Integrated Marketing Communication:  Personal Selling and Direct Marketing Chapter 13
Road Map: Previewing the Concepts <ul><li>Discuss the role of a company’s salespeople in creating value for customers and ...
<ul><li>Define direct marketing and discuss its benefits to customers and companies. </li></ul><ul><li>Identify and discus...
The Nature of Personal Selling <ul><li>Most salespeople are well-educated, well-trained professionals who work to build an...
The Role of the Sales Force <ul><li>Personal selling is a paid, personal form of promotion. </li></ul><ul><li>Involves two...
The Role of the Sales Force <ul><li>Sales Force serves as critical link between company and its customers. </li></ul><ul><...
Sale Force Structure <ul><li>Territorial : Salesperson assigned to exclusive area and sells full line of products. </li></...
Inside Sales Force <ul><li>Conduct business from their offices via telephone or visits from perspective buyers. </li></ul>...
Selling Team <ul><li>Used to service large, complex accounts. </li></ul><ul><li>Can include experts from different areas o...
Recruiting and Selecting Salespeople <ul><li>Key talents of salespeople: </li></ul><ul><ul><li>Intrinsic motivation </li><...
Recruiting Salespeople <ul><li>Recommendations from current sales force </li></ul><ul><li>Employment agencies </li></ul><u...
Sales Force Training Goals <ul><li>Learn about and identify with the company. </li></ul><ul><li>Learn about the company’s ...
Compensating Salespeople <ul><li>Fixed amount:  </li></ul><ul><ul><li>Salary  </li></ul></ul><ul><li>Variable amount: </li...
Supervising Salespeople <ul><li>Directing Salespeople </li></ul><ul><ul><li>Help them identify customers and set call norm...
Supervising Salespeople <ul><li>Motivating Salespeople </li></ul><ul><ul><li>Organizational climate </li></ul></ul><ul><ul...
The Personal Selling Process <ul><li>Prospecting:  The salesperson identifies qualified potential customers. </li></ul><ul...
The Personal Selling Process <ul><li>Handling Objections:  The salesperson seeks out, clarifies, and overcomes customer ob...
Direct Marketing <ul><li>Direct marketing consists of direct connections with carefully targeted individual consumers to b...
The New Direct-Marketing Model <ul><li>Some firms use direct marketing as a supplemental medium. </li></ul><ul><li>For man...
Benefits of Direct Marketing <ul><li>Benefits to Buyers: </li></ul><ul><ul><li>Convenient </li></ul></ul><ul><ul><li>Easy ...
Benefits of Direct Marketing <ul><li>Benefits to Sellers: </li></ul><ul><ul><li>Powerful tool for building customer relati...
Customer Databases <ul><li>An organized collection of comprehensive data about individual customers or prospects, includin...
Telemarketing <ul><li>Accounts for more than 36% of all direct-marketing sales. </li></ul><ul><li>Used in both consumer an...
Direct-Mail Marketing <ul><li>Involves sending an offer, announcement, reminder, or other item to a person at a particular...
Catalog Marketing <ul><li>With the Internet, more and more catalogs going electronic. </li></ul><ul><li>Print catalogs sti...
Direct Response TV Marketing <ul><li>Direct-response advertising </li></ul><ul><li>Infomercials </li></ul><ul><li>Home sho...
Kiosk Marketing <ul><li>Information and ordering machines generally found in stores, airports, and other locations. </li><...
Public Policy and Ethical Issues in Direct Marketing <ul><li>Irritation to Consumers </li></ul><ul><li>Taking unfair advan...
Rest Stop: Reviewing the Concepts <ul><li>Discuss the role of a company’s salespeople in creating value for customers and ...
Rest Stop: Reviewing the Concepts <ul><li>Define direct marketing and discuss its benefits to customers and companies. </l...
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Integrated Marketing Communication: Personal Selling and ...

  1. 1. Integrated Marketing Communication: Personal Selling and Direct Marketing Chapter 13
  2. 2. Road Map: Previewing the Concepts <ul><li>Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. </li></ul><ul><li>Identify and explain the six major sales force management steps. </li></ul><ul><li>Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. </li></ul>
  3. 3. <ul><li>Define direct marketing and discuss its benefits to customers and companies. </li></ul><ul><li>Identify and discuss the major forms of direct marketing. </li></ul>Road Map: Previewing the Concepts
  4. 4. The Nature of Personal Selling <ul><li>Most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relationships. </li></ul><ul><li>The term salesperson covers a wide range of positions: </li></ul><ul><ul><li>Order taker: Department store clerk </li></ul></ul><ul><ul><li>Order getter: Creative selling in different environments </li></ul></ul>
  5. 5. The Role of the Sales Force <ul><li>Personal selling is a paid, personal form of promotion. </li></ul><ul><li>Involves two-way personal communication between salespeople and individual customers. </li></ul><ul><li>Salespeople: </li></ul><ul><ul><li>Probe customers to learn about problems </li></ul></ul><ul><ul><li>Adjust marketing offers to fit special needs </li></ul></ul><ul><ul><li>Negotiate terms of sales </li></ul></ul><ul><ul><li>Build long-term personal relationships </li></ul></ul>
  6. 6. The Role of the Sales Force <ul><li>Sales Force serves as critical link between company and its customers. </li></ul><ul><ul><li>They represent the company to the customers </li></ul></ul><ul><ul><li>They represent the customers to the company </li></ul></ul><ul><ul><li>Goal = customer satisfaction and company profit </li></ul></ul>
  7. 7. Sale Force Structure <ul><li>Territorial : Salesperson assigned to exclusive area and sells full line of products. </li></ul><ul><li>Product : Sales force sells only certain product lines. </li></ul><ul><li>Customer : Sales force organizes along customer or industry lines. </li></ul><ul><li>Complex : Combination of several types of structures. </li></ul>
  8. 8. Inside Sales Force <ul><li>Conduct business from their offices via telephone or visits from perspective buyers. </li></ul><ul><li>Includes: </li></ul><ul><ul><li>Technical support people </li></ul></ul><ul><ul><li>Sales assistants </li></ul></ul><ul><ul><li>Telemarketers </li></ul></ul>
  9. 9. Selling Team <ul><li>Used to service large, complex accounts. </li></ul><ul><li>Can include experts from different areas of selling firm. </li></ul><ul><li>Pitfalls: </li></ul><ul><ul><li>Can confuse or overwhelm customers </li></ul></ul><ul><ul><li>Some people have trouble working in teams </li></ul></ul><ul><ul><li>Hard to evaluate individual contributions </li></ul></ul>
  10. 10. Recruiting and Selecting Salespeople <ul><li>Key talents of salespeople: </li></ul><ul><ul><li>Intrinsic motivation </li></ul></ul><ul><ul><li>Disciplined work style </li></ul></ul><ul><ul><li>Ability to close a sale </li></ul></ul><ul><ul><li>Ability to build relationships with customers </li></ul></ul>
  11. 11. Recruiting Salespeople <ul><li>Recommendations from current sales force </li></ul><ul><li>Employment agencies </li></ul><ul><li>Classified ads </li></ul><ul><li>Web searches </li></ul><ul><li>College students </li></ul><ul><li>Recruit from other companies </li></ul>
  12. 12. Sales Force Training Goals <ul><li>Learn about and identify with the company. </li></ul><ul><li>Learn about the company’s products. </li></ul><ul><li>Learn customers’ and competitors’ characteristics. </li></ul><ul><li>Learn how to make effective presentations. </li></ul><ul><li>Learn field procedures and responsibilities. </li></ul>
  13. 13. Compensating Salespeople <ul><li>Fixed amount: </li></ul><ul><ul><li>Salary </li></ul></ul><ul><li>Variable amount: </li></ul><ul><ul><li>Commissions or bonuses </li></ul></ul><ul><li>Expenses: </li></ul><ul><ul><li>Repays for job-related expenditures </li></ul></ul><ul><li>Fringe benefits: </li></ul><ul><ul><li>Vacations, sick leave, pension, etc. </li></ul></ul>
  14. 14. Supervising Salespeople <ul><li>Directing Salespeople </li></ul><ul><ul><li>Help them identify customers and set call norms. </li></ul></ul><ul><ul><li>Specify time to be spent prospecting </li></ul></ul><ul><ul><ul><li>Annual call plan </li></ul></ul></ul><ul><ul><ul><li>Time-and-duty analysis </li></ul></ul></ul><ul><ul><ul><li>Sales force automation systems </li></ul></ul></ul>
  15. 15. Supervising Salespeople <ul><li>Motivating Salespeople </li></ul><ul><ul><li>Organizational climate </li></ul></ul><ul><ul><li>Sales quotas </li></ul></ul><ul><ul><li>Positive incentives: </li></ul></ul><ul><ul><ul><li>Sales meetings </li></ul></ul></ul><ul><ul><ul><li>Sales contests </li></ul></ul></ul><ul><ul><ul><li>Recognition and honors </li></ul></ul></ul><ul><ul><ul><li>Cash awards, trips, profit sharing </li></ul></ul></ul>
  16. 16. The Personal Selling Process <ul><li>Prospecting: The salesperson identifies qualified potential customers. </li></ul><ul><li>Preapproach: The salesperson learns as much as possible about a prospective customer before making a sales call. </li></ul><ul><li>Approach: The salesperson meets the customer for the first time. </li></ul><ul><li>Presentation: The salesperson tells the “product story” to the buyer, highlighting customer benefits. </li></ul>
  17. 17. The Personal Selling Process <ul><li>Handling Objections: The salesperson seeks out, clarifies, and overcomes customer objections to buying. </li></ul><ul><li>Closing: The salesperson asks the customer for an order. </li></ul><ul><li>Follow-up: The salesperson follows up after the sale to ensure customer satisfaction and repeat business. </li></ul>
  18. 18. Direct Marketing <ul><li>Direct marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. </li></ul>
  19. 19. The New Direct-Marketing Model <ul><li>Some firms use direct marketing as a supplemental medium. </li></ul><ul><li>For many companies, direct marketing constitutes a new and complete model for doing business. </li></ul><ul><li>Some firms employ the direct model as their only approach. </li></ul><ul><li>Some see this as the new marketing model of the next millennium. </li></ul>
  20. 20. Benefits of Direct Marketing <ul><li>Benefits to Buyers: </li></ul><ul><ul><li>Convenient </li></ul></ul><ul><ul><li>Easy to use </li></ul></ul><ul><ul><li>Private </li></ul></ul><ul><ul><li>Ready access to products and information </li></ul></ul><ul><ul><li>Immediate and interactive </li></ul></ul>
  21. 21. Benefits of Direct Marketing <ul><li>Benefits to Sellers: </li></ul><ul><ul><li>Powerful tool for building customer relationships </li></ul></ul><ul><ul><li>Can target small groups or individuals </li></ul></ul><ul><ul><li>Can tailor offers to individual needs </li></ul></ul><ul><ul><li>Can be timed to reach prospects at just the right moment </li></ul></ul><ul><ul><li>Gives access to buyers they could not reach through other channels </li></ul></ul><ul><ul><li>Offers a low-cost, efficient way to reach markets </li></ul></ul>
  22. 22. Customer Databases <ul><li>An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data. </li></ul>
  23. 23. Telemarketing <ul><li>Accounts for more than 36% of all direct-marketing sales. </li></ul><ul><li>Used in both consumer and B2B markets. </li></ul><ul><li>Can be outbound or inbound calls. </li></ul>
  24. 24. Direct-Mail Marketing <ul><li>Involves sending an offer, announcement, reminder, or other item to a person at a particular address. </li></ul><ul><li>Accounts for more than 31% of direct-marketing sales. </li></ul><ul><li>Permits high target-market selectivity. </li></ul><ul><li>Personal and flexible. </li></ul><ul><li>Easy to measure results. </li></ul>
  25. 25. Catalog Marketing <ul><li>With the Internet, more and more catalogs going electronic. </li></ul><ul><li>Print catalogs still the primary medium. </li></ul><ul><li>Expected sales in 2008 = $176 billion. </li></ul><ul><li>Harder to attract new customers with Internet catalogs. </li></ul>
  26. 26. Direct Response TV Marketing <ul><li>Direct-response advertising </li></ul><ul><li>Infomercials </li></ul><ul><li>Home shopping channels </li></ul>
  27. 27. Kiosk Marketing <ul><li>Information and ordering machines generally found in stores, airports, and other locations. </li></ul>
  28. 28. Public Policy and Ethical Issues in Direct Marketing <ul><li>Irritation to Consumers </li></ul><ul><li>Taking unfair advantage of impulsive or less sophisticated buyers </li></ul><ul><li>Targeting TV-addicted shoppers </li></ul><ul><li>Deception, Fraud </li></ul><ul><li>Invasion of Privacy </li></ul>
  29. 29. Rest Stop: Reviewing the Concepts <ul><li>Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. </li></ul><ul><li>Identify and explain the six major sales force management steps. </li></ul><ul><li>Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. </li></ul>
  30. 30. Rest Stop: Reviewing the Concepts <ul><li>Define direct marketing and discuss its benefits to customers and companies. </li></ul><ul><li>Identify and discuss the major forms of direct marketing. </li></ul>
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