Chapter Thirteen Communicating Customer Value:

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  • 1. Chapter Thirteen Communicating Customer Value: Personal Selling and Direct Marketing
  • 2.
    • Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.
    • Identify and explain the six major sales force management steps.
    • Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.
    • Define direct marketing and discuss its benefits to customers and companies.
    • Identify and discuss the major forms of direct marketing.
  • 3.
    • Background
    • Nation’s largest reseller of technology products and services to small and mid-size businesses.
    • Since 2000, sales up 48% to $5.7 billion and profits up 15% annually.
    • Highly devoted to customer with “Circle of Service” philosophy.
    Case Study
    • Personal Selling’s Role
    • “ Clicks & people” strategy combines personal selling with strong Web presence.
    • Salespeople build and manage relationships by being trusted advisors.
    • Training is extensive as salespeople must be knowledgeable and customer focused.
    CDW – Relationship Building Success
  • 4. The Nature of Personal Selling
    • Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relationships.
    • The term salesperson covers a wide range of positions:
      • Order taker: Department store clerk
      • Order getter: Creative selling in different environments
  • 5. The Role of the Sales Force
    • Personal selling is a paid, personal form of promotion.
      • Involves two-way personal communication between salespeople and individual customers.
    • Salespeople:
      • Probe customers to learn about problems.
      • Adjust marketing offers to fit special needs.
      • Negotiate terms of sales.
      • Build long-term personal relationships.
  • 6. The Role of the Sales Force
    • Sales force serves as critical link between company and its customers.
      • They represent the company to the customers.
      • They represent the customers to the company.
      • Goal = customer satisfaction and company profit.
  • 7. Sales Force Management
    • The analysis, planning, implementation, and control of sales force activities.
    • Includes:
      • Designing sales force strategy & structure
      • Recruiting and selecting salespeople
      • Training salespeople
      • Compensating salespeople
      • Supervising salespeople
      • Evaluating salespeople
  • 8. Sale Force Structure
    • Territorial:
      • Salesperson assigned to exclusive area and sells full line of products.
    • Product:
      • Sales force sells only certain product lines.
    • Customer:
      • Sales force organized by customer or industry.
    • Complex:
      • Combination of several types of structures.
  • 9. Outside & Inside Sales Forces
    • An outside sales force travels to call on customers in the field.
    • An inside sales force conducts business from their offices via telephone or visits from perspective buyers.
      • Includes:
        • Technical support people
        • Sales assistants
        • Telemarketers
  • 10. Team Selling
    • Used to service large, complex accounts.
    • Can find problems, solutions, and sales opportunities that no single person could.
    • Can include experts from different areas of selling firm.
    • Pitfalls:
      • Can confuse or overwhelm customers.
      • Some people have trouble working in teams.
      • Hard to evaluate individual contributions.
  • 11. Successful Salespeople
    • Careful selection can greatly enhance overall sales force performance while minimizing costly turnover.
    • Key talents of successful salespeople:
      • Intrinsic motivation.
      • Disciplined work style.
      • Ability to close a sale.
      • Ability to build relationships with customers.
  • 12. Recruiting Salespeople
    • Searching the Web
    • College placement services
    • Recruit from other companies
    • Recommendations from current sales force
    • Employment agencies
    • Classified ads
  • 13. Sales Force Training Goals
    • Learn about different types of customers and their needs, buying motives, and buying habits.
    • Learn how to make effective sales presentations.
    • Learn about and identify with the company, its products and its competitors.
  • 14. Compensating Salespeople
    • Fixed amount:
      • Salary
    • Variable amount:
      • Commissions or bonuses
    • Expenses:
      • Repays for job-related expenditures
    • Fringe benefits:
      • Vacations, sick leave, pension, etc.
  • 15. Supervising Salespeople
    • Goal of supervision is to encourage salespeople to “work smart.”
      • Help them identify customers and set call norms.
      • Specify time to be spent prospecting:
        • Annual call plan
        • Time-and-duty analysis
        • Sales force automation systems
  • 16. Motivating Salespeople
    • Goal of motivating sales force is to encourage salespeople to “work hard.”
      • Organizational climate.
      • Sales quotas.
      • Positive incentives:
        • Sales meetings
        • Sales contests
        • Recognition and honors
        • Cash awards, trips, profit sharing
  • 17. The Personal Selling Process
    • Prospecting:
      • The salesperson identifies qualified potential customers (called prospects).
    • Preapproach:
      • The salesperson learns as much as possible about a prospect before making a sales call.
    • Approach:
      • The salesperson meets the customer for the first time.
    • Presentation:
      • The salesperson tells the “product story” to the buyer, highlighting customer benefits.
  • 18. The Personal Selling Process
    • Handling Objections:
      • The salesperson seeks out, clarifies, and overcomes customer objections to buying.
    • Closing:
      • The salesperson asks the customer for an order.
    • Follow-up:
      • The salesperson follows up after the sale to ensure customer satisfaction and repeat business.
    • The selling process is transaction oriented; most firms go beyond this and attempt to build mutually profitable relationships.
  • 19. Direct Marketing
    • Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
      • One-on-one communication in which offers are tailored to needs of narrowly defined segments.
      • Usually seeks a direct, immediate, and measurable consumer response.
  • 20. The New Direct-Marketing Model
    • Some firms use direct marketing as a supplemental medium.
    • For many companies, direct marketing constitutes a new and complete model for doing business.
    • Some firms employ the direct model as their only approach.
    • Some see this as the new marketing model of thismillennium.
  • 21. Benefits of Direct Marketing
    • Benefits to Buyers:
      • Convenient.
      • Easy to use.
      • Private.
      • Ready access to products and information.
      • Immediate and interactive.
  • 22. Benefits of Direct Marketing
    • Benefits to Sellers:
      • Powerful tool for building customer relationships.
      • Can target small groups or individuals.
      • Can tailor offers to individual needs.
      • Can be timed to reach prospects at just the right moment.
      • Gives access to buyers they could not reach through other channels.
      • Offers a low-cost, efficient way to reach markets.
  • 23. Customer Databases
    • An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.
  • 24. Direct Marketing Forms
    • Telephone marketing
    • Direct-mail marketing
    • Catalog marketing
    • Direct-response TV marketing
    • Kiosk marketing
    • Online marketing
  • 25. Telemarketing
    • Used in both consumer and B2B markets.
    • Can be outbound or inbound calls.
    • Do-Not-Call legislation has impacted the telemarketing industry.
  • 26. Direct-Mail Marketing
    • Involves sending an offer, reminder, announcement, or other item to a person at a particular address.
    • Permits high target-market selectivity.
    • An be personalized, and is flexible.
    • Higher CPM yields better prospects than mass media.
    • Easy to measure results.
  • 27. Catalog Marketing
    • With the Internet, more and more catalogs are going digital.
    • Print catalogs still the primary medium.
    • Expected sales in 2008 = $175 billion.
    • Web catalogs have specific advantages and disadvantages when compared to printed catalogs.
  • 28. Direct Response TV Marketing
    • Direct-response advertising:
      • TV spots that are 60 or 120 seconds long.
    • Infomercials:
      • A 30 minute or longer advertising program for a single product.
    • Home shopping channels:
      • Entire cable channels dedicated to selling multiple brands, items, and services.
  • 29. Kiosk Marketing
    • Information and ordering machines generally found in stores, airports, and other locations.
      • Example: In-store Kodak kiosks allow customers to transfer pictures from digital storage devices, edit them, and produce high-quality color prints.
  • 30. Integrated Direct Marketing
    • Involves carefully coordinated multiple-media, multiple-stage campaigns.
      • Marketers try to improve response rates and profits by adding media and stages that contribute more to additional sales than to additional costs.
      • Example: Integrating a paid ad with response channel (Web or phone), direct mail, outbound telemarketing, face-to-face sales call, continuing communication.
  • 31. Public Policy and Ethical Issues in Direct Marketing
    • Irritating to consumers
    • Taking unfair advantage of impulsive or less sophisticated buyers
    • Targeting TV-addicted shoppers
    • Deception, fraud
    • Invasion of privacy
  • 32.
    • Discuss the role of a company’s salespeople in creating value for customers and building customer relationships.
    • Identify and explain the six major sales force management steps.
    • Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing.
    • Define direct marketing and discuss its benefits to customers and companies.
    • Identify and discuss the major forms of direct marketing.