the Sales Force
Sales Force Strategy and Structure
§Sales Force Size
  •  Many companies use the workload
     approach to set sales force size
§Other Issues
  •  Outside and inside sales forces
  •  Team selling
 

 

 

Managing the Sales Force
•Recruiting and Selecting Salespeople
  • §Careful recruiting can:
  1.  Increase overall sales force performance
  2.  Reduce turnover
  3.  Reduce recruiting and training costs
 
 

 

Managing the Sales Force

 
Traits of Successful Salespeople
  • •Enthusiasm
  • •Patience
  • •Initiative
  • •Self-Confidence
  • •Job Commitment
  • •Customer
    Orientation
  • •Independent
  • •Self-Motivated
  • •Excellent Listeners
  • •Friendly
  • •Persistent
  • •Attentive
  • •Honest
 

 
  • •Internally Motivated
  • •Relationship Oriented
  • •Disciplined
  • •Hardworking
  • •Team Players
 

 

 

Managing the Sales Force
Recruiting and Selecting Salespeople
  • §Recruiting involves:
     Soliciting applications
     Screening candidates
  1. – Interviews
  2. – Sales aptitude, personality, analytical
     and/or organizational tests
  3. – References, work history, etc.
 

 

 

Managing the Sales Force
•Training Salespeople
  • §Average training period is 4 months
  • §Training is expensive, but yields strong returns
  • §Training programs have many goals
  • §Many companies are adding Web-based sales training programs
 

 

Managing the Sales Force
•Compensating Salespeople
  • §Compensation elements: salary, bonuses, commissions, expenses, and fringe benefits
  • §Basic compensation plans:
  1.  Straight salary
  2.  Straight commission
  3.  Salary plus bonus
  4.  Salary plus commission
 
 

 

Managing the Sales Force
•Compensating Salespeople
  • §Compensation plans should direct the sales force toward activities that are consistent with overall marketing objectives.
  1.  Gain market  share
  2.  Solidify market  leadership
  3.  Maximize profitability
 
 

 

Managing the Sales Force
•Supervising Salespeople
  • §Effective supervisors provide direction to the sales force
  1.  Annual call plans and time-and-duty analysis can help provide direction
  2.  Sales force automation systems assist in creating more efficient sales force operations
  3.  The Internet is the fastest-growing sales
     technology tool
 

 

 

Managing the Sales Force
Supervising Salespeople
  • §Effective supervisors also motivate the sales force
  1.  Organizational climate
  2.  Sales quotas
  3.  Positive incentives
–       Sales meetings, sales contests, honors, etc.

 

 

Managing the Sales Force
•Evaluating Salespeople
  • §Several tools can be used
  1. v Sales reports
  2. v Call reports
  3. v Expense reports
 

 

 

The Personal Selling Process
Steps in the Selling Process
  • •Prospecting and Qualifying
  • •Preapproach
  • •Approach
  • •Presentation and Demonstration
  • •Handling Objections
  • •Closing

  • Follow-up

 

The Personal Selling Process
  • •Prospecting and Qualifying
  1. §Prospecting: identifying potential customers
  2. §Qualifying: Screening leads
  • •Pre-approach
  1. §Learning as much as possible about a prospective customer prior to making a sales call
  • •Approach
  1. §Stage where the salesperson meets the customer for the first time
 

 

 

The Personal Selling Process
  • •Presentation and Demonstration
  1. §Benefits of the product are presented/demonstrated
  2. §Understanding prospect needs is key
  • •Handling Objections
  • •Closing
  1. §Asking for the order
  • •Follow-up
  1. §Helps ensure customer  satisfaction

 

 

Direct Marketing
•Benefits of Direct Marketing to Buyers
  • §Convenient
  • §Easy to use
  • §Private
  • §Access to a wealth of information
  • §Immediate
  • §Interactive
 

 

Direct Marketing
Benefits of Direct Marketing to Sellers
  • §Powerful tool for building relationships
  • §Allows for targeting of small groups or individuals with customized offers in a personalized fashion
  • §Offers access to buyers that couldn’t be reached via other channels
  • §Low-cost, effective alternative for reaching specific markets
 

 

 

Direct Marketing
•Customer Databases & Direct Marketing
  • §Databases include customer profile, purchase history, and other detailed information
  • §Databases can be used to identify prospects, profile customers, and select customers to receive offers, and to build relationships
  • §Database marketing requires substantial investment in hardware, software, personnel
 

 

 

Direct Marketing
Forms of Direct Marketing
  • •Face-to-Face Selling
  • •Telemarketing
  • •Direct-Mail Marketing
 

 
  • •Catalog Marketing
  • •Kiosk Marketing
  • •Online Marketing
  • •Direct-Response TV Marketing
 

 

Direct Marketing
  • •Telephone Marketing
  • §New legislation and technological advances threaten the future of telemarketing
  • •Direct-Mail Marketing
  • §New trends include fax mail, e-mail, and voice mail
  • •Catalog Marketing
  • §Many cataloguers have migrated to the web

 

 

Direct Marketing
  • •Direct-Response Television Marketing
  1. §Direct-response advertising
  2. §Infomercials
  3. §Home shopping channels
  • •Kiosk Marketing
 

 

 

Direct Marketing
  • •Integrated Direct Marketing
  • •Public Policy and Ethical Issues
  1. §Irritation, Unfairness, Deception, and Fraud
  2. Invasion of Privacy
 

Chapter 17: Personal Selling and Direct Marketing

 

 

Study Guide
  • Concepts Check

 

Study Guide
  • Concepts Challenge

 

 
  • Chapter Outline

 

 
  • Video Case

 

 
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Chapter 17: Personal Selling and Direct Marketing

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