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Personal selling is effective because salespeople can:
probe customers to learn more about their problems,
adjust the marketing offer to fit the special needs of each customer,
negotiate terms of sale, and
build long-term personal relationships with key decision makers.
The Role of the Sales Force Sales Force Serves as a Critical Link Between a Company and its Customers Since They: Represent Customers to the Company to Produce Customer Satisfaction Represent the Company to Customers to Produce Company Profit
Some Traits of Good Salespeople Self-Confidence Initiative Persistence Enthusiam Job Commitment
Step 1. Prospecting and Qualifying Steps in the Selling Process Step 2. Pre-approach Step 3. Approach Step 4. Presentation/ Demonstration Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product “Story” to the Buyer, and Showing the Product Benefits.
Steps in the Selling Process Step 5. Handling Objections Step 6. Closing Step 7. Follow-Up Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Asking the Customer for the Order . Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.
Alternative Steps: Find ’em Grab ‘em Show ‘em Answer ‘em Sell ‘em Keep ‘em
Conventional Distribution Channel vs. Vertical Marketing Systems Vertical marketing channel Manufacturer Retailer Conventional marketing channel Manufacturer Wholesaler Consumer Consumer Retailer Wholesaler
Types of Vertical Marketing Systems Corporate Common Ownership at Different Levels of the Channel Contractual Contractual Agreement Among Channel Members Administered Leadership is Assumed by One or a Few Dominant Members
Selective Distribution Product is sold in a limited number of outlets Producer Retailer Retailer Retailer Retailer Retailer Retailer
Exclusive Distribution Product is sold in only one outlet in a given area Producer Retailer
Developing Distribution Tactics Selecting Channel Partners Reward or Coercive Power Legitimate Power Economic Power Managing the Channel of Distribution Channel Leader Power Distribution Channels & the Marketing Mix
Physical Distribution Materials Handling Moving Products Into, Within, and Out of Warehouses Warehousing Number Needed Where What Type Inventory Control When to order How much to order Order Processing Received Processed Shipped Physical DistributionFunctions Transportation Rail, Water, Trucks, Air, Pipeline, Internet
Transportation Modes Rail Cost-effective for shipping bulk products, piggy-back, fishyback, birdyback. Water Low cost for shipping bulky, low-value, non perishable goods, slowest form. Truck Most important carrier for consumer goods, flexible. Air High cost, ideal when speed is needed or distant markets have to be reached Pipeline Carry petroleum based products, very low cost, requires little energy. Internet Web sites have products available, used especially for services.
Decision Making Framework Do nothing Look for opportunities to reassure threatened channel and leverage your power Low (Smoke) Allow threatened channel to decline Act to avert or address conflict High (FIRE) Importance of threatened channel in terms of current or potential volume or profitability High Low Prospects of Destructive Conflict
Change the channels economic formula: (Grant rebates if an intermediary fulfill certain requirements; Adjust margins between products to support different channel economics; and Treat channels fairly to create level playing field)
Create Segment Specific Programs (certain services not available via direct channels)
Complement value proposition of the existing channel by introducing a new channel
Foster consolidation among intermediaries in a declining channel