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Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
Chapter 19
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Chapter 19
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Chapter 19

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  • Summary Overview In serving a particular target market, one of the key elements of the promotion mix is personal selling. Salespeople are communicators who build relationships . Key Issues Personal selling is important to all companies. Salespeople must be able to meet customer needs and company expectations. It’s also economically important. Personal selling requires strategy decisions . Some of these are issues in managing the sales force, such as: (1) the number and kind of salespeople needed; (2) the technology support the salespeople need; (3) how to select and train salespeople, and (4) how to compensate and motivate them. In addition, salespeople and sales managers need to decide what specific personal selling techniques will be used in dealing with the organization’s customers and prospects. Helping customers make good buying decisions is good selling . In meeting customer needs, salespeople build lasting relationships with customers. Salespeople represent the whole company—and customers too . How the salesperson behaves is all many customers will ever know about the company. Discussion Question: How does this statement apply in financial services? The sales force aids in the market information function , providing feedback to the company on what customers think, feel, and want. Salespeople can be strategy planners , making decisions every day about how to manipulate promotional mix elements to fit the needs of their customers. This slide relates to material on pp. 396-398.  Indicates place where slide “builds” to include the corresponding point.      
  • Summary Overview Marketing managers recognize that effective personal selling involves successful completion of a number of activities, and establishing a balance between the right number and the right kind of salespeople. Therefore, it is important for marketers to understand the basic sales tasks that are to be performed. Key Issues Personal selling is divided into three tasks . These basic sales tasks are: order-getting; order-taking; and supporting. Order getters and order takers obtain orders on behalf of a company. Supporting salespeople are not directly interested in orders; their function is to help the order-oriented salespeople. In some cases, a single salesperson will do all three tasks. In other cases, particularly in large companies that depend heavily on personal selling, the tasks are divided among a number of sales professionals. Discussion Question: What are the pros and cons of having a salesperson perform all three basic tasks, compared to dividing the tasks up among several salespeople? This slide relates to material on p. 399.  Indicates place where slide “builds” to include the corresponding point.   
  • Summary Overview Order getters : are concerned with establishing business relationships with new customers and developing new business. Order-getting : seeking possible buyers with a well-organized sales presentation designed to sell a good, service, or idea. Key Issues Order getters must be experts about every aspect of their products. Producers’ order getters find new market opportunities —new prospects, new accounts, and new channels of distribution. Good order getters are problem solvers. Many producers give their order getters special training so they will understand their customers’ needs and the products that need to be sold. Discussion Question: In selling services, the customer cannot inspect the service before purchase. How can an order-getting sales rep get the consumer to buy a service sight unseen? Wholesalers’ order getters work closely with retailers. In a sense, they almost hand the product to the customer . They may be involved in training retail employees, doing product demonstrations, working on retail promotions, and other activities. Retail order getters influence consumer behavior and help to move products from the market introduction stage to the market growth stage of the product life cycle, especially for heterogeneous shopping products. This slide relates to material on pp. 399-401.  Indicates place where slide “builds” to include the corresponding point.    
  • Summary Overview Order takers : sell to regular customers, completing sales transactions and maintaining relationships. Order-taking : the routine completion of sales made regularly to target customers. Key Issues Order takers need to be highly trained, competent individuals. Order-taking activities can make the difference between keeping and losing a customer. Producers’ order takers train, explain and collaborate . They work on improving the whole relationship with the customer. Even if computers handle routine reorders, someone has to perform basic tasks such as making adjustments, handling complaints, and keeping customers informed of new developments. Wholesalers’ order takers are involved not in getting orders but in keeping them . Wholesale order takers may have to deal with thousands of items. As a result, they often keep in contact with customers on a regular basis and fulfill any needs that arise, as opposed to selling any particular item. Retail order takers are often poor salesclerks who are not paid or trained well. Knowledgeable, courteous, helpful salesclerks can play an important role in a retailer’s marketing mix. Discussion Question: Why do you think that retailers do not place more emphasis on training and compensating retail order takers? This slide relates to material on p. 401.  Indicates place where slide “builds” to include the corresponding point.    
  • Summary Overview Supporting salespeople help the order-oriented salespeople but they don’t try to get orders themselves. Their activities, such as providing specialized services and information, are aimed at enhancing the relationship with the customer and getting sales in the long run. Key Issues Missionary salespeople : supporting salespeople who work for producers by calling on their middlemen and customers. Missionary salespeople can increase sales by creating goodwill, providing training, and performing other activities. This position is often used as a training ground for new salespeople. Technical specialists : provide technical know-how in support of order-oriented salespeople. Technical specialists are experts who know product applications , and they often have science or engineering backgrounds. They are more concerned with providing technical details about products than in persuading customers to place orders. Discussion Question: How important are good communication skills for technical specialists? Explain. Customer service reps : work with customers to resolve problems that arise after a purchase. Every marketing-oriented company need good people to handle customer service. This slide relates to material on pp. 402-403.  Indicates place where slide “builds” to include the corresponding point.   
  • Summary Overview The focus of customer service is on the service that is required to solve a problem that a customer encounters with a purchase. Key Issues Customer service is part of promotion . A firm should view customer service reps as a key part of personal selling. Regardless of whether the firm or the customer causes the problem, customer service reps need to be effective communicators, have good judgment, and realize that they are advocates not only for their firm, but also for its customers . Discussion Question: Think of an experience that you have had recently where you had a problem with a purchase and you contacted the company about the problem. How was it handled? Were you satisfied? If not, did you tell friends and/or family about the experience? This slide relates to material on pp. 403-404.  Indicates place where slide “builds” to include the corresponding point.   
  • This slide relates to material on pp. 404-406.  Indicates place where slide “builds” to include the corresponding point.       Summary Overview The sales manager must organize the sales force so that all necessary tasks are performed well. If different people handle different sales tasks, firms often rely on team selling—when different people work together on a specific account . Key Issues Different target markets need different selling tasks. –Managers often have different sales forces for different target markets who have different support or information needs. For example, big accounts often get special treatment from a major accounts sales force. . Discussion Question: What are the advantages of having a separate sales force for big accounts? Are there any disadvantages? Some salespeople specialize in telephone selling . Telemarketing is quick and inexpensive and can provide a way to serve customers who would otherwise be too expensive to support. Sales tasks are done in sales territories . Sales territory : a geographic area that is the responsibility of one salesperson or several working together. Managers must weigh distance, number of customers, the complexity of account service, and the potential profitability in setting up sales territories. The size of the sales force depends on workload per salesperson . Assessing the workload evaluates the time required for sales tasks as well as the number of customers and other important market factors..
  • Summary Overview Selecting a sales presentation approach is not the end of the personal selling process. The salesperson has to make the presentation, close the sale, and follow up after the sale. Key Issues The AIDA model —attention, interest, desire, and action— can help plan sales presentations . It is necessary to get the customer’s attention at the start of a presentation and move to getting the customer to take action. Generating interest, answering problems and objections, and arousing desire are all critical. Presentations should end with a close -- here the salesperson asks for the customer’s business. The best salespeople learn how to close effectively. Whether the presentation ends in a sale or a request for more information, the salesperson should take care to follow up and contact the customer again soon after the call. As in other areas of the promotion mix, ethical issues may arise in personal selling. Obviously, the truthfulness of the salesperson is important. Discussion Question: Is a company ever served well by dishonest salespeople, even if the questionable practices result in high sales volume? Explain. Problems are less likely to arise if a salesperson emphasizes the fulfillment of customer needs and building a long-term relationship. Top management and marketing or sales managers set the ethical tone for the sales force. This slide relates to material on pp. 418-419.  Indicates place where slide “builds” to include the corresponding point.   
  • Summary Overview To recruit and keep good salespeople, a firm must design an attractive compensation package that also motivates salespeople to become top performers. The key is to match what people want to do and what interests them with the needs of the company. Key Issues Two basic decisions must be made in developing a compensation plan: the level of compensation, and the method of payment. Regarding the level of compensation, the amount of money a person can make should be at least comparable to competitors’ compensation. Compensation varies with the job and needed skills . Payment methods also vary . Salespeople are typically compensated by: straight salary; straight commission--a percentage of sales, or some combination of salary and commission. Discussion Question: Which one of these plans would provide the most security? Which one would provide the most incentive? Combination plans are most common. This slide relates to material on pp. 412-414.  Indicates place where slide “builds” to include the corresponding point.    
  • Summary Overview Limitations on working capital or market uncertainty may compel a company to choose a straight commission plan, or combination plan with a large commission component. That way, total selling expense goes up only if salespeople actually bring in customers and revenue. Key Issues This exhibit illustrates that straight salary is simple to understand and administer. It’s the same regardless of sales. Commission is more complicated but can add flexibility. As sales volume increases, sales costs: increase at the fastest rate for a straight commission plan; increase at a lesser rate for a combination plan; and remain constant with a straight commission plan. Compensation plans should be clear . Salespeople need to see the link between effort and income. Although straight salary plans provide the most simplicity, sales managers often sacrifice some simplicity to achieve control, incentive, and flexibility. Discussion Question: What would be the simplest compensation plan—straight salary, straight commission, or a combination plan? Why? Sales managers must plan, implement, and control the compensation plan. This slide relates to material on p. 414.
  • Transcript

    • 1. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling Marketing Management, 13 th ed 19
    • 2. Chapter Questions
      • How can companies integrate direct marketing for competitive advantage?
      • How can companies do effective interactive marketing?
      • How can marketers best take advantage of the power of word of mouth?
      • What decisions do companies face in designing and managing a sales force?
      • How can salespeople improve selling, negotiating, and relationship marketing skills?
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 3. Direct Marketing Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.
    • 4. Direct Marketing Channels Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Catalogs Direct mail Telemarketing Web sites Email marketing Mobile devices Interactive TV
    • 5. Constructing a Direct-Mail Campaign
      • Establish objectives
        • to receive an order from prospects (response rate-2% normally),
        • to produce prospect leads,
        • to strengthen customer relationships,
        • to inform and educate customers,
        • to remind customers of offers,
        • to reinforce recent customer purchase decisions
      • Select target prospects
        • recency—30 to 60 days
        • frequency
        • monetary amount
      • Develop offer elements
      • Test elements
        • products
        • product features
        • copy platform
        • mailer type
        • prices
        • mailing lists
      • Execute
      • Measure success —campaign costs minus revenue
      19-
    • 6. RFM Formula for Selecting Prospects Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Recency—last order Frequency—number of times purchased Monetary value-- money spent since becoming a customer
    • 7. Elements of the Offer Strategy
      • Product
      • Offer
      • Medium
      • Distribution method
      • Creative strategy
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 8. Components of the Mailing
      • Outside envelope
        • Illustration (color)
      • Sales letter
        • Personal, quality paper, bold type
      • Circular
        • colorful
      • Reply form
        • Toll-free number, website
      • Reply envelope
        • Postage-free
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 9. Types of Telemarketing
      • Telesales
        • Taking orders from catalogs or ads and outbound calls
      • Telecoverage
        • Call customers to maintain and nurture key account relationships and neglected accounts
      • Teleprospecting
        • Generating and qualifying new leads for closure by another sales channel
      • Customer service and technical support
        • Answering service and technical questions
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 10. Other Media for Direct Response Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
      • Television
      • Direct Response Advertising
        • Infomercials
      • At-home shopping channels
        • TV channels dedicated to selling goods
      • Videotext
        • Consumer’s TV set linked with seller’s catalog by cable or telephone line
      • Kiosks
        • Small building or structure to sell or provide information
    • 11. Public Issues in Direct Marketing Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Irritation--timing Unfairness- impulsive or less sophisticated buyers Deception/fraud-mislead buyers Invasion of privacy- names included on several databases
    • 12. Interactive Marketing
      • Tailored messages possible
      • Easy to track responsiveness
      • Contextual ad placement possible
      • Search engine advertising possible
      • Subject to click fraud
      • Consumers develop selective attention
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 13. e-Marketing Guidelines
      • Give the customer a reason to respond
      • Personalize the content of your emails
      • Offer something the customer could not get via direct mail
      • Make it easy for customers to unsubscribe
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 14. Online Ads
      • Banner ads-- small, rectangular boxes containing text and maybe a picture
      • Microsites-- limited area on web (e.g., insurance on an used car website)
      • Sponsorships-- pays for showing content and is acknowledged
      • Interstitials-- ads that pop-up between changes on website
      • Search-related ads-- search terms that charge for cost per click
      • Content-targeted advertising-- links ad to content of webpage
      • Alliances-- advertising each other on their respective website
      • Affiliate programs-- post ads on affiliate websites
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 15. Ease of Use and Attractiveness
      • Ease of Use
        • Downloads quickly
        • First page is easy to understand
        • Easy to navigate
      • Attractiveness
        • Clean looking
        • Not overly crammed with content
        • Readable fonts
        • Good use of color and sound
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 16. Designing an Attractive Web Site
      • Context -- Layout & design
      • Content --Text, picture, sound, video
      • Community --user-to-user communication
      • Customization —tailor to user or allow personalization
      • Communication —enables site-to-user, user-to-site, or two-way communication
      • Connection —ability to link to other sites
      • Commerce —ability to enable commercial transactions
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 17. iTunes Affiliate Program Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 18. Increasing Visits and Site Stickiness
      • In-dept information with links
      • Changing news of interest
      • Changing offers
      • Contests and sweepstakes
      • Humor and jokes
      • Games
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 19. How to Start Buzz
      • Identify influential individuals and companies and devote extra effort to them
      • Supply key people with product samples
      • Work through community influentials
      • Develop word-of-mouth referral channels to build business
      • Provide compelling information that customers want to pass along
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 20. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Sales force provides market information Salespeople represent whole company Requires strategy decisions Helping to buy is good selling The Importance and Role of Personal Selling Personal Selling Is Important Salespeople represent whole company Sales force provides market information Helping to buy is good selling Requires strategy decisions Salespeople can be strategy planners
    • 21. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- What Kinds of Personal Selling Are Needed? Order-Taking Order-Taking Order-Getting Order-Getting Supporting Basic Sales Tasks
    • 22. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Wholesalers’ Order Getters Work Closely with Retailers Producers’ Order Getters Find New Opportunities Order Getters and Order-Getting Order Getters Develop New Business Relationships Wholesalers’ Order Getters Work Closely with Retailers Producers’ Order Getters Find New Opportunities Order Getters and Order-Getting Retail Order Getters Influence Buyer Behavior
    • 23. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Wholesalers’ Order Takers Don’t Get Orders But Keep Them Producers’ Order Takers Train, Explain & Collaborate Order Takers and Order-Taking Order Takers Nurture Relationships to Keep the Business Coming Wholesalers’ Order Takers Don’t Get Orders But Keep Them Producers’ Order Takers Train, Explain & Collaborate Order Takers and Order-Taking Retail Order Takers Are Often Poor Sales Clerks
    • 24. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Technical Specialists Missionary Salespeople (good will and educate) Supporting Sales Tasks Supporting Sales Force Informs and Promotes in the Channel Technical Specialists (technical assistance) Missionary Salespeople Customer Service Reps ( resolve problems with a purchase)
    • 25. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Solves problems after a purchase Technical Specialists What is Customer Service? Customer Service Promotes the Next Purchase Solves problems after a purchase Part of promotion Reps are customer advocates
    • 26. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Sales Territories Telemarketing Major Accounts Sales Force Different Markets, Different Tasks Team Selling The Right Structure Helps Assign Responsibility Sales Territories Telemarketing Major Accounts Sales Force Different Markets, Different Tasks Team Selling Sales Force Size and Workload
    • 27. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Key Steps in the Personal Selling Process
    • 28. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Straight Commission Straight Salary Compensating and Motivating Salespeople Straight Commission Straight Salary Level of Compensation Method of Payment Level of Compensation Method of Payment Combination Plan
    • 29. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19- Flexibility vs. Simplicity
    • 30. Study Question 1
      • Direct marketing channels include direct mail, catalogs, Web sites, interactive TV, and ____________
        • Telemarketing
        • Billboards
        • Coupons
        • Bounce-back coupons
        • None of the above
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 31. Study Question 2
        • In constructing an effective direct-mail campaign, marketers must decide on their objectives, target markets, and prospects; offer elements; means of testing the campaign; and _________
          • Sales promotions
          • Advertising campaign
          • Salespeople’s input
          • Measures of campaign success
          • Management’s input
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 32. Study Question 3
      • A direct-mail campaign that has an order-response rate of ________ is considered a success.
        • 10%
        • 3%
        • 15%
        • 2%
        • 5%
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 33. Study Question 4
      • Direct marketers use a number of channels to reach prospects, including ___________
        • Direct mail
        • Catalog marketing
        • Telemarketing
        • Kiosk marketing
        • All of the above
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-
    • 34. Study Question 5
      • Direct marketing permits the ________ of alternative media and messages in search of the most cost-effective approach.
        • Testing
        • Use
        • Implementation
        • Outsourcing
        • Accent
      Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 19-

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